CRCH(SH:600636)2022-06-22 16:00Financial Performance - The company's consolidated net profit attributable to shareholders 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]. - Total 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 company's operating revenue for 2021 was 444.45 million yuan, a decrease of 36.45% compared to 2020's 699.39 million yuan, primarily due to the absence of revenue from the chemical business segment after its disposal in 2020[26]. - The net profit attributable to shareholders was -427.85 million yuan, a decline of 375.10% year-over-year, mainly due to goodwill impairment provisions of 51.01 million yuan and contract performance cost impairment provisions of 2.76 million yuan[27]. - The basic earnings per share for 2021 was -0.9573 yuan, down 375.09% from 0.3480 yuan in 2020[29]. - The weighted average return on equity was -15.24%, a decrease of 20.38 percentage points compared to the previous year[26]. - The net cash flow from operating activities was 85.68 million yuan, a decrease of 58.26% year-over-year, influenced by the absence of cash flow from the chemical segment and other one-time tax refunds[28]. - The total assets at the end of 2021 were 2.76 billion yuan, down 15.54% from 3.26 billion yuan at the end of 2020[25]. - The net assets attributable to shareholders decreased by 15.66% to 2.57 billion yuan from 3.05 billion yuan in 2020[25]. - The company reported a net profit attributable to shareholders, excluding non-recurring gains and losses, of -478.30 million yuan, a decrease of 469.07% year-over-year[27]. Dividend Distribution - 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]. - The company reported a total distributable profit of 690,408,486.37 RMB after accounting for the statutory surplus reserve and cash dividends[7]. - The company distributed a cash dividend of 1.10 CNY per 10 shares, totaling 48,250,048.22 CNY, based on a total share capital of 446,936,885 shares after deducting 8,300,083 shares held in the repurchase account[172]. - For the fiscal year 2021, the company achieved a net profit of 36,688,376.31 CNY, with a 10% statutory surplus reserve of 3,668,837.63 CNY, leading to a distributable profit of 690,408,486.37 CNY after accounting for the previous year's cash dividend[172]. Corporate Governance - The company has established a robust internal control system and emphasizes transparency in information disclosure[135]. - The company has a clear governance structure with defined responsibilities and checks and balances[133]. - The company maintains independent operations from its controlling shareholder, ensuring no interference in business decisions[133]. - The board consists of 8 members, including 3 independent directors, meeting legal requirements for governance structure[134]. - The company has implemented a performance evaluation and incentive mechanism for its directors, supervisors, and senior management[135]. - The company has a structured process for determining the remuneration of senior management, involving a compensation and assessment committee[157]. - The company emphasizes comprehensive assessment based on annual operational goals and individual job responsibilities for senior management remuneration[157]. - The company has established a commitment to fair operations and information disclosure in related party transactions[197]. Risk Management - The company has detailed the risks it faces in the "Management Discussion and Analysis" section of the annual report[10]. - The company is focusing on risk management by improving legal risk management mechanisms and enhancing the ability to control and address major risks[123]. - The company is addressing production and operational risks caused by the global chip shortage and rising electronic component prices[129]. - The company has implemented a comprehensive safety management system, achieving a zero incidence rate for occupational diseases and ensuring 100% compliance in labor protection equipment[59]. Strategic Initiatives - The company completed the restructuring of its three major business departments, enhancing channel management and implementing a "one province, one policy" strategy[38]. - The company is actively participating in the "5G + Smart Education" pilot project to explore best practices and solutions in education informationization[50]. - The company aims to leverage the favorable policies and market demand in the education information sector to enhance its innovation and improve industry standards[104]. - The company plans to implement a "14th Five-Year Plan" to reassess its resource endowment and strategic direction, focusing on enhancing collaboration and cooperation to stabilize and extend its industrial and supply chain structure[113]. - The company is committed to completing its three-year reform action plan before the 20th National Congress of the Communist Party of China[126]. Research and Development - The company submitted 86 intellectual property applications in 2021, including 38 patent applications and 48 software copyright registrations, all of which have been granted[37]. - Research and development expenses amounted to ¥91.40 million, representing 20.56% of total revenue[78]. - The company aims to enhance R&D capabilities, aiming to complete high-end recording product replacements by the second half of 2022 and portable recording replacements by 2023[117]. - 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]. Market Position and Competition - The competitive landscape in the education information sector is intensifying, with an expectation of increased market competition and potential price wars in low-end products[111]. - The company is focusing on modernizing education, emphasizing investment in education informationization, smart education, vocational education, and industry-education integration[56]. - The company is actively promoting partnerships with operators and service providers to enhance its service offerings and generate additional revenue[60]. - The company is committed to ensuring supply chain security by conducting supply chain risk analysis and maintaining adequate stock of critical components[119]. Social Responsibility - The company actively fulfilled its social responsibility during the pandemic, integrating it into its development strategy and operations[185]. - The company donated 100,000 yuan to support rural revitalization efforts in Yunnan, contributing to local community development[189]. - The company collaborated with China Mobile to establish remote classrooms in rural areas, enhancing educational resource sharing[189]. - The company achieved a 37% coverage of the "Three Classrooms" basic environment in Li Chuan, integrating quality resources to improve education[190]. Employee Management - The company is enhancing employee capabilities through three major training programs, including management training and comprehensive ability improvement plans[121]. - The company has a comprehensive approach to talent management, fostering a positive cycle of talent development[131]. - The company emphasizes the importance of attracting and retaining high-quality technical and management talent to drive development[131].