Business Overview - The company is a leading provider of digital map content, connected vehicle services, and big data applications in China, holding the top market share in navigation electronic maps, dynamic traffic information services, and NDS compilation [1][2] - The company has commercialized ADAS maps and is the first in China to do so, with high-precision maps tested by international car manufacturers, ranking first in overall performance among competitors [2][3] Strategic Acquisitions - The company initiated a 10% acquisition of HERE to co-develop high-precision maps and applications for autonomous driving, aiming to establish a joint venture in China for global location services [2][3] - The acquisition is expected to reduce development costs and position the company as the only provider of global location services in China [3] Revenue Generation - Main revenue streams include: - Navigation electronic maps (traditional and high-precision) through a licensing model, providing stable cash flow - Dynamic traffic information and connected vehicle services through service fees, with annual revenue recognition [3][4] - NDS compilation services charged on a fee basis [3] Client Base and Market Position - The company serves various clients beyond car manufacturers, including Tencent, Sogou, Didi, JD.com, and Meituan [4] - The company ensures the stability of car manufacturer clients through superior product performance and robust customer service, evidenced by partnerships with major brands like Audi, Mercedes-Benz, and BMW [3][4] Product Development and Innovation - The company is advancing high-precision maps and has signed a cooperation agreement with Great Wall Motors for autonomous driving projects, providing core navigation services and data [5][6] - The company is developing innovative products like the WeLink vehicle interconnectivity solution, enhancing the functionality of in-car navigation systems [4] Future Collaborations - The company plans to collaborate with Intel and HERE to establish a strategic alliance for global map data and location services, aiming to dominate the fields of autonomous driving and connected vehicles [6]

Financial Performance - The company's operating revenue for 2021 was CNY 3,060,031,659.88, representing a 42.48% increase compared to CNY 2,147,655,643.19 in 2020[26]. - The net profit attributable to shareholders in 2021 was CNY 122,086,376.97, a significant turnaround from a loss of CNY 309,497,739.33 in 2020, marking a 139.45% improvement[26]. - The total revenue for the company reached CNY 3.06 billion in 2021, representing a year-on-year growth of 42.48%[72]. - The company achieved a net profit attributable to shareholders of CNY 163.86 million in Q4 2021, compared to a loss in the previous quarters[76]. - The company reported a total revenue of 19,265.388 million in 2021, reflecting a significant increase compared to the previous year[167]. - The company experienced a net loss of 52.735 million in 2021, indicating a challenging financial year[167]. Investment and R&D - The company is committed to maintaining high investment levels in high-precision mapping, positioning, and autonomous driving solutions to navigate increasing market competition[17]. - The company has made substantial investments in R&D, which are now yielding results, contributing to its revenue and profit growth[37]. - Research and development expenses rose by 12.89% year-on-year to ¥1,334,059,349.17, reflecting the company's commitment to innovation[90]. - The company is investing 200 million RMB in R&D for new technologies aimed at enhancing user experience and product functionality[178]. - The company has increased its R&D investment to meet the high safety and experience demands of the market, launching integrated solutions for various driving and parking scenarios[55]. Market and Product Development - The company has established a new business system focusing on "Intelligent Cloud, Intelligent Driving, Intelligent Cockpit, and Intelligent Core" to support its strategic transformation into an intelligent mobility technology company[37]. - The penetration rate of L2-level and below autonomous driving functions in new passenger cars reached 30.78%, with L2-level new car insurance volume increasing by 77.65% year-on-year[42]. - The company is positioned to provide comprehensive solutions including data compliance, high-precision maps, and related intelligent driving services, gaining favor from regulatory bodies and industry clients[40]. - The overall market for intelligent driving and automotive electronics is expanding, with software becoming a core differentiator in the competitive landscape[43]. - The company is focusing on expanding its digital logistics network to enhance operational capabilities and improve efficiency in the logistics industry[92]. Supply Chain and Operational Challenges - The company faces significant risks due to the ongoing global pandemic affecting the automotive supply chain and economic recovery, which may impact operational stability[15]. - The global semiconductor supply shortage continues to pressure the company's chip product supply and procurement costs, prompting a focus on optimizing supply chain management[16]. - The company acknowledges risks from the global chip supply shortage, which has led to increased costs and pressure on chip product supply and procurement[143]. - The company will enhance its supply chain management and collaboration with upstream and downstream enterprises to mitigate the impact of chip supply constraints[143]. Talent and Intellectual Property - The company aims to enhance its talent acquisition and retention mechanisms to meet the demands of rapid development in high-precision mapping and AI fields[18]. - The company is committed to attracting and retaining talent in key technology areas, facing challenges in building a competitive talent development platform[146]. - The company is increasing efforts to protect intellectual property rights amid rising copyright infringement cases in the electronic map sector[19]. - The company will strengthen its intellectual property protection measures to safeguard its electronic map business and software products from infringement risks[147]. Corporate Governance and Compliance - The company maintained compliance with the Company Law and relevant regulations, ensuring no discrepancies in governance practices as of December 31, 2021[152]. - The company has established independent financial and auditing departments, ensuring no shared bank accounts with shareholders owning more than 5%[161]. - The company has a complete and independent business structure, demonstrating the ability to operate autonomously without reliance on major shareholders[162]. - The board of directors has actively participated in governance and operational decision-making, ensuring compliance with regulations[193]. Future Outlook and Strategic Plans - The company plans to enhance its mixed cloud and autonomous driving cloud platform capabilities, accelerating the development and commercialization of scenario-based, platform-type products[139]. - The company will continue to invest heavily in high-precision maps, high-precision positioning, and autonomous driving solutions, while facing risks related to the speed of new product development and market validation[145]. - The company plans to hold its annual shareholders' meeting on May 24, 2022, to discuss the appointment of new board members[167]. - The company is exploring potential acquisitions to enhance its service offerings, with a budget of 500 million RMB allocated for this purpose[178].

[Important Notice](index=2&type=section&id=Section%201.%20Important%20Notice) [Board of Directors' Statement](index=2&type=section&id=Board%20of%20Directors'%20Statement) The company's management guarantees the truthfulness, accuracy, and completeness of this quarterly report and its financial statements - Company management guarantees the truthfulness, accuracy, and completeness of this quarterly report and financial statements[3](index=3&type=chunk) [Company Overview](index=3&type=section&id=Section%202.%20Company%20Overview) [Key Accounting Data and Financial Indicators](index=3&type=section&id=I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In Q1 2021, revenue grew and net loss narrowed, driven by chip and big data services, while operating cash flow declined due to delayed inflows and increased prepayments, and assets significantly increased from a stock offering Key Financial Indicators for Q1 2021 | Indicator | Current Period | Prior Year Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 519,179,587.92 | 394,590,435.47 | 31.57% | | Net Profit Attributable to Shareholders (RMB) | -45,189,086.43 | -72,593,034.98 | 37.75% | | Net Cash Flow from Operating Activities (RMB) | -178,433,427.07 | 6,627,918.00 | -2792.15% | | Basic Earnings Per Share (RMB/share) | -0.0220 | -0.0375 | 41.33% | | **Asset Indicators** | **End of Current Period** | **End of Prior Year** | **Year-on-Year Change** | | Total Assets (RMB) | 12,976,913,519.23 | 9,205,912,179.86 | 40.96% | | Net Assets Attributable to Shareholders (RMB) | 11,676,385,412.80 | 7,759,474,927.30 | 50.48% | - During the reporting period, the company completed a non-public offering of **320 million new shares**, leading to a significant increase in total assets and net assets attributable to the parent company[4](index=4&type=chunk) - Revenue and net profit growth were primarily driven by increased **chip revenue** and **location big data service revenue**, alongside a low base effect from the prior year's pandemic[4](index=4&type=chunk) - Operating cash flow significantly decreased due to delayed cash inflows corresponding to revenue growth and increased prepayments for purchases[4](index=4&type=chunk) [Shareholder Information](index=5&type=section&id=II.%20Total%20Number%20of%20Shareholders%20and%20Top%20Ten%20Shareholders'%20Holdings%20at%20Period%20End) As of the reporting period end, the company had 205,508 common shareholders, with China Siwei, Tencent, and HKEX Clearing as top holders, and Tencent reducing its stake Top Ten Shareholders' Holdings | Shareholder Name | Shareholder Nature | Holding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | China Siwei Surveying and Mapping Technology Co., Ltd. | State-owned Legal Person | 8.56% | 195,278,651 | | Shenzhen Tencent Industry Investment Fund Co., Ltd. | Domestic Non-state-owned Legal Person | 5.00% | 114,056,490 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 4.19% | 95,543,484 | | Beijing E-Town International Industrial Investment Management Co., Ltd... | Other | 3.51% | 80,000,000 | | E Fund Management Co., Ltd. - Central Huijin... | Other | 2.86% | 65,180,925 | - As of the reporting period end, the company had a total of **205,508 common shareholders**[9](index=9&type=chunk) - Shenzhen Tencent Industry Investment Fund Co., Ltd. reduced its stake through block trades, with its holding percentage decreasing from **6.10% to 4.999996%** (5% in the table due to rounding)[11](index=11&type=chunk)[13](index=13&type=chunk) [Significant Matters](index=7&type=section&id=Section%203.%20Significant%20Matters) [Analysis of Changes in Key Financial Data](index=7&type=section&id=I.%20Analysis%20of%20Changes%20and%20Reasons%20for%20Key%20Financial%20Data%20and%20Indicators%20During%20the%20Reporting%20Period) Significant financial data changes include increased monetary funds and capital reserves from a stock offering, higher revenue from chip and big data, reduced financial expenses from interest income, and substantial operating cash outflow offset by financing inflow Changes in Key Financial Items and Reasons | Item | Change Percentage | Main Reason | | :--- | :--- | :--- | | **Balance Sheet** | | | | Monetary Funds | 254.48% | Due to proceeds from non-public stock offering | | Capital Reserves | 87.67% | Due to proceeds from non-public stock offering | | Development Expenditures | -76.38% | Some R&D projects completed and transferred to intangible assets | | **Income Statement** | | | | Operating Revenue | 31.57% | Increase in chip revenue and location big data revenue | | Financial Expenses | -415.93% | Increase in interest income from fixed deposits | | **Cash Flow Statement** | | | | Net Cash Flow from Operating Activities | -2792.15% | Delayed cash inflows from revenue and increased prepayments for purchases | | Net Cash Flow from Financing Activities | 443961.68% | Due to proceeds from non-public stock offering | [Progress of Non-Public Offering of A-Shares](index=8&type=section&id=II.%20Analysis%20of%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Matters) The company successfully completed a non-public offering of **320 million A-shares** in February 2021, raising up to **RMB 4 billion**, with new shares listed on the Shenzhen Stock Exchange on February 25 - The company completed a non-public offering, with **320 million new shares** listed on the Shenzhen Stock Exchange on February 25, 2021[18](index=18&type=chunk)[19](index=19&type=chunk) [Progress of Raised Funds Investment Projects](index=9&type=section&id=V.%20Progress%20of%20Raised%20Funds%20Investment%20Projects) Net proceeds of **RMB 3.975 billion** from the non-public offering are allocated to intelligent vehicle chips, autonomous driving maps, and cloud platform projects, all progressing smoothly with key development phases underway - Net proceeds of **RMB 3.975 billion** have been received and are allocated to intelligent vehicle chips, autonomous driving maps, cloud platform, and other projects[22](index=22&type=chunk) - All raised fund investment projects are progressing smoothly: the intelligent connected vehicle chip R&D project (AC8025) has completed preliminary design validation; the autonomous driving map project is undergoing architecture setup and data collection; the main framework of the autonomous driving cloud platform project has been largely completed[22](index=22&type=chunk) [Other Significant Matters](index=9&type=section&id=Other%20Significant%20Matters) The company had no overdue commitments, securities or derivative investments, major contracts, or illegal guarantees, but used **RMB 30 million** for bank wealth management products, with no investor relations activities - The company used **RMB 30 million** of idle self-owned funds to purchase bank wealth management products[25](index=25&type=chunk) - During the reporting period, there were no significant contracts, illegal guarantees, securities investments, or investor research activities[20](index=20&type=chunk)[21](index=21&type=chunk)[24](index=24&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) [Financial Statements](index=11&type=section&id=Section%204.%20Financial%20Statements) [Financial Statements](index=11&type=section&id=I.%20Financial%20Statements) This section presents the unaudited Q1 2021 consolidated and parent company financial statements, showing increased total assets from fundraising, but a net loss and negative operating cash flow [Consolidated Balance Sheet](index=11&type=section&id=1.%20Consolidated%20Balance%20Sheet) Consolidated Balance Sheet Summary (As of March 31, 2021) | Item | Amount (RMB) | | :--- | :--- | | **Assets** | | | Total Current Assets | 6,557,619,997.66 | | Total Non-current Assets | 6,419,293,521.57 | | **Total Assets** | **12,976,913,519.23** | | **Liabilities and Owners' Equity** | | | Total Current Liabilities | 1,144,987,283.97 | | Total Non-current Liabilities | 26,754,998.29 | | **Total Liabilities** | **1,171,742,282.26** | | Total Equity Attributable to Parent Company Shareholders | 11,676,385,412.80 | | Non-controlling Interests | 128,785,824.17 | | **Total Equity** | **11,805,171,236.97** | | **Total Liabilities and Equity** | **12,976,913,519.23** | [Consolidated Income Statement](index=16&type=section&id=3.%20Consolidated%20Income%20Statement) Consolidated Income Statement Summary (Q1 2021) | Item | Amount (RMB) | | :--- | :--- | | I. Total Operating Revenue | 519,179,587.92 | | II. Total Operating Costs | 557,017,537.14 | | Of which: Operating Costs | 203,062,315.02 | | Research and Development Expenses | 258,482,457.62 | | III. Operating Profit (Loss indicated by "-") | -49,446,056.71 | | IV. Total Profit (Total Loss indicated by "-") | -49,450,357.59 | | V. Net Profit (Net Loss indicated by "-") | -52,646,119.15 | | Net Profit Attributable to Parent Company Shareholders | -45,189,086.43 | | Non-controlling Interests | -7,457,032.72 | | VIII. Earnings Per Share | | | (I) Basic Earnings Per Share | -0.0220 | | (II) Diluted Earnings Per Share | -0.0220 | [Consolidated Cash Flow Statement](index=21&type=section&id=5.%20Consolidated%20Cash%20Flow%20Statement) Consolidated Cash Flow Statement Summary (Q1 2021) | Item | Amount (RMB) | | :--- | :--- | | I. Net Cash Flow from Operating Activities | -178,433,427.07 | | II. Net Cash Flow from Investing Activities | -137,664,553.21 | | III. Net Cash Flow from Financing Activities | 3,999,954,201.62 | | IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents | -8,951,854.06 | | V. Net Increase in Cash and Cash Equivalents | 3,674,904,367.28 | | Add: Cash and Cash Equivalents at Beginning of Period | 1,427,578,975.33 | | VI. Cash and Cash Equivalents at End of Period | 5,102,483,342.61 | [Explanation of Financial Statement Adjustments](index=24&type=section&id=II.%20Explanation%20of%20Financial%20Statement%20Adjustments) The company adopted new leasing standards from January 1, 2021, but due to short-term leases and simplified treatment, no adjustments to opening balance sheet items were required - The company adopted new leasing standards from January 1, 2021, but due to short-term leasing, chose not to recognize right-of-use assets and lease liabilities, thus no adjustment to opening balances was required[49](index=49&type=chunk) [Audit Report](index=25&type=section&id=III.%20Audit%20Report) The company's Q1 2021 report is unaudited - This quarterly report is unaudited[50](index=50&type=chunk)