Primeton(SH:688118)2022-04-20 16:00Financial Performance - The company's operating revenue for 2021 was approximately CNY 436.43 million, representing a year-on-year increase of 20.99% compared to CNY 360.72 million in 2020[21]. - The net profit attributable to shareholders for 2021 was approximately CNY 39.13 million, an increase of 24.74% from CNY 31.37 million in 2020[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately CNY 14.65 million, showing an 83.01% increase from CNY 8.01 million in 2020[21]. - The net cash flow from operating activities for 2021 was approximately CNY 66.79 million, a significant increase of 262.08% compared to CNY 18.45 million in 2020[21]. - The basic earnings per share for 2021 was CNY 0.416, reflecting a 26.44% increase from CNY 0.329 in 2020[22]. - The total assets at the end of 2021 were approximately CNY 1.08 billion, a slight decrease of 0.92% from CNY 1.09 billion at the end of 2020[21]. - The weighted average return on net assets for 2021 was 4.09%, an increase of 0.86 percentage points from 3.23% in 2020[22]. - The total non-recurring gains and losses for 2021 amounted to 244.72 million yuan, compared to 233.58 million yuan in 2020[28]. Research and Development - The R&D expenditure as a percentage of operating revenue increased to 17.23% in 2021 from 15.73% in 2020, indicating a focus on innovation[22]. - The company's R&D expenses for 2021 were 75.20 million yuan, reflecting a growth of 32.51% year-on-year[33]. - Continuous R&D investment has led to the acquisition of over 40 key core technologies and multiple patents, including 29 authorized invention patents and 218 software copyright registrations[68]. - The company has developed a comprehensive middleware application development platform, recognized by over a thousand large and medium-sized users across various industries, including finance, telecommunications, and energy[61]. - The company is committed to building a component-based technology platform and systematic R&D capabilities to support clients' digital transformation[43]. Corporate Governance - The company has established a modern corporate governance structure, including specialized committees for strategy, audit, nomination, and compensation[196]. - The internal control audit report for 2021 received a standard unqualified opinion, indicating effective internal controls[195]. - The company has established a compliance and internal control institution, enhancing its governance structure to ensure accurate and timely information disclosure[144]. - The company emphasizes investor rights protection through various communication channels, ensuring transparency and engagement[196]. - The company held multiple board meetings to discuss and approve various proposals, including the 2020 annual financial budget report and the 2021 first quarter report[162]. Market Strategy and Expansion - The company plans to continue leveraging its industry advantages to explore digital transformation opportunities for key clients and expand its market presence[23]. - The company aims to strengthen its core technology barriers and maintain a competitive advantage in foundational software[39]. - The company is focusing on expanding its market presence in sectors such as finance, telecommunications, and manufacturing through new product development and strategic partnerships[7]. - The company is positioned to benefit from the domestic market's push for localization and digital transformation, creating significant market opportunities[55]. - The company plans to distribute cash dividends of RMB 5.00 per 10 shares, totaling approximately RMB 45.91 million, which represents 117.33% of the net profit attributable to shareholders for 2021[182]. Risk Management - The company has outlined various operational risks and corresponding mitigation measures in the report[4]. - The overall economic environment remains uncertain, with potential impacts from macroeconomic policies and the ongoing COVID-19 pandemic[103]. - The company faces risks related to maintaining its core competitiveness in a technology-intensive industry, necessitating ongoing investment in R&D and talent acquisition[98]. Employee and Talent Management - The company is committed to building a talent reserve and management system through stock incentive policies and training programs, focusing on young, professional, and career-oriented personnel[141]. - The total number of employees in the parent company and major subsidiaries is 1,452, with 1,040 being technical personnel and 238 in research and development[173]. - Total compensation for R&D personnel reached ¥62,909,690.31, a 30.5% increase from ¥48,155,449.32 in the prior period[88]. Dividend Policy - The company has established a cash dividend policy, stating that it will distribute no less than 10% of the annual distributable profit in cash if conditions are met[177]. - The cash dividend policy is designed to protect the rights of minority investors, with a minimum distribution ratio of 80% for mature companies without major capital expenditures[178]. - The company has a clear and compliant cash dividend decision-making process, ensuring transparency and protection for minority shareholders[179]. Technological Innovation - The company is focusing on the development of middleware, intelligent data platforms, and digital applications to enhance its core competitiveness[33]. - The trend towards low-code development is gaining traction, driven by the need for cost reduction and efficiency in digital application development[63]. - The company is developing a cloud-native digital technology platform to support financial enterprises in deepening their digital transformation efforts[81].