ENC(SH:603869)2022-04-19 16:00Financial Performance - The company achieved operating revenue of ¥936,603,680.34 in 2021, a decrease of 20.41% compared to ¥1,176,772,144.87 in 2020[24]. - Net profit attributable to shareholders was ¥22,206,643.22, representing an increase of 28.81% from ¥17,239,633.55 in the previous year[24]. - The net cash flow from operating activities increased by 21.39% to ¥734,032,683.08 from ¥604,679,640.85 in 2020[24]. - The total assets decreased by 20.49% to ¥5,104,722,665.03 at the end of 2021, down from ¥6,420,395,863.05 at the end of 2020[24]. - The company reported a significant decrease in total revenue compared to 2019, which was ¥3,227,973,598.50[24]. - Basic earnings per share increased by 33.33% to CNY 0.04 in 2021 from CNY 0.03 in 2020[26]. - Diluted earnings per share also rose by 33.33% to CNY 0.04 in 2021 compared to CNY 0.03 in 2020[28]. - The weighted average return on equity increased by 0.13 percentage points to 0.56% in 2021 from 0.43% in 2020[28]. - The company reported total revenue of CNY 496,136,397.79 for the year, with quarterly revenues of CNY 159,791,266.87, CNY 187,153,487.39, CNY 93,522,528.29, and CNY 155,668,115.24 respectively[31]. - The net profit attributable to shareholders was CNY -36,489,425.59 for the year, with a significant loss in the third quarter of CNY -24,226,129.25[31]. - Non-recurring gains and losses amounted to CNY 4,044,281.17 in 2021, a decrease from CNY 352,779,047.57 in 2020[35]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of ¥0.15 per 10 shares, totaling ¥7,466,487.315, which accounts for 33.62% of the net profit attributable to shareholders[6]. - The company reported a total cash dividend of 6,977,317.71, accounting for 41.17% of the net profit attributable to shareholders[146]. - The cash dividend was set at 0.10 per 10 shares, based on a total share base of 497,765,821 shares after excluding repurchased shares[146]. Business Strategy and Development - The company is focusing on urban safety development, integrating data intelligence, artificial intelligence, and expert intelligence into its product system[40]. - The company is transitioning from an integrated company to a professional solution company with core self-developed products, enhancing product performance and stickiness[40]. - The company is concentrating on police safety, enterprise safety, and park safety, gradually extending into urban governance and public welfare applications[40]. - The company aims to focus on urban safety operations and plans to enhance management efficiency and expand into quality customer markets in 2022[109]. - The company is exploring potential acquisitions to bolster its product offerings, with a budget of 500 million RMB allocated for this purpose[126]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by the end of 2023[126]. Research and Development - The company has built a diverse product system and solution design capabilities based on smart IoT technology, enhancing its competitive edge in the social safety sector[71]. - Research and development expenses decreased by 9.07% to 122.2 million RMB, attributed to higher product conversion rates[77]. - Total R&D expenses amounted to 146.12 million yuan, representing 15.60% of operating revenue[88]. - Research and development investments increased by 30%, totaling 150 million RMB, aimed at enhancing technology capabilities[127]. - The company focuses on enhancing its product system and understanding customer needs, increasing R&D investment to drive the development of smart IoT platforms[110]. Governance and Compliance - The company emphasizes the importance of maintaining an independent governance structure and ensuring compliance with relevant laws and regulations[116]. - The company actively engages in investor relations management to enhance communication and ensure shareholders' rights are protected[118]. - The company has established a robust governance framework with a board of directors comprising nine members, including three independent directors[117]. - The company has maintained transparency in information disclosure, adhering to relevant laws and regulations[159]. - The company has a long-term commitment to avoid related party transactions and competition, ensuring the interests of shareholders are protected[163]. Market and Competition - The company faces intensified market competition as more firms enter the urban safety sector, increasing the difficulty of operational model implementation[114]. - The company is addressing the risk of increased accounts receivable due to long procurement and payment approval cycles from government clients[114]. - The management emphasized the importance of sustainability initiatives, with a commitment to reduce carbon emissions by 20% by 2025[127]. Employee and Management - The company employed a total of 528 staff members, with 355 in technical roles and 91 in sales[140]. - The company has a total of 6 PhD holders and 83 master's degree holders among its employees[140]. - The total remuneration for all directors, supervisors, and senior management personnel at the end of the reporting period amounted to CNY 16.92 million[128]. - The company has implemented a value-sharing incentive system, linking employee compensation to performance and market benchmarks[141]. - The company has established a performance evaluation and incentive mechanism for senior management, combining a base salary with performance-based pay[148]. Financial Position and Assets - The company has a strong financial position, enabling it to invest in technology research and development and pursue long-term operational opportunities in urban-level projects[73]. - The company reported a significant increase in other current liabilities, which rose by 143.38% to ¥203,029,235.69, due to debts maturing within one year[96]. - The company’s cash and cash equivalents included ¥30,793,325.95, with some funds subject to judicial freezes[98]. - The company’s deferred income decreased by 75.28% to ¥6,327,655.16, as government subsidies from previous years were recognized as other income[96]. - The company’s total assets and liabilities structure remained stable, with no significant changes reported in the share capital structure[182]. Social Responsibility and Environmental Initiatives - The company actively engages in environmental protection and adheres to all environmental policies, with no administrative penalties reported[157]. - The company actively participates in social responsibility and has been recognized with the "Outstanding Contribution Award for Economic Development" and the "Model Enterprise Award for Public Welfare" in 2021[159]. - The company has been awarded the "Top 50 Smart Public Security Enterprises" in 2021, showcasing its expertise in police information technology and AI applications[159]. - The company has a commitment to legal compliance and has contributed to local economic development through job creation and tax payments[159]. Shareholding and Ownership Structure - The controlling shareholder, Xin'ao Energy Supply Chain Co., increased its stake by 5,770,000 shares, representing 1.14% of the total share capital, bringing its total ownership to 53.24%[182]. - The number of ordinary shareholders decreased from 18,953 to 16,961 during the reporting period, indicating a reduction in shareholder base[183]. - The company has not reported any significant changes in its major shareholders or their shareholding ratios[193].