OFFCN EDU(SZ:002607)2022-04-28 16:00Financial Performance - The company's operating revenue for 2021 was ¥6,911,723,331.79, a decrease of 38.30% compared to ¥11,202,494,295.04 in 2020[13]. - The net profit attributable to shareholders was -¥2,369,509,039.00, representing a decline of 202.83% from a profit of ¥2,304,357,742.74 in 2020[13]. - The net cash flow from operating activities was -¥4,097,961,548.90, down 183.93% from ¥4,882,469,101.91 in the previous year[13]. - The total assets at the end of 2021 were ¥10,305,183,525.70, a decrease of 28.53% from ¥14,418,850,027.27 at the end of 2020[13]. - The net assets attributable to shareholders decreased by 55.82% to ¥1,888,818,754.20 from ¥4,275,127,793.20 in 2020[13]. - The total revenue for the reporting period was CNY 6,911,723,331.79, a decrease of 38.30% compared to the previous year[32]. - The net profit attributable to shareholders was CNY -2,369,509,039.00, representing a decline of 202.83% year-on-year[32]. - The revenue from face-to-face training was CNY 4,380,182,147.02, down 46.80% from CNY 8,233,444,798.58 in the previous year[32]. - The revenue from online training was CNY 2,480,100,224.28, a decrease of 14.64% compared to CNY 2,905,456,920.13 in the previous year[32]. - The company reported non-recurring gains and losses totaling ¥116,121,413.04 for 2021, compared to ¥437,068,262.89 in 2020[19]. Corporate Governance - The company reported no cash dividends, stock bonuses, or capital reserve transfers for the year[3]. - The company faced an investigation by the China Securities Regulatory Commission for failing to disclose related party transactions, resulting in a warning and a fine[3]. - The company’s financial report was confirmed as true, accurate, and complete by the management team, including the CEO and accounting head[3]. - The company maintains a complete and independent business structure, ensuring no substantial competition with its controlling shareholder[94]. - The company has established a robust internal control system and governance structure, complying with relevant laws and regulations[84]. - The company did not report any dissent from directors regarding company matters during the reporting period[113]. - The company has established a remuneration management system for its directors and senior management to enhance work motivation[108]. - The company has committed to maintaining a complete and independent corporate governance structure post-transaction[137]. Strategic Focus and Future Outlook - The company emphasizes the importance of rational investment and awareness of investment risks in its forward-looking statements[3]. - The company has detailed its future development outlook and potential risks in the management discussion section of the report[3]. - The company is positioned to benefit from the "14th Five-Year Plan," which emphasizes improvements in education and healthcare services, potentially driving growth in recruitment sectors[21]. - The company aims to address the growing demand for skilled talent in the manufacturing sector, aligning with national workforce development goals[23]. - The company plans to implement a business recovery plan for 2022, focusing on internal optimization and new business development[31]. - The company plans to explore new business areas in vocational skills training, leveraging partnerships with government, enterprises, and universities[76]. - The company is focusing on building a technology R&D center and an integrated education demonstration center to improve its R&D capabilities and brand image[59]. - The company plans to deepen the integration of technology and business, enhancing digital transformation and operational efficiency[70]. Operational Efficiency and Workforce - The company has a dedicated R&D team of over 2,000 professionals and a teaching staff of more than 14,000, with total employees exceeding 36,000[25]. - The company has established several new training schools during the reporting period, indicating a strategy for market expansion[37]. - The number of employees decreased by 19.80% to 36,143 from 45,066 at the end of the previous year[32]. - The company has successfully reduced operational costs by 10% through efficiency improvements[105]. - The company is optimizing its vertically integrated management system to enhance operational efficiency and align human resources with its expansion strategy[80]. Related Party Transactions and Compliance - The company reported a total of CNY 3.597 million in related party transactions for procurement of products and services[152]. - The company has engaged in significant related party transactions, including 428,460,869.89 CNY in service fees from 2019 to 2021[169]. - The company faced administrative penalties, including fines totaling 2 million CNY for Chairman Li Yongxin and Director Shi Lei[107]. - The company has no overdue loans or other financial transactions with related parties[155]. - The company has reported no instances of asset or fund occupation by related parties post-transaction[137]. Shareholder Engagement - During the reporting period, the company held two shareholder meetings, ensuring equal treatment of all shareholders, especially minority shareholders[85]. - The first temporary shareholder meeting in 2021 had an investor participation rate of 78.68%[95]. - The annual shareholder meeting in 2020 had an investor participation rate of 80.10%[95]. - The company reported a total of 1,232,395,000 CNY in related party transactions, with 196,335,000 CNY in 2019 and 1,036,060,000 CNY in 2020, representing 6.65% and 30.19% of the company's latest net assets respectively[167]. Risk Management - The company faces risks from industry policies and market competition, but will leverage its IT capabilities and digital transformation to mitigate these risks[79]. - The company faces operational management risks due to the mismatch between business expansion and management capabilities, leading to decreased profit levels and margins[80]. - The ongoing pandemic has caused a decline in market training demand, particularly in regions where offline training cannot proceed smoothly[80]. - The company’s internal audit plan for 2022 aims to mitigate operational risks and improve management standards[118]. Audit and Financial Reporting - The audit opinion for the financial statements was a standard unqualified opinion, issued on April 28, 2022[191]. - The financial statements fairly reflect the company's financial position as of December 31, 2021[192]. - The audit identified revenue recognition as a key audit matter due to the significant amount and high risk of misstatement[196]. - Management is responsible for preparing financial statements in accordance with accounting standards and maintaining necessary internal controls[198].