[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)

Financial Performance - The company's operating revenue for 2020 was ¥2,147,655,643.19, a decrease of 7.02% compared to ¥2,309,742,643.97 in 2019[16]. - The net profit attributable to shareholders for 2020 was a loss of ¥309,497,739.33, representing a decline of 191.25% from a profit of ¥339,184,565.86 in 2019[16]. - The total revenue for the company in 2020 was CNY 2.15 billion, a decrease of 7.02% year-on-year[52]. - The total operating costs for 2020 amounted to ¥511,590,873.75, representing a 28.24% increase compared to ¥398,930,213.54 in 2019[61]. - The company reported a significant increase in financial expenses by 453.76% to ¥15,389,799.76, primarily due to increased exchange losses and reduced interest income[69]. - The company reported a significant decrease in investment amounting to ¥77,106,197.92, down 77.60% from ¥344,197,932.85 in the previous year, primarily due to last year's investment in establishing the Hefei second headquarters[81]. - The company reported a net cash flow from operating activities of ¥136,807,168.43 in 2020, a significant increase of 295.75% compared to ¥34,569,445.50 in 2019[73]. - The total cash inflow from operating activities was ¥2,471,438,328.00, reflecting a year-on-year growth of 4.51% from ¥2,364,895,946.07 in 2019[73]. - The company reported a significant increase in other receivables to ¥63,631,987.16, representing 0.69% of total assets, up from 0.38%, mainly due to increased pandemic employment subsidy receivables from its Dutch subsidiary[77]. Investment and R&D - The company plans to maintain its investment in high-precision maps, high-precision positioning, and autonomous driving solutions, despite facing risks related to market acceptance and timely capital cooperation[6]. - The company has increased its R&D investment in sensor chips and controller chips, with the second-generation MCU chip achieving mass production and recognition from both domestic and international Tier-1 manufacturers[37]. - The company invested ¥115,540,337.25 in the autonomous driving map update project, which is currently under development and aims to provide real-time high-precision map data services[71]. - The company is increasing its investment in R&D for new products, including next-generation smart cockpit IVI chips and safety-grade MCU chips, to expand its market presence and improve market share in the TPMS segment[119]. - The company is committed to enhancing its big data service ecosystem to support high-precision map applications and real-time data services, which are critical for the future of smart cities and connected vehicles[120]. Market and Business Strategy - The company aims to enhance its research and commercialization capabilities to adapt to market changes and expand its global strategic layout[5]. - The company is focused on building sustainable strategic partnerships with leading enterprises to enhance its production capabilities and resource acquisition[6]. - The company is actively exploring new business cooperation ecosystems and innovative opportunities in response to the ongoing transformation of the global automotive industry[113]. - The company is committed to international expansion, establishing a global presence to track advancements in autonomous driving technology[47]. - The company is focusing on strategic transformation to enhance its core advantages and explore high-value growth potential[52]. Talent and Human Resources - The company is facing challenges in attracting and retaining talent in key technology areas such as high-precision mapping and artificial intelligence, which are critical for its future growth[7]. - The company has established a mechanism for talent cultivation and cooperation with renowned institutions to address talent shortages[123]. - The company has developed a comprehensive management mechanism for talent acquisition and training, ensuring a skilled workforce to support its growth[49]. - The company has initiated various talent retention strategies, including equity incentives and leadership development, to build a competitive workforce[50]. Supply Chain and Operations - The company reported a significant impact from the COVID-19 pandemic on the global automotive industry, leading to a severe shortage of automotive chips and increased procurement costs[9]. - The company is committed to optimizing its supply chain management and enhancing collaboration with upstream and downstream partners in the industry[9]. - The company plans to optimize supply chain management and enhance collaboration with upstream and downstream partners to mitigate chip supply issues[126]. - The company has established a project evaluation mechanism to improve the predictability of new business developments and mitigate financial pressures[6]. Intellectual Property and Legal Matters - The company emphasizes the importance of protecting intellectual property rights amid increasing copyright infringement cases in the electronic map business[8]. - The company will enhance its intellectual property protection measures and take legal actions to safeguard its rights against infringement, particularly in the electronic map business[125]. Environmental and Social Responsibility - The company is committed to environmental protection and sustainable development, aligning with national strategies like "carbon neutrality"[50]. - The company actively participates in social welfare projects, including the construction of three Hope Primary Schools[50]. - The company has implemented advanced technologies in its operations to promote energy conservation and environmental protection[157]. Challenges and Risks - The company faces significant challenges due to the reshaping of the global automotive industry and increasing competition, which may impact the commercialization and mass production of new products[117]. - The company acknowledges the risks associated with market uncertainties and the need to improve its independent research and commercialization capabilities to navigate global market challenges[121]. - The automotive electronic chip market is primarily dominated by foreign manufacturers, with significant challenges for domestic companies in achieving full localization due to the complexity of product development and testing[36]. Corporate Governance - The company has a diverse board with members holding significant experience in technology and finance, including executives from Tencent and other major firms[187][188]. - The company has established a focus on new product development and technology research, although specific figures were not disclosed in the report[198]. - The company has not disclosed any significant mergers or acquisitions during the reporting period[198]. - The company’s board of directors has approved a dividend payout of 0.5 RMB per share, reflecting the company's strong financial performance[194].

[Important Notes, Table of Contents, and Definitions](index=2&type=section&id=Important%20Notes,%20Table%20of%20Contents,%20and%20Definitions) This section provides essential disclaimers, defines key terms used throughout the report, and highlights major risks faced by the company [Important Notes](index=2&type=section&id=Important%20Notes) The company's management guarantees the accuracy and completeness of the annual report and assumes legal responsibility for its content - Company management guarantees the truthfulness, accuracy, and completeness of the annual report and assumes corresponding legal responsibility[2](index=2&type=chunk) - The company's 2019 profit distribution plan proposes a cash dividend of **0.18 yuan per 10 shares** (including tax), with no bonus shares or capital reserve conversion to share capital[3](index=3&type=chunk) [Definitions](index=4&type=section&id=Definitions) This section defines key terms used in the report, such as company names and core technical concepts, to facilitate understanding - The report provides clear definitions for the company, its main subsidiary (AutoChips), and core technical terms such as Connected Vehicles, ADAS, and NDS[7](index=7&type=chunk) [Risk Factors](index=5&type=section&id=Risk%20Factors) The company identifies key risks including market uncertainties, new business monetization challenges, talent competition, and intellectual property infringement - The company faces uncertainty risks from macroeconomic downturns, automotive industry pressures, and intense market competition[8](index=8&type=chunk) - Continuous investment in new businesses like high-precision maps, autonomous driving, and chips carries the risk of slower-than-expected monetization[9](index=9&type=chunk) - The company faces fierce talent competition and retention challenges in cutting-edge fields such as autonomous driving and artificial intelligence[10](index=10&type=chunk) - The company's electronic map and software products are exposed to copyright infringement risks, which could threaten economic revenue[11](index=11&type=chunk) [Company Profile and Key Financial Indicators](index=6&type=section&id=Company%20Profile%20and%20Key%20Financial%20Indicators) This section presents the company's fundamental information, including stock details, and summarizes its key financial performance and position for the reporting period [Company Basic Information](index=6&type=section&id=Company%20Basic%20Information) This section provides the company's registration details, stock information, contact methods, and confirms the absence of a controlling shareholder since 2014 | Item | Content | | :--- | :--- | | **Stock Abbreviation** | NavInfo | | **Stock Code** | 002405 | | **Legal Representative** | Wu Jinfeng | | **Controlling Shareholder Status** | No controlling shareholder or actual controller since 2014 | [Key Accounting Data and Financial Indicators](index=7&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) In 2019, revenue grew by 8.25% to 2.31 billion yuan, but net profit attributable to shareholders decreased by 29.20% to 339 million yuan | Key Financial Indicator | 2019 (yuan) | 2018 (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 2,309,742,643.97 | 2,133,659,113.98 | 8.25% | | **Net Profit Attributable to Shareholders** | 339,184,565.86 | 479,070,711.85 | -29.20% | | **Net Profit Attributable to Shareholders (Excluding Non-Recurring Gains/Losses)** | -158,012,256.09 | -1,057,466,402.08 | 85.06% | | **Net Cash Flow from Operating Activities** | 34,569,445.50 | 370,749,670.59 | -90.68% | | **Basic Earnings Per Share (yuan/share)** | 0.1759 | 0.2500 | -29.64% | | **Weighted Average Return on Net Assets** | 4.52% | 6.96% | -2.44% | | **Total Assets (yuan)** | 9,055,622,455.51 | 9,215,105,313.63 | -1.73% | | **Net Assets Attributable to Shareholders (yuan)** | 7,799,544,483.82 | 7,201,231,752.10 | 8.31% | [Quarterly Key Financial Indicators](index=8&type=section&id=Quarterly%20Key%20Financial%20Indicators) Quarterly financial data shows a third-quarter loss, followed by a strong fourth-quarter rebound with 315 million yuan in net profit | Indicator (yuan) | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 521,929,835.43 | 561,782,133.25 | 451,332,158.85 | 774,698,516.44 | | **Net Profit Attributable to Shareholders** | 42,026,469.19 | 43,573,845.88 | -61,415,531.22 | 314,999,782.01 | [Non-Recurring Gains and Losses Items and Amounts](index=9&type=section&id=Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Non-recurring gains and losses totaled 497 million yuan in 2019, significantly boosted by a 441 million yuan investment gain from subsidiary disposal - Non-current asset disposal gains and losses amounted to **441 million yuan**, primarily from investment income generated by the disposal of subsidiary Beijing Sixfen Technology, serving as the core source of non-recurring gains and losses for the period[25](index=25&type=chunk) - The company obtained **30.11 million yuan** in income from entrusted wealth management, representing another significant non-recurring gain[25](index=25&type=chunk) | Item | 2019 Amount (yuan) | Explanation | | :--- | :--- | :--- | | **Non-current asset disposal gains and losses** | 441,411,886.14 | Primarily investment income from the disposal of subsidiary Beijing Sixfen Technology | | **Government grants included in current profit/loss** | 1,214,536.38 | Company received government project subsidies | | **Gains/losses from entrusted investment or asset management** | 30,111,425.47 | Bank wealth management income | | **Total** | 497,196,821.95 | - | [Business Overview](index=11&type=section&id=Business%20Overview) This section outlines the company's core business segments, industry landscape, strategic progress, and competitive advantages within the intelligent vehicle ecosystem [Principal Businesses](index=11&type=section&id=Principal%20Businesses) The company's core businesses include navigation, ADAS/autonomous driving, chips, location big data, and connected vehicle services, all aligned with its "Intelligent Vehicle Brain" strategy - The company's main business segments include navigation, advanced driver-assistance systems (ADAS) and autonomous driving, chips, location big data services, and connected vehicle services[29](index=29&type=chunk) - Navigation Business: Provides basic maps, high-precision maps, navigation software, and compilation services, with data accuracy reaching sub-meter level and update capability reaching hourly level[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - Advanced Driver-Assistance Systems (ADAS) and Autonomous Driving Business: Offers ADAS maps, HD maps, high-precision positioning, and integrated solutions, with L3-level solutions already obtaining road test licenses[31](index=31&type=chunk) - Chip Business: Designs and sells IVI in-vehicle infotainment system chips, MCU body control chips, TPMS tire pressure monitoring chips, and other automotive electronic chips; self-developed MCU and TPMS chips have achieved mass production[32](index=32&type=chunk) - Location Big Data Services: Leverages the MineData platform to provide big data solutions for government and industry users, applied in smart cities, intelligent transportation, and other fields[32](index=32&type=chunk)[33](index=33&type=chunk) - Connected Vehicle Business: Includes dynamic traffic information, passenger vehicle connected services (undertaken by associate company NavInfo Connected), and commercial vehicle connected services[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) [Industry Development Overview and Company Position](index=14&type=section&id=Industry%20Development%20Overview%20and%20Company%20Position) The company maintains a leading position in navigation maps and has made significant strides in autonomous driving and automotive chips amidst rapid industry transformation - Navigation Electronic Map Industry: The company, through its forward-looking strategy and high-quality products, has consistently led China's pre-installed in-car navigation market for years, serving as a key partner for mainstream automakers and tech companies like Tencent and Didi[36](index=36&type=chunk) - Autonomous Driving Industry: L2/L2.5 autonomous driving products are mass-produced, while the commercialization of L3 and higher levels is slow; the company secured China's first L3-level mass production order in high-precision maps and obtained a Beijing road test T3 license for its L3-level low-cost solution, demonstrating industry leadership[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) - Automotive Electronic Chip Industry: The global market is dominated by international giants, but demand for domestic substitution is growing; the company entered this field through the acquisition of AutoChips, and its self-developed MCU and TPMS chips have broken international monopolies and achieved mass production[40](index=40&type=chunk)[41](index=41&type=chunk) - Location Big Data Service Industry: Demand growth is driven by smart city initiatives and industrial internet transformation; the company's MineData platform has established a client base in intelligent transportation, public security, and insurance sectors[42](index=42&type=chunk)[43](index=43&type=chunk) - Connected Vehicle Industry: The industry is entering a critical phase of large-scale implementation; the company maintains a leading position in dynamic traffic information, with its commercial vehicle connected solutions holding over **70%** market share, and its passenger vehicle connected services are managed through associate company NavInfo Connected[44](index=44&type=chunk)[45](index=45&type=chunk) [Progress of Prior Development Strategies and Business Plans](index=18&type=section&id=Progress%20of%20Prior%20Development%20Strategies%20and%20Business%20Plans) In 2019, the company made substantial progress across all business segments, including securing L3-level autonomous driving map orders and achieving mass production for self-developed chips - Navigation Business: Launched the third-generation production system, Fastmap3.0, achieving hourly update capabilities, and AR navigation solutions achieved pre-installed mass production[47](index=47&type=chunk) - Advanced Driver-Assistance Systems and Autonomous Driving: Signed an L3-level autonomous driving map service agreement with BMW and established a strategic partnership with Huawei in high-precision maps; the L3-level low-cost autonomous driving solution obtained a Beijing road test T3 license[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - Chip Business: Self-developed body control MCU chips and TPMS tire pressure monitoring chips achieved mass production and secured orders[50](index=50&type=chunk)[51](index=51&type=chunk) - Location Big Data Services: MineData 3.0 platform was released, and significant projects were signed with Xi'an and Jinan traffic police, the Ministry of Public Security, and China Reinsurance Group[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) - Connected Vehicle Business: Signed a CNS service agreement with BMW to provide services for mass-produced vehicles from 2021-2029; commercial vehicle connected solutions serve 8 mainstream automakers; established Mandian Mobility to accelerate commercialization of new energy charging services[54](index=54&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk) - Investment and Cooperation: Established Hefei as its second headquarters; subsidiary Sixfen Technology completed capital increase and share expansion, introducing strategic investors like China Telecom; established Mandian Mobility; invested in Guangdong Weichen to strategically position in intelligent connected vehicle security[57](index=57&type=chunk)[58](index=58&type=chunk) [Core Competitiveness Analysis](index=25&type=section&id=Core%20Competitiveness%20Analysis) The company's core strengths lie in its cross-industry integration, robust ecosystem with key partners, deep talent pool, and innovation-driven corporate culture - The company possesses cross-industry integration capabilities to serve top automakers and internet giants (e.g., Didi, Tencent, Huawei), holding dual qualifications for navigation electronic map production and internet map services[62](index=62&type=chunk) - A strong industrial ecosystem has been built through deep cooperation with leading domestic and international enterprises and research institutions (e.g., HERE, Tsinghua University), and by introducing strategic investors (e.g., China Telecom, Bosch Group)[64](index=64&type=chunk)[65](index=65&type=chunk)[66](index=66&type=chunk) - The company boasts an experienced professional technical team in navigation electronic maps, computer vision, deep learning, chips, and big data, having accumulated **448 domestic and international patent authorizations** and **1,233 copyrights**[67](index=67&type=chunk) - Focusing on Innovation and Integration, the company has formed a corporate culture centered on "passion, responsibility, innovation, and integrity," actively fulfilling its social responsibilities[68](index=68&type=chunk)[69](index=69&type=chunk) [Management Discussion and Analysis](index=30&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a detailed analysis of the company's operational performance, including revenue, costs, expenses, R&D, cash flow, and asset/liability status [Overview](index=30&type=section&id=Overview) In 2019, total revenue increased by 8.25% to 2.31 billion yuan, but net profit attributable to shareholders declined by 29.20% to 339 million yuan due to chip business downturn and increased investments | Business Segment | Operating Revenue (billion yuan) | YoY Growth Rate | | :--- | :--- | :--- | | **Navigation Business** | 0.831 | 7.18% | | **Advanced Driver-Assistance Systems and Autonomous Driving** | 0.104 | 96.48% | | **Chip Business** | 0.408 | -29.57% | | **Location Big Data Services** | 0.240 | 36.64% | | **Connected Vehicle Business** | 0.697 | 28.53% | | **Total** | **2.310** | **8.25%** | - Net profit attributable to shareholders was **339 million yuan**, a year-on-year decrease of **29.20%**, primarily due to reduced profit from the chip business and increased losses from associate company Mapbar Technology Limited[70](index=70&type=chunk) [Main Business Analysis](index=30&type=section&id=Main%20Business%20Analysis) This section analyzes the revenue, cost, expense, R&D, and cash flow performance of each main business segment, highlighting growth drivers and profit pressures [Revenue and Cost](index=30&type=section&id=Revenue%20and%20Cost) Navigation business remained the largest revenue source with high gross margin, while chip business revenue and gross margin declined significantly 2019 Segment Operating Revenue Composition | Segment | Operating Revenue (yuan) | % of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Navigation | 830,789,863.00 | 35.97% | 7.18% | | Advanced Driver-Assistance Systems and Autonomous Driving | 103,991,976.00 | 4.50% | 96.48% | | Chip | 407,780,193.88 | 17.65% | -29.57% | | Location Big Data Services | 240,116,835.55 | 10.40% | 36.64% | | Connected Vehicle | 696,889,451.09 | 30.17% | 28.53% | 2019 Main Business Gross Margin | Segment | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | | Navigation | 830,789,863.00 | 47,090,156.00 | 94.33% | +3.03% | | Chip | 407,780,193.88 | 198,405,305.28 | 51.35% | -3.01% | | Location Big Data Services | 240,116,835.55 | 61,743,599.64 | 74.29% | -3.73% | | Connected Vehicle | 696,889,451.09 | 398,930,213.54 | 42.76% | -10.78% | - The scope of consolidation changed during the period, with the addition of Hefei NavInfo and Beijing Mandian Mobility, and the reduction of NavInfo Investment (Hong Kong) and Beijing Sixfen Technology[81](index=81&type=chunk) [Expenses](index=34&type=section&id=Expenses) In 2019, selling, administrative, and R&D expenses all decreased, while financial expenses turned positive due to reduced interest income | Expense Item | 2019 (yuan) | 2018 (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Selling Expenses | 119,730,779.31 | 131,558,133.01 | -8.99% | | Administrative Expenses | 398,747,274.19 | 478,157,042.00 | -16.61% | | Financial Expenses | -4,350,308.01 | -30,548,999.89 | 85.76% | | R&D Expenses | 1,189,589,631.52 | 1,276,435,895.41 | -6.80% | [Research and Development Investment](index=35&type=section&id=Research%20and%20Development%20Investment) Total R&D investment increased by 12.26% to 1.31 billion yuan, representing 56.67% of revenue, with a significant rise in capitalized R&D | R&D Investment Status | 2019 | 2018 | Change Percentage | | :--- | :--- | :--- | :--- | | **Number of R&D Personnel (persons)** | 2,718 | 2,408 | 12.87% | | **R&D Investment Amount (yuan)** | 1,309,030,841.11 | 1,166,094,706.39 | 12.26% | | **R&D Investment as % of Operating Revenue** | 56.67% | 54.65% | 2.02% | | **Capitalized R&D Investment Amount (yuan)** | 199,029,585.32 | 74,515,422.62 | 167.10% | | **Capitalized R&D Investment as % of Total R&D Investment** | 15.20% | 6.39% | 8.81% | - The capitalization rate of R&D investment significantly increased, primarily because the autonomous driving map update and application development project entered the development phase during this period, with a capitalized amount of **125 million yuan** for this project[89](index=89&type=chunk)[92](index=92&type=chunk) [Cash Flow](index=36&type=section&id=Cash%20Flow) Operating cash flow significantly deteriorated, decreasing by 90.68% to 34.57 million yuan, primarily due to reduced cash receipts from sales | Cash Flow Item (yuan) | 2019 | 2018 | YoY Change | | :--- | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | 34,569,445.50 | 370,749,670.59 | -90.68% | | **Net Cash Flow from Investing Activities** | -679,190,272.19 | -932,225,528.82 | 27.14% | | **Net Cash Flow from Financing Activities** | 141,162,747.94 | 915,896,285.83 | -84.59% | | **Net Increase in Cash and Cash Equivalents** | -502,923,467.86 | 391,824,242.49 | -228.35% | - The significant difference between net cash flow from operating activities and net profit is primarily due to the recognition of a large amount of non-cash investment income from the disposal of subsidiary Beijing Sixfen Technology during this period[94](index=94&type=chunk) [Non-Principal Business Analysis](index=37&type=section&id=Non-Principal%20Business%20Analysis) Non-principal businesses, particularly investment income from equity disposal, significantly contributed to the company's 2019 profit, accounting for 96.76% of total profit | Item | Amount (yuan) | % of Total Profit | Reason for Formation | | :--- | :--- | :--- | :--- | | **Investment Income** | 255,541,154.63 | 96.76% | Primarily investment income from disposal of equity investments, long-term equity investment income accounted for by equity method, and bank wealth management income | | **Other Income** | 139,250,644.10 | 52.73% | Primarily VAT refunds for software products and government grants related to daily operations | | **Fair Value Change Gains/Losses** | 20,000,000.00 | 7.57% | Primarily gains/losses from changes in trading financial assets | [Assets and Liabilities Analysis](index=38&type=section&id=Assets%20and%20Liabilities%20Analysis) Total assets slightly decreased to 9.06 billion yuan, while liabilities significantly reduced due to land transfer payments, improving the asset-liability ratio to 11.75% - The year-end balance of accounts receivable increased compared to the beginning of the year, primarily due to an increase in accounts receivable from sales[97](index=97&type=chunk) - Development expenditures significantly increased, mainly due to the company's increased investment in the development of autonomous driving maps, commercial vehicle connected services, and big data platforms[97](index=97&type=chunk) - Other payables significantly decreased, primarily due to the payment of land transfer fees during this period[98](index=98&type=chunk) - Share capital increased, primarily due to the conversion of capital reserves into share capital during this period[98](index=98&type=chunk) [Investment Analysis](index=40&type=section&id=Investment%20Analysis) Total investments increased by 67.15% to 344 million yuan, primarily for establishing the Hefei second headquarters, with most raised funds utilized as planned - Investment amount for the reporting period was **344 million yuan**, an increase of **67.15%** compared to **206 million yuan** in the previous year, primarily due to the investment in establishing the Hefei second headquarters during this period[102](index=102&type=chunk) - Funds raised from the 2010 initial public offering have been cumulatively used for **1.363 billion yuan**, with **15.61 million yuan** remaining unused; funds raised from the 2017 non-public offering, totaling **3.327 billion yuan**, have been used for **2.929 billion yuan** to pay for the acquisition of AutoChips equity, with the remaining **398 million yuan** and interest used for additional investment in the Beijing Zhongguancun Yongfeng High-Tech Industrial Base construction project[106](index=106&type=chunk)[107](index=107&type=chunk)[114](index=114&type=chunk)[116](index=116&type=chunk) [Future Development Outlook](index=51&type=section&id=Future%20Development%20Outlook) The company anticipates significant opportunities from automotive industry transformation and new infrastructure, aiming to become a trusted autonomous driving solution provider - Opportunities: The global automotive industry restructuring, national policy support for intelligent vehicles, and the acceleration of new infrastructure like 5G and AI present development opportunities for the company's autonomous driving, chip, and connected vehicle businesses[127](index=127&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk) - Challenges: Market uncertainties arising from the reshaping of the automotive industry landscape, and intense talent competition in autonomous driving and AI fields[130](index=130&type=chunk) - Future Strategy: Continue to focus on the "Intelligent Vehicle Brain" vision, building a "data + cloud + AI + chip + software-hardware integration" solution, and establishing a leading edge in core areas such as navigation, high-precision maps, high-precision positioning, and automotive chips[131](index=131&type=chunk)[132](index=132&type=chunk) - 2020 Business Plan: Across the five major business segments—navigation, autonomous driving, chips, big data, and connected vehicles—the company will continue to increase R&D investment, optimize product structure, accelerate commercialization, and expand market share[133](index=133&type=chunk)[134](index=134&type=chunk) [Significant Matters](index=57&type=section&id=Significant%20Matters) This section details important corporate actions such as profit distribution, significant equity disposals, and analyses of major subsidiaries and associated companies [Profit Distribution and Capital Reserve Conversion to Share Capital](index=57&type=section&id=Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital) The 2019 profit distribution plan proposes a cash dividend of 0.18 yuan per 10 shares, without bonus shares or capital reserve conversion Cash Dividends for the Last Three Years | Dividend Year | Cash Dividend Amount (incl. tax, yuan) | % of Net Profit Attributable to Parent | Total Cash Dividend (incl. other methods, yuan) | % of Net Profit Attributable to Parent | | :--- | :--- | :--- | :--- | :--- | | 2019 | 35,308,137.06 | 10.41% | 35,308,137.06 | 10.41% | | 2018 | 18,317,392.24 | 3.82% | 48,318,874.83 | 10.09% | | 2017 | 54,997,781.24 | 20.74% | 54,997,781.24 | 20.74% | - 2019 Profit Distribution Plan: Based on a total share capital of **1,961,563,170 shares**, a cash dividend of **0.18 yuan per 10 shares** (including tax) will be distributed, with no capital reserve conversion[143](index=143&type=chunk) [Disposal of Significant Equity Interests](index=49&type=section&id=Disposal%20of%20Significant%20Equity%20Interests) The company disposed of a portion of Beijing Sixfen Technology's equity, resulting in a 442 million yuan net profit increase and deconsolidation of the subsidiary - The company disposed of **4.82%** of Beijing Sixfen Technology's equity through a third-party capital increase, with a transaction price of **54 million yuan**[122](index=122&type=chunk) - This equity disposal contributed **442 million yuan** to the listed company's net profit, accounting for **144.28%** of total net profit[122](index=122&type=chunk) [Analysis of Major Holding and Associate Companies](index=50&type=section&id=Analysis%20of%20Major%20Holding%20and%20Associate%20Companies) Beijing Century High-Tech and Hefei AutoChips were key profit contributors, while Mapbar Technology Limited incurred significant losses impacting overall company profit Major Subsidiaries and Associate Companies 2019 Performance | Company Name | Type | Principal Business | Operating Revenue (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | | Beijing Century High-Tech Co., Ltd. | Subsidiary | Location Big Data and Dynamic Traffic Information Services | 289,630,912.67 | 99,354,080.87 | | Zhonghuan Satellite Navigation & Communication Co., Ltd. | Subsidiary | Commercial Vehicle Connected Services | 357,750,895.26 | -42,966,121.91 | | Hefei AutoChips Technology Co., Ltd. | Subsidiary | Automotive Electronic Chips | 407,780,193.88 | 66,806,205.87 | | Mapbar Technology Limited | Associate Company | Connected Vehicle Product Technology Development | 310,585,396.02 | -466,603,515.35 | - During the reporting period, the company established two new subsidiaries, Hefei NavInfo and Beijing Mandian Mobility, and lost control over Beijing Sixfen Technology due to a third-party capital increase, resulting in its deconsolidation[126](index=126&type=chunk) [Equity Incentive and Employee Stock Ownership Plans](index=63&type=section&id=Equity%20Incentive%20and%20Employee%20Stock%20Ownership%20Plans) The company actively implemented equity incentive plans in 2019, including share repurchases, new grants, and unlocks, incurring 30.17 million yuan in related costs - The company repurchased and canceled a portion of unvested restricted shares from certain resigned incentive recipients[161](index=161&type=chunk)[162](index=162&type=chunk) - The company granted **1,475,300 reserved restricted shares** to **56 incentive recipients** and completed the first vesting period for restricted shares initially granted in 2018[161](index=161&type=chunk) - In 2019, the company recognized **30.1742 million yuan** in costs due to the implementation of equity incentives, which reduced the company's total profit[163](index=163&type=chunk) [Significant Related Party Transactions](index=64&type=section&id=Significant%20Related%20Party%20Transactions) The only significant related party transaction involved the capital increase of subsidiary Beijing Sixfen Technology, where an associated fund participated as an investor - The capital increase of subsidiary Beijing Sixfen Technology constituted a related party transaction because one of the investors, Beijing Siwei Interconnected Fund Management Center (Limited Partnership), is a related party of the company; this capital increase resulted in the company's shareholding in Sixfen Technology decreasing to **40.18%**, leading to its deconsolidation from the consolidated financial statements[167](index=167&type=chunk) [Share Changes and Shareholder Information](index=70&type=section&id=Share%20Changes%20and%20Shareholder%20Information) This section reports on changes in the company's share capital structure and provides an overview of its major shareholders and actual control status [Share Capital Changes](index=70&type=section&id=Share%20Capital%20Changes) The company's total share capital increased from 1.31 billion to 1.96 billion shares due to capital reserve conversion, equity incentive grants, and share repurchases | Item | Before This Change (shares) | After This Change (shares) | Reason for Change | | :--- | :--- | :--- | :--- | | **Restricted Shares** | 266,110,589 | 386,012,962 | Equity incentive grants and capital reserve conversion | | **Unrestricted Shares** | 1,043,360,393 | 1,575,550,208 | Capital reserve conversion and partial restricted share unlocking | | **Total Shares** | 1,309,470,982 | 1,961,563,170 | Capital reserve conversion, equity incentives, share repurchase and cancellation | - The primary reason for the increase in shares was the implementation of the 2018 equity distribution plan, which involved converting capital reserves into share capital at a rate of **5 shares for every 10 shares** held by all shareholders[181](index=181&type=chunk) [Shareholders and Actual Control Status](index=74&type=section&id=Shareholders%20and%20Actual%20Control%20Status) As of year-end, the company had 177,588 shareholders and no controlling shareholder or actual controller, with China Siwei and Tencent as the largest shareholders - The company has no controlling shareholder or actual controller; this status has been in place since China Siwei transferred a portion of its equity to Tencent Industry Investment Fund in 2014[189](index=189&type=chunk)[190](index=190&type=chunk) Top Ten Shareholders' Shareholding (as of 2019 year-end) | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | China Siwei Surveying and Mapping Technology Co., Ltd. | State-owned Legal Person | 9.96% | 195,378,651 | | Shenzhen Tencent Industry Investment Fund Co., Ltd. | Domestic Non-State-owned Legal Person | 9.76% | 191,363,690 | | Tianan Property Insurance Co., Ltd. - Baoying No. 1 | Other | 3.50% | 68,742,655 | | Central Huijin Asset Management Co., Ltd. | State-owned Legal Person | 3.32% | 65,180,925 | | Beijing Xindongneng Investment Fund (Limited Partnership) | Domestic Non-State-owned Legal Person | 1.80% | 35,252,643 | [Directors, Supervisors, Senior Management, and Employees](index=80&type=section&id=Directors,%20Supervisors,%20Senior%20Management,%20and%20Employees) This section provides information on the company's board, supervisory board, senior management, including their shareholdings, appointments, and overall employee structure [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=80&type=section&id=Changes%20in%20Shareholdings%20of%20Directors,%20Supervisors,%20and%20Senior%20Management) Shareholdings of directors, supervisors, and senior management increased due to capital reserve conversion, with some executives also reducing their stakes | Name | Position | Shares Held at Beginning of Period (shares) | Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | | Wu Jinfeng | Chairman | 0 | 0 | | Sun Yuguo | Vice Chairman | 17,668,323 | 20,812,985 | | Cheng Peng | Director, General Manager | 5,218,365 | 5,870,660 | [Appointments of Directors, Supervisors, and Senior Management](index=82&type=section&id=Appointments%20of%20Directors,%20Supervisors,%20and%20Senior%20Management) This section details the professional backgrounds and work experiences of the company's management team, highlighting their diverse expertise across relevant industries - Chairman Mr. Wu Jinfeng possesses a profound background in the aerospace and satellite communication industries, having served as a senior executive at China Satcom Group and other companies[198](index=198&type=chunk) - The Board of Directors has a diverse composition, including Mr. Zhan Weibiao and Mr. Zhong Xiangping from Tencent, and Mr. Li Xiang, founder of CHJ Automotive, reflecting the company's deep integration with the internet and automotive industries[199](index=199&type=chunk)[200](index=200&type=chunk) - Senior management team members are largely cultivated internally or are seasoned industry professionals, possessing extensive experience in their respective business areas such as mapping, chips, and connected vehicles[203](index=203&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk) [Company Employee Information](index=90&type=section&id=Company%20Employee%20Information) As of 2019 year-end, the company employed 4,696 staff, with technical personnel comprising 57.88% and over 70% holding bachelor's degrees or higher | Professional Composition | Number (persons) | | :--- | :--- | | Production Personnel | 1228 | | Sales Personnel | 257 | | **Technical Personnel** | **2718** | | Financial Personnel | 72 | | Administrative Personnel | 421 | | **Total** | **4696** | - In 2019, total employee compensation amounted to **1.163 billion yuan**, accounting for **47.51%** of the company's total costs[216](index=216&type=chunk) [Corporate Governance](index=92&type=section&id=Corporate%20Governance) This section describes the company's corporate governance framework, its adherence to regulatory requirements, and the independent operation of its various committees [Basic Corporate Governance Status](index=92&type=section&id=Basic%20Corporate%20Governance%20Status) The company operates in strict compliance with regulations, maintaining an independent corporate governance structure without a controlling shareholder - The company's actual corporate governance status does not materially differ from the Company Law and relevant regulations of the China Securities Regulatory Commission[219](index=219&type=chunk) - The company is a listed entity without an actual controller or controlling shareholder, maintaining independence from shareholders holding **5% or more** in terms of business, personnel, assets, organization, and finance[220](index=220&type=chunk) - During the reporting period, the four special committees under the Board of Directors—Strategy, Remuneration and Appraisal, Audit, and Nomination—all actively fulfilled their responsibilities[227](index=227&type=chunk) [Corporate Bonds Information](index=97&type=section&id=Corporate%20Bonds%20Information) This section provides details on the company's outstanding corporate bonds, including their terms, credit ratings, and any significant changes during the reporting period [Corporate Bond Basic Information](index=97&type=section&id=Corporate%20Bond%20Basic%20Information) The company's "17 Siwei 01" bond, with a balance of 1.19 million yuan, matures in November 2020, and its coupon rate was adjusted from 6.00% to 4.00% | Bond Abbreviation | Bond Code | Issue Date | Maturity Date | Bond Balance (million yuan) | Interest Rate | | :--- | :--- | :--- | :--- | :--- | :--- | | 17 Siwei 01 | 112618 | 2017-11-23 | 2020-11-23 | 1.1911 | 4.00% | - During the reporting period, the issuer chose to reduce the coupon rate of the "17 Siwei 01" bond for its third year from **6.00% to 4.00%**, triggering the investor put option; ultimately, **488,089 bonds** were put back, totaling **48.8089 million yuan**[233](index=233&type=chunk) - United Credit Ratings Co., Ltd. rated the company's corporate credit rating as **AA**, with a "stable" outlook, and rated this bond issue's credit rating as **AAA**[237](index=237&type=chunk) [Financial Report](index=101&type=section&id=Financial%20Report) This section presents the audited financial statements, including the balance sheet, income statement, and cash flow statement, along with detailed notes [Audit Report](index=101&type=section&id=Audit%20Report) The auditor issued an unqualified opinion on the 2019 financial statements, highlighting goodwill impairment testing and the deconsolidation of Beijing Sixfen Technology as key audit matters - The audit opinion type is a standard unqualified opinion[246](index=246&type=chunk)[247](index=247&type=chunk) - Key Audit Matter 1: Goodwill impairment testing; as of year-end, the original value of goodwill was **3.225 billion yuan**, and the impairment testing process is complex and involves significant judgments[250](index=250&type=chunk)[251](index=251&type=chunk) - Key Audit Matter 2: Beijing Sixfen Technology was not consolidated this year; due to a capital increase and share expansion, the company lost control, and this matter had a significant impact on the consolidated financial statements, generating **442 million yuan** in investment income[251](index=251&type=chunk) [Financial Statements](index=104&type=section&id=Financial%20Statements) This section presents the company's consolidated and parent company financial statements for 2019, including balance sheets, income statements, and cash flow statements [Consolidated Balance Sheet](index=104&type=section&id=Consolidated%20Balance%20Sheet) As of year-end 2019, total assets were 9.06 billion yuan, total liabilities 1.06 billion yuan, and owners' equity 7.99 billion yuan, indicating a sound financial structure Consolidated Balance Sheet Summary (December 31, 2019) | Item | Amount (yuan) | | :--- | :--- | | **Total Current Assets** | 2,728,608,663.93 | | **Total Non-Current Assets** | 6,327,013,791.58 | | **Total Assets** | **9,055,622,455.51** | | **Total Current Liabilities** | 1,045,343,314.32 | | **Total Non-Current Liabilities** | 18,914,508.48 | | **Total Liabilities** | **1,064,257,822.80** | | **Total Owners' Equity Attributable to Parent Company** | 7,799,544,483.82 | | **Total Owners' Equity** | **7,991,364,632.71** | [Consolidated Income Statement](index=110&type=section&id=Consolidated%20Income%20Statement) In 2019, total operating revenue was 2.31 billion yuan, with net profit attributable to parent company shareholders reaching 339 million yuan, significantly boosted by investment income Consolidated Income Statement Summary (2019) | Item | Amount (yuan) | | :--- | :--- | | **I. Total Operating Revenue** | 2,309,742,643.97 | | **II. Total Operating Costs** | 2,448,397,883.14 | | Including: R&D Expenses | 1,189,589,631.52 | | **Investment Income (Losses indicated by "-")** | 255,541,154.63 | | **III. Operating Profit (Losses indicated by "-")** | 262,412,102.73 | | **IV. Total Profit (Total Losses indicated by "-")** | 264,105,573.44 | | **Net Profit Attributable to Parent Company Owners** | 339,184,565.86 | [Consolidated Cash Flow Statement](index=115&type=section&id=Consolidated%20Cash%20Flow%20Statement) Operating cash flow significantly decreased to 34.57 million yuan, while investment activities resulted in a net outflow of 679 million yuan, leading to a net decrease in cash Consolidated Cash Flow Statement Summary (2019) | Item | Amount (yuan) | | :--- | :--- | | **Net Cash Flow from Operating Activities** | 34,569,445.50 | | **Net Cash Flow from Investing Activities** | -679,190,272.19 | | **Net Cash Flow from Financing Activities** | 141,162,747.94 | | **Net Increase in Cash and Cash Equivalents** | -502,923,467.86 | | **Cash and Cash Equivalents at End of Period** | 1,578,876,284.59 | [Notes to Consolidated Financial Statements](index=156&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations for key financial statement items, including goodwill, long-term equity investments, and significant related party transactions - Goodwill's original book value is **3.225 billion yuan**, of which **3.043 billion yuan** was formed from the acquisition of Hefei AutoChips; no goodwill impairment provision was made this year[436](index=436&type=chunk)[437](index=437&type=chunk) - Among long-term equity investments, the year-end book value of the investment in associate company Mapbar Technology Limited was **1.032 billion yuan**[419](index=419&type=chunk) - In related party transactions, sales of goods and provision of services to Beijing NavInfo Connected Technology Co., Ltd. totaled **178 million yuan**; sales of goods and provision of services to Shanghai Anji NavInfo Information Technology Co., Ltd. totaled **121 million yuan**[574](index=574&type=chunk)

Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the first half of 2019, representing a year-on-year growth of 20%[17]. - The company's revenue for the first half of 2019 was CNY 1,083,711,968.68, representing a 9.43% increase compared to CNY 990,343,168.77 in the same period last year[22]. - The company has set a performance guidance of 10% growth in net profit for the full year 2019, targeting a net profit of approximately 200 million RMB[17]. - Net profit attributable to shareholders decreased by 47.56% to CNY 85,600,315.07 from CNY 163,242,653.43 year-on-year[22]. - The company reported a basic earnings per share of CNY 0.0446, down 47.71% from CNY 0.0853 in the same period last year[22]. - The company's total revenue for the reporting period was 1.08 billion RMB, representing a year-on-year growth of 9.43%[87]. - Navigation business revenue reached 441.42 million RMB, up 7.36% year-on-year, while connected vehicle revenue increased by 38.16% to 328.59 million RMB[92]. - Advanced driver assistance and autonomous driving revenue surged by 140.83% to 48.31 million RMB, and location big data services revenue grew by 80.34% to 69.26 million RMB[87]. Research and Development - The company plans to invest heavily in R&D for high-precision maps and autonomous driving solutions, with an expected budget allocation of 300 million RMB for 2019[14]. - The company's R&D investment amounted to 543.71 million RMB, reflecting an increase of 18.59% compared to the previous year[90]. - The company is focusing on the development of high-precision maps, autonomous driving, automotive electronic chips, and location big data as part of its strategic goals for 2022[29]. - The company has increased its R&D investment in autonomous driving, leading to a rise in development expenditures[81]. - The company emphasizes the need for talent acquisition in high-precision mapping and AI fields to support rapid development[142]. Market Expansion and Strategy - Future outlook includes a focus on expanding international markets, particularly in Southeast Asia and Europe, aiming for a 25% increase in overseas revenue by 2020[13]. - The company is exploring strategic partnerships and potential acquisitions to bolster its technology capabilities and market presence, with a target of completing at least two partnerships by the end of 2019[14]. - The company is actively expanding its overseas market presence, participating in ITS Asia 2019 and winning the "Excellent Solution Award" for its traffic congestion management solution[72]. - The company is focusing on expanding its market presence and commercial applications through various strategies including strategic partnerships and financing[86]. Operational Challenges and Risks - The company has identified risks related to market uncertainties and competition, emphasizing the need for agile business strategies to adapt to changing conditions[13]. - The company faces risks from market uncertainties, including economic slowdown and trade tensions, impacting the automotive industry and new product development[139]. - Investment in new products and technologies, such as high-precision maps and autonomous driving solutions, continues, but market acceptance remains a challenge[140]. Cash Flow and Financial Management - The net cash flow from operating activities was negative at CNY -32,286,544.66, a decline of 116.93% compared to CNY 190,738,432.92 in the previous year[22]. - The company's cash and cash equivalents decreased by 9.91% to RMB 1,718,921,139 due to payments for the acquisition of Jiefa Technology equity[101]. - The company reported an investment loss of RMB 86,221,628.85, representing -136.82% of total profit, mainly from long-term equity investments[99]. - The company will not distribute cash dividends for the current fiscal year, opting to reinvest profits into business development and innovation[7]. Partnerships and Collaborations - The company has signed a strategic cooperation agreement with Huawei to collaborate on high-precision maps and autonomous driving solutions, marking a significant partnership in the industry[83]. - The company has established strategic partnerships with multiple organizations to enhance its position services and smart transportation solutions[72]. - The company has initiated joint development of a data platform with Didi and established a partnership with Bosch to explore intelligent vehicle diagnostics and new energy battery analysis solutions[73]. Shareholder and Equity Management - The company did not distribute cash dividends or bonus shares for the half-year period[147]. - A total of 1,475,300 shares of reserved restricted stock were granted to 56 incentive targets at a price of RMB 12.80 per share[157]. - The company completed the first unlock of the 2018 restricted stock incentive plan on July 12, 2019[181]. - The company approved a profit distribution plan, agreeing to distribute cash of 0.14 CNY per 10 shares and to increase capital by 5 shares for every 10 shares held[180]. Quality and Certification - The company has successfully passed IATF16949 and ISO9001 certification audits, enhancing its quality management system[60]. - The company is focusing on AI and big data processing for advanced driver assistance and autonomous driving, strengthening its competitive advantage in the industry[61]. Product Development and Launches - New product launches include an upgraded version of their navigation software, expected to enhance user experience and increase market share by 5%[17]. - The TPMS chip is scheduled for mass production by the end of 2019, and the development of next-generation IVI chips and vehicle networking chips is accelerating[40]. - The company has launched the Minedata3.0 open platform, integrating various capabilities for location big data services, enhancing operational efficiency and application value[69].