Prevail(SZ:300710)2022-04-06 16:00Financial Performance - The company reported a profit distribution plan, proposing a cash dividend of 0.00 RMB per 10 shares and a capital reserve increase of 4.5 shares per 10 shares[5]. - The total number of shares for the profit distribution plan is based on 68,614,000 shares[5]. - The company's operating revenue for 2021 was CNY 728,642,547.94, representing a 42.02% increase compared to CNY 513,041,674.52 in 2020[20]. - The net profit attributable to shareholders decreased by 48.05% to CNY 31,382,284.52 in 2021 from CNY 60,409,762.24 in 2020[20]. - The net profit after deducting non-recurring gains and losses was CNY 12,546,912.31, a significant increase of 285.44% from a loss of CNY 6,766,097.01 in 2020[20]. - The net cash flow from operating activities improved by 413.09% to CNY 67,389,311.43 in 2021 from a negative cash flow of CNY 21,523,831.76 in 2020[20]. - The total assets at the end of 2021 were CNY 1,003,229,882.15, a decrease of 3.08% from CNY 1,035,069,807.82 at the end of 2020[20]. - The net assets attributable to shareholders increased by 4.26% to CNY 671,366,083.11 at the end of 2021 from CNY 643,909,945.59 at the end of 2020[20]. - The basic earnings per share for 2021 were CNY 0.4574, down 48.05% from CNY 0.8804 in 2020[20]. - The weighted average return on equity was 4.77% in 2021, a decrease of 5.05% from 9.82% in 2020[20]. Market Expansion and Technological Development - The company is focused on expanding its market presence through technological advancements and product development[12]. - The company aims to integrate its services across telecommunications, broadcasting, and the internet, aligning with the trend of three-network convergence[12]. - The company is actively involved in the development of new technologies, including fiber-optic networks and broadband access solutions[12]. - The company is actively expanding its market presence, having entered over 20 provincial platforms in China and multiple international markets including Vietnam, Indonesia, and the USA[33]. - The company has initiated a series of cooperation agreements with China Mobile to enhance its 5G network capabilities, which includes a procurement scale of 480,000 stations[31]. - The company is focusing on the development of new technologies such as IPV6, IoT, and AI, which are expected to open new opportunities in the telecommunications market[31]. - The company has successfully upgraded its product line to include next-generation EOC and EPON/GPON products, responding to market demands[43]. - The company plans to enhance its product capabilities through the development of various digital platforms and services, focusing on user management and automated processes[69]. - The company plans to leverage existing resources and partnerships to enhance its 5G network solutions and expand into IoT applications, aiming for a strategic transformation in the next decade[82]. Risk Management and Governance - The company emphasizes the importance of accurate financial reporting and the absence of misleading statements in its annual report[4]. - The report includes a section on potential risks and countermeasures that the company may face in the future[5]. - The company has established a governance structure that includes a shareholders' meeting, board of directors, supervisory board, and senior management, ensuring effective operation and compliance with relevant laws and regulations[96]. - The company has a complete and independent asset ownership, with no assets pledged to or occupied by the controlling shareholder or related entities[98]. - The company has an independent financial department and accounting system, with separate bank accounts and independent tax obligations, ensuring financial autonomy[98]. - The company has a well-defined internal management structure, operating independently from the controlling shareholder and related entities, with no shared management or operational facilities[99]. - The company has established comprehensive internal rules and regulations to ensure effective governance and decision-making processes[97]. - The internal control system has been strengthened, with no significant deficiencies identified in financial or non-financial reporting[132]. - The company has committed to maintaining transparency and fairness in information disclosure, ensuring equal access for all shareholders[141]. Research and Development - The company has a strong R&D team with 186 technical personnel, accounting for 26.01% of total employees, and holds 38 patents, including 11 invention patents[42]. - The company has implemented an ERP system for efficient management across procurement, production, and sales, ensuring effective operational control[45]. - The company is committed to continuous technological innovation to provide comprehensive solutions for broadcasting network operators[33]. - The company is developing a 10GPON optical module that is compatible with existing technologies, aimed at enhancing system reliability and reducing maintenance costs[64]. - A new WiFi6 smart router is in trial production, focusing on improved user experience and overall wireless environment optimization[64]. - The next-generation XGPON gateway is under trial production, addressing bandwidth limitations and enhancing competitive advantages for telecom operators[64]. - R&D investment amounted to ¥39,449,240.55 in 2021, representing 5.41% of total revenue, a decrease from 9.93% in 2020[66]. Employee and Management Structure - The total number of employees at the end of the reporting period was 715, with 372 in the parent company and 343 in major subsidiaries[123]. - The company had 388 production personnel, 39 sales personnel, 186 technical personnel, 16 financial personnel, and 86 administrative personnel, totaling 715 employees[123]. - The educational background of employees included 6 with master's degrees or above, 156 with bachelor's degrees, 148 with associate degrees, and 405 with education below associate level[123]. - The company has established a salary management system that includes basic salary, performance salary, and welfare income[125]. - The company has a structured remuneration system that includes basic salary, performance salary, reward salary, and welfare subsidies[111]. - The company paid a total of CNY 3.1015 million in salaries to directors, supervisors, and senior management in 2021[112]. Shareholding and Capital Structure - The company plans to increase its share capital by 30,876,300 shares through a capital reserve transfer of 4.5 shares for every 10 shares held, raising the total share capital to 99,490,300 shares[130]. - The company reported a total distributable profit of ¥241,333,694.24, with a cash dividend amount of ¥0.00, resulting in a cash dividend ratio of 0.00%[129]. - The total number of shares is 68,614,000, with 43.52% (29,862,608 shares) being restricted shares and 56.48% (38,751,392 shares) being unrestricted shares[179]. - Major shareholder Xu Mengfei holds 23.56% of the company with 16,166,500 shares, having decreased by 767,500 shares during the reporting period[184]. - The company has a total of 6,362 shareholders at the end of the reporting period[184]. - The company confirmed that there were no significant changes in the shareholding structure or any pledges of shares by the controlling shareholders[189]. Compliance and Legal Matters - The company reported no significant litigation or arbitration matters during the reporting period[155]. - There were no major penalties or rectification issues faced by the company during the reporting period[156]. - The company did not engage in any related party transactions during the reporting period[157]. - The company has not conducted any asset or equity acquisitions or sales during the reporting period[158]. - The audit opinion for the financial statements was a standard unqualified opinion, indicating that the financial statements fairly reflect the company's financial position and operating results[196]. Sustainability and Social Responsibility - The annual report highlights the company's commitment to environmental and social responsibilities[5]. - The company is committed to sustainability initiatives, aiming to reduce operational carbon emissions by 20% over the next three years[147]. - There were no environmental penalties reported during the year, indicating compliance with environmental regulations[141]. - The company has not engaged in any targeted poverty alleviation initiatives during the reporting period[142].