2023 Annual Board of Directors Work Report
Beijing Zuojiang Technology Co., Ltd. (hereinafter referred to as "the Company") Board of Directors has strictly adhered to the relevant provisions of the Company Law, Securities Law, and the Articles of Association in 2023. The Board has diligently fulfilled its responsibilities assigned by the shareholders' meeting, earnestly implemented the resolutions passed by the shareholders' meeting, and worked responsibly to promote the Company's continuous, healthy, and stable development. The main work report of the Board for 2023 is as follows:
1. 2023 Operating Conditions
The economic situation both domestically and internationally in 2023 remains complex and changeable, with increasing uncertainty in global economic development and intensifying domestic competition. The Company's traditional customer business has stagnated, and new business is still in the expansion phase, leading to slow performance growth. However, in the long term, cybersecurity is crucial to national security, and the industry is expected to improve. The Company's current R&D investment is anticipated to yield returns in the future. To respond to changes in the operating environment, the Company has made efforts to expand new customers and develop new businesses, focusing on the research and promotion of new products. The Company has continued to increase R&D investment, particularly in entrusted R&D, self-developed new products, and programmable network data processing chips, while also facing challenges with accounts receivable and increased inventory impairment losses, resulting in a further increase in losses. This has had a certain adverse impact on the Company's operating performance. In 2023, the Company achieved operating revenue of 53.25 million yuan, a year-on-year decrease of 9.68%; the net profit attributable to shareholders of the listed company was -219.86 million yuan, a year-on-year decrease of 49.67%; total assets amounted to 703.02 million yuan, a year-on-year decrease of 7.17%; net assets attributable to shareholders of the listed company were 453.78 million yuan, a year-on-year decrease of 28.56%; and R&D investment was 137.29 million yuan, a year-on-year increase of 7.08%.
(1) Increase R&D Investment to Stabilize Development
In 2023, the Company's management faced difficulties and pressures but remained committed to optimizing the management structure, effectively enhancing management capabilities, strengthening internal system construction, and improving operational efficiency. The Company has continuously increased R&D investment, especially in entrusted R&D, self-developed new products, and programmable network data processing chips, organizing a competent team to tackle key technologies, accelerate new product development, and enhance product transformation capabilities to create new profit growth points. Additionally, to align with the trend of domestic production, the Company has conducted various domestic selection and adaptation work to ensure that new domestic products meet current functional and performance requirements. This lays a foundation for achieving high-level self-reliance and sustainable development. In the long term, cybersecurity is crucial to national security, and the industry is expected to improve, with the Company's current R&D investment anticipated to yield future returns.
(2) Strengthen Market Development and Optimize Industrial Layout
The Company has promoted and cooperated with multiple industry clients based on programmable network data processing chips and related products, while also conducting commercial promotion and cooperative development with general market clients, achieving certain promotional effects during the reporting period.
2. 2023 Board of Directors Work Situation
(1) Board Meeting Situation
During the reporting period, all directors of the third Board of Directors of the Company diligently, independently, and honestly performed their duties, actively attended relevant meetings, and carefully reviewed all proposals submitted to the Board. Independent directors expressed independent opinions on significant matters. A total of 9 Board meetings were held this year, with 7 members, including 3 independent directors, all of whom personally attended all meetings and carefully reviewed all proposals submitted to the Board. The specific situation is as follows: