ABT Networks(SH:688168)2022-04-28 16:00Profit Distribution and Financial Performance - The profit distribution plan for 2021 includes a cash dividend of 2.00 RMB per 10 shares, totaling approximately 10,258,800.00 RMB (including tax) to be distributed to all shareholders[6]. - The company plans to increase its capital reserve by issuing 4 additional shares for every 10 shares held by shareholders, pending approval at the 2021 annual general meeting[6]. - The company's operating revenue for 2021 was CNY 391,422,906.70, representing a 48.92% increase compared to CNY 262,835,660.84 in 2020[23]. - The net profit attributable to shareholders of the listed company was CNY 72,193,715.73, a 62.33% increase from CNY 44,473,425.09 in the previous year[23]. - The net profit after deducting non-recurring gains and losses was CNY 63,021,157.95, which is a 96.33% increase compared to CNY 32,099,198.70 in 2020[23]. - The net cash flow from operating activities was CNY 19,139,522.35, up 53.37% from CNY 12,479,395.72 in 2020[23]. - As of the end of 2021, the total assets amounted to CNY 1,237,109,284.92, an 8.04% increase from CNY 1,145,058,888.71 at the end of 2020[23]. - The net assets attributable to shareholders of the listed company were CNY 1,090,607,196.02, reflecting a 6.92% increase from CNY 1,019,996,189.88 in 2020[23]. - Basic earnings per share rose to 1.41 CNY, a 62.07% increase compared to the previous year[24]. - The company's operating revenue increased by 48.92% year-on-year, while net profit attributable to shareholders grew by 62.33%[25]. Research and Development - Research and development expenses accounted for 23.91% of operating revenue, with a total investment of 93.58 million CNY, up 47.83% year-on-year[35]. - The company launched new products, including the "Shadow" network node resource management platform and the "Yuan Trace" data asset monitoring platform, expanding its product matrix[35]. - The company holds 103 invention patents and 179 software copyrights, with an additional 312 invention patents pending[35]. - The company is focused on expanding its market presence and enhancing its product offerings through new technologies and innovations[16]. - The company plans to invest in research and development to drive innovation in its product lines[16]. - The company has made significant advancements in next-generation network security protection, achieving capabilities for 5G and NB-IoT networks, which allows for domestic product substitution[64]. - The company has established a comprehensive data asset discovery and classification capability, enhancing its data privacy protection measures[67]. - The company has a total of 496 intellectual property applications, with 287 granted, indicating a strong focus on innovation and technology development[58]. Market and Competitive Position - The company is pursuing market expansion through the development of high-performance security solutions that meet compliance requirements and address emerging threats[66]. - The company has developed a network security product line based on the ABT SPOS platform, including security gateways, security management, and security services[37]. - The company has a strong customer base, including industry leaders like Huawei and China Telecom, which supports its product development and innovation efforts[73]. - The cybersecurity market in China is experiencing significant growth due to increasing demand for data security and government policies, with a low industry concentration indicating potential for consolidation[49][52]. - The company aims to strengthen its R&D investments in cybersecurity technologies to lead advancements in the industry amid the accelerating digital economy and cloud trends[54]. - The company has established a competitive advantage in NSPM (Network Security Policy Management) and aims to further increase R&D investment to maintain its market lead and explore relatively untapped markets[116]. Governance and Compliance - The company has established a comprehensive internal control system and a long-term internal control supervision mechanism for its subsidiaries, ensuring normal operations[162]. - The internal control audit report received a standard unqualified opinion, indicating effective internal control measures[163]. - The company has implemented a performance management process for senior management, linking their compensation to the achievement of strategic goals[161]. - The company actively engages in ESG initiatives and has established a modern corporate governance structure, ensuring effective operation of the shareholders' meeting, board of directors, supervisory board, and management[164]. - The company has a strategic focus on maintaining strong governance and oversight through its board and supervisory committee[130]. - The company has committed to fair and transparent governance practices, ensuring that institutional investors have a voice in corporate decisions[179]. Shareholder Relations and Transparency - The company emphasizes the importance of investor relations management, ensuring fair access to information for all shareholders through various communication channels[177]. - The company has provided opportunities for minority shareholders to express their opinions and protect their legal rights during the decision-making process[150]. - The company adheres to legal requirements for information disclosure, ensuring that all significant information is disclosed accurately and timely to protect minority investors' interests[177]. - The company will publicly explain any failure to stabilize the stock price and apologize to shareholders if it does not take the necessary measures[188]. - The company has established a commitment to not transfer any shares until the stock price stabilization measures are fully implemented[190]. - The company will bear compensation responsibilities if it causes losses to investors due to non-fulfillment of commitments[200]. Employee and Management Structure - The company had a total of 362 employees, with 143 in the parent company and 219 in major subsidiaries[145]. - The workforce includes 179 R&D personnel, 59 sales personnel, and 76 technical personnel, indicating a strong focus on research and development[145]. - The company has established a comprehensive compensation management system, including short-term, mid-term, and long-term incentive plans[146]. - The total remuneration for all directors, supervisors, and senior management personnel at the end of the reporting period amounted to RMB 870.09 million[135]. - The total remuneration for core technical personnel at the end of the reporting period was RMB 465.60 million[135]. - The company’s management team has extensive experience in the technology sector, with key members having held positions in major companies such as Dell and Huawei[125]. Future Outlook - Future outlook indicates a commitment to continuous improvement in operational efficiency and customer satisfaction[16]. - The company provided guidance for the next fiscal year, projecting revenue growth of 25% to $1.875 billion[195]. - The company plans to expand its market presence and enhance its product technology development in the upcoming year[125]. - The company aims to improve user data analytics to enhance customer engagement and service delivery[125]. - The company plans to enhance investment in product and R&D departments to keep pace with industry trends and mitigate risks associated with technological advancements[79].