LZRJ(SH:688588)2022-04-07 16:00Financial Performance - The company achieved operating revenue of CNY 652.66 million in 2021, representing a year-on-year growth of 3.58%[21]. - Net profit attributable to shareholders decreased by 27.28% to CNY 145.99 million in 2021[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 28.81% to CNY 107.80 million[21]. - The company's cash flow from operating activities was CNY 126.98 million, down 25.00% compared to the previous year[21]. - The company's total assets increased by 5.73% to CNY 1.38 billion at the end of 2021[21]. - The basic earnings per share decreased by 29.70% to CNY 0.3650 in 2021[22]. - The company reported a significant impact from the depreciation of the Japanese yen, which affected both revenue and exchange losses[30]. - The company reported a total revenue of 11,750 million RMB, with a net profit of 6,357.48 million RMB for the year 2021[73]. Research and Development - Research and development expenses accounted for 9.74% of operating revenue, an increase of 0.32 percentage points from the previous year[22]. - The company invested ¥63,574,800 in R&D during the reporting period, obtaining 210 software copyrights and 4 invention patents[42]. - Total R&D expenses increased to ¥63,574,793.37, up 7.10% from the previous year[67]. - The company has significantly invested in emerging technologies such as cloud computing, big data, and artificial intelligence, which are now integrated into most of its software development projects[77]. - The company has developed a range of products and engines that combine big data analysis and artificial intelligence algorithms, enhancing its service offerings[78]. Market Position and Strategy - The company remains heavily reliant on the Japanese market for software development services, posing a risk if market conditions change[87]. - The company is focused on the application of emerging technologies in the financial sector, providing comprehensive software development services across various financial fields[43]. - The company aims to achieve a software business revenue exceeding 14 trillion yuan by 2025, with an average annual growth rate of over 12%[124]. - The company plans to enhance its delivery capabilities by expanding its development and research teams, focusing on modular, automated, and tool-based development processes[126]. - The company is committed to increasing R&D investment in emerging technologies such as cloud computing, big data, and artificial intelligence to meet growing service demands across various industries[128]. Corporate Governance - The company has not disclosed any special arrangements for corporate governance[7]. - The company has a governance structure that complies with relevant laws and regulations, ensuring the legality and effectiveness of meeting resolutions[133]. - The company’s management team, including the chairman and core technical personnel, maintained their shareholdings without any changes during the reporting period[137]. - The company continues to focus on maintaining a robust governance framework with independent oversight from its board members[144]. - The company has implemented a comprehensive talent training system to develop high-skilled professionals, ensuring a stable workforce for future growth[85]. Risk Factors - The fluctuation of the Japanese yen poses a significant risk to the company's profit levels due to its revenue being primarily in yen while costs are in RMB[91]. - The company faces risks related to high customer concentration, particularly with its largest client, Nomura Research Institute[87]. - The company has detailed various operational risks in the "Management Discussion and Analysis" section of the report[4]. Shareholder Information - The company plans to distribute cash dividends of RMB 2 per 10 shares, totaling approximately RMB 80 million, which accounts for 54.80% of the net profit attributable to shareholders in 2021[5]. - The company has established a cash dividend policy that requires a minimum of 10% of the distributable profit to be distributed as cash dividends in any given year[163]. - The company has six employee shareholding platforms, indicating a structured approach to employee equity participation[143]. - The actual controller and shareholders of Lingzhi Software committed to holding their shares for a minimum of 36 months post-IPO, with no transfer or management of shares during this period[198]. Technology and Innovation - The company is actively expanding its customer base and projects while enhancing technology and product innovation[30]. - The company has developed proprietary core technologies, including project management systems and automated testing platforms, which significantly improve software development efficiency[58]. - The company has developed a microservices architecture based on cloud computing, utilizing container technology to package services, which reduces system complexity and allows for independent deployment and expansion[60]. - The integration of big data and artificial intelligence technologies is crucial for the company's data processing capabilities, supporting various applications including data mining and system interconnectivity[58]. Financial Management - The company has implemented a stable profit distribution policy to ensure reasonable returns for investors, emphasizing transparency and compliance with legal regulations[187]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 522.92 million[146]. - The company has established a fair and scientific salary and performance evaluation system to enhance employee motivation and efficiency[160]. - The company has a stock incentive plan in place, which is designed to align employee interests with shareholder value[169].