SG(SH:600734)2022-04-29 16:00Financial Performance - The company reported a net loss of approximately RMB 3.1 billion for the year 2021, resulting in no profit distribution or capital reserve increase [6]. - The company's operating revenue for the reporting period was approximately ¥921.82 million, a decrease of 19.94% compared to ¥1,151.47 million in the previous year [24]. - The net profit attributable to shareholders was approximately ¥689.93 million, a significant increase from a loss of ¥591.14 million in the previous year, representing a 216.71% change [24]. - The net cash flow from operating activities was approximately -¥37.72 million, an improvement of 44.03% compared to -¥67.40 million in the previous year [24]. - The company's total assets decreased by 22.94% to approximately ¥1.63 billion from ¥2.11 billion in the previous year [24]. - The basic earnings per share for the reporting period was ¥1.1086, compared to a loss of ¥0.9498 in the previous year, marking a 216.72% increase [26]. - The company reported a net profit of -810,824,880.85 RMB for 2021, leading to a total distributable profit of -3,099,074,525.91 RMB, resulting in no profit distribution for the year [160]. Audit and Compliance - The audit report from Zhongxing Caiguanghua Certified Public Accountants indicated a qualified opinion due to significant uncertainties regarding the company's ability to continue as a going concern [5]. - The company’s financial report has been confirmed as true, accurate, and complete by the responsible executives [4]. - The internal control audit report for 2021 received an unqualified opinion, indicating a recovery to a sustainable operating track [109]. - The company is focused on improving its financial reporting accuracy to avoid future regulatory issues [138]. - The company has established a risk control department to enhance its governance structure [135]. Operational Strategy - The management has provided forward-looking statements regarding the 2022 operational plans, which are subject to change based on future internal and external conditions [7]. - The company aims to optimize its asset-liability structure to mitigate risks of delisting and bankruptcy [36]. - The company is focusing on the integration of smart technology in mobile terminals, which is expected to drive future growth in the industry [37]. - The company is focusing on the digital transformation and quality enhancement of the security industry as outlined in the "14th Five-Year Plan" for China's security industry [40]. - The company is exploring the injection of quality assets, including big data, from its controlling shareholder, subject to regulatory approval [96]. Market and Industry Trends - The lithium battery market is projected to expand due to the increasing popularity of consumer electronics, with the company positioned to benefit from this trend [71]. - The global physical security market is expected to reach $171 billion by 2027, with a compound annual growth rate of 6.50%, indicating potential opportunities for the company in the security sector [72]. - The company is responding to the increasing demand for security solutions driven by government initiatives for smart city construction and infrastructure upgrades [74]. - The rapid development of emerging technologies, particularly artificial intelligence and computer vision, is anticipated to significantly change the business models and profitability of security companies [74]. Restructuring and Financial Health - The company successfully completed its restructuring plan by December 31, 2021, mitigating the risks of delisting and bankruptcy [195]. - As of December 29, 2021, the total restructuring investment paid by investors amounted to RMB 899.998158 million [196]. - The company submitted an application to the Shanghai Stock Exchange to lift the delisting risk warning based on improved financial indicators and compliance with relevant regulations [195]. - The company has committed to not transferring shares obtained from the acquisition of Shida Group for 36 months from the date of registration [175]. Governance and Management - The company has established a long-term mechanism to prevent the controlling shareholder from occupying company funds, ensuring independent operation of the board of directors and supervisory board [105]. - The company has conducted 7 board meetings during the reporting period, with all directors fulfilling their duties diligently and responsibly [105]. - The company has experienced turnover in key management positions, including the resignation of the CFO due to salary arrears [137]. - The company has implemented a remuneration management system for directors and senior management, approved by the shareholders' meeting [135]. Research and Development - The total R&D expenditure was 63,947,036.05 yuan, representing 6.94% of operating revenue [58]. - The company plans to enhance R&D capabilities by recruiting talented personnel and increasing R&D investment following the completion of its restructuring plan [61]. - The company is investing 50 million in R&D for new technologies aimed at enhancing user experience [128]. - Research and development expenses increased by 18%, totaling $150 million, focusing on innovative technologies [125]. Customer and Market Engagement - The company achieved a turnaround in 2021, reporting a net profit and positive net assets after three consecutive years of losses from 2018 to 2020, with the financial situation improving significantly [109]. - User data indicates a steady increase in active users, reflecting the effectiveness of recent marketing strategies [121]. - Customer satisfaction ratings improved to 90%, reflecting a 5% increase from the previous quarter [125]. - The company plans to implement new marketing strategies aimed at increasing brand awareness by 15% in the next fiscal year [125].