TANSUN(SZ:300872)2023-04-23 16:00Financial Performance - The company's operating revenue for 2022 was ¥1,975,441,655.89, an increase of 11.22% compared to ¥1,776,093,004.39 in 2021[21]. - The net profit attributable to shareholders decreased by 38.64% to ¥60,741,347.45 in 2022 from ¥98,992,071.37 in 2021[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥16,457,659.28, down 67.55% from ¥50,722,874.06 in the previous year[21]. - The total assets at the end of 2022 were ¥3,157,392,420.80, reflecting a 6.08% increase from ¥2,976,404,919.22 at the end of 2021[21]. - The basic earnings per share for 2022 was ¥0.15, a decrease of 37.50% compared to ¥0.24 in 2021[21]. - The company reported a cash flow from operating activities net amount of -¥217,444,308.86, an improvement of 6.02% from -¥231,372,951.97 in 2021[21]. - The company received government subsidies amounting to ¥35,190,248.40 in 2022, up from ¥26,815,106.13 in 2021[26]. - The weighted average return on equity for 2022 was 2.66%, down from 4.36% in 2021[21]. - The company achieved operating revenue of 1,975.44 million yuan in 2022, representing a year-on-year growth of 11.22%, with big data-related revenue reaching 1,268.23 million yuan, up 15.02% year-on-year[54]. - Revenue from large banks with assets exceeding 1 trillion yuan accounted for 64.93% of total revenue, an increase of 3.40% compared to the previous year, indicating strong growth in this segment[55]. Research and Development - The company invested 273 million in R&D in 2022, accounting for 13.80% of its operating revenue[45]. - R&D expenses for 2022 totaled 249.55 million yuan, an increase of 5.49% year-on-year, reflecting the company's commitment to maintaining technological innovation and competitive advantage[56]. - The company completed several key R&D projects, including a new generation banking IT system and a cloud management platform, enhancing its competitive edge in the financial sector[70]. - The company has completed the development of the "Tianyang Cloud Sales Platform," aimed at providing end-to-end marketing solutions for financial institutions, enhancing overall economic efficiency and competitive capability[72]. - The company has completed the development of an intelligent management software for object storage, enhancing data security and reliability[75]. - The company plans to enhance its R&D investment to improve its technological capabilities and maintain its competitive edge in the financial technology sector[109]. Market Position and Strategy - The company operates in the financial software and IT services sector, which is encouraged by national policies for development and innovation[31]. - The overall scale of China's banking IT solutions market reached 47.959 billion yuan in 2021, representing a growth of 24.7% compared to 2020, and is expected to reach 139.011 billion yuan by 2026, with a compound annual growth rate of 23.55% from 2022 to 2026[36]. - The company has established partnerships with over 300 financial industry clients, achieving 100% coverage of major domestic banks, which enhances its market position[53]. - The company ranks fourth in the overall market competition for IT solutions in the banking sector, with its credit card and transaction banking solutions ranked first[50]. - The company is focused on expanding its sales team and marketing efforts to strengthen relationships with major banking clients and enhance business sustainability[110]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2025[139]. Governance and Management - The company has appointed Da Hua Accounting Firm as its auditor for the financial year[20]. - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management[4]. - The board of directors consists of 7 members, including 3 independent directors, with a term of three years[133]. - The company has undergone a board reshuffle, with several directors and supervisors leaving and new appointments made on October 10, 2022[132]. - The company is committed to maintaining transparency and accountability in its operations and governance practices[132]. - The company has established a comprehensive internal control framework to ensure legal compliance and asset security[173]. Risks and Challenges - The company has acknowledged potential risks including market competition, technology and product development quality, and rising human resource costs[4]. - The company faces market competition risks due to evolving IT service demands and increasing competitor capabilities in the banking IT solutions sector[110]. - The company faces a risk of rising labor costs due to the need for specialized technical talent and increasing employee numbers, which could impact operating performance if labor cost growth outpaces revenue growth[112]. - The company has fully provided for bad debt reserves for accounts receivable, but the high level of receivables poses a risk if customer credit conditions deteriorate[114]. Shareholder and Dividend Policy - The company reported a total shareholding of 88.10 million shares at the end of the reporting period, with a net increase of 39.15 million shares during the period[132]. - The company decided not to distribute cash dividends or bonus shares for 2022 due to a net cash flow from operating activities of -RMB 217,444,308.86, prioritizing cash flow for daily operations and development[166]. - The company’s cumulative undistributed profits will be used for R&D investments and daily operations, rolling over to future distributions[166]. - The company has a complete decision-making process for profit distribution, ensuring the protection of shareholders' rights[165]. Social Responsibility and Community Engagement - In June 2022, Tianyang Technology donated 147,100 RMB worth of educational materials to improve teaching environments in Tibet[181]. - The company contributed medical supplies valued at 56,000 RMB to support healthcare efforts in Tibet in August 2022[181]. - Tianyang Technology actively integrates social responsibility into its business strategy, focusing on stakeholder interests[180].