Zhejiang Heda Technology (SH:688296)2022-07-15 16:00Financial Performance - The company's operating revenue for 2021 was CNY 507,284,444.23, representing a 39.61% increase compared to CNY 363,362,110.12 in 2020[20]. - The net profit attributable to shareholders of the listed company was CNY 100,218,219.73, up 32.41% from CNY 75,687,972.25 in the previous year[20]. - The net cash flow from operating activities decreased by 91.51% to CNY 4,452,392.72 from CNY 52,424,179.03 in 2020[20]. - The total assets at the end of 2021 were CNY 951,970,864.65, a 75.08% increase from CNY 543,729,270.15 at the end of 2020[20]. - The net assets attributable to shareholders of the listed company increased by 108.44% to CNY 722,927,228.21 from CNY 346,832,845.06 in 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 gross profit margin decreased by 3.19 percentage points compared to the previous year[137]. - The company achieved a revenue of 4,552.96 million with a gross profit margin of 60.00% for the year 2021[169]. Research and Development - The company's R&D expenditure accounted for 12.48% of operating revenue, up from 10.71% in the previous year[21]. - R&D expenses totaled 63.32 million CNY, representing a 62.66% increase compared to the previous year, reflecting the company's commitment to enhancing its R&D capabilities[33]. - The company holds 161 software copyrights and 60 authorized patents, including 8 invention patents, showcasing its strong R&D capabilities in the water industry[84]. - The company has developed 14 core technologies in the field of water informationization, including data mining, sound processing, and early warning algorithms[89]. - 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]. - The company is focusing on enhancing its R&D system for innovative technologies in water supply, drainage, and environmental management, aiming to develop new products and optimize its low-code development platform[179]. Market Strategy and Expansion - The company is focused on expanding its market presence and enhancing its product offerings through new technologies and innovations[15]. - The company plans to leverage its expertise in IoT and data analytics to drive future growth and operational improvements[15]. - The company aims to maintain its leadership position in the water management sector by investing in research and development of new products and services[15]. - The company is actively pursuing new strategies for market expansion and technological advancement to drive future growth[97]. - The company plans to enhance its digital service offerings to support the construction of smart cities and improve urban management capabilities[176]. - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by 2025[199]. Corporate Governance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[8]. - The company has not violated any decision-making procedures for providing guarantees[8]. - The company has received a standard unqualified audit report from Tianjian Accounting Firm[5]. - The board of directors and management have confirmed the accuracy and completeness of the annual report[4]. - The company has not disclosed 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[187]. Operational Efficiency - The company is committed to improving its operational efficiency and reducing water loss rates through advanced metering and management systems[15]. - The net cash flow from financing activities increased by 1,351.17%, mainly due to funds raised from the initial public offering[136]. - The company reported a significant increase in sales expenses by 43.51%, driven by an increase in the sales team and related costs[135]. - The company aims to enhance the profitability of water supply enterprises by reducing the production and sales gap through precise management services[103]. Technology and Innovation - The company has developed a comprehensive metering management system that integrates various remote transmission devices, allowing users to monitor the operational status of water meters in the supply network[48]. - The company has developed a noise monitoring system for leak detection, which utilizes high-sensitivity vibration sensors to monitor pipeline noise and provide alerts[67]. - The intelligent remote telemetry terminal collects and transmits critical data such as pressure, flow, and water quality, enhancing operational efficiency through IoT technology[59]. - The company has developed a leakage warning system that utilizes advanced technologies to detect leaks in urban water supply networks, enhancing the industry's leak detection capabilities[114]. - The company is leveraging IoT, big data, and edge computing to drive digital transformation and low-carbon operations in the water industry, aligning with national carbon neutrality goals[87]. Financial Risks and Challenges - The company's accounts receivable balance at the end of the reporting period was 273.02 million yuan, accounting for 53.82% of its revenue, indicating potential financial risk[127]. - The company benefited from tax incentives amounting to 16.82 million yuan, which constituted 15.31% of its pre-tax profit, highlighting reliance on favorable tax policies[128]. - The company faces competition from large IT firms like Huawei and Tencent in the water information sector, necessitating continuous improvement in product competitiveness[130]. - The company is monitoring macroeconomic conditions and the impact of COVID-19 on operations, which could affect project execution and overall performance[131]. Shareholder and Management Structure - 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 1.26 million yuan[193]. - The total pre-tax compensation for all directors, supervisors, and senior management during the reporting period amounted to 9.59 million yuan[194]. - The company has maintained a stable shareholding structure, with no changes in the number of shares held by key personnel during the reporting period[193]. - The company appointed a new financial director, Yi Jing, on September 17, 2021, with a pre-tax compensation of 151,700 yuan[193].