FOUNDERTECH(SH:600601)2022-04-29 16:00Financial Performance - The company reported a loss for the year 2021, with a negative retained earnings balance at the end of the period[7]. - The company will not distribute profits or increase capital reserves due to the reported losses for the year[7]. - The company's operating revenue for 2021 was approximately ¥5.43 billion, a decrease of 9.06% compared to ¥5.97 billion in 2020[26]. - The net profit attributable to shareholders was approximately -¥1.21 billion in 2021, compared to -¥919.59 million in 2020, indicating a significant loss[26]. - The net cash flow from operating activities was -¥15.58 million in 2021, a sharp decline from ¥673.95 million in 2020[26]. - The total assets decreased by 10.23% to approximately ¥8.15 billion at the end of 2021, down from ¥9.08 billion at the end of 2020[26]. - The basic earnings per share for 2021 was -¥0.5520, compared to -¥0.4190 in 2020, reflecting worsening financial performance[27]. - The weighted average return on equity was not applicable in 2021, while it was -70.36% in 2020[27]. - Non-recurring losses for 2021 totaled approximately -¥115.93 million, significantly impacting the overall financial results[31]. - The company's net assets attributable to shareholders were -¥700.94 million at the end of 2021, a decrease of 198.85% from the previous year[26]. Business Segments Performance - PCB business achieved revenue of 3.2 billion CNY, remaining flat year-on-year, with a net profit of -7.58 million CNY due to significant relocation costs and increased depreciation during the production ramp-up period[38]. - Internet access service business revenue decreased by 7.47% to 425 million CNY, with a net loss of 729 million CNY, impacted by debt defaults and intense market competition[39]. - IT system integration and solution business revenue fell by 23.11% to 1.563 billion CNY, resulting in a net loss of 274 million CNY due to reduced order volume and delayed delivery[42]. Market Trends - The global PCB industry is projected to grow, with a total market value of 80.449 billion USD in 2021, reflecting a year-on-year increase of 23.4%[43]. - The number of fixed internet broadband users in China reached 536 million, with a net increase of 52.24 million users in the year, indicating a growing demand for high-speed internet[43]. - Emerging businesses in the telecommunications sector achieved revenue of 222.5 billion CNY, growing by 27.8% year-on-year, driven by data center and cloud computing services[47]. - The software and information technology service industry in China reported a revenue of 9.499 trillion CNY, with a year-on-year growth of 17.7%[47]. Strategic Focus - The company plans to continue focusing on market expansion and new product development to improve future performance[29]. - The company is focusing on digital transformation and smart technology integration to enhance its service offerings in various sectors, including public safety and transportation[40]. - The company plans to continue optimizing its technology services and expanding its market presence in key urban areas[39]. - The company aims to deepen strategic partnerships with telecom operators to improve its broadband access services and expand its user base[85]. Corporate Governance - The company held two shareholder meetings, six board meetings, and three supervisory board meetings during the reporting period[99]. - The independent directors account for one-third of the total number of directors on the board[99]. - The company ensures the independence of its operations and decision-making from its controlling shareholders[102]. - The company has established a financial and accounting management system to ensure independent accounting[99]. - The company has implemented a performance evaluation and incentive mechanism for middle management, including a competitive recruitment and elimination system[99]. Environmental Compliance - The company operates three key pollution discharge units in Zhuhai and Chongqing, with specific pollutant discharge data provided[148]. - The company has implemented stable wastewater and air pollution treatment systems across its facilities, ensuring compliance with environmental standards[155]. - The company has passed ISO 14001 audits and strictly adheres to national laws and industry standards regarding pollution control[155]. - The company reported no administrative penalties due to environmental issues during the reporting period[162]. Financial Risks and Challenges - The company faces a risk of stock delisting due to negative net assets reported at the end of 2021, which may trigger a warning under the Shanghai Stock Exchange rules[90]. - Future operational uncertainties arise from the ongoing restructuring process, with potential impacts from changes in the controlling shareholder[93]. - The company is experiencing liquidity issues, with overdue borrowings that could lead to cross-default risks if not resolved[93]. - The company has ongoing significant litigation involving claims totaling approximately RMB 386 million against eight companies for unpaid debts[192]. Related Party Transactions - The company engaged in related party transactions, including purchasing computer-related products and services from Founder Group and its subsidiaries, totaling CNY 1,170.42 million[198]. - The company also sold products and services to Founder Group, amounting to CNY 914.51 million for computer-related products and CNY 769.10 million for broadband-related products[198].