Nsfocus(SZ:300369)2023-04-27 16:00Financial Performance - The company's operating revenue showed growth, but net profit declined, primarily due to adverse factors affecting market demand, business expansion, and collections in 2022[5]. - The company's operating revenue for 2022 was approximately ¥2.63 billion, representing a 0.76% increase compared to ¥2.61 billion in 2021[24]. - The net profit attributable to shareholders decreased by 91.77% to approximately ¥28.37 million in 2022 from ¥344.54 million in 2021[24]. - The net cash flow from operating activities was approximately ¥59.93 million, down 21.02% from ¥75.87 million in 2021[24]. - Basic and diluted earnings per share dropped by 90.91% to ¥0.04 in 2022 from ¥0.44 in 2021[24]. - The overall performance was impacted by unfavorable conditions, resulting in operating revenue not meeting expectations[5]. - The company achieved operating revenue of CNY 2,628.84 million in 2022, a slight increase compared to the previous year, with a gross margin of 62.28%, up by 0.89 percentage points[105]. - The net profit attributable to shareholders was CNY 28.37 million, a year-on-year decrease of 91.77%, while the net profit after deducting non-recurring gains and losses was CNY 10.93 million, down 95.37%[105]. - The company reported a total revenue of 2,491,768,500, with a net profit of 12,053,960 for the main subsidiary, Nsfocus Technologies[151]. Investment and R&D - The company increased investment in innovative products and solutions, focusing on cloud security, data security, and security operations, leading to a significant rise in employee numbers and R&D expenses[5]. - The company emphasizes ongoing investment in R&D and marketing to enhance product competitiveness and market coverage[5]. - Research and development (R&D) investment reached approximately ¥679 million in 2022, accounting for 25.83% of total revenue, an increase from 20.54% in 2021[133]. - The number of R&D personnel increased by 24.01% year-over-year, reaching 1,534, with a notable rise in the proportion of personnel holding master's degrees to 32.62%[133]. - The company plans to strengthen its R&D capabilities and deepen technological innovation, with a focus on enhancing product competitiveness over the next few years[157]. - The company is focusing on developing a code auditing product for the financial industry, which has completed pilot projects and aims to enhance security capabilities in the software supply chain[131]. - The company launched multiple new products, including a next-generation vulnerability lifecycle management platform and a multi-cloud security solution, enhancing its market competitiveness[132]. Market Position and Strategy - The company maintained its core competitiveness, aligning with the development trends of the cybersecurity industry[5]. - The company continues to invest in key sectors such as telecommunications, government, finance, energy, and large enterprises[5]. - The company is actively expanding its international business, focusing on globally competitive services such as T-level global cloud cleaning services and automated penetration testing services[44]. - The company has established over 50 domestic branches and international subsidiaries in key locations including Silicon Valley, Tokyo, London, Singapore, and São Paulo[44]. - The company aims to expand its market presence and invest in new technologies to enhance its competitive edge in the industry[190]. - The company is actively pursuing mergers and acquisitions to strengthen its market position and technological capabilities[177]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2024[184]. Risk Management and Compliance - The report highlights potential risks in operations and corresponding countermeasures, urging investors to remain aware of these risks[7]. - The company faces uncertainty regarding its ability to continue as a going concern, as indicated by the negative net profit figures over the last three years[24]. - The company is committed to maintaining compliance with various cybersecurity regulations and standards, enhancing its service offerings accordingly[52]. - The company benefits from tax incentives as a high-tech enterprise, but any adverse changes in national policies could negatively impact its operating performance[160]. Corporate Governance - The board of directors convened 11 meetings during the reporting period, ensuring effective governance and decision-making[167]. - The supervisory board held 8 meetings, maintaining oversight of the company's financial status and management actions[168]. - The company has no controlling shareholder or actual controller, ensuring independence in operations and governance[170]. - The company disclosed information in a timely and accurate manner, ensuring transparency for all shareholders[169]. - The company has established a complete and independent organizational structure, with clear separation of assets from shareholders[171]. Employee and Workforce Management - The company has a total of 85,350 employees as of the latest report[175]. - The company has established a comprehensive compensation system based on fairness and competitiveness, including both cash and non-cash income[200]. - Stock option and restricted stock incentives are provided primarily to core technical staff and mid-to-senior management[200]. - The company’s employee stock ownership plan and stock option incentive plan were reviewed and approved during the reporting period[196]. Industry Trends and Future Outlook - The digital economy is becoming a new driving force for the development of the cybersecurity industry, supported by various national policies[35]. - The growth of the cybersecurity industry is driven by national policies and the increasing importance of digital security in emerging technologies such as AI and cloud computing[85]. - Future guidance suggests a continued upward trend in revenue, with expectations for further market expansion[177]. - The company provided a future outlook, projecting a revenue growth of 20% for 2023, driven by new product launches and market expansion strategies[186].