JIAFAET(SZ:300559)2022-04-10 16:00Financial Performance - The company's operating revenue for 2021 was ¥369,697,923.12, a decrease of 37.37% compared to ¥590,333,093.94 in 2020[21]. - The net profit attributable to shareholders for 2021 was ¥82,634,205.91, down 60.72% from ¥210,352,122.31 in 2020[21]. - The net cash flow from operating activities was ¥80,343,843.77, a decline of 31.68% compared to ¥117,593,654.42 in 2020[21]. - The basic earnings per share for 2021 was ¥0.2068, a decrease of 60.72% from ¥0.5265 in 2020[21]. - The total assets at the end of 2021 were ¥1,314,456,306.07, down 5.22% from ¥1,386,857,197.55 at the end of 2020[21]. - The net assets attributable to shareholders decreased by 9.86% to ¥1,004,892,050.11 at the end of 2021 from ¥1,114,801,572.70 at the end of 2020[21]. - The company reported a negative net profit for the fourth quarter of 2021, amounting to -¥9,209,390.62[23]. - The company received government subsidies amounting to ¥2,031,928.31 in 2021, down from ¥11,060,859.77 in 2020[26]. - The weighted average return on equity for 2021 was 8.12%, a decrease of 12.34% from 20.46% in 2020[21]. - The company achieved a revenue of ¥369,697,923.12, representing a year-over-year decline of 37.37%[54]. - The net profit attributable to shareholders was ¥82,634,205.91, down 60.72% year-over-year[54]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥81,326,654.68, a decrease of 59.85% compared to the previous year[54]. Market Trends and Opportunities - The overall market space and company development are expected to improve due to favorable industry trends[6]. - The education sector is supported by national development strategies, ensuring stable government investment[6]. - The company is positioned to benefit from favorable policies such as the "14th Five-Year Plan" and digital transformation initiatives in education[6]. - The rise of human-computer interaction exams is driven by the importance of academic level tests and English speaking exams, with several provinces already implementing computer-based testing for high school academic level exams[35]. - The new college entrance examination reform, which began in 2014 and is expected to be fully implemented by 2022, will create new demands for smart education infrastructure, focusing on personalized student development[36]. - The "Double Reduction" policy and "New Infrastructure for Education" initiative are expected to enhance the demand for smart campus construction, emphasizing the need for information technology in educational settings[37]. - The integration of information technology with education is set to deepen, supported by national policies promoting smart education and digital infrastructure, which will enhance regional educational management and quality[38]. - The increasing emphasis on physical education is expected to drive the demand for sports information technology, as it is projected to become a core subject alongside language and mathematics[39][40]. - The nationwide implementation of new college entrance examination reforms necessitates the establishment of career planning education in schools, with multiple provinces already issuing related policy documents[42]. Product Development and Innovation - New product lines, including comprehensive intelligent solutions for English listening and speaking, smart sports, and career planning education, are in the early stages of market expansion[6]. - The company anticipates that the promotion of new products will enhance its product line and flexibility in business models[6]. - The company specializes in the research, development, production, and sales of educational information technology products, focusing on smart examination, smart education, and quality education, leveraging advanced technologies like AI and big data[43]. - The company's core products in smart examination services include comprehensive management platforms and various systems for exam management, identity verification, and standardized testing operations[44]. - The company has developed a range of new products, including a new generation English listening and speaking solution and a comprehensive career planning education solution, which are in the early stages of market expansion[54]. - The company has obtained 48 national patents and 360 software copyrights, showcasing its commitment to innovation[53]. - The company is actively involved in the development of examination databases and decision-making systems, anticipating a significant increase in demand for standardized examination venues due to educational reforms[34]. Strategic Initiatives and Partnerships - The company has established strategic partnerships with major channel distributors to accelerate market penetration in the sports education sector[60]. - The company is transitioning to a diversified service model, including product sales, leasing, and shared services to meet varied customer needs[68]. - The company is focusing on expanding its market presence in the education sector, targeting both administrative and student-level clients[96]. - The company is exploring partnerships with international educational institutions to broaden its service reach and enhance its curriculum offerings[184]. - The company plans to enhance its competitive advantage by focusing on the construction of comprehensive management platforms for educational examinations and standardized examination venues[149]. Risk Management - The company acknowledges potential risks in its management and has outlined countermeasures in its report[7]. - The company emphasizes the importance of rational investment and risk awareness among investors[7]. - The company is facing risks related to the dependency on the education information technology sector, which could be affected by changes in national policies[155]. - The company acknowledges the ongoing risks posed by the COVID-19 pandemic, which may affect client budgets and project timelines[158]. - The company is actively monitoring the development of the pandemic to seize related market opportunities while minimizing operational impacts[159]. Governance and Compliance - The board of directors consists of 7 members, including 3 independent directors, meeting the legal requirements[165]. - The supervisory board has 3 members, including 1 employee supervisor, complying with legal regulations[166]. - The independent directors actively participate in board meetings and committees, ensuring effective internal control and governance[167]. - The company has established a performance evaluation and incentive mechanism for senior management, linking compensation to performance[172]. - The company maintains independence from its controlling shareholders in terms of assets, personnel, and operations[173]. - The company emphasizes transparency in information disclosure, adhering to relevant regulations and maintaining good communication with investors[171]. Research and Development - The number of R&D personnel increased to 289 in 2021, a growth of 10.31% compared to 262 in 2020[112]. - R&D investment amounted to ¥54,040,130.50 in 2021, representing 14.62% of total revenue, up from 7.88% in 2020[112]. - The company has increased R&D investment to CNY 54,040,130.50, a rise of 16.21% compared to the previous year[66]. - The company is committed to increasing R&D investment to ensure continuous technological innovation and adapt to market demands[151]. - The company is actively optimizing its software algorithms to adapt to evolving cheating methods, ensuring the effectiveness of its prevention systems[97]. Employee Development - The total number of employees at the end of the reporting period was 775, with 450 in the parent company and 325 in major subsidiaries[196]. - The company adjusted the salaries of approximately 40% of its R&D personnel, aligning overall R&D compensation with market averages[199]. - The company conducted a total of 94 training programs in 2021, achieving a completion rate of over 95%[200]. - The employee composition included 289 technical personnel, 258 sales personnel, and 82 production personnel[196]. - The company has a total of 4 retired employees who are still receiving compensation[196]. Future Outlook - The company anticipates a revenue growth of 15% for the upcoming fiscal year, projecting revenues to reach approximately 235 million[178]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[180]. - A strategic acquisition of a local educational technology firm is in progress, expected to enhance the company's service offerings and user base by 25%[181]. - The company plans to accelerate the development and promotion of new products, including English speaking machine tests and smart sports education, to capture large market opportunities[154].