Financial Performance - As of the end of 2016, the company's total assets reached 2.308 billion CNY, an increase of 1.86% compared to the previous year [1] - The equity attributable to the parent company was 1.142 billion CNY, up by 11.65% year-on-year [1] - The company achieved operating revenue of 1.119 billion CNY, a growth of 3.9% compared to the same period last year [1] - The net profit attributable to the parent company was 88 million CNY, reflecting a year-on-year increase of 15.40% [1] - R&D expenses amounted to 135 million CNY, representing a growth of 34.42% [2] Business Development - The company focused on strengthening its core business and innovation-driven strategies to adapt to the military's demand for miniaturized, integrated, modular, and multifunctional equipment [2] - Successfully completed the development and production tasks for military shortwave communication products, including systems for aircraft and helicopters [2] - Expanded into the civilian market by developing a new audio control system for the Xinzhou 600 aircraft, filling a gap in the civil aviation market [2] - The search and rescue product line saw rapid development and significant order growth [2] Strategic Initiatives - A stock incentive plan was approved, granting 11.6832 million restricted shares, accounting for 1.961% of the company's total share capital [3] - The incentive plan aims to enhance corporate governance and align the interests of shareholders, the company, and management [3] Collaborative Projects - The company established Xi'an Aikete Acoustic Technology Co., Ltd. to focus on active noise control technology for aircraft, leveraging collaboration with experts from Xi'an University of Technology [4] - The company is exploring various applications in noise and vibration control, targeting both military and civilian markets [4] Asset Injection Potential - There is speculation regarding potential asset injections from the parent group, which includes real estate, LED, and photovoltaic industries, but no confirmation has been made yet [4]

证券代码：烽火电子 证券简称：000561 陕西烽火电子股份有限公司投资者关系活动记录表 编号：2017-002 号 | --- | --- | --- | |--------------------------------|------------------------------------|----------------------------------------------------------------------------------------------------------| | 投 资 者 关 \n系 活 动 类 \n别 | □ \n■ \n□ 新闻发布会 □路演活动 \n□ | 特定对象调研 □分析师会议 \n媒体采访 □业绩说明会 \n现场参观 □其他 （请文字说明其他活动内容） | | 参 与 单 位 | 证券时报 张栋 曹桢 | | | 名 称 及 人 | | | | 员姓名 | | | | 时间 | 2017 年 8 月 8 | 日 下午 14： 30-17：30 | | 地点 | 董事长办公室 | | | 上 市 公 司 | | | | 接 待 人 员 | 公司 ...

证券代码：烽火电子 证券简称：000561 陕西烽火电子股份有限公司投资者关系活动记录表 编号：2017-003 号 | --- | --- | --- | --- | |-------------|-----------------------------------|----------------------|----------------------------| | | ■ 特定对象调研 □分析师会议 | | | | 投 资 者 关 | □ 媒体采访 □业绩说明会 | | | | 系 活 动 类 | □ 新闻发布会 □路演活动 | | | | 别 | □ 现场参观 □其他 | | （请文字说明其他活动内容） | | | 广发证券 赵炳楠、滕春晓、彭雾 | | | | | 国泰基金 高亮 | | | | 参 与 单 位 | 星石投资 王龙 | | | | 名 称 及 人 | 中航基金 杨中楷 | | | | 员姓名 | 华商基金 杨志栋 | | | | | 宝盈基金 杨思亮 | | | | | 申银万国证券研究所有限公司 王贺嘉 | | | | 时间 | 2017 年 12 月 7 | 日 下午 | ...

证券代码：烽火电子 证券简称：000561 陕西烽火电子股份有限公司投资者关系活动记录表 编号：2017-004 号 | --- | --- | --- | --- | |------------------|-------------------------|---------------------------|----------------------------------------------------------------| | | ■ | 特定对象调研 □分析师会议 | | | 投 资 者 关 | □ | 媒体采访 □业绩说明会 | | | 系 活 动 类 | □ | 新闻发布会 □路演活动 | | | 别 | □ | 现场参观 □其他 | （请文字说明其他活动内容） | | 参 与 单 位 | 方正证券 段小虎、王宝权 | | | | 名 称 及 人 | 华鑫证券 刘文慧 | | | | 员姓名 | | | | | 时间 | 2017 年 12 月 | 20 日 下午 | 14：30-16 ： 30 | | 地点 | 烽火宾馆 | | | | 上 市 公 司 | 董事会秘书 吴亚兵 | ...

陕西烽火电子股份有限公司 2022 年第三季度报告 证券代码：000561 证券简称：烽火电子 公告编号：2022-043 陕西烽火电子股份有限公司 2022 年第三季度报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、误 导性陈述或重大遗漏。 重要内容提示： 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、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。 2.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)声明：保证季度报 告中财务信息的真实、准确、完整。 3.第三季度报告是否经过审计 □是 否 一、主要财务数据 （一） 主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □是 否 | | 本报告期 | 本报告期比上年同期 | 年初至报告期末 | 年初至报告期末比上 | | --- | --- | --- | --- | --- | | | | 增减 | | 年同期增减 | | 营业收入（元） | 238,945,740.45 | -5.98% | 825,519,156.14 | -0.67% | | ...

Financial Performance - The company's operating revenue for the first half of 2022 was ¥586,573,415.69, representing a 1.67% increase compared to ¥576,944,164.03 in the same period last year[21]. - The net profit attributable to shareholders decreased by 44.08% to ¥6,162,425.29 from ¥11,020,649.43 year-on-year[21]. - Basic earnings per share fell by 44.57% to ¥0.0102 from ¥0.0184 in the same period last year[21]. - The company reported a weighted average return on equity of 0.39%, down by 0.31 percentage points from 0.70% in the previous year[21]. - The company reported a total comprehensive income of 6,162,425.29 CNY for the current period, compared to a total comprehensive income of 110,730,622.50 CNY in the previous period, showing a significant decrease[132]. Cash Flow and Liquidity - The net cash flow from operating activities was negative at ¥294,139,778.75, worsening from a negative ¥163,650,159.28 in the previous year[21]. - The company's cash and cash equivalents decreased by 7.63 percentage points to 8.22% of total assets, primarily due to reduced sales receipts compared to the previous year[42]. - Cash flow from operating activities showed a net outflow of CNY 294.14 million, worsening from a net outflow of CNY 163.65 million in the previous year[124]. - The total cash and cash equivalents at the end of the period decreased to 188,426,894.67 CNY from 371,061,047.45 CNY in the previous period, showing a decline of approximately 49%[127]. Assets and Liabilities - Total assets increased by 1.16% to ¥3,934,347,941.86 compared to ¥3,889,065,388.54 at the end of the previous year[21]. - Total liabilities as of June 30, 2022, were RMB 2,089,487,350.25, compared to RMB 2,050,311,182.45 at the beginning of the year, indicating a rise of approximately 1.9%[112]. - The company's equity attributable to shareholders increased slightly from RMB 1,704,873,544.88 to RMB 1,711,004,492.75, a growth of about 0.4%[112]. Research and Development - Research and development investment increased by 22.17% to 104.53 million yuan[35]. - The company has focused on R&D, achieving progress in mobile internet communication systems and digital cluster product development[52]. - Research and development expenses increased to CNY 104,529,510.64 in the first half of 2022, up from CNY 85,558,749.11 in the same period of 2021, reflecting a growth of 22.1%[119]. Market and Revenue Segments - The communication industry accounted for 98.45% of total operating revenue, with a year-on-year increase of 2.32%[35]. - The revenue from audio products grew by 11.50% to 110.78 million yuan, representing 18.89% of total revenue[35]. - The company's revenue for the communication industry reached ¥577.49 million, with a year-over-year increase of 2.32%[37]. Shareholder and Equity Information - The largest shareholder, Shaanxi Fenghuo Communication Group Co., Ltd., holds 41.35% of the total shares, amounting to 250,059,547 shares[97]. - The company reported a decrease of 197,106 restricted shares due to the lifting of restrictions on employee stock options during the reporting period[95]. - The report indicates that the number of ordinary shareholders at the end of the reporting period was 48,756[97]. Corporate Governance and Compliance - The company has not disclosed any significant risks affecting its operational or financial status[4]. - The company has not experienced any major environmental violations or penalties during the reporting period[64]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[69]. Investment and Capital Expenditures - The company invested ¥890,044.20 in the Beijing R&D center, a significant decrease of 96.06% compared to the previous year's investment of ¥22.62 million[44]. - The company made an investment payment of 200,000,000.00 CNY during the current period, indicating a strategic focus on growth through investments[127]. Accounting and Financial Reporting - The financial report for the first half of 2022 was not audited[108]. - The company adheres to the accounting standards and ensures that the financial statements accurately reflect its financial position, operating results, and cash flows[148]. - The company uses Renminbi as its functional currency for accounting purposes[146].

Financial Performance - The company's operating revenue for Q1 2022 was ¥159,248,968.87, a decrease of 14.14% compared to ¥185,470,341.68 in the same period last year[3] - The net profit attributable to shareholders was -¥35,113,955.27, worsening from -¥14,896,662.20 year-on-year[3] - The company reported a net loss of CNY 39,477,287.62 for Q1 2022, compared to a loss of CNY 13,755,155.32 in the previous year[19] - The net profit for Q1 2022 was -45,255,793.04 CNY, compared to -20,120,499.08 CNY in Q1 2021, indicating a decline of approximately 124.5% year-over-year[20] - The company's total comprehensive income for Q1 2022 was -45,255,793.04 CNY, compared to -20,120,499.08 CNY in Q1 2021, indicating a worsening overall financial position[20] Cash Flow - The net cash flow from operating activities was -¥250,184,555.04, significantly lower than -¥78,806,806.41 in the previous year[9] - Cash flow from operating activities showed a net outflow of -250,184,555.04 CNY, compared to -78,806,806.41 CNY in Q1 2021, representing an increase in cash burn[22] - The company reported cash inflows from operating activities of 150,642,169.26 CNY, down from 345,982,348.01 CNY in the previous year, a decline of about 56.5%[22] - The cash flow from investment activities was -¥195,401,294.35, a stark contrast to a positive cash flow of ¥10,999,399.00 in the same period last year[9] - The total cash outflow from investing activities was -195,401,294.35 CNY, compared to an inflow of 10,999,399.00 CNY in Q1 2021, indicating a significant shift in investment strategy[22] - The net cash flow from financing activities was 14,915,041.40 CNY, an increase from 6,478,475.00 CNY in the same quarter last year, suggesting improved financing efforts[23] Assets and Liabilities - Total assets at the end of the reporting period were ¥3,783,579,941.76, down 2.71% from ¥3,889,065,388.54 at the end of the previous year[3] - Total assets decreased to CNY 3,783,579,941.76 from CNY 3,889,065,388.54, a reduction of 2.72%[16] - Total liabilities decreased to CNY 1,990,108,322.14 from CNY 2,050,311,182.45, a decline of 2.93%[17] - The total equity attributable to shareholders decreased by 2.06% to ¥1,669,743,226.87 from ¥1,704,873,544.88 at the end of the previous year[3] - The company's equity attributable to shareholders decreased to CNY 1,669,743,226.87 from CNY 1,704,873,544.88, a decrease of 2.06%[17] Operational Metrics - Total operating costs for Q1 2022 were CNY 201,264,718.21, down 7.71% from CNY 218,110,939.54 year-on-year[19] - The weighted average return on net assets decreased to -2.25%, down 1.30 percentage points from -0.95% in the same period last year[3] - Research and development expenses for Q1 2022 were CNY 35,669,821.02, slightly down from CNY 35,986,708.91 in the previous year[19] - The basic earnings per share (EPS) for Q1 2022 was -0.0584, compared to -0.0249 in the same period last year, reflecting a worsening performance[20] Other Income and Expenses - The company reported a significant decrease in other income, which fell by 73.24% to ¥15,238.61 compared to ¥56,947.64 in the previous year[8] - The company's financial expenses increased significantly, amounting to ¥562,605.19 compared to -¥775,700.00 in the previous year[8] - Cash and cash equivalents decreased to CNY 364,480,143.01 from CNY 616,556,147.65 at the beginning of the year, a decline of 41.00%[15] - Accounts receivable increased to CNY 1,149,145,930.86 from CNY 1,097,441,851.90, reflecting a growth of 4.73%[15] - Inventory rose to CNY 955,559,106.86, up 14.43% from CNY 835,148,224.37 at the beginning of the year[16] Mergers and Acquisitions - The company did not report any net profit from mergers under common control for the current or previous periods, indicating no significant acquisitions during this timeframe[20]

Financial Performance - The company's operating revenue for 2021 was ¥1,502,408,057.22, representing an increase of 8.29% compared to ¥1,387,331,597.75 in 2020[22] - The net profit attributable to shareholders of the listed company was ¥110,730,622.50, up 12.22% from ¥98,671,796.27 in the previous year[22] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥82,106,337.02, a significant increase of 71.64% compared to ¥47,835,551.80 in 2020[22] - Basic earnings per share increased by 12.50% to CNY 0.18 from CNY 0.16 in the previous year[23] - Total assets grew by 8.86% to CNY 3,889,065,388.54 compared to CNY 3,572,525,830.26 at the end of the previous year[23] - Net assets attributable to shareholders increased by 8.49% to CNY 1,704,873,544.88 from CNY 1,571,498,699.65 year-over-year[23] - The company reported a net profit of CNY 105,191,660.54 in Q4 2021, a significant recovery from a loss of CNY 14,909,226.29 in Q1 2021[27] - The company achieved an operating income of CNY 1.50 billion in 2021, representing an 8.29% increase from the previous year, with R&D investment amounting to CNY 235 million, accounting for 15.62% of operating income[38] Cash Flow and Liquidity - The net cash flow from operating activities decreased by 64.62% to ¥32,344,292.36 from ¥91,427,175.23 in 2020[22] - The net cash flow from operating activities in Q4 2021 was CNY 353,947,464.80, indicating a strong operational performance[27] - Operating cash inflow totaled ¥1,669,548,069.33, a 39.00% increase compared to the previous year[55] - The company's cash and cash equivalents increased by ¥54,909,396.03, reversing a previous decrease of ¥203,105,066.12[55] - The cash and cash equivalents increased to RMB 616.56 million from RMB 552.19 million in the previous year, indicating improved liquidity[200] Research and Development - The company has established a complete research and production capability layout to meet user information construction needs over the next five to ten years[33] - The company is recognized as a high-tech enterprise and has developed core technologies in voice bone conduction and active noise reduction[35] - Research and development expenses increased by 13.40% to ¥234,737,614.03, which is 15.62% of operating revenue[53] - The number of R&D personnel grew by 5.32% to 831, with the proportion of R&D staff increasing to 29.00%[52] - The company plans to focus on innovation and quality improvement in 2022, aiming for high-quality sustainable development and expanding its market presence in defense-related sectors[72] Business Strategy and Market Position - The company has undergone significant asset restructuring since 2010, shifting its main business focus to electronic communication equipment manufacturing[20] - The company is actively expanding its international defense business, having provided communication products and services to over 30 countries and regions[35] - The communication sector contributed CNY 1.48 billion to the total revenue, which is 98.69% of the total operating income, showing an 8.60% increase year-on-year[43] - The company aims to enhance its core competitiveness by promoting new products such as fourth-generation shortwave radios and military communication systems[73] - The overall economic environment remains challenging, with pressures from demand contraction and supply shocks, but the company is committed to adapting and seizing opportunities in military modernization[72] Governance and Management - The company has a complete internal governance structure, ensuring clear responsibilities and effective checks and balances among its governing bodies[82] - The company has fully separated its operations from its controlling shareholder, ensuring independent business capabilities[83] - The company’s management team includes professionals with extensive backgrounds in finance and engineering, enhancing its operational capabilities[90] - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 4.82 million CNY[99] - The company has implemented a performance-based remuneration system for senior management, which is reviewed annually[97] Shareholding and Equity - The total number of shares held by the board members at the end of the reporting period was 608,264 shares, down from 637,514 shares at the beginning of the period, indicating a decrease of approximately 4.6%[86] - The largest shareholder, Shaanxi Fenghuo Communication Group Co., Ltd., holds 40.64% of the shares, totaling 245,732,847[174] - The second-largest shareholder, Shaanxi Electronic Information Group Co., Ltd., holds 12.74% of the shares, totaling 77,037,508[174] - The company has no foreign shareholding, with all shares being held by domestic entities[169] - The total number of unrestricted shares increased by 2,590,072, bringing the total to 601,766,658, which is 99.52% of total shares[169] Internal Control and Compliance - The company maintained effective internal control over financial reporting as of December 31, 2021, according to the internal control audit report[123] - The internal control audit report was disclosed on April 16, 2021, and received a standard unqualified opinion[123] - The company has implemented various internal controls to mitigate the risk of material misstatement due to fraud or error[196] - The audit opinion for the financial statements was a standard unqualified opinion[187] - The company has not faced any administrative penalties related to environmental issues during the reporting period[126] Social Responsibility and Sustainability - The company actively engages in social responsibility, contributing to community welfare and disaster relief efforts[127] - The company emphasizes green development, integrating ecological protection into its strategic planning and operations[127] - The company has committed to poverty alleviation through educational and material donations, achieving positive outcomes in its initiatives[129] - The company has implemented a comprehensive pandemic response plan, including strict control measures and support for frontline efforts[127]

Financial Performance - The company's operating revenue for Q3 2021 was ¥254,155,745.35, representing an increase of 18.94% compared to the same period last year[3]. - Total operating revenue for Q3 2021 reached ¥831,099,909.38, an increase of 18.2% compared to ¥702,759,544.43 in the same period last year[22]. - The net profit for Q3 2021 was -¥3,259,333.49, compared to -¥609,901.36 in Q3 2020, indicating a deeper loss year-over-year[23]. - The company reported a gross profit margin of approximately 0.3% for Q3 2021, down from the previous year's margin[22]. - The net profit attributable to shareholders was -¥5,481,687.47, while the net profit after deducting non-recurring gains and losses was -¥6,092,866.56[3]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥3,686,976,387.88, an increase of 3.20% from the end of the previous year[3]. - Total liabilities increased to ¥1,987,289,712.86, up from ¥1,865,296,381.89, reflecting a rise of 6.5%[20]. - Total current assets increased to ¥2,780,374,133.81 from ¥2,693,657,377.57 year-over-year[18]. Cash Flow - The cash flow from operating activities showed a net outflow of -¥321,603,172.44, indicating increased cash payments for goods and services compared to the previous year[9]. - The company's cash flow from operating activities showed a significant change, with a focus on improving liquidity in future quarters[25]. - Operating cash inflow for the current period was $784.39 million, up from $582.08 million in the previous period, representing a 34.7% increase[26]. - Net cash outflow from operating activities was -$321.60 million, compared to -$133.04 million in the previous period, indicating a worsening of 142.3%[27]. - Total cash outflow from operating activities was $1.11 billion, compared to $715.12 million in the previous period, an increase of 54.7%[27]. Inventory and Expenses - The company's inventory increased by 46.99% to ¥947,441,217.71, primarily due to increased raw material purchases[7]. - The company reported a 32.93% rise in management expenses, totaling ¥195,938,195.20, mainly due to increased salary costs[8]. - Research and development expenses increased to ¥138,788,044.12, a rise of 19.6% from ¥116,043,269.99 in the prior year[23]. Shareholder Information - Total number of common shareholders at the end of the reporting period is 54,994[11]. - Shaanxi Fenghuo Communication Group Co., Ltd. holds 40.64% of shares, totaling 245,732,847 shares[11]. - Shaanxi Electronic Information Group Co., Ltd. holds 12.74% of shares, totaling 77,037,508 shares[11]. Other Income and Financing - Other income increased by 68.72% to ¥3,091,258.36, attributed to higher government subsidies related to normal business operations[8]. - The company experienced a 76.07% decrease in non-operating income, amounting to ¥4,792,487.16, due to reduced government subsidies unrelated to business operations[8]. - The company announced the progress of non-public issuance of exchangeable bonds by the controlling shareholder[13]. - No financing or securities lending activities reported among the top ten shareholders[12].

Financial Performance - The company achieved operating revenue of CNY 576.94 million, an increase of 17.96% compared to the same period last year[22]. - The net profit attributable to shareholders of the listed company was CNY 11.02 million, up 5.16% year-on-year[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 1.66 million, a decrease of 79.16% compared to the previous year[22]. - The total assets at the end of the reporting period were CNY 3.73 billion, representing a growth of 4.40% from the end of the previous year[22]. - The net assets attributable to shareholders of the listed company were CNY 1.58 billion, an increase of 0.71% from the end of the previous year[22]. - The basic earnings per share were CNY 0.02, doubling from CNY 0.01 in the same period last year[22]. - The company reported a total revenue of 98,671.79 million, which is a 6.27% increase from the previous year[140]. - The net profit attributable to shareholders was 604.69 million, with a year-over-year growth of 21%[138]. - The total equity attributable to shareholders at year-end was 604.69 million, with a 3.1% increase from the previous year[138]. - The company reported a net profit of 1,153.84 million yuan, which is an increase of 8.9% from the previous year[142]. Cash Flow and Investments - The company reported a net cash flow from operating activities of CNY -163.65 million, worsening from CNY -69.87 million in the previous year[22]. - The company achieved a net cash flow from financing activities of ¥82,040,018.06, a significant increase of 92.84% compared to ¥42,543,130.35 in the previous year[39]. - The cash inflow from operating activities was 488,560,729.85 CNY, significantly higher than 295,723,774.20 CNY in the first half of 2020, indicating improved sales performance[133]. - The total cash outflow from investing activities was 16,399,260.60 CNY, compared to 127,112,125.05 CNY in the previous year, suggesting a decrease in investment expenditures[134]. - The net cash flow from investing activities was -16,399,260.60 CNY, an improvement from -72,112,125.05 CNY in the previous year, indicating better investment management[134]. Research and Development - The company is engaged in ongoing research and development efforts, although specific details were not disclosed in the report[5]. - The company's R&D investment reached ¥85,558,749.11, an increase of 11.25% from ¥76,903,419.26 in the previous year[38]. - The company's research and development expenses for the first half of 2021 were CNY 85,558,749.11, compared to CNY 76,903,419.26 in the same period last year, indicating a growth of 11.6%[122]. - The company has established a clear technological innovation strategy with R&D centers in Baoji, Xi'an, and Beijing, focusing on military communication and audio technology[36]. Market and Sales - The communication products and supporting equipment accounted for 80.61% of total revenue, with a year-on-year increase of 11.82%[40]. - The company is actively expanding into new markets, including emergency communication vehicles and digital cluster systems, while also targeting international defense markets[32]. - The revenue from acoustic devices increased significantly, with a year-on-year growth of 73.60%, and the gross margin improved by 4.19 percentage points to 40.31%[41]. - Domestic revenue amounted to ¥576.94 million, reflecting a 17.96% increase compared to the previous year, with a gross margin growth of 1.09 percentage points to 41.19%[41]. Assets and Liabilities - The company's cash and cash equivalents decreased by 2.80 percentage points to 12.66% of total assets, totaling ¥472.35 million[46]. - Accounts receivable increased by 5.08 percentage points to 30.78% of total assets, amounting to ¥1.15 billion[46]. - Inventory grew by 3.50 percentage points to 21.54% of total assets, totaling ¥803.49 million[46]. - Total liabilities reached CNY 2,015,153,517.14, up from CNY 1,865,296,381.89, indicating an increase of about 8.0%[116]. - The company's short-term borrowings significantly increased to CNY 123,000,000.00 from CNY 21,000,000.00, showing a rise of approximately 485.7%[116]. Governance and Compliance - The company disclosed the resignation of board members and supervisors, indicating changes in its governance structure[94]. - The company maintained compliance with relevant regulations regarding related party transactions throughout the reporting period[80]. - The financial report for the first half of 2021 was not audited[112]. Strategic Plans - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company aims to enhance shareholder value through strategic investments and potential acquisitions in the upcoming fiscal year[138]. - The company plans to expand its market presence, focusing on new product development and technological advancements[138]. - The company is focusing on enhancing its core competitiveness to address increasing operational risks from technological innovations and market competition[58].