Zhong Fu Tong (SZ:300560)2022-04-27 16:00Financial Performance - The company's operating revenue for 2021 was ¥976,926,685.73, representing a 23.05% increase compared to ¥793,944,032.08 in 2020[22]. - The net profit attributable to shareholders decreased by 11.88% to ¥72,937,665.60 in 2021 from ¥82,769,114.01 in 2020[22]. - The net profit after deducting non-recurring gains and losses was ¥67,556,233.21, down 10.00% from ¥75,066,524.64 in the previous year[22]. - The net cash flow from operating activities increased by 17.20% to ¥53,007,372.37 in 2021, compared to ¥45,227,904.45 in 2020[22]. - The total assets at the end of 2021 reached ¥2,738,311,114.00, a 38.51% increase from ¥1,976,934,548.76 at the end of 2020[22]. - The basic earnings per share decreased by 21.39% to ¥0.3223 in 2021 from ¥0.41 in 2020[22]. - The weighted average return on equity was 6.86%, down from 10.95% in 2020, indicating a decline of 4.09%[22]. - The company reported a total of 996,000 mobile communication base stations by the end of 2021, with a net increase of 650,000 during the year[32]. - The company achieved a total operating revenue of ¥976.93 million in 2021, representing a year-on-year growth of 23.05%[72]. - The information software service sector contributed ¥465.85 million, with a significant increase of 31.50% compared to the previous year[72]. - The system integration business generated revenue of ¥319.99 million, reflecting a growth of 36.03% year-on-year[72]. - Domestic revenue accounted for 98.49% of total revenue, with a year-on-year growth of 23.38%[72]. - The total revenue for 2021 was 5,507.01 million, an increase from 5,278.01 million in 2020, representing a growth of approximately 4.34%[78]. Dividend Distribution - The company reported a cash dividend of RMB 0.88 per 10 shares, totaling RMB 19,911,743.46 distributed to shareholders[6]. - The total number of shares for the dividend distribution is 226,269,812 shares[6]. - The company did not issue any bonus shares or convert capital reserves into share capital for the year 2021[6]. - The total distributable profit for the year was 315,096,321.50 RMB, with the cash dividend accounting for 100% of the profit distribution[186]. - The cash dividend distribution plan requires approval from the shareholders' meeting before implementation[186]. - The company announced a cash dividend of RMB 1.77 per 10 shares based on a total share capital of 226,269,812 shares, implemented on August 27, 2021[193]. Strategic Development and Market Position - The company aims to leverage 5G technology to provide customized communication technology products, creating new business growth points[40]. - The company is focusing on communication service business, information software service business, and channel sales business, targeting sectors like public security and judicial information[42]. - The company has expanded its communication service business across multiple provinces in China and overseas countries, including Malaysia, the Philippines, and Sri Lanka, under its strategic development plan[44]. - The company is implementing a dual development strategy of "service flywheel + digital ecosystem flywheel" to enhance resource utilization and drive growth[124]. - The company is focused on capital operations, including mergers and acquisitions, to strengthen its core business and improve operational efficiency[130]. - The company is aware of potential liquidity risks due to new channel sales that may affect cash flow if clients delay payments[131]. - The company aims to enhance its communication network service capabilities and expand its market share in 5G construction, focusing on major telecom operators like China Mobile, China Telecom, and China Unicom[125]. Research and Development - The company invested ¥48.87 million in R&D during the reporting period, focusing on emerging technologies such as 5G and artificial intelligence[68]. - Research and development expenses increased by 47.18% to ¥39,874,273.31, primarily due to the capitalization of intangible assets into R&D expenses[90]. - The company reported a research and development (R&D) expenditure of ¥48,872,490.37 in 2021, representing 5.00% of its operating revenue[99]. - The number of R&D personnel decreased slightly to 218 in 2021, with a proportion of 16.68% of total employees, up from 15.16% in 2020[99]. - A total of 23 new patents were obtained during the reporting period, indicating ongoing innovation efforts[99]. - The company is focused on integrating smart city construction with information resource sharing to enhance social governance capabilities[98]. Governance and Management - The company maintained independence in assets, personnel, finance, organization, and business from its controlling shareholder, ensuring no violations occurred[144]. - The company has established a complete and independent financial accounting system, adhering to accounting standards without interference from the controlling shareholder[147]. - The company has a governance structure that does not include any differential voting rights arrangements[152]. - The company has a total of 4 independent directors currently serving on the board[153]. - The company’s management team includes a mix of experienced professionals with varying tenures, ensuring continuity and expertise[153]. - The company has not reported any significant changes in its business strategy or market expansion plans during the reporting period[154]. - The company is focused on maintaining its current governance structure and management stability as it moves forward[152]. Operational Efficiency - The company has established a comprehensive training program to support employee development across all levels[180]. - The company has implemented employee incentive measures, including stock options and employee stock ownership plans[187]. - The company has strengthened its internal audit supervision to enhance governance and risk management[195]. - The company completed a special self-inspection of corporate governance by March 25, 2021, confirming compliance with relevant laws and regulations[199]. - The company has established a comprehensive performance evaluation system for senior management, linking their compensation to performance outcomes[194]. Risks and Challenges - The management discussed potential risks in the company's future development outlook, emphasizing the importance of investor awareness regarding investment risks[7]. - The company's future plans and strategic developments are subject to market risks and uncertainties[7]. - The company faces risks from intensified industry competition, particularly in the 5G era, which may impact its market position if it fails to innovate[135]. - The company reported accounts receivable balances of 112,019.34 million yuan at the end of 2021, representing 40.91% of total assets, highlighting potential risks related to bad debts[132].