QuantumCTek(SH:688027)2022-05-31 16:00Financial Performance - The company has not achieved profitability since its listing [5]. - The company's operating revenue for 2021 was ¥179,153,578.49, representing a year-on-year increase of 33.55% compared to ¥134,147,621.51 in 2020 [28]. - The net profit attributable to shareholders for 2021 was -¥37,136,215.33, a decrease of 225.93% from a profit of ¥29,488,555.46 in 2020 [28]. - The net cash flow from operating activities for 2021 was -¥64,107,297.05, a decline of 337.03% compared to ¥27,046,444.74 in 2020 [28]. - The total assets at the end of 2021 were ¥1,976,262,053.48, an increase of 2.66% from ¥1,924,965,260.18 at the end of 2020 [28]. - The net assets attributable to shareholders at the end of 2021 were ¥1,665,342,741.20, a slight decrease of 0.34% from ¥1,671,032,855.39 at the end of 2020 [28]. - The company reported no cash dividends for the fiscal year 2021 and will not increase capital reserves or issue bonus shares [8]. Research and Development - The company's R&D expenditure accounted for 50.81% of operating revenue in 2021, an increase of 5.42 percentage points from 45.39% in 2020 [31]. - Research and development expenses for the year amounted to 91.02 million RMB, a year-on-year increase of 49.47%, representing 50.81% of operating revenue [41]. - The company achieved a total R&D investment of approximately ¥91.02 million in 2021, representing a significant increase of 49.47% compared to the previous year [116]. - The proportion of total R&D investment to operating income rose to 50.81% in 2021, up from 45.39% in the previous year, indicating a stronger focus on innovation [116]. - The company obtained 37 invention patents, 15 utility model patents, and 10 design patents during the reporting period, contributing to a total of 573 intellectual property rights held [110]. - The company holds 292 authorized patents, including 108 invention patents, demonstrating a strong commitment to innovation [131]. Market Expansion and Strategy - The company plans to expand its market presence and invest in new technologies, although specific figures are not provided in the report [9]. - The company plans to continue expanding its market presence in quantum computing instruments [31]. - The company is expanding its market presence in various sectors, including mobile communications, power, finance, and industrial internet, to provide "quantum+" security services [43]. - The company is focusing on expanding its market presence through strategic partnerships and project engagements in quantum communication technology [165]. - The company aims to lead the quantum technology industry by promoting the large-scale industrialization of quantum information technology and maintaining a leading position in quantum secure communication [199]. - The company plans to enhance its core technology capabilities and promote the application of quantum security technology across various industries [200]. Operational Risks and Challenges - The company faces various operational risks, which are detailed in the report [5]. - The company has faced challenges due to changes in product sales structure and increased share-based payment expenses [31]. - The company faces risks related to market demand fluctuations for quantum communication products due to uncertainties in project timelines and the impact of the pandemic [135]. - The company is actively addressing risks from core technology personnel turnover, which could affect innovation capabilities [139]. - The company faces risks related to accounts receivable, with a large balance and negative cash flow from operations potentially impacting financial performance [140]. Partnerships and Collaborations - The strategic partnership with China Telecom has deepened, resulting in the launch of the first commercial "quantum secure communication" product [43]. - The company is involved in the construction of the national quantum communication backbone network, providing core quantum communication equipment and technical services [42]. - The company has established partnerships with research institutions to ensure the effective supply of key components [134]. Product Development and Innovation - The company launched the optimized version of the "ez-Q Engine" for superconducting quantum computing, enhancing performance and usability [44]. - The company successfully developed the "1U" compact polarization encoding QKD product, which is the first of its kind globally and has received certification from the National Cryptography Administration of China [48]. - The company launched the "Quantum Security Service Platform," capable of managing keys for millions of users, providing high-level quantum security protection for both B-end and C-end customers [49]. - The company completed the development of a 24-qubit room-temperature superconducting quantum computing control system, which was listed as a major technological equipment in Anhui Province [50]. - The company has upgraded its superconducting quantum computing room temperature control system and is extending its product line to low-temperature signal transmission systems [99]. Financial Support and Government Involvement - Government subsidies contributed CNY 84.41 million, CNY 70.88 million, and CNY 45.11 million to total profits over the past three years, indicating a significant reliance on government support [143]. - The company is recognized as a national high-tech enterprise and has received various industry awards, enhancing its brand reputation [134]. - The Chinese government is actively promoting the development of quantum technologies through policies and regulations, enhancing the industry's growth prospects [86]. Market Trends and Future Outlook - The quantum secure communication market is expected to grow from approximately ¥210 billion in 2020 to about ¥2.1 trillion by 2035, indicating a significant market expansion potential [88]. - The NISQ quantum computing market demand is projected to reach between £20 billion and £35 billion by 2027, equivalent to approximately ¥180 billion to ¥315 billion [89]. - The quantum secure communication technology has achieved a high level of maturity, with successful integration into sectors such as big data services, government information protection, and financial encryption [81]. - The quantum computing industry is still in its early stages, with significant investment and collaboration needed to address challenges in hardware, software, and algorithms [87].