YGSOFT(SZ:002063)2024-03-29 16:00Company Operations and Management - The company has been providing products and services for energy industry group management, influenced by the demand for information technology in the energy sector and national industry policies[2]. - The company held a total of 9 supervisory board meetings during the reporting period, all conducted in compliance with legal and regulatory requirements[10]. - The first extraordinary general meeting of 2023 had a participation rate of 33.58% and approved the election of independent directors and the appointment of internal control audit institutions[16]. - The company has established an independent financial department with a standardized financial accounting system, ensuring independent financial decision-making[15]. - The company actively monitors relevant policies and continuously explores innovative models to adapt to changes in industry regulations[2]. - The company has a dedicated investor communication strategy, ensuring fair access to information for all shareholders through various channels[12]. - The company appointed a new president and several senior vice presidents on December 27, 2023, indicating a shift in leadership[23]. - The company is focused on enhancing its operational independence, with no interference from controlling shareholders in personnel matters[12]. - The company has a commitment to transparency, regularly disclosing information through designated media to protect investors' rights[12]. - The company is preparing for potential risks associated with changes in industry policies and is developing strategies to respond effectively[2]. Financial Performance - The company reported a total revenue of 1.2 billion RMB for the fiscal year 2023, representing a year-over-year growth of 15%[43]. - The company reported a net profit margin of 18% for the fiscal year 2023, an increase from 15% in the previous year[43]. - The net profit attributable to shareholders for 2023 was ¥344,189,886.07, which is a 6.68% increase from ¥322,645,607.45 in the previous year[115]. - The net profit after deducting non-recurring gains and losses was ¥329,127,937.57, up 6.80% from ¥308,180,666.31 in 2022[115]. - Basic earnings per share for 2023 were ¥0.1807, reflecting a 6.73% increase from ¥0.1693 in 2022[115]. - The company reported a cash dividend of CNY 49,532,496, which represents 100% of the total distributable profit of CNY 910,522,034.51[33]. - The total number of shares for the cash dividend distribution is 1,905,096,000 shares, with a cash dividend of CNY 0.26 per 10 shares[33]. - The company has a clear cash dividend policy, ensuring that minority shareholders have opportunities to express their opinions and that their rights are protected[62]. - The company did not propose a cash dividend distribution plan despite reporting profits and having positive distributable profits for the parent company[62]. - The company is focused on enhancing investor returns, although specific measures were not disclosed due to the absence of cash dividends[62]. Research and Development - The company has allocated 200 million RMB for R&D in new technologies for the upcoming year, focusing on cloud computing and AI[43]. - The company has invested nearly ¥4 billion in R&D over the past decade, maintaining a R&D expenditure ratio exceeding 20% of revenue[179]. - The company has established a diverse R&D organization with four major R&D centers and a post-doctoral workstation, focusing on cutting-edge technologies such as blockchain and artificial intelligence[155]. - The company emphasizes the development of a "full-stack, full-process, and all-dimensional" self-controlled ecosystem, focusing on domestic innovation and security[149]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, with plans to enter three new countries by the end of 2024[43]. - A strategic acquisition of a local tech firm was completed in Q2 2023, enhancing the company's capabilities in AI technology[43]. - The company plans to implement a new customer loyalty program aimed at increasing retention rates by 30% over the next year[43]. - The company is actively involved in the construction of a digital power management platform, enhancing its service offerings in the electricity market[164]. - The company is committed to the "dual carbon" strategy, promoting green and low-carbon development across the energy industry chain[172]. Governance and Compliance - The company has confirmed the independence and professional competence of its auditing firm for the 2023 fiscal year[29]. - The company has proposed to continue the employment of its auditing firm, which will be submitted for board approval[29]. - The audit committee unanimously agreed that the 2022 annual audit report accurately reflects the company's operating results and financial position, with no false records or misleading statements[87]. - The company has maintained effective internal controls over financial and non-financial reporting, with no significant deficiencies reported during the period[82]. - The company has made adjustments to its governance structure, including the establishment of an investor relations management system and modifications to various committee work systems[54]. Employee and Management Remuneration - The total pre-tax remuneration for the chairman, Chen Lihao, was 161.23 million CNY, while the vice chairman, Wang Xinyong, received 25.3 million CNY[73]. - The company reported a total of 2,067.24 million CNY in remuneration for directors, supervisors, and senior management during the reporting period[77]. - The independent director, Fan Yong, received a remuneration of 10 million CNY, while the independent director, Qi Feng, also received 10 million CNY[73]. - The company has a total of 12 directors and supervisors, with varying remuneration based on their roles and performance[73]. - The company’s management remuneration is determined based on performance evaluations and industry salary standards[73]. - The total remuneration for senior management, including vice presidents and other executives, varies, with the highest being 158.67 million CNY for senior vice president Qin Xiufen[73]. - The company has implemented a performance-based remuneration system for its management team, linking pay to operational performance[73]. - The company’s board of directors is responsible for approving the remuneration plans for directors and supervisors, which are submitted to the shareholders' meeting for approval[73]. Digital Transformation and Technology - The company is committed to digital transformation and has positioned itself to leverage new technologies for business management and operational efficiency[145]. - The new generation enterprise digital core system "YuanGuang DAP" has been launched to support digital transformation for enterprises[153]. - The company has completed the construction of over 10,000 accounting entities on the smart financial shared platform, focusing on centralized systems and advanced functionalities[162]. - The intelligent data platform has established a governance system for the entire lifecycle of data, improving data quality rules with over 500 entries[197]. - The blockchain enterprise application service platform has been recognized as a high-tech product in Guangdong, with applications in various sectors including engineering and carbon footprint tracing[196]. Financial Position and Assets - Total assets at the end of 2023 amounted to ¥4,258,110,383.70, an increase of 8.54% from ¥3,923,069,237.29 in 2022[115]. - The net assets attributable to shareholders increased to ¥3,426,246,734.18, up 8.75% from ¥3,151,192,820.09 in the previous year[115]. - The company's cash flow from operating activities showed a significant decline, with a net outflow of ¥85,025,871.15 compared to a net inflow of ¥35,783,346.30 in 2022, marking a decrease of 337.61%[115]. Miscellaneous - The company has filed 1,052 patent applications and received 273 patents, including 171 invention patents, as of December 31, 2023[157]. - The government subsidies recognized in the current period amounted to 6,590,579.92 RMB, down from 11,062,685.90 RMB in the previous year, indicating a decrease of approximately 40.5%[142]. - The company has successfully passed the mid-term acceptance of the global treasury management system by the State-owned Assets Supervision and Administration Commission[162]. - The company is expanding its market presence by participating in various digital construction projects, including the South Grid's financial management system[185].