Newtouch(SH:688590)2023-04-25 16:00Financial Performance - The company reported no profit distribution or capital reserve transfer to increase share capital for the year 2022, as approved by the board of directors [5]. - The company has not achieved profitability since its listing, indicating ongoing investment in growth and development [4]. - The company's operating revenue for 2022 was CNY 1,315,417,096.58, an increase of 2.57% compared to CNY 1,282,480,403.50 in 2021 [22]. - The net profit attributable to shareholders for 2022 was -CNY 51,939,208.16, a decrease of 136.78% from CNY 141,217,998.98 in 2021 [22]. - The net cash flow from operating activities was -CNY 128,053,738.46, a decrease of CNY 11,744,470.38 compared to -CNY 10,609,034.08 in 2021 [22][25]. - The total assets at the end of 2022 were CNY 2,380,203,667.03, representing a 19.46% increase from CNY 1,992,465,084.87 at the end of 2021 [23]. - The basic earnings per share for 2022 was -CNY 0.22, down 136.67% from CNY 0.60 in 2021 [24]. - Total profit amounted to -58.74 million RMB, a decline of 135.09% year-on-year [34]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -CNY 68,064,645.01, a decrease of 202.78% from CNY 66,220,992.32 in 2021 [22]. - The company reported a total revenue for the current period of CNY 1,050,894,610.85, representing a 19.93% increase compared to CNY 876,224,443.22 in the same period last year [106]. Research and Development - Research and development expenses accounted for 11.85% of operating revenue in 2022, an increase of 0.36 percentage points from 11.49% in 2021 [24]. - The company invested 155.84 million RMB in R&D, an increase of 5.72% year-on-year, with a total of 770 R&D personnel [39]. - The total R&D investment for the year was approximately ¥155.84 million, an increase of 5.72% compared to the previous year, with a ratio of R&D investment to operating income at 11.85% [72]. - The company submitted 30 patent applications during the year, including 28 invention patents, and was granted 43 software copyrights [39]. - The company has a total of 88 new applications and 55 approvals for intellectual property rights in the current year, bringing cumulative totals to 537 applications and 450 approvals [71]. Operational Strategies - The company has established a development and operation integration platform, Newtouch One, enhancing software development efficiency and delivery consistency [13]. - The company has implemented a quality assurance center (QAC) to oversee project management and ensure product quality [13]. - The company is focused on expanding its IT solutions and services, particularly in the areas of cloud computing and data management [13]. - The company is developing a knowledge graph platform for the insurance industry, which aims to enhance compliance with regulatory requirements and improve service efficiency [74]. - The company aims to expand its knowledge graph products into multiple vertical industries, starting with the insurance sector based on its existing client base [65]. Market Position and Client Base - The company has a comprehensive customer base, including major clients such as China Pacific Insurance and China Life Insurance [14]. - The company has established strong partnerships with major insurance firms, including China Pacific Insurance and China Life Insurance, enhancing its market position in the insurance IT solutions sector [59]. - The company's banking IT solutions are utilized by over 40 joint-stock banks, with a high coverage rate among large commercial banks [59]. - The company achieved total operating revenue of 1.315 billion RMB, an increase of 2.57% year-on-year [34]. - Revenue from the insurance sector reached 421 million RMB, reflecting a year-on-year growth of 5.47% [35]. Challenges and Risks - The company faced significant external environment challenges, which delayed project payments and affected cash flow management [25]. - The IT solutions business experienced a revenue decline of 6.5% due to project delays and increased costs, impacting overall profitability [25]. - The company is exposed to risks from its reliance on the financial sector, where any downturn could significantly affect its revenue [92]. - The company faces risks related to rising labor costs, which could negatively impact gross margins if they outpace productivity growth [89]. Governance and Management - The company emphasizes the importance of maintaining a strong governance structure to ensure efficient and stable operations [129]. - The company has established a comprehensive governance system to comply with legal and regulatory requirements, enhancing operational transparency [130]. - The company has implemented a stock incentive plan with a total of 7,665,000 restricted stocks granted, accounting for 4.21% of the total shares, and 473 incentive recipients, representing 10.31% [162]. - The company has a dedicated compensation and assessment committee to oversee remuneration policies and practices [143]. - The company has disclosed its remuneration practices in accordance with its articles of association, ensuring transparency [143]. Investments and Acquisitions - In 2022, the company strategically invested CNY 10.3 million to acquire 100% equity of Beijing Runlin Automotive Technology Co., Ltd., a leading domestic DMS system provider in the automotive sector [41]. - The company acquired Shenzhen Hengdao to enhance its market expansion capabilities in the southern region of China [37]. - The company invested CNY 18 million to acquire 25% equity of Shanghai Mugao Network Technology Co., Ltd. and CNY 6 million for 26.09% equity of Shanghai Luyun Information Technology Co., Ltd., expanding its cloud computing service capabilities [43]. - The company participated in the Shanghai Fintech Equity Investment Fund with a commitment of CNY 40 million, aiming to leverage innovative financial solutions and extend its industry chain [44]. Employee and Talent Management - The total number of employees at the parent company and major subsidiaries is 6,248, with 4,067 at the parent company and 2,181 at subsidiaries [156]. - The number of R&D personnel increased to 770, accounting for 12.32% of the total workforce [78]. - The company has a competitive salary incentive policy to attract local talent, with a focus on optimizing personnel structure and salary distribution mechanisms [157]. - The company has established a training plan to enhance employee competencies, focusing on new employee onboarding and technical skill development [158]. - The company plans to continue expanding its market presence and investing in new technologies and products [135]. Environmental and Social Responsibility - The company did not invest any funds in environmental protection during the reporting period, with an investment amount of 0 million yuan [179]. - The company is not classified as a key pollutant discharge unit and does not engage in activities that involve environmental pollution [180]. - The company provided employment opportunities and participated in social welfare activities, including collaborations with universities for student internships [182]. Information Disclosure and Investor Relations - The company emphasizes information disclosure, adhering to relevant laws and regulations, and has established a management system to ensure timely and accurate information dissemination [195]. - The company actively communicates with investors through various channels, ensuring transparency and protecting shareholder rights [177]. - The company maintains a dedicated investor hotline and actively engages with investors through various communication channels to enhance transparency and protect minority shareholders' rights [195]. - The company has a designated website for information disclosure, ensuring all shareholders have equal access to important company information [196].