SCIYON(SZ:002380)2022-04-28 16:00Financial Performance - The company's operating revenue for 2021 was CNY 1,140,279,009.40, representing a 35.02% increase compared to CNY 844,534,982.39 in 2020[21] - The net profit attributable to shareholders decreased by 71.33% to CNY 37,223,202.08 from CNY 129,834,127.29 in the previous year[21] - The net profit after deducting non-recurring gains and losses was CNY 21,898,348.76, down 77.17% from CNY 95,931,861.17 in 2020[22] - The net cash flow from operating activities was negative at CNY -349,468,746.73, a decline of 286.86% compared to CNY 187,020,285.69 in 2020[22] - Basic earnings per share fell by 70.37% to CNY 0.16 from CNY 0.54 in the previous year[22] - Total assets increased by 9.93% to CNY 3,337,436,020.38 at the end of 2021, up from CNY 3,035,997,064.58 at the end of 2020[22] - The net assets attributable to shareholders decreased by 5.30% to CNY 2,168,787,206.20 from CNY 2,290,283,682.23 in 2020[22] - The company reported a total investment of ¥332,120,055.93 during the reporting period, a decrease of 9.45% from the previous year[68] - The company reported a total revenue of 62,867,047 with a net profit of 3,216,862, reflecting a strong performance in the software and system integration sector[86] Market Trends and Industry Outlook - The industrial automation market in China is projected to grow from ¥1,976 billion in 2021 to ¥2,087 billion in 2022, indicating a positive industry trend[33] - Government policies are strongly supporting the development of the industrial automation sector, creating a favorable external environment for growth[33] - The demand for automation products is increasing due to rising labor costs and the need for manufacturing efficiency[35] - The trend of replacing imported automation equipment with domestic products is gaining momentum, enhancing market share for local manufacturers[35] - The industrial automation and information sector contributed ¥981,177,533.42, accounting for 86.05% of total revenue, with a growth of 21.42% from the previous year[46] - The smart energy segment saw a significant increase in revenue, rising by 345.78% to ¥155,224,572.29, up from ¥34,821,197.58 in 2020[46] Research and Development - R&D expenditure totaled CNY 11,268.65 million, accounting for 9.88% of total revenue, with 29 new patents granted during the year[40] - The company holds a total of 220 valid patents and 354 software copyrights, reflecting its strong commitment to innovation[39] - The company plans to enhance its R&D efforts to innovate in areas such as fault-tolerant control systems and industrial internet platforms[92] Corporate Governance and Management - The company established a governance structure with a shareholders' meeting, board of directors, and supervisory board to enhance checks and balances[105] - The company has an independent financial management system with sufficient accounting personnel and a separate accounting system, ensuring no interference from the controlling shareholder[106] - The company has a well-defined organizational structure and internal management system tailored to its development needs[105] - The management team includes experienced professionals with diverse backgrounds in engineering, management, and finance, ensuring effective leadership[117] Shareholder Returns and Dividends - The company plans to distribute a cash dividend of CNY 0.40 per 10 shares, totaling CNY 93,996.30 based on 234,990,749 shares[5] - The total cash dividend amount (including other methods) is 9,399,629.96 CNY, which accounts for 100% of the profit distribution total[135] - The company has established a clear profit distribution policy to ensure reasonable returns for shareholders[134] Challenges and Risks - The company has reported a significant uncertainty regarding its ability to continue as a going concern due to negative net profits in recent years[22] - The company faced challenges in its energy internet projects due to fuel supply shortages and rising costs, impacting the profitability of the Peixian and Lingbi projects[44] - The company faces macroeconomic risks that could impact product sales and revenue growth, and it plans to closely monitor the economic environment[94] - The company is in a competitive market where foreign brands hold significant market share, and it aims to maintain its position through high cost-performance products[94] Employee and Talent Management - The total number of employees has increased, reflecting the company's growth and expansion strategy[116] - The company has implemented a training plan for new and existing employees to enhance their skills and capabilities[133] - The company is addressing talent retention risks by improving training and incentive mechanisms to stabilize its skilled workforce[94] Legal and Compliance Matters - The company is involved in a lawsuit regarding a savings deposit contract dispute, which is currently under court review[94] - The company received a qualified audit opinion from the auditing firm, indicating issues with internal controls related to cash handling and fixed deposits[161] - The company has not reported any significant financial losses or impacts due to internal control deficiencies[145] Future Strategies - The company plans to invest remaining funds from previous projects into new initiatives to enhance operational efficiency and explore new business sectors[79] - Future strategies include focusing on autonomous control systems and expanding into smart industries such as smart chemicals and smart metallurgy[91] - The company aims to leverage industrial internet technology to assist clients in achieving intelligent and digital transformation[92]