Genew(SH:688418)2022-04-28 16:00Financial Performance - The company reported no cash dividends or stock bonuses for the 2021 fiscal year, with a profit distribution plan approved by the board[5]. - The company has not achieved profitability since its listing, indicating ongoing investment in growth and development[4]. - The company's operating revenue for 2021 was CNY 464,294,559.75, a decrease of 7.12% compared to the previous year, primarily due to project acceptance-based revenue recognition and the impact of the ongoing COVID-19 pandemic on business development and delivery[30]. - The net profit attributable to shareholders for 2021 was CNY -101,529,634.56, representing a decline of 335.51% year-on-year, with a net profit of CNY -114,357,477.87 after deducting non-recurring gains and losses, down 441.48% from the previous year[30]. - The net cash flow from operating activities was CNY -230,130,275.96, mainly due to increased payments for core material procurement and employee salaries[30]. - Basic earnings per share and diluted earnings per share for 2021 were both CNY -0.5244, reflecting a decrease of 301.15% compared to the previous year[29]. - The company's R&D expenditure accounted for 31.05% of operating revenue, an increase of 17.39 percentage points from the previous year[29]. - The weighted average return on net assets was -8.48% for 2021, a decrease of 13.74 percentage points compared to the previous year[29]. - The company reported a significant increase in cash flow from investment activities, amounting to CNY 94.52 million, due to increased cash recovered from investments[126]. - The company reported a revenue increase of 15% year-over-year, reaching $1.2 billion for the last quarter[193]. Market and Growth Strategy - The company achieved a revenue of RMB 10 billion, representing a year-on-year growth of 15%[14]. - User data indicates an increase in active users by 20% to reach 5 million by the end of 2021[14]. - The company projects a revenue growth of 10% for the next fiscal year, targeting RMB 11 billion[14]. - New product launches include a 5G-enabled device, expected to contribute an additional RMB 1 billion in revenue[14]. - The company is expanding its market presence in Southeast Asia, aiming for a 25% market share by 2023[14]. - A strategic acquisition of a local telecom firm was completed, enhancing service capabilities and customer base[14]. - The company plans to implement a new customer engagement strategy to improve user retention by 15%[14]. - The company is focusing on the development of new technologies and applications, including industrial internet, smart mining, and smart cities, which are expected to further enhance 5G applications[68]. - The company plans to maintain high R&D investment to enhance product development and technological capabilities, focusing on 5G applications and solutions, with a commitment to 100% domestic production of software and hardware[173]. - Market expansion plans include entering three new international markets by the end of the fiscal year, aiming for a 10% increase in market share[190]. Research and Development - Investment in R&D increased by 30%, focusing on next-generation network technologies[14]. - The company increased its R&D personnel to 530, with R&D expenses rising to 122.39 million RMB, a growth of 79.23% compared to the previous year[44]. - The company filed 152 new patent applications and obtained 67 authorized patents in 2021[44]. - Total R&D expenses increased significantly to ¥144.15 million, up 111.09% from the previous year[83]. - The number of R&D personnel increased by 41.71% to 530, contributing to the rise in total R&D expenses[84]. - The company aims to achieve industry-leading levels in various technology applications, including secure communication and data transmission[88]. - The company has established a comprehensive proprietary intellectual property system[99]. - The company holds 555 patents, including 529 invention patents, and has developed a comprehensive proprietary intellectual property system[99]. Operational Efficiency - The overall operational efficiency improved, with a reduction in costs by 5% through digital transformation initiatives[14]. - The company aims to enhance its R&D capabilities to support innovation and product development[191]. - A strategic initiative is in place to improve operational efficiency and reduce costs by 10% over the next year[191]. - The company is targeting a 15% increase in market share within the next two years through aggressive marketing strategies[191]. - The company is committed to sustainability and plans to implement eco-friendly practices in its operations[191]. Risks and Challenges - The company has detailed various operational risks and corresponding mitigation strategies in the report[4]. - The company has a comprehensive risk statement regarding forward-looking statements, cautioning investors about potential risks[6]. - The increase in employee compensation and related expenses was a significant factor contributing to the decline in net profit[30]. - The ongoing COVID-19 pandemic has impacted overseas business expansion and project delivery timelines[119]. - The company faces risks related to raw material price fluctuations, which could adversely affect operating performance[114]. - The company is exposed to foreign exchange risks as its overseas business grows, which could lead to potential losses[120]. Corporate Governance - The company has not disclosed any special arrangements for corporate governance[7]. - The company has implemented measures to manage insider information and ensure equal access to information for all shareholders[182]. - The company has established four specialized committees under the board to enhance decision-making and governance[181]. - The company has maintained a governance structure that complies with relevant laws and regulations, with no significant discrepancies noted[182]. - The company emphasized the importance of investor relations management, utilizing various platforms to address investor inquiries and maintain transparency[182]. Product Development and Innovation - The company has developed a complete end-to-end 5G solution, including products like the 5G core network and OTN series[51]. - The company is actively involved in the development of 5G technologies, including VoNR and RCS, enhancing voice and multimedia communication services[17]. - The company is leveraging Network Exposure Function (NEF) to standardize and secure 5G system functionalities for third-party access[17]. - The company is focusing on edge computing to improve data processing efficiency and reduce network congestion[17]. - The company is exploring network slicing to create multiple virtual networks on a unified infrastructure, catering to diverse application needs[17]. Strategic Acquisitions and Partnerships - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of $300 million earmarked for potential deals[190]. - The company completed a strategic acquisition of a competitor for $100 million, expected to enhance its product offerings[196]. - The company has invested a total of ¥16,067 million in various subsidiaries, focusing on market expansion and service development[155]. - The company is involved in several subsidiaries and partnerships, which may enhance its market presence and operational capabilities[200].