CRCH(SH:600636)2022-04-27 16:00Financial Performance - The net profit attributable to shareholders of the listed company for the year ended December 31, 2021, was -427,852,611.77 RMB, while the parent company achieved a net profit of 36,688,376.31 RMB[7]. - The total operating revenue for 2021 was 444,449,331.14 RMB, representing a decrease of 36.45% compared to 2020's revenue of 699,393,005.89 RMB[24]. - The net profit attributable to shareholders was -427.85 million RMB, a decline of 375.10% from the previous year's profit of 155.53 million RMB[26]. - The basic earnings per share were -0.9573 RMB, down 375.09% from 0.3480 RMB in 2020[29]. - The cash flow from operating activities was 85.68 million RMB, a decrease of 58.26% compared to 205.25 million RMB in 2020[28]. - The total assets at the end of 2021 were 2.76 billion RMB, down 15.54% from 3.26 billion RMB at the end of 2020[25]. - The net assets attributable to shareholders decreased by 15.66% to 2.57 billion RMB from 3.05 billion RMB in 2020[25]. - The company recorded a goodwill impairment provision of 51.01 million RMB during the period[27]. - The weighted average return on equity was -15.24%, a decrease of 20.38 percentage points from 5.14% in the previous year[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -478.30 million RMB, a decrease of 469.07% from 129.60 million RMB in 2020[27]. Dividend Distribution - The distributable profit at the end of the year was 690,408,486.37 RMB, after deducting a cash dividend of 48,250,048.22 RMB for the year 2020[7]. - The company plans to distribute a cash dividend of 0.4 RMB per 10 shares, amounting to a total cash dividend of approximately 17,804,986.08 RMB[7]. - A cash dividend of CNY 1.10 per 10 shares (including tax) was distributed, totaling CNY 48,250,048.22, based on a total share capital of 446,936,885 shares[161]. Operational Changes and Strategies - The company completed the restructuring of its three major business departments, enhancing operational efficiency and addressing boundary issues between education and cross-industry businesses[38]. - The company implemented a capital operation plan for the 14th Five-Year Plan period, establishing a project review management team to ensure investment safety[41]. - The company launched new products, including AI recording and simplified recording systems, entering small-scale trial production[37]. - The company completed 36 revisions of its internal management systems, enhancing governance and decision-making efficiency[42]. - The company is actively promoting its services in various sectors, including public security training and rural revitalization, to expand its market presence[60]. Research and Development - The company submitted 86 intellectual property applications, including 38 patent applications and 48 software copyright registrations, all of which have been granted[37]. - R&D expenses were CNY 91,396,005, down 8.15% from the previous year, indicating a focus on maintaining R&D investment despite revenue challenges[65]. - The company completed the development of 36 core chips and other key products, entering small-batch production, with 8 additional chip replacements in progress[64]. - The company is investing heavily in R&D to mitigate the impact of chip shortages caused by the US-China trade war and the COVID-19 pandemic[117]. Governance and Compliance - The company has established a clear decision-making, execution, and supervision structure, ensuring compliance with the Company Law and relevant regulations[171]. - The company adheres to strict corporate governance practices, ensuring independent operations and decision-making free from interference by controlling shareholders[121]. - The board of directors consists of 8 members, including 3 independent directors, ensuring compliance with legal requirements[122]. - The company has established an independent financial department and accounting system, ensuring compliance with financial regulations and independent decision-making[125]. - The company has a robust governance structure in place, including independent directors and a supervisory board, to uphold corporate governance standards[126]. Market and Industry Trends - The education information technology industry is expected to benefit from new policies promoting digital education, with a focus on improving teaching quality and balanced educational development[88]. - The vocational education sector is experiencing significant growth, with an increase of 2.97 million students in higher vocational education, exceeding the government’s target of 2 million[92]. - The company is focusing on the integration of new infrastructure in education, supported by policies from the Ministry of Education and the State Council, which aim to enhance the quality of education and promote digital transformation[98]. - The education informationization industry is facing intensified competition, with an expectation of price wars in low-end products and rising costs due to chip shortages, which may lead to industry consolidation[99]. Social Responsibility and Community Engagement - The company donated 100,000 yuan to support rural revitalization efforts in Yunnan, contributing to local community development[178]. - The company collaborated with China Mobile to establish remote teaching resources in rural areas, enhancing educational access[179]. - The company achieved a 37% coverage of the "Three Classrooms" basic environment in Lichuan, Hubei, integrating quality resources into weaker schools[179]. - In Linli County, Hunan, the company helped create a network of 8 main schools and 73 branch schools, significantly improving educational quality[179]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25%[135]. - New product launches are expected to contribute an additional 300 million in revenue in the upcoming quarter[135]. - The company plans to expand its market presence and enhance its operational strategies[138]. - The company aims to enhance market expansion by increasing collaboration with strategic partners and optimizing sales management, with a focus on new industry applications[106].