Bonree(SH:688229)2022-06-01 16:00Financial Performance - The company reported no profit distribution or capital reserve transfer to share capital for the year 2021[5]. - The company has not achieved profitability since its listing[4]. - In 2021, the company achieved operating revenue of CNY 133.11 million, a decrease of 4.13% compared to 2020, primarily due to a decline in revenue from the internet-related industry[28]. - The net profit attributable to shareholders was CNY -72.96 million, a decrease of CNY 104.10 million compared to the previous year[28]. - The basic earnings per share for 2021 was CNY -1.64, a decrease of 295.24% from the previous year[27]. - The weighted average return on net assets was -9.01%, a decrease of 16.21 percentage points compared to 2020[27]. - The company's total assets at the end of 2021 were CNY 819.28 million, down 6.34% from the end of 2020[31]. - The net cash flow from operating activities was CNY -74.81 million, a decrease of CNY 101.97 million compared to the previous year[30]. - The company's net profit decreased significantly, with a decline of 9.01% and 10.29% compared to the previous year, primarily due to losses and an increase in weighted average net assets from IPO fundraising[32]. - The company's total revenue for 2021 was 133.11 million RMB, a year-on-year decrease of 4.13%[70]. Operational Strategy - The company emphasizes the importance of digital transformation and its integration with digital economy[12]. - The company aims to enhance its market presence through strategic initiatives and potential acquisitions[12]. - The company is focused on developing new technologies and products in IT operations management and application performance management[12]. - The company is expanding its market presence in Asia, targeting a 30% increase in market share within the next two years[18]. - A strategic acquisition of a tech startup was completed, enhancing the company's capabilities in cloud computing and data analytics[14]. - The company is investing $50 million in research and development for new technologies, focusing on AI and machine learning[15]. - The company is committed to enhancing its technological capabilities by continuously recruiting R&D talent, which, while not immediately revenue-generating, is expected to strengthen long-term competitiveness[39]. - The company aims for sustainable growth by investing in both sales and R&D personnel, leading to a significant increase in operating expenses despite a temporary mismatch with revenue trends[40]. Research and Development - The company's R&D expenses increased by 75.90% to CNY 69.52 million, reflecting a focus on enhancing R&D capabilities and building a more agile IT operations management system[29]. - The proportion of R&D investment to operating revenue was 52.23%, an increase of 23.76 percentage points compared to 2020[27]. - The company has developed 27 core technologies in application performance management (APM), covering five major areas: desktop data collection, mobile data collection, server data collection, data storage and analysis, and AI intelligent analysis[91]. - The company holds 8 authorized invention patents and has 80 invention patents pending, along with 77 software copyrights, showcasing its strong intellectual property system[91]. - The company is focusing on integrating AI technologies into its operations to enhance IT efficiency and automate decision-making processes[94]. Market and Customer Insights - The company is the only A-share listed company in the APM industry, with its main competitors being private companies that do not publicly disclose financial data[56]. - The company's customer base in 2021 consisted of 48.29% from internet-related industries and 51.71% from traditional industries, with a noted reduction in procurement from some internet-related clients[59]. - The company has maintained its revenue recognition policies over the past three years, with no changes in the basis for revenue recognition since the implementation of new revenue standards in 2020[54]. - The company is actively expanding its marketing network and R&D team to enhance its competitive position in the traditional industry market[55]. Risks and Challenges - The company acknowledges the risks associated with forward-looking statements regarding future plans and strategies[6]. - The company faces significant technical challenges in developing high-performance, integrated APM products that can handle large-scale data processing and analysis[87]. - The company is at risk of losing core technical personnel due to rising human resource costs and high turnover rates in the IT industry[129]. - The company is exposed to management risks associated with rapid business and personnel expansion, which may affect operational efficiency[129]. - The company must enhance customer credit management to mitigate the risk of bad debts, as the quality of accounts receivable is currently satisfactory[131]. Technology and Innovation - The company has launched Cloud Platform 1.0, significantly improving its SaaS experience by providing enterprise-level product features such as account management, permissions, and API integration[72]. - The company has developed a new intelligent unified alarm management platform, OneAlert, and an AIOps unified algorithm service platform, SwiftAI, enhancing its product and service capabilities[124]. - The technology allows for real-time analysis and intelligent monitoring of network performance data across multiple platforms, including Windows, Linux, and Android, supporting complex custom strategy tasks[99]. - The company achieved a breakthrough in mobile data collection without requiring root permissions on Android or iOS, facilitating automatic performance data capture during webpage loading[99]. - The company is focused on expanding its market presence through the development of innovative technologies that enhance user experience and operational efficiency[98]. Financial Management - The company has established a payment schedule that requires payments to be made within 30 working days after invoice receipt for various contracts[199]. - The company has a structured payment plan that includes two payments of 50% each, with the first payment due upon invoice receipt and the second within 10 working days[199]. - The company has maintained a consistent payment schedule across multiple subsidiaries, ensuring financial stability and predictability in cash flow management[200]. - The company reported a collection rate of 41.52% for accounts receivable from the top ten customers as of April 30, 2022[192].