Pinming Software(SH:688109)2023-04-25 16:00Financial Performance - The company's operating revenue for 2022 was CNY 435.08 million, a decrease of 8.50% compared to 2021[20]. - The net profit attributable to shareholders of the listed company was CNY -56.01 million, representing a decline of 189.36% year-on-year[20]. - The net cash flow from operating activities was CNY -144.25 million, significantly lower than the previous year's CNY -24.79 million[20]. - Basic and diluted earnings per share were both CNY -1.03, a decrease of 183.74% compared to 2021[21]. - The total assets at the end of 2022 were CNY 949.50 million, down 8.12% from the end of 2021[20]. - The weighted average return on net assets was -6.49%, a decrease of 14.93 percentage points compared to 2021[21]. - The company reported a non-recurring profit of CNY 21.97 million in 2022, compared to CNY 18.06 million in 2021[29]. - The company reported a revenue of 43,508.20 million RMB, a decrease of 8.50% year-on-year, primarily due to macroeconomic factors and fluctuations in the construction industry[102]. - The net profit attributable to shareholders was -5,601.08 million RMB, representing a decline of 189.36% compared to the previous year[102]. Share Capital and Dividend Policy - The company reported a profit distribution plan for 2022, which includes a capital reserve transfer of 4.5 shares for every 10 shares held, resulting in an increase of total shares from 54,374,000 to 78,842,300[5]. - As of March 31, 2023, the total share capital after the transfer will be 78,842,300 shares, with an additional 24,468,300 shares being distributed[5]. - The company has not distributed cash dividends or bonus shares for the 2022 fiscal year[5]. - The company plans to distribute cash dividends annually, with a minimum of 10% of the distributable profits for the year allocated for cash dividends[180]. - The company has a differentiated cash dividend policy based on its development stage and capital expenditure plans, with a minimum cash dividend ratio of 80% for mature companies without major expenditures[186]. Research and Development - The company's R&D investment accounted for 36.21% of operating revenue, an increase of 11.02 percentage points from the previous year[22]. - The company's R&D expenses totaled CNY 157.53 million, representing a year-on-year increase of 31.55%, with a notable increase of CNY 37.78 million[68]. - The average number of R&D personnel increased by 7.51% year-on-year, while the average monthly salary for R&D personnel rose by 20.26%[69]. - The company is focusing on core R&D projects such as the BIM 3D basic graphic platform and APaaS platform to enhance product competitiveness[68]. - The company added 5 invention patents, 1 utility model patent, 3 design patents, and 41 software copyrights during the reporting period, bringing the total to 15 invention patents, 17 utility model patents, 11 design patents, and 239 software copyrights[66]. Market and Operational Strategy - The company is focused on expanding its market presence and developing new technologies, particularly in the field of intelligent construction and building information modeling (BIM)[10]. - The company aims to promote enterprise-level digital transformation solutions in response to the industry's shift towards digitalization[35]. - The company has established six provincial marketing centers to enhance its national marketing strategy[34]. - The company is committed to enhancing its operational management and core competitiveness through information technology and innovation in the construction industry[10]. - The company aims to enhance its core competitiveness by focusing on product innovation and expanding its national marketing network over the next three to five years[139]. Challenges and Risks - The company has faced various operational risks, which are detailed in the report's "Management Discussion and Analysis" section[4]. - The decline in revenue was attributed to macroeconomic conditions and fluctuations in the construction industry, particularly affecting the building information software business[23]. - The company is facing a risk of declining gross margins due to increased competition and rising raw material costs in the digital construction sector[97]. - The company is heavily reliant on Autodesk's software for its product development, which poses a risk if international trade policies change[93]. - Approximately 40% of the company's revenue comes from the Zhejiang region, indicating a risk if market conditions in that area change significantly[94]. Corporate Governance and Management - The company has established a governance structure that ensures clear responsibilities and effective decision-making processes among its board and management[145]. - The total number of shares held by directors, supervisors, and senior management at the beginning of the year was 28,378,452, remaining unchanged by year-end[150]. - The company has a stable management structure with no significant changes in personnel during the reporting period[150]. - The company emphasizes a diversified compensation system based on individual capabilities to attract and retain talent[177]. - The company has implemented a performance evaluation mechanism for senior management, ensuring that compensation is aligned with performance standards[192]. Technological Innovation - The company has achieved breakthroughs in core technologies such as BIM algorithm engine technology and digital construction technology platform, leading to commercialized applications[47]. - The company has developed a big data platform that supports distributed computing and real-time data analysis, improving response speed for business system requirements[65]. - The company has launched several new products, including a VR education system for construction safety training and a construction site safety monitoring system[64]. - The company is committed to providing diversified products and services for the entire lifecycle of construction projects, enhancing efficiency and reducing costs for clients[140]. - The company integrates ESG principles into daily operations, focusing on sustainable development strategies that align with its mission of empowering the construction industry through technology[196]. Strategic Partnerships and Collaborations - The company has established strategic partnerships with dozens of central state-owned enterprises, facilitating the digitalization of over 1,800 engineering projects[41]. - The company has collaborated with over 40 universities to establish partnerships for talent cultivation, enhancing the practical skills of students in the construction industry[198]. - The company is exploring potential acquisitions to further strengthen its market position, with a budget of $200 million allocated for this purpose[155]. - The company announced a new strategic partnership, expected to drive an additional $100 million in revenue over the next year[155]. Future Outlook - The company provided guidance for Q4 2023, expecting revenue to be between $160 million and $170 million, indicating a growth of 7% to 13%[154]. - The company plans to enhance its marketing strategy, increasing the budget by 25% to drive user acquisition[154]. - The company aims to leverage national policies promoting digital transformation to enhance its market position and growth prospects[88]. - The company is committed to exploring product innovation and sustainable growth within the construction consulting model[73].