ZTGM(SH:603559)2022-04-29 16:00Financial Performance - The company's operating revenue for 2021 was ¥518,178,761.32, a decrease of 21.14% compared to ¥657,077,984.87 in 2020[23]. - The net profit attributable to shareholders of the listed company was -¥356,351,323.53 in 2021, compared to -¥992,391.55 in 2020[23]. - The basic earnings per share for 2021 was -¥2.49, a significant decline from -¥0.01 in 2020[25]. - The total assets at the end of 2021 were ¥1,450,754,470.24, down 21.85% from ¥1,856,274,923.84 at the end of 2020[23]. - The net asset attributable to shareholders of the listed company decreased by 40.58% to ¥520,859,199.82 at the end of 2021[23]. - The cash flow from operating activities for 2021 was -¥4,935,620.04, a decline from -¥125,431,223.96 in 2020[23]. - The weighted average return on equity decreased to -51.00% in 2021 from -0.11% in 2020, primarily due to the decline in net profit[25][26]. - The company reported a net loss of -¥310,817,592.68 in the fourth quarter of 2021, indicating ongoing financial difficulties[29]. Operational Challenges - The company faced significant challenges due to increased competition in the telecommunications industry and a reduction in investment scale by operators in Jilin Province[26]. - The company did not adjust its fixed costs in response to the significant decline in revenue, leading to a substantial decrease in gross margin[26]. - The main business revenue decreased by 139.95 million yuan, a decline of 21.42%, primarily due to reduced revenue in traditional communication services across most regions except Northeast China[48]. - The company faced a significant decline in traditional business revenue, with a decrease of CNY 140.83 million in regions outside Northeast China[50]. Strategic Initiatives - The company aims to optimize its cost structure and enhance efficiency in its traditional communication engineering business, focusing on a "cost reduction and efficiency increase" strategy[35]. - The company plans to expand its digital services for government and enterprise clients, enhancing its service offerings in software development, network operation, and product agency[36]. - The company is focusing on ICT industry, enterprise clients, and 5G edge product development to find new profit growth points amid declining margins in traditional services[38]. - The company will continue to explore surrounding markets and business opportunities, aiming to identify new profit growth areas through careful decision-making and precise planning[42]. Governance and Compliance - The company received an unqualified audit report with an emphasis of matter paragraph regarding significant uncertainties in going concern[5]. - The company has not violated any regulatory decision-making procedures in providing guarantees[8]. - The company emphasizes the importance of investors being aware of the uncertainties in forward-looking statements and associated investment risks[7]. - The company has established a robust employee performance evaluation and incentive mechanism, aligning the interests of the company and its key personnel[95]. - The company has implemented a comprehensive governance structure, including various committees to oversee strategic, risk, and audit functions[94]. Shareholder Information - The total number of ordinary shareholders decreased from 31,481 to 27,799 by the end of the reporting period[177]. - The largest shareholder, Wang Shichao, reduced his holdings by 340,000 shares, holding 7,448,300 shares, which is 5.20% of the total[179]. - As of December 31, 2021, the top three shareholders are Wang Shichao (5.20%), Zhou Caihua, and Hainan Jidi You Investment Partnership (Limited Partnership), with no single shareholder able to control the company[182]. - The total remuneration for the independent director Pan Xiao Lin was 3.00 million yuan, with no shares held[102]. Future Outlook - The company provided guidance for the next quarter, expecting revenue to be between 1.6 billion and 1.7 billion, indicating a potential growth of 7% to 13%[108]. - Future guidance suggests a cautious outlook, with emphasis on stabilizing operations and enhancing profitability[105]. - The company is exploring potential mergers and acquisitions to bolster its market position and drive growth[105]. - The company plans to implement new marketing strategies, allocating $30 million to digital marketing initiatives[112]. Social Responsibility and Environmental Initiatives - The company actively engaged in social responsibility by providing communication support during the COVID-19 outbreak in Tonghua City[148]. - The company has implemented measures to reduce carbon emissions, optimizing resource allocation and enhancing energy efficiency through environmental management systems[147]. - The company has committed to zero wastewater discharge and effective waste disposal and recycling practices across all operational sites[145]. - The company promotes skill training for low-income groups, transitioning from "blood transfusion" to "blood production" methods in poverty alleviation efforts[149].