EmbedWay(SH:603496)2022-04-27 16:00Financial Performance - The company's operating revenue for 2021 was ¥678,205,680.18, representing a 27.21% increase compared to ¥533,124,549.14 in 2020[27]. - The net profit attributable to shareholders for 2021 was ¥53,440,330.58, a 46.83% increase from ¥36,395,234.29 in 2020[27]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥10,118,083.66, showing a decrease of 67.26% compared to ¥30,905,632.87 in 2020[27]. - The net cash flow from operating activities for 2021 was -¥65,963,795.61, an improvement of 16.96% from -¥79,431,924.85 in 2020[27]. - The net assets attributable to shareholders at the end of 2021 were ¥1,174,204,311.66, a 44.04% increase from ¥815,167,930.73 at the end of 2020[27]. - The total assets at the end of 2021 were ¥1,614,688,527.84, reflecting a 38.18% increase from ¥1,168,528,095.24 at the end of 2020[27]. - Basic earnings per share (EPS) for 2021 was 0.2564 RMB, up 39.50% from 0.1838 RMB in 2020[28]. - The cash flow from operating activities improved by 16.96% due to increased sales collections during the reporting period[114]. - The net cash flow from financing activities was ¥283,483,569.86, showing a significant increase of 382.37% year-over-year[11]. Research and Development - The company invested 133.88 million RMB in R&D in 2021, a 19.03% increase year-on-year, accounting for 19.74% of total sales revenue[40]. - The total R&D expenditure was ¥133,879,606.73, which constitutes 19.74% of operating revenue[7]. - The number of R&D personnel was 317, making up 57.12% of the total workforce[9]. - The company is actively investing in research and development for new products, particularly in the areas of embedded computing and intelligent systems[102]. Market Position and Strategy - The company is a leading provider of network visualization and intelligent system platforms in China, focusing on solutions for telecom networks, information security, and industrial internet[67]. - The company anticipates continued growth in the network visualization market driven by national strategies and increased data center construction[39]. - The company is focusing on developing domestic and intelligent integrated hardware and software solutions, establishing partnerships with domestic chip manufacturers to enhance its product offerings[84]. - The company is positioned as a leader in the network visualization field, with nearly two decades of product and technology accumulation[100]. - The company will continue to invest in new product and technology development, particularly in 5G, cybersecurity, and smart IoT, to capture market opportunities[195]. Operational Highlights - The company has detailed risk factors related to its operations in the board report[9]. - The report includes a comprehensive discussion and analysis of the company's operational conditions and potential risks[9]. - The company expanded its sales team and established multiple service centers across various cities to enhance customer service and support[46]. - The company completed several quality management system certifications, including ISO9001 and ISO27001, ensuring high-quality product delivery[47]. Investments and Acquisitions - The company invested 6 million yuan to increase its stake in Beijing Zicai Information Technology Co., Ltd. to 2.12%[52]. - In July 2021, the company sold a 26.67% stake in Nanjing Yunji Information Technology Co., Ltd. for 8 million yuan, ceasing control over the company[52]. - The company established two investment funds, "Husong Xinjv" and "Husong Puxin," with investments leading to two companies successfully listing on the Shanghai Stock Exchange's Sci-Tech Innovation Board[55]. Industry Trends and Outlook - The domestic demand for network visualization products is driven by the ongoing implementation of 5G networks by major telecom operators, with a noticeable recovery in government sector demand[57]. - The intelligent systems market is expected to see significant growth, particularly in industrial automation and information technology sectors[63]. - The upcoming 5G network construction is expected to drive significant changes in the information technology industry, leading to explosive growth in network traffic and expanded application scenarios for network visualization[90]. - The network security industry is projected to exceed 250 billion yuan by 2023, with a compound annual growth rate (CAGR) of over 15%[94]. Corporate Governance - The company received a standard unqualified audit report from Zhonghua Certified Public Accountants[6]. - The board of directors confirmed that all members attended the board meeting, ensuring accountability for the report's accuracy[5]. - The financial report is guaranteed to be true, accurate, and complete by the company's responsible personnel[6]. - There are no non-operational fund occupations by controlling shareholders or related parties[9]. - The company has not disclosed any significant changes in shareholder structure or share capital during the reporting period[12].