QITIAN Technology(SZ:300061)2022-04-26 16:00Financial Performance - The company reported a significant decline in revenue and profit due to market changes and regulatory policies, particularly in the card value-added marketing and travel information service sectors [6]. - The company's operating revenue for 2021 was CNY 1,054,373,936, a decrease of 28.04% compared to CNY 1,465,204,977 in 2020 [22]. - The net profit attributable to shareholders was a loss of CNY 365,968,279.6, an improvement of 51.17% from a loss of CNY 758,220,083 in 2020 [22]. - The basic earnings per share for 2021 was -CNY 0.55, showing a 50.45% improvement from -CNY 1.21 in 2020 [22]. - The total assets at the end of 2021 were CNY 1,731,626,769, down 28.02% from CNY 2,149,607,734 at the end of 2020 [22]. - The company reported a net cash flow from operating activities of CNY 271,872.80, a significant improvement of 102.19% compared to -CNY 12,427,179.36 in 2020 [22]. - The company reported a total of CNY 7,501,197.24 in non-recurring gains for 2021, down from CNY 23,344,188.57 in 2020 [29]. - The company’s revenue for the reporting period was CNY 36,686.08 million, a year-on-year decrease of 60.96% due to business adjustments [44]. - The aviation and travel information service segment generated revenue of CNY 5,107.46 million, down 42.00% year-on-year, impacted by local pandemic outbreaks and tightened regulatory policies [44]. - The digital lifestyle marketing sector accounted for 59.41% of total revenue, with a year-on-year increase of 49.57% to CNY 626,359,007.29 [47]. Impairment and Losses - The company recognized an impairment loss of goodwill amounting to RMB 341.4162 million related to acquisitions of Qijian Intelligent and Jingzhong Technology [7]. - The company reported a significant asset impairment loss of ¥351,208,870.79, primarily related to goodwill and fixed asset impairments [65]. - The company reported a goodwill impairment of 341.42 million yuan, resulting in a net goodwill value of 601.75 million yuan, indicating potential risks if acquired companies do not meet performance expectations [86]. Strategic Adjustments and Market Focus - The company has identified a need for strategic adjustments in response to the evolving digital landscape and market conditions [32]. - The company is focusing on digital economy trends, which have shown a compound annual growth rate of 13.79% from 2012 to 2020, significantly outpacing GDP growth [32]. - The company is actively expanding into the digital government sector, having initiated a partnership for the "My Yancheng" APP, marking a significant step in digital government services [43]. - The company plans to focus on digital government services as a key growth area, leveraging its partnership with Yancheng state-owned assets [79]. - The company aims to solidify its existing digital marketing business while expanding into non-bank financial institutions and government clients [79]. - The company anticipates increased marketing demand due to ongoing digital transformation in the industry, focusing on expanding its service offerings to various sectors including automotive, energy, and retail [81]. Governance and Compliance - The board of directors has confirmed that all members attended the meeting to review the annual report, ensuring accountability for the report's accuracy [5]. - The company emphasizes the importance of investors understanding the risks associated with forward-looking statements regarding future plans [7]. - The company has established a comprehensive internal control system to improve operational standards and compliance with legal regulations [99]. - The company has implemented a transparent information disclosure policy, with a dedicated board secretary managing investor relations [96]. - The company maintains complete independence from its controlling shareholder in terms of business, personnel, assets, organization, and finance, ensuring no interference in decision-making [100]. - The company has established a governance structure that allows for independent decision-making by its board and management [161]. Management and Personnel Changes - The company’s board of directors and senior management experienced changes, with several members leaving their positions during the reporting period [107]. - The company experienced significant management changes during the reporting period, with multiple resignations and appointments of key executives, including the election of a new independent director on February 5, 2021 [108]. - The company appointed two new vice presidents on March 1, 2021, to meet operational needs, indicating a strategic shift in management structure [109]. - The company has a diverse board of directors with extensive experience in finance, technology, and management, which could enhance its strategic direction and market positioning [111]. Employee Development and Compensation - The company has implemented a performance-based compensation system that aligns employee performance with company benefits [134]. - A total of 109 training sessions were conducted across various departments to enhance employee skills and knowledge [135]. - The company has established a clear career development path through its salary system, which includes fixed wages, performance pay, and bonuses [134]. - The total remuneration for the board of directors and senior management during the reporting period amounted to RMB 1,235.04 million [119]. Related Party Transactions and Compliance - The company has committed to avoiding unnecessary related transactions with its subsidiaries, adhering to fair market pricing for any necessary transactions [162]. - The company has established a market-oriented pricing principle for transactions with related parties, ensuring compliance with legal procedures [169]. - The company will ensure that any related transactions do not harm the legal rights of other shareholders [165]. - The company has made a commitment to not engage in any business that competes with its subsidiaries, ensuring no conflict of interest [165]. Future Outlook and Commitments - The company committed to ensuring that the net profit for the years 2019 to 2022 does not fall below the specified amounts, with a minimum of RMB 60 million for 2019 [172]. - The company will conduct impairment testing on the assets at the end of the performance commitment period, with reports due by April 30, 2023 [172]. - The company plans to sell its eyewear lens business assets and liabilities, including 100% equity of five subsidiaries related to the eyewear lens business [167]. - The company aims to resolve competition issues by exiting the eyewear industry within three years if approved by the shareholders' meeting [167].