QuantumCTek(SH:688027)2021-05-13 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[30]. - Net profit attributable to shareholders decreased by 40.19% to CNY 29.49 million in 2020 from CNY 49.31 million in 2019[30]. - The net cash flow from operating activities dropped by 84.21%, amounting to CNY 27.05 million in 2020 compared to CNY 171.27 million in 2019[30]. - The company's total assets increased by 54.51% to CNY 1.92 billion at the end of 2020 from CNY 1.25 billion at the end of 2019[33]. - The net assets attributable to shareholders rose by 69.54% to CNY 1.67 billion at the end of 2020 from CNY 985.60 million at the end of 2019[30]. - Basic earnings per share decreased by 47.56% to CNY 0.43 in 2020 from CNY 0.82 in 2019[34]. - The company reported a total of ¥3.61 million in investment income from entrusted asset management in 2020, compared to ¥2.77 million in 2019[59]. - The company reported a non-operating income of approximately ¥59.76 million in 2020, compared to ¥34.61 million in 2019, indicating a significant increase[59]. - The company has received government subsidies amounting to CNY 59.48 million, CNY 84.41 million, and CNY 70.88 million over the past three years, indicating a significant reliance on government support[151]. Dividend Distribution - 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 does not plan to issue bonus shares or capital reserve transfers, focusing solely on cash dividends for the year[8]. Risk Management - The company has outlined various operational risks and corresponding mitigation measures in the report, emphasizing the importance of risk management[5]. - The report includes a forward-looking statement risk declaration, cautioning investors about potential risks associated with future plans and strategies[9]. - The company is facing risks related to market development and the uncertainty of quantum communication network construction, which could impact future performance[145]. Corporate Governance - The company reported a standard unqualified audit opinion from Rongcheng Accounting Firm, ensuring the accuracy and completeness of the financial report[7]. - The company has confirmed that all board members attended the board meeting, ensuring collective governance and decision-making[6]. - The company does not have any non-operating fund occupation by controlling shareholders or related parties, ensuring financial integrity[10]. - There are no violations of decision-making procedures regarding external guarantees, indicating compliance with regulations[10]. - The company has not disclosed any special arrangements for corporate governance, suggesting standard practices are in place[12]. Research and Development - The proportion of R&D investment to operating revenue increased by 15.94 percentage points to 45.39% in 2020 from 29.45% in 2019[34]. - The company plans to continue focusing on R&D and market expansion despite the challenges faced in 2020[34]. - R&D investment decreased by 19.81% year-on-year, totaling approximately ¥60.89 million, primarily due to the engagement in defense custom development projects and optimized R&D management[91]. - The company’s R&D investment as a percentage of operating income increased by 15.94 percentage points to 45.39%[91]. - The company has completed the development of a quantum security service platform capable of managing over one million user keys, based on QKD and QRNG technologies[88]. - The company has achieved significant advancements in quantum secure communication technology, with over 700 integrated ground fiber quantum key distribution links and two satellite-to-ground high-speed quantum key distribution links, covering a distance of 4600 kilometers[86]. Market Expansion and Strategy - The company plans to continue focusing on expanding its quantum communication technology applications, which are still in the promotion phase[41]. - The company is focusing on expanding its market presence through new product development and strategic partnerships in quantum communication technology[48]. - The company is exploring market expansion through joint ventures and partnerships in the quantum technology sector[192]. - The company has established a strategic partnership with China Telecom Group, launching a joint venture to enhance quantum security communication network construction[135]. Revenue Recognition and Contracts - The company’s revenue recognition policy ensures that income is confirmed upon project completion, with no installment income recognition for product sales[41]. - The company has contracts that stipulate payment terms of 30% of the total contract price upon delivery and receipt of VAT invoices, with subsequent payments based on product acceptance timelines[52]. - The revenue from the quantum communication projects in the Guangdong-Hong Kong-Macao Greater Bay Area amounted to 2,070.78 million, with 701.99 million received upon completion of delivery[49]. - The company recognized revenue upon customer acceptance, with no early revenue recognition practices reported for the top five customers in 2020[58]. Industry Trends and Developments - The quantum communication industry is advancing rapidly, with significant investments from major countries, including China, in quantum technology research and applications[73]. - Quantum key distribution (QKD) is the leading technology in quantum communication, providing secure communication solutions that integrate with IoT, big data, and AI[73]. - The quantum secure communication industry is characterized by rapid technological development and broad application potential, driven by national strategies and key industry trials[78]. - The international competition in quantum computing is expected to intensify, driving the development of related scientific instruments and industries[85]. Subsidiaries and Investments - The company has several subsidiaries engaged in quantum communication, with varying financial performances, including losses from Guangdong Guodun and Xinjiang Guodun[196]. - The company has a stake in Zhongdian Quantum, which reported total assets of 25,501,337.59 yuan and a net loss of 2,245,527.04 yuan[199]. - The company is involved in significant equity investments, with a total contribution of 10.8 million yuan to the joint venture[192].