SNC Net(SH:605398)2022-04-12 16:00Financial Performance - The net profit attributable to shareholders for 2021 was RMB 69,254,724.42, with the parent company achieving a net profit of RMB 30,372,615.73[4]. - The company's operating revenue for 2021 was CNY 591,436,745.50, representing a 5.43% increase compared to CNY 560,976,966.38 in 2020[20]. - The net profit attributable to shareholders decreased by 36.16% to CNY 69,254,724.42 from CNY 108,489,238.64 in the previous year[21]. - The net profit after deducting non-recurring gains and losses decreased by 43.64% to CNY 55,909,512.43 in 2021 from CNY 99,205,983.17 in 2020[21]. - Basic and diluted earnings per share fell by 51.03% to CNY 1.19 in 2021, down from CNY 2.43 in 2020[21]. - The cash flow from operating activities for 2021 was CNY 78,932,305.36, a decrease of 13.78% from CNY 91,551,896.46 in 2020[20]. - The company reported a total of CNY 10,732,010.79 in government subsidies for 2021, compared to CNY 10,574,600.14 in 2020[24]. - The weighted average return on net assets decreased by 21.92 percentage points to 7.57% in 2021 from 29.49% in 2020[21]. Profit Distribution and Capital Increase - The company plans to distribute a cash dividend of RMB 2.50 per 10 shares, totaling approximately RMB 14,874,552.00[4]. - A capital reserve increase is proposed, with a plan to issue 4 new shares for every 10 shares held, resulting in a total share capital increase to 83,297,492 shares[5]. - The statutory surplus reserve of RMB 3,037,261.57 was allocated, representing 10% of the net profit for the year[4]. - The company emphasizes the importance of future business development and funding needs in its profit distribution strategy[4]. - The proposed profit distribution and capital increase plan are subject to approval at the 2021 annual general meeting of shareholders[124]. Research and Development - R&D expenses totaled RMB 86,969,200, representing 14.70% of operating revenue, an increase of 5.01 percentage points year-on-year[35]. - The company plans to enhance its R&D investment and continuously update its technology and products to strengthen its industry competitiveness and market share[42]. - The company has established a comprehensive product system for intelligent operation and maintenance, supporting critical business systems for clients[42]. - The company has developed a full-stack database operation and maintenance capability, covering both mainstream commercial and open-source database products[44]. - Research and development expenses increased by 18%, totaling 150 million RMB, focusing on AI and machine learning technologies[101]. Market and Client Base - The company served 189 clients across various sectors, including telecommunications, finance, and government, indicating a diversified client base[37]. - The company is focused on digital transformation, aligning with national strategies to enhance the digital economy, which is projected to account for 10% of GDP by 2025[40]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region by 2023[101]. - The top five customers accounted for 80.45% of the total annual sales, with China Mobile Communications Co., Ltd. alone contributing 65.08%[58][59]. Governance and Management - The company’s legal representative is Sun Zhengyang, who was elected as the chairman of the board on February 20, 2022[14]. - The total pre-tax remuneration for directors and senior management during the reporting period amounts to 8.279128 million yuan[98]. - The company has a diverse board with members holding positions in various sectors, enhancing its strategic oversight capabilities[105]. - The company has established a clear process for determining the remuneration of its board members, aligning it with industry standards and company performance[106]. - The company held multiple board meetings throughout 2021, with a total of 10 meetings conducted, 8 via communication and 2 combining on-site and communication methods[110]. Risks and Compliance - The report includes a risk statement regarding forward-looking statements, cautioning investors about potential risks[6]. - The company faces risks related to rapid technological changes, market expansion uncertainties, and potential talent retention challenges, which could impact its competitive edge[86]. - The company has not faced any administrative penalties related to environmental issues during the reporting period, adhering to national environmental laws and regulations[131]. - The company has implemented a performance evaluation mechanism for senior management, which includes a basic salary, year-end performance pay, and project bonuses based on industry conditions and operational performance[127]. Shareholder Commitments - The actual controllers of the company have committed not to transfer or entrust the management of their shares for 36 months from the date of the IPO[135]. - If the share price falls below the issue price for 20 consecutive trading days within 6 months post-IPO, the lock-up period will automatically extend by at least 6 months[142]. - Shareholders have agreed to comply with relevant laws and regulations regarding share lock-up commitments[137]. - The company will ensure that related party transactions are conducted based on fair pricing principles and legal agreements[147]. Audit and Internal Control - The audit report issued by Lixin Certified Public Accountants was a standard unqualified opinion[7]. - The internal control system was established in compliance with legal regulations, ensuring effective management and protection of shareholder interests[128]. - The company received a standard unqualified opinion in the internal control audit report for the fiscal year 2021, confirming the effectiveness of its internal control[129]. Assets and Liabilities - The total assets rose by 89.39% to CNY 1,255,499,510.18 at the end of 2021, up from CNY 662,921,377.11 at the end of 2020[20]. - The company's cash and cash equivalents increased by 151.14% to ¥897,431,534.96, primarily due to the funds raised from the initial public offering[67]. - The company has no overdue guarantees and no contingent liabilities related to guarantees[182]. - The company has not reported any major asset or equity acquisitions or disposals during the reporting period[179].