广东惠伦晶体科技股份有限公司 2018 年第一季度报告全文 广东惠伦晶体科技股份有限公司 2018 年第一季度报告 2018-020 2018 年 04 月 1 广东惠伦晶体科技股份有限公司 2018 年第一季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，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。 公司负责人赵积清、主管会计工作负责人赵积清及会计机构负责人(会计主 管人员)邓又强声明：保证季度报告中财务报表的真实、准确、完整。 2 广东惠伦晶体科技股份有限公司 2018 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 | | --- | --- | --- | --- | | 营业总收入（元） | 80,121,246.58 | 68,492,697.63 | 16.98% | | 归属于上市公司股东的净利润（元） | 2,380,5 ...

Product and Market Diversification - The company's main product, the piezoelectric quartz crystal resonator, is widely used across various sectors, including telecommunications, automotive electronics, and consumer electronics, indicating a broad market application [6]. - The company is expanding its product line by developing new devices such as oscillators to mitigate risks associated with its single main business focus on SMD quartz crystal resonators [8]. - The company has established a new subsidiary, Chuangxiangyun, to enter the security monitoring field, enhancing its business diversification and risk management [8]. - The company is closely monitoring international technological developments to adjust its product structure and introduce higher value-added products [6]. - The company is focusing on the research and development of new products such as temperature-compensated oscillators to diversify its product offerings [33]. - The company aims to mitigate business risks by diversifying into new profit growth areas, enhancing its core competitiveness and overall strength [35]. - The company has focused on diversifying its business through acquisitions and expanding into software and information technology services [48]. - The company has entered the software and information technology service industry through the acquisition of Guangzhou Chuangxiang Technology Co., Ltd., enhancing its capabilities in communication and security management systems [87]. Financial Performance and Profitability - The company reported a profit distribution plan, proposing a cash dividend of RMB 0.30 per 10 shares, with no bonus shares or capital reserve transfers [12]. - The company's operating revenue for 2017 was ¥363,278,187.71, a decrease of 1.76% compared to ¥369,797,361.80 in 2016 [25]. - The net profit attributable to shareholders for 2017 was ¥23,356,931.14, down 18.75% from ¥28,747,927.82 in 2016 [25]. - The net profit after deducting non-recurring gains and losses was ¥17,348,230.82, a decline of 34.86% from ¥26,631,587.15 in 2016 [25]. - The total profit for 2017 was CNY 23.58 million, down 18.55% year-on-year, while net profit also decreased by 18.75% to CNY 23.36 million [45]. - The company's SMD quartz crystal resonators generated sales revenue of CNY 311.36 million, a decline of 1.87% from the previous year, maintaining a similar proportion of total revenue [45]. - The cash dividend per 10 shares for 2017 was ¥0.30, which is a decrease from ¥0.45 in 2016 and ¥0.70 in 2015 [98]. - The cash dividend accounted for 100% of the total profit distribution for the reporting period, with a distributable profit of ¥230,749,697.24 [99]. Risks and Challenges - The company faces risks from declining product prices due to increased competition and technological advancements, which could negatively impact gross margins and profitability [6]. - The company is exposed to exchange rate risks due to high export ratios and reliance on foreign currency for raw material imports, which could affect cost structures and profitability [9]. - The company acknowledges management risks associated with rapid growth and is enhancing training and management systems to address these challenges [12]. - The company is aware of potential market risks stemming from global economic conditions and trade tensions, which could lead to significant declines in product prices and net profits [12]. - The company faces risks including price declines in its main products, which could negatively impact gross margins and profitability if competition intensifies [89]. Research and Development - The company emphasizes the importance of maintaining advanced technology to sustain its competitive edge in the market, with plans to increase R&D investment and strengthen industry-academic collaborations [10]. - Research and development expenses were CNY 25.94 million, representing over 7% of total revenue, despite a 3.79% decrease from the previous year [46]. - R&D investments will focus on new products such as SMD1612 series and temperature-compensated oscillators, as well as software products for smart service cloud platforms [88]. - The number of R&D personnel increased to 178, making up 20.30% of the workforce, compared to 19.37% in 2016 [65]. - The company has been involved in various R&D projects, including the development of ultra-small high-precision wireless communication quartz crystal components [171]. Corporate Governance and Shareholder Relations - The company has maintained a cash dividend payout ratio of at least 80% during its mature development stage without significant capital expenditure plans [99]. - The company has fulfilled its commitments made during the acquisition and restructuring processes within the reporting period [99]. - The company’s cash dividend policy allows for adjustments or changes under compliant and transparent conditions [97]. - The company has not proposed any ordinary share cash dividend distribution plan for the reporting period despite having positive distributable profits [99]. - The company has a dedicated information disclosure management system to ensure timely and accurate communication with investors [187]. Acquisitions and Investments - In 2017, the company acquired 100% of Guangzhou Chuangxiang Technology Co., Ltd., expanding its business into the security network monitoring field, enhancing software development capabilities [34]. - The acquisition of Guangzhou Chuangxiang Technology Co., Ltd. contributed CNY 28.85 million in revenue from system integration products and technical services, accounting for 7.94% of total revenue [45]. - The company completed the acquisition of Guangzhou Chuangxiang Cloud Technology Co., Ltd. in June 2017, which has since contributed ¥28,848,581.60 in revenue and ¥1,364,250.00 in net profit [84]. Environmental and Social Responsibility - The company has implemented effective measures for energy conservation and environmental protection, striving to become a green factory [145]. - The company has established a wastewater treatment reuse project as part of its environmental protection efforts [145]. - The company has passed international ISO14001 environmental management certification and QC080000 certification for green products, ensuring compliance with SGS standards for harmful substances [143]. - The company has a comprehensive social responsibility plan, including poverty alleviation initiatives, although specific metrics were not provided in the report [144]. Employee and Management Structure - The company employed a total of 877 staff, including 588 production personnel and 167 technical personnel [178][179]. - The educational background of employees includes 1 PhD, 8 Master's degrees, and 72 Bachelor's degrees, with a significant portion (351) having education below high school level [179]. - The company has established a salary management system ensuring that all employees receive a basic salary not lower than the local minimum wage [180]. - The management team has extensive experience in the electronics and finance sectors, with key personnel having over 20 years of industry experience [171]. - The total compensation for directors, supervisors, and senior management during the reporting period amounted to 1.5004 million yuan [177].

Financial Performance - Operating revenue for the period reached ¥100,603,916.41, reflecting a year-on-year increase of 12.56%[8] - Net profit attributable to shareholders was ¥5,335,206.51, a significant increase of 71.67% year-on-year[8] - The net profit after deducting non-recurring gains and losses was ¥4,560,400.37, up by 54.76% compared to the same period last year[8] - Basic earnings per share rose to ¥0.03, marking a 50.00% increase year-on-year[8] - The total operating revenue for the year-to-date period was CNY 255,348,274.23, a decrease from CNY 263,197,902.87, reflecting a decline of about 3.2%[50] - The total operating costs for the year-to-date period were CNY 248,500,097.63, slightly down from CNY 249,639,751.45, indicating a decrease of approximately 0.5%[50] - Net profit for the current period was ¥9,596,290.05, a decline of 32.5% from ¥14,223,364.08 in the same period last year[57] - Basic and diluted earnings per share both decreased to ¥0.06, down from ¥0.08 in the previous period[57] Assets and Liabilities - Total assets increased to ¥1,183,284,961.18, representing a growth of 35.22% compared to the previous year[8] - The total number of shareholders at the end of the reporting period was 16,624[12] - Current liabilities totaled CNY 500,133,472.78, an increase from CNY 185,770,526.60, marking a rise of 169.5%[40] - The company's equity attributable to shareholders was CNY 664,935,658.83, up from CNY 662,911,707.78, showing a slight increase of 0.3%[41] - Cash and cash equivalents increased to CNY 138,487,172.55 from CNY 130,727,161.61, reflecting a growth of 5.4%[39] Cash Flow - The company reported a net cash flow from operating activities of ¥37,829,845.90, down by 6.50% year-on-year[8] - Cash flow from operating activities generated a net amount of ¥37,829,845.90, compared to ¥40,458,893.65 in the previous period[60] - Cash flow from investing activities resulted in a net outflow of ¥75,825,443.87, contrasting with a net inflow of ¥64,167,880.44 in the prior period[61] - The ending cash and cash equivalents balance was ¥57,611,759.24, down from ¥84,485,085.98 at the end of the previous period[61] Shareholder Information - The largest shareholder, Xinjiang Huilun Equity Investment Partnership, held 38.25% of the shares[12] - The company did not conduct any repurchase transactions among the top 10 shareholders during the reporting period[14] - The cash dividend distribution plan was approved, with a total cash dividend of 7.572339 million RMB distributed to shareholders[28] Investments and Acquisitions - The company completed the acquisition of 100% equity in Guangzhou Chuangxiang Technology Co., Ltd., which has been renamed Guangzhou Chuangxiang Cloud Technology Co., Ltd.[27] - The value of trading financial assets increased by 100% to 22.4 million RMB due to the purchase of bank wealth management products[21] - Other receivables rose by 411.62% to 2.1762 million RMB, primarily due to increased employee advances and project performance guarantees[21] Financial Expenses and Income - Financial expenses decreased by 49.75% to 3.2864 million RMB, mainly due to increased interest income from bank deposits and reduced foreign exchange losses[23] - Investment income decreased by 62.86% to 137,900 RMB, primarily due to a reduction in bank wealth management product purchases[23] - The company recorded other income of CNY 300,147.67 in the third quarter, contributing to the overall profitability[48] Future Outlook - The company is focusing on expanding its market presence and investing in new technologies to drive future growth[38] - The company plans to enhance its product offerings and explore potential mergers and acquisitions to strengthen its competitive position[38]

Financial Performance - Total revenue for the first half of 2017 was CNY 154,744,357.82, a decrease of 10.98% compared to CNY 173,822,994.95 in the same period last year[19]. - Net profit attributable to shareholders was CNY 6,301,609.43, down 49.70% from CNY 12,528,905.50 in the previous year[19]. - Net profit after deducting non-recurring gains and losses was CNY 1,758,661.21, a decline of 83.51% compared to CNY 10,662,078.00 in the same period last year[19]. - Total profit for the period was CNY 7.30 million, down 40.65% compared to the previous year[37]. - Basic earnings per share decreased by 42.86% to CNY 0.04 from CNY 0.07 in the same period last year[19]. - The total comprehensive income for the period was CNY 6,624,368.67, compared to CNY 11,306,591.02 in the previous period, indicating a decrease of approximately 41.5%[130]. - The company reported a significant reduction in financial expenses, which decreased to CNY 2.11 million from CNY 4.57 million year-on-year[125]. Cash Flow and Liquidity - Net cash flow from operating activities was CNY 27,846,338.14, down 25.33% from CNY 37,291,400.58 in the previous year[19]. - The company reported a net cash increase of $15.87 million, which is a decrease of 58.08% compared to $37.85 million in the previous year[42]. - The net cash flow from investment activities was CNY -52,560,929.13, compared to CNY 84,107,891.93 in the previous period, reflecting a significant decline[133]. - Cash inflow from financing activities was CNY 308,412,016.85, an increase of 155.5% from CNY 121,006,256.01 in the previous period[134]. - The ending balance of cash and cash equivalents was CNY 94,341,073.73, down from CNY 100,576,552.86 in the previous period[134]. Assets and Liabilities - Total assets increased by 8.47% to CNY 949,169,728.85 from CNY 875,071,614.91 at the end of the previous year[19]. - Current assets totaled RMB 441,428,945.46, up from RMB 392,268,241.13, indicating an increase of about 12.55%[116]. - The company's short-term borrowings rose to RMB 214,063,933.45 from RMB 138,205,946.90, marking an increase of about 54.91%[117]. - Total liabilities amounted to RMB 282,543,210.22, compared to RMB 207,174,366.71 at the beginning of the period, which is an increase of approximately 36.36%[117]. - The company's equity attributable to shareholders decreased slightly to RMB 666,626,518.63 from RMB 667,897,248.20, a decline of about 0.19%[118]. Research and Development - R&D expenses amounted to CNY 7.25 million, representing 4.68% of total revenue, a decrease of 40.13% year-on-year[39]. - The company increased its investment in the development of higher value-added oscillator products, such as TCXO and TSX[27]. - The company is focusing on enhancing its operational efficiency to improve profitability in the upcoming quarters[125]. Shareholder and Equity Matters - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company has committed to not transferring or managing its shares for 36 months post-IPO, ensuring stability in shareholding[70]. - The controlling shareholder is obligated to increase their shareholding by no more than RMB 6 million each time, representing at least 1% of the total share capital[72]. - The company has outlined a plan for potential share reductions by major shareholders after the lock-up period, with a maximum reduction of 20% of their total shares held at the time of listing[73]. Risks and Challenges - The company faced significant risks during its operations, which are detailed in the report[4]. - The company predicts a significant risk of net profit loss or substantial changes compared to the same period last year for the period from January to September 2017[60]. - The main product, the piezoelectric quartz crystal resonator, faces price decline risks due to increased production efficiency and competition, potentially impacting gross margins and profitability[60]. Corporate Governance and Compliance - The company has not engaged in any major litigation or arbitration matters during the reporting period[81]. - There were no significant related party transactions or asset acquisitions during the reporting period[84]. - The half-year financial report has not been audited[78]. - The company has not faced any penalties or corrective actions during the reporting period[82]. Product Development and Market Strategy - The company completed the trial production of TCXO2016 and TCXO2520 series, marking a significant product development milestone[38]. - The company is developing new products, such as oscillators, to diversify its product range and create new profit growth points[61]. - The company focuses on designing, producing, and selling new electronic components, primarily piezoelectric quartz crystal components, with a significant emphasis on SMD quartz crystal resonators[152].

Product Development and Innovation - The company's main product, the piezoelectric quartz crystal resonator, is widely used across various sectors, including telecommunications, automotive electronics, and consumer electronics, but faces risks of price declines due to increased competition and technological advancements[5]. - The company primarily relies on SMD quartz crystal resonators for revenue, which poses a risk of income decline if more manufacturers enter the market or existing manufacturers expand their production capacity[6]. - The company has initiated the development of new products, such as oscillators, to diversify its product offerings and create new profit growth points[7]. - The company is focusing on the research and development of new products such as temperature-compensated oscillators to diversify its product offerings and create new profit growth points[32]. - The company has transitioned from DIP products to SMD products, with a focus on miniaturized SMD products like SMD3225 and SMD2520[32]. - The company plans to develop new products, including the SMD1612 and SMD1210 series surface mount quartz crystal products, to meet urgent market demands[87]. - The company has successfully launched temperature-compensated crystal oscillators (TCXO) into the market, marking a significant product development milestone[44]. - The company has a strong focus on R&D, having developed several patented technologies including low aging rate quartz crystal resonators and high-frequency quartz crystal oscillators[166]. - Continuous investment in R&D for SMD products, focusing on the development of the SMD1612 series and SMD1210 products[89]. Financial Performance - The company's operating revenue for 2016 was CNY 369.80 million, a decrease of 11.20% compared to CNY 416.42 million in 2015[24]. - The net profit attributable to shareholders for 2016 was CNY 28.75 million, down 30.51% from CNY 41.37 million in 2015[24]. - The net cash flow from operating activities decreased by 20.99% to CNY 48.62 million in 2016 from CNY 61.54 million in 2015[24]. - The basic earnings per share for 2016 was CNY 0.17, a decline of 37.04% compared to CNY 0.27 in 2015[24]. - The total profit for 2016 was CNY 2.89 million, down 38.23% year-on-year, while net profit decreased by 30.51% to CNY 2.87 million[43]. - The gross margin for electronic components was 20.49%, down 5.29% from the previous year[52]. - The company reported a total of 137,896,003.3 CNY in cash and cash equivalents, representing 15.76% of total assets, an increase from 64,962,007.56 CNY (7.53%) in the previous year[71]. - The company reported a total remuneration of 140.7 million yuan for directors and senior management during the reporting period[176]. Market and Competition - The company faces risks from declining product prices due to increased competition and technological advancements in the industry[90]. - The company is exposed to exchange rate risks, particularly with a high export ratio and reliance on foreign currency for raw material imports[92]. - The company emphasizes the need for continuous innovation to maintain its technological edge and prevent revenue decline[93]. - The company maintains a distribution model primarily focused on exports, influenced by downstream industry demand and international trade barriers[32]. Management and Governance - The company plans to enhance its management capabilities to cope with the complexities arising from rapid growth and expansion of its business operations[11]. - Management training and system improvements are being implemented to address challenges arising from rapid company growth[94]. - The company has a commitment to maintaining shareholder value through stable management and strategic R&D investments[166]. - The company has a diverse board with independent directors holding significant roles in other organizations, enhancing governance and oversight[173]. - The strategic committee conducted thorough research on the company's long-term development strategies and major investment decisions, fulfilling its responsibilities[197]. Shareholder and Capital Management - The profit distribution plan approved by the board proposes a cash dividend of 0.45 RMB per 10 shares, based on a total of 168,274,200 shares[11]. - The cash dividend for 2016 is set at RMB 0.45 per 10 shares, totaling RMB 7,572,339, which represents 100% of the profit distribution[98][100]. - The company has committed to normal performance of shareholding commitments made by its management personnel[107]. - The company will not transfer or entrust others to manage its shares within twelve months after the initial public offering[106]. - The company has established a plan to notify the issuer and publish an announcement regarding the increase in holdings[106]. Operational Efficiency and Cost Management - The company aims to enhance production automation and network levels to reduce manufacturing costs and improve competitiveness in the global market[86]. - The company plans to strengthen its manufacturing, technology innovation, and marketing systems through technological upgrades and talent development[86]. - The cash flow from operating activities showed a significant difference from net profit primarily due to high fixed asset depreciation, indicating potential areas for operational efficiency improvement[66]. - The company aims to improve production technology and efficiency, targeting a reduction in production costs to maximize profits[89]. Employee and Corporate Culture - The total number of employees in the company is 815, with 780 in the parent company and 35 in major subsidiaries[177]. - The company actively promotes employee training and cultural activities to enhance team cohesion and employee morale[142]. - In 2016, the company plans to enhance its training system, focusing on new employee onboarding, skills training, and management training for mid-to-senior level staff[180]. - The company has established a salary management system ensuring that all employees receive a minimum salary not lower than the local minimum wage standard[179]. Compliance and Legal Matters - The company has not faced any regulatory penalties in the past three years for its directors, supervisors, and senior management[173]. - There were no significant lawsuits or arbitration matters during the reporting period[120]. - The company has ensured that its financial report is accurate, complete, and free from false statements or omissions[116]. - The company has maintained compliance with environmental regulations, with no records of harmful emissions during production activities[143].

Financial Performance - Total revenue for Q1 2017 was ¥68,492,697.63, a decrease of 14.41% compared to ¥80,028,107.47 in the same period last year[8]. - Net profit attributable to shareholders was ¥2,093,337.27, down 49.93% from ¥4,180,730.35 year-on-year[8]. - Net profit excluding non-recurring items was -¥2,339,958.64, a decline of 156.14% compared to ¥4,168,115.54 in the previous year[8]. - Basic earnings per share decreased by 50.00% to ¥0.01 from ¥0.02 year-on-year[8]. - The total profit for the reporting period decreased by 50.42% compared to the previous year, attributed to declining revenue and gross margin[26]. - The company's net profit for the first quarter of 2017 was CNY 2,093,337.27, a decrease of 50.0% compared to CNY 4,180,730.35 in the same period last year[65]. - Operating revenue for the first quarter was CNY 68,492,697.63, down from CNY 80,028,107.47, indicating a decline of about 14.5% year-over-year[64]. - The total comprehensive income for the first quarter was CNY 2,168,225.55, compared to CNY 3,315,271.22 in the previous period[70]. Cash Flow - Operating cash flow for the period was ¥5,969,316.60, an increase of 106.17% from ¥2,895,328.89 in the same period last year[8]. - The cash flow from operating activities increased by 106.17% year-on-year, amounting to RMB 59.69 million, mainly due to an increase in cash received related to operating activities[27]. - Cash inflows from operating activities totaled CNY 85,478,601.00, a decrease of 9.5% from CNY 93,931,437.81 in the previous period[72]. - The net cash flow from operating activities was CNY 5,969,316.60, an increase from CNY 2,895,328.89 in the previous period[73]. - The net cash flow from investing activities was -CNY 30,807,352.96, compared to CNY 137,512,927.05 in the previous period[77]. - Cash inflows from financing activities amounted to CNY 169,790,153.89, significantly higher than CNY 43,966,829.84 in the previous period[74]. - The net cash flow from financing activities was -CNY 285,947.86, compared to -CNY 91,302,578.12 in the previous period[74]. - The ending balance of cash and cash equivalents was CNY 52,783,880.32, down from CNY 111,467,825.71 in the previous period[74]. - The company reported a net increase in cash and cash equivalents of -CNY 25,687,760.93 for the quarter[74]. Assets and Liabilities - Total assets at the end of the reporting period were ¥908,058,050.85, reflecting a 3.77% increase from ¥875,071,614.91 at the end of the previous year[8]. - The total liabilities of the company were CNY 238,067,465.38, compared to CNY 207,174,366.71 at the beginning of the period, marking an increase of around 14.9%[57]. - The company's short-term borrowings increased to CNY 171,623,755.58 from CNY 138,205,946.90, which is an increase of approximately 24.2%[56]. - The total equity attributable to the owners of the parent company was CNY 669,990,585.47, slightly up from CNY 667,897,248.20, showing a marginal increase of about 0.3%[59]. - The company's accounts receivable amounted to CNY 150,810,551.37, a slight decrease from CNY 152,034,662.19, reflecting a decline of about 0.8%[55]. - The inventory value increased to CNY 101,062,959.18 from CNY 88,623,231.72, representing a significant growth of approximately 14.1%[60]. Business Strategy and Risks - The company faces risks related to declining product prices, particularly for its main product, the piezoelectric quartz crystal resonator[11]. - The company is diversifying its product offerings, including the development of oscillators to mitigate risks associated with a single main business[12]. - The company plans to enhance its research and development efforts to maintain its technological edge and adapt to market demands[14]. - The company is focusing on expanding both domestic and international markets to meet customer demands and strengthen its brand[33]. - The company is committed to improving its internal management through the implementation of 6S management practices to enhance operational efficiency[33]. - The company is facing challenges due to a slowdown in its primary markets, which has led to fluctuations in revenue and net profit[35]. Acquisitions and Investments - The company plans to acquire 100% equity of Guangzhou Chuangxiang Technology Co., Ltd. for a cash consideration of 260 million yuan, which will enhance its business expansion and create new profit growth points[35]. - The acquisition will allow the company to enter the security monitoring system solutions market, diversifying its business and mitigating risks associated with its primary product line[35]. - The target company has a strong financial position and is expected to improve the company's profitability and core competitiveness post-acquisition[37]. - The company is increasing its R&D investment in SMD products, focusing on the development of new products such as the SWD1612 series and SMD1210 devices[33]. Shareholder Commitments and Stock Management - The company plans to stabilize its stock price by implementing a buyback plan if the closing price falls below the audited net asset value per share for 20 consecutive trading days[40]. - The controlling shareholder is obligated to increase their holdings by no more than RMB 6 million, which should not exceed 1% of the total share capital[40]. - The controlling shareholder's commitment to increase holdings will be announced within two trading days after the obligation is fulfilled[41]. - The company will not participate in cash dividends during the year of issuance, and the cash dividends will belong to the issuer[42]. - The company must announce any reduction in shares three trading days in advance, detailing the reasons and future plans[43]. - The controlling shareholder's reduction of shares must not affect the actual control over the company[44]. - The company has committed to repurchase shares if the stock price falls below the net asset value per share for 20 consecutive trading days[49]. - The company ensures that its stock price will not fall below the net asset value per share within three years post-IPO[48]. - The company will implement measures to stabilize its stock price if necessary[49].

Financial Performance - Total operating revenue for the reporting period was ¥89,374,907.92, a decrease of 17.60% year-on-year[7]. - Net profit attributable to shareholders was ¥3,107,745.48, down 73.92% compared to the same period last year[7]. - The basic earnings per share decreased by 71.43% to ¥0.02[7]. - The company reported a significant decrease in operating revenue and profit due to the global economic downturn and sluggish market conditions, impacting demand in key application areas such as smartphones and tablets[29]. - The company reported a total comprehensive income of CNY 3,107,745.48 for the quarter, compared to CNY 11,914,801.02 in the previous year[59]. - The total operating revenue for the year-to-date period was CNY 263,197,902.87, down from CNY 305,525,405.75 in the previous year[65]. - The net profit for the current period is CNY 15,636,650.98, down 55.4% from CNY 35,077,776.96 in the previous period[67]. - The total profit for the current period is CNY 15,943,895.41, a decline of 58.7% from CNY 38,588,960.96 in the previous period[66]. Cash Flow and Assets - The company reported a net cash flow from operating activities of ¥40,458,534.15, an increase of 55.85% year-to-date[7]. - As of the end of the reporting period, cash and cash equivalents amounted to RMB 157.92 million, an increase of 143.09% compared to the beginning of the year, primarily due to the maturity of bank wealth management products and the recovery of principal[24]. - The net cash flow from operating activities is CNY 40,458,893.65, an increase of 56.0% compared to CNY 25,960,432.05 in the previous period[73]. - The total cash inflow from investment activities is CNY 201,345,590.56, while the cash outflow is CNY 137,677,710.12, resulting in a net cash flow from investment activities of CNY 63,667,880.44[77]. - The total cash inflow from financing activities is CNY 254,969,032.29, with cash outflow totaling CNY 336,914,870.45, leading to a net cash flow from financing activities of -CNY 81,945,838.16[78]. - The cash and cash equivalents at the end of the period amount to CNY 74,853,746.46, a decrease from CNY 204,471,314.09 at the end of the previous period[78]. Liabilities and Equity - The company’s long-term borrowings decreased by 30.24% compared to the beginning of the year, mainly due to the repayment of some long-term loans[25]. - Total liabilities rose to CNY 227,879,180.52 from CNY 211,232,062.75, reflecting an increase of about 7.9%[51]. - The company's equity attributable to shareholders increased to CNY 654,785,971.36 from CNY 650,928,514.38, a growth of approximately 0.6%[52]. - The company's total liabilities increased to CNY 220,075,427.04 from CNY 190,036,314.12, indicating a rise in financial obligations[58]. Investment and R&D - The company is increasing its investment in research and development to maintain technological leadership and adapt to market demands[16]. - The company focused on the research, production, and sales of surface mount piezoelectric quartz crystal components, increasing R&D efforts for new product models[31]. - The company plans to enhance cost management and prepare for new product development to meet future market demands[31]. - The expansion project for SMD2016 piezoelectric quartz crystals has reached 100.51% of its planned investment, totaling CNY 166.58 million[41]. - The R&D center construction project has reached a utilization rate of 100.68%, with an investment of CNY 41.76 million[41]. Risk Management - The company faces risks from significant fluctuations in operating performance due to global economic downturns affecting demand in key markets[10]. - The company is addressing the risk of declining product prices by enhancing product structure and introducing higher value-added new products[11]. - The company is diversifying its product offerings beyond the main product line of SMD quartz crystal resonators to mitigate risks associated with a single business focus[12]. - The management is addressing potential risks and challenges as outlined in the risk factors section of the report[32]. Shareholder Commitments and Governance - The company is committed to fulfilling its shareholding commitments, with normal performance reported for all commitments[34]. - The controlling shareholder has committed to not participating in cash dividends if they fail to fulfill their shareholding increase promises, ensuring investor protection[35]. - The company is actively managing its shareholding structure to align with regulatory requirements and investor interests[36]. - The controlling shareholder's commitments are designed to protect the company's operational stability and governance[36]. Supplier and Customer Relationships - The top five suppliers accounted for 70.74% of total purchases, with the largest supplier contributing 32.44% at ¥51,202,412.19[30]. - The top five customers represented 41.64% of total sales, with the largest customer contributing 10.52% at ¥27,698,554.69[30]. - There were no significant changes in the top five suppliers and customers, indicating stable supplier and customer relationships[30].

Financial Performance - Total revenue for the first half of 2016 was CNY 173,822,994.95, a decrease of 11.79% compared to CNY 197,063,199.77 in the same period last year[18]. - Net profit attributable to ordinary shareholders was CNY 12,528,905.50, down 45.91% from CNY 23,162,975.93 year-on-year[18]. - Net profit after deducting non-recurring gains and losses was CNY 10,662,078.00, a decline of 53.71% compared to CNY 23,031,989.47 in the previous year[18]. - Basic earnings per share decreased by 58.82% to CNY 0.07 from CNY 0.17 year-on-year[18]. - The total profit for the period was CNY 12.30 million, down 55.01% year-on-year, while net profit was CNY 12.53 million, a decline of 45.91%[33]. - The company's operating income decreased by 22.96% to CNY 140,577,124.89, while the operating cost decreased by 18.76% to CNY 103,412,405.29, resulting in a gross margin of 26.44%, down 3.81 percentage points year-on-year[41]. - The gross margin for the main business decreased to 22.55%, a decline of 6.03 percentage points, attributed to the overall economic downturn and reduced demand in key markets[42]. - The company reported a total cash outflow from financing activities of CNY 204,295,141.04, which is higher than CNY 189,738,622.84 in the previous period, indicating increased financial obligations[128]. Cash Flow and Liquidity - Operating cash flow net amount increased by 34.08% to CNY 37,291,400.58 from CNY 27,812,293.59 in the same period last year[18]. - The net cash flow per share from operating activities was CNY 0.2216, an increase of 34.06% compared to CNY 0.1653 in the previous year[18]. - Cash flow from operating activities rose by 34.08% to CNY 37,291,400.58, primarily due to improved collection efforts on receivables[1]. - The company reported a significant increase in cash and cash equivalents, which rose by 171.40% to CNY 176,307,639.99, mainly due to the maturity of bank wealth management products[1]. - The total cash and cash equivalents at the end of the period reached CNY 100,576,552.86, up from CNY 62,722,152.23 at the beginning of the period, marking an increase of approximately 60%[128]. - Cash received from sales of goods and services was CNY 148,610,988.34, reflecting a decrease compared to CNY 191,311,271.55 in the previous period[130]. - The company paid CNY 99,294,983.33 for purchases of goods and services, down from CNY 133,743,057.82 in the previous period, indicating improved cost management[130]. Investment and R&D - Research and development expenses amounted to CNY 12.11 million, an increase of 3.63% year-on-year, representing 6.97% of total revenue[34]. - Research and development investment increased by 3.63% to CNY 12,106,938.91, reflecting the company's commitment to innovation despite market challenges[1]. - The company is focusing on developing new products, including oscillators, to diversify its product offerings and create new profit growth points[27]. - The company plans to enhance market research capabilities and strengthen trend analysis to mitigate risks associated with economic downturns and market demand shifts[24]. Equity and Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company’s total equity attributable to ordinary shareholders was CNY 651,678,225.88, a slight increase of 0.12% from CNY 650,928,514.38 at the end of the previous year[18]. - The cash dividend distribution plan for the year 2015 was approved, with a total cash dividend of 11,779,194 RMB distributed to shareholders, amounting to 0.7 RMB per share[65]. - The company did not propose any cash dividend distribution plan for the reporting period despite having positive undistributed profits[66]. - The total number of shareholders at the end of the reporting period is 18,754[102]. - The largest shareholder, Xinjiang Huilun Equity Investment Partnership, holds 38.25% of shares, totaling 64,359,042 shares[102]. - The second largest shareholder, Shijinj International Limited, holds 10.50% of shares, totaling 17,667,188 shares[102]. Risks and Challenges - The company faces risks from reliance on a few foreign suppliers for key raw materials, with over 90% of its base material procurement coming from three Japanese suppliers[28]. - The company faces risks due to the global economic downturn, which has led to a slowdown in growth in key downstream application areas such as smartphones and tablets[46]. - The company reported a foreign exchange loss of CNY 2.07 million due to significant fluctuations in major international currency exchange rates during the first half of 2016[29]. Corporate Governance and Compliance - The half-year financial report has not been audited[93]. - There were no significant litigation or arbitration matters during the reporting period[69]. - The company did not acquire or sell any assets during the reporting period[70][71]. - The company did not implement any stock incentive plans during the reporting period[73]. - The company has maintained compliance with all commitments made during the reporting period[88]. Accounting Policies and Financial Reporting - The financial report was approved on August 25, 2016, ensuring compliance with accounting standards[148]. - The accounting period for the financial information is from January 1, 2016, to June 30, 2016[154]. - The company reports its financial information in Renminbi (RMB) as its functional currency[156]. - The company recognizes minority interests and losses separately in the consolidated profit and loss statement and balance sheet[162].

Product Development and Diversification - The company's main product, the piezoelectric quartz crystal resonator, is widely used across various sectors, including communication electronics and automotive electronics, but faces risks of price declines due to increased competition and technological advancements [6]. - The company is diversifying its product offerings by developing new devices such as oscillators to mitigate risks associated with its single main business focus on SMD quartz crystal resonators [8]. - The company is focusing on developing new products such as temperature-compensated crystal oscillators (TCXO) and quartz crystal oscillators (SPXO) to diversify its product offerings and reduce business risks [36]. - The company is closely monitoring international technological developments to adjust its product structure and introduce higher value-added products to counteract price declines [6]. - The company plans to expand its market presence by enhancing its research and development capabilities and introducing higher value-added products [36]. - The company is diversifying its product range beyond SMD quartz crystal resonators to mitigate risks associated with a single business focus [94]. Financial Performance - The company reported a profit distribution plan, proposing a cash dividend of 0.7 RMB per 10 shares, based on a total of 168,274,200 shares [12]. - The company's operating revenue for 2015 was CNY 416,417,144.33, representing a 3.03% increase compared to CNY 404,157,127.40 in 2014 [25]. - The net profit attributable to shareholders for 2015 was CNY 41,367,679.73, a decrease of 18.85% from CNY 50,975,757.58 in 2014 [25]. - The net cash flow from operating activities decreased by 47.79% to CNY 61,540,246.27 in 2015 from CNY 117,867,337.93 in 2014 [25]. - The company reported a basic earnings per share of CNY 0.270 for 2015, down 32.50% from CNY 0.400 in 2014 [25]. - The weighted average return on equity decreased to 7.84% in 2015 from 15.11% in 2014, indicating a decline in profitability [25]. - The total net assets attributable to shareholders increased by 79.39% to CNY 650,928,514.38 at the end of 2015 from CNY 362,866,434.65 at the end of 2014 [25]. - The company achieved a net profit of 40,786,629.71 CNY, with a distributable profit of 198,668,826.24 CNY for the year [101]. - The cash dividend distribution plan is to pay 0.7 CNY per 10 shares, totaling 11,779,194 CNY, which accounts for 100% of the profit distribution [101]. Risk Management - The company faces foreign exchange risks due to high export ratios and reliance on imports for raw materials, primarily settled in USD and JPY, which could impact profitability if the RMB appreciates [9]. - The company is committed to strengthening financial management and utilizing hedging tools to manage exchange rate risks effectively [9]. - The company acknowledges management risks associated with rapid growth and is enhancing training for management personnel to adapt to the increasing complexity of operations [11]. - The company faces risks such as price declines in products, with potential impacts on gross margins and profitability due to increased competition [92]. Research and Development - The company emphasizes the importance of maintaining advanced technology to sustain high profit margins and plans to increase R&D investment and enhance market research to align with market demands [10]. - The company plans to deepen industry-academia-research cooperation to enhance its continuous innovation capabilities [10]. - Research and development expenses amounted to CNY 24.92 million, representing 5.99% of operating revenue, with a focus on miniaturization and high precision [48]. - The company has established a strong R&D team and advanced production systems, enhancing its core competitiveness in chip design and processing [39]. Corporate Governance and Shareholder Relations - The company has commitments regarding share transfer restrictions, ensuring no transfer of shares for 36 months post-IPO [107]. - The company is obligated to stabilize its stock price if the closing price falls below the latest audited net asset value per share for 20 consecutive trading days within three years post-IPO [107]. - The controlling shareholder must announce a buyback plan if the stock price conditions are met, with a maximum buyback amount of CNY 6 million per transaction [107]. - The company has committed to ensuring the accuracy and completeness of its IPO prospectus, stating that any false records or significant omissions would lead to a buyback of all newly issued shares [109]. - The company has established a commitment to protect investor interests by ensuring no competitive activities occur during its control period [109]. Employee and Management Structure - The total number of employees in the company is 797, with 514 in production, 29 in sales, 149 in technology, 10 in finance, 37 in administration, and 58 in other roles [180]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounts to 129.9 million CNY [179]. - The company has 3 PhD holders, 5 master's degree holders, and 76 bachelor's degree holders among its employees [181]. - The company emphasizes employee training, planning to enhance onboarding and skills training in 2016 [183]. - The company maintains a governance structure compliant with relevant laws and regulations, ensuring independent operations from its controlling shareholder [188]. Market Position and Sales - The company’s core product, SMD quartz crystal resonators, continues to dominate its sales, with a focus on miniaturized products [35]. - SMD product sales revenue reached CNY 361.60 million, accounting for 86.84% of total operating revenue, up from 82.83% the previous year [46]. - The company experienced a 47.21% year-on-year increase in domestic sales revenue, while overseas sales revenue dropped to 89.13% of total revenue [47]. - The sales volume of self-manufactured electronic components reached 74,031.6 million units, a slight increase of 0.62% year-on-year [56].

Financial Performance - Total revenue for Q1 2016 was ¥80,028,107.47, a decrease of 16.45% compared to ¥95,790,348.24 in the same period last year[8]. - Net profit attributable to shareholders was ¥4,180,730.35, down 53.34% from ¥8,960,307.14 year-on-year[8]. - Net profit after deducting non-recurring gains and losses was ¥3,793,669.27, a decline of 57.35% compared to ¥8,894,813.91 in the previous year[8]. - Basic and diluted earnings per share were both ¥0.02, down 71.43% from ¥0.07 in the previous year[8]. - The company's revenue for the reporting period was RMB 80.03 million, a decrease of 16.45% compared to the same period last year[31]. - The net profit attributable to shareholders was RMB 4.18 million, down 53.34% year-on-year, primarily due to the global economic downturn and reduced customer demand[31]. - Operating profit for the current period is 4,909,073.47, down 53.3% from 10,506,213.50 in the previous period[59]. - Net profit decreased to 4,180,730.35 from 8,960,307.14, reflecting a decline of approximately 53.3%[60]. Cash Flow and Assets - Operating cash flow for the period was ¥2,895,328.89, representing a 64.25% decrease from ¥8,099,122.36 in the same quarter last year[8]. - Cash and cash equivalents at the end of the reporting period amounted to RMB 130.46 million, an increase of 100.83% from the beginning of the year, mainly due to the maturity of bank wealth management products[22]. - The net cash flow from operating activities decreased by 64.25%, mainly due to a reduction in cash received related to operating activities[29]. - The total current assets decreased from CNY 439,822,494.73 to CNY 364,445,784.98, a decline of approximately 17.1%[50]. - Cash and cash equivalents increased significantly from CNY 64,962,007.56 to CNY 130,461,440.07, representing a growth of about 100.0%[50]. - The net cash flow from operating activities was -265,878.15 RMB, a decrease compared to 10,019,930.69 RMB in the previous period[69]. - The ending balance of cash and cash equivalents was 105,539,670.84 RMB, up from 33,225,009.20 RMB in the previous period[72]. Investment and R&D - The company plans to diversify its product offerings beyond the main product of SMD quartz crystal resonators to mitigate risks associated with a single business line[12]. - The company is increasing R&D investment and enhancing cooperation with academic institutions to maintain technological leadership and innovation capabilities[15]. - The company plans to increase R&D investment in SMD products and improve the construction of the R&D center for new product development[32]. - The total amount of raised funds is CNY 246.69 million, with CNY 192.26 million already invested in projects[42]. - The cumulative amount of raised funds invested is CNY 192.26 million, representing 77.96% of the total raised funds[42]. - The piezoelectric quartz crystal project has a cumulative investment of CNY 130.94 million, achieving 79.08% of the planned investment[42]. - The SMD2016 expansion project has a cumulative investment of CNY 3.70 million, achieving 94.12% of the planned investment[42]. - The R&D center construction project has a cumulative investment of CNY 2.43 million, achieving 58.13% of the planned investment[42]. Shareholder and Equity Information - The top shareholder, Xinjiang Huilun Equity Investment Partnership, holds 38.25% of the shares, with a total of 64,359,042 shares pledged[18]. - The company has committed to not transferring or entrusting the management of its publicly issued shares for 36 months from the date of its initial public offering[35]. - The company will not reduce its holdings of shares within two years after the lock-up period, and any reduction must not be below the issuance price[35]. - The controlling shareholder is obligated to increase their holdings if the stock price falls below the audited net asset value per share for 20 consecutive trading days[36]. - The maximum amount for each increase in shareholding by the controlling shareholder is capped at RMB 6 million, not exceeding 1% of the company's total equity[36]. - The company has established a mechanism to stabilize stock prices if certain conditions are met, including a significant drop in share price[36]. - The company will publicly apologize if the controlling shareholder fails to fulfill the commitment regarding shareholding increases[36]. - The company reported a total shareholding of 20% that may be reduced after the lock-up period, with adjustments for any stock dividends or capital increases[37]. Compliance and Governance - The company guarantees the accuracy and completeness of its IPO prospectus, committing to repurchase shares if any false statements or omissions are found[38]. - The company has no current or potential competition with its subsidiaries, ensuring no conflicts of interest during its control period[38]. - The company will not engage in any competing business activities during its control period, either directly or indirectly[38]. - The company has a commitment to maintain transparency and compliance with legal issuance conditions[38]. - The company has established a clear communication protocol for any share reduction activities to ensure shareholder awareness[38]. Liabilities and Equity Changes - Total liabilities decreased from CNY 211,232,062.75 to CNY 133,304,710.34, a reduction of approximately 37.0%[52]. - Total equity increased from CNY 650,928,514.38 to CNY 655,109,244.73, a growth of about 0.3%[53]. - The company reported a total asset decrease from CNY 862,160,577.13 to CNY 788,413,955.07, a decline of approximately 8.5%[53]. - The company’s retained earnings increased from CNY 202,108,306.98 to CNY 206,289,037.33, reflecting a growth of about 2.0%[53].