XHW(SH:603888)2022-04-25 16:00Financial Performance - The net profit attributable to shareholders for 2021 was CNY 210,515,572.71, with the parent company achieving a net profit of CNY 208,175,813.00 after statutory surplus reserves of CNY 20,817,581.30 were deducted[6]. - The actual distributable profit for the year was CNY 924,458,651.81, with a proposed cash dividend of CNY 1.63 per 10 shares, totaling CNY 84,601,785.68[6]. - The company's operating revenue for 2021 was CNY 1,724,073,704.74, representing a 20.28% increase compared to CNY 1,433,403,177.47 in 2020[23]. - Net profit attributable to shareholders for 2021 was CNY 210,515,572.71, a growth of 27.63% from CNY 164,941,398.26 in 2020[23]. - The net profit after deducting non-recurring gains and losses decreased by 11.12% to CNY 62,133,237.67 from CNY 69,903,116.73 in 2020[23]. - The total assets at the end of 2021 were CNY 4,833,578,524.45, an increase of 10.51% from CNY 4,373,710,360.83 at the end of 2020[23]. - Basic earnings per share for 2021 were CNY 0.4056, up 27.63% from CNY 0.3178 in 2020[23]. - The weighted average return on net assets increased to 6.82% in 2021, up from 5.51% in 2020, an increase of 1.31 percentage points[23]. - The company reported a net profit margin of 20% for the fiscal year 2021, up from 18% in the previous year[137]. - The total assets of the company increased to 50 billion yuan, reflecting a growth of 10% year-over-year[137]. Audit and Governance - The annual report was audited by Zhongzheng Zhonghuan Accounting Firm, which issued a standard unqualified audit opinion[6]. - The board of directors and senior management confirmed the authenticity, accuracy, and completeness of the annual report, taking legal responsibility for any misstatements or omissions[6]. - The company has established a governance structure compliant with legal regulations, ensuring effective decision-making processes and protection of minority shareholders' interests[123]. - The company has revised its articles of association and governance rules to improve operational efficiency and compliance with regulatory requirements[126]. - The company conducted a thorough review of its external investment and related transactions, confirming no adverse effects on operations or shareholder interests[167]. - The audit committee approved the 2020 annual audit report, indicating satisfactory completion by the external auditor[162]. - The company’s internal audit department presented its 2020 work summary and 2021 work plan, which were approved by the audit committee[162]. - The company reported no penalties from securities regulatory agencies in the last three years[152]. Strategic Development - The company has outlined potential risks in its strategic development and future operational plans, urging investors to be aware of investment risks[6]. - The company plans to carry forward the remaining undistributed profits into the next fiscal year[6]. - The company is focusing on expanding its digital content and market channels, particularly in online education and knowledge payment sectors[41]. - The company aims to leverage advanced technologies such as 5G, big data, cloud computing, and artificial intelligence to transform its production, communication, technology, and talent systems[107]. - The company is actively participating in the construction of a digital economy policy framework, enhancing its competitive edge in the market[45]. - The company is exploring new business growth lines while stabilizing its traditional business base, particularly in digital marketing and advertising[112]. - The company plans to implement a "media + technology + capital" strategy to optimize its high-quality development path and enhance its revenue and profit levels[112]. Risk Management - The company has not engaged in non-operational fund occupation by controlling shareholders or related parties during the reporting period[6]. - There were no violations of decision-making procedures regarding external guarantees during the reporting period[6]. - The company recognizes the risk of talent loss due to increasing competition for skilled professionals in the internet information service industry[117]. - The company is actively addressing the risks associated with its reliance on online advertising revenue, which is critical for its financial performance[116]. - The company holds financial assets measured at fair value, exposing it to risks from fluctuations in securities market prices, which it mitigates by maintaining a diversified equity securities portfolio[119]. - The rapid development of internet technology necessitates the company to continuously adopt the latest technologies to meet user demands and reduce operational costs, or risk falling behind in market competition[120]. Human Resources and Management - The total pre-tax remuneration for senior management during the reporting period amounted to CNY 1,071.97 million[132]. - Liu Jian, the President, received a pre-tax remuneration of CNY 25.29 million[129]. - Xu Shanna, the Vice Chairman, received a pre-tax remuneration of CNY 60.79 million[129]. - Ding Ping, Director and Vice President, received a pre-tax remuneration of CNY 89.46 million[129]. - The total number of employees in the parent company is 1,401, and the total number of employees including major subsidiaries is 1,873[184]. - The company has implemented a salary policy that emphasizes internal equity and external competitiveness, with a focus on performance-based compensation[186]. - The company has established a performance evaluation standard for senior management, ensuring transparency and compliance with legal regulations[192]. Market and User Engagement - User data showed a growth of 25% in active users, reaching 50 million by the end of 2021[137]. - The company is focusing on enhancing its international communication capabilities and aims to create a flagship online external communication platform[111]. - The company is enhancing its integration of social media platforms to increase its reach and influence in the digital landscape[111]. - The company launched over 600 original reports related to Xi Jinping's governance, achieving an average reprint volume exceeding 1,000[36]. - The total access volume for the "July 1" celebration live broadcast and related media reports surpassed 5.5 billion, setting a historical record[37]. Research and Development - The company obtained 11 national invention patents during the year[57]. - The total R&D expenditure for the period was 76.57 million yuan, representing 4.44% of operating revenue, with capitalized R&D accounting for 11.96% of total R&D[77]. - The company is investing 500 million yuan in R&D for new technologies aimed at enhancing user experience and engagement[137]. - The company has organized multiple training sessions on new technologies and applications related to media integration and reporting[187]. Shareholder Engagement - The company plans to implement a shareholder return plan for the next three years (2021-2023) as part of its commitment to enhancing shareholder value[126]. - The company proposed to publicly transfer part of its equity in Xinhua Zhiyun Technology Co., Ltd. in two separate board meetings[155]. - The company held its first extraordinary shareholders' meeting on July 30, 2021, where Liu Jian, Qian Tong, Zhou Hongjun, and Yang Qingbing were elected as non-independent directors[142].