SW-TECH(300113)2022-04-27 16:00Financial Performance - The company's operating revenue for 2021 was ¥1,141,984,520.59, representing a 9.37% increase compared to ¥1,044,126,473.90 in 2020[25]. - The net profit attributable to shareholders for 2021 was ¥61,173,616.37, a decrease of 32.70% from ¥90,893,773.89 in 2020[25]. - The net cash flow from operating activities was ¥272,811,600.11, a significant increase of 1,038.43% compared to -¥29,071,009.58 in 2020[25]. - The basic earnings per share for 2021 was ¥0.09, down 30.77% from ¥0.13 in 2020[25]. - The total assets at the end of 2021 were ¥2,982,926,033.39, reflecting a 1.59% increase from ¥2,936,380,008.79 at the end of 2020[25]. - The net assets attributable to shareholders at the end of 2021 were ¥2,435,710,597.46, a slight decrease of 0.18% from ¥2,440,186,738.89 at the end of 2020[25]. - The weighted average return on net assets for 2021 was 2.51%, down from 3.63% in 2020[25]. - The company reported a diluted earnings per share of ¥0.09 for 2021, consistent with the basic earnings per share[25]. Revenue Breakdown - The revenue from the computer application service industry accounted for 89.93% of total revenue, amounting to ¥1,027,014,571.12, with a year-on-year growth of 7.26%[69]. - The gaming media industry generated revenue of ¥114,969,949.47, which is a significant increase of 32.69% from ¥86,642,418.36[69]. - The company's gaming business revenue decreased slightly by 1.53% to ¥394,493,169.79, compared to ¥400,641,819.32[70]. - The company's gross profit margin for the gaming business was 79.42%, which is an increase of 10.45% compared to the previous year[78]. Market Trends - The Chinese gaming market achieved actual sales revenue of ¥296.51 billion in 2021, reflecting a year-on-year growth of 6.4%[40]. - The cloud gaming market in China reached ¥4.06 billion in 2021, showing a significant year-on-year growth of 93.3%[42]. - The user base for esports in China expanded from 130 million in 2016 to 425 million in 2021, indicating a maturing market[46]. Investment and R&D - R&D investment amounted to ¥221,406,495.06 in 2021, representing 19.39% of operating revenue, an increase from 18.37% in 2020[101]. - The number of R&D personnel decreased by 19.94% from 652 to 522, with a proportion of 36.89% of total employees[99]. - The company has filed over 60 technology patents, establishing effective industry technology barriers in distributed computing management, cloud-edge collaboration, and intelligent operations[53]. - The company has developed a high-availability cloud gaming technology that provides esports-level solutions, outperforming basic cloud gaming implementations in the industry[60]. Cash Flow and Financial Health - Net cash flow from operating activities increased by 1,038.43% year-on-year to ¥272,811,600.11, attributed to improved sales collections and reduced payroll expenses[105]. - Total cash and cash equivalents increased by 162.99% year-on-year to ¥466,555,837.14[105]. - The company's monetary funds reached ¥1,293,680,792.77 at year-end, accounting for 43.37% of total assets, up from 29.17% at the beginning of the year[110]. - The company reported an investment income of ¥6,807,430.31, contributing 5.84% to total profit, primarily from financial management gains and disposal of long-term equity investments[106]. Strategic Initiatives - The company is actively developing its metaverse ecosystem, with the launch of the MetaCon brand and plans for a virtual idol event to enhance user interaction and engagement[57]. - The company aims to leverage its cloud computing and edge computing capabilities to expand its edge cloud business ecosystem, providing refined scene solutions across multiple industries[53]. - The company is focusing on enhancing user experience by expanding service content and scenarios, including esports hotels and local XR gaming[53]. - The company plans to commercialize its cloud computer services and promote them across the national internet café market, enhancing operational efficiency and profitability for café owners[90]. Governance and Management - The company has a governance structure that does not include differential voting rights[154]. - The company has not reported any changes in the positions of directors, supervisors, or senior management during the reporting period[160]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 963.08 million[173]. - The company has established a performance-based compensation system to attract and retain high-quality talent, ensuring sustainable development[188]. Risks and Challenges - The company faces risks related to technology and innovation, management and control due to scale expansion, and potential loss of core talent[6]. - The company experienced a loss of -¥121,280,175.77 in net profit after deducting non-recurring items in Q4[29]. - The company experienced a goodwill impairment loss of ¥53,278,746.93, which negatively impacted overall profitability[109].