AVIT(SZ:300264)2021-04-09 16:00Financial Performance - The company reported a loss in 2020 due to low demand in traditional business and high costs associated with new product development and talent acquisition [7]. - The company did not achieve significant growth in main business revenue, with ongoing efforts to strengthen cash flow and control costs [9]. - The company's operating revenue for 2020 was RMB 127,107,789.21, a decrease of 22.62% compared to RMB 164,272,181.33 in 2019 [30]. - The net profit attributable to shareholders was a loss of RMB 48,927,563.12, an improvement of 68.95% from a loss of RMB 157,573,412.49 in the previous year [30]. - The net cash flow from operating activities was RMB -16,025,306.16, a decline of 151.84% compared to RMB 30,911,445.92 in 2019 [30]. - The basic earnings per share were RMB -0.1184, showing a 68.96% improvement from RMB -0.3814 in 2019 [30]. - The total assets at the end of 2020 were RMB 393,783,428.59, down 19.38% from RMB 488,422,957.50 at the end of 2019 [30]. - The net assets attributable to shareholders decreased by 20.56% to RMB 244,424,560.52 from RMB 307,673,646.25 in 2019 [30]. - The company reported a quarterly revenue of RMB 34,309,690.05 in Q4 2020, with a net profit loss of RMB -34,179,062.63 for the same quarter [32]. - The company reported a net profit of 22,607,640.08 yuan for the year 2020, a significant increase from 4,126,870.21 yuan in 2019, marking a growth of approximately 448% [36]. - The company reported a net profit attributable to shareholders of CNY -48.93 million, an increase of 68.95% year-on-year [63]. Research and Development - The company plans to increase R&D investment to prepare for the development of 5G services and enhance its core competitiveness in the market [10]. - The company's core products are self-developed, and it emphasizes the importance of maintaining advanced technology levels through continuous R&D investment [12]. - The average R&D investment over the past three years has reached 17.76% of sales revenue, reflecting the company's commitment to innovation and product development [55]. - Research and development expenses decreased by 42.56% to approximately ¥23.46 million, primarily due to strategic adjustments and the impact of COVID-19 [81]. - The number of R&D personnel decreased to 105 in 2020, accounting for 48.17% of the total workforce, down from 64.45% in 2019 [88]. - The capitalized R&D expenditure was reported at 0.00% of total R&D investment in 2020, indicating no costs were capitalized during the year [89]. Market and Product Development - The establishment of China Broadcasting Network Co., Ltd. on October 12, 2020, marks a significant industry transition towards 5G communication, which the company views optimistically for future market growth [9]. - The company has introduced new products and expanded its business categories, laying a solid foundation for future development in the 5G and audio-visual integration communication sectors [9]. - The company is exploring new product development and market expansion strategies to improve financial performance in the coming years [30]. - The company has indicated a focus on technological advancements and potential mergers and acquisitions to enhance its market position [30]. - The company is focusing on 5G audio and video integration applications and VR hardware development, while reducing traditional set-top box business [73]. - The company launched an IP video platform solution to support various video services, integrating big data and AI for enhanced operational insights [82]. - The company launched the "JiaChuang Cloud Enterprise Broadcast" product, which provides a fully integrated live streaming solution for government and enterprise users, featuring a portable terminal for easy global live connections [86]. - The company has developed a VR180° camera system capable of delivering 12K/30fps and 8K/60fps VR live streaming, targeting sports and influencer live streaming applications [87]. Strategic Partnerships and Collaborations - The company has established a telecommunications operator division to adapt to industry changes and enhance its service capabilities [7]. - The company has formed partnerships with major telecom operators to explore VR entertainment and cloud gaming applications [64]. - The company aims to assist telecom operators in value-added operations through video technology, leveraging its long-term experience in the broadcasting sector [39]. - The company has established collaborations with multiple broadcasting enterprises to implement end-to-end panoramic video platforms, enhancing service offerings for users [90]. Operational Challenges and Risks - The company faces risks related to market competition, technology upgrades, and potential policy changes affecting its IPTV business [14][16]. - The company's financial performance is subject to seasonal fluctuations, with typically lower revenues and profits in the first quarter compared to other quarters [13]. - The company has acknowledged that the expected benefits from certain projects have not been realized due to industry slowdowns, but anticipates future revenue growth as market demand increases [108]. Governance and Compliance - The company has maintained transparency and integrity in its communications with investors, adhering to relevant regulations for information disclosure [161]. - The company has not faced any major litigation or arbitration matters during the reporting period [142]. - There were no significant penalties or rectification measures during the reporting period [144]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period [136]. - The company has not reported any significant changes in the measurement attributes of its major assets during the reporting period [102]. Shareholder Information - The total number of shares before the recent changes was 413,100,000, with 21.95% being limited shares and 78.05% being unrestricted shares [170]. - The company has seen a decrease of 11,200,775 limited shares, resulting in a new total of 79,466,297 limited shares [170]. - The total number of shareholders at the end of the reporting period was 23,327, an increase from 21,685 at the end of the previous month [172]. - The largest shareholder, Chen Kunjian, holds 24.06% of the shares, totaling 99,390,668 shares, with a decrease of 4,865,300 shares during the reporting period [173]. - The company reported no changes in the controlling shareholder or actual controller during the reporting period [175][176]. Employee and Management Information - The total remuneration paid to the board of directors, supervisors, and senior management in 2020 amounted to CNY 3.5439 million [193]. - The company employed a total of 218 staff members, with 144 in the parent company and 74 in major subsidiaries [196]. - The educational background of employees includes 13 with master's degrees, 122 with bachelor's degrees, 73 with associate degrees, and 10 with high school or lower education [197]. - The company has established a comprehensive training system to enhance employee skills and meet rapid development needs [199].