Financial Performance - The company reported a profit distribution plan for 2022, proposing no profit distribution or capital reserve transfer to share capital [5]. - The company has not achieved profitability since its listing [4]. - The company's operating revenue for 2022 was CNY 367,901,054.71, representing a 20.36% increase compared to CNY 305,677,208.41 in 2021 [19]. - The net profit attributable to shareholders decreased by 95.30% to CNY 1,371,166.80 from CNY 29,203,308.54 in the previous year [19]. - The basic earnings per share dropped by 94.12% to CNY 0.01 from CNY 0.17 in 2021 [21]. - The gross profit margin decreased from 35.89% in 2021 to 30.51% in 2022, a decline of 5.38 percentage points [22]. - The net cash flow from operating activities was CNY 19,106,460.60, a significant recovery from a negative cash flow of CNY -27,020,472.57 in 2021 [19]. - The total net assets attributable to shareholders at the end of 2022 were CNY 749,936,006.96, a slight decrease of 1.15% from CNY 758,644,840.16 in 2021 [19]. - The company reported a significant focus on developing smart gas meters and related technologies, with several patents filed for electronic gas meters and energy measurement systems [73][74]. - The company achieved a total of 65 new authorized invention patents, 33 utility model patents, 3 design patents, and 6 US invention patents during the reporting period [70]. Research and Development - Research and development expenses accounted for 13.70% of operating revenue, an increase of 1.39 percentage points from 12.31% in 2021 [21]. - The company added 65 new Chinese invention patents, 33 utility model patents, and 3 design patents during the reporting period [39]. - R&D expenses increased by 33.98% year-on-year, totaling ¥50,401,524.16, compared to ¥37,618,220.96 in the previous year [77]. - The company is focusing on developing smart city solutions, including IoT-based flood warning systems and irrigation management systems [75]. - The company is expanding its research and development in smart gas and water management, integrating IoT technology to enhance urban public utility services [60]. - The company is committed to advancing smart manufacturing in line with national policies, targeting significant digital transformation in the manufacturing sector by 2025 [64]. Market and Industry Trends - The demand for smart gas meters is driven by the increasing natural gas consumption and the need for smart city infrastructure, leading to a continuous market growth for smart gas meters [58]. - The smart gas meter market is expected to grow due to factors such as rising natural gas consumption, mandatory replacements of old meters, and the increasing demand for smart city management [59]. - The global smart gas meter market is projected to grow at a CAGR of 6.3%, reaching approximately $10.9 billion by 2026 [176]. - The Chinese smart sensor market grew from approximately ¥81.41 billion in 2017 to about ¥111.34 billion in 2021, with a CAGR of 8.14%, and is expected to reach ¥130.83 billion by 2023 [178]. - The company is aware of the intensifying competition in the market as related industries may diversify into its business area [174]. Risks and Challenges - The company is exposed to risks from fluctuations in raw material prices, which accounted for over 70% of its operating costs during the reporting period [115]. - The company faces risks related to market competition, with the need to continuously enhance R&D capabilities and expand production capacity to maintain its competitive edge [113]. - The company is at risk of significant declines in performance if macroeconomic conditions worsen or if there are major changes in industry policies affecting demand [109]. - Future growth may be impacted by industry risks, including changes in regulations and market demand fluctuations [125]. Corporate Governance - The company has established a complete governance structure to ensure the protection of shareholder rights and promote sustainable development [187]. - The board of directors consists of 5 members, including 2 independent directors, and held 10 meetings during the reporting period, approving 31 resolutions [191]. - The supervisory board has 3 members and convened 7 meetings, passing 19 resolutions in 2022 [192]. - The company emphasizes investor relations management, enhancing communication through various channels, including information disclosure and investor interactions [194]. - The company has maintained its independence from its controlling shareholders, ensuring autonomous operational capabilities [195]. Strategic Initiatives - The company is expanding its product offerings and investing in new technologies to enhance market competitiveness [130]. - The company aims to enhance its competitive advantage in the IoT smart gas meter and software system sector, which is closely linked to the rising natural gas consumption and mandatory meter replacements [174]. - The company plans to develop new products and technologies, including ultrasonic flow meters, to meet the increasing demands of gas operators for smart and integrated management solutions [110]. - The company is actively pursuing market expansion through innovative product offerings and strategic investments in technology [79]. - The company aims to enhance its market share through innovative product development and strategic partnerships in the gas and water measurement sectors [84].

证券代码：688528 证券简称：秦川物联 成都秦川物联网科技股份有限公司 5 月投资者关系活动记录表 编号：2022-002 | --- | --- | --- | |-----------|--------------------------------------|------------------------------------------------------------------| | | | | | 投资者 关 | □特定对象调研 | □分析师会议 | | 系活动 类 | □媒体采访 | 业绩说明会 | | 别 | □新闻发布会 | □路演活动 | | | □现场参观 | | | | □其他 （电话会议） | | | 参与单 位 | | | | 名称及 人 | / | | | 员姓名 | | | | 时间 | 2022 年 5 月 17 日 | 15:00~16:30 | | 地点 | 上证路演中心 | | | 上市公 司 | | 董事长、总经理邵泽华；董事、副总经理向海堂；副总经理、董事会 | | 接待人 员 | | 秘书李勇；财务总监李婷；独立董事李玉周。 | | 姓名 | Q1 ...

2022 年第三季度报告 证券代码：688528 证券简称：秦川物联 成都秦川物联网科技股份有限公司 2022 年第三季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 重要内容提示： 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完 整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人邵泽华、主管会计工作负责人李婷及会计机构负责人（会计主管人员）罗媛 保证季度报告中财务信息的真实、准确、完整。 第三季度财务报表是否经审计 □是 √否 一、 主要财务数据 (一)主要会计数据和财务指标 1 / 14 单位：元 币种：人民币 项目 本报告期 本报告期比 上年同期增 减变动幅度 (%) 年初至报告期 末 年初至报告 期末比上年 同期增减变 动幅度(%) 营业收入 99,340,768.74 34.46 253,149,847.92 11.51 归属于上市公司股东的净 利润 3,096,587.41 -30.75 -3,060,715.26 -114.34 归属于上市 ...

Financial Performance - The company's operating revenue for the first half of 2022 was ¥153,809,079.18, representing a 0.44% increase compared to ¥153,131,462.18 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was -¥6,157,302.67, a decrease of 136.51% from ¥16,865,772.44 in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥9,811,243.69, down 169.88% from ¥14,041,091.59 in the same period last year[18]. - The net cash flow from operating activities was -¥61,622,939.23, compared to -¥65,657,880.92 in the previous year, indicating a slight improvement[18]. - The net assets attributable to shareholders at the end of the reporting period were ¥742,407,537.49, a decrease of 2.14% from ¥758,644,840.16 at the end of the previous year[18]. - Total assets increased by 2.29% to ¥1,013,146,731.81 from ¥990,491,416.14 at the end of the previous year[18]. - The basic earnings per share for the period was -0.04 yuan, down 140.00% compared to the same period last year[19]. - The weighted average return on net assets was -0.81%, a decrease of 3.03 percentage points from the previous year[19]. - The gross profit margin for the first half of 2022 was 27.31%, down 10.98 percentage points from 38.29% in the first half of 2021[83]. - The company reported a total revenue of 11,000,000.00 for the smart water management platform, with a year-on-year increase of 4,274,070.85, representing a growth of approximately 63.7%[59]. - The smart gas meter segment generated revenue of 4,941,000.00, with a significant increase of 1,731,717.69, reflecting a growth rate of about 53.5%[59]. - The company reported a revenue of 97,792,500.00 RMB for the first half of 2022, with a net profit of 22,811,823.03 RMB, representing a significant increase compared to the previous year[62]. Research and Development - The company's R&D expenditure accounted for 14.83% of operating revenue, an increase of 3.06 percentage points year-on-year[20]. - The total R&D investment for the period was ¥22,811,823.03, representing a 26.54% increase compared to ¥18,027,708.77 in the same period last year[55]. - The number of R&D personnel increased to 185, accounting for 25.98% of the total workforce, up from 23.51% in the previous year[65]. - The average salary of R&D personnel rose to 7.92 million RMB, compared to 7.48 million RMB in the previous year[65]. - The company has achieved significant progress in its R&D projects, enhancing the performance of IoT modules and communication gateways to meet international market demands[57]. - The company has developed core technologies such as mechanical measurement technology, shell sealing technology, and temperature conversion technology, all of which are independently developed[48]. - The company has filed for multiple new patents, including a lithium battery backup detection circuit and a smart city cloud platform, indicating a focus on innovation and technology development[52]. - The company has obtained 17 new patents in 2022, reflecting its commitment to expanding its intellectual property portfolio[53]. - The company has established a strong market position with continuous sales growth, supported by significant R&D investments and a high brand recognition[46]. Market and Product Development - The company is focused on integrating core technologies such as precise measurement and data communication into its products[27]. - The smart gas meter market is expected to grow significantly, driven by increasing natural gas consumption and the demand for smart management services from gas operators[38][39]. - By 2025, the total demand for natural gas in China is projected to reach 430-450 billion cubic meters, indicating a robust growth trajectory for the gas meter market[39]. - The global smart gas meter market is anticipated to grow at a compound annual growth rate (CAGR) of 6.3%, reaching approximately $10.9 billion by 2026[42]. - The company has a competitive edge in the IoT smart gas meter sector, with proprietary technology enhancing measurement accuracy and safety[43][45]. - The company is committed to R&D in smart gas and water management, aligning with national policies promoting smart city development[39][40]. - The company’s smart gas meters incorporate advanced features such as remote management and safety monitoring, positioning them as essential components in the transition to smart cities[38][45]. - The company is focusing on enhancing the functionality of its products through the integration of advanced technologies such as ultrasonic and NB IoT[59]. - The company aims to improve its market competitiveness by developing a comprehensive information management platform for water services[59]. Risks and Challenges - The company is exposed to risks from fluctuating raw material prices, which accounted for over 70% of operating costs during the reporting period[93]. - The market for smart gas meters is influenced by natural gas consumption and urbanization, with potential risks from changes in national industrial policies affecting demand growth[92]. - The company faces risks related to technology leaks and the potential loss of core technical personnel due to increasing competition for talent in the industry[88]. - The accounts receivable balance increased from CNY 235.23 million at the end of 2021 to CNY 275.68 million by June 2022, with accounts receivable turnover rate being low, posing a risk of bad debts[99]. - The company has faced a significant lawsuit involving a claim for unpaid due payments amounting to RMB 3.21 million and additional economic losses of RMB 1.07 million, totaling RMB 5.21 million[150]. - The company is currently involved in a legal case where the total claim has increased to RMB 11.72 million, including a request for damages due to infringement[150]. Corporate Governance and Compliance - The company has not reported any major litigation or arbitration matters that have not been previously announced[151]. - There are no significant related party transactions that have not been disclosed in temporary announcements[152]. - The company has committed to repaying investors in case of any false statements or omissions in the prospectus, with compensation based on the actual losses determined by regulatory authorities[145]. - The company has not faced any penalties or corrective actions related to violations of laws or regulations during the reporting period[151]. - The company has not reported any non-standard audit opinions in the previous annual report[149]. - The company has not engaged in any significant asset acquisitions or equity purchases during the reporting period[153]. - The company has not reported any significant changes in the integrity status of its controlling shareholders or actual controllers during the reporting period[151]. Shareholder Information - The total number of ordinary shareholders as of the reporting period end was 7,351[171]. - The largest shareholder, Shao Zehua, held 101,165,281 shares, representing 60.22% of the total shares[173]. - The company reported a total of 4,963,000 shares held by Chengdu Qinchuan Xingshen Investment Co., Ltd., representing 2.95% of total shares[174]. - The top ten unrestricted shareholders include Chengdu Qinchuan Xingshen Investment Co., Ltd. with 4,137,517 shares and Qiongcun Huazhuo Enterprise Management Partnership with 3,927,000 shares[174]. - The company has a total of 101,165,281 restricted shares held by Shao Zehua, which will become tradable on July 1, 2023[175]. - The company’s strategic investor, Huafu Ruixing Investment Management Co., Ltd., holds 1,705,700 restricted shares, with 394,300 shares lent out through a securities lending program[177]. Environmental and Social Responsibility - The company emphasizes energy conservation and low carbon emissions, implementing measures such as providing electric commuter buses to reduce fossil fuel usage and CO2 emissions[126]. - The company promotes a green office concept, advocating for paperless operations and optimizing lighting circuits to save electricity[126]. - The company has adopted 6S management on-site to improve work environments, enhance employee efficiency, and reduce pollutant emissions[126].

Financial Performance - The company plans to distribute a cash dividend of RMB 0.60 per 10 shares, totaling RMB 10,080,000, which represents 34.52% of the net profit attributable to shareholders for 2021[5]. - As of December 31, 2021, the total share capital of the company was 168,000,000 shares[5]. - The company has not yet achieved profitability since its listing[7]. - The company has received a standard unqualified audit report from Sichuan Huaxin (Group) CPA[8]. - In 2021, the company achieved operating revenue of CNY 305.68 million, a year-on-year increase of 1.19% compared to CNY 302.08 million in 2020[20]. - The net profit attributable to shareholders was CNY 29.20 million, a decrease of 36.73% from CNY 46.16 million in 2020[20]. - The net profit after deducting non-recurring gains and losses was CNY 17.76 million, down 57.69% from CNY 41.98 million in 2020[20]. - The company's cash flow from operating activities was negative at CNY -27.02 million, compared to CNY -2.52 million in 2020[20]. - The basic earnings per share decreased by 45.16% to CNY 0.17 from CNY 0.31 in 2020[21]. - The weighted average return on equity decreased to 3.87%, down 4.95 percentage points from 8.82% in 2020[21]. - The total assets at the end of 2021 were CNY 990.49 million, a slight increase of 0.02% from CNY 990.28 million at the end of 2020[20]. - The net assets attributable to shareholders increased by 0.53% to CNY 758.64 million from CNY 754.64 million at the end of 2020[20]. Research and Development - The R&D investment accounted for 12.31% of operating revenue, an increase of 4.27 percentage points from 8.04% in 2020[22]. - R&D expenses reached 3,761.82 million yuan, a 54.85% increase compared to the previous year, representing 12.31% of total revenue[35]. - The company is actively investing in R&D to strengthen its core product technology and innovation capabilities, responding to the increasing demand for smart gas meters[34]. - The company has added 7 invention patents, 54 utility model patents, and 38 software copyrights during the reporting period, enhancing its intellectual property portfolio[35]. - The company is focusing on upgrading its IoT smart gas and water meter technologies to meet diverse customer needs and improve product competitiveness[55]. - The company is committed to continuous innovation, as evidenced by the diverse range of patents obtained, which cover various aspects of IoT technology[65][66]. - The company is investing in R&D for new technologies, including advanced gas meter components and automated assembly systems, to improve production efficiency[67]. - The company is enhancing its product competitiveness through continuous R&D and strategic investments in new technologies and market opportunities[72]. Market Strategy and Expansion - The company plans to enhance marketing efforts and increase R&D spending to improve competitiveness and product innovation in response to market challenges[22]. - The company focused on expanding its market presence among large gas companies and provincial capital cities, while maintaining customer loyalty[34]. - The company is planning to explore strategic partnerships and potential acquisitions to further enhance its technological capabilities and market reach[66]. - The company is committed to upgrading its R&D center and smart factories to support ongoing technological advancements[158]. - The company plans to expand its market presence by targeting large gas companies and provincial capital cities while also exploring international markets[161]. - The company aims to enhance its core competitiveness by optimizing R&D resource allocation and focusing on market-oriented R&D strategies, particularly in IoT smart products[162]. Operational Efficiency - The production model is based on "sales-driven production," allowing the company to adapt to market demand and optimize inventory management[46]. - The company has implemented advanced manufacturing technologies, including automation and real-time feedback systems, to enhance production efficiency and product quality[46]. - The company achieved a 30% reduction in production costs through process optimization and automation initiatives[67]. - The company has established a complete governance structure, ensuring clear responsibilities and effective checks and balances among its management, board, and shareholders[169]. Corporate Governance - The company has not disclosed any special arrangements for corporate governance[9]. - The company has established a nationwide marketing service network, primarily utilizing a direct sales model, fostering long-term partnerships with numerous downstream customers[47]. - The company emphasizes transparent information disclosure, adhering to legal requirements to protect the interests of minority investors[175]. - The company is enhancing investor relations management through various communication channels to foster a harmonious development environment[176]. - The company reported a total of 101,165,300 shares held by the chairman and general manager, with no changes during the reporting period[180]. Risks and Challenges - The company has outlined potential risks in its operations, which are detailed in the management discussion and analysis section[4]. - The company faces risks related to market competition, requiring continuous enhancement of R&D capabilities and marketing strategies[101]. - The company is exposed to financial risks, including potential bad debts from accounts receivable, which could adversely affect operational cash flow and net profit[109]. - The company faces risks related to the uncertain growth trend of IoT smart gas meters, with revenue growth contributions of 74.69% in 2020 and 13.73% in 2021[107]. Intellectual Property - The company holds 142 authorized invention patents, 156 utility model patents, and 200 software copyrights, indicating a strong R&D capability[53]. - The cumulative number of intellectual property rights includes 142 invention patents and 156 utility model patents, totaling 509 effective patents[64]. - The company is actively pursuing patent applications to protect its intellectual property, which is crucial for its ongoing development[100]. Customer Base and Sales - The number of customers increased from 620 in 2020 to 637 in 2021, with significant growth in high-revenue clients, particularly those generating over 4 million RMB, which rose from 8 to 14 clients[125]. - Revenue from clients generating over 4 million RMB accounted for 31.61% of total revenue in 2021, up from 20.37% in 2020[125]. - The company plans to continue expanding its customer base and increasing sales to larger clients as part of its strategic focus[126]. - The overall market strategy has shifted towards targeting larger gas operators, resulting in increased revenue from this segment[126].

Financial Performance - The company's operating revenue for Q1 2022 was ¥53,393,812.56, representing a year-on-year increase of 1.29%[4] - The net profit attributable to shareholders was -¥7,896,352.76, a decrease of 1017.38% compared to the same period last year[4] - The net cash flow from operating activities was -¥41,876,162.02, indicating a significant cash outflow[4] - The weighted average return on equity was -1.05%, a decrease of 1.16 percentage points[4] - The basic and diluted earnings per share were both -¥0.0470, reflecting a decline of 1021.57% year-on-year[4] - The company reported a decrease in cash received from sales of goods and services to CNY 41,900,606.99 in Q1 2022 from CNY 46,742,296.95 in Q1 2021, a decline of about 10.0%[25] - The company's basic and diluted earnings per share for Q1 2022 were both CNY -0.0470, compared to CNY 0.0051 in Q1 2021, indicating a significant decline[23] - The company’s total equity decreased to CNY 750,748,487.40 in Q1 2022 from CNY 758,644,840.16 in Q1 2021, a decline of about 1.0%[18] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,001,927,776.65, up 1.15% from the end of the previous year[5] - The total assets increased to CNY 1,001,927,776.65 in Q1 2022 from CNY 990,491,416.14 in Q1 2021, reflecting a growth of approximately 1.4%[18] - The total liabilities rose to CNY 251,179,289.25 in Q1 2022, up from CNY 231,846,575.98 in Q1 2021, marking an increase of about 8.3%[18] - Accounts receivable increased to RMB 243,382,614.17 from RMB 235,225,861.96 year-over-year[16] - Inventory as of March 31, 2022, was RMB 79,070,386.92, compared to RMB 69,921,723.33 at the end of 2021, reflecting a growth of approximately 13.3%[16] - The total current assets decreased to RMB 643,302,742.46 from RMB 646,360,146.92 at the end of 2021[16] Research and Development - Research and development expenses totaled ¥10,452,314.20, accounting for 19.58% of operating revenue, an increase of 3.70 percentage points year-on-year[5] - Research and development expenses for Q1 2022 were CNY 10,452,314.20, up from CNY 8,371,137.37 in Q1 2021, representing a growth of approximately 24.8%[22] Market Conditions and Challenges - The company faced increased market competition and impacts from COVID-19, leading to a decline in sales prices and delayed orders[8] - The company plans to continue increasing its market expansion efforts and R&D investments despite current challenges[8] Shareholder Information - The total number of common shareholders at the end of the reporting period was 7,499[10] - The largest shareholder, Shao Zehua, holds 60.22% of the shares, totaling 101,165,281 shares[10] Cash Flow and Financing - The net cash flow from investment activities was $3,161,499.95, compared to a negative cash flow of -$3,165,885.11 in the previous period, indicating a positive turnaround in investment performance[26] - Cash inflow from financing activities totaled $39,520,528.09, significantly higher than $10,009,904.73 in the previous period, reflecting increased borrowing and investment[26] - The net increase in cash and cash equivalents was $437,905.24, contrasting with a decrease of -$41,638,148.99 in the previous period, showing improved liquidity[26] - The ending balance of cash and cash equivalents reached $246,342,128.43, up from $173,613,799.86 in the previous period, indicating a strong cash position[26] - The company received $39,500,000.00 in new borrowings, which contributed to the financing cash inflow[26] - The cash outflow for financing activities was limited to $367,500.00, showing effective management of cash distributions[26] - The cash flow from investment activities was $20,164,382.18, while cash outflow for investments was $17,002,882.23, resulting in a positive net cash flow from investments[26] - The company reported a cash inflow from other financing activities of $20,528.09, indicating additional funding sources[26] Legal Matters - The company is involved in a lawsuit with Hebei Huaran Changtong Gas Co., Ltd., which has not yet gone to trial[12] - The report indicates a focus on maintaining compliance with legal and regulatory requirements regarding shareholder activities[12] Stock Activities - The strategic placement of 2.1 million shares by Huafu Ruixing Investment Management Co., Ltd. has a lock-up period of 24 months[11] - The company has engaged in stock lending activities, with 457,100 shares lent out under relevant regulations[11] Accounting Standards - The company is not applying the new accounting standards for the current year, which may impact future financial reporting[26]

2021 年年度报告 公司代码：688528 公司简称：秦川物联 1 / 204 2021 年年度报告 重要提示 □是 √否 三、 重大风险提示 公司已在本报告中阐述了公司在生产经营过程中可能面临的风险因素，敬请查阅第三节"管 理层讨论与分析"之"四、风险因素"部分。 四、 公司全体董事出席董事会会议。 七、 董事会决议通过的本报告期利润分配预案或公积金转增股本预案 公司第二届董事会第十九次会议、第二届监事会第十次会议审议通过2021年度利润分配方案 ，拟以实施权益分派股权登记日登记的总股本为基数分配利润，方案如下： 公司拟向全体股东每10股派发现金红利人民币0.60元（含税）。截至2021年12月31日，公司 总股本168,000,000.00股，以此计算合计拟派发现金红利人民币10,080,000.00元（含税）。本年度 公司现金分红金额占公司2021年度归属于上市公司股东净利润的34.52%。 成都秦川物联网科技股份有限公司 2021 年年度报告 如在实施权益分派股权登记日前，因可转债转股/回购股份/股权激励授予股份回购注销/重大 资产重组股份回购注销等致使公司总股本发生变动的，公司拟维持分配总额不变， ...

2021 年第三季度报告 证券代码：688528 证券简称：秦川物联 成都秦川物联网科技股份有限公司 2021 年第三季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或 者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 重要内容提示： 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人、主管会计工作负责人及会计机构负责人（会计主管人员）保证季度报告中财务 报表信息的真实、准确、完整。 第三季度财务报表是否经审计 □是 √否 一、 主要财务数据 (一)主要会计数据和财务指标 单位：元 币种：人民币 | 项目 | 本报告期 | 本报告期比上 年同期增减变 | 年初至报告期 | 年初至报告期末 | | --- | --- | --- | --- | --- | | | | | 末 | 比上年同期增减 | | | | 动幅度(%) | | 变动幅度(%) | | 营业收入 | 73,883,487.66 | -2.04 | 227,014,949.84 | 7.9 ...

Financial Performance - The company achieved operating revenue of RMB 153.13 million, representing a year-on-year growth of 13.48% due to continuous customer expansion and increased sales of IoT smart gas meters[18]. - Basic earnings per share decreased by 54.55% to RMB 0.10 compared to the same period last year[18]. - The weighted average return on net assets dropped by 6.73 percentage points to 2.22%[18]. - The company reported a basic earnings per share after deducting non-recurring gains and losses of RMB 0.08, down 61.90% year-on-year[18]. - The diluted earnings per share also decreased by 54.55% to RMB 0.10 compared to the same period last year[18]. - The company achieved a net profit of 16.87 million RMB, a decrease of 38.31% year-on-year[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was 14.04 million RMB, down 47.17% year-on-year[19]. - The net cash flow from operating activities was -65.66 million RMB, compared to -25.01 million RMB in the previous year, indicating a significant decline[19]. - The company's total assets decreased by 2.22% to 968.32 million RMB compared to the end of the previous year[19]. - Operating costs increased by 24.22% year-on-year, reaching CNY 94.50 million, primarily due to increased product sales[104]. Research and Development - Research and development expenditure accounted for 11.77% of operating revenue, an increase of 3.59 percentage points from the previous year[18]. - The company increased its R&D investment, leading to a rise in R&D expenses, which contributed to the decline in net profit[19]. - The company achieved a 63.39% increase in R&D investment, totaling ¥18,027,708.77, compared to ¥11,033,558.21 in the previous period, with R&D expenses accounting for 11.77% of operating revenue[62][63]. - The number of R&D personnel increased to 150, representing 23.51% of the total workforce, up from 20.00% in the previous period[74]. - The average salary of R&D personnel rose to 7.48 million RMB, compared to 6.02 million RMB in the prior period[74]. - The company holds 135 invention patents, 134 utility model patents, and 10 design patents, demonstrating its strong R&D capabilities[37]. - The company developed an "intelligent gas meter control software" that enables real-time monitoring of flow, battery power, and gas leakage, enhancing safety management for users[46]. - The company is developing smart gas meters and has integrated NB IoT and ultrasonic technologies to enhance product competitiveness[72]. Market and Product Development - The company is focused on expanding its market presence and has increased its sales personnel, resulting in higher market development costs and personnel expenses[19]. - The main products include IoT smart gas meters and IC card smart gas meters, which have not undergone significant changes during the reporting period[23]. - The demand for smart gas meters is closely linked to the growth in natural gas consumption, mandatory replacements, and the development of smart city infrastructure[35]. - The market for IoT smart gas meters is expected to grow rapidly due to advancements in mobile IoT technology and urban infrastructure development[36]. - The company is expanding its product offerings to include smart water meters and smart thermal meters, aiming to establish comprehensive smart utility systems[38]. - The company achieved sales revenue of CNY 2.1798 million from IoT smart water meters and CNY 0.5132 million from smart flow meters during the reporting period[38]. Operational Efficiency and Risks - The company continues to face risks in its production and operation processes, as outlined in the risk factors section of the report[3]. - The company faces risks related to market competition, requiring continuous improvement in R&D and marketing strategies to maintain its competitive edge[95]. - The company faces risks from raw material price fluctuations, which accounted for over 70% of operating costs[98]. - The company is actively constructing a smart factory to enhance production efficiency and reduce costs[89]. Governance and Compliance - There were no significant changes in the company's governance structure or non-operating fund occupation by controlling shareholders[5]. - The company maintains a commitment to transparency and accuracy in its financial reporting, as stated by its management[3]. - The company strictly adheres to environmental regulations and has implemented measures to manage waste and emissions effectively[124]. - The company has committed to not transferring or managing shares for 12 months post-IPO and for 6 months after leaving the company[133]. Shareholder and Investment Policies - The company has established a profit distribution policy and a shareholder dividend return plan to enhance investor returns[141]. - The company plans to distribute cash dividends amounting to at least 10% of the distributable profits for the year[145]. - The company will ensure that the cumulative distributable profits are positive before implementing cash distributions[145]. - The company will actively compensate investors for losses incurred due to unfulfilled commitments, including stock investment losses and related fees[145]. - The company will implement measures to compensate investors for losses caused by any false statements in its IPO documents[142]. Financial Reporting and Audit - The financial statements were approved by the board of directors on August 24, 2021[192]. - The company adheres to the enterprise accounting standards, ensuring that financial statements accurately reflect its financial condition and operating results[197]. - The company's functional currency for accounting is Renminbi (RMB)[200].

Financial Performance - The company achieved operating revenue of CNY 302.08 million in 2020, a year-on-year increase of 23.33%[22]. - Net profit attributable to shareholders was CNY 46.16 million, up 4.36% from the previous year[22]. - Basic earnings per share decreased by 11.43% to CNY 0.31 in 2020[21]. - The weighted average return on equity dropped by 7.58 percentage points to 8.82%[21]. - The net cash flow from operating activities was negative at CNY -2.52 million, a decline of 104.74% compared to the previous year[22]. - Total assets increased by 108.76% to CNY 990.28 million at the end of 2020[22]. - The company reported a total revenue of 109,975,000.00 RMB, with a net profit of 24,293,541.30 RMB for the year 2020[79]. - The company reported a negative net cash flow from operating activities of CNY 2,524,678.27, a decline of 104.74% from the previous year[114]. - Operating costs increased to CNY 183,721,515.55, marking a rise of 33.62% compared to the previous year[114]. - The gross profit margin for the manufacturing sector was 39.18%, down by 4.68 percentage points year-on-year[117]. Dividend Policy - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares, totaling 25,200,000 RMB, which represents 54.60% of the net profit attributable to shareholders for 2020[6]. - A profit distribution policy has been established, detailing the ratio, basis, conditions, implementation procedures, and adjustment matters for dividends[175]. - The company plans to distribute cash dividends, with a minimum of 80% of the profit distribution allocated to cash dividends during mature stages without significant capital expenditure[181]. - The company will ensure that cash dividends account for at least 20% of profit distribution during growth stages with significant capital expenditures[181]. - The company will prioritize cash dividends over stock dividends when conditions for cash distribution are met, ensuring that at least 10% of the distributable profit is allocated to cash dividends annually[179]. Research and Development - The total R&D expenditure for the year was approximately ¥24.29 million, representing a 5.25% increase from the previous year's ¥23.08 million[74]. - R&D expenditure accounted for 8.04% of total revenue, down from 9.42% in the previous year, indicating a decrease of 1.38 percentage points[74]. - The company is developing a new smart gas meter with a projected market demand of 1,820,000 units, enhancing its competitive edge in the industry[79]. - The company is investing $200 million in R&D for new technologies aimed at enhancing user experience and operational efficiency[165]. - The company will continue to invest heavily in R&D to maintain its technological advantage and expand its product line, including smart water meters and ultrasonic flow meters[146]. Market and Product Development - The company is engaged in the research, development, manufacturing, and sales of smart gas meters, integrating core technologies with precision instrument manufacturing[30]. - The company is expanding its product line to include smart water meters and smart thermal meters, aiming to establish a comprehensive smart utility system[46]. - The company is focusing on the development of smart gas meters, which will enhance safety, reliability, and intelligent management capabilities[142]. - The company aims to enhance its competitive edge by focusing on technology research and development, particularly in IoT smart gas meters and related products[146]. - The company recognizes that market demand for smart gas meters is closely linked to natural gas consumption and mandatory replacements of old meters[144]. Operational Efficiency - The company will continue to enhance operational efficiency and reduce costs to improve business performance[173]. - The company will implement multiple improvement measures to enhance daily operational efficiency and reduce operational costs[173]. - The company has committed to reducing operational costs by 5% through efficiency improvements in the supply chain[165]. - The company will enhance production cost control and reduce operational costs[175]. Risk Management - The company has outlined potential risk factors in its operations, which can be found in the section discussing operational conditions[4]. - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute a commitment to investors, highlighting investment risks[7]. - The company faces risks related to market competition, requiring continuous enhancement of R&D capabilities and marketing network[104]. - The impact of the COVID-19 pandemic has led to a slowdown in industry procurement and installation progress, affecting overall industry development[111]. Corporate Governance - The company has established a commitment to not repurchase shares during the lock-up period[161]. - The company has committed to ensuring that there are no fraudulent activities in the public offering of shares on the Shanghai Stock Exchange's Sci-Tech Innovation Board[185]. - The company has appointed Sichuan Huaxin (Group) CPA Firm as its auditor for the 2020 annual audit, with a remuneration of CNY 400,000[189]. - The company has complied with legal requirements for corporate governance and information disclosure, ensuring equal access to information for all shareholders[200]. Innovation and Technology - The company has developed a "volume positioning technology" and a "rigid linkage system" that reduces measurement error to meet the EU MID standard of class 1.5 meters[48]. - The company’s smart gas meters have performance indicators that exceed European and Japanese standards, enhancing its market position[44]. - The company has introduced a gas ultrasonic flow detection technology that enhances measurement accuracy and reliability through multi-channel collaboration[66]. - The company’s IoT smart gas meter integrates sensing, control, and IoT technologies, providing features such as remote prepaid management and real-time pricing[31]. Customer Engagement - The company launched a customer service app and self-service terminals, enabling functions such as payment, remote valve control, and business applications, improving user experience[63]. - The company has established a comprehensive management system for gas operators, integrating daily gas business processing, customer profiles, meter reading, billing, and statistical analysis, enhancing management efficiency and customer satisfaction[62]. - The company will enhance market communication and customer engagement to better understand and guide customer needs[173].