ABT Networks(SH:688168)2023-06-06 16:00Financial Performance - The company reported no cash dividends, stock bonuses, or capital reserve transfers for the 2022 fiscal year, with undistributed profits carried forward to future years [5]. - The company has not achieved profitability since its listing, indicating ongoing investment in growth and development [4]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the fiscal year, representing a 20% growth compared to the previous year [21]. - The company's operating revenue for 2022 was ¥456,441,650, representing a year-on-year increase of 16.61% compared to ¥391,422,906.70 in 2021 [22]. - The net profit attributable to shareholders of the listed company decreased by 111.72% to -¥8,462,038.70 in 2022 from ¥72,193,715.73 in 2021 [22]. - The basic earnings per share for 2022 was -¥0.12, a decline of 111.88% from ¥1.01 in 2021 [23]. - The net cash flow from operating activities decreased by 981.05% to -¥168,627,883 in 2022, compared to ¥19,139,522.40 in 2021 [26]. - The gross margin improved to 45%, up from 40% in the previous year, reflecting better cost management [21]. - The company achieved a total revenue of RMB 32,349.85 million from security gateways, representing a year-on-year growth of 4.87% [36]. - The company’s security service revenue reached RMB 3,112.54 million, reflecting a year-on-year growth of 44.60% [36]. Research and Development - The company is investing 100 million RMB in R&D for advanced security technologies, focusing on AI-driven threat detection [21]. - Research and development expenses accounted for 22.91% of operating revenue in 2022, down from 23.91% in 2021 [23]. - The company invested RMB 10,455.68 million in R&D, an increase of 11.73% compared to the previous year, accounting for nearly 23% of total revenue [38]. - The company has a total of 343 R&D and technical personnel, making up about 65% of the total workforce [38]. - The company applied for 101 new patents and obtained 70 new invention patents in 2022, bringing the total number of patents to 178, including 173 invention patents [63]. - The company has established a security laboratory and a target environment for attack and defense research, aimed at enhancing internal security capabilities and response to major security incidents [69]. Market Expansion and Strategy - The company provided guidance for the next fiscal year, projecting a revenue growth of 25%, aiming for 1.875 billion RMB [21]. - Market expansion plans include entering three new international markets, targeting a 30% increase in overseas revenue [21]. - The company is considering strategic acquisitions to enhance its product offerings, with a budget of $100 million allocated for potential deals [127]. - A new marketing strategy is set to increase brand awareness by 30% over the next six months [127]. - The company is focusing on expanding its market presence in various sectors, including finance, energy, and government, with significant deployments in key industry clients [37]. Corporate Governance and Compliance - The company has a standard unqualified audit report from Da Xin Accounting Firm, ensuring the accuracy and completeness of the financial statements [5]. - The company has not violated decision-making procedures in providing guarantees to external parties [7]. - The company has not engaged in any non-operational fund occupation by controlling shareholders or related parties [7]. - The company has established a robust internal control system to ensure legal and compliant operations [119]. - The company emphasizes the importance of compliance with national policies and regulations, which are expected to evolve further during the "14th Five-Year Plan" period, particularly in areas like data security and critical infrastructure protection [52]. Risk Management - The company has outlined potential risks in its management discussion and analysis section, emphasizing the uncertainties in future plans and strategies [6]. - The company experienced a significant increase in sales expenses due to the rapid growth in the number of sales personnel [25]. - The company faced increased credit impairment losses due to cautious assessments of accounts receivable amid changing economic conditions [76]. - The company is actively responding to supply chain risks by improving inventory management and communication with suppliers [79]. Employee and Shareholder Relations - The company has established a comprehensive compensation management system, including short-term, mid-term, and long-term incentive plans [149]. - The total compensation for all directors, supervisors, and senior management amounted to 543.67 million [135]. - The company emphasizes the importance of performance assessment in determining compensation for its executives [134]. - The company has implemented a training system that includes new employee training, professional training, leadership development, and executive training [150]. - The company has committed to timely and sufficient payment of social insurance and housing provident fund for employees to avoid penalties [197]. Social Responsibility and ESG Initiatives - The company actively engages in ESG initiatives, focusing on employee development and investor rights protection [165]. - In 2022, the company donated 100,000 yuan to the Beijing Overseas Chinese Charity Foundation for COVID-19 prevention efforts [171]. - The company promotes energy conservation and low-carbon practices among employees, although no specific environmental protection mechanisms were established [168]. Future Outlook - The company provided a future outlook, projecting a revenue growth of 10% for the next fiscal year [127]. - Ongoing projects are expected to yield new products that align with market demands and customer needs [126]. - The company aims to improve operational efficiency, targeting a 5% reduction in costs by the end of the fiscal year [127].