Appo(SH:688007)2021-04-23 16:00Financial Performance - The company achieved a net profit attributable to shareholders of over 100 million yuan, maintaining revenue levels comparable to the previous year despite the pandemic's impact[5]. - The company's operating revenue for 2020 was approximately CNY 1.95 billion, a decrease of 1.53% compared to 2019[42]. - The net profit attributable to shareholders for 2020 was approximately CNY 113.85 million, down 38.94% from the previous year[42]. - The net profit after deducting non-recurring gains and losses was approximately CNY 40.29 million, a decrease of 69.98% year-on-year[42]. - The net cash flow from operating activities was approximately CNY 52.39 million, down 78.44% compared to 2019[42]. - The total assets at the end of 2020 were approximately CNY 3.23 billion, an increase of 4.09% from the end of 2019[42]. - The net assets attributable to shareholders at the end of 2020 were approximately CNY 2.09 billion, reflecting a growth of 5.93% year-on-year[42]. - The proposed cash dividend is CNY 0.55 per 10 shares, totaling approximately CNY 24.90 million, which is 21.87% of the net profit for the year[27]. - The company's basic earnings per share decreased by 44.44% to CNY 0.25 in 2020 compared to CNY 0.45 in 2019[43]. - The company's cash flow from operating activities decreased by 78.44% due to reduced collections from cinema services impacted by the COVID-19 pandemic[46]. Research and Development - In 2020, the company invested 204 million yuan in R&D, accounting for 10.49% of total annual revenue, demonstrating a commitment to technological innovation[9]. - The company holds a total of 2,191 patent applications and granted patents, with approximately 70% being invention patents, showcasing its innovation capabilities[9]. - The company focuses on independent R&D, with a team of innovative scientists addressing key technological challenges and aligning product development with market demand trends[69]. - The company has invested significantly in R&D across various areas, including thin film material preparation and optical micro-nano structure technology, to maintain a leading edge in laser display technology[84]. - The company achieved a total R&D expenditure of approximately ¥204.44 million in the reporting period, representing a 1.36% increase from the previous year[94]. - The R&D expenditure accounted for 10.49% of the company's operating revenue, reflecting a slight increase from 10.19% in the previous year[94]. Market Strategy and Growth - The company's C-end business revenue exceeded 1 billion yuan for the first time, representing over 50% of total revenue, indicating a successful shift in business strategy[12]. - The company plans to continue focusing on laser display technology breakthroughs and expand its application scenarios in the home market to enhance profitability[21]. - The company aims to enhance its knowledge property rights management and seek partnerships with leading enterprises globally to explore new growth opportunities[21]. - The company views the pandemic as an "accelerator" for strategic transformation, emphasizing the importance of innovation and market growth[18]. - The company anticipates that innovation and change will remain key themes for its development in 2021[18]. - The company plans to further develop its product lines in commercial fields, including education and security monitoring, enhancing its market presence[59]. - The company aims to expand its presence in the home market and overseas, focusing on long-term value products and services[197]. - The company plans to launch multiple new products, including laser TVs and smart projectors, to cater to a broader consumer base[198]. - The company is enhancing its overseas business, with products already in Europe, North America, and Southeast Asia, and plans to strengthen market promotion[199]. Industry Trends and Challenges - The laser display industry is in a rapid growth phase, with the company's ALPD® technology becoming the mainstream solution, establishing a solid technical advantage in performance, cost, and efficiency[79]. - The smart projection market is expected to grow at a compound annual growth rate (CAGR) of 14% from 2020 to 2024, driven by increased demand for large-screen displays[80]. - The competitive landscape in the laser display industry is intensifying, posing risks to the company's market share and profitability[140]. - The laser display industry is expected to evolve towards laserization, intelligence, and solution provision, with significant growth opportunities ahead[194]. Product Development and Innovation - The company continues to lead in the laser display technology sector with its proprietary ALPD® technology, expanding applications from high-end cinema to various commercial uses[54]. - The company has developed the ALPD 5.0 and 6.0 technologies, with ALPD 5.0 focusing on high dynamic range display and ALPD 6.0 aimed at reducing system costs, with prototypes already developed[85]. - The company launched the world's first 100-inch flexible Fresnel anti-light screen, significantly enhancing display performance and addressing transportation challenges in the laser TV market[86]. - The company’s home laser TV products now include models with a brightness of up to 4,000 lumens and a color gamut area reaching 158% NTSC, positioning them among the highest in the industry[90]. - The company has established a comprehensive procurement and production model, primarily focusing on in-house production while outsourcing certain assembly processes[73]. - The company offers "Laser as a Service" to cinema clients, alleviating their financial pressure by charging service fees based on usage time[74]. Financial Health and Assets - The company's total assets increased by 4.09% year-on-year, with overseas assets amounting to ¥387,072,801, representing 12.00% of total assets[105]. - The number of R&D personnel is 369, accounting for 31.54% of the total workforce, with an average salary of ¥32,770[104]. - The company's inventory value was 418.81 million yuan, accounting for 12.98% of total assets, with finished goods making up 33.91% of the inventory[135]. - Accounts receivable amounted to 341.66 million yuan, representing 10.59% of total assets, indicating potential risks in collection[136]. - The company reported a significant increase in inventory by 39.62% year-on-year to CNY 418.81 million, attributed to increased risk stock[175]. Customer and Supplier Dynamics - The top five customers contributed 108,824.34 million to sales, representing 55.84% of total annual sales, with a significant portion coming from related parties[165]. - The top five suppliers accounted for 38.97% of the total annual procurement, with Supplier One contributing 12.28% and Supplier Two contributing 8.31%[170].