CHINA HI-TECH(SH:600730)2022-03-30 16:00Financial Performance - In 2021, the company's operating revenue was approximately CNY 104.24 million, representing a 1.20% increase compared to CNY 102.99 million in 2020[21]. - The net profit attributable to shareholders of the listed company decreased by 24.92% to CNY 13.98 million from CNY 18.62 million in the previous year[21]. - The basic earnings per share for 2021 was CNY 0.024, down 25.00% from CNY 0.032 in 2020[22]. - The net cash flow from operating activities was CNY 226.44 million, a significant recovery from a negative cash flow of CNY -222.57 million in 2020[21]. - The total assets of the company at the end of 2021 were CNY 2.22 billion, a decrease of 3.25% from CNY 2.30 billion at the end of 2020[21]. - The company reported a net asset attributable to shareholders of CNY 1.86 billion, a slight decrease of 2.65% from CNY 1.91 billion at the end of 2020[21]. - The weighted average return on net assets decreased by 0.25 percentage points to 0.73%[23]. - The company reported a total revenue of CNY 29.17 million in Q1, CNY 29.61 million in Q2, CNY 20.96 million in Q3, and CNY 24.50 million in Q4[26]. - The company experienced a net loss of CNY 3.25 million in Q3, with a recovery to a profit of CNY 1.11 million in Q4[26]. Research and Development - The total investment in R&D increased significantly, contributing to the shift in product structure and innovation in the education sector[23]. - Research and development expenses surged by 83.18%, totaling CNY 36.70 million, compared to CNY 20.04 million in the previous year, indicating a strong focus on new product development[64]. - The company employed 197 R&D personnel, representing 37% of the total workforce, with a notable increase in staff to support product development needs[79]. - Yingteng Education's core product, the Exam Treasure, integrates AI technology, enhancing user learning experiences and covering 1,308 subjects in medical education[35]. - The company is developing innovative emergency safety education products using AI and big data technologies[54]. Business Segments - The education segment generated revenue of 70.83 million yuan, accounting for 67.95% of the company's total revenue[34]. - The subsidiary, Yingteng Education, reported revenue of 63.89 million yuan, focusing on medical education and emergency safety education[35]. - The company's higher education integration business achieved revenue of 7.04 million yuan, representing a year-on-year growth of 281.49%[38]. - The traditional property leasing business generated revenue of 28.42 million yuan, with stable operations reported[40]. - The property leasing segment saw revenue growth of 10.86% to ¥33,144,212.81, with a stable gross margin of 81.30%[70]. Market Environment - The government policies are increasingly supportive of vocational education, creating a favorable environment for the company's growth in this sector[43]. - The vocational training market in China is projected to reach CNY 318.5 billion by 2022, indicating significant growth potential in the sector[100]. - The demand for vocational education is shifting towards emerging industries, with a predicted talent gap of nearly 30 million in key sectors by 2025[101]. - The vocational education industry is expected to undergo rapid development, with a trend towards market consolidation and diversified service offerings[103]. Corporate Governance - The company maintains independence from its controlling shareholder, with no violations regarding the use of funds or assets[119]. - The board of directors and supervisory board are composed in accordance with legal regulations, ensuring proper governance and accountability[114]. - The company emphasizes the accuracy, timeliness, and completeness of information disclosure, adhering to regulatory requirements[116]. - The company has established a robust investor relations management system, enhancing communication through multiple channels[117]. - The company has committed to continuous improvement in corporate governance and internal management practices[119]. Legal Matters - The company faced significant litigation matters during the year, including a contract dispute with Beijing Peking University Press, which has been ongoing since April 2019[182]. - The total amount involved in the litigation with Chinese investors is approximately RMB 67.13 million[184]. - The company has recognized a provision for expected liabilities amounting to CNY 43,014,276.44 related to ongoing legal cases as of the report date[187]. - The company was ordered by the Beijing First Intermediate Court to compensate investors a total of CNY 47,314,756.09 due to securities misrepresentation claims[186]. Employee and Compensation - The total number of employees is 529, with 276 holding a bachelor's degree and 37 holding a master's degree[151]. - The company has established a competitive compensation system to attract and retain talent, with regular salary surveys conducted to adjust overall salary levels[152]. - Total compensation for all directors, supervisors, and senior management at the end of the reporting period amounted to 4.1562 million yuan[135]. Environmental Responsibility - The company strictly complies with national and local environmental protection laws and actively promotes carbon neutrality policies, implementing paperless operations and energy-saving measures[163]. - The company encourages employees to adopt "green commuting" practices to contribute to environmental improvement and sustainable development[163]. - There were no administrative penalties related to environmental issues during the reporting period[164].