CS&S(SH:600536)2022-04-18 16:00Financial Performance - The company's operating revenue for 2021 was ¥10,351,588,212.51, representing a 39.73% increase compared to ¥7,408,151,562.49 in 2020[19]. - The net profit attributable to shareholders for 2021 was ¥75,581,762.59, a 10.77% increase from ¥68,230,406.29 in 2020[19]. - The net cash flow from operating activities reached ¥789,914,242.64, showing a significant increase of 336.99% compared to ¥180,761,933.42 in 2020[19]. - The total assets at the end of 2021 were ¥10,919,128,452.07, which is a 25.58% increase from ¥8,694,798,718.40 at the end of 2020[19]. - The total profit reached 230 million RMB, reflecting a growth of 24.92% compared to the previous year[38]. - The company reported a basic earnings per share of ¥0.15 for 2021, up 10.77% from ¥0.14 in 2020[20]. - The weighted average return on equity increased to 3.23% in 2021, up from 2.96% in 2020, reflecting a growth of 0.27 percentage points[20]. - The company’s total revenue for the software services industry reached ¥10,317,903,292.18, with a year-on-year increase of 39.92%[44]. - The gross profit margin for the software services industry decreased by 1.13 percentage points to 29.56%[44]. - The company reported a significant increase in financial expenses, totaling ¥35,541,618.13, up 486.09% year-on-year due to higher bank loan interest and leasing costs[50]. Investment and Capital Structure - The company plans to distribute a cash dividend of 0.5 yuan per 10 shares and to increase capital by issuing 3 additional shares for every 10 shares held, resulting in a total cash dividend of approximately 24.73 million yuan and a capital increase of 148.37 million shares[4]. - The total share capital as of April 15, 2022, is 494,562,782 shares, which will increase to a maximum of 660,286,617 shares after the proposed capital increase[4]. - The company has established a complete business chain covering operating systems, middleware, security products, and application systems, serving key sectors of the national economy[32]. - The company has approved multiple investment proposals, including increasing capital for subsidiaries and establishing new wholly-owned subsidiaries in various locations[112]. - The company plans to issue medium-term notes totaling no more than 2 billion RMB, with the relevant procedures currently in progress[129]. - The company has a cash dividend policy that stipulates at least 10% of the distributable profit will be distributed as cash dividends if the company is profitable[117]. Research and Development - Research and development expenses amounted to ¥1,846,561,279.39, representing 18.31% of total revenue[51]. - The number of R&D personnel is 5,947, accounting for 50.01% of the total workforce[52]. - R&D investment increased by 42.23% compared to 2020, primarily due to significant personnel investment in major business areas[53]. - The company has developed a total of 8 standard application products under the "1+7" model, which includes a network security and information support platform, enhancing project implementation in key industries such as taxation, finance, and government[28]. - The company is focusing on product transformation strategies and accelerating the implementation of core application products for key industries[34]. Strategic Focus and Market Position - The company aims to enhance its core competitiveness and deepen market-oriented structural reforms as part of its strategic plan for 2018-2022[26]. - The company is focusing on developing industry solutions and service-oriented businesses centered around cybersecurity and information technology[26]. - The company is actively exploring intelligent upgrades in patent examination and IT technology applications, enhancing its full industry chain layout[29]. - The company is benefiting from favorable policies and a growing market demand driven by the digital economy[35]. - The company is focusing on expanding its presence in the digital government and digital society sectors, enhancing its core competitiveness in digital business[83]. Governance and Compliance - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[5]. - The company has established a risk management and internal control system, which was reviewed and approved during the reporting period[112]. - The company’s governance practices are in compliance with the requirements set by the China Securities Regulatory Commission, with no significant discrepancies noted[86]. - The board of directors has been empowered to make strategic decisions, with a focus on risk prevention and management, aligning with regulatory requirements[85]. - The company has implemented measures to ensure the independence of its operations, with no reported conflicts of interest from controlling shareholders[86]. Future Outlook - The company anticipates challenges in 2022 due to global economic pressures but sees opportunities in the growing demand for domestic software solutions[72]. - The company plans to achieve a revenue of 12 billion yuan in 2022, with cost expenses controlled within a reasonable range[83]. - The company provided a positive outlook for the next quarter, projecting a revenue growth of 10% to 12%[93]. - New product launches are expected to contribute an additional 1 billion yuan in revenue over the next fiscal year[93]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[196].