QuantumCTek(SH:688027)2021-04-19 16:00Financial Performance - The company's operating revenue for 2020 was CNY 134.15 million, a decrease of 47.98% compared to CNY 257.85 million in 2019[32]. - The net profit attributable to shareholders for 2020 was CNY 29.49 million, down 40.19% from CNY 49.31 million in 2019[32]. - The net cash flow from operating activities decreased by 84.21% to CNY 27.05 million in 2020, compared to CNY 171.27 million in 2019[32]. - Basic earnings per share for 2020 were CNY 0.43, a decline of 47.56% from CNY 0.82 in 2019[36]. - The company achieved total revenue of CNY 134.15 million in 2020, a decrease of 47.98% compared to the same period last year[139]. - Net profit attributable to shareholders was CNY 29.49 million, down 40.19% year-on-year[139]. - Operating cash flow net amount was CNY 27.05 million, a decline of 84.21% compared to the previous year[139]. - Revenue from the quantum communication industry was CNY 125.70 million, accounting for 96.11% of total revenue, with a year-on-year decrease of 50.87%[143]. - The gross margin for quantum communication products increased by 3.53 percentage points to 73.85% despite a revenue decline of 54.92%[143]. Dividend Policy - The company plans to distribute a cash dividend of RMB 1.20 per 10 shares, totaling RMB 9.6 million, which represents 32.56% of the net profit attributable to shareholders of RMB 29.49 million for the year 2020[8]. - The company has established a cash dividend policy that ensures a minimum of 30% of the average distributable profit over the last three years is distributed in cash[198]. - The company will conduct cash dividends when the audited net profit is positive and the undistributed profits at year-end are also positive, without significant capital expenditure plans[198]. R&D and Innovation - The company's R&D expenditure accounted for 45.39% of operating revenue in 2020, an increase of 15.94 percentage points from 29.45% in 2019[36]. - The total R&D investment decreased by 19.81% year-on-year, amounting to ¥60,894,950.51, primarily due to the engagement in defense custom development projects and optimized R&D management[81]. - The proportion of R&D investment to operating income increased by 15.94 percentage points to 45.39%[81]. - The company has developed key core technologies in quantum secure communication with 242 patents, including 71 invention patents and 135 utility model patents[75]. - The company has completed the design work for QKD product application technology, entering the product verification and testing phase, with a total investment of 979.2 million and a budget of 198.5 million[101]. - The company has achieved industry-leading levels in the development of a small-sized quantum communication receiving telescope, completing optical and electronic subsystems as planned, with a total investment of 822 million and a budget of 252.57 million[103]. Market and Strategic Partnerships - The company has established a joint venture with China Telecom Group to support quantum security communication services, enhancing its market presence[51]. - The company is actively involved in the development of international and national standards for quantum key distribution (QKD), with several standards approved by the International Telecommunication Union[65]. - The company is positioned to benefit from the growing demand for quantum secure communication solutions across various sectors, including finance and telecommunications[69]. - The company is focusing on expanding its market presence in sectors such as electronic government, big data, smart transportation, and industrial internet, aiming to leverage the commercial value of quantum technology[127]. Operational Risks and Governance - The company has outlined various operational risks and corresponding mitigation strategies in the report, emphasizing the importance of risk management[5]. - The company does not have any non-operating fund occupation by controlling shareholders or related parties, indicating a stable financial governance structure[10]. - There are no violations of decision-making procedures regarding external guarantees, reflecting adherence to regulatory compliance[12]. - The company has not proposed any capital reserve conversion plans for the year, focusing solely on cash dividends[8]. - The report includes a forward-looking statement risk declaration, cautioning investors about the uncertainties in future plans and strategies[9]. - The company has confirmed that all board members attended the board meeting, ensuring collective governance and decision-making[6]. - The company has not disclosed any special arrangements for corporate governance, indicating a standard governance framework[9]. Financial Position - The total assets at the end of 2020 were CNY 1.92 billion, a 54.51% increase from CNY 1.25 billion at the end of 2019[35]. - The net assets attributable to shareholders increased by 69.54% to CNY 1.67 billion in 2020, compared to CNY 985.60 million in 2019[35]. - As of the end of 2020, total assets increased by 54.51% to CNY 1,924.97 million, while total liabilities decreased by 2.35% to CNY 246.19 million, resulting in an asset-liability ratio of 12.79%[124]. - The company's net assets attributable to shareholders grew by 69.54% to CNY 1,671.03 million[124]. Challenges and Future Outlook - The company faced delays in quantum communication network construction projects due to the COVID-19 pandemic, impacting revenue significantly[36]. - The company reported a significant increase in credit impairment provisions, amounting to CNY 8.73 million more than the previous year due to lower sales collections[36]. - The company plans to continue focusing on R&D and expanding its market presence despite the challenges faced in 2020[36]. - The company faces risks related to market development and the uncertainty of quantum communication network construction, which could impact its operational performance[131].