Jiangsu Yunyong Electronics and Technology (SH:688060)2022-04-14 16:00Financial Performance - The company's operating revenue for 2021 was ¥309,179,200.51, representing a 17.58% increase compared to ¥262,948,290.38 in 2020[21]. - The net profit attributable to shareholders for 2021 was ¥52,499,647.08, a decrease of 29.23% from ¥74,182,757.05 in 2020[21]. - The net profit after deducting non-recurring gains and losses was ¥47,625,574.72, down 27.02% from ¥65,260,974.43 in 2020[21]. - The cash flow from operating activities showed a significant decline, with a net outflow of ¥82,639,043.36 in 2021 compared to a positive inflow of ¥6,823,741.40 in 2020[21]. - The total assets at the end of 2021 were ¥1,037,040,121.67, reflecting a 5.85% increase from ¥979,771,614.42 at the end of 2020[21]. - The net assets attributable to shareholders increased by 4.25% to ¥957,059,997.81 at the end of 2021 from ¥918,002,547.10 at the end of 2020[21]. - Basic earnings per share for 2021 were ¥0.8750, a decrease of 39.55% from ¥1.4475 in 2020[22]. - The diluted earnings per share also decreased by 39.77% to ¥0.8719 in 2021 from ¥1.4475 in 2020[22]. - The weighted average return on net assets dropped to 5.54% in 2021, down 8.46 percentage points from 14.00% in 2020[22]. Dividend Distribution - The company plans to distribute cash dividends of RMB 2.63 per 10 shares, totaling RMB 15,780,000, which represents 30.06% of the net profit attributable to shareholders for 2021[6]. - The profit distribution plan is subject to approval at the 2021 annual general meeting[6]. - The company has confirmed that the cash dividend policy aligns with the company's articles of association and shareholder resolutions[177]. - The company will maintain the cash dividend amount per share, adjusting the total distribution if there are changes in total share capital due to convertible bonds or other factors[176]. - The company has not proposed a cash profit distribution plan despite having positive distributable profits, indicating that it is not applicable[179]. Research and Development - Research and development expenses accounted for 16.28% of operating revenue, an increase of 8.08 percentage points compared to the previous year[23]. - The company launched 16 R&D projects during the reporting period, resulting in 5 new authorized invention patents and 7 new registered software copyrights[36]. - The company is focusing on industrial information security, aiming to explore new market demands and enhance product offerings in response to the "14th Five-Year Plan" for the power industry[33]. - The company is actively developing new technologies and expanding into new industry markets, particularly in energy, finance, and transportation sectors[34]. - The company has established a comprehensive "Cloud Surge Embedded Technology Development Platform," enhancing R&D efficiency and reliability[86]. - The number of R&D personnel increased by 77.78% to 112, reflecting the company's commitment to expanding its R&D team[70]. - The company has made significant progress in developing core technologies such as domestic platforms, edge computing, IoT, and information security[70]. Market Strategy - The company plans to focus on expanding its market presence and enhancing its product development strategies in the upcoming fiscal year[21]. - The company is focusing on expanding its market presence in industrial information security while actively exploring new industries and markets[42]. - The company aims to enhance its market position in the power industry and expand into sectors like transportation, petrochemicals, finance, and smart cities[136]. - The company is committed to continuous technological innovation and product iteration to meet the evolving industrial information security demands[55]. Operational Risks and Governance - The report highlights various operational risks and corresponding mitigation strategies, emphasizing the importance of risk management[4]. - The company has confirmed no non-operational fund occupation by controlling shareholders or related parties[8]. - The company has not violated decision-making procedures for external guarantees[8]. - The company has not disclosed any special arrangements for corporate governance[8]. - The company has established a comprehensive decision-making process for profit distribution, ensuring independent directors fulfill their responsibilities[178]. - The company has established internal control systems, with no significant deficiencies reported during the reporting period[191]. Environmental, Social, and Governance (ESG) - The company emphasizes the importance of ESG, integrating it into core business operations alongside R&D, production, and sales[193]. - The company has not been listed as a key pollutant discharge unit by environmental protection authorities during the reporting period[195]. - No administrative penalties were incurred due to environmental issues during the reporting period[197]. - The company actively participates in social responsibility initiatives, including employee care activities and contributions to pandemic relief efforts[194]. - The board of directors is committed to enhancing ESG practices and information disclosure for sustainable development[194]. Employee and Management Structure - The company reported a total of 278 employees, with 226 in the parent company and 52 in major subsidiaries[170]. - The employee composition includes 88 production personnel, 53 sales personnel, 112 technical personnel, 9 financial personnel, and 16 administrative personnel[170]. - The company has implemented a compensation management system that includes fixed salaries, performance bonuses, and stock incentives, ensuring fairness and competitiveness[171]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 4.8124 million RMB[155]. - The company has established a compensation and assessment committee to review and approve remuneration policies for directors and senior management[155]. Strategic Investments - The company made equity investments totaling ¥5,000,000.00 in Jieendi Electronics Technology Co., Ltd., reflecting its strategy to expand in the technology sector[128]. - The company completed the acquisition of a 70% stake in Beijing Youqi Technology Co., Ltd. for RMB 20 million, with the payment completed by June 30, 2021[132]. - The company established Beijing Caomu Xin Technology Co., Ltd. with a total investment of RMB 28 million, holding a 51% stake[132]. - The company plans to continue its investment strategy in technology firms and expand its digital transformation initiatives[126]. Product Development and Innovation - The company achieved a product development revenue of 2,200,000.00, with a net income of 1,202,608.88, reflecting a significant growth in the security card technology sector[75]. - The company has developed data security technologies based on a zero-trust architecture, emphasizing dynamic trust to prevent data leakage and limit internal lateral movement[62]. - The company is focusing on product upgrades and new project development to meet customer needs and industry trends[70]. - The company’s encryption and security isolation device is undergoing continuous technical iterations to maintain its leading position in the market[76]. Supply Chain and Cost Management - The increase in raw material costs, particularly chips, led to a 25.78% rise in direct material costs compared to the previous year[23]. - The company relies heavily on international chip suppliers, with over 70% of raw materials being critical components, exposing it to supply chain risks[96]. - The total operating cost increased by 30.72% due to rising prices of components[110]. - The company has established a procurement system to manage raw materials, including chips and memory, with a focus on maintaining adequate stock due to long procurement cycles[48].