Eastcompeace(SZ:002017)2022-04-19 16:00Financial Performance - The company's operating revenue for 2021 was ¥1,072,485,756.62, representing a 0.92% increase compared to ¥1,062,684,714.42 in 2020[19]. - The net profit attributable to shareholders for 2021 was ¥43,459,040.77, a 22.56% increase from ¥35,460,625.45 in 2020[19]. - The net cash flow from operating activities increased by 62.34% to ¥219,594,580.69 in 2021, up from ¥135,271,852.78 in 2020[19]. - Basic earnings per share for 2021 were ¥0.0973, reflecting a 22.54% increase from ¥0.0794 in 2020[19]. - Total assets at the end of 2021 were ¥2,285,851,972.92, a 9.83% increase from ¥2,081,179,370.91 at the end of 2020[19]. - The net assets attributable to shareholders increased by 2.03% to ¥1,441,796,871.41 at the end of 2021, compared to ¥1,413,101,016.57 at the end of 2020[19]. - The company reported a weighted average return on equity of 3.04% for 2021, an increase of 0.52 percentage points from 2.52% in 2020[19]. - The net profit after deducting non-recurring gains and losses for 2021 was ¥32,842,014.41, an 11.53% increase from ¥29,446,180.62 in 2020[19]. Dividend Distribution - The company plans to distribute a cash dividend of ¥0.50 per 10 shares, based on a total of 446,486,084 shares[4]. - The company reported a cash dividend of 0.50 CNY per 10 shares, totaling 22,324,304.20 CNY, which represents 100% of the total profit distribution[140]. - The distributable profit for the period was 386,216,333.44 CNY, indicating a strong profitability position[140]. - The company did not propose any stock bonuses or capital reserve transfers during the reporting period, reflecting a focus on cash dividends[140]. - The company has committed to distributing at least 10% of the current year's distributable profits in cash[159]. Business Operations and Strategy - The company has not made any changes to its main business since its listing[18]. - The company is positioned in the digital identity and security industry, which is expected to experience growth due to the "14th Five-Year Plan" promoting digital development[30]. - The company has a competitive advantage in the smart card market, focusing on digital identity security products and solutions, and plans to expand into the IoT security field[31]. - The company anticipates significant growth in the 5G-SIM card market, driven by advancements in cloud services and IoT technologies[37]. - The company plans to focus on digital security innovation and upgrade its product offerings in response to the rapid development of the digital economy[44]. - The company aims to leverage its state-owned enterprise platform advantages to drive high-quality development in the future[44]. Research and Development - The company obtained 29 authorized patents during the reporting period, enhancing its innovation capabilities[42]. - The company's research and development expenses totaled ¥102.70 million, a slight increase of 0.15% compared to the previous year[60]. - R&D investment amounted to ¥102,704,544.98 in 2021, a slight increase of 0.15% compared to ¥102,555,066.69 in 2020, representing 9.58% of operating revenue[65]. - The company is investing in R&D to accelerate the development of IoT embedded security products like eSIM and eSE[91]. - Research and development investments increased by 30%, totaling 150 million in 2021, focusing on innovative technologies[116]. Market Performance - International business revenue reached CNY 270.52 million, up 21.43% compared to the previous year[52]. - The digital security and platform business saw a revenue increase of 42.77%, totaling CNY 91.83 million[52]. - Domestic sales accounted for 74.78% of total revenue, while international sales made up 25.22%[52]. - The smart card product line generated CNY 963.75 million, accounting for 89.86% of total revenue, although it experienced a decline of 2.23% year-on-year[52]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by 2023[116]. Financial Management - The company has independent financial management, with a separate accounting system and bank accounts, ensuring no shared accounts with the controlling shareholder[107]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 509.95 million[127]. - The company strictly adheres to its remuneration decision-making procedures and pays salaries on time[124]. - The company has established a clear framework for the remuneration of its directors and senior management based on their roles and performance[125]. - The company has established a multi-level compensation and benefits system to attract and retain valuable talent, aligning with market standards[138]. Governance and Compliance - The company maintains complete independence from its controlling shareholder in terms of business, personnel, assets, institutions, and finance[101]. - The board of directors consists of nine members, including three independent directors, representing one-third of the board, ensuring compliance with legal and regulatory requirements[100]. - The company has established a transparent performance evaluation and incentive mechanism for directors, supervisors, and senior management, ensuring compliance with relevant laws and regulations[99]. - The internal control system was deemed effective, with no significant deficiencies reported in financial or non-financial controls[146]. - The company aims to continuously improve its internal control system and overall management level in the future[147]. Social Responsibility - The company actively participates in social welfare activities, balancing the interests of shareholders, employees, and society[100]. - The company purchased agricultural specialty products worth CNY 125,300 from poverty alleviation points in Lianping County, Guangdong Province, contributing to poverty alleviation efforts[152]. - The company donated a total of CNY 60,000 to the Zhuhai Poverty Alleviation Fund and the Internet Information Office for targeted poverty alleviation[152]. - The company plans to continue implementing various forms of targeted poverty alleviation, including consumption-based assistance, to ensure effective support[152]. Legal and Regulatory Matters - The company faced a total of 184.19 million yuan in a sales contract dispute, which has been resolved with the execution of the arbitration award[167]. - The company successfully reached a mediation agreement in a dispute with Tianjin Tongka Intelligent Network Technology Co., Ltd., resulting in a recovery of 46.49 million yuan[168]. - The company has not experienced any penalties or rectifications during the reporting period[169]. - There were no significant related party transactions during the reporting period[170]. - The company has maintained a clean record regarding its integrity and that of its controlling shareholders[170].