I2SOFT(BJ:830799)2022-04-21 16:00Company Achievements and Certifications - In January 2021, the company achieved the highest level five certification (CMMI5) in the international authoritative software capability maturity model[5]. - The company successfully passed the ISO27001 information security management system certification in May 2021[6]. - The company has achieved CMMI5 certification and multiple ISO certifications, ensuring high-quality service delivery[50]. Financial Performance - The company's operating revenue for 2021 was CNY 421,448,928.49, representing a 53.14% increase compared to CNY 275,208,137.43 in 2020[30]. - The net profit attributable to shareholders for 2021 was CNY 50,380,265.77, a 5.95% increase from CNY 47,549,113.73 in 2020[30]. - The total assets at the end of 2021 reached CNY 683,913,083.17, a 57.77% increase from CNY 433,474,012.35 at the end of 2020[31]. - The total liabilities surged to CNY 341,320,920.65, marking a 421.65% increase from CNY 65,430,432.19 in 2020[31]. - The company's gross profit margin decreased to 34.09% in 2021 from 42.06% in 2020[30]. - The cash flow from operating activities in 2021 was CNY 12,865,372.67, down 71.31% from CNY 44,838,319.16 in 2020[34]. - The weighted average return on equity for 2021 was 14.46%, down from 19.04% in 2020[30]. - The company's total asset growth rate for 2021 was 57.77%, compared to 54.35% in 2020[35]. - The company's debt-to-asset ratio increased to 49.91% in 2021 from 15.09% in 2020[31]. - The basic earnings per share remained unchanged at 0.36 in 2021 compared to 2020[30]. Client Relationships and Market Expansion - The company has a high revenue dependency on major clients, particularly Industrial and Commercial Bank of China, which poses a risk if contracts are not renewed[16]. - The company expanded its client base to include Shanghai Automotive Group, enhancing its service offerings in the automotive software sector[50]. - The company maintained long-term partnerships with major clients, including a new three-year contract with Industrial and Commercial Bank of China for software development services[58]. - Major clients accounted for 79.60% of total sales, with the largest client contributing ¥211.86 million, representing 50.27% of total sales[96]. Research and Development - The company developed and upgraded a total of 78 software products in 2021, including the launch of the "Airong Digital Human Software," which integrates AI and VR technologies[57]. - Research and development expenses rose by 29.85% to ¥49,508,946.27, reflecting the company's commitment to innovation[82]. - The total number of R&D personnel increased from 320 to 561, with R&D staff now representing 27.51% of total employees[119]. - The company is investing in research and development of new technologies such as big data, artificial intelligence, and blockchain to enhance its product offerings and improve financial service efficiency[145]. Risks and Challenges - The company faces risks related to technology iteration, which could impact its ability to meet evolving financial IT demands[15]. - There is a risk of revenue or profit not being able to sustain growth due to increasing business scale and potential changes in macro policies affecting the banking sector, which could impact demand for the company's products and services[152]. - The company is aware of risks such as market competition and reliance on major clients, which could impact its future operations and revenue[150][151]. Stock and Incentive Plans - In July 2021, the company implemented a stock incentive plan, granting 762,000 restricted shares to 70 core employees and executives[6]. - The company plans to implement a stock incentive plan, granting 858,000 restricted shares to 84 core employees, approved on June 28, 2021[166]. - The stock buyback plan allows for repurchasing between 510,000 and 1,000,000 shares, representing 0.68%-1.34% of the total share capital[169]. Acquisitions and Subsidiaries - The company acquired its subsidiary, Shanghai Liyang Software Co., Ltd., in November 2021, indicating a strategy for market expansion[8]. - The company made a significant equity investment of ¥130 million in Shanghai LiYang Software Co., aiming to enhance market share and operational scale[104]. - The acquisition aims to optimize customer structure and achieve economies of scale to reduce costs and enhance market competitiveness[165]. Corporate Governance and Compliance - The company is committed to enhancing its governance structure and adhering to internal control systems, aiming to contribute positively to employment and employee welfare[134]. - The company has established internal control systems to mitigate market and management risks associated with the acquisition[165]. - The company has committed to maintaining transparency and notifying the market 15 trading days in advance of any planned share reductions by major shareholders[180]. Future Outlook - The company anticipates continued disruptions from the pandemic and potential restructuring of the international political and economic landscape, impacting global economic growth[138]. - The company expects a surge in demand for digital transformation in the financial sector, with a shift from retail to corporate services and from transaction processing to business operations[141]. - The company aims to enhance its large-scale software delivery capabilities to meet the growing demand for digital transformation in financial institutions, building on the general resource orders obtained in 2021[144].