GSAFETY(SZ:300523)2022-04-22 16:00Financial Performance - The company reported a decline in performance, with specific risks outlined in the management discussion section[4]. - The annual report covers the period from January 1, 2021, to December 31, 2021, detailing the company's financial performance and outlook[12]. - The company's operating revenue for 2021 was ¥1,539,329,118.70, a decrease of 6.71% compared to ¥1,649,980,378.21 in 2020[20]. - The net profit attributable to shareholders in 2021 was -¥159,181,899.45, representing a decline of 273.14% from a profit of ¥91,939,550.63 in 2020[20]. - The net cash flow from operating activities was -¥235,045,683.48 in 2021, a decrease of 403.37% compared to ¥77,477,271.34 in 2020[20]. - The total assets at the end of 2021 were ¥3,431,776,805.91, an increase of 13.27% from ¥3,029,842,315.34 at the end of 2020[20]. - The net assets attributable to shareholders decreased by 10.11% to ¥1,424,357,593.73 at the end of 2021 from ¥1,584,495,830.90 at the end of 2020[20]. - The basic earnings per share for 2021 was -¥0.68, a decrease of 270.00% from ¥0.40 in 2020[20]. - The company reported a quarterly revenue of ¥786,676,815.80 in Q4 2021, which was the highest among the four quarters[23]. - The net profit attributable to shareholders in Q4 2021 was ¥15,817,061.65, marking a positive turnaround after three consecutive quarters of losses[23]. Government Support and Industry Outlook - The company operates in the public safety emergency and urban safety industry, which is a key component of the national strategic emerging industries and the "14th Five-Year Plan" for new infrastructure construction[31]. - The public safety industry is experiencing rapid growth, with increasing market competition and a significant rise in the overall market size and engineering technology level since the establishment of the Ministry of Emergency Management[31]. - The government has emphasized the importance of urban infrastructure safety monitoring, leading to a significant development outlook for urban safety infrastructure[32]. - The company is aligned with national policies aimed at enhancing public safety systems, which are expected to drive the rapid development of the public safety industry[34]. - The "14th Five-Year Plan" outlines comprehensive measures for improving public safety capabilities, indicating strong governmental support for the industry[37]. Technology and Innovation - The company has successfully exported a complete set of public safety and emergency software solutions, showcasing its core technology capabilities and first-mover advantages in both domestic and international markets[32]. - The company maintains a leading market position in emergency management, urban safety, and overseas public safety sectors, with a strong focus on technology innovation and market demand[33]. - The company has established a comprehensive public safety core technology system, integrating new technologies such as big data, AI, and cloud computing into its product offerings[50]. - The company is actively developing a public safety SaaS service model, which will adopt standardized pricing based on market demand and service types[46]. - The company has developed a comprehensive natural disaster monitoring and early warning system, focusing on risk assessment and timely alerts to improve disaster response capabilities[42]. - The urban safety segment utilizes IoT technology to monitor critical infrastructure, aiming to prevent major accidents such as gas explosions and bridge collapses[43]. - The company is innovating in the firefighting sector by integrating IoT, AI, and big data technologies into its service offerings[67]. Market Expansion and International Business - The business has expanded to cover 32 provinces in China and over 300 cities, as well as international markets in Latin America, Africa, Southeast Asia, Central Asia, and along the Belt and Road Initiative[40]. - The overseas public safety division provides integrated emergency platforms and software solutions to developing countries, enhancing their public safety and social security systems[44]. - The company is actively expanding its market presence in Latin America, Africa, Southeast Asia, and Central Asia, with ongoing efforts to enhance coverage and development in these regions[49]. - The company signed new projects in multiple provinces, including Heilongjiang and Guizhou, enhancing its market presence in emergency management[63]. - The overseas public safety business signed new projects in Singapore, the Philippines, and Indonesia, despite challenges posed by the global pandemic[66]. Research and Development - The company maintained stable R&D investment in 2021, with over 280 authorized patents, including more than 70 invention patents, and over 750 software copyrights[52]. - The company achieved a 150% increase in R&D investment from ¥109,349,496.56 in 2020 to ¥147,787,672.69 in 2021[106]. - The company is focusing on enhancing its core competitiveness through technological innovation and R&D investment[164]. - The company is developing a health status management system for equipment, aimed at enhancing security monitoring in the power sector, particularly in Singapore[99]. - The company is focusing on integrating AI algorithms to optimize deep learning models for fire detection and other intelligent analysis services[105]. Corporate Governance and Management - The company has established a robust corporate governance structure, complying with relevant laws and regulations, which enhances operational transparency and accountability[154]. - The company held three shareholder meetings during the reporting period, ensuring compliance with legal procedures and protecting shareholder rights[155]. - The company has a dedicated intellectual property management team to protect its extensive IP portfolio, mitigating risks associated with IP disputes[150]. - The company emphasizes the importance of strategic management and internal collaboration to support its long-term development goals[145]. - The company has experienced a leadership transition with multiple appointments and resignations in 2021, including the appointment of Zhao Weihua as vice president[164]. Employee and Talent Management - The total number of employees at the end of the reporting period was 1,793, with 866 in the parent company and 927 in major subsidiaries[194]. - The technical personnel comprised the largest group, totaling 1,271 employees, representing approximately 71% of the total workforce[194]. - The company is implementing a training program for mid-to-senior management, focusing on unified goals and identity recognition[198]. - The company is enhancing its online learning platform, "Chen Reading Academy," to cover various training topics for all employees[199]. - The employee compensation system is designed to be fair, competitive, and dynamic, adjusting based on performance and economic factors[197]. Financial Management and Cash Flow - Operating cash inflow decreased by 11.62% to CNY 1,383,731,909.57, while cash outflow increased by 8.78% to CNY 1,618,777,593.05, resulting in a net cash flow from operating activities of -CNY 235,045,683.48, a decline of 403.37%[113]. - Investment cash inflow increased by 21.20% to CNY 558,855,632.76, with cash outflow decreasing by 44.00% to CNY 407,026,530.85, leading to a net cash flow from investing activities of CNY 151,829,101.91, an increase of 157.14%[114]. - Financing cash inflow rose by 70.89% to CNY 531,296,821.08, while cash outflow increased by 38.77% to CNY 343,652,948.32, resulting in a net cash flow from financing activities of CNY 187,643,872.76, a growth of 196.57%[114]. - The company reported a total of CNY 61,521,099.23 in restricted assets, primarily due to guarantees and loans[123]. - The company has committed to investing CNY 15,158.8 million in the smart fire integrated cloud service platform project, with CNY 3,564.99 million already invested and a cumulative investment of CNY 7,111.01 million, achieving 46.91% of the planned investment[133].