Wondershare(SZ:300624)2022-04-22 16:00Revenue and Growth - In 2021, the company achieved a total revenue exceeding RMB 1 billion, with a year-on-year growth of 11.40% in USD terms[12]. - The company has exceeded 10 billion RMB in annual revenue for 2021, with a year-on-year growth of 11.40% in USD terms[24]. - The company's operating revenue for 2021 was ¥1,029,158,102.77, an increase of 5.39% compared to ¥976,477,439.98 in 2020[117]. - Total revenue reached ¥1,029,158,102.77, representing a 5.39% increase from ¥976,477,439.98 in the previous period[195]. - Software industry revenue was ¥1,026,554,886.68, up 6.78% from ¥961,396,802.68[200]. - Video creative products generated ¥583,040,046.11, accounting for 56.65% of total revenue, with a 5.17% increase from the previous period[200]. - Distribution revenue surged by 654.55% to ¥121,368,195.61, primarily due to the acquisition of Hangzhou GeXiang[196]. - Overseas revenue constituted 88.07% of total revenue at ¥906,366,289.07, reflecting a 5.53% increase from the previous year[200]. - Direct sales revenue decreased by 7.83% to ¥463,179,559.02, representing 45.01% of total revenue[200]. - Domestic revenue (including Hong Kong, Macau, and Taiwan) was ¥122,791,813.70, with a 4.39% increase from the previous period[200]. Subscription and Revenue Model - Subscription revenue accounted for nearly 60% of total revenue in 2021, with renewal income making up 24.3% of total revenue[4]. - Subscription revenue now accounts for approximately 60% of total sales, leading to a decline in average sales order prices and impacting revenue growth negatively[170]. - The company offers a subscription model for its software, catering to both individual and enterprise users, optimizing user retention and experience[159]. - The subscription revenue accounted for nearly 60% of total sales revenue, driven by the establishment of a subscription support platform and user behavior analysis products[184]. Research and Development - The company invested approximately RMB 328 million in R&D in 2021, representing nearly one-third of total revenue, an increase of over 50% compared to 2020[5]. - The company's annual R&D expenditure reached 328 million RMB, representing nearly one-third of total revenue and an increase of over 50% compared to 2020[20]. - R&D expenses increased from RMB 156 million in 2019 to RMB 328 million in 2021, representing 22.11%, 22.39%, and 31.88% of revenue respectively[164]. - R&D efforts are directed towards integrating AI and deep learning technologies to enhance product capabilities and maintain a competitive edge[164]. - The company has a dedicated cloud platform R&D team of over 100 people, with annual investments in the millions of CNY[80]. - The company has applied for a total of 481 patents, including 434 invention patents, and has been recognized as a key software enterprise in national planning[146]. - The company has filed a total of 481 patents, including 434 invention patents, and has been granted 186 patents, with 139 being invention patents[164]. User Base and Market Presence - The active user base for the company's products reached nearly 100 million, with rapid growth expected[3]. - By the end of 2021, the company had nearly 100 million monthly active users across all products, indicating a strong user growth and a solid foundation for subscription services[14]. - The company’s products and services are sold in over 200 countries and regions globally, indicating a strong market presence and brand recognition[146]. - The company is focusing on non-English language markets, including Chinese, German, and Spanish, to diversify its revenue sources and enhance market resilience[165]. - The company has established subsidiaries in major sales regions including North America, Japan, and Singapore, expanding its global market presence[165]. Strategic Acquisitions and Investments - The company invested 214 million RMB to strategically acquire a controlling stake in Hangzhou GeXiang Technology Co., which has 1 billion users, enhancing its presence in the mobile video software market[39]. - The company completed strategic investments in Hangzhou GeXiang Technology Co., leading to over 110% revenue growth in the GeXiang business during the reporting period[190]. - The company has invested 214 million RMB in strategic acquisitions, including a controlling stake in a mobile video software company with 1 billion users[73]. Talent and Organizational Structure - By the end of 2021, the company had nearly 1,400 global employees, with a focus on attracting high-potential and high-end talent[8]. - The company has expanded its talent pool to nearly 1,400 employees globally, with a focus on high-potential and high-end talent recruitment strategies[68]. - The workforce increased by 11.07% year-on-year, with R&D personnel growing by approximately 26.65%, strengthening the company's talent strategy[191]. - The company aims to build a flexible organizational structure that combines small teams with a large platform to drive innovation and rapid deployment in various creative software segments[40]. - The company has implemented a "big platform, small team" organizational strategy to enhance operational efficiency and talent engagement[166]. Financial Performance - The net profit attributable to shareholders for 2021 was ¥27,845,527.64, a decrease of 77.77% from ¥125,237,982.65 in 2020[117]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥10,510,369.15, down 90.44% from ¥109,901,744.04 in 2020[117]. - The basic earnings per share for 2021 was ¥0.22, a decrease of 77.32% compared to ¥0.97 in 2020[117]. - The company reported a net cash flow from operating activities of ¥141,988,388.70, down 27.32% from ¥195,357,831.51 in 2020[117]. - The company’s weighted average return on equity for 2021 was 3.28%, down from 15.86% in 2020[117]. - The company’s total liabilities increased significantly, reflecting its expansion strategy and market positioning[135]. Market Trends and Projections - The global creative software market is projected to reach USD 63 billion by 2024, with a potential user base of 5 billion[12]. - The global creative software and services market is projected to reach 63 billion USD by 2024, a 50% increase from the 41 billion USD forecast for 2023[33]. - The SaaS market is projected to reach $716.52 billion by 2028, with a compound annual growth rate (CAGR) of 27.50% from 2021 to 2028; China's enterprise SaaS market is expected to grow at a CAGR of around 34%, reaching ¥130.4 billion in 2023[137]. - The global digital video content market was valued at $151.4 billion in 2021 and is expected to grow to $391.1 billion by 2027, with a CAGR of 13.38%[138]. - By 2023, the global internet video user base is projected to reach 3 billion, indicating a growing reliance on video content[139]. - The global collaborative office market was valued at $31 billion in 2019 and is expected to reach $48.1 billion by 2024, with an annual growth rate of nearly 10%; China's collaborative office market is projected to grow from over ¥50 billion in 2021 to ¥80.6 billion by 2023, with an expected growth rate exceeding 20%[143]. - The global PDF market is anticipated to reach $32 billion by 2024, with around 2 billion installations of PDF readers/editors globally[144]. - The number of smart electronic devices in use worldwide is expected to reach 6.4 billion by 2022, reflecting a 3.2% increase from 2021, with data management software demand continuing to rise[145].