GH-Tech(000004)2024-04-30 10:37Financial Performance - The company's operating revenue for 2023 was ¥110,048,548.32, a decrease of 33.89% compared to ¥166,463,289.95 in 2022[24]. - The net profit attributable to shareholders for 2023 was -¥156,992,891.72, showing an improvement of 73.62% from -¥595,162,765.52 in 2022[24]. - The net cash flow from operating activities was -¥36,050,910.29, a decline of 8.78% compared to -¥33,042,376.14 in 2022[24]. - The total assets at the end of 2023 were ¥413,449,330.43, down 28.31% from ¥575,390,741.06 at the end of 2022[24]. - The net assets attributable to shareholders decreased by 44.53% to ¥195,574,037.27 at the end of 2023 from ¥352,501,463.33 at the end of 2022[24]. - The basic earnings per share for 2023 was -¥1.1835, an improvement of 70.90% from -¥4.0666 in 2022[24]. - The company reported a total of ¥108,663,565.68 in revenue from its main businesses, including mobile internet security and emergency services, after deducting other income[26]. - The company reported a total revenue of 250.15 million for the reporting period[176]. - The company reported a net loss attributable to shareholders of ¥121,793,147.42 in Q4 2023, with total net losses for the year amounting to ¥157,493,391.70[99]. Business Operations - The company has undergone significant changes in its main business focus, shifting from real estate to mobile internet security and smart city solutions since 2016[22]. - The company has faced continuous operating uncertainties, with net profits being negative for the last three accounting years[26]. - The company is expanding its business into areas such as secure development management, security operations, data security, smart vehicle networking, IoT, and healthcare information technology[63]. - The company has integrated existing products and solutions to address new fields such as personal information security and mobile application management[91]. - The company launched a security cloud platform using SaaS to provide comprehensive security services for mobile applications, including WeChat, Douyin, and Alipay mini-programs[93]. Market Trends and Growth - In 2023, the revenue from information security products and services reached 223.2 billion RMB, representing a year-on-year growth of 12.4%[37]. - The overall Chinese cybersecurity market's client spending in 2022 was approximately 95.8 billion RMB, which grew by about 5.7% compared to 2021[37]. - The expected growth rate for the cybersecurity market in 2023 is projected to be 5.1%, with total client spending anticipated to reach 100.7 billion RMB[37]. - The national cybersecurity industry is expected to exceed 250 billion RMB by 2023, with a compound annual growth rate of over 15%[40]. - The company aims to enhance its mobile security solutions in response to the growing regulatory requirements and market needs[50]. Regulatory Compliance and Governance - The company emphasizes the importance of accurate and complete financial reporting, with all board members present for the report's approval[4]. - The report includes a commitment to transparency, with all information disclosed through selected media outlets[4]. - The company has implemented measures to improve governance and internal controls following regulatory scrutiny regarding inaccurate financial disclosures and management practices[154]. - The company maintains strict independence from its controlling shareholders in terms of assets, personnel, finance, organization, and business operations[160]. - The company has established a complete independent business operation system, including production, sales, and after-sales services, with no competition with controlling shareholders[161]. Research and Development - R&D investment amounted to ¥49,209,585.21 in 2023, a decrease of 0.52% from ¥49,467,357.95 in 2022[113]. - R&D investment accounted for 44.72% of operating revenue in 2023, an increase of 15.00% from 29.72% in 2022[113]. - The number of R&D personnel decreased by 16.95% from 177 in 2022 to 147 in 2023[113]. - The company is focusing on the development of facial recognition protection systems and mobile application security cloud platforms[112]. - The company plans to enhance its technology R&D and optimize its product offerings, focusing on mobile application security solutions[139]. Employee and Management - The total number of employees at the end of the reporting period was 298, including 91 sales personnel and 147 technical personnel[187]. - The company adheres to labor laws and regulations, ensuring fair and sustainable employee compensation based on performance and market conditions[189]. - The company has a structured salary management system in place to determine the remuneration of directors and senior management[173]. - The total pre-tax remuneration for Chairman and General Manager Huang Xiang is 547,200 CNY[175]. - The company has not proposed any cash dividends or stock bonuses for the reporting period[192]. Risks and Challenges - The company faces risks from a slowing macroeconomic environment, particularly affecting spending on information security by small and medium enterprises, leading to potential declines in traditional business growth and new business expansion[143]. - There is a risk of core technology leakage and loss of key personnel, which could adversely impact business development; the company is focusing on employee care and strengthening intellectual property protections[146]. - The company is experiencing challenges in accounts receivable recovery due to economic slowdown, leading to significant credit impairment losses during the reporting period[149]. Audit and Financial Controls - The company’s financial report is subject to audit by a registered accounting firm, ensuring compliance and accuracy[10]. - The internal control audit report confirmed that the company maintained effective financial reporting internal controls as of December 31, 2023[198]. - The company has taken measures to address previous audit opinions and improve internal controls[176]. - The company has engaged Zhongxing Caiguanghua Accounting Firm for its 2023 audit, confirming their capability to meet audit requirements[185].