ROPEOK(SH:688619)2025-04-22 13:50Financial Performance - The company's total revenue for 2024 was CNY 142.96 million, a decrease of 68.08% compared to CNY 447.86 million in 2023[24]. - The net profit attributable to shareholders for 2024 was a loss of CNY 193.23 million, worsening from a loss of CNY 47.89 million in 2023[24]. - The net assets attributable to shareholders decreased by 20.00% to CNY 892.13 million at the end of 2024, down from CNY 1,115.22 million at the end of 2023[25]. - The company's total assets decreased by 20.15% to CNY 1,521.44 million at the end of 2024, compared to CNY 1,905.27 million at the end of 2023[25]. - The basic earnings per share for 2024 was -CNY 1.08, compared to -CNY 0.26 in 2023[26]. - The net cash flow from operating activities for 2024 was -CNY 61.15 million, compared to -CNY 41.34 million in 2023[25]. - The company reported an increase in credit impairment losses due to longer aging of receivables, impacting overall financial performance[27]. - The company recognized asset impairment losses during the reporting period, contributing to the increase in overall losses[27]. - The company received government subsidies amounting to CNY 9.14 million in 2024, compared to CNY 8.97 million in 2023[30]. - The company's operating revenue for 2024 was 143 million RMB, a decrease of 68.08% year-on-year[168]. - The net profit attributable to the parent company was -193 million RMB, an increase in loss of 145 million RMB compared to the previous year[167]. Research and Development - Research and development expenses accounted for 19.64% of total revenue in 2024, an increase of 11.81 percentage points from 7.83% in 2023[26]. - The total R&D expenditure for the year was ¥28,078,956.89, a decrease of 19.92% compared to ¥35,062,965.56 in the previous year[124]. - The company has invested significantly in R&D, with 27 new invention patents and 32 software copyrights added during the year, bringing the total intellectual property to 528 items[39]. - The company has a total of 24 valid invention patents related to AI and vehicle management systems[121][122]. - The company filed 39 new patent applications during the reporting period, including 39 invention patents, and received 27 invention patents, 1 utility model patent, and 1 design patent[121]. - The company is actively engaged in developing new technologies, including a blockchain-based anti-fraud collaboration system and an AI platform for vehicle management[121]. - The company’s R&D investment strategy reflects a shift towards a higher percentage of revenue allocated to R&D, indicating a commitment to future growth[124]. - The company has established a national-level AI technology center focused on computer vision, enhancing its R&D capabilities[142]. Corporate Governance - The company has received a standard unqualified audit report from Dahua Certified Public Accountants[6]. - The board of directors has approved the profit distribution plan, which will be submitted to the annual shareholders' meeting for review[7]. - The company emphasizes the importance of maintaining long-term stability and shareholder interests amid significant funding needs for product R&D and market expansion[7]. - The company has not reported any non-operational fund occupation by controlling shareholders or related parties[11]. - The company has not experienced any violations of decision-making procedures regarding external guarantees[11]. - The company has confirmed that all board members attended the board meeting, ensuring accountability[5]. - The company has stated that there are no special arrangements for corporate governance that apply[9]. - The company aims to enhance investor confidence through improved governance and information disclosure practices[40]. Market Strategy and Expansion - The company is focusing on AI technology, with a strategy to integrate AI into various industries, including cultural tourism and industrial automation[39]. - The company is actively exploring overseas markets and preparing to offer technology and product services to international clients[46]. - The company has implemented a dual-driven growth strategy, focusing on both internal growth and external development through partnerships[38]. - The company is enhancing customer trust and engagement through localized technical service teams and collaborative innovation[85]. - The company is creating regional AI application service bases by integrating local data resources and providing new "data + operation" service models[86]. - The company is leveraging joint ventures with local enterprises to accelerate the digital transformation of industries and enhance local market presence[84]. - The company is expanding its regional marketing network and industry-specific marketing strategies to ensure sustainable market development[83]. Technology and Innovation - The company is focused on artificial intelligence (AI) technology to empower digital economy construction, providing solutions across various sectors including public safety, social governance, and education[50]. - The company has developed strong technical capabilities in AI image recognition and video processing, leveraging nearly 20 years of experience to address customer pain points and create new demand[41]. - The company collaborates with leading AI hardware manufacturers like Huawei and NVIDIA to enhance private deployment capabilities, particularly in data-sensitive sectors such as public security and government[42]. - The company aims to strengthen data governance through technologies like privacy computing and federated learning, ensuring data sovereignty and privacy security for clients[48]. - The company is committed to developing customized AI models tailored to specific industry needs, utilizing historical case data and expert knowledge to enhance model accuracy[48]. - The company has established partnerships with academic institutions to foster innovation and expedite the transformation of laboratory results into industrial applications[44]. - The company is focused on enhancing operational management and upgrading business models to better respond to customer needs and market dynamics[45]. - The company is developing a smart city management platform that integrates multi-algorithm fusion technology, aiming to enhance public safety and traffic management efficiency[137]. Challenges and Risks - The company is facing challenges such as high computing costs and cyclical fluctuations in customer demand, leading to a cautious approach in business expansion[35]. - The company must navigate high costs associated with data integration and the need for extensive high-quality datasets for AI training[97]. - The company faces seasonal revenue fluctuations due to the nature of its government clients' budgeting and procurement processes, with a focus on diversifying its customer base[156]. - The expected credit loss rate for accounts receivable increased, leading to higher credit impairment losses in 2024 compared to 2023, despite stable collection conditions[150]. - The company is facing structural challenges in the AI industry, with significant competition from major players like NVIDIA and domestic manufacturers like Huawei and Cambrian[199]. Future Outlook - The artificial intelligence market in China is expected to reach 1 trillion RMB by 2030, indicating significant growth opportunities[162]. - The company aims to enhance its core technology R&D investment to improve product efficiency and expand application scenarios[165]. - The company aims to establish over 50 national and industry standards by 2026, covering areas such as algorithms, computing power, and security[94]. - The company plans to create 100 trusted data spaces by 2028, facilitating secure cross-industry data circulation[94]. - The company is committed to developing a robust emergency command system that integrates various departments for effective incident response[130].