Foxit Software(SH:688095)2022-04-27 16:00Financial Performance - The net profit attributable to shareholders for 2021 was ¥46,235,430.58, with a total distributable profit of ¥178,987,277.60[6]. - The proposed cash dividend is ¥8 per 10 shares, totaling ¥36,227,169.60, which accounts for 78.35% of the net profit attributable to shareholders[6]. - The company's operating revenue for 2021 was CNY 541,121,312.10, representing a year-on-year increase of 15.48% compared to CNY 468,603,962.33 in 2020[24]. - The net profit attributable to shareholders for 2021 was CNY 46,235,430.58, a decrease of 59.90% from CNY 115,289,339.01 in 2020[24]. - The basic earnings per share for 2021 was CNY 0.9639, down 67.30% from CNY 2.9478 in 2020[25]. - The cash flow from operating activities for 2021 was CNY 51,578,260.52, a decline of 62.88% compared to CNY 138,937,973.82 in 2020[24]. - The company reported a net loss of CNY 22,193,645.70 after deducting non-recurring gains and losses in 2021, compared to a profit of CNY 84,782,476.28 in 2020, marking a decrease of 126.18%[24]. - The total assets at the end of 2021 were CNY 3,173,947,605.77, a slight increase of 0.06% from CNY 3,171,887,868.43 at the end of 2020[24]. - The net assets attributable to shareholders decreased by 5.25% to CNY 2,843,110,187.76 at the end of 2021 from CNY 3,000,779,488.76 at the end of 2020[24]. Share Repurchase and Dividend Policy - The company repurchased shares amounting to ¥200,053,164.48, representing 432.68% of the net profit attributable to shareholders for 2021[7]. - The company did not issue bonus shares or increase capital reserves during the reporting period[7]. - The cash dividend distribution policy requires a minimum of 10% of the distributable profit to be allocated as cash dividends if conditions are met[186]. - The company’s cash dividend policy stipulates that during the mature stage without significant capital expenditure, at least 80% of the profit distribution should be in cash[186]. - The company’s board of directors must consider the opinions of independent directors and public investors when making decisions on profit distribution[186]. Research and Development - The company's R&D expenditure accounted for 27.51% of operating revenue in 2021, an increase of 11.42% from 16.08% in the previous year[77]. - The company achieved total R&D investment of ¥148,839,893.73 in the current year, representing a 97.48% increase compared to ¥75,368,099.31 in the previous year[77]. - R&D expenses increased significantly from 5,665.32 million RMB in 2019 to 14,883.99 million RMB in 2021, representing 27.51% of total revenue in 2021[85]. - The company obtained 2 new patents and 19 software copyrights during the reporting period, bringing the total number of patents to 40 and software copyrights to 105[75]. - The company has developed key technologies such as PDF document parsing and rendering, cross-platform technology, and high compression technology, which significantly enhance user experience and operational efficiency[71]. Market Expansion and Strategy - The company plans to shift its marketing strategy towards direct sales following the completion of a brand promotion campaign that cost 40.32 million RMB[34]. - The company plans to expand its marketing efforts in emerging markets such as Brazil and India while continuing to invest in established markets like the US and Europe[95]. - The company aims to optimize personnel structure and strengthen performance assessments to improve per capita productivity and efficiency in 2022[145]. - The company will focus on result-oriented branding strategies to directly acquire customers and increase sales revenue[144]. - The company aims to leverage partnerships and collaborations to accelerate growth in new markets[156]. Operational Risks and Governance - The company has outlined various operational risks and corresponding mitigation measures in the report[4]. - The independent directors have expressed their opinions on the profit distribution plan, which requires approval from the shareholders' meeting[8]. - The company has not faced any non-operational fund occupation by controlling shareholders or related parties[10]. - The report includes a forward-looking statement risk declaration, indicating that future plans do not constitute a commitment to investors[9]. - The company faces risks related to potential infringement of intellectual property, which could lead to user loss and reduced competitiveness[93]. Employee and Management Structure - By the end of 2021, the company had over 800 employees, with more than 200 new hires, including over 120 in R&D roles[45]. - The company has a total of 801 employees, with 435 in the parent company and 366 in major subsidiaries[182]. - Among the employees, there are 276 sales personnel, 389 technical staff, 28 financial staff, and 108 administrative personnel[182]. - The educational background of employees includes 141 with master's degrees or above, 557 with bachelor's degrees, 94 with associate degrees, and 9 with high school or below[182]. - The company has established a competitive and scientifically reasonable compensation system, considering market salaries and company performance[183]. Product Development and Innovation - The company is transitioning its business model from permanent licenses to a subscription model, supported by the launch of integrated desktop and cloud versions of its core product, PDF Editor[40]. - The company successfully integrated electronic signature capabilities into PDF Editor after acquiring the U.S. electronic signature company AccountSight, enhancing its product offerings[39]. - The launch of the cloud version of PDF Editor marked a significant upgrade in the company's core product offerings[38]. - The company is developing multiple projects, including a controllable document collaboration platform and intelligent cloud services, all at an international leading level[80]. - The R&D team is focused on integrating artificial intelligence, machine learning, and cloud computing into document processing, enhancing product capabilities[159]. Awards and Recognition - The company received multiple awards in 2022, including being ranked 36th in G2's "2022 Global Best Sellers" list and having its core products recognized among the top office products[44]. - The company has received several important technology awards, including the 2021 Excellent Software Product Award for Foxit PDF Document Processing Suite V10.0[73]. - The company received the China Standard Innovation Contribution Award for its significant achievements in standardization work, highlighting its commitment to international standards[90]. Future Outlook - The company provided guidance for 2022, projecting revenue growth of 20% to 1.8 billion, driven by new product launches and market expansion efforts[158]. - Future outlook indicates a commitment to innovation and potential strategic acquisitions to bolster growth[156]. - The company aims to become a leader in the formulation of PDF standards, increasing investment in standard expansion and collaborating with partners to promote unified industry standards[143].