ZUOJIANG TECH.(SZ:300799)2022-04-27 16:00Financial Performance - The company's operating revenue for 2021 was ¥118,348,876.58, a decrease of 41.04% compared to ¥200,721,987.01 in 2020[20]. - The net profit attributable to shareholders for 2021 was ¥5,664,994.12, down 93.95% from ¥93,641,617.62 in 2020[20]. - The net cash flow from operating activities was -¥54,738,867.49, a decline of 141.52% compared to ¥131,822,972.24 in 2020[20]. - The total assets at the end of 2021 were ¥795,038,344.12, a decrease of 1.23% from ¥804,960,378.10 at the end of 2020[20]. - The company reported a basic earnings per share of ¥0.06 for 2021, down 93.48% from ¥0.92 in 2020[20]. - The net profit excluding non-recurring gains and losses was ¥2,436,850.95, a decrease of 97.20% from ¥87,158,004.62 in 2020[20]. - The company achieved total revenue of ¥118,348,876.58, a decrease of 41.04% year-on-year[83]. - The net profit attributable to shareholders was ¥5,664,994.12, down 93.95% compared to the previous year[83]. - The information security sector contributed ¥115,663,143.42, accounting for 97.73% of total revenue, with a year-on-year decline of 41.97%[86]. - The company's revenue for the information security industry in 2021 was approximately ¥115.66 million, representing a decrease of 41.97% compared to the previous year[100]. Research and Development - In 2021, the company's R&D expenses increased significantly due to the growing demand for new product development and the key R&D phase of a programmable network data processing chip, impacting net profit[6]. - The company increased its R&D investment significantly in 2021 to enhance its technological foundation for future growth[35]. - The programmable network data processing chip entered a critical R&D phase in 2021, with substantial increases in related R&D expenditures[35]. - Research and development expenses increased by 70.87% to ¥63,722,618.60, reflecting the company's commitment to innovation[83]. - R&D investment accounted for 53.84% of operating revenue, significantly up from 18.58% in the previous year[110]. - The number of R&D personnel increased by 32.82% to 174, with a notable rise in the number of master's degree holders by 57.14%[110]. - The company is actively developing a new generation of network security systems, which is currently in the prototype stage[110]. - The company plans to enhance its market position with a programmable network data processing chip, which is nearing the engineering batch production phase[110]. - The company has developed several core technologies, including high-speed five-tuple authentication technology and dual-machine hot backup technology[96][99]. Market Trends and Opportunities - The company anticipates continued growth in the cybersecurity market, with an expected investment scale of $9.78 billion in 2021, projected to grow to $18.79 billion by 2025[32]. - The network security industry is projected to exceed 250 billion yuan in scale, with a compound annual growth rate of over 15%[36]. - The overall market for network security in China is experiencing a compound annual growth rate (CAGR) of over 20%, indicating rapid growth and development opportunities[38]. - The domestic broad network security market is transitioning from a market worth billions to one worth trillions, reflecting significant expansion potential[38]. - The increasing emphasis on information security by the government is expected to drive substantial investments from government, enterprises, and individuals in network security measures[40]. - The network security market is projected to maintain high growth rates over the next five years, driven by the increasing awareness of security needs among end-users[40]. - The company is focusing on expanding its market presence in response to increasing cybersecurity threats and regulatory requirements[31]. - The company aims to strengthen its market position in the network security industry, enhancing market promotion and customer expansion to increase market share[142]. Product Development and Innovation - The company is focusing on the development of new products and optimizing existing ones, with several self-developed products entering mass production in 2022[56]. - The company has a comprehensive range of cybersecurity products, including dual-host platforms and network security chips, which are designed to meet diverse client needs[60][64]. - The programmable network data processing chip developed by the company's subsidiary has a network access and processing capability of up to 100 Gbps, catering to various network service scenarios[64]. - The company is enhancing its product lines and sales systems, aiming to broaden its customer base and increase the number of clients[58]. - The company is committed to meeting customer demands while maintaining product quality and delivery timelines, aiming to create greater value for shareholders[56]. - The company is actively pursuing domestic product localization to enhance functionality and performance in line with current usage requirements[65]. - The company aims to enhance its core competitiveness through technological breakthroughs and independent innovation in the cybersecurity industry[83]. Governance and Management - The board of directors consists of 7 members, including 3 independent directors, complying with legal and regulatory requirements[155]. - The supervisory board has 3 members, including 1 employee representative, ensuring compliance with relevant laws and regulations[156]. - The company respects and protects the legitimate rights and interests of stakeholders, promoting sustainable and healthy development[157]. - The performance evaluation and incentive mechanism for senior management is transparent and gradually improved, aligning with the company's development[158]. - Independent directors have actively participated in board meetings and provided independent opinions on significant matters, with no objections raised in 2021[159]. - The company has effectively executed internal controls for information disclosure, ensuring timely and accurate information for shareholders[161]. - Investor relations management is a continuous effort, enhancing communication and interaction with investors[162]. - The company maintains independence from its controlling shareholders in terms of personnel, assets, finance, and operations[163]. - The company has established a complete and independent financial accounting system, ensuring financial independence[164]. - The company has a structured approach to governance, with dedicated roles for financial oversight and strategic direction[179]. Employee and Talent Management - The total number of employees at the end of the reporting period was 278, with 211 in the parent company and 67 in major subsidiaries[195]. - The total employee compensation for the reporting period amounted to 3.0024 million yuan, representing 10.39% of the company's operating costs[197]. - The company has 174 technical personnel, 48 production personnel, 11 sales personnel, 6 financial personnel, and 39 administrative personnel[195]. - The educational background of employees includes 48 with master's degrees or above, 149 with bachelor's degrees, 45 with associate degrees, and 36 with vocational or lower education[196]. - The company has adopted a compensation policy that aligns employee performance with overall corporate goals, promoting effective human resource allocation[197]. - The company has implemented a restricted stock incentive plan for 2021, aimed at motivating key personnel[193]. Risk Management - The company is at risk of performance decline if national information security policies change or if product quality issues arise[146]. - The company is actively managing the risk of rising raw material prices through bulk purchasing and establishing long-term supplier relationships[147]. - The company is closely monitoring the impact of the COVID-19 pandemic on its financial status and operational results[148]. - The company has not identified any risks during the supervisory activities of the supervisory board in the reporting period[194]. Shareholder and Dividend Information - The profit distribution plan approved by the board is to distribute a cash dividend of 0.10 RMB per 10 shares (including tax) based on 102,100,000 shares, with no bonus shares or capital reserve conversion[8]. - The company distributed a cash dividend of 1.35 RMB per 10 shares, totaling 13.78 million RMB (including tax) to all shareholders[200]. - The total share capital of the company is 102,080,000 shares, which serves as the basis for the dividend distribution[199].