ENC(SH:603869)2023-04-28 16:00Financial Performance - The company achieved operating revenue of ¥962,929,945.54 in 2022, representing a year-on-year increase of 2.81% from ¥936,603,680.34 in 2021[25]. - The net profit attributable to shareholders of the listed company was ¥17,871,075.57, a decrease of 19.52% compared to ¥22,206,643.22 in the previous year[25]. - The net cash flow from operating activities was ¥36,755,108.52, down 94.99% from ¥734,032,683.08 in 2021[25]. - The total assets decreased by 4.52% to ¥4,874,145,282.29 at the end of 2022, compared to ¥5,104,722,665.03 at the end of 2021[25]. - Basic earnings per share remained stable at CNY 0.04 in 2022, unchanged from 2021[27]. - The diluted earnings per share also held steady at CNY 0.04 in 2022, consistent with the previous year[27]. - The net profit attributable to shareholders was CNY -15,177,147.41 in Q4 2022, a significant decline compared to CNY 24,198,047.95 in Q3 2022[28]. - The company reported a total revenue of CNY 134,056,912.24 in Q1 2022, which increased to CNY 312,988,334.48 in Q2 2022, but fell to CNY 209,319,637.15 in Q4 2022[28]. - The weighted average return on equity decreased to 0.45% in 2022 from 0.56% in 2021, reflecting a decline in profitability[27]. - The gross profit margin for product sales and system integration decreased by 11.9 percentage points due to external market conditions[69]. - The technical services and software segment contributed 390 million RMB in revenue, reflecting a growth of 28.8% year-over-year[69]. - Revenue from the public safety sector reached ¥676.44 million, with a year-over-year decrease of 0.75%[72]. - Gross margin for enterprise safety was 60.57%, down 2.15% from the previous year, with revenue of ¥249.02 million[72]. - Total R&D investment amounted to ¥141.07 million, representing 14.65% of total revenue[77]. - The company reported a significant increase in technical service revenue, which grew by 28.82% year-over-year to ¥394.42 million[72]. - The gross margin for technical services was 58.18%, reflecting a 45.62% increase in costs compared to the previous year[75]. - The total revenue for the year 2022 was RMB 39.295 billion, with an actual revenue of RMB 27.138 billion, indicating a significant year-on-year difference[175]. - The company reported a total of RMB 25.102 billion in bank wealth management using its own funds, with no overdue amounts[182]. - The company’s total expenses for the year amounted to RMB 4.545 billion, with actual expenses of RMB 2.643 billion[175]. Shareholder Returns and Dividends - The company proposed not to distribute cash dividends or stock dividends for 2022, as the total amount spent on share repurchases exceeded 30% of the net profit attributable to shareholders[6]. - The company has implemented a value-sharing incentive system, with total cash dividends amounting to CNY 7,464,053.02, representing 33.61% of the net profit attributable to shareholders[150]. - The cash dividend per 10 shares is CNY 0.01504 (including tax)[152]. - The company’s cash dividend policy aligns with shareholder interests and is designed to balance immediate and long-term benefits[150]. Operational Strategies and Future Plans - The company implemented a "three-step" strategy in 2022 to stabilize its operational performance, focusing on revenue generation, capability enhancement, and strategic transformation[54]. - The company aims to build a comprehensive product system for gas safety, integrating data collection, analysis, and risk management[36]. - The company is focusing on compliance intelligence for hazardous materials transportation, ensuring real-time monitoring and regulatory adherence across the entire process[46]. - The company aims to deepen its engagement in the digital economy and enhance integration with the real economy[94]. - The company plans to optimize and upgrade core products in gas safety, general enterprise safety, and police safety, with a focus on creating industry-leading solutions[99]. - The company will explore platform operation and model innovation, validating three business models: developer/product ecosystem, solution/ecosystem, and data operation ecosystem[102]. - The company is focusing on market expansion, targeting new regions in Southeast Asia, with plans to establish local partnerships by Q3 2023[124]. - The company has allocated 300 million RMB for R&D in 2023, emphasizing advancements in machine learning and data processing technologies[124]. - The company plans to increase its workforce by 10% in 2023 to support growth initiatives and enhance service delivery[124]. Risk Management and Compliance - The company has outlined potential risks in its management discussion and analysis section, urging investors to be cautious[9]. - The company faces risks including rapid technological updates, potential core talent loss, intensified market competition, and increased accounts receivable risks[104][105]. - The company emphasizes the independence of its board and management, ensuring no interference from controlling shareholders in decision-making processes[109]. - The company has committed to accurate and timely information disclosure, adhering to regulations set by the China Securities Regulatory Commission and the Shanghai Stock Exchange[109]. - The company has established an internal control system to manage potential risks associated with strategic goals and operational activities[155]. - The internal control audit report for 2022 received a standard unqualified opinion, indicating effective internal controls[158]. - The company has not reported any major discrepancies in governance compared to regulatory requirements[110]. - The company has not engaged in any related party transactions that would affect its independence[110]. Corporate Governance - The company held its first extraordinary general meeting of 2023 on March 30, focusing on the election of the fifth board of directors and supervisory board[112]. - The total pre-tax remuneration for the president during the reporting period was CNY 1.1882 million[114]. - The company has conducted training for directors and senior management to enhance compliance awareness and fulfill their responsibilities[109]. - The board of directors and supervisory board have been re-elected, ensuring continuity in governance[112]. - The company has established a performance assessment system for senior management compensation based on annual evaluations[126]. - The company held 8 board meetings during the year, with 1 in-person meeting and 8 conducted via communication methods[133]. - The company has a total of 463 employees, with 325 in technical roles, 73 in sales, 28 in finance, and 37 in administration[144]. - The company’s board committees include an Audit Committee, Nomination Committee, Compensation and Assessment Committee, and Strategic Committee, with various members assigned to each[135]. Market Position and Competitive Landscape - The company is transitioning from a traditional system integrator to an intelligent platform operator for urban safety, guided by its "Gathering Safety Network" strategy[57]. - The company has established a collaborative ecosystem with over 80 partners to enhance its capabilities in gas safety, general enterprise safety, and police safety[61]. - The company has successfully signed projects in gas safety, including those in Huludao, Shijiazhuang, and Tianjin High-tech Zone, enhancing its market presence[70]. - The company is actively participating in the development of digital infrastructure and safety governance, aligning with national policies on digital economy and safety production[50]. - The company is leveraging its partnerships with major state-owned enterprises to enhance its market reach and service offerings in the digitalization of safety[54]. Employee Engagement and Welfare - The company’s salary adjustment mechanism considers annual value creation and market benchmarking, ensuring fairness and alignment with performance contributions[146]. - The company’s training programs include digital transformation training for management and new employee onboarding initiatives to enhance cultural integration[147]. - The company’s welfare benefits include various subsidies, health check-ups, and special welfare measures tailored to employee needs[146]. - The company has established a performance evaluation and incentive mechanism for senior management, linking compensation to performance outcomes[154]. Sustainability and Social Responsibility - The company did not implement any carbon reduction measures during the reporting period, reflecting a potential area for improvement in sustainability practices[161]. - The company has not disclosed a separate social responsibility report or ESG report, indicating a potential gap in transparency regarding social responsibility efforts[162].