Watertek(SZ:300324)2022-04-19 16:00Financial Performance - The company achieved operating revenue of CNY 317,162.94 million, an increase of 13.37% year-on-year[7] - The total profit amounted to CNY -9,407.65 million, improving by 92.38% year-on-year[7] - The net profit attributable to the parent company was CNY -11,299.12 million, an increase of 90.93% year-on-year[7] - The net cash flow from operating activities was ¥143,643,693.14, down 13.34% from ¥165,751,535.18 in 2020[29] - The total assets at the end of 2021 were ¥6,719,702,474.44, a slight increase of 0.78% from ¥6,667,659,572.90 at the end of 2020[31] - The net assets attributable to shareholders decreased by 1.96% to ¥3,961,263,512.86 from ¥4,040,458,216.40 in 2020[31] - The basic earnings per share improved to -¥0.0654 from -¥0.7280 in 2020, marking a 91.02% increase[29] - The diluted earnings per share also improved to -¥0.0654 from -¥0.7280 in the previous year, reflecting the same percentage increase[29] - The weighted average return on equity was -2.87%, an improvement of 24.35% from -27.22% in 2020[29] - The company reported a quarterly revenue of ¥1,201,053,996.27 in Q4 2021, the highest among the four quarters[33] - The net profit attributable to shareholders in Q4 2021 was ¥61,705,205.88, marking a positive turnaround after three consecutive quarters of losses[33] Research and Development - Research and development expenses reached CNY 33,523.62 million, up 29.07% year-on-year[5] - The company aims to enhance its R&D investment in digitalization and intelligence, responding to national policies and industry trends[42] - R&D investment amounted to ¥350,739,371.48 in 2021, representing 11.06% of operating revenue, up from 9.59% in 2020[131] - The number of R&D personnel decreased to 1,051, a decline of 5.23% compared to the previous year, while the proportion of R&D personnel increased to 32.32%[131] - The company is committed to increasing R&D investment to maintain competitive advantages in both military and civilian markets, ensuring product quality and innovation[192] Strategic Focus and Market Positioning - The company plans to focus on digitalization and intelligence in the industry, leveraging core technologies and product systems[8] - The company is a leading provider of integrated solutions for smart city planning, construction, and operation in China, leveraging advanced information technology[51] - The main business areas include defense military industry and digital city services, with a focus on embedded system testing products and services, and information security products for tax and finance sectors[54] - The company is focused on achieving a leading position in the domestic market through continuous innovation and strategic project development[128] - The company is committed to long-term benefits through strategic equity transfers that align with its overall business goals[170] Operational Efficiency and Management - The company aims to optimize functional settings and strengthen management control to adapt to external conditions and improve operational efficiency[186] - The company plans to improve operational efficiency by revising internal control systems and performance evaluation mechanisms, aligning with market demands and overall business performance[189] - The company is focused on optimizing its management structure to cope with the rapid growth of its business scale and the increasing complexity of its operations[193] - The company has established a fair performance evaluation system and improved employee incentive mechanisms to retain key technical personnel and protect core technologies[195] Challenges and Risks - There are no significant risks to the company's ongoing operations despite the impact of the pandemic and economic conditions[9] - The company acknowledges potential risks from macroeconomic policies and aims to adapt its business structure and innovate in response to policy changes[191] - The company recognizes the challenges posed by the COVID-19 pandemic, which has affected project timelines and cash flow, and is implementing measures to adapt to these uncertainties[196] - The company faces long product development cycles in the military sector and emphasizes strict adherence to quality management systems to mitigate risks in product development[192] Subsidiaries and Investments - The company established several new subsidiaries during the reporting period, including Xi'an Jiurong Financial Services Outsourcing Co., which had no significant impact on overall operations and performance[172] - The company has made a significant equity investment of 100,000,000.00 CNY in Ningbo Jingxuan New Materials Partnership, representing a 30% stake[157] - The company disposed of several subsidiaries throughout 2021, including the disposal of Zhejiang Xuanji Co-Creation Technology Co., Ltd. in August[120] - The company is focused on enhancing liquidity through the proceeds from equity transfers[170] Technology and Innovation - The company is focused on integrating new technologies such as cloud computing, big data, and IoT into its business operations to create a digital intelligent ecosystem[184] - The company is developing a series of advanced technologies including a distributed unit 5G architecture and application technologies, which are expected to enhance market competitiveness and profitability[126] - The company is exploring new market opportunities through the development of a smart public transportation system, aimed at optimizing operations and passenger flow analysis[129] Financial Management - The company reported a significant increase in labor subcontracting costs, which accounted for 25.16% of total operating costs[114] - The company’s financing cash inflow decreased by 77.80% to ¥92,846,633.06, attributed to reduced cash received from borrowings[139] - The company has not sold any significant assets during the reporting period[168] - The company has not changed any fundraising projects during the reporting period[167]