KINGSUN(SZ:300235)2022-03-28 16:00Financial Performance - The company's operating revenue for 2021 was ¥111,488,967.38, a decrease of 8.86% compared to ¥122,322,181.37 in 2020[17] - The net profit attributable to shareholders for 2021 was ¥22,868,815.55, down 26.69% from ¥31,193,368.73 in the previous year[17] - The net profit after deducting non-recurring gains and losses was ¥15,983,809.60, reflecting a decline of 37.96% from ¥25,764,283.94 in 2020[17] - The net cash flow from operating activities was ¥22,484,075.45, a decrease of 22.38% compared to ¥28,967,295.31 in the previous year[17] - The total assets at the end of 2021 amounted to ¥685,266,192.89, representing a slight increase of 0.97% from ¥678,658,437.04 at the end of 2020[17] - The net assets attributable to shareholders increased by 2.10% to ¥663,058,271.77 at the end of 2021, compared to ¥649,420,166.17 at the end of 2020[17] - The basic earnings per share for 2021 were ¥0.14, down 26.32% from ¥0.19 in 2020[17] - The weighted average return on net assets was 3.48%, a decrease of 1.41% from 4.89% in the previous year[17] Revenue Breakdown - Total revenue for the first quarter was approximately CNY 40.74 million, with a significant drop in the second quarter to CNY 9.38 million, followed by CNY 39.74 million in the third quarter and CNY 21.62 million in the fourth quarter[19] - The net profit attributable to shareholders was CNY 15.62 million in the first quarter, but showed a loss of CNY 5.27 million in the second quarter, recovering to CNY 15.03 million in the third quarter and a loss of CNY 2.51 million in the fourth quarter[19] - The net cash flow from operating activities was CNY 2.47 million in the first quarter, a negative CNY 5.17 million in the second quarter, a further negative CNY 1.01 million in the third quarter, and a strong recovery to CNY 26.20 million in the fourth quarter[19] - The education sector contributed CNY 95.22 million, accounting for 85.41% of total revenue, reflecting a decline of 12.52% from the previous year[63] - Subscription revenue was CNY 72.92 million, representing 65.40% of total revenue, with a slight decrease of 8.82% year-on-year[63] Strategic Initiatives - The company has outlined its future development strategy and operational plans for 2022, addressing potential risk factors[5] - The company is leveraging opportunities from the ongoing education informationization, with a focus on integrating social resources and educational technology into school education[29] - The company plans to launch new application products in 2022, leveraging deep learning technology to create virtual teaching environments[53] - The company aims to enhance its product ecosystem by transitioning traditional subscription services to digital network services, with a focus on expanding its digital subscription business to other provinces in 2022[116] - The company is focusing on digital transformation and product upgrades to meet diverse student needs, establishing a solid foundation for future growth[60] Market Position and Competition - The company has established a strong brand presence in the education technology industry, aligning its traditional business direction with national strategic development policies[28] - The company is a leading provider of quality resources in the smart education sector, focusing on the development, design, sales, and continuous service of synchronous education products for primary and secondary schools[31] - The company has a significant market share in the Yangtze River Delta and Pearl River Delta regions, enjoying a high reputation in the industry[33] - The company has a stable user base exceeding 65 million beneficiaries across over 100 cities in 30 provinces, indicating significant market penetration[50] - The company has identified a significant market gap in the synchronous education service sector, particularly in underdeveloped regions[46] Research and Development - The company has accumulated 121 software copyrights, including 4 invention patents, and has added 7 software copyrights and 3 invention patents during the reporting period[54] - The company's R&D expenses increased by 25.27% to ¥33,705,282.39, driven by the need to upgrade educational products to meet customer demands[75] - The company's R&D investment amounted to ¥33,238,740.36 in 2021, representing 29.81% of total revenue, an increase from 21.41% in 2020[78] - The number of R&D personnel decreased by 41.44% to 65 in 2021, with R&D personnel accounting for 50.39% of the total workforce[78] Governance and Compliance - The company has established a governance structure that includes a board of directors, supervisory board, and management team, ensuring clear responsibilities and compliance with relevant laws and regulations[129] - The board consists of 7 members, including 3 independent directors, ensuring compliance with legal requirements and promoting independent decision-making[133] - The company has implemented a performance evaluation and incentive mechanism for senior management, linking compensation directly to performance to align with company goals[135] - The company has been proactive in addressing compliance issues, as shown by the warning letters issued to several executives[159] - The company has completed its rectification plan regarding related party transactions by April 2021, ensuring compliance with relevant regulations[187] Social Responsibility - The company actively fulfilled its corporate social responsibility by providing free access to its educational products during the pandemic[194] - The company emphasized the importance of legal compliance and social responsibility, maintaining a balance between economic and social benefits[194] - The company has not engaged in poverty alleviation or rural revitalization efforts during the reporting period[195] Employee Management - The total employee compensation for the reporting period was ¥3,997,797.88, accounting for 9.16% of the company's operating costs, compared to ¥5,658,430.18 and 12.96% in the previous year[177] - The total employee compensation for the company was ¥43,650,877.38, representing 44.56% of the total operating costs, an increase from ¥40,947,701.38 and 41.44% in the previous year[178] - The company has implemented a comprehensive human resources strategy to attract and retain talent, as evidenced by the roles of its senior management[154] - The company has a diverse management team with extensive experience in technology and finance, contributing to its strategic direction[148] Future Commitments - The company has outlined future commitments to ensure compliance with any new regulatory requirements from the China Securities Regulatory Commission[198] - The company has committed to linking future stock incentive plans to the execution of return compensation measures[198] - The commitments made by the shareholders regarding non-competition and non-occupation of company funds have been adhered to without violations[199]