第一节 重要提示 日海智能科技股份有限公司 2020 年第一季度报告全文 日海智能科技股份有限公司 2020 年第一季度报告 2020 年 04 月 1 日海智能科技股份有限公司 2020 年第一季度报告全文 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、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人刘平、主管会计工作负责人张彬蓉及会计机构负责人(会计主管 人员)余明声明：保证季度报告中财务报表的真实、准确、完整。 2 日海智能科技股份有限公司 2020 年第一季度报告全文 第二节 公司基本情况 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 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业收入（元） | 671,233,644.64 | 1,413,017,626.65 | -52.50% | | 归属于上市公司股东的净利润（元） | -18,480,851.17 | 7,201 ...

Financial Performance - Operating revenue for the reporting period was ¥1,055,592,275.12, representing a year-on-year growth of 23.75%[7] - Net profit attributable to shareholders was ¥37,280,269.14, a decrease of 30.95% compared to the same period last year[7] - The company reported a total net profit of ¥80,474,247.37 for the year-to-date, down 21.98% compared to the same period last year[7] - Total operating revenue for the current period reached ¥1,055,592,275.12, an increase of 23.7% compared to ¥852,991,371.11 in the previous period[40] - Net profit for the current period was ¥36,450,381.01, a decrease of 34.0% from ¥55,238,945.03 in the same period last year[41] - The company reported a total comprehensive income of ¥38,438,596.20, down 30.4% from ¥55,238,945.03 in the previous period[42] - Total operating revenue for the period reached ¥3,423,604,396.32, an increase of 27.6% compared to ¥2,681,375,732.60 in the previous period[47] - Net profit for the period was ¥73,480,928.14, a decrease of 31.8% from ¥107,730,612.65 in the same period last year[49] Earnings and Profitability - Basic earnings per share were ¥0.12, down 29.41% from the previous year[7] - Basic earnings per share decreased to ¥0.12 from ¥0.17, reflecting a decline of 29.4%[42] - Operating profit for the current period was ¥38,281,584.04, a decrease of 18.2% from ¥46,838,510.40 in the prior period[41] - Operating profit was ¥74,015,199.81, down 25.0% from ¥98,575,206.45 in the prior year[49] - The company achieved a gross profit margin of approximately 23.5% for the current period, down from 27.5% in the previous period[40] Cash Flow and Liquidity - The net cash flow from operating activities was -¥77,597,704.76, a decline of 73.20% year-on-year[7] - Cash generated from operating activities was ¥3,576,168,747.84, compared to ¥2,790,312,601.98 in the prior period[56] - Total cash inflow from operating activities was 3,748,910,189.71 CNY, while cash outflow was 4,418,335,423.59 CNY, resulting in a net cash outflow of 669,425,233.88 CNY[57] - Cash flow from investing activities showed a net outflow of -152,542,714.40 CNY, an improvement from -614,724,562.25 CNY year-over-year[58] - The net cash flow from financing activities was 732,705,066.22 CNY, down from 1,007,366,190.17 CNY in the same quarter last year[58] Assets and Liabilities - Total assets at the end of the reporting period reached ¥7,951,467,356.32, an increase of 15.47% compared to the end of the previous year[7] - Current liabilities rose to CNY 5,526,783,148.35, compared to CNY 4,460,976,979.51, reflecting an increase of about 23.9%[32] - The company's total liabilities reached CNY 5,825,902,570.31, up from CNY 4,828,330,047.53, indicating a growth of approximately 20.7%[32] - Owner's equity totaled CNY 2,125,564,786.01, an increase from CNY 2,057,569,451.23, showing a growth of about 3.3%[33] - The total current assets amounted to CNY 4,051,134,021.98, up from CNY 3,008,093,953.87, indicating a growth of about 34.7%[36] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 21,513[11] - The largest shareholder, Zhuhai Rundatai Investment Partnership, held 24.69% of the shares, amounting to 77,025,000 shares[11] Research and Development - Research and development expenses were ¥44,910,866.40, a decrease of 26.5% compared to ¥61,055,647.79 in the last period[40] - Research and development expenses totaled ¥109,446,133.07, slightly up from ¥105,922,852.55 in the previous period[47] - Development expenditures rose substantially, indicating increased investment in R&D aligned with the company's strategic needs[15] Financial Strategy and Future Outlook - The company is in the process of a non-public issuance of A-shares, pending approval from the China Securities Regulatory Commission[18] - The company plans to focus on market expansion and new product development in the upcoming quarters to drive future growth[41]

Financial Performance - The company's revenue for the reporting period reached ¥2,368,012,121.20, representing a 29.51% increase compared to ¥1,828,384,361.49 in the same period last year[19]. - Net profit attributable to shareholders decreased by 12.11% to ¥43,193,978.23 from ¥49,147,231.79 year-on-year[19]. - The net cash flow from operating activities was negative at -¥591,827,529.12, a decline of 17.33% compared to -¥504,393,731.95 in the previous year[19]. - Total assets increased by 9.83% to ¥7,562,853,014.58 from ¥6,885,899,498.76 at the end of the previous year[19]. - The company's total liabilities as of June 30, 2019, amounted to CNY 5,475,726,824.77, compared to CNY 4,828,330,047.53 at the end of 2018, indicating a growth of 13.4%[138]. - The company's total equity as of June 30, 2019, was CNY 2,087,126,189.81, compared to CNY 2,057,569,451.23 at the end of 2018, showing a slight increase of 1.4%[138]. - The total comprehensive income for the first half of 2019 was a loss of ¥33,622,863.78[167]. - The company reported a decrease in total equity of ¥41,422,863.78 during the reporting period[166]. Strategic Initiatives - The company launched several AIoT products, including smart kits, 5G modules, and cloud modules, enhancing its market presence in smart cities and logistics[27]. - The company aims to become a leader in the AIoT sector, focusing on three main product lines: cloud platform, AIOT smart devices, and a range of intelligent terminals[36]. - The company has signed a strategic cooperation agreement with Ping An Insurance to expand its market presence in Guangdong Province[33]. - The company is positioned to benefit from the projected growth of the IoT market, with an expected industry scale exceeding 1.5 trillion yuan by 2020[37]. - The company has implemented a "big middle platform, small front desk" operational structure to improve efficiency and responsiveness to market demands[34]. - The company plans to expand its market presence and invest in new technologies to drive future growth[144]. Risks and Challenges - The company faces risks related to acquisitions, accounts receivable recovery, market competition, technology development, supplier concentration, and rising raw material prices[4]. - The company emphasizes the importance of reading the section on risks and countermeasures in the report[4]. - The company faces risks related to accounts receivable collection, particularly from telecom operators and government clients, which could lead to increased bad debt provisions[70]. - The company has implemented measures to mitigate risks from supplier concentration and rising raw material prices, particularly in chip procurement, which constitutes 40%-50% of module costs[71]. - The company is transitioning towards AIoT, requiring a robust management team to handle the complexities of its expanding organizational structure[69]. Governance and Compliance - The board of directors and management confirm the accuracy and completeness of the financial report, assuming legal responsibility for any misstatements or omissions[3]. - All directors attended the board meeting to review the report, ensuring collective responsibility for its content[4]. - The company is committed to ensuring the financial report's authenticity and accuracy, as stated by the responsible personnel[3]. - The company has implemented measures to enhance internal governance and ensure accurate information disclosure[84]. - The company received a regulatory letter from the Shenzhen Stock Exchange regarding inaccuracies in its 2018 profit forecast and report, leading to internal improvements in financial practices[83]. Research and Development - R&D expenses rose by 43.84% to ¥64,535,266.67, reflecting the company's commitment to developing IoT solutions and AI products[48]. - The company aims to enhance its research and development capabilities to innovate new technologies and products[162]. - The company has adopted a flexible credit policy for major clients, assessing their creditworthiness to manage accounts receivable risks effectively[70]. Shareholder Information - The company plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves[5]. - The company has not declared any cash dividends or stock bonuses for the first half of 2019, focusing on reinvestment instead[75]. - The total number of shares after the recent changes is 312,000,000, with 99.79% being unrestricted shares[114]. - The largest shareholder, Zhuhai Rundatai Investment Partnership, holds 24.69% of the shares, totaling 77,025,000 shares, which are currently pledged[118]. Subsidiaries and Investments - The company established several subsidiaries focused on IoT technology, including Shenzhen Day Sea Intelligent Technology Co., Ltd., with an investment of ¥5,000,000.00[61]. - The company reported a total investment of ¥15,864.04 million in a U.S. company and ¥16,231.80 million in a subsidiary in Hong Kong, with respective net asset contributions of 7.60% and 7.78%[30]. - The company has established itself as a key partner for China Telecom and Guangdong Unicom in the IoT sector, launching a smart smoke detector SaaS platform and providing various IoT services[33]. Financial Management - Financial expenses surged by 132.63% to ¥68,539,672.81, attributed to increased bank borrowings and interest payments[48]. - The company’s short-term borrowings increased as it sought to supplement operational funds[29]. - The company has not engaged in any asset or equity acquisitions or sales during the reporting period[92]. - The company has not reported any related party debt transactions[94]. Market Performance - The IoT sector generated ¥1,355,735,665.46, accounting for 57.25% of total revenue, with a remarkable year-on-year growth of 127.41%[50]. - The communication sector's revenue decreased by 17.85% to ¥1,012,276,455.74, primarily due to reduced investment from telecom operators and intense price competition[52]. - The international revenue grew significantly by 177.34% to ¥348,900,379.00, highlighting the company's expanding global presence[50].

Financial Performance - The company's revenue for Q1 2019 reached ¥1,413,017,626.65, representing a 136.45% increase compared to ¥597,608,156.57 in the same period last year[8] - Net profit attributable to shareholders was ¥7,201,637.76, a significant turnaround from a loss of ¥1,908,030.13, marking a 477.44% increase[8] - The net profit after deducting non-recurring gains and losses was ¥7,820,942.25, compared to a loss of ¥5,500,949.79, reflecting a 242.17% improvement[8] - The basic earnings per share increased to ¥0.02 from a loss of ¥0.01, showing a 300.00% growth[8] - Operating profit for Q1 2019 was CNY 10,465,548.25, compared to a loss of CNY 8,586,700.08 in the same period last year, indicating a turnaround in profitability[35] - Net profit for Q1 2019 was CNY 3,597,602.49, recovering from a net loss of CNY 3,750,491.57 in Q1 2018, marking a positive shift in financial performance[35] Assets and Liabilities - Total assets at the end of the reporting period were ¥6,867,451,433.09, a slight decrease of 0.27% from ¥6,885,899,498.76 at the end of the previous year[8] - The net assets attributable to shareholders increased to ¥2,037,269,436.05, up 0.35% from ¥2,030,067,798.30[8] - Total assets as of March 31, 2019, amounted to CNY 4,773,521,937.74, up from CNY 4,381,363,706.40 at the end of 2018, reflecting a growth of approximately 8.9%[32] - Current liabilities increased to CNY 2,794,013,972.46 from CNY 2,375,919,050.44, representing a rise of approximately 17.6%[31] - The total liabilities as of March 31, 2019, were CNY 2,916,872,869.62, compared to CNY 2,524,005,356.54 at the end of 2018, indicating an increase of approximately 15.5%[31] Cash Flow - The company reported a net cash flow from operating activities of -¥424,438,055.77, which is an 8.01% decline compared to -¥392,948,083.39 in the previous year[8] - The net cash flow from investing activities increased significantly, primarily due to the previous payment for the acquisition of equity in ChipXunTong[24] - The net cash flow from financing activities decreased significantly due to higher short-term borrowing and substantial repayments during the reporting period[24] - Cash flow from operating activities shows a net outflow of ¥424,438,055.77, worsening from a net outflow of ¥392,948,083.39 in the previous period[43] - The total cash and cash equivalents at the end of the period is ¥185,982,207.02, a decrease from ¥662,358,802.21 at the end of the previous period[44] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 18,508[11] - The largest shareholder, Zhuhai Rundatai Investment Partnership, holds 24.69% of the shares, totaling 77,025,000 shares[11] Expenses - Sales expenses increased significantly due to aggressive market strategies and an expanded sales team for the IoT business[24] - Financial expenses rose sharply as a result of increased borrowing to support the rapid development of the IoT business[24] - Research and development expenses for Q1 2019 were CNY 38,632,281.69, up from CNY 28,761,529.79 in Q1 2018, reflecting an increase of approximately 34.3%[33] - Research and development expenses for the current period are ¥5,545,682.11, down from ¥9,414,653.06 in the previous period, reflecting a 41.5% reduction[38] Inventory and Receivables - Accounts receivable increased to ¥1,956,704,032.00 from ¥1,621,259,418.31, indicating a growth in sales and credit extended to customers[24] - Inventory decreased to ¥2,493,746,336.79 from ¥2,658,166,571.52, reflecting changes in production and sales dynamics[24] - The company reported a significant increase in accounts receivable, which rose to CNY 536,930,010.32 from CNY 484,145,276.16, indicating a growth of about 10.9%[30] Audit and Compliance - The company has not undergone an audit for the first quarter report, which may affect the reliability of the financial data presented[55]

Financial Performance - The company's revenue for 2018 was approximately ¥4.42 billion, representing a 47.84% increase compared to ¥2.99 billion in 2017[18]. - The net profit attributable to shareholders decreased by 29.72% to ¥71.70 million from ¥102.02 million in 2017[18]. - The net cash flow from operating activities was negative at ¥816.19 million, a decline of 1,234.51% compared to ¥71.94 million in 2017[18]. - Total assets increased by 38.56% to approximately ¥6.89 billion at the end of 2018, up from ¥4.97 billion at the end of 2017[18]. - The company reported a significant decline in basic and diluted earnings per share, which fell by 30.30% to ¥0.23 from ¥0.33 in 2017[18]. - The company reported a significant increase in intangible assets due to the acquisition of ChipX, which contributed to the growth of intangible assets[33]. - The company reported a significant increase in investment cash outflow by 182.67% to RMB 923,094,005.70, primarily due to acquisitions and capital increases in subsidiaries[72]. - The company reported a revenue of ¥999,935,874.81 from ChipXunTong, contributing significantly to overall performance[86]. - The company reported a reasonable increase in accounts receivable due to the growth in business revenue, maintaining a stable ratio of accounts receivable to revenue compared to the previous year[33]. Dividend Policy - The company plans to distribute a cash dividend of 0.25 RMB per 10 shares to all shareholders based on the total share capital as of April 22, 2019[4]. - The company’s cash dividend payout ratio for the 2018 fiscal year was aligned with its profit distribution policy and shareholder interests[96]. - The cash dividend amount for 2018 was 7.8 million, representing 100% of the total profit distribution[100]. - The company has implemented a cash dividend policy, distributing 0.25 CNY per 10 shares for the 2018 fiscal year[97]. Business Strategy and Development - The company has transitioned to an AIoT business model, expanding into IoT modules and smart terminal products, as well as comprehensive IoT solutions[17]. - The company aims to drive innovation in traditional communication services, promoting the intelligent upgrade of traditional products[28]. - The company aims to strengthen its AIoT capabilities by enhancing its cloud, edge, and solution offerings, leveraging the advantages of 5G technology[31]. - The company has made strategic acquisitions to strengthen its market position, including the purchase of leading communication module manufacturers[28]. - The company has established partnerships with major telecom operators such as China Mobile, China Telecom, and China Unicom for AIoT services[28]. - The company aims to focus on 5G and AIoT solutions over the next 2-3 years, increasing R&D investment and completing technology upgrades to capitalize on market opportunities[88]. - The company has launched new AIoT products including smart kits and cloud modules, enhancing its product offerings in the market[28]. - The company has launched new products such as smart light poles and smart optical distribution frames to improve market competitiveness[32]. - The company has established several new subsidiaries, including Chongqing Xintong for R&D and Beijing Rihai for IoT operations[87]. Research and Development - The total R&D expenditure increased by 134.43% to RMB 185,559,957.08, accounting for 4.20% of operating revenue[69]. - The number of R&D personnel increased by 28.43% to 1,256, representing 43.09% of the total workforce[69]. - The company has accumulated over 600 patents, including more than 130 invention patents, and over 100 software copyrights as of December 31, 2018[38]. - The company has introduced the world's first AIoT mobile intelligent computing device, integrating IoT, edge computing, and AI technologies[48]. - The company has made breakthroughs in the small cell market, winning multiple bids from major telecom operators, indicating a strong position in the 5G preparation[48]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements in the annual report, highlighting potential risks and countermeasures in future operations[4]. - The company has a strict accounts receivable management system to mitigate risks associated with delayed payments from major clients like telecom operators[91]. - The company has a comprehensive internal control system to strengthen risk management following acquisitions[90]. - The company has faced risks related to acquisitions, including integration challenges and potential goodwill impairment due to multiple acquisitions[89]. Corporate Governance - The board of directors has confirmed the authenticity, accuracy, and completeness of the annual report, ensuring no false records or significant omissions[3]. - The company has established an investor relations section on its official website to ensure transparency and protect the rights of shareholders, especially minority investors[143]. - The board of directors consists of 7 members, including 3 independent directors, complying with legal and regulatory requirements[186]. - The company has conducted multiple shareholder meetings, with attendance rates ranging from 5.13% to 38.10% across various meetings in 2018[193]. - The audit committee held 7 meetings during the reporting period, reviewing financial reports and internal control audits[198]. Employee Relations - The company has implemented a comprehensive employee welfare program, including medical, pension, unemployment, work injury, maternity insurance, and housing fund contributions[144]. - The company has a well-structured training system and regularly organizes activities to enhance employee engagement and cohesion[144]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounts to 491.52 million yuan[178]. - The total number of employees in the company is 2,915, with 1,266 in the parent company and 1,649 in major subsidiaries[179]. Environmental Responsibility - The company has committed to environmental protection, with no incidents of environmental pollution or violations reported during the period[142]. - The company has maintained a focus on reducing energy consumption and promoting sustainable practices[142].

Financial Performance - Operating revenue for the current period was CNY 852,991,371.11, representing an 8.28% increase year-on-year, while year-to-date revenue reached CNY 2,681,375,732.60, up 48.58%[8] - Net profit attributable to shareholders increased by 29.35% to CNY 53,994,056.03 for the current period, with a year-to-date net profit of CNY 103,141,287.82, up 46.40%[8] - Basic earnings per share rose by 30.77% to CNY 0.17 for the current period, with diluted earnings per share also at CNY 0.17[8] - The weighted average return on equity increased to 2.63%, up from 1.27% in the previous year[8] - The company expects a net profit attributable to shareholders to increase by 47.03% to 96.04% in 2018, with an estimated range of 150 million to 200 million yuan[23] Assets and Liabilities - Total assets increased by 26.06% to CNY 6,264,541,408.76 compared to the end of the previous year[8] - The company’s goodwill increased significantly due to the acquisition of ChipXunTong, where the purchase price exceeded the identifiable net assets[17] - The company’s investment properties increased significantly as its subsidiary leased out idle real estate, adding new rental space[16] - The company’s long-term borrowings increased significantly as it adjusted its financing strategies in response to current market conditions[17] Cash Flow - The net cash flow from operating activities was negative at CNY -289,596,886.52, a decrease of 49.46% compared to the same period last year[8] - The net cash flow from operating activities decreased significantly, primarily due to increased operational funding requirements from the newly consolidated companies[19] - The company's cash and cash equivalents significantly decreased due to the acquisition of ChipXunTong and investment in the US company Aira, which required substantial cash outflow[16] Shareholder Information - The total number of shareholders at the end of the reporting period was 15,230[11] - The largest shareholder, Zhuhai Rundatai Investment Partnership, held 24.69% of the shares, totaling 77,025,000 shares[11] - No agreed repurchase transactions were conducted by the top 10 shareholders during the reporting period[13] Investments and Expenditures - Accounts receivable and notes receivable increased significantly, primarily due to growth in the IoT business and the consolidation of ChipXunTong and LongShang Technology[16] - The company reported a substantial increase in development expenditures, attributed to new R&D projects initiated following the acquisition of ChipXunTong and the strategic needs of its wholly-owned subsidiary[16] - Financial expenses increased significantly due to the acquisition of LongShang, ChipXunTong, and Aira, leading to higher bank borrowings[18] Future Outlook - The company anticipates that the implementation of smart city, smart transportation, and smart agriculture IoT solutions will generate revenue in the fourth quarter[24] - The company reported non-recurring gains and losses totaling CNY 17,254,442.03 for the year-to-date period[9]

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 1,828,384,361.49, representing a 79.80% increase compared to CNY 1,016,915,862.69 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was CNY 49,147,231.79, up 71.19% from CNY 28,709,642.86 year-on-year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses surged by 736.68% to CNY 42,768,792.39 from CNY 5,111,713.65 in the previous year[18]. - The basic earnings per share increased by 71.20% to CNY 0.1575, compared to CNY 0.0920 in the same period last year[18]. - The company achieved a total revenue growth of 79.80% year-on-year, with net profit attributable to shareholders increasing by 71.19% during the reporting period[44]. - The company reported a significant increase in net profit attributable to shareholders, largely due to the integration of Xinxun Technology and Longshang Technology, which improved operational efficiency and product margins[48]. - The net profit for the same period in 2017 was CNY 7,045,320, indicating significant growth driven by market opportunities in IoT applications[70]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 5,377,532,844.03, an increase of 8.21% from CNY 4,969,529,267.25 at the end of the previous year[18]. - The net assets attributable to shareholders of the listed company rose by 1.93% to CNY 2,023,517,562.82 from CNY 1,985,290,109.83 at the end of the previous year[18]. - The total liabilities grew to CNY 3,290,931,318.39 from CNY 2,939,499,725.23, marking an increase of approximately 11.9%[126]. - The company's total liabilities stood at CNY 1,755,588,285.60, an increase from CNY 1,125,966,174.15 year-on-year[134]. - The company's goodwill increased significantly to CNY 588.62 million, accounting for 10.95% of total assets, up from 2.36% due to the acquisition of Simcom Wireless Technology[55]. - The total owner's equity at the end of the period is CNY 2,086,601,525.64, showing a significant change from the previous year's balance[153]. Cash Flow - The net cash flow from operating activities was negative at CNY -504,393,731.95, worsening from CNY -90,606,019.10 in the same period last year, a decline of 456.69%[18]. - Cash generated from operating activities was CNY 1,692,958,031.64, compared to CNY 1,120,467,224.23 in the same period last year, indicating a growth of 51.1%[140]. - The total cash inflow from operating activities amounted to 1,793,190,664.08 CNY, while cash outflow was 2,297,584,396.03 CNY, resulting in a net cash outflow of 504,393,731.95 CNY[142]. - The company incurred a net cash outflow of -122,621,709.16 CNY in cash and cash equivalents during the period, contrasting with a net inflow of 85,526,087.64 CNY in the previous period[145]. Investments and Acquisitions - The company completed the acquisition of 100% of XunTong, which contributed to an increase in intangible assets and goodwill due to the acquisition price exceeding the fair value of identifiable net assets[30]. - The company has invested in the US-based Ayla Networks to leverage advanced IoT cloud platform technology, enhancing its service capabilities[33]. - The company acquired 100% equity of Simcom for ¥414.40 million, with a remaining payment of ¥20.14 million yet to be settled[60]. - The company made substantial investments totaling ¥779.85 million during the reporting period, a dramatic increase of 1,487.62% compared to the previous year[58]. Research and Development - Research and development expenses rose by 36.02% to ¥44,867,204.76, driven by the inclusion of Xinxun Technology and Longshang Technology and the expansion of IoT business initiatives[47]. - The company applied for 12 patents during the reporting period, including 4 invention patents, and has a total of 590 valid patents, with 133 being invention patents[33]. - The company’s investment in R&D for intelligent upgrades of communication devices continues to enhance its overall competitiveness in the market[35][43]. Strategic Initiatives - The company has transitioned to a "cloud + edge" strategy in the Internet of Things (IoT) sector, with a revenue structure comprising IoT, integrated communication services, and communication equipment[25]. - The company aims to enhance its competitive edge by expanding its partner ecosystem and increasing collaboration with industry partners[29]. - The company has established strategic partnerships with major telecom operators in China, including China Mobile, China Telecom, and China Unicom, to expand its cloud platform services[40]. - The company is focused on transitioning from IoT to AI, integrating AI capabilities into its IoT products to enhance functionality and market appeal[41]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 14,172[108]. - The largest shareholder, Zhuhai Rundatai Investment Partnership, held 77,025,000 shares, accounting for 24.69% of total shares[109]. - The company did not experience any changes in its controlling shareholder or actual controller during the reporting period[112]. Corporate Governance - All directors attended the board meeting to review this report, ensuring the accuracy and completeness of the financial statements[5]. - The company did not distribute cash dividends or issue bonus shares for the half-year period[77]. - The semi-annual financial report was not audited[122]. Legal and Compliance - The company is involved in a lawsuit with Chengdu Kate, claiming a repayment of RMB 34 million, with the case being settled in November 2017[81]. - The company has not faced any penalties or corrective actions during the reporting period[84]. - The company has implemented measures to mitigate accounts receivable collection risks, particularly with major clients like telecom operators[73].

Financial Performance - The company's revenue for Q1 2018 was ¥597,608,156.57, representing a 45.20% increase compared to ¥411,576,729.61 in the same period last year[8] - The net profit attributable to shareholders was a loss of ¥1,908,030.13, an improvement of 73.54% from a loss of ¥7,210,854.35 in the previous year[8] - The net cash flow from operating activities was negative at ¥392,948,083.39, worsening by 213.21% compared to a negative cash flow of ¥125,456,491.26 in the same period last year[8] - The weighted average return on net assets was -0.06%, improving by 0.30% from -0.36% in the previous year[8] - Net profit attributable to shareholders for the first half of 2018 is expected to range from 48 million to 62 million RMB, representing a growth of 67.19% to 115.96% compared to the same period in 2017[19] Assets and Shareholder Information - Total assets at the end of the reporting period were ¥5,439,971,080.35, an increase of 9.47% from ¥4,969,529,267.25 at the end of the previous year[8] - The total number of ordinary shareholders at the end of the reporting period was 14,647[11] - The largest shareholder, Zhuhai Rundatai Investment Partnership, held 24.69% of the shares, amounting to 77,025,000 shares[11] - The company did not conduct any repurchase transactions among the top 10 shareholders during the reporting period[13] Business Developments and Acquisitions - The company has not disclosed any new product or technology developments, market expansion, or acquisition strategies in this report[15] - The company's intangible assets significantly increased due to the consolidation of ChipXunTong in the current period[16] - Goodwill rose substantially as the acquisition price of ChipXunTong exceeded the identifiable net assets[16] - Operating revenue saw a substantial increase due to the consolidation of LongShang Technology and ChipXunTong[16] - The scope of consolidation expanded with ChipXunTong included from March 1, 2018, and LongShang Technology from November 1, 2017[20] Cash Flow and Financing Activities - The net cash flow from investment activities significantly decreased due to payments for the equity transfer of ChipXunTong[16] - The net cash flow from financing activities increased substantially due to increased borrowings for cash acquisitions and external investments[17] - Short-term borrowings increased significantly due to cash acquisitions and external investments[16] - Long-term payables increased significantly due to financing lease transactions with Wenke Leasing[16] Future Outlook - The company anticipates significant growth in its IoT business in the first half of 2018, leveraging its leading "cloud + end" technology[19]

Business Expansion and Strategy - The company expanded its business to include IoT module products, IoT solutions, and cloud platform technology services during the reporting period[15] - The company expanded its IoT business by acquiring Longshang Technology and Xinxun Communication, capturing approximately 30% of the global market share in IoT wireless communication modules[26] - The company established a joint venture with the U.S. company Aira in January 2018 to enhance its IoT cloud platform capabilities[26] - The company aims to build a "smart connection of all things" as part of its strategic goals in the IoT sector[33] - The company is committed to becoming a global leader in the IoT sector by enhancing its product offerings and expanding its market reach[76] - The company plans to expand its market by focusing on new products such as small base stations and applying IoT technology to traditional communication equipment[77] - The company is exploring potential acquisitions to enhance its market position, with a focus on companies in the IoT sector[153] Financial Performance - The company's operating revenue for 2017 was ¥2,989,786,058.05, representing a 10.45% increase compared to ¥2,706,793,456.27 in 2016[16] - The net profit attributable to shareholders for 2017 was ¥102,020,799.59, a significant increase of 51.22% from ¥67,465,795.37 in 2016[16] - The net profit attributable to shareholders after deducting non-recurring gains and losses reached ¥66,421,792.50, marking a dramatic increase of 1,691.20% compared to ¥3,708,226.61 in 2016[16] - Total revenue for the reporting period increased by 10.45% to CNY 2,989,786,058.05, compared to CNY 2,706,793,456.27 in the previous year[34] - Net profit attributable to shareholders grew by 51.22% during the reporting period[34] - Total assets increased by 27.40% year-on-year[34] Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements in the annual report, highlighting potential risks and countermeasures in future operations[4] - The company has faced risks related to acquisitions, including integration challenges and potential goodwill impairment due to multiple acquisitions during the reporting period[78] - The company recognizes the potential risk of goodwill impairment and has taken measures to control this risk through effective team incentives and enhanced oversight of acquired companies[78] - The company has a strict accounts receivable management system to mitigate risks associated with delayed payments from major clients, including telecom operators[78] Shareholder and Dividend Information - The profit distribution plan approved by the board is to distribute a cash dividend of 0.35 RMB per 10 shares to all shareholders, based on the total share capital as of April 2, 2018[4] - The company has implemented a cash dividend policy, distributing CNY 0.35 per 10 shares for the 2017 fiscal year, totaling CNY 10,920,000[86] - The company reported a net profit of CNY 102,020,799.59 for 2017, with cash dividends representing 10.70% of the net profit attributable to ordinary shareholders[85] Corporate Governance - All directors attended the board meeting to review the annual report, ensuring accountability for the report's accuracy[3] - The company has established a high-quality management team to address the increased management demands from its expanding organizational structure[78] - The company’s board of directors and supervisory board operate independently, ensuring no interference from the controlling shareholder[170] - The company has a transparent performance evaluation and incentive mechanism for its directors and senior management[166] - The company’s independent directors attended all board meetings and shareholder meetings, demonstrating active governance[174] Research and Development - The company acquired 54 patents during the reporting period, including 19 invention patents, and received authorization for 54 patents, including 17 invention patents[34] - R&D investment increased by 3.61% to ¥79,153,940.68, with R&D personnel rising by 26.85% to 978[56] - The company is investing 200 million RMB in R&D for new technologies in 2018, aiming to enhance product offerings and market competitiveness[153] Market and Customer Insights - Domestic revenue accounted for 95.68% of total revenue, while international revenue saw a significant increase of 106.93% year-on-year[40] - The company’s revenue in the communication industry reached ¥2,989,786,058.05, representing a year-on-year increase of 20.15%[43] - The sales volume increased to 114,109.07 units, a growth of 19.65% compared to the previous year[45] - The user base increased by 20% in 2017, reaching a total of 5 million active users[153] Legal and Compliance Matters - The company is involved in a lawsuit with Chengdu Kaitenuo Information Technology Co., Ltd. for a claim of approximately 60.94 million yuan, with a first-instance judgment already made[95] - The company has not faced any situations that could lead to suspension or termination of its listing during the reporting period[94] - The company has not experienced any bankruptcy reorganization matters during the reporting period[94] Internal Controls and Auditing - The company maintained effective internal controls related to financial reporting as of December 31, 2017, with no significant deficiencies reported[183] - The audit opinion issued was a standard unqualified opinion, confirming that the financial statements fairly reflect the company's financial position[188] - The auditor must provide a declaration of independence and communicate any relationships that may affect independence[200]

Financial Performance - Total assets increased by 6.22% to CNY 4,143,287,106.77 compared to the end of the previous year[8] - Net profit attributable to shareholders decreased by 7.89% to CNY 41,743,581.01 year-on-year[8] - Operating revenue rose by 11.28% to CNY 787,769,149.45 for the current period[8] - Net profit attributable to shareholders after deducting non-recurring gains and losses surged by 3,364.47% to CNY 31,507,903.36[8] - Basic earnings per share decreased by 13.33% to CNY 0.13, while diluted earnings per share also decreased by 13.33% to CNY 0.13[8] - The weighted average return on equity was 1.36%, down by 1.00% compared to the previous year[8] - The company reported a net cash flow from operating activities of -CNY 284,366,958.60, a decrease of 730.84% year-to-date[8] Shareholder Information - The total number of shareholders at the end of the reporting period was 15,102[12] - The largest shareholder, Zhuhai Rundatai Investment Partnership, held 24.69% of the shares, totaling 77,025,000 shares[12] - The company did not engage in any repurchase transactions during the reporting period[13] Future Expectations - The company expects a net profit attributable to shareholders for 2017 to range between 90 million and 110 million RMB, representing a year-on-year increase of 33.40% to 63.05%[21] Acquisitions and Investments - The company acquired 68.0918% of Longshang Technology, which is expected to significantly boost its performance starting from October 2017[21] - The company completed the acquisition of 100% equity in its subsidiary, Rihai Tongfu, enhancing its control over the business[16] - The company invested in Beijing Baicaibang Technology Co., Ltd., which is reflected in the increase of available-for-sale financial assets[16] Financial Management - The company reported a substantial increase in accounts receivable due to higher transaction volumes with customers[16] - The company’s short-term borrowings increased significantly as it expanded its IoT and small base station businesses, leading to higher cash flow needs[16] - The company’s financial expenses decreased significantly compared to the previous period due to the recovery of a large amount of cash from the sale of a subsidiary[16] - The company’s other payables increased significantly due to installment payments for equity acquisitions, including the purchase of shares in Rihai Tongfu and Longshang Technology[16] - The company’s cash received from investment recoveries increased significantly due to the maturity of bank wealth management products[16] Strategic Partnerships - The company signed a cooperation framework agreement with Huiyu to establish strategic partnerships in IoT, smart cities, cloud computing, and big data[18]