Sinovatio(SZ:002912)2022-11-22 03:04Group 1: Business Strategy and Market Position - The company aims to capture opportunities in digital transformation and has established partnerships with multiple industry organizations in Jiangsu province [1][3]. - The management emphasizes maintaining growth in traditional markets while expanding into big data and industrial internet security sectors [3][4]. - The company has a strong focus on R&D, with approximately 66.67% of its workforce dedicated to research and development [12]. Group 2: Financial Performance and Projections - The net profit for 2021, excluding incentive costs, is projected to be CNY 304 million, which is necessary to unlock the equity incentive shares for the year [10][12]. - The first quarter of 2021 showed a net profit of CNY 41.51 million, representing a year-on-year growth of 29.24% [5]. - The company's stock price has dropped from CNY 128 to CNY 38, a decline of 70%, with a market capitalization of CNY 6.65 billion [4][6]. Group 3: Impact of External Factors - The overseas market has faced challenges due to the pandemic, but it has not severely impacted the company's operations [3][6]. - The company has segmented its overseas market and continues to deploy personnel in target countries despite the pandemic [3][6]. - The management acknowledges that the pandemic has caused delays in project confirmations and acquisitions, affecting expected performance [12]. Group 4: Shareholder Relations and Corporate Governance - The management is considering whether to use retained cash for share buybacks or continue investing in R&D to adapt to industry developments [8][12]. - The company has a policy of equity incentives to align employee interests with company growth, which has financial implications but does not affect cash flow [6][12]. - The management is committed to transparent communication with shareholders regarding stock performance and corporate governance [10][12].