Shanghai Information2 Software (SH:688435)2025-04-25 10:45Financial Performance - The company reported no profit distribution or capital reserve transfer to shareholders for the reporting period, pending approval at the 2024 annual general meeting[6]. - The company is not currently profitable and has not achieved profitability since its listing[4]. - The company's operating revenue for 2024 was CNY 190,486,147.25, a decrease of 21.65% compared to CNY 243,109,669.44 in 2023[23]. - The net profit attributable to shareholders for 2024 was CNY -28,585,028.58, representing a decline of 164.29% from CNY 44,464,618.65 in 2023[23]. - The net cash flow from operating activities decreased to CNY -38,185,450.68 in 2024, down 1,273.24% from CNY 3,254,695.79 in 2023[24]. - The basic earnings per share for 2024 was CNY -0.34, a decrease of 162.96% compared to CNY 0.54 in 2023[25]. - The total assets at the end of 2024 were CNY 1,191,427,269.65, a decrease of 5.06% from CNY 1,254,959,181.74 at the end of 2023[24]. - The net assets attributable to shareholders decreased by 5.01% to CNY 1,113,785,286.34 at the end of 2024 from CNY 1,172,580,744.17 at the end of 2023[24]. - The company reported a total R&D investment of ¥106,542,007.85 for the year, representing a 17.17% increase compared to the previous year[79]. - The company reported a significant decline in cash flow from financing activities, down 104.60% to -¥33,607,079.18[127]. Research and Development - Research and development expenses accounted for 55.93% of operating revenue in 2024, an increase of 18.53 percentage points from 37.4% in 2023[25]. - The company increased its R&D investment to 106.54 million RMB in 2024, up 17.17% year-on-year, accounting for 55.93% of total revenue, with a total R&D staff of 348, representing 59.28% of the total workforce[37]. - The company holds a total of 204 patents, including 58 invention patents and 146 software copyrights, with 9 new invention patents and 25 software copyrights added during the reporting period[77]. - The company is focused on independent innovation and continuous R&D, maintaining high R&D investment and establishing research centers in multiple cities[61]. - The company aims to continuously develop new integrated hardware products and features based on customer needs in the context of data elements and artificial intelligence[47]. Market and Competitive Position - The company experienced a significant decline in net profit due to tightened customer budgets and increased market competition[25]. - The company has established partnerships with over 400 domestic enterprises and expanded overseas collaborations, particularly in Southeast Asia[39]. - The company is positioned in a rapidly evolving industry with significant opportunities for domestic software replacement, particularly in disaster recovery software[64]. - The company is facing risks related to R&D personnel turnover and core technology leakage, which could impact its competitive position[96]. - The company is currently involved in ongoing litigation, with a civil appeal filed against a previous ruling, which may impact future operations[100]. Governance and Compliance - The board of directors and supervisory board members have confirmed the authenticity, accuracy, and completeness of the annual report[3]. - The company has not disclosed any special arrangements for corporate governance[9]. - The company has implemented a new system for selecting accounting firms to improve audit quality and financial information accuracy[39]. - The company has established a governance structure that protects the rights of shareholders and creditors, ensuring timely and effective information disclosure[200]. - The company has held 8 board meetings and 7 supervisory meetings during the reporting period, ensuring compliance with legal and regulatory requirements[144]. Shareholder and Capital Management - The company repurchased shares worth 30.96 million RMB, acquiring 985,000 shares, which represents 1.18% of the total share capital, to enhance shareholder returns[39]. - The company has a structured cash dividend policy that considers the financial status and sustainable development, ensuring shareholder interests are balanced with operational needs[175]. - The company has not proposed a cash profit distribution plan despite positive profits available for distribution to shareholders[177]. - The company has confirmed a share-based payment expense of 888,782.87 RMB for the current reporting period, indicating that performance targets were not met[182]. - The company has established a remuneration and assessment committee responsible for evaluating the compensation and rewards of directors and senior management[185]. Strategic Initiatives - The company is committed to digital transformation, data security, and AI technology integration, continuously innovating and expanding its core business[36]. - The company plans to establish a subsidiary in Hong Kong in 2024 to expand overseas business[114]. - The company is focusing on market expansion and new product development as part of its future strategy[136]. - The company plans to strengthen its R&D capabilities and upgrade existing products, with a focus on four product lines: disaster recovery, backup, cloud data management, and big data[140]. - The company aims to enhance its marketing efforts and enhance brand influence, targeting new customers and markets while maintaining existing client relationships[141]. Industry Trends - The digital economy in China reached CNY 53.9 trillion in 2023, growing by CNY 3.7 billion, with a GDP share of 42.8%, up by 1.3 percentage points from the previous year[65]. - The cloud computing market in China is projected to reach CNY 837.8 billion in 2024, with a year-on-year growth of 35.9%[65]. - The data replication industry is experiencing rapid growth due to increasing demand for data backup and disaster recovery solutions[66]. - The industry is expected to see an annual growth rate of over 20% in the data sector by 2026, driven by the high-level application of data elements[64]. - The government has introduced favorable policies to support the data industry, aiming for a compound annual growth rate of over 15% by 2029[67]. Employee and Internal Management - The company has a total of 587 employees, with 586 in the parent company and 1 in a major subsidiary[170]. - Among the employees, there are 348 technical personnel, 194 sales personnel, and 36 administrative personnel[171]. - The company has a comprehensive salary policy that includes basic and performance-based compensation[172]. - The company emphasizes the importance of data security and value extraction as data becomes ubiquitous in society, positioning its data replication software as a foundational infrastructure[138]. - The company maintains a strong focus on employee rights, providing benefits such as basic pension and medical insurance[200].