Securities code: Dbappsecurity Co.Ltd(688023) securities abbreviation: Dbappsecurity Co.Ltd(688023) Announcement No.: 2022027 Dbappsecurity Co.Ltd(688023)
Announcement of profit distribution plan in 2021
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear legal responsibility for the authenticity, accuracy and integrity of its contents according to law.
Important content tips:
Dbappsecurity Co.Ltd(688023) (hereinafter referred to as "the company") will not make profit distribution in 2021, and the capital reserve will not be converted into share capital.
Brief reasons for no profit distribution in this year
The main reason is that the company is currently in a period of rapid development and needs to invest a lot of funds to ensure the continuous expansion of business scale and the smooth realization of R & D objectives, and continuously improve the company's technical strength and core competitiveness.
The company's 2021 annual profit distribution plan has been deliberated and approved at the 17th meeting of the second board of directors and the 15th meeting of the second board of supervisors, and needs to be submitted to the 2021 annual general meeting for deliberation. 1、 Content of profit distribution plan
Audited by Lixin Certified Public Accountants (special general partnership), as of December 31, 2021, the net profit attributable to the owner of the parent company was 138065 million yuan, and the net profit realized by the parent company was -474224 million yuan.
Fully considering that the company is currently in a period of rapid development, the continuous expansion of R & D projects and business scale and large capital demand, in order to better safeguard the long-term interests of all shareholders and ensure the capital demand and sustainable development of the company, the company plans not to distribute profits or convert capital reserve into share capital in 2021, and the remaining undistributed profits will be accumulated to the next year.
The profit distribution plan must be submitted to the general meeting of shareholders for deliberation.
2、 Description of no profit distribution in this year
The company plans not to distribute profits in 2021 due to the comprehensive consideration of the current industry situation, the company's development stage and its own business model, the company's profitability and capital demand.
(I) industry situation and characteristics of the company
As a knowledge intensive emerging industry, network information security has the characteristics of high scientific and technological content and rapid renewal and upgrading of technology and products. The main cost is labor cost. In order to ensure the sustainable development of talent cultivation and technological innovation, the company needs to maintain a high level of R & D investment. At the same time, due to the seasonal influence of the industry itself, the income is mainly concentrated in the fourth quarter. Considering the daily production and operation, potential major project investment and other aspects, it is necessary to retain a certain cash reserve.
(II) development stage and capital demand of the company
In 2021, the company achieved a total operating revenue of 1820328100 yuan, a year-on-year increase of 37.59%; The net profit attributable to the shareholders of the listed company was 138065 million yuan, a year-on-year decrease of 89.71%. At present, the company is in the growth period and its business scale is expanding. While continuously improving its core competitiveness in the fields of cloud security, big data security, Internet of things security and security services, the company also strengthens its investment in technology research and development, market development and management optimization of relevant products and platforms in strategic new directions such as data security, information creation security, terminal security and intelligent security gateway. Considering all aspects of the company's capital needs, the company needs to retain certain cash reserves to meet the needs of R & D investment and business development, so as to provide guarantee for the healthy development and stable operation of the company.
(III) reasons for low cash dividend level of the company
At present, the company is in an important stage of rapid development and needs a lot of financial support. In order to ensure the normal operation and long-term development of the company and better safeguard the long-term interests of all shareholders, the company will not pay cash dividends in 2021 and retain undistributed profits, so as to provide a reliable guarantee for the smooth implementation of the company's medium and long-term development strategy and sustainable and healthy development. The scheme does not harm the interests of the company and minority shareholders.
(IV) the exact purpose of retained undistributed profits and the estimated income of the company
At the end of 2021, the retained undistributed profits of the company will be accumulated and rolled over to the next year for R & D investment and daily operation. The company will continue to actively implement the company's profit distribution policy in strict accordance with the requirements of relevant laws and regulations, the articles of association and other relevant provisions, and in combination with the company's development stage, operation, cash flow and other factors, share the achievements of the company's development with investors, and better safeguard the long-term interests of all shareholders. 3、 Decision making procedures performed by the company
(I) convening, deliberation and voting of the board meeting
The company held the 17th meeting of the second board of directors on April 22, 2022, deliberated and approved the profit distribution plan, and agreed to submit the profit distribution plan to the 2021 annual general meeting of shareholders of the company for deliberation.
(II) opinions of independent directors
The company's profit distribution plan for 2021 is based on the comprehensive consideration of the company's industry development, the company's development stage, its own business model and capital demand. Its decision-making process is legal, in line with relevant laws and regulations, the relevant provisions of China Securities Regulatory Commission and Shanghai Stock Exchange, and in line with the guidelines for self discipline supervision of companies listed on the science and Innovation Board of Shanghai Stock Exchange No. 1 - standardized operation Relevant provisions of the articles of association. The plan takes into account the company's future capital needs and future actual situation, as well as the long-term interests of the company, the overall interests of all shareholders and the sustainable development of the company. There is no situation that damages the interests of shareholders, especially the interests of minority shareholders.
In conclusion, we unanimously agree to the company's profit distribution plan for 2021 and agree that the board of directors will submit the proposal to the general meeting of shareholders for deliberation.
(III) opinions of the board of supervisors
The board of supervisors held that the company's profit distribution plan for 2021 is based on the comprehensive consideration of the company's industry development, the company's development stage, its own business model and capital demand, in line with the relevant provisions of the self regulatory guidelines for companies listed on the science and Innovation Board of Shanghai Stock exchange No. 1 - standardized operation and the articles of association, in line with the company's business status, conducive to the company's long-term development plan, and does not harm the company and its shareholders, Especially the interests of minority shareholders. Therefore, the board of supervisors agreed to the profit distribution plan and agreed to submit the proposal to the general meeting of shareholders for deliberation.
4、 Relevant risk tips
The formulation of the company's profit distribution plan for 2021 has fully considered the company's industry situation, the company's development stage and its own business model, the company's profitability and capital demand, which is in line with the company's actual business situation, conducive to the company's sustainable development and will not have an impact on the company's normal business activities;
The profit distribution plan can only be implemented after being submitted to the 2021 annual general meeting of shareholders of the company for deliberation and approval. Please pay attention to the investment risks.
It is hereby announced.
Dbappsecurity Co.Ltd(688023) board of directors April 23, 2022
