Forever Opensource Software (BJ:834415)2023-04-26 16:00Certification and Achievements - The company received the "Specialized, Refined, Characteristic, and Innovative" SME certificate from the Beijing Economic and Information Technology Bureau, valid for three years[3]. - During the reporting period, the company obtained 30 software copyright registration certificates, including the V1.0 versions of its pharmaceutical business operation platform and online comprehensive management system for doctors[4]. - The company is recognized as a national high-tech enterprise and has several subsidiaries certified as specialized and innovative small and medium-sized enterprises[60]. - The company has achieved "specialized, refined, distinctive, and innovative" enterprise certification for its subsidiary, showcasing its industry position and business characteristics[65]. Financial Performance - The company's operating revenue for 2022 was RMB 179,037,969.88, a decrease of 8.60% compared to RMB 195,891,316.33 in 2021[29]. - The net profit attributable to shareholders for 2022 was RMB 7,035,110.00, representing a significant decline of 68.97% from RMB 22,674,673.54 in the previous year[29]. - The gross profit margin for 2022 was 39.83%, down from 44.07% in 2021[29]. - The basic earnings per share decreased to 0.05 in 2022, a drop of 69.03% compared to 0.16 in 2021[29]. - The weighted average return on equity based on net profit attributable to shareholders was 1.38% in 2022, down from 4.56% in 2021[29]. - The company's total profit in the software and information technology service industry reached CNY 12.65 billion in 2022, with stable growth in revenue and profit[68]. - The company's consolidated revenue for the year amounted to RMB 179.038 million, primarily from software development and technical services, system integration, and maintenance services[120]. Cash Flow and Assets - The company's financial structure shows a significant decrease in cash and cash equivalents, from CNY 177.63 million at the end of 2021 to CNY 51.78 million at the end of 2022, a reduction of 70.85%[69]. - The company's trading financial assets increased by 109.35%, rising from CNY 122.26 million in 2021 to CNY 255.95 million in 2022, accounting for 42.95% of total assets[69]. - Total assets decreased by 0.80% from 600,795,514.23 to 595,981,742.37[31]. - Total liabilities decreased by 12.80% from 91,750,734.53 to 80,010,553.88[31]. - The company's net cash flow from operating activities was CNY 10,682,015.91, a significant decrease of 62.20% from CNY 28,259,470.46 in the previous year[93]. Research and Development - The company has increased R&D investment during the industry downturn to develop new products and upgrade existing ones, laying a solid foundation for future competitiveness[63]. - The company plans to continue increasing R&D investment, focusing on new technologies such as artificial intelligence, big data, and cloud computing to enhance product offerings[137]. - R&D expenditure increased to CNY 15.01 million, accounting for 8.38% of operating revenue, compared to 6.62% in the previous period[112]. - The proportion of capitalized R&D expenditure rose to 25.36%, significantly impacting the current net profit by 54.11%[112]. - The company maintained a total of 13 patents, including 7 invention patents, indicating stable innovation capacity[114]. Market and Industry Risks - The company faces risks related to the potential loss of core technical personnel, which could impact its operational capabilities and market competitiveness[12]. - The company is dependent on the aviation industry's development, which may lead to fluctuations in sales scale and profitability[14]. - Increased competition in the aviation technology sector is anticipated, necessitating enhancements in professional skills and resource utilization[148]. - The software industry is supported by national policies, but any adverse changes in macroeconomic conditions could impact the company's business development[149]. Business Expansion and Strategy - The company has expanded its business into the pharmaceutical health sector, leveraging over 20 years of industry experience[44]. - The company has expanded its business scope to include customized software development and IT service outsourcing across various industries, including healthcare and automotive[54]. - The company aims to leverage new technologies like AI, big data, and cloud computing to provide a broader product line and participate deeply in the digital transformation of the civil aviation sector[66]. - The company is committed to strengthening its core business in civil aviation information technology while exploring opportunities in other industries for growth[135]. Stock Options and Incentives - As of November 24, 2022, 53 incentive participants completed the exercise of stock options, subscribing to 2,809,500 stock options[6]. - The first phase of the equity incentive plan has been completed, enhancing employee motivation and stability within the workforce[65]. - A total of 66 core employees have been identified for the stock incentive plan, with 8,000,000 stock options to be granted[180]. - The first stock option grant was completed on September 6, 2021, with 6,365,000 options awarded to 68 recipients[181]. Legal and Compliance - The company has ongoing litigation as a defendant amounting to CNY 262,786.22, representing 0.05% of the net assets at the end of the reporting period[158]. - The company has not engaged in any significant related party transactions during the reporting period[166]. - The company has received commitments from its directors and senior management to fulfill their legal qualifications as required by regulations[197]. Future Projections - The company expects operating revenue of 206 million yuan in 2023, with aviation-related revenue projected at 170 million yuan and non-aviation revenue at 36 million yuan, reflecting a growth rate of 15%[136]. - The anticipated net profit for 2023 is 22.16 million yuan, representing a growth rate of 215%[136].