STS(SH:603322)2022-04-29 16:00Financial Performance - The company's operating revenue for 2021 was approximately ¥1.48 billion, a slight increase of 0.39% compared to ¥1.48 billion in 2020[22]. - The net profit attributable to shareholders of the listed company was a loss of approximately ¥230.82 million, representing a decrease of 682.86% compared to a profit of ¥39.60 million in 2020[22]. - The cash flow from operating activities for 2021 was approximately ¥59.21 million, down 26.64% from ¥80.71 million in 2020[22]. - The total assets at the end of 2021 were approximately ¥2.24 billion, a decrease of 1.99% compared to ¥2.28 billion at the end of 2020[23]. - The basic earnings per share for 2021 was -¥1.45, a decrease of 680.00% compared to ¥0.25 in 2020[23]. - The company reported a net loss of approximately ¥232.78 million in the fourth quarter of 2021, following a loss of ¥6.07 million in the third quarter[27]. - The company recorded a government subsidy of approximately ¥8.19 million in 2021, compared to ¥17.39 million in 2020[29]. - The weighted average return on equity for 2021 was -70.11%, a decrease of 79.98 percentage points from 9.87% in 2020[23]. - The company achieved operating revenue of 1,483.64 million RMB, a year-on-year increase of 0.39%[35]. - The net profit attributable to shareholders was -230.82 million RMB, a year-on-year decrease of 682.86%[35]. Operational Efficiency and Costs - The company's operating costs increased by 11.58% year-on-year, amounting to CNY 1,323,209,765.03[50]. - Research and development expenses rose by 15.67% to CNY 66,722,352.40, reflecting the company's commitment to innovation[50]. - The gross profit margin for the communication technology sector decreased by 1.58 percentage points, with revenue of 1,096.41 million RMB and costs of 1,004.81 million RMB[54]. - The Internet of Things (IoT) sector saw a significant decline, with revenue of 386.72 million RMB and a gross profit margin decrease of 52.46 percentage points[54]. - Revenue from the communication network maintenance business increased by 25.46%, reaching 726.94 million RMB, while costs rose to 662.61 million RMB[54]. - The company reported a significant reduction in costs related to vehicle operations, decreasing by 89.41% to 1,466,208.85 from 13,849,406.70 in the previous year[60]. - The overall operational efficiency has improved, as indicated by the reduction in various costs despite a drop in revenue in certain areas[62]. Market Expansion and Technology Development - The company is focused on expanding its market presence and developing new technologies, particularly in the fields of 4G and 5G communications[11]. - The company emphasizes the importance of edge computing and IoT in its future strategies[12]. - The company is actively expanding its market presence in the IoT sector, driven by the rapid development of 5G technology and its applications[44]. - The company plans to focus on expanding its market presence and enhancing product offerings in response to declining segments[64]. - The company launched new technology service projects in various industries, including pharmaceuticals and cosmetics, to expand its business scope[37]. - The company plans to increase R&D investment in 5G and IoT-related technologies, particularly in developing a series of 5G wireless coverage products[92]. Corporate Governance and Compliance - The company has a commitment to corporate governance and transparency, as evidenced by the attendance of all board members at the meeting[8]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate communication with investors, particularly minority shareholders[101]. - The company has established a comprehensive internal control management system in compliance with regulations, enhancing decision-making efficiency and ensuring asset safety[129]. - The internal control audit report received a standard unqualified opinion, indicating effective internal control systems[131]. - The company has not faced any significant internal control deficiencies during the reporting period[129]. Shareholder and Management Information - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the 2021 fiscal year[4]. - The total remuneration for the chairman during the reporting period was 633,500 yuan, while the vice chairman received 1,562,700 yuan[106]. - The total remuneration for all directors, supervisors, and senior management was 5,905,700, reflecting the company's profitability and individual contributions[111]. - The company has seen a significant change in management, with the resignation of the deputy general manager due to personal reasons[112]. - The total number of employees in the parent company is 843, and in major subsidiaries, it is 374, resulting in a total of 1,217 employees[121]. Risks and Challenges - The management has outlined potential risks in the "Management Discussion and Analysis" section of the report[7]. - The company faces risks related to customer concentration, particularly with China Mobile as a major client, which could significantly impact its performance if market conditions change[95]. - The company faces goodwill impairment risks if the acquired company's operational performance deteriorates or fails to meet performance commitments, which could adversely affect the company's operating results[97]. Community Engagement and Social Responsibility - The company actively participates in social responsibility initiatives, donating RMB 100,000 in August 2021 for poverty alleviation efforts in Heilongjiang[133]. - The company has actively engaged in community support, donating RMB 50,000 to the Guangxi Zhuang Autonomous Region for welfare initiatives[133].