OIMEC(SZ:002819)2024-04-15 15:24Financial Performance - The company's operating revenue for 2023 was ¥3,006,777,681.17, a decrease of 0.53% compared to ¥3,022,814,268.86 in 2022 [21]. - The net profit attributable to shareholders was -¥85,075,902.18, representing a decline of 109.57% from ¥888,840,608.20 in the previous year [21]. - The cash flow from operating activities showed a net outflow of -¥316,308,120.38, a decrease of 141.98% compared to -¥130,715,792.30 in 2022 [21]. - The total assets at the end of 2023 were ¥4,825,721,521.40, down 6.37% from ¥5,154,039,762.40 at the end of 2022 [21]. - The basic earnings per share for 2023 was -¥0.2806, a significant drop of 109.77% from ¥2.8712 in 2022 [21]. - The company reported a weighted average return on equity of -2.57% for 2023, a decrease of 23.36% from 20.79% in 2022 [21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥432,694,898.16, a decline of 257.68% from -¥120,972,233.67 in 2022 [21]. - The total revenue for 2023 was approximately ¥3.007 billion, a slight decrease of 0.53% compared to ¥3.023 billion in 2022 [157]. - The revenue from digital security and confidentiality dropped by 57.40% year-on-year, from ¥1.055 billion in 2022 to ¥450 million in 2023 [157]. - The revenue from the iris recognition business decreased by 38.84% year-on-year, from ¥23.81 million in 2022 to ¥14.56 million in 2023 [157]. - The company reported a net loss attributable to shareholders of approximately 33.42 million in Q1 2023, compared to a net profit of 23.11 million in Q4 2022 [159]. Business Operations - The company has not reported any changes in its main business operations since its listing [20]. - The company established two new subsidiaries in the digital security and confidentiality sector, focusing on product R&D and technical services [31]. - The company has a multi-brand and multi-product operating model, representing nearly 20 officially authorized instrument brands and over 200 brands, offering more than 3,000 types of instruments [67]. - The company has established a comprehensive service model that includes instrument sales, leasing, system integration, factoring, and bidding services, enhancing its core competitiveness [63]. - The company has expanded its factoring and bidding business through investments and acquisitions, improving its comprehensive service model in the supply chain finance and instrument procurement sectors [64]. - The company has established a nationwide marketing network with branches in over 30 major cities, ensuring timely and responsive customer service [67]. - The company has built long-term partnerships with major industry clients in the semiconductor, communication, and electronic information sectors through its instrument leasing services [75]. Research and Development - The company has over 400 software copyrights and has accumulated extensive engineering experience in information security and iris recognition [59]. - The company holds a total of 104 patents and 654 software copyrights, indicating strong research and development capabilities [136]. - The company is focusing on AI platforms and advanced technologies to support product development and reduce costs associated with customized deliveries [171]. - The company is developing a complete vehicle networking testing system aimed at enhancing competitiveness and providing specialized testing services to automotive manufacturers and suppliers [170]. - The company is focusing on the integration of big data and machine learning technologies to enhance internal network monitoring capabilities [173]. - The company increased its R&D personnel by 224, a year-on-year growth of 39.51%, with a total of 791 R&D staff, representing 42.85% of the workforce [177]. - R&D investment amounted to ¥287,399,391.85, a 45.94% increase from ¥196,934,522.99 in the previous year, accounting for 9.56% of operating revenue [178]. Market Trends and Opportunities - The digital security market is projected to grow significantly, with global cybersecurity spending expected to reach USD 189.2 billion by 2024, driven by increasing government and enterprise focus on cybersecurity [45]. - China's cybersecurity market is forecasted to reach USD 21.46 billion by 2025, with a compound annual growth rate (CAGR) of 20.5% from 2021 to 2025, the highest growth rate globally [47]. - The electronic testing and measurement industry is experiencing significant growth, particularly in the communication, semiconductor, and computer sectors, which are expected to drive market expansion in the next three years [38]. - The biometric recognition market in China surpassed CNY 26 billion in 2020, accounting for 17% of the global market [50]. - The data intelligence market in China was valued at CNY 44.2 billion in 2022, with an expected CAGR of 40%, projected to exceed CNY 100 billion by 2025 [56]. - The iris recognition market is expected to see broader applications due to increasing demands for accuracy and security in identity verification [52]. Strategic Initiatives - The company is actively participating in the formulation of national standards and has developed high-precision iris recognition devices, enhancing its competitive edge in the biometric technology market [33]. - The company aims to support the transition of network security to proactive defense and dynamic regulation, enhancing overall security capabilities [85]. - The company is committed to providing high-quality, secure mobile office solutions that meet the evolving needs of government agencies and large enterprises [110]. - The company is focusing on expanding its product offerings in iris recognition technology for various sectors, including government, finance, and education [101]. - The company aims to enhance its market presence through the development of innovative products and technologies in the iris recognition field [100]. - The company is committed to improving its capabilities in confidentiality and security, solidifying its leading position in the market [176]. Challenges and Risks - The company emphasizes the importance of risk awareness regarding future plans and performance forecasts, indicating potential risks in future operations [4]. - The payment process for clients, primarily government and state-owned entities, often experiences delays due to budget management and approval processes, particularly concentrated in the fourth quarter [124]. - The company reported a significant fair value change in financial assets, with a total of ¥802,801,130.00 at year-end, reflecting a substantial increase due to market fluctuations [190]. - The company has restricted cash of ¥60,764,866.74 due to margin and time deposits [191]. - The company has no derivative investments during the reporting period [196]. Future Outlook - The future outlook includes continuous innovation in security products and expansion of market presence to enhance data protection capabilities [85]. - The company aims to strengthen its competitive edge through continuous product development and optimization [174]. - The company is focusing on developing new products that will serve as new profit growth points in the next five years [175]. - The company is committed to expanding its market presence through new technology and product offerings, positioning itself for future growth [175].