Nsfocus(SZ:300369)2022-04-14 16:00Financial Performance - The company's operating revenue for 2021 was ¥2,608,995,096.45, representing a 29.80% increase compared to ¥2,010,044,336.08 in 2020[29]. - The net profit attributable to shareholders for 2021 was ¥344,541,707.28, an increase of 14.42% from ¥301,128,591.09 in 2020[29]. - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 8.64% to ¥235,867,508.01 in 2021 from ¥258,162,527.08 in 2020[29]. - The net cash flow from operating activities for 2021 was ¥75,871,779.87, a significant decrease of 82.99% compared to ¥446,115,488.46 in 2020[29]. - The total assets at the end of 2021 were ¥4,765,042,452.58, an increase of 8.94% from ¥4,373,868,083.68 at the end of 2020[29]. - The net assets attributable to shareholders at the end of 2021 were ¥3,636,090,709.45, up 3.99% from ¥3,496,691,687.45 at the end of 2020[29]. - The basic earnings per share for 2021 was ¥0.44, a 15.79% increase from ¥0.38 in 2020[29]. - The company's total revenue for the fiscal year 2021 was approximately ¥2,607,988,893.27, representing a year-on-year increase of 29.81%[110]. - The net profit attributable to shareholders for Q1 2021 was approximately -¥45,273,468.8, while the annual net profit for 2021 was approximately ¥374,833,924[104]. - Revenue from security products reached approximately ¥1,602,401,211.98, accounting for 61.42% of total revenue, with a year-on-year growth of 19.48%[108]. Market Position and Strategy - The company is positioned to benefit from the increasing demand for cybersecurity solutions driven by the growth of the digital economy and new technologies[43]. - The company holds a leading market share of 24.2% in the domestic anti-DDoS hardware security product market, according to IDC 2021[60]. - The company's WEB application firewall (WAF) system has a market share of 14.3%, ranking first in China's hardware WAF market[60]. - The company is recognized as a leading brand in the domestic cybersecurity industry and has participated in major national security projects, enhancing its market position[95]. - The company maintains a leading market share in the cybersecurity sector, consistently ranking first in market share or competitive strength in various reports[95]. - The company aims to expand and consolidate its leading position in the domestic information security industry, focusing on market strategy, technology R&D, and operational management to increase market share and brand image[156]. Product Development and Innovation - The company launched 12 new products in 2021, expanding its product categories to over 70, including solutions for cloud security, industrial security, and threat intelligence[53]. - The company has established eight laboratories dedicated to research in cloud computing security, industrial internet security, and data intelligence security, enhancing its core competitiveness[53]. - The company emphasizes independent research and development, with a strategy driven by customer needs and key technological innovations[55]. - The company launched several new products, including the Green Alliance Integrated Terminal Security Management System V6.0 and the Green Alliance Network Traffic Analysis System NTA V4.5, enhancing its competitive edge[135]. - The company is focusing on zero-trust solutions, integrating various technologies to enhance security capabilities and address diverse user scenarios[135]. Talent and Human Resources - The company faces risks related to the loss of core personnel, which could impact product development and necessitate additional resources for recruitment and training[8]. - The company emphasizes the importance of maintaining a stable core employee base through stock ownership plans and performance-based compensation systems[11]. - The company has implemented a talent development strategy to enhance employee training and retention, aiming to cultivate a skilled workforce for future growth[11]. - The number of R&D personnel increased by 33.30% year-on-year to 1,237, accounting for 27.97% of the total workforce[130]. - Total R&D investment reached ¥535,858,750.17, representing 20.54% of operating revenue, an increase from 18.18% in the previous year[132]. Risk Management - The company acknowledges the risks associated with expanding into overseas markets, including local operating environments, policies, regulations, and foreign exchange fluctuations[12]. - The company's annual report highlights the need for investors to be aware of the risks associated with seasonal revenue fluctuations and the potential impact on overall profitability[6]. - The company is subject to a 10% corporate income tax rate due to its qualification as a key software enterprise under national policies, which could be adversely affected by future changes in tax incentives[7]. Governance and Compliance - The company has held multiple shareholder meetings during the reporting period to ensure compliance with governance standards and protect shareholder interests[167]. - The company has no controlling shareholder or actual controller, ensuring independence in operations, assets, and finances[173]. - The board of directors held 11 meetings during the reporting period, adhering to established rules for effective decision-making[168]. - The supervisory board consists of 3 members, including 1 employee supervisor, and held 8 meetings in the reporting period to oversee financial and operational compliance[169]. - The company maintains a transparent information disclosure system, ensuring timely and accurate communication with all shareholders[170]. Cash Flow and Investments - Operating cash inflow totaled CNY 2,669,360,797.66, an increase of 23.26% compared to CNY 2,165,690,143.34 in 2020[136]. - Net cash flow from operating activities decreased by 82.99% to CNY 75,871,779.87 from CNY 446,115,488.46 in the previous year[139]. - Investment cash inflow increased by 15.51% to CNY 3,456,070,912.09, while investment cash outflow decreased by 15.58% to CNY 3,153,816,933.52[136]. - The net increase in cash and cash equivalents was CNY 66,037,517.42, compared to a decrease of CNY 421,201,161.22 in the previous year, marking an 11.20% improvement[136]. Awards and Recognition - The company was awarded the "2021 Excellent Application Case in Industrial Information Security" and "2021 Excellent Member Unit" by the Industrial Information Security Industry Development Alliance[68]. - The company’s data desensitization system won the "2021 Annual Network Innovation Product" award at the China Digitalization Conference[66]. - The company has received multiple awards in 2021, including the "2021 Annual Cloud Security Solution Award" and "2021 Annual Anti-Fraud Solution Award" for its innovative solutions[84]. - The company was recognized as a Representative Vendor in the Gartner 2021 Market Guide for Security Threat Intelligence Products and Services, being the only domestic vendor mentioned in the intelligence subscription service category[77].