Bonree(SH:688229)2022-04-27 16:00Financial Performance - The company reported a revenue of CNY 133.11 million in 2021, a decrease of 4.13% compared to CNY 138.84 million in 2020[26]. - The net loss attributable to shareholders was CNY 72.96 million in 2021, a decline of 334.30% from a profit of CNY 31.14 million in 2020[26]. - The basic earnings per share for 2021 was -CNY 1.64, down 295.24% from CNY 0.84 in 2020[28]. - The company's total assets decreased by 6.34% to CNY 819.28 million at the end of 2021, compared to CNY 874.72 million at the end of 2020[27]. - The net cash flow from operating activities was -CNY 74.81 million in 2021, a decline of 375.54% from CNY 27.15 million in 2020[26]. - The company's net assets attributable to shareholders decreased by 8.19% to CNY 772.04 million at the end of 2021, compared to CNY 840.89 million at the end of 2020[27]. - The company reported a compound annual growth rate (CAGR) of 11.1% in the global Application Performance Management (APM) market, projected to reach approximately $4.48 billion by 2023[52]. - The company reported a total revenue of $93.4 million with a net income of $36.85 million for the year 2021[82]. - The company reported a total revenue of 1.5 billion in 2021, representing a year-over-year growth of 20%[170]. Research and Development - Research and development expenses accounted for 52.23% of revenue in 2021, an increase of 23.76 percentage points from 28.47% in 2020[28]. - The company achieved a total R&D expenditure of ¥69,523,044.12 in 2021, representing a significant increase of 75.90% compared to ¥39,523,251.14 in the previous year[76]. - The company has developed 27 core technologies, including "mobile APP online transaction process script recording and automatic playback technology" and "massive data high concurrency real-time access and online offline processing technology"[73]. - The company is investing $50 million in R&D for new technologies, focusing on AI and machine learning[164]. - The company has made significant advancements in machine learning technologies for performance analysis and anomaly detection, enhancing its service capabilities[72]. Operational Efficiency - The company emphasizes the importance of digital transformation and its integration with traditional industries[12]. - The implementation of online stream processing technology allows for rapid detection of anomalies within milliseconds to minutes, improving operational efficiency[14]. - The company is focusing on the development of microservices architecture, enabling independent deployment and communication of services, which enhances scalability and flexibility[16]. - The company is currently experiencing a decline in revenue from the internet-related sector, as it transitions into traditional industries, which are slower in digital transformation[26]. - The company has established a comprehensive R&D management system to ensure product quality and efficiency, following a standard software development process[51]. Market Expansion - The company has expanded its customer base beyond the internet sector to traditional industries such as finance, manufacturing, and energy, including notable clients like Huawei and State Grid Corporation[50]. - Future expansion plans include leveraging cloud computing to enhance service delivery and resource accessibility for clients[15]. - The company is focusing on penetrating traditional industries, which require longer customer cultivation and industry penetration time due to their lower level of informationization[26]. - The company plans to use raised funds for digital experience product upgrades and R&D center construction, facing potential project completion risks[97]. - The company is actively pursuing market expansion strategies to enhance its competitive position[162]. Governance and Compliance - The company has established a comprehensive governance structure, ensuring compliance and effective decision-making through regular board meetings and shareholder engagement[149]. - The company has maintained transparency by disclosing significant information accurately and timely, protecting the interests of minority investors[151]. - The company has not faced any significant competition issues from the controlling shareholder or related parties[152]. - The company’s governance structure includes a remuneration and assessment committee responsible for salary proposals[173]. - The company has not reported any instances of directors failing to attend meetings consecutively[178]. Technology and Innovation - The company is focused on developing new technologies such as AIOps to enhance IT operations efficiency[13]. - The integration of monitoring tools with automation and IT service management tools is expected to enhance IT operations management, increasing automation and flexibility[55]. - The company has developed proprietary technologies for large-scale time-series data processing and responsive analysis, facilitating rapid data storage and query capabilities[49]. - The company has developed a technology that automates the deployment and configuration of performance monitoring probes, requiring no manual intervention from users[69]. - The company is enhancing its APM product capabilities to adapt to cloud environments, which are becoming increasingly complex due to digital transformation and the adoption of new technologies like microservices and containerization[142]. Risks and Challenges - The company faces various operational risks, which are detailed in the report[4]. - The company is currently experiencing a decline in revenue from the internet-related sector, as it transitions into traditional industries, which are slower in digital transformation[26]. - The company faces risks related to potential performance declines due to high personnel turnover and increasing human resource costs if new client acquisition does not meet expectations[90]. - The company is exposed to financial risks associated with accounts receivable management, necessitating improved credit management[94]. - The company has seen an increase in accounts receivable, which poses a risk of bad debts affecting operational performance[92].