RocKontrol(SH:688051)2022-04-29 16:00Financial Performance - The company reported a net profit attributable to shareholders of -129,246,253.48 RMB for the year ended December 31, 2021[7]. - The actual distributable profit at year-end was 210,925,447.46 RMB, but due to negative profit, no cash dividends will be distributed[7]. - The company has not achieved profitability since its listing, indicating ongoing financial challenges[4]. - There are no plans for profit distribution or capital reserve conversion into share capital for the fiscal year 2021[7]. - The company's operating revenue for 2021 was ¥486,347,694.22, a decrease of 28.63% compared to ¥681,426,486.26 in 2020[20]. - The net profit attributable to shareholders was -¥129,246,253.48, representing a decline of 173.04% from ¥176,947,317.29 in the previous year[20]. - The basic earnings per share for 2021 was -¥1.67, a decrease of 168.44% compared to ¥2.44 in 2020[21]. - The company's total assets at the end of 2021 were ¥1,858,195,478.37, down 7.03% from ¥1,998,660,443.95 in 2020[20]. - The company's net assets attributable to shareholders decreased by 11.35% to ¥1,322,999,391.90 from ¥1,492,372,421.18 in 2020[20]. - The weighted average return on equity was -9.23%, a decrease of 23.94 percentage points from 14.71% in 2020[21]. - The company experienced a significant decline in net profit due to increased operational challenges and market conditions[20]. Operational Developments - The company made a down payment of 50,000,000 RMB for a property purchase, which was later canceled, resulting in the return of 20,000,000 RMB and 30,000,000 RMB in April 2022[4]. - Deloitte Huayong issued a qualified audit opinion due to insufficient evidence regarding the commercial substance of the property transaction[5]. - The management has outlined various operational risks and corresponding mitigation strategies in the report[4]. - The company is focused on maintaining stable operations and long-term shareholder interests despite financial losses[7]. - The company established ten operational service bases for smart environmental protection, covering major urban clusters in China[30]. - The company launched a low-carbon development center, focusing on the planning, design, and development of low-carbon products, including the "Carbon Chain" series[33]. - The company is enhancing its data processing capabilities through a "data factory" system, aiming to improve data perception and processing[36]. - The company is developing a comprehensive ecological environment big data platform to facilitate data sharing and integration across various sectors[40]. - The company is leveraging AI and advanced processing technologies to enhance environmental monitoring and decision-making capabilities[32]. - The company is transitioning towards a platform-based model, focusing on SaaS standard products for government and business services[33]. Market Position and Recognition - The company achieved significant recognition in the market, receiving commendations from various environmental protection departments, with notable improvements in air quality in multiple cities, including Haikou ranking first among 168 key cities in air quality[48]. - The company has over 180 government and enterprise clients in the environmental data service sector, with more than 30,000 users[39]. - The company has been recognized with multiple awards, including the first prize from the China Environmental Protection Federation for its cloud-based ecological environment big data security platform[91]. - The company was recognized as one of the "Top 500 Innovative Brands in China" in 2021 and included in the "Top 50 IoT Innovators" list[192]. - The company has been recognized as a national-level specialized and innovative "little giant" enterprise in 2020, highlighting its competitive position in the industry[136]. Research and Development - Research and development expenses accounted for 32.59% of operating revenue, an increase of 19.23 percentage points from 13.36% in 2020[21]. - Total R&D investment increased by 74.12% year-on-year, reaching CNY 15,850.59 million, with a significant rise in both expense and capitalized R&D investments[141]. - The company has increased its investment in technology R&D personnel to meet the growing market demand for IoT technology applications[140]. - The R&D team expanded by 148 personnel in 2021, driven by new product lines and projects in data security and AI[185]. - The company has established a comprehensive R&D system, focusing on IoT technology, big data, and AI, with continuous growth in R&D investment over the past three years[187]. Technology and Innovation - The company is focusing on integrating advanced technologies such as AI, blockchain, and edge computing to enhance its IoT services[77]. - The company has developed a series of carbon account products aimed at various sectors, including government and financial institutions, to facilitate carbon emission management[104]. - The company has developed four core AI technologies, including "Precision Traceability and Dynamic Control Technology," which was newly added during the reporting period[105]. - The company has developed an "Industrial IoT Data Collection Engine" that supports multiple protocols including Modbus, OPCUA, IEC61850, IEC104, and BACnet, enabling cross-industrial device data integration and real-time processing[133]. - The company has developed a digital emergency management platform to facilitate rapid dispatch and task assignment during emergencies, enhancing response capabilities[60]. Environmental Initiatives - The company aims to achieve carbon neutrality by creating a greenhouse gas emission inventory and implementing action plans to monitor and reduce emissions[61]. - The establishment of a comprehensive ecological environment monitoring system allows for real-time monitoring of air, water, and hazardous waste, improving pollution warning and emergency response capabilities[60]. - The company has developed a comprehensive environmental data analysis service, offering various reports including daily, weekly, monthly, and annual analyses[48]. - The company is committed to precision management of pollution sources, utilizing advanced data analytics to identify and address environmental issues[166]. - The carbon account application system was completed, enabling enterprises to upload relevant documents and automatically recognize and record data, enhancing efficiency in carbon emission reporting[174]. Challenges and Risks - The company faces risks from intensified market competition in the smart environmental protection field, which may affect market share and profit margins[198]. - The dual carbon business is currently in its early stages, with potential short-term impacts on overall group profits, but not expected to significantly affect the company in the long term[199]. - There is a risk of customer concentration, as the company has historically served a single power plant client in the smart desulfurization operation field[199]. - The EU Carbon Border Adjustment Mechanism (CBAM) will officially be implemented in 2023, introducing uncertainties in the international carbon market and pricing mechanisms[199].