Financial Performance - The company reported a consolidated net loss attributable to equity holders of approximately RMB 24 million for the fiscal year ended December 31, 2021, compared to a net loss of RMB 17 million in the previous year[25]. - The company recorded revenue of approximately RMB 40,825,000 for the year ended December 31, 2021, a decrease of 42.5% compared to RMB 70,839,000 in 2020[39]. - The net loss for the year was RMB 30,734,000, an increase from a loss of RMB 25,322,000 in 2020[79]. - The gross profit for the year was approximately RMB 16,512,000, compared to RMB 17,578,000 in 2020[79]. - The company reported a return on equity of -18.14% for 2021, compared to -16.91% in 2020[82]. - The company did not recommend the payment of any final dividend for the fiscal year ended December 31, 2021[25]. - The company recorded a loss of approximately RMB 30,734,000 for the year ended December 31, 2021, compared to a loss of RMB 25,322,000 in 2020[47]. Revenue and Business Strategy - The gross profit for the year was approximately RMB 17 million, with a software business gross margin of about 41%, up from 25% in the previous year[25]. - The company anticipates that the software business revenue will increase as more Chinese customers shift towards domestic database service providers due to national self-sufficiency policies[27]. - The company plans to maintain competitiveness by launching new products and services, expanding its customer base, and implementing various cost control policies in 2022[26]. - The company aims to explore opportunities to integrate existing IT services within the financial services sector to enhance growth and competitive advantage[27]. - The company will continue to seek suitable business opportunities to expand into new growth areas and diversify revenue sources[27]. - Future strategies may involve enhancing product offerings and exploring new market opportunities to recover from the pandemic's impact[39]. Impact of COVID-19 - The software business faced challenges due to the COVID-19 pandemic, which negatively impacted market sentiment and financial performance[26]. - The decline in overall revenue was significantly impacted by the COVID-19 pandemic, which adversely affected market sentiment and operational activities[39]. - The company faced significant challenges in business activities due to the pandemic, leading to delays in operations[39]. - Software business revenue for the year was approximately RMB 40,465,000, down about 43% from RMB 70,530,000 in 2020, primarily due to competition and market conditions exacerbated by the COVID-19 pandemic[72]. Cost Management - Distribution expenses decreased to approximately RMB 16,710,000 from RMB 19,486,000 in 2020, primarily due to reduced employee costs in the software business[41]. - General and administrative expenses increased to approximately RMB 17,870,000 from RMB 17,305,000 in 2020, mainly due to higher legal and professional fees[42]. - The cost of sales for 2021 was RMB 24,313,000, down from RMB 53,261,000 in 2020[79]. - The company aims to improve the profit margin of its software maintenance services by repositioning its products to reduce sales costs[75]. Shareholder Communication and Governance - The company expressed gratitude to shareholders, business partners, and employees for their support and cooperation[27]. - The company is committed to maximizing efforts to promote long-term business development and enhance shareholder returns[27]. - The board held a total of 19 meetings during the fiscal year ending December 31, 2021, with regular reviews of operational and financial performance[103]. - The company held its annual general meeting on June 30, 2021, to maintain communication with shareholders[104]. - The board has delegated daily management responsibilities to the management team while retaining oversight of major acquisitions and financial matters[90]. Risk Management and Internal Control - The board is responsible for maintaining effective risk management and internal control systems to protect the company's assets and shareholders' interests[144]. - An external consultant was hired to review risk management and internal control, with no significant deficiencies found in the system for the year ending December 31, 2021[148]. - The group aims to establish a culture of risk awareness and accountability as the foundation of its internal control system, applicable to major business processes[145]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report is based on the group's operations in Hong Kong, Beijing, Shanghai, Chengdu, and Guangzhou, with no significant changes in the supply chain structure during the reporting period[152]. - The group has integrated an ESG management system to improve board-level oversight and has designated a team to coordinate all ESG-related matters[159]. - The company plans to improve overall environmental performance year by year, which is expected to benefit its business significantly[159]. - The company has identified key stakeholder concerns, including customer data protection and product safety management[168]. - The company has established effective communication channels with stakeholders to understand their concerns and improve sustainability strategies[168]. Employee and Workforce Management - The company employed 96 full-time employees in 2021, ensuring compliance with local labor laws and regulations[195]. - The gender distribution of employees in 2021 was 69% male and 31% female, reflecting a diverse workforce[200].
企展控股(01808) - 2021 - 年度财报