Financial Performance - The company recorded revenue from continuing operations of approximately RMB 218.37 million for the year ended December 31, 2021, a decrease of 8.06% compared to RMB 237.63 million in 2020[11]. - Net profit attributable to owners from continuing operations was approximately RMB 0.67 million, down 88.73% from RMB 5.92 million in 2020[11]. - The group generated revenue of approximately RMB 218,368,000 for the year ended December 31, 2021, a decrease of about 8.11% compared to RMB 237,630,000 in 2020[25]. - Revenue from hardware and software sales was approximately RMB 132,308,000, an increase of about 10.23% from RMB 120,025,000 in the previous year[24]. - Revenue from smart city solutions reached approximately RMB 50,911,000, reflecting a growth of about 20.51% compared to RMB 42,245,000 in 2020[24]. - Revenue from e-commerce operation solutions decreased significantly by approximately 53.36%, totaling RMB 35,149,000 compared to RMB 75,360,000 in the previous year[24]. - The overall gross margin for the group was approximately 18.21%, an increase from 17.03% in 2020[27]. - The gross margin for hardware and software sales was approximately 7.76%, down from 8.04% in the previous year[26]. - The gross margin for smart city solutions was approximately 56.46%, a decrease from 63.91% in 2020[26]. - The gross margin for e-commerce operation solutions was approximately 2.11%, down from 5.07% in the previous year[26]. - The company recorded a profit attributable to owners of approximately RMB 6,650,000 for the year ended December 31, 2021, down from RMB 5,919,000 in 2020, representing a decrease of about 11.4%[30]. - The hardware and software sales business achieved a segment profit of approximately RMB 5,906,000, compared to RMB 5,696,000 in 2020, indicating a slight increase of about 3.7%[29]. - The smart city solutions business generated a segment profit of approximately RMB 9,653,000, up from RMB 8,568,000 in 2020, reflecting an increase of about 12.7%[29]. - The e-commerce operation solutions business reported a loss of approximately RMB 19,169,000, a significant decline from a profit of RMB 44,000 in 2020, marking a downturn of over 43,500%[29]. Strategic Initiatives - The company focused on optimizing its sales strategies and structures, increasing the proportion of high-margin terminal customer sales revenue[14]. - The company successfully expanded its smart city solution business, achieving full coverage of municipal clients in Zhejiang Province and securing project development orders in Hebei and Yunnan provinces[14]. - The company launched its social e-commerce platform in the fourth quarter, with the Kiddol and Addol apps and mini-programs going live by the end of the third quarter[15]. - The company emphasized business innovation and the cultivation of new projects to achieve transformative development[15]. - The company actively sought external resources and partnerships to enhance its market expansion efforts[14]. - The company maintained a stable development of its hardware and software sales while managing inventory and receivables risks[14]. - The company’s strategic focus includes leveraging digital governance and local government collaborations to enhance service offerings[14]. - The company is actively expanding its smart city solutions by leveraging external resources and enhancing internal collaboration, achieving full coverage of city clients in Zhejiang Province[35]. - The company is considering strategic acquisitions to bolster its technology portfolio, with potential targets identified in the biotech sector[82]. - The company aims to improve operational efficiency, targeting a reduction in costs by 15% through process optimization initiatives[82]. Corporate Governance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15 and has complied throughout the year ending December 31, 2021[93]. - The board of directors has confirmed that all directors adhered to the trading code for securities transactions during the year ending December 31, 2021[94]. - The executive board consists of Mr. Qi Jinsong, Mr. Guan Zilong, and Mr. Xu Jianfeng, ensuring a strong leadership team[95]. - The board of directors has adopted a diversity policy to enhance board member diversity, considering factors such as gender, age, cultural background, and professional experience[99]. - The board consists of three committees: Audit Committee, Remuneration Committee, and Nomination Committee, ensuring high standards of corporate governance[105][106][107]. - The Audit Committee reviewed the audited consolidated financial statements for the year ending December 31, 2021, and provided recommendations to the board[105]. - The Remuneration Committee is responsible for reviewing and approving the remuneration policies for directors and senior management, ensuring no director participates in setting their own remuneration[106]. - The Nomination Committee evaluates the board's structure and diversity, and recommends suitable candidates for directorships[107]. - The company secretary maintains records of board meetings and decisions, ensuring transparency and accountability[101]. - The board has established a risk management and internal control system to identify, assess, and manage significant risks, ensuring adequate supervision and compliance with relevant laws and regulations[110]. Environmental, Social, and Governance (ESG) Efforts - The company reported a total greenhouse gas emissions of 122.78 tons of CO2 equivalent for the year ended December 31, 2021, down from 182.18 tons in 2020, representing a reduction of approximately 32.7%[145]. - The greenhouse gas emissions density per employee decreased to 0.59 tons of CO2 equivalent in 2021 from 1.17 tons in 2020, indicating improved efficiency despite an increase in employee numbers[145]. - The company has implemented multiple measures to minimize electricity consumption, thereby reducing the impact of scope 2 greenhouse gas emissions[148]. - The company has maintained a commitment to minimizing waste generation over the years, aiming to reduce environmental impact[149]. - The company has adhered to the mandatory disclosure requirements of the Environmental, Social, and Governance (ESG) reporting guidelines for the year ended December 31, 2021[135]. - The board is responsible for overseeing the company's ESG matters and has established a governance framework to manage related risks and opportunities[138]. - The company has engaged with stakeholders to identify significant ESG aspects and prioritize them based on feedback received[137]. - The company has adopted international standards and emission factors for calculating key performance indicators related to ESG reporting[132]. Employee and Community Engagement - The total number of employees increased to approximately 263 as of December 31, 2021, compared to 152 in 2020, with total employee costs rising to RMB 44,124,000 from RMB 29,291,000[50]. - Employee turnover rate for males decreased from 21.22% in 2020 to 19.76% in 2021, while for females it dropped from 10.29% to 4.82%[164]. - The company provided free health check-ups and purchased accident and health insurance for employees[169]. - The company actively participated in community affairs and volunteer activities, promoting corporate social responsibility[193]. - The company continues to support impoverished families and students in mountainous areas through volunteer activities and donations, contributing to community service[194].
升华兰德(08106) - 2021 - 年度财报