Zhejiang Heda Technology (SH:688296)2022-04-13 16:00Financial Performance - The company's operating revenue for 2021 was ¥507,284,444.23, representing a 39.61% increase compared to ¥363,362,110.12 in 2020[20]. - The net profit attributable to shareholders for 2021 was ¥100,218,219.73, a 32.41% increase from ¥75,687,972.25 in 2020[20]. - The net profit after deducting non-recurring gains and losses was ¥81,967,115.79, which is a 14.10% increase compared to ¥71,836,151.39 in 2020[20]. - The total assets at the end of 2021 were ¥951,970,864.65, a 75.08% increase from ¥543,729,270.15 at the end of 2020[20]. - The net assets attributable to shareholders increased by 108.44% to ¥722,927,228.21 from ¥346,832,845.06 at the end of 2020[20]. - The company's annual revenue reached 50,728.44 million CNY, a 39.5% increase from 36,336.21 million CNY in the previous year, with a comprehensive gross margin of 44.78%, down from 47.97%[33]. - The company achieved a total revenue of 1,200 million, with a net profit of 702.18 million, indicating a strong performance in the fiscal year[103]. - The company reported a significant increase in revenue, achieving a total of $1.2 billion for the fiscal year, representing a 15% year-over-year growth[195]. Cash Flow and Investments - The net cash flow from operating activities decreased by 91.51% to ¥4,452,392.72 from ¥52,424,179.03 in 2020[20]. - The company's financing activities generated a net cash flow of CNY 255.25 million, a substantial increase of 1,351.17% due to funds raised from the initial public offering[135]. - Cash and cash equivalents at the end of the period increased by 101.56% to ¥461,903,151.75, attributed to funds received from the IPO[156]. - Investment cash flow decreased slightly by 0.26% year-on-year to ¥680,214,772.35, with net cash flow from investment activities dropping by 297.46% to -¥25,208,919.61[154]. Research and Development - The company's R&D investment as a percentage of operating revenue increased to 12.48%, up from 10.71% in the previous year[21]. - R&D expenses totaled 63.32 million CNY, an increase of 62.66% compared to the previous year, reflecting the company's commitment to enhancing its R&D capabilities[33]. - The company has developed core technologies for water supply network leakage control, including machine learning-based algorithms for anomaly detection and rapid localization[115]. - The company has developed a comprehensive leakage control management system and early warning platform, integrating water volume, pressure monitoring, and case analysis[92]. Market Expansion and Strategy - The company is focused on expanding its market presence and enhancing its product offerings through new technologies and innovations[15]. - The company aims to reduce the national urban public water supply network leakage rate to below 9% by 2025, as per the guidelines from the Ministry of Housing and Urban-Rural Development[65]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by the end of the next fiscal year[195]. - The sales strategy will leverage a dual approach of direct sales and channel partnerships to rapidly expand market presence, particularly in cities with pilot projects for public water supply leak control[177]. Corporate Governance - The board of directors has confirmed that all members attended the board meeting, ensuring governance compliance[5]. - The company has not indicated any special arrangements for corporate governance[8]. - The supervisory board, comprising 3 members, effectively monitors the company's financial practices and compliance with legal standards[185]. - The company emphasizes investor relations through various communication channels to enhance engagement and transparency[189]. Risk Management - The company has disclosed potential risks in the report, advising investors to be cautious regarding future plans and strategies[7]. - The company is monitoring macroeconomic conditions and the impact of COVID-19 on operations, which could affect project execution and overall performance[131]. - The company plans to strengthen internal control management to improve risk prevention capabilities, ensuring compliance with legal and regulatory requirements[178]. Technology and Innovation - The company is focusing on digital transformation in the water industry, aligning with national goals for leakage control and energy conservation, and is developing IoT products and SaaS platforms[36]. - The company has developed a water IoT platform that enables reliable, high-concurrency data communication between devices, supporting massive data parsing, calculation, and storage[41]. - The company has successfully developed a smart water management system that integrates IoT technology for real-time monitoring and management of water supply systems, significantly improving operational efficiency[107]. Employee and Talent Management - The company has increased its workforce to 764 employees, with 558 in R&D and technical roles, representing 73.04% of total staff, emphasizing its focus on talent acquisition[34]. - The average salary of R&D personnel increased to 19.3 million RMB, up from 16.29 million RMB in the previous year, indicating a commitment to attracting and retaining talent[112]. - The number of R&D personnel increased to 291, representing 38.09% of the total workforce, up from 31.76% in the previous year[112]. Awards and Recognition - The company received several awards, including the first prize in the 2021 Huaxia Construction Science and Technology Award for its project on systematic control of water supply network leakage[35]. - The company has been recognized as a key software enterprise by multiple national and provincial authorities, reflecting its strong industry position and competitive edge[84]. Shareholder Information - The total number of shares held by the chairman and general manager, Guo Jun, remained unchanged at 38,252,091 shares, with a pre-tax compensation of 1,263,500 CNY[191]. - The total number of shares held by the company’s directors and supervisors at the end of the reporting period was 39,478,466 shares, with a total pre-tax compensation of 9,586,500 CNY[192]. - The company has maintained a stable shareholding structure with no significant changes in the number of shares held by key personnel during the reporting period[191].