CES(SZ:300469)2022-04-29 16:00Financial Performance - The company's revenue for 2021 decreased compared to 2020, with a negative net profit attributable to shareholders, primarily due to the significant reliance on government clients in its main business lines [4]. - The company's operating revenue for 2021 was ¥421,887,031.72, a decrease of 26.24% compared to ¥571,998,524.56 in 2020 [19]. - The net profit attributable to shareholders was -¥80,519,784.68 in 2021, reflecting a decline of 26.09% from -¥63,858,650.62 in 2020 [19]. - The basic earnings per share for 2021 was -¥0.39, a decline of 25.81% from -¥0.31 in 2020 [19]. - The weighted average return on equity was -41.70% in 2021, compared to -24.07% in 2020, indicating a significant deterioration [19]. - The company's total revenue for 2021 decreased by 26.24%, marking the most significant decline since its listing, primarily due to pandemic-related delays and reduced government budgets [85]. - The East China region accounted for 82.81% of total revenue, with a year-on-year decline of 29.13% [83]. Cash Flow and Assets - The net cash flow from operating activities increased by 58.47% to ¥38,760,520.99 in 2021, compared to ¥24,459,598.36 in 2020 [19]. - The total assets at the end of 2021 were ¥977,891,265.89, down 5.37% from ¥1,033,380,890.06 at the end of 2020 [19]. - The net assets attributable to shareholders decreased by 35.04% to ¥152,816,962.66 at the end of 2021, compared to ¥235,237,473.58 at the end of 2020 [19]. - The company reported a net increase in cash and cash equivalents of ¥2,233,168.03, a significant recovery from a decrease of ¥113,739,197.78 in the previous year [104]. - Operating cash inflow totaled ¥534,767,460.66 in 2021, down 16.69% from ¥641,886,914.28 in 2020, while net cash flow from operating activities increased by 58.47% to ¥38,760,520.99 [104]. Strategic Initiatives - The company is focusing on strategic transformation and has established a strategic partnership with Jiaoxin Group, targeting the development of smart transportation and vehicle networking based on Beidou technology, which is expected to become a new growth engine [4]. - The company aims to implement the Information Development 3.0 strategy, focusing on smart transportation and smart governance using technologies like Beidou, IoT, blockchain, and big data [122]. - The company plans to explore new business opportunities in the digital archives sector, particularly in high-level digital archive construction [77]. - The company is considering strategic acquisitions and partnerships to accelerate market penetration and sustainable growth [124]. Research and Development - The company has invested significantly in R&D, with approximately 100 dedicated researchers focusing on big data and blockchain technologies [66]. - The company's R&D investment amounted to ¥44,434,765.67 in 2021, representing 10.53% of operating revenue, an increase from 8.41% in 2020 [100]. - The number of R&D personnel decreased by 24.44% from 446 in 2020 to 337 in 2021, with a notable drop in master's degree holders by 57.45% [100]. - The company successfully completed and released the iteration and upgrade of its blockchain service platform, enhancing automation and deployment capabilities [99]. Market Position and Client Base - The company has expanded its market coverage to over 50 cities with populations exceeding 1 million, benefiting over 300 million people, and has undertaken traceability projects across 12 provincial-level platforms and 14 municipal-level platforms [57]. - In 2021, the company added a total of 583 new clients across various sectors, including 177 in the archives industry, 366 in food safety, 22 in the judicial sector, and 18 in government services [69]. - The company maintains a 41% market share in the smart prison sector nationwide and a 53% market share in Shanghai's information technology services for government agencies [70]. Governance and Management - The company held a total of 1 annual general meeting and 5 extraordinary general meetings during the reporting period, ensuring equal rights for all shareholders, especially minority shareholders [127]. - The board of directors held 12 meetings during the reporting period, ensuring effective governance and decision-making [128]. - The company has a diverse board of directors with extensive experience in various sectors, including technology, finance, and management, enhancing its strategic capabilities [141]. - The company has a governance structure that does not include differential voting rights for shareholders [135]. Talent Development - The company aims to attract industry-leading talent to accelerate the development of its workforce and stimulate creativity and potential within the organization [30]. - The company emphasizes talent training and has established the "Eagle Academy" to develop high-quality talent aligned with corporate values [168]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 3.863 million [153]. Internal Control and Compliance - The company has established 19 categories of internal control regulations to enhance risk management and compliance with regulatory requirements [176]. - The internal control system is continuously optimized to align with the company's operational realities and to mitigate various risks [176]. - The company has reported no major defects in its internal control systems, indicating a strong compliance framework [186]. Future Outlook - Future guidance suggests a projected revenue growth of approximately 15% year-over-year, driven by new product launches and market expansion efforts [141]. - The company is committed to enhancing its research and development capabilities to stay competitive in the rapidly evolving technology landscape [146].