Routon(SH:600355)2022-04-01 16:00Financial Performance - The company reported a net profit attributable to shareholders of -9,339,636.30 RMB for 2021, an improvement from -35,482,770.90 RMB in 2020[7]. - Total revenue for 2021 was 263,924,015.88 RMB, representing a 34.24% increase compared to 196,600,847.38 RMB in 2020[23]. - The net cash flow from operating activities was -6,212,870.19 RMB, an improvement from -42,809,384.26 RMB in the previous year[23]. - The basic earnings per share for 2021 was -0.02 CNY, an improvement from -0.07 CNY in 2020[24]. - The diluted earnings per share for 2021 was -0.02 CNY, compared to -0.07 CNY in 2020[24]. - The weighted average return on equity for 2021 was -3.67%, an improvement from -12.80% in 2020[24]. - The net profit attributable to shareholders for Q2 2021 was 2,398,769.28 CNY, but dropped to -11,689,197.51 CNY in Q4 2021[26]. - The company reported a significant increase in tax and additional charges by 61.41%, totaling CNY 3,314,353.41 due to higher land use and property taxes[47]. - The company reported a total of CNY 434,520.97 million in other comprehensive income, which is a significant component of the overall equity[179]. - The company’s total comprehensive income for 2021 was a loss of CNY 12,172,468.18, an improvement from a loss of CNY 33,415,828.71 in 2020[167]. Assets and Liabilities - Total assets decreased by 5.92% to 416,127,505.80 RMB at the end of 2021, down from 442,334,697.06 RMB at the end of 2020[23]. - The company's net assets attributable to shareholders decreased by 3.60% to 250,227,503.14 RMB at the end of 2021, compared to 259,567,139.44 RMB at the end of 2020[23]. - Total current assets decreased to CNY 244.80 million in 2021 from CNY 267.65 million in 2020, a decline of approximately 8.5%[154]. - Total non-current assets amounted to CNY 171.33 million in 2021, slightly down from CNY 174.69 million in 2020, a decrease of approximately 1.9%[155]. - Total liabilities decreased to CNY 167.09 million in 2021 from CNY 183.95 million in 2020, a reduction of about 9.2%[156]. - The company's total equity attributable to shareholders decreased to CNY 250.23 million in 2021 from CNY 259.57 million in 2020, a decrease of approximately 3.0%[156]. - The company's cash and cash equivalents were CNY 62.44 million in 2021, down from CNY 67.75 million in 2020, a decline of about 7.0%[154]. - The company's inventory decreased to CNY 94.89 million in 2021 from CNY 104.49 million in 2020, a decline of approximately 9.2%[154]. - The accounts receivable balance was RMB 82.96 million, with a bad debt provision of RMB 63.54 million, accounting for 4.43% of the total assets in the consolidated financial statements[144]. Research and Development - Research and development expenses increased by 11.03% to ¥34,853,635.66, reflecting the company's commitment to innovation[40]. - The company has accumulated 219 patents by the end of 2021, including 37 invention patents and 99 utility model patents[35]. - The company has developed a core technology system with nearly 70 patents and software copyrights, maintaining a leading position in the identity verification market[37]. - The company plans to enhance its autonomous innovation capabilities and increase investment in original technology and new product development, particularly in the smart manufacturing sector[58]. Corporate Governance - The company has established a fair and transparent performance evaluation and incentive mechanism for directors, supervisors, and senior management[72]. - The company strictly adheres to the requirements of the Company Law and the Securities Law, ensuring the protection of shareholders' rights and interests[70]. - The company has implemented a comprehensive internal control system, continuously improving its internal control mechanisms to enhance governance levels[72]. - The company has committed to improving its corporate governance structure and internal control mechanisms for sustainable development[74]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 2.2248 million yuan[81]. Market and Operational Strategy - The company launched a full series of identity verification products in 2021, providing specialized information collection equipment for nationwide nucleic acid testing[31]. - The company is positioned as a core supplier in the real-name identity verification industry, covering 34 provinces and cities in China[33]. - The company aims to reduce the intermediate links and turnover time in the supply chain by at least 50% through new technology developments[36]. - The company plans to expand into new application areas and markets based on its technology accumulation in IoT charging products and access control products[37]. - The company will continue to explore new market growth points in the smart commercial terminal application sector, focusing on identity verification, IoT charging products, and access control products[62]. Risks and Challenges - The company faces various risks including management, market, talent, technology, and policy risks as detailed in the report[9]. - The company faces risks from rising raw material costs and supply chain management challenges, which may impact profitability[66]. - The company anticipates uncertainties in project promotion due to fluctuating policies in the education sector and the impact of the pandemic[68]. - The company is committed to optimizing product design costs and supply chain management to meet cost control targets amid increasing constraints[66]. Audit and Compliance - The company received a standard unqualified audit report from Zhongshun Zhonghuan Accounting Firm for the 2021 financial report[6]. - The audit committee held 4 meetings during the reporting period to review various internal control and audit reports[2]. - The internal control audit report received a standard unqualified opinion[102]. - The audit report confirms that the financial statements fairly reflect the company's financial position as of December 31, 2021[137].