Joyware(SZ:300270)2021-04-26 16:00Financial Performance - The company achieved operating revenue of CNY 208.55 million in 2020, a decrease of 11.50% year-on-year[5]. - The total profit for the year was CNY -128.86 million, down 38.67% compared to the previous year[5]. - The net profit attributable to shareholders was CNY -115.79 million, reflecting a decline of 32.37% year-on-year[5]. - The basic earnings per share were CNY -0.39, a decline of 34.48% compared to the previous year[6]. - The total revenue after deducting certain amounts was ¥199,453,282.03 for 2020, showing a significant decline from ¥229,957,083.98 in 2019[18]. - The security segment generated ¥104,384,616.57, accounting for 50.05% of total revenue, down 35.10% from the previous year[83]. - The transportation segment saw an increase in revenue to ¥94,640,555.47, representing 45.38% of total revenue, up 36.95% year-over-year[83]. - The gross profit margin for the security segment was 10.41%, a decrease of 5.95% compared to the previous year[86]. - The company reported a total revenue of 13,715,435.1 million CNY for the year 2020, with a net profit of 339,622.65 million CNY[120]. - The company reported a net profit attributable to shareholders of -115,793,562.89 CNY for the year 2020, with a parent company net profit of -113,161,477.48 CNY[141]. Cash Flow and Assets - The net cash flow from operating activities improved to CNY 38.85 million, an increase of 145.81% compared to the previous year[5]. - The total assets at the end of 2020 were CNY 1.08 billion, a decrease of 18.25% from the previous year[6]. - The net cash flow from operating activities improved by 145.81% to CNY 38.85 million in 2020[75]. - The total assets decreased by 18.25% to CNY 1,080.70 million as of the end of 2020[75]. - The net increase in cash and cash equivalents was ¥83.51 million, representing a 348.18% increase year-on-year, attributed to higher cash recovery from operating activities[98]. - The company's cash and cash equivalents at the end of 2020 amounted to ¥220.70 million, up 52.05% from the beginning of the year[101]. - The inventory decreased by 57.72% to ¥56.09 million, mainly due to improved inventory turnover and provisions for inventory depreciation[101]. Research and Development - The company invested CNY 25.52 million in R&D, accounting for 12.24% of total revenue in 2020[77]. - Research and development expenses for 2020 amounted to ¥25,516,973.08, a decrease of 30.67% compared to the previous year due to a reduction in R&D personnel[94]. - The company is developing a video cloud platform that integrates AI algorithms and industry applications, with significant market potential[95]. - The company is focusing on recruiting industry-related technical and management talents to enhance R&D capabilities and improve product competitiveness[136]. Business Strategy and Market Position - The company aims to transition from a traditional security product provider to a comprehensive security operation and service provider integrating AI and IoT technologies[25]. - The company has maintained its status as a leading provider in the digital video transmission technology sector, focusing on smart city and public safety solutions[25]. - The company is positioned to benefit from the new smart city initiatives launched by the Henan provincial government, which aims to integrate digital economy with urbanization[127]. - The company plans to enhance its existing business by utilizing the advantages of its public platform and the resources of its new actual controller[126]. - The company aims to leverage AI video applications as a core industry IoT solution provider, enhancing its traditional business model to a more efficient "cloud service + operation" model[124]. Regulatory and Compliance Issues - The company received regulatory warnings for inaccurate disclosures and improper use of raised funds, which have since been rectified[82]. - The company faced regulatory scrutiny for improper use of raised funds by controlling shareholders[156]. - The company has fulfilled its information disclosure obligations regarding the changes in project feasibility and funding allocation[115]. - The company faced regulatory measures from the Zhejiang Securities Regulatory Bureau due to violations by the actual controller regarding fund occupation and improper use of raised funds[155]. Shareholder and Equity Changes - The company’s major shareholder, Shi Xugang, transferred 24,224,500 shares to Xinxiang Industrial Fund No. 1, changing the largest shareholder and actual controller of the company[126]. - The company plans to issue up to 90,841,800 new shares to the Xinxiang Industrial Fund No. 1, with expected total fundraising of no more than ¥530,516,112, all of which will be used to supplement working capital[128]. - The company’s shareholding structure changed, with restricted shares decreasing by 9,457,693 shares, resulting in a new total of 104,712,613 restricted shares[184]. - The company’s actual controller is expected to change to the People's Government of Xinxiang City, Henan Province, pending regulatory approvals[179]. Challenges and Industry Outlook - In 2020, the security industry faced significant challenges due to the COVID-19 pandemic, impacting survival and competition dynamics[57]. - The overall industry demand has been insufficient due to external economic factors, impacting the company's revenue growth and future outlook[112]. - The rapid development of the B-end market and the reduction in AIoT technology costs are providing new opportunities for the security industry, marking the beginning of an AI security era[60]. - The construction of smart cities is a core development focus, with China leading globally with 500 pilot cities, creating new demand for security solutions[61]. Corporate Governance and Social Responsibility - The company actively fulfills its corporate social responsibilities and maintains a stable profit distribution policy to return value to shareholders[175]. - The company has not conducted targeted poverty alleviation work in the reporting year and has no subsequent plans[177]. - The independent directors agreed with the profit distribution proposal, emphasizing the need for sustainable development[141].