Troy Information(SZ:300366)2021-04-19 16:00Financial Performance - The net profit of the wholly-owned subsidiary Shanghai Geti Electric Technology Co., Ltd. decreased compared to the previous year due to increased R&D investment and a continuous decline in gross margin [5]. - The total impairment amount for goodwill related to subsidiaries Geti Electric, Bangxun Information, and Wanli Open Source was approximately 776.56 million RMB [5]. - The company did not distribute cash dividends or bonus shares during the reporting period [12]. - The company's operating revenue for 2020 was ¥2,006,470,833.56, representing a year-over-year increase of 1.78% from ¥1,971,371,759.37 in 2019 [28]. - The net profit attributable to shareholders for 2020 was -¥779,704,134.15, a significant decline of 758.55% compared to a profit of ¥118,397,117.84 in 2019 [28]. - The net cash flow from operating activities improved to ¥177,525,816.67 in 2020, a 639.80% increase from -¥32,887,181.14 in 2019 [28]. - The total assets at the end of 2020 were ¥3,247,428,604.75, down 15.77% from ¥3,855,402,126.43 at the end of 2019 [28]. - The net assets attributable to shareholders decreased by 31.67% to ¥1,680,310,512.38 in 2020 from ¥2,459,279,679.59 in 2019 [28]. - The basic earnings per share for 2020 was -¥1.5033, a decrease of 760.21% from ¥0.2277 in 2019 [28]. - The company has indicated uncertainty regarding its ability to continue as a going concern, as the net profit for the last three accounting years has been negative [28]. Revenue Composition and Market Trends - The company's main business revenue composition for the reporting period is as follows: Technical development and services accounted for 59.67% (¥119,733.28 million), Big data products and solutions for 30.55% (¥61,298.78 million), IoT products for 8.65% (¥17,346.77 million), Database for 1.10% (¥2,211.78 million), and Others for 0.03% (¥56.48 million) [38]. - The global big data market is projected to reach $187.84 billion in 2020, with a year-on-year growth of 3.1%, and is expected to achieve a compound annual growth rate (CAGR) of 9.6% from 2020 to 2024 [47]. - The database management system market is expected to grow from $46.1 billion in 2018 to $100 billion by 2024, indicating a significant opportunity for domestic database products to replace foreign ones [44]. - The 5G industry is projected to see terminal device spending and telecom service spending reach ¥14 trillion and ¥7 trillion respectively by 2025, highlighting the vast market potential [50]. Research and Development - The company is focusing on continuous R&D investment in areas such as big data, next-generation mobile communication, IoT, cloud computing, and artificial intelligence to maintain competitiveness [9]. - The company invested ¥259.19 million in R&D, representing a year-on-year growth of 56.94% [65]. - The total R&D investment for 2020 was 259,186,863.44 CNY, representing 12.92% of the operating revenue [118]. - The overall R&D progress for the integrated computing and storage platform reached 80% completion [1]. - The company has developed 36 new invention patents and 40 utility model patents, enhancing its technological capabilities [73]. Strategic Initiatives - The company plans to enhance its core competitiveness and expand its main business through a private placement approved by the China Securities Regulatory Commission [5]. - The company plans to raise ¥1 billion through a private placement to support strategic business development and technology research [77]. - The company aims to enhance its financial management efficiency through integrated financial management and improved financial accounting systems [78]. - The company plans to focus on database, big data, and 5G as its strategic business directions over the next three years, aiming to become a leading provider of domestic database solutions and a full-stack big data solution provider [81]. Client and Market Engagement - The company serves over 500 large enterprise-level users across various sectors including government, telecommunications, energy, finance, transportation, education, and military [38]. - The company has established strategic partnerships with major players in the industry, enhancing its collaborative ecosystem [67]. - The company has formed partnerships with local governments and large enterprises in Cambodia to enhance its overseas business operations [55]. Operational Challenges and Risk Management - The accounts receivable situation improved compared to the previous period, although there remains a risk of bad debt losses due to potential macroeconomic fluctuations [11]. - The company is committed to strict credit approval processes and enhancing communication with clients to mitigate accounts receivable risks [11]. - The company acknowledges the seasonal nature of its sales, with significant revenue concentration in the second half of the year, particularly in Q4 [102]. Investment and Financial Management - The company has successfully positioned its GreatDB database among the top domestic databases and has increased its industry influence by joining two industry associations and three industry alliances [79]. - The company will leverage capital market advantages to enhance its capital strength and optimize its equity structure, driving healthy development [92]. - The company has a cash balance of ¥11,771,401.82, which is restricted due to margin and frozen funds [144]. - The company has pledged accounts receivable totaling ¥267,720,400.58 as collateral for bank loans [144]. Future Outlook - In 2021, the company aims for significant growth in its database business, targeting entry into the first tier of domestic database vendors and enhancing its product iteration capabilities [83]. - The company will accelerate the development of its big data business, particularly in government and energy sectors, leveraging its strong customer resources and focusing on smart governance and digital rural projects [84]. - The company intends to establish itself as a leader in 5G open-source technology by mastering core technologies and providing leading 5G solutions to empower partners in the 5G ecosystem [86].