BOCO(SH:600289)2022-04-28 16:00Financial Performance - The net profit attributable to shareholders of the listed company for 2021 was -200.69 million RMB, a decrease of 39.2% compared to the previous year[6]. - The operating income for 2021 was 392.78 million RMB, down 30.30% from 563.50 million RMB in 2020[23]. - The net cash flow from operating activities was -121.39 million RMB, representing a decline of 120.33% compared to the previous year[24]. - The total assets at the end of 2021 were 2.42 billion RMB, a decrease of 11.36% from 2.73 billion RMB at the end of 2020[24]. - The basic earnings per share for 2021 was -0.3180 RMB, compared to -0.4978 RMB in 2020[25]. - The weighted average return on equity for 2021 was -12.24%, a significant decline from -66.74% in 2020[25]. - The company did not distribute profits for 2021 due to the net loss and negative operating cash flow[6]. - The company reported a non-recurring loss of CNY 12.04 million for 2021, compared to a significant non-recurring loss of CNY 21.27 million in 2020[32]. - In 2021, the company achieved operating revenue of 392.78 million yuan, a decrease of 30.30% compared to the previous year[51]. - The net profit attributable to shareholders was -200.69 million yuan, with a net profit of -188.65 million yuan after deducting non-recurring gains and losses[51]. Cash Flow and Expenses - Management expenses decreased by 8.05% to 226.76 million yuan, while sales expenses dropped by 34.95% to 50.10 million yuan[51]. - Research and development expenses fell by 42.13% to 110.60 million yuan, indicating a significant reduction in investment in this area[51]. - Net cash flow from operating activities dropped by 120.33% year-on-year to -¥121,387,390.35, primarily due to a decrease in cash received related to operating activities[54]. - Operating cash inflow decreased by 48.83% to ¥677,027,914.20 from ¥1,323,094,087.35 year-over-year, resulting in a net cash outflow of ¥121,387,390.35[68]. - Investment activities generated a net cash flow of -¥2,655,070.75, an improvement of ¥5,516,842.72 compared to the previous year[54]. Market and Business Strategy - The company has made progress in expanding its market presence in vertical industries such as energy, government education, and industrial internet, with new projects underway[36]. - The company aims to improve competitiveness through both organic growth and strategic acquisitions[36]. - The company is focusing on optimizing its talent structure and enhancing internal management to adapt to current business needs[35]. - The company is focusing on the integration of 5G technology with industrial internet to enhance digital transformation across various sectors, with significant potential for application growth[87]. - The company aims to solidify its position in the telecom operator support system while developing SAAS-level products to explore new business growth points and expand market share in traditional telecom sectors like China Mobile[90]. Legal and Governance Issues - The company faced disciplinary actions from the Shanghai Stock Exchange due to violations in information disclosure and internal control, including inaccurate performance forecasts and significant internal control deficiencies[112]. - The company has a history of governance issues, including the improper occupation of funds by its controlling shareholder[112]. - The company has been under scrutiny for its internal control systems, with the annual auditor issuing a negative opinion on the internal control audit for the year 2017[113]. - The company has been involved in significant related party transactions, including providing substantial guarantees to its controlling shareholder and its affiliates[112]. - The company has reported significant litigation and arbitration matters during the year, indicating ongoing legal challenges[155]. Shareholder and Board Information - The total compensation for the board members during the reporting period amounted to 9.1578 million yuan[103]. - The company reported a shareholding of 60,200 shares for the board members at the end of the reporting period[103]. - The CEO, Cao Xing, received a compensation of 1.6086 million yuan during the reporting period[103]. - The company has not reported any changes in shareholding for the board members during the reporting period[103]. - The company’s board has seen a mix of new appointments and resignations, indicating potential shifts in governance and strategy[111]. Risks and Challenges - The company faces risks including operational challenges due to ongoing litigation and judicial freezes on bank accounts, which have significantly impacted new contract signings[94]. - Increased competition in the 5G market is anticipated as IT companies leverage their technological capabilities, potentially leading to price wars and homogenization of services[95]. - The company must stay abreast of rapid technological advancements in cloud computing and AI to avoid losing its market position due to outdated technology decisions[95]. - The company is currently facing a new lawsuit with a claim of ¥10,000 million, which is yet to be heard in court[157]. - The company has a significant number of ongoing legal disputes, which may impact its financial stability and operational focus[156][157]. Future Outlook - The company has not indicated any plans for market expansion or mergers and acquisitions in the current reporting period[145]. - The company is committed to developing next-generation network operation support systems based on 5G and AI, enhancing automation and intelligence capabilities in ICT business[89]. - The company plans to repurchase shares in the range of 4 million to 6 million RMB, representing 1.24% to 1.85% of the total share capital[182]. - The company aims to provide reasonable assurance that the financial statements are free from material misstatement due to fraud or error[199]. - The company is actively monitoring and addressing its legal obligations to mitigate potential financial impacts from ongoing lawsuits[156][157].