INTERACT(300419)2024-04-29 15:48Financial Performance - The company reported a net profit loss attributable to shareholders, primarily due to goodwill impairment, which amounted to 11.12 million yuan as of the end of 2021[5]. - The company's operating revenue for 2021 was ¥592,137,910.81, representing a 4.47% increase compared to ¥566,807,390.77 in 2020[26]. - The net profit attributable to shareholders for 2021 was -¥34,826,631.42, a decrease of 256.30% from ¥22,282,307.45 in 2020[26]. - The net cash flow from operating activities for 2021 was -¥156,387,694.94, a decline of 208.29% compared to ¥144,416,342.73 in 2020[26]. - The total assets at the end of 2021 were ¥1,429,959,341.69, a decrease of 2.28% from ¥1,463,390,990.30 at the end of 2020[26]. - The net assets attributable to shareholders at the end of 2021 were ¥798,625,278.94, down 4.18% from ¥833,451,910.36 at the end of 2020[26]. - The basic earnings per share for 2021 was -¥0.09, compared to ¥0.06 in 2020, reflecting a 250.00% decrease[26]. - The company experienced a significant decline in net profit after deducting non-recurring gains and losses, with a net profit of -¥45,909,173.18 in 2021 compared to ¥13,407,468.73 in 2020, a decrease of 442.41%[26]. - The weighted average return on net assets for 2021 was -4.27%, down from 2.71% in 2020[26]. - The company reported a total of ¥609,326,637.18 in normal operating revenue after deductions for 2021, compared to ¥636,300,525.79 in 2020[27]. Goodwill and Impairment Risks - The company has a goodwill amount of 11.12 million yuan from the acquisition of 100% of Lu'an Century, which poses a risk of impairment if the acquired company's performance declines[13]. - The company is focused on optimizing its organizational structure and management processes to mitigate goodwill impairment risks[13]. - The company has implemented a cautious approach to goodwill impairment testing, leading to the recognition of impairment provisions[76]. Market and Competitive Landscape - The company acknowledges intensified market competition in the software and information technology services industry, necessitating proactive management strategies[10]. - The company is facing increasing competition in the software and information technology services industry, which may lead to a decline in market share and gross margins if not managed properly[137]. - The software industry in China saw a revenue growth of 17.7% in 2021, reaching ¥94,994 billion, with a total profit of ¥11,875 billion, reflecting a 7.6% increase[38]. - The software products segment generated ¥24,433 billion in revenue, a 12.3% increase, while information technology services grew by 20.0% to ¥60,312 billion[39]. - The company anticipates challenges in software product and service exports due to tightening global supply chains and increased competition, particularly in the context of the US-China tech rivalry[44]. Strategic Focus and Innovation - The company plans to enhance its technology development and innovation capabilities to meet evolving user needs and maintain market competitiveness[8]. - The company emphasizes the importance of user satisfaction in its product and technology development efforts[8]. - The company is focusing on improving its internal management systems to adapt to its expanding business scale and ensure operational efficiency[138]. - The company is committed to enhancing its governance structure and transparency in operations to comply with regulatory requirements and improve investor relations[146]. - The company is actively expanding into the Internet of Things (IoT) sector, leveraging its expertise in smart big data to capture project opportunities[91]. Operational Efficiency and Management - The company aims to improve its management systems and operational mechanisms to adapt to its expanding business scale and market demands[11]. - The company is focused on optimizing resource allocation and improving capital efficiency through equity transfers and restructuring of subsidiaries[130]. - The company has developed innovative operational management systems, such as the "Firewall Policy Optimization and Operation Management System," which has received high recognition from clients[82]. - The company has established a strong management team with extensive experience in foreign enterprises and listed companies, ensuring sustained growth and market competitiveness[79]. - The company has implemented a refined management approach to control costs while maximizing existing customer value in the media services sector[92]. Governance and Compliance - The company has established a complete and independent governance structure, including a shareholders' meeting, board of directors, and supervisory board, in compliance with the Company Law and its Articles of Association[148]. - The company maintains independence in its financial operations, with a dedicated finance department and independent accounting system, ensuring compliance with tax obligations[158]. - The company has a total of 7 board members, including 3 independent directors, ensuring compliance with legal and regulatory requirements[152]. - The company has established a transparent information disclosure system, ensuring timely and accurate communication with investors[155]. - The company is committed to protecting the legitimate rights and interests of investors, especially minority shareholders[182]. Employee and Organizational Structure - The company's total employee count at the end of the reporting period was 172, with 74 in the parent company and 83 in major subsidiaries[187]. - The total employee compensation for the reporting period was CNY 11.2515 million, accounting for 2.25% of the total company costs[190]. - The core technical personnel count was 15, representing 8.72% of total employees, down from 20 (6.04%) in the previous year[190]. - The company has implemented a training program tailored to various employee needs, including management and technical training[191]. - The management team has a strong educational background, with multiple members holding master's and doctoral degrees in relevant fields[171]. Financial Technology Sector Insights - The financial technology sector is experiencing stable growth, driven by digital transformation and the adoption of distributed technologies, with a focus on enhancing data management and analysis capabilities[45]. - The Chinese banking IT solutions market is projected to exceed 100 billion yuan, reaching 118.12 billion yuan by 2025, with a compound annual growth rate of 25.10% from 2021 to 2025[46]. - The financial technology investment is expected to continue driving innovation and technology input in the coming years, focusing on foundational technology upgrades and digital practices[51]. - Financial institutions are focusing on distributed core systems and databases, with increasing demand for domestic database products due to the limitations of traditional relational databases[49]. Subsidiary Performance - The subsidiary, Lu'an Century, primarily generates revenue from multimedia system services and channel viewing services[76]. - Lu'an Century has established business cooperation with 28 provincial-level TV stations, obtaining channel promotion authorization, which enhances its market presence[68]. - The company acquired 100% equity of Lu'an Century, a leading provider of broadcasting information technology services in China, expanding its main business to include hotel and family media services[67]. Challenges and Risks - The company recognizes the ongoing risks posed by the COVID-19 pandemic, which may affect project timelines and overall business performance[142]. - The company is actively managing accounts receivable, which are gradually increasing, to mitigate risks associated with cash flow and potential bad debts[140]. - The company aims to strengthen its project evaluation processes and management to minimize risks related to inventory and project execution[135].