ZMD(SH:688636)2022-04-07 16:00Financial Performance - The company's operating revenue for 2021 was CNY 449,424,750.41, representing a year-on-year increase of 38.43% compared to CNY 324,665,671.87 in 2020[22]. - The net profit attributable to shareholders for 2021 was CNY 111,513,994.84, reflecting a year-on-year growth of 30.30% from CNY 85,583,973.56 in 2020[22]. - The net cash flow from operating activities increased by 135.13% to CNY 67,441,084.99 in 2021, up from CNY 28,681,901.70 in 2020[22]. - The total assets at the end of 2021 were CNY 1,300,248,119.18, marking a 116.07% increase from CNY 601,775,059.47 at the end of 2020[22]. - The equity attributable to the parent company was 886.60 million yuan, up 138.94% from the previous year[36]. - The company's net profit after deducting non-recurring gains and losses was 101.39 million yuan, a year-on-year increase of 20.49%[36]. - The company's operating costs increased by 44.85% year-on-year to RMB 174,935,862.12, slightly outpacing revenue growth due to changes in product sales structure[102]. Research and Development - The company's R&D expenditure accounted for 21.06% of operating revenue in 2021, an increase of 3.75 percentage points from 17.31% in 2020[23]. - The number of new R&D projects reached 167, representing a 45% increase from the previous year[35]. - The company achieved a total R&D investment of ¥94,642,187.29, representing a 68.39% increase compared to the previous year[67]. - The company holds a total of 34 patents and 161 software copyrights, with 10 new applications filed during the reporting period[65]. - The company has developed several original technologies, including rapid frequency hopping and high-reliability military power supply components, which are now in mass production[64]. - The company has increased its R&D personnel significantly, adding 4 new patents and 3 software copyrights, bringing the total to 34 patents and 161 software copyrights by the end of 2021[37]. Market and Business Strategy - The company plans to continue expanding its market presence and investing in new product development to sustain growth[101]. - The company aims to expand its market share in the military embedded computer sector by providing comprehensive solutions from information collection to storage, targeting various applications including airborne, missile, naval, and vehicle-mounted systems[134]. - The company is committed to increasing its R&D investment and expanding its R&D team to foster innovation and enhance its core competitiveness in the industry[134]. - The company plans to enhance its product offerings by developing new platforms and technologies, focusing on low-power, high-performance multi-core systems and advanced real-time embedded operating systems[135]. - The company is considering strategic acquisitions to bolster its product offerings, with a target of acquiring at least one company by Q2 2024[157]. Corporate Governance and Compliance - The board of directors and supervisory board confirm the authenticity and completeness of the annual report[4]. - The company has established a governance structure that ensures clear responsibilities and independent operations among its shareholders, board of directors, and management[142]. - The company adheres to national regulations regarding the confidentiality of sensitive information related to defense products, limiting the disclosure of specific data[140]. - The company has implemented a performance-based compensation system for senior management, reflecting the company's annual operating performance[191]. - The company has established a modern corporate governance structure to enhance decision-making efficiency[194]. Environmental and Social Responsibility - The company emphasizes the importance of ESG, integrating it into corporate culture for sustainable development[192]. - The company has not received any administrative penalties related to environmental issues during the reporting period[196]. - The company made a donation of 25 million yuan for charitable activities during the reporting period[199]. - The company has set up a dedicated environmental protection management team to oversee compliance with environmental regulations[198]. - The company has upgraded its environmental monitoring and hazardous waste treatment equipment to improve pollution control[194]. Risks and Challenges - The company faces risks related to core material procurement, which could impact production and military order delivery if suppliers fail to meet quality and quantity requirements[89]. - Revenue structure is influenced by changes in military and downstream customer production and assembly demands, which could significantly affect income[90]. - The company has a significant amount of accounts receivable, which may slow down cash flow and create financial pressure if major clients face payment difficulties[94]. - The company's inventory management poses risks of turnover and impairment, especially if market conditions change unfavorably[95]. - Changes in tax policies could adversely affect the company's operating performance, as current tax incentives significantly contribute to profitability[99].