KYLAND(SZ:300353)2021-04-28 16:00Financial Performance - The company reported a significant decline in revenue and net profit due to the impact of COVID-19, industry policy changes, and intensified competition, with a total impairment of goodwill amounting to RMB 547.89 million[7]. - Revenue was reduced by RMB 162 million due to price adjustments in major defense projects, affecting previously recognized income[7]. - The company's operating revenue for 2020 was ¥534,959,995.61, a decrease of 34.44% compared to ¥815,987,277.81 in 2019[21]. - The net profit attributable to shareholders was -¥913,051,131.53, representing a decline of 106.83% from -¥441,458,671.39 in the previous year[21]. - The net cash flow from operating activities was -¥39,281,900.62, a significant drop of 207.97% compared to ¥36,383,400.39 in 2019[21]. - The total assets at the end of 2020 were ¥2,487,042,619.13, down 24.10% from ¥3,276,754,145.26 at the end of 2019[21]. - The net assets attributable to shareholders decreased by 53.09% to ¥806,644,722.29 from ¥1,719,572,583.44 in 2019[21]. - The company reported a basic and diluted earnings per share of -¥1.79, a decline of 108.43% from -¥0.86 in 2019[21]. - The company’s weighted average return on equity was -70.86%, a decrease of 48.83% from -22.03% in the previous year[21]. - The company’s revenue after deducting certain amounts was ¥525,884,406.59, compared to ¥809,764,490.38 in 2019[21]. - The company achieved a significant increase in construction in progress, rising by CNY 1.64 million, a growth of 784.89%, due to the development of the Yichang Industrial Internet Industrial Park[55]. - The company reported a significant revenue reduction of 162 million yuan due to price adjustments in its defense business[63]. - The company reported a net loss of approximately RMB 913 million for 2020, with no profit distribution or capital reserve increase planned[158]. Research and Development - Research and development investment reached RMB 225.22 million, representing a year-on-year increase of 15.71%[7]. - The company invested over 15% of its revenue in R&D, with 513 R&D personnel accounting for 33.16% of the total workforce, enhancing its core competitiveness in industrial internet technologies[56]. - The company applied for 168 new patents in 2020, including 126 granted invention patents, reflecting its commitment to intellectual property protection and innovation[58]. - The company increased its R&D investment to 225.22 million yuan, a year-on-year growth of 15.71%, to enhance its technological advantages[69]. - R&D expenses grew by 16.33% to ¥188.64 million, representing 42.10% of total revenue, as the company continued to enhance its industrial internet product development[100][102]. - The number of R&D personnel decreased to 513, accounting for 33.16% of total staff, while R&D investment reached ¥225.22 million, up 15.71% from the previous year[102]. - The company is committed to increasing its R&D investment and fostering collaboration with academic institutions to maintain its technological leadership[146]. Business Strategy and Operations - Despite the overall decline, the core civil industrial internet business maintained year-on-year growth, indicating resilience in the main business operations[7]. - The company emphasized the importance of industrial internet as a key driver for the digital transformation of manufacturing, with significant growth potential in the sector[7]. - The company plans to enhance research efficiency and optimize supply chain management to improve profitability and operational efficiency[9]. - The company aims to strengthen market promotion of new products and businesses to create new profit growth points[9]. - Future plans and strategies outlined in the report are subject to risks, and investors are advised to remain cautious[9]. - The company focuses on the research, production, and sales of core hardware and software technologies for the industrial internet, aiming to create application solutions across various industries[30]. - The company launched the "Edge Super Brain" smart city solution based on industrial-grade networks and edge computing in 2020[40]. - The company is actively involved in the construction of urban underground comprehensive pipeline corridors, securing projects in cities like Gongzhuling and Chifeng[40]. - The company has established itself as a leading player in the industrial Ethernet communication field, transitioning from a specialized supplier to a comprehensive solution provider in industrial internet technologies[53]. - The company is focusing on the digital transformation and industrial internet as key growth areas amid global technological competition[133]. - The company plans to expand its market share by optimizing and diversifying its business segments while enhancing its marketing and brand strategies[140]. Risk Management - No major risks to the company's ongoing operations were identified, indicating stability in its business model[8]. - Future plans and strategies outlined in the report are subject to risks, and investors are advised to remain cautious[9]. - The company faces risks related to performance volatility due to external factors such as the COVID-19 pandemic, which has impacted its defense and data services businesses[144]. - The company is addressing the risk of rising costs and expenses by improving production efficiency and expanding market share[147]. - The company faces risks related to defense product pricing, which may lead to revenue and performance fluctuations due to military pricing reviews[151]. - The company has successfully renewed its military qualifications but remains vigilant about maintaining necessary certifications to mitigate risks[152]. Asset Management - The company's total assets at the end of 2020 were ¥2,487,042,619.13, down 24.10% from ¥3,276,754,145.26 at the end of 2019[21]. - The company's intangible assets increased by CNY 20.48 million, a growth of 10.90%, indicating ongoing investment in technology and product development[55]. - The company's accounts receivable decreased by CNY 290.26 million, a decline of 35.26%, mainly due to price adjustments in defense projects leading to significant revenue reductions[55]. - The company's contract assets increased by CNY 16.17 million, a growth of 211.09%, due to the reclassification of unexpired warranty funds according to new revenue standards[55]. - The company reported a significant increase in inventory levels, with a 103.37% rise to 31,883 units due to enhanced production capacity[90]. - The company confirmed government subsidies as part of other income, amounting to $14.27 million, which accounted for -1.51% of total profit[110]. - The company's cash and cash equivalents with restricted rights amounted to ¥34.25 million, primarily due to guarantees and deposit requirements[118]. Corporate Governance - The company has established a credit risk control system to monitor customer credit status and ensure overall credit risk remains manageable[150]. - The company has not conducted any research, communication, or interview activities during the reporting period[153]. - The company appointed Tianzhi International Accounting Firm as the new auditor, replacing the previous firm after several years of service[172]. - The company is involved in a lawsuit regarding a contract dispute, with a claim amount of 8.1 million yuan, and is taking measures to protect its rights[173]. - The company confirmed that it will recognize a profit of CNY 2.496 million when it is certain to receive the payment from the lawsuit against Song Yongqing[174]. - The company has received a total of CNY 4.817 million in cash compensation from Song Yongqing, along with stock compensation of 2,701,549 shares[176]. - The company is focused on ensuring compliance with performance commitments related to acquisitions[176]. Shareholder Returns - The profit distribution plan proposed a cash dividend of 0 RMB per 10 shares, with no bonus shares issued, reflecting the company's current financial strategy[9]. - The total cash dividend for 2020 was RMB 0, representing 0% of the net profit attributable to ordinary shareholders[161]. - The company did not distribute any dividends in 2019 or 2020, indicating a focus on long-term development[158]. - The company aims to provide stable and long-term returns to investors despite the lack of profit distribution in recent years[158].