CONSYS(SH:688788)2021-04-19 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥654.93 million, a decrease of 2.88% compared to ¥674.38 million in 2019[22]. - Net profit attributable to shareholders decreased by 18.77% to ¥177.06 million from ¥217.97 million in the previous year[24]. - Basic earnings per share fell by 24.21% to ¥2.9610, down from ¥3.9070 in 2019[23]. - The gross margin for main business was 69.50%, with main business costs slightly decreasing by 1.36% year-on-year[97]. - The company achieved operating revenue of 654.93 million yuan in 2020, a decrease of 2.88% compared to the previous year, primarily due to delayed orders for command control information processing equipment[83]. - The net profit attributable to the parent company was 177.06 million yuan, down 18.77% year-on-year, mainly due to a 54.35% increase in R&D expenses[83]. - The company reported a total revenue of 43,780 million RMB, with a net profit of 14,811.76 million RMB, indicating a significant increase in performance compared to the previous year[71]. Research and Development - The company increased its R&D investment significantly to ¥181.69 million, representing 27.74% of operating revenue, up from 17.46% in 2019[24]. - The total R&D investment for the year was approximately ¥181.69 million, representing a 54.35% increase compared to the previous year[63]. - R&D expenses accounted for 27.74% of the company's operating revenue, an increase of 10.28 percentage points from the previous year[63]. - The company has a total of 353 R&D personnel, representing 59.33% of its total workforce, indicating a strong commitment to research and development[49]. - The company is actively pursuing new product development and technological advancements to support its market expansion strategy[60]. - The company has established a joint laboratory with Beijing University of Posts and Telecommunications to enhance research and development capabilities[84]. - The company has developed a series of innovative core technologies in military electronic information equipment, establishing a strong brand and competitive advantage in the industry[77]. Market Position and Strategy - The company specializes in military electronic information equipment, including command control information processing devices and software radar information processing devices, serving various military branches such as the Army, Air Force, Navy, and Rocket Force[34]. - The military electronic information equipment industry is experiencing growth due to increasing defense budgets and the modernization of military capabilities in China[43]. - The company plans to expand its market presence and product offerings, focusing on new technologies and products in the upcoming year[24]. - The company aims to achieve a balance between financial stability and growth by maintaining a reasonable debt structure and effective cost management[130]. - The company is positioned to benefit from national policies supporting the development of core technologies in the military electronic information sector[52]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of 8 RMB per 10 shares, totaling approximately 60.43 million RMB, which represents 34.13% of the net profit attributable to shareholders for 2020[6]. - The dividend distribution plan was approved by the board and requires shareholder meeting approval, with a two-month deadline for distribution post-approval[136]. - No other forms of profit distribution, such as capital reserve transfers or stock dividends, will be implemented for the year 2020[135]. - The company has maintained a clear and compliant dividend policy, ensuring the protection of minority shareholders' rights[136]. Corporate Governance and Compliance - The company received a standard unqualified audit report from Lixin Certified Public Accountants[5]. - The board of directors and supervisory board members have confirmed the authenticity and completeness of the annual report[4]. - The company has not disclosed any special arrangements for corporate governance[9]. - The company emphasizes quality management and has passed multiple quality management system certifications, ensuring high product reliability and performance[79]. - The company has established a robust internal control system based on its articles of association to protect the rights of shareholders and creditors[167]. Risks and Challenges - The report includes a detailed description of potential risks, which can be found in the "Discussion and Analysis of Operating Conditions" section[4]. - The company faces risks related to technology leakage and dependency on a single product line, which could impact its competitive position and operational performance[90][88]. - The military procurement process is characterized by long cycles and high customization, leading to a certain level of exclusivity for suppliers once products are adopted[45]. Technological Innovations - The company is accelerating the development of intelligent wireless communication systems and chips, which are crucial for mobile command communication systems[36]. - The company has achieved significant competitive advantages in military information processing equipment, with successful bids for various command control information processing devices and software radar information processing devices[48]. - The company’s innovative software architecture allows application data reception latency to be no more than 10 microseconds, significantly lower than the millisecond-level latency of conventional architectures[57]. - The company has developed a high-availability disaster migration technology that achieves priority-level fault migration for military information processing devices, ensuring high availability and stability[56]. Shareholder Information - The company has a total of 58,902,878 shares after the recent increase of 2,252,204 shares, representing 77.98% of the total[176]. - The company has a total of 56,650,674 ordinary shares outstanding, representing 100% of the total shares[178]. - The company has a total of 28,652,672 shares held by Liu Jiande, representing 37.93% of the total shares[190]. - The top five customers accounted for 93.02% of the company's main business revenue, totaling 600.21 million yuan, indicating a high customer concentration risk[88].