CASIT(SZ:300678)2021-08-24 16:00Financial Performance - The company's operating revenue for the reporting period was ¥94,948,107.36, a decrease of 14.76% compared to ¥111,389,362.75 in the same period last year[30]. - The net profit attributable to shareholders of the listed company was ¥9,343,031.08, down 22.50% from ¥12,055,172.44 in the previous year[30]. - The net profit after deducting non-recurring gains and losses was ¥5,385,434.82, a decrease of 24.75% compared to ¥7,156,295.43 in the same period last year[30]. - Basic earnings per share were ¥0.0519, down 22.54% from ¥0.0670 in the same period last year[30]. - Diluted earnings per share were also ¥0.0519, reflecting a decrease of 22.54% compared to ¥0.0670 in the previous year[30]. - The weighted average return on net assets was 1.50%, down from 2.01% in the previous year, a decrease of 0.51%[30]. - The company reported a net cash flow from operating activities of -¥18,356,654.91, an improvement of 69.62% year-on-year[30]. - The total assets at the end of the reporting period were ¥786,316,447.91, a decrease of 9.34% from ¥867,367,502.17 at the end of the previous year[30]. - The net assets attributable to shareholders of the listed company were ¥616,838,184.14, showing a slight increase of 0.06% from ¥616,495,153.06 at the end of the previous year[30]. Risk Management - The management emphasized the importance of understanding the risks associated with forward-looking statements in the report[5]. - The report includes a detailed section on risks faced by the company and corresponding mitigation strategies[5]. - The company has enhanced its internal management and risk control measures, improving operational efficiency and project cost management[91][92]. - The company will continue to strengthen its governance and risk control mechanisms to manage the challenges posed by expanding business operations[193]. Industry Insights - The software and information technology service industry in China achieved a total software business revenue of 8,161.6 billion yuan in 2020, representing a year-on-year growth of 13.3%[42]. - The total profit of the software and information technology service industry reached 1,067.6 billion yuan in 2020, marking a year-on-year increase of 7.8%[42]. - The artificial intelligence market in China grew from 70.85 billion yuan in 2017 to 160.69 billion yuan in 2020, with an expected market size of over 200 billion yuan in 2021[48]. - The "14th Five-Year Plan" emphasizes the development of artificial intelligence, big data, and cloud computing, aiming to enhance the level of key software and electronic components[50]. - The integration of artificial intelligence into the real economy is expected to drive rapid growth in the AI industry, with the current level of integration in small and micro enterprises at only 38.1[52]. Product and Technology Development - The company focuses on intelligent recognition and analysis technology, providing information solutions including software and hardware, primarily in fields such as conference, tobacco, banknote detection, oil and gas, and government[53]. - The company has increased its R&D investment, led by a team from the Chinese Academy of Sciences, to maintain its leading position in high-speed machine vision and data intelligence analysis[53]. - The company is actively researching the application of new technologies such as 5G in the tobacco sector, aiming for industry upgrades from automation to intelligence[57]. - The company aims to enhance the modernization level of the tobacco industry chain, focusing on production, logistics, and supply systems, while integrating new generation information technology[101]. - The company is focusing on technological innovation and product development, aiming to integrate resources towards promising business areas and enhance its market position in the artificial intelligence sector[143]. Market Expansion and Strategy - The company is enhancing its market expansion efforts and marketing team development, leading to sustained growth in core business areas[55]. - The company is actively expanding its market coverage, establishing offices in multiple cities including Beijing, Shanghai, and Shenzhen, to strengthen its domestic marketing and service network[140]. - The company plans to expand its market in smart governance, smart cities, and intelligent manufacturing to mitigate risks from seasonal revenue fluctuations and intensified market competition[188]. - The company aims to promote solutions centered around big data management and analysis platforms to improve local government economic management efficiency[124]. Government and Subsidies - The company received government subsidies amounting to ¥4,632,170.26 during the reporting period[34]. - Government subsidies received during the reporting period totaled 4.63 million yuan, accounting for 41.07% of the total profit for the period[192]. Future Outlook - The company plans to enhance its digitalization, automation, and intelligence capabilities during the 14th Five-Year Plan period, focusing on high-quality development and technological innovation[109]. - The company anticipates that the merger with Ruijia Technology may dilute immediate returns per share if future performance does not meet expectations[197]. - The artificial intelligence core industry is projected to reach a scale of 400 billion yuan by 2025, indicating significant market potential[190].