GOODWILL(SH:688246)2023-04-27 16:00Financial Performance - The company reported a net loss of RMB 26,941,913.58 as of December 31, 2022, indicating that it does not meet the conditions for profit distribution in 2022 [6]. - The company has not declared any statutory surplus reserves or discretionary reserves for the year 2022 due to negative retained earnings [6]. - The company has not achieved profitability since its listing, as confirmed in the report [4]. - The company has not proposed any profit distribution plan for the reporting period due to the negative profit situation [6]. - The company's operating revenue for 2022 was CNY 716,948,756.64, representing a year-on-year increase of 9.97% compared to CNY 651,940,181.42 in 2021 [22]. - The net profit attributable to shareholders for 2022 was CNY 68,024,427.15, a significant increase of 37.13% from CNY 49,606,571.09 in 2021 [22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 53,829,864.75, a 37.00% increase from CNY 39,292,000.77 in 2021 [22]. - The net cash flow from operating activities decreased by CNY 61,729,038.95, primarily due to delayed customer payments and increased upfront investments in medical information projects [25]. - The weighted average return on equity decreased to 3.84% in 2022, down 6.73 percentage points from 10.57% in 2021 [23]. - The company reported a revenue of CNY 716.95 million for the year, representing a year-on-year increase of 9.97% [129]. - The operating cost for the year was CNY 350.57 million, which is a 10.21% increase compared to the previous year [129]. - The gross profit margin for the medical information industry was 51.12%, a decrease of 0.18 percentage points from the previous year [133]. Research and Development - Research and development expenses accounted for 24.71% of operating revenue in 2022, an increase of 5.47 percentage points from 19.24% in 2021 [23]. - The company achieved a total R&D investment of ¥177,152,231.62, representing a 41.24% increase compared to the previous year [90]. - The company applied for 18 new invention patents and received authorization for 8 during the reporting period, bringing the total number of authorized domestic invention patents to 28 [87][88]. - The company has developed 5 new core technologies that enhance medical data interoperability and utilization, bringing the total to 29 core technologies [82]. - The company’s R&D expenses increased by 26.60% to CNY 158.79 million, reflecting a significant investment in technology development [130]. - The number of R&D personnel is 687, accounting for 34.96% of the total workforce, with an average salary of $192,352.53, up from $122,312.27 in the previous period [107]. - Total compensation for R&D personnel increased to $132,146,190.77 from $84,640,092.32 in the previous period [107]. Market Position and Strategy - The company has maintained its position as the market leader in electronic medical record (EMR) systems in China for eight consecutive years, according to IDC data from 2014 to 2021 [72]. - The company has over 1,550 hospital clients, including more than 500 top-tier hospitals, representing over 25% of all top-tier hospitals in the country [72]. - The company ranks second in the Chinese medical big data solution market as of 2021, according to IDC [74]. - The company aims to become a leading player in the domestic medical informationization industry, focusing on clinical informationization and data application [170]. - The company plans to expand its product line by developing specialized electronic medical record systems and hospital data centers, addressing the pain points of large tertiary hospitals in data integration and utilization [173]. - The company has established a comprehensive customer acquisition and service network, achieving significant market share in its target market centered around tertiary hospitals [174]. Risks and Challenges - The company has detailed potential risks in the "Management Discussion and Analysis" section, emphasizing the importance of investor awareness regarding investment risks [7]. - The company faces risks related to changes in tax incentives, which could increase tax liabilities and negatively impact operating performance [124]. - The company is exposed to uncertainties in order acquisition and revenue growth due to varying levels of information technology needs among healthcare institutions [125]. - The company is at risk of increased bad debt losses due to rising accounts receivable and poor collection capabilities [122]. - The company is exposed to competitive risks in the medical informationization market, with increasing competition from new entrants [118]. Governance and Management - The company held its second extraordinary general meeting on July 15, 2022, where all proposed resolutions were approved without any rejections [181]. - The company plans to implement a stock option and restricted stock incentive plan for 2022, which was also approved in the second extraordinary general meeting [181]. - The company’s governance structure remains stable, with no significant changes reported in the red-chip structure [183]. - The company has established a remuneration assessment system for directors and senior management [199]. - The company has appointed several key personnel in management positions to strengthen its operational capabilities [192]. Future Outlook - The company expects a revenue guidance of 1.8 billion for the next fiscal year, indicating a growth target of 20% [188]. - The company plans to continue upgrading its intelligent comprehensive electronic medical record system and specialized electronic medical records to meet the long-term demand for intelligent, specialized, and customized solutions [173]. - Future efforts will focus on enhancing customer service efficiency and experience, increasing customer repurchase rates and value [174]. - The company will leverage policy support to penetrate and transform secondary hospitals and grassroots medical institutions, facilitating the implementation of hierarchical medical care reforms [174].