EMPTECH(300546)2024-04-19 12:02Financial Performance - The company achieved total operating revenue of 412.18 million yuan, a year-on-year decrease of 33.24%[3]. - The net profit attributable to shareholders was -23.55 million yuan, a year-on-year decline of 163.90%[3]. - The company's operating revenue for 2023 was ¥412,180,829.54, a decrease of 33.24% compared to ¥617,414,736.27 in 2022[25]. - The net profit attributable to shareholders for 2023 was a loss of ¥23,547,824.29, representing a decline of 163.90% from a profit of ¥36,646,670.98 in 2022[25]. - The net cash flow from operating activities decreased by 72.19% to ¥32,583,303.44 in 2023, down from ¥117,184,256.45 in 2022[25]. - Basic earnings per share for 2023 were -¥0.13, a drop of 165.00% from ¥0.26 in 2022[25]. - Total assets at the end of 2023 were ¥1,272,573,168.07, a decrease of 6.68% from ¥1,363,441,165.35 at the end of 2022[25]. - The net assets attributable to shareholders decreased by 2.55% to ¥1,061,643,382.93 at the end of 2023, down from ¥1,089,201,377.16 at the end of 2022[25]. Revenue Breakdown - Revenue from identity recognition and smart government accounted for 77.44% of total revenue, amounting to ¥319,190,668.49, down 42.63% from ¥556,383,700.29 in the previous year[96]. - The smart transportation segment saw a revenue increase of 52.37%, reaching ¥92,990,161.05, compared to ¥61,031,035.98 in 2022[96]. - Domestic revenue grew by 60.60% to ¥310,274,102.78, while overseas revenue plummeted by 75.98% to ¥101,906,726.76[96]. - The immigration management business saw a significant recovery, with a total of 424 million border crossings, up 266.5% year-on-year, and a 277.53% increase in related business revenue[75]. - The traffic management business contributed to revenue growth, with electronic license plate products delivering over 10 million units and a year-on-year revenue increase of 20.22%[76]. Technological Innovation - The company is focusing on the development and application of new technologies and products, particularly in AI[3]. - The company successfully developed a new passport personalization technology based on polycarbonate material, which was officially presented at the UN ICAO Passport New Technology Annual Forum, showcasing innovation in the industry[40]. - The company has launched a new generation of security document technology, the MLP anti-counterfeiting technology, which has been implemented in Kazakhstan and Belarus[86]. - The company has developed a real-time online warning system for outbound (border) document management, enhancing the centralized supervision of passports and other documents for public officials[57]. - The company has pioneered quantum encryption products for data transactions, providing a high-security solution for sensitive data exchanges[73]. Market Position and Strategy - The company has been awarded electronic passport and ID card projects in over ten countries, including Kyrgyzstan and Kazakhstan, positioning itself as a leader in the global passport technology market[40]. - The company is committed to enhancing AI applications in vertical fields and expanding its market presence in the Belt and Road Initiative[35]. - The company is actively enhancing its core scheduling and dispatch products to adapt to the changes brought by the increase in new energy vehicles, focusing on cost reduction and efficiency improvement[45]. - The company aims to become a global trusted digital identity service provider, expanding its business from smart government and transportation to smart living sectors[132]. - The company plans to enhance its product quality by implementing a comprehensive quality management system across all stages from R&D to installation[138]. Governance and Compliance - The company has established a governance structure compliant with relevant laws and regulations, ensuring independent operation from its controlling shareholder[150]. - The board of directors consists of 9 members, including 3 independent directors, and has held 4 meetings during the reporting period[151]. - The company has maintained a transparent shareholder meeting process, ensuring equal rights for all shareholders, especially minority shareholders[150]. - The company has established a comprehensive internal control management system in compliance with relevant laws and regulations, ensuring effective operational management[189]. - The company has not reported any significant discrepancies in its governance practices compared to regulatory requirements[154]. Research and Development - The company has a strong R&D team and has increased investment in research infrastructure, which is crucial for maintaining its competitive edge in the security credential industry[40]. - The R&D model focuses on customer-centric innovation, with a structured approach to product development and testing to ensure quality and market alignment[80]. - The company reported a decrease in sales expenses by 4.94% to ¥70,682,331.38, and management expenses decreased by 2.26% to ¥57,472,058.25[107]. - The company's R&D investment amounted to ¥99,195,526.22 in 2023, representing 24.07% of its operating revenue, an increase from 15.68% in 2022[109]. - The company added 15 invention patents, 19 utility model patents, 1 design patent, and 16 software copyrights during the reporting period, totaling 44 invention patents and 188 utility model patents by the end of 2023[84]. Social Responsibility and Community Engagement - The company emphasizes a "customer first" philosophy and aims to enhance its social responsibility through community engagement and value creation for stakeholders[196]. - The company actively participates in public welfare and charity projects, contributing to poverty alleviation and rural revitalization efforts[199]. - The company has implemented a dual system for occupational hazard control and risk assessment to ensure employee safety and health[198]. - The company has established a comprehensive employee care system, including competitive compensation and diverse cultural activities[198]. - The company plans to continue balancing business development with social responsibility, contributing to economic prosperity and social stability[199].