Securities code: Wondershare Technology Group Co.Ltd(300624) securities abbreviation: Wondershare Technology Group Co.Ltd(300624) Announcement No.: 2022015 Wondershare Technology Group Co.Ltd(300624) 2021 annual report summary
1、 Important note: the summary of this annual report comes from the full text of the annual report. In order to fully understand the company’s operating results, financial status and future development plan, investors should carefully read the full text of the annual report in the media designated by the CSRC. In addition to the following directors, other directors attended the meeting of the board of directors to consider the annual report in person
Name of director not present in person position of director not present in person reason for not attending the meeting name of the entrusted person
The audit opinion of Dahua Certified Public Accountants (special general partnership) on the company’s financial report this year is: standard unqualified opinion. Changes of accounting firm during the reporting period: the accounting firm of the company changed from to Dahua accounting firm (special general partnership) this year. Tips of non-standard audit opinions □ applicable √ not applicable when the company is listed and is not profitable at present □ applicable √ not applicable to the profit distribution plan of ordinary shares or the plan of converting accumulation fund into share capital in the reporting period reviewed by the board of directors √ applicable □ not applicable the profit distribution plan of the company reviewed and approved by the board of directors this time is: the company plans not to distribute cash dividends, bonus shares or convert capital accumulation fund into share capital, Undistributed profits are carried forward to subsequent years. Preferred stock profit distribution plan for the reporting period adopted by the board of directors □ applicable √ not applicable II. Basic information of the company 1. Company profile
Stock abbreviation Wondershare Technology Group Co.Ltd(300624) stock code Wondershare Technology Group Co.Ltd(300624)
Shenzhen Stock Exchange
Contact person and contact information secretary of the board of directors securities affairs representative
Name: Sun Chun Peng Haixia
Office address: software industry, Haitian 2nd Road, Yuehai street, Nanshan District, Shenzhen software industry, Haitian 2nd Road, Yuehai street, Nanshan District, Shenzhen
10 / F, block D, building 5, base
Fax: 08916506329, 07558611773708916506329, 075586117737
Tel: 08916380624, 075586665000, 08916380624, 075586665000
E-mail [email protected]. [email protected].
2. Introduction to main business or products during the reporting period
During the same period last year, the net profit attributable to the shareholders of the listed company was 277.75 billion yuan, a decrease of 1.095% over the same period last year. Excluding the impact of the continuous appreciation of RMB exchange rate on revenue in the reporting period, the operating revenue increased by 11.40% year-on-year, and the net profit attributable to the parent company could increase by about 32 million yuan.
The main reasons for the slowdown of the company’s operating revenue in the reporting period are as follows: ① during the reporting period, the company quickly promoted the subscription transformation, and the proportion of subscription revenue in the overall sales revenue increased rapidly to about 60%. The average price of sales orders decreased year-on-year due to the fact that the annual (quarterly and monthly) purchase fee of subscribers was lower than the software license price, which had an adverse impact on the growth of the company’s operating revenue; ② Affected by the continuous global epidemic and international economic fluctuations, the growth rate of market traffic decreased significantly year-on-year, which had a certain impact on the company’s operating revenue. At the same time, the competition for market traffic became more intense, and the flow cost increased rapidly, making the growth rate of marketing expenses faster than that of operating revenue; ③ During the reporting period, the RMB exchange rate continued to appreciate, which had an adverse impact on the growth of the company’s operating revenue.
In addition to the high investment in digital technology and virtual scene, the reasons for the positive impact of the introduction of AI technology on the net profit of the listed company in the reporting period include: in addition to the year-on-year decline in the basic human and virtual technology investment of the listed company, the reasons for the strong investment in digital technology and virtual scene; Continue to promote the subscription transformation process, build and improve the subscription support platform, resulting in a year-on-year increase of 110 million in R & D expenses during the reporting period, with a year-on-year increase of 50.09%; ② The company issued convertible corporate bonds in 2021, resulting in a significant increase in financial expenses.
In the context of the complex and severe global economic situation, changes in the international financial environment and repeated epidemics in 2021, the company has always adhered to long-term ism, strengthened its original intention, focused on its main business and deeply cultivated the field of digital creative software; We will continue to tap the potential of creative software products through technological R & D, product innovation, strategic investment and other measures, promote the continuous improvement of the market competitiveness of major products, and help the digital creative industry develop in the direction of intelligent, convenient, rich, comprehensive and immersive experience. During the reporting period, the main work of the company’s management includes the following aspects:
(1) Market oriented, focus on technological innovation and product optimization, and improve the value of products and content
During the reporting period, the company released new products such as universal knowledge video demonstration and creation tool – wanxinglu performance (English Name: democreator), animation interpretation creative video software – anirel, minimalist / lightweight PDF reader (English Name: PDF reader), one-stop repair tool for video / photos / documents, wanxingyixiu (English name: repair), which enriched the company’s product matrix; At the same time, it has completed the major version upgrade of Wanxing meow shadow (English Name: PC filmora, mobile filmorago), Wanxing recovery expert (English Name: recovery), Dr. fone, mobiletrans and other products, further improved product quality and service, and consolidated the company’s comprehensive competitiveness.
The main business conditions of each product line of the company are as follows:
Video creative product line: Video creative products support windows, MacOS, iPad OS, Android, IOS, Huawei Hongmeng and other mainstream systems in the market.
During the reporting period, the company further increased the technology research and development in the field of computer vision and audio, optimized the underlying algorithms, completed the product implementation of a new generation of video technology engine Wes, increased the hardware utilization and rendering speed, and significantly improved the editing performance, specialization and scalability of the products; Strengthen the research and development of AI algorithm, launch a variety of segmentation algorithms such as portrait segmentation, and improve the speed and accuracy of function use; Launch a variety of intelligent editing schemes such as “smart card point solution” and “one click film based on editing script” to enable continuous innovation and optimization of video creative products and functions.
Wanxing meow film (English Name: filmora on PC and filmorago on mobile) has added high-level functions such as R & D curve speed change, audio and video synchronization, smart music card point and mask to improve users’ creative efficiency and enrich creative play methods; Wanxing meow continues to pre install some glory tablet products, and newly pre install some Huawei Hongmeng and Android Tablet products, effectively improving the popularity and influence of products in the Chinese market and laying the foundation for subsequent user growth; Wanxing Youzhuan (English Name: uniconverter) has added one button AI matting, tracking and cutting, automatic voice to subtitle, intelligent mute cutting, intelligent portrait cutting and other functions to enhance the technical strength of AI and enhance the competitiveness of products.
Beat, a lattice product acquired by the company Ly completed the upgrade of the underlying rendering engine and AI algorithm; Sweet selfie has completed the update of the underlying engine version 3.0, comprehensively optimized the user experience and achieved a significant increase in the global traffic of the mobile terminal. Implement beat The sales revenue of Lily and sweet selfie products increased by 98% and 38% year-on-year respectively.
During the reporting period, the company further strengthened the construction of resources and materials, and built and improved the filmstock resource operation platform. At the same time, the company actively cooperates with global well-known copyright material service providers such as pond5, jumpstory and see music, and provides users with rich and high-quality resource content such as rich video, audio, pictures, text and special effects through self-production + supplier cooperation + outsourcing of various production methods, so as to enable users to create more efficient and convenient.
The company has independently developed WEC special effects tools, combined new special effects playing methods based on algorithm technology and AE content generation ability, promoted the rapid batch production and online production of special effects, and effectively guaranteed the production of resources. By the end of the reporting period, the cumulative number of special effects resources provided had reached 100000 particles; Based on the new bottom and middle tier technical architecture, new resources are dynamically put on the real-time shelf on the resource material platform filmstock, which is on filmorav10 In version 5, the resource area is reconstructed to realize the cloud of massive resources, and enhance the content value from many aspects, such as the original material of video creation, the third-party openfx special effects and the creative temsector that can be applied with one click; The annual sales revenue of resource materials exceeded US $10 million, with a year-on-year increase of more than 90%.
Drawing creative product line: further enrich product functions and material temsectors, improve enterprise / team project management efficiency, enhance enterprise service ability and optimize user experience. Edrawmax (English Name: edrawmax) deeply strengthens the openness of the platform and optimizes the compatibility of VSS, VSD, vsdx, SVG, sketch, RP and other formats; Enrich the table, container, chart, map, formula editor and other special functions in the product; Improve the cooperation ability of products, carry out third-party platform cooperation, and launch the enterprise cooperation and management platform – Feishu. Edrawmind (English Name: edrawmind) optimizes and upgrades the file storage format, realizes real-time storage of operation steps, adds team concept and provides collaborative management function; Significantly increase community temsectors, and provide more than 87000 at the end of the reporting period, effectively enrich content materials, enhance community user experience, and enhance the community’s promotion and retention value of products.
Document creative product line: a new lightweight PDF reader is launched, and the customized data extraction, translation and conversion functions of Wanxing PDF SDK (English Name: pdfee SDK) are added. Further optimize the function and performance of Wanxing PDF. Among them, the desktop products add document comparison, touchpad signature, multi label and other functions to improve the rendering speed by 100% and the conversion quality by 50%; The mobile terminal products have many new functions, such as conversion, watermark, cutting, scanning and custom signature, which greatly improve the stability and performance of the products. The PDF team also launched open and highly customized plug-in products to optimize the functions and performance of SDK products, enhance enterprise service capabilities, and contribute to the rapid increase of b-end sales.
Utility product line: focus on the essence of user needs and overcome the technical bottleneck of the industry. Wanxing recovery expert (English Name: recovery) completed the V10 version update, newly designed the data recovery engine and bottom layer, greatly improved the product performance and recovery success rate, reduced the memory occupation by 100% and increased the scanning speed by 40%; Deeply explore the differentiated functions, optimize the experience of scanning, filtering and other module functions, expand the image and document repair functions, expand the file format, build a sample video feature library, fully cover the user’s file damage scenes, and improve the core competitiveness of products; Dr. fone is deeply engaged in the acquisition of IOS and Android ecological data, improves the performance of application data migration and data analysis, and incubates a series of products such as device password management and cloud migration; Mobiletrans took the lead in launching the line transfer and gbwhatsapp transfer functions, laying out the mobile terminal, covering more transfer scenarios, and greatly improving the transfer speed and transfer rate.
(2) Promote SaaS transformation and refine user operation
During the reporting period, the company continued to promote the transformation and upgrading of SAAS and the adaptation of internal systems, build a subscription support platform from 0 to 1, build a subscription operation mechanism based on user portraits, and complete the upgrading of the underlying architecture of the shopping cart of the e-mall. Comprehensively upgrade the transaction payment platform, improve the flexible subscription transaction ability, optimize the algorithm, intelligent pricing and refined user operation ability, prolong the user life cycle and enhance the user value contribution.
At the same time, build systematic big data capability, complete the upgrade of big data base architecture, and realize the comprehensive cloud launch of technology platform; Introduce user behavior analysis products, explore the application scenarios of intelligent algorithms, and improve the efficiency of operation decision-making. Through data-driven business development, the annual subscription revenue accounts for nearly 60% of the overall sales revenue.
(3) Global marketing upgrading, strategic government and enterprise business expansion
The company actively implements the global marketing strategy. On the one hand, it continues to deeply cultivate the European, American and Japanese markets, implements fine operation, and continuously improves the popularity and reputation of products; On the other hand, we will continue to cultivate and expand non English markets in Asia, Africa, Central America, South America, etc., mainly in China and South Korea. During the reporting period, the sales revenue in China reached about 12% of the overall sales revenue, while the sales revenue in South Korea, India and Brazil increased by about 314%, 169% and 44% respectively. The impact of overseas single market on the company’s revenue is decreasing.
The company continues to pay attention to the needs of enterprises, excavate the office scenes of different enterprise users, continuously polish the general functions of products, provide customized development and adaptation services, deepen the extended application of the company’s products in multiple vertical fields, and reach more enterprise users through a wider range of channels. During the reporting period, we continued to deepen cooperation with well-known enterprises at home and abroad such as glory and CGN; Strategic expansion of China export credit insurance, China Southern Power Grid, Guizhou power grid, Baiji Shenzhou and other foreign enterprise customers. The number of newly expanded agents of the company increased by 243% over the same period last year, realizing a year-on-year increase of 64% in the sales revenue of global government and enterprise business.
(4) Localization, fine operation and strengthening brand influence
The company deeply studies the needs of users in various regional markets around the world, and provides marketing channels, payment, websites, products, customer service and other teams
