JSZY(SH:600770)2022-04-19 16:00Financial Performance - In 2021, the company's operating revenue was CNY 373,330,700.13, a decrease of 1.04% compared to CNY 377,239,709.24 in 2020[20] - The net profit attributable to shareholders of the listed company for 2021 was CNY 59,874,989.03, down 64.46% from CNY 168,487,165.70 in 2020[20] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 31,695,136.38, an increase of 9.82% compared to CNY 28,861,628.32 in 2020[20] - The net cash flow from operating activities was CNY 35,205,789.87, a significant decrease of 87.17% from CNY 274,402,560.84 in 2020[20] - As of the end of 2021, the net assets attributable to shareholders were CNY 3,633,090,179.40, a decrease of 2.01% from CNY 3,707,785,552.53 at the end of 2020[20] - Total assets at the end of 2021 were CNY 6,003,379,576.38, down 0.93% from CNY 6,059,686,717.47 at the end of 2020[20] - Basic earnings per share decreased by 64.43% to CNY 0.0461 in 2021 compared to CNY 0.1296 in 2020[21] - The company's net profit attributable to shareholders saw a significant decline due to a decrease in fair value changes, impacting overall profitability[21] Operational Highlights - The company reported a negative distributable profit of CNY -1,330,820,992.25 at the end of 2021, leading to no profit distribution or capital reserve increase proposal[5] - The company faced various operational risks, which are detailed in the management discussion and analysis section of the report[7] - The company has not engaged in non-operating fund occupation by controlling shareholders or related parties[7] - The company has not violated decision-making procedures for external guarantees[7] Revenue Breakdown - Total revenue for the fourth quarter was CNY 72,946,267.67, with a net profit of CNY 34,752,534.06 attributable to shareholders[23] - The company reported a net cash flow from operating activities of CNY 27,299,368.08 in the fourth quarter[24] - Non-recurring gains and losses totaled CNY 28,179,852.65 in 2021, down from CNY 139,625,537.38 in 2020[24] - The manufacturing sector generated revenue of CNY 164.25 million, with a gross margin increase of 5.59 percentage points to 34.66%[92] - The photovoltaic power station segment reported revenue of CNY 170.16 million, with a gross margin of 44.80%, up by 2.44 percentage points[92] - The company’s overseas revenue reached CNY 142.61 million, with a gross margin of 43.54%, reflecting a 2.35 percentage point increase[92] Strategic Focus - The company is focusing on technology innovation and market expansion in the fields of information technology, new energy, and equity investment[29] - The company is adjusting its strategy in the chip design sector due to declining demand for traditional payment methods, shifting focus to new product development[30] - The company aims to explore new development opportunities in niche markets through research and development of new technologies[30] - The company aims to enhance its market position and share by improving technology, products, and services in response to significant market demand[65] - The company aims to leverage the growing demand for high-performance, low-power embedded processors in the industrial sector to fill existing market gaps[52] Investment and Development - Jiangsu Gaotou continued its value investment strategy, focusing on the pharmaceutical sector while adhering to a cautious investment approach amid a slowing domestic economy[40] - Jiangsu Gaotou's investment strategy focuses on the healthcare sector, with nearly 100 leading companies in the health industry researched this year, resulting in an investment in a medical device company[41] - The company has completed value-added transfers for three projects, including Shandong Qihe Biotechnology Co., Ltd., and has reduced its stake in Shandong Shuangyi Technology Co., Ltd. in the secondary market[42] - The company is actively planning and advancing multiple projects to connect with capital markets[41] - The company aims to enhance its core competitiveness in the information technology sector, focusing on chip design and application, while also promoting high-quality development in the renewable energy business[142] Market Trends - The domestic hearing aid market is shifting towards mid-range products, with a significant increase in demand for reliable, cost-effective, and customizable chips[48] - The mobile gaming market in China generated actual sales revenue of 225.54 billion yuan in 2021, a year-on-year increase of 7.57%[54] - The smart card market in China is expanding rapidly, with applications now spanning various sectors including finance, healthcare, and government services, driven by advancements in digital technology[53] - The photovoltaic industry is expected to play a crucial role in achieving carbon neutrality goals, supported by favorable government policies and increasing global demand for renewable energy[57] Corporate Governance - The company emphasizes sustainable development, integrating long-term green development concepts into its operations, and actively fulfills its social responsibilities[191] - The company has established specialized committees under the board to enhance governance and protect shareholder rights[160] - The company has implemented a performance management system to align the interests of shareholders, the company, and management[185] - The company has engaged Lixin Certified Public Accountants to audit the effectiveness of its internal controls, receiving a standard unqualified opinion[187] Human Resources - The company has a total of 583 employees, with 44 in the parent company and 539 in major subsidiaries[178] - The employee composition includes 193 production personnel, 84 sales personnel, 135 technical personnel, 39 financial personnel, and 132 administrative personnel[178] - The company has established a comprehensive salary policy that considers national laws, industry salary levels, and the company's operational situation[179] Future Outlook - The company plans to strengthen its risk management processes to mitigate impacts from macroeconomic and industry policy changes[153] - The company will enhance its technological innovation efforts to maintain a competitive edge in rapidly evolving markets[154] - The company will monitor exchange rate fluctuations closely to manage risks associated with its overseas operations[155]