Financial Performance - The company generated revenues of 26.7 million for the fiscal years ending December 31, 2021 and 2020, respectively, representing a growth of approximately 12.7% year-over-year[132]. - Revenue from application development services accounted for 63.3% of total revenue in fiscal 2021, down from 82.5% in fiscal 2020, indicating a shift in revenue sources[132]. - The company generated revenue from a total of 429 customers in the fiscal year ended December 31, 2021, a decrease from 602 customers in 2020[179]. - R&D expenses were approximately 2.8 million in 2020, with a team of 95 full-time R&D personnel[183]. - Sales and marketing expenses were approximately 334.5 million in 2019 and is projected to grow to 488 million in 2018 and is expected to grow at a CAGR of more than 69% from 2019 to 2025, indicating significant growth potential in this sector[135]. Strategic Initiatives - The company has begun offering Powerbridge BaaS Services since June 2019, targeting blockchain applications for government customers, indicating a strategic move into emerging technologies[132]. - The company plans to increase revenue by leveraging existing customer relationships and identifying new use cases for its solutions[140]. - The company aims to accelerate research and development by utilizing a portion of IPO proceeds to enhance disruptive technology-enabled applications[140]. - The company intends to expand into international markets by leveraging opportunities from China's Belt and Road initiative[140]. Product and Service Offerings - The company’s Powerbridge SaaS Services, launched in 2016, are designed to enhance operational efficiency and reduce costs for corporate and government customers engaged in global trade[131]. - The company provides Trade Compliance Solutions that enhance regulatory control and efficiency for government agencies[145]. - The company’s Trade Enterprise Solutions help businesses streamline operations and reduce costs in global trade[147]. - The company is developing Inward Processed Manufacturing Cloud services to optimize logistics and compliance operations for inward processed manufacturers[155]. - The Cross-Border eCommerce Cloud is designed to streamline the import and export process for cross-border eCommerce operators, logistics service providers, and payment services, currently operational for Zhuhai-Macao trade[158]. Technology and Innovation - Powerbridge is leveraging big data technologies to process and analyze large-scale global trade transaction data, utilizing ETL technologies and a distributed data warehouse architecture[176]. - The company has developed IoT applications for monitoring and controlling trade-related vehicles and containers, enhancing efficiency at checkpoints[178]. - Powerbridge is developing its proprietary BaaS Platform based on the Hyperledger Fabric framework, focusing on scalability and performance for global trade transactions[174]. - The technology platforms are built for high performance and scalability, allowing rapid expansion of solutions to meet global trade customer needs[169]. Employee and Organizational Structure - The company has a total of 198 full-time employees, with 95 in research and development, 23 in sales and marketing, 47 in technical and customer services, and 33 in general administration[191]. - Powerbridge's sales team consists of 23 full-time personnel, organized by customer type and geography, to drive market awareness and customer relationships[182]. - The company participates in various social security plans, including pension, medical, unemployment, maternity, and work-related injury insurance, as required by Chinese law[191]. - The company has not experienced any labor disputes and maintains a good working relationship with its employees[191]. Regulatory and Compliance - The company is not subject to the same reporting requirements as U.S. domestic issuers due to its status as a foreign private issuer, allowing for more lenient and less frequent reporting obligations[126]. - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to take advantage of reduced reporting requirements until it exceeds $1.07 billion in revenue[125]. - The company is subject to regulations regarding foreign investment and must comply with local laws for employee benefits and social security contributions[194][197]. - The foreign exchange capital of foreign-invested enterprises in China is currently subject to a discretionary settlement proportion of 100%[200]. Real Estate and Facilities - The company purchased a new office property in 2021 for a total contract amount of RMB 30,678,302, with RMB 20,816,526 paid in 2021[188]. - The new Zhuhai HQ Office, with a total space of 1,820 square meters, is estimated to be operational by September 2022[188]. - The company maintains multiple facilities across China, including offices in Zhuhai (1,190 m²), Wuhan (173 m²), Changsha (305 m²), Nanning (389 m²), and Hangzhou (39.5 m²)[190]. Financial Risks and Economic Factors - The Company’s functional currency is RMB, and its financial statements are presented in U.S. dollars, affecting the conversion rates for capital expenditures and working capital[341]. - The Company has not been materially affected by inflation in China, but future higher rates of inflation may impact operations[342].
Powerbridge(PBTS) - 2021 Q4 - Annual Report