Financial Performance - The company reported a total revenue of RMB 500 million for the first half of 2022, representing a year-on-year increase of 20%[20] - The net profit attributable to shareholders was RMB 100 million, up 15% compared to the same period last year[20] - The company's operating revenue for the reporting period was ¥1,090,570,708.78, a decrease of 14.46% compared to the same period last year[28] - Net profit attributable to shareholders increased by 97.54% to ¥73,971,296.88, while the net profit after deducting non-recurring gains and losses surged by 599.65% to ¥63,560,744.49[28] - The company's revenue for the first half of 2022 was approximately ¥1.09 billion, a decrease of 14.46% compared to ¥1.27 billion in the same period last year[51] - The company reported a profit margin of 15.54% in the electronics sector, with a year-on-year revenue decrease of 14.46% and a cost decrease of 20.67%[53] Research and Development - The company plans to invest RMB 50 million in R&D for new product development in the next fiscal year[20] - The company’s R&D investment increased by 52.70% to approximately ¥68.94 million, driven by the development of new products[51] - The company is actively implementing a "Five New" R&D strategy focusing on new products, technologies, devices, processes, and systems to lead industry development[44] - The company has established a mature R&D model, focusing on both technological pre-research and product development to shorten product development cycles[39] Market Strategy - The company has outlined a market expansion strategy targeting Southeast Asia, aiming for a 25% increase in market share by 2023[20] - User data indicates a growth of 30% in active users, reaching 1 million by the end of June 2022[20] - The company expects a revenue growth forecast of 15% for the second half of 2022, driven by new product launches[20] Financial Position - The company has maintained a strong cash position with cash and cash equivalents totaling RMB 200 million as of June 30, 2022[20] - The company's cash and cash equivalents decreased by 50.30% to approximately ¥668.89 million, attributed to the use of raised funds for investments[51] - The company's total assets included cash and cash equivalents of ¥668,889,501.13, which accounted for 20.06% of total assets, down from 39.07% in the previous year[58] Risk Management - The management has identified key risks including market competition and supply chain disruptions, with strategies in place to mitigate these risks[20] - The company faces risks from macroeconomic uncertainties, including the ongoing COVID-19 pandemic and international exchange rate fluctuations, which may impact order volumes and profit margins[87] - The company is exposed to intensified market competition, necessitating continuous investment in technology R&D and market expansion to maintain its competitive edge[87] - The company has a high customer concentration risk, with the top five customers accounting for a significant portion of revenue, which could affect performance if orders decrease[88] Corporate Governance - The company has not experienced any changes in its board of directors, supervisors, or senior management during the reporting period[102] - The company is implementing a stock incentive plan initiated in October 2020, which has been approved by the board and shareholders[104][105] - The company has not reported any adverse feedback regarding its stock incentive plan from stakeholders during the public notice period[105] Investment and Capital Management - The company plans to permanently supplement working capital with CNY 53,872.69 million of surplus raised funds[68] - The total investment in the "Intelligent Acoustic Products Production Project" is CNY 3,533.19 million, achieving expected benefits[73] - The company has completed the cancellation of a special account for raised funds, transferring CNY 38.745 million back to its basic account[68] Compliance and Social Responsibility - The company has not faced any administrative penalties for environmental issues during the reporting period and adheres strictly to relevant laws and regulations[113] - The company emphasizes social responsibility, ensuring timely payment to suppliers and compliance with labor laws, while also focusing on employee training and safety[114] Shareholder Relations - The company held a total of three investor communication events during the reporting period, with participation rates of 48.70% and 48.73% for the respective shareholder meetings[95][96] - The company plans not to distribute cash dividends or bonus shares for the half-year period[103]

Financial Performance - The company's revenue for Q1 2022 was ¥452,184,138.89, a decrease of 14.11% compared to ¥526,497,531.87 in the same period last year[4] - Net profit attributable to shareholders was ¥19,472,138.14, a significant increase of 226.77% from a loss of ¥15,359,951.81 in the previous year[4] - Basic earnings per share rose to ¥0.06, compared to a loss of ¥0.06 per share in the same quarter last year, marking a 200% increase[4] - Total operating revenue for the first quarter was CNY 452,184,138.89, a decrease of 14.1% compared to CNY 526,497,531.87 in the previous year[28] - Net profit for the period reached CNY 19,472,138.14, compared to a net loss of CNY 15,379,671.40 in the same period last year[31] - The company reported a comprehensive income total of CNY 19,825,621.37, contrasting with a loss of CNY 12,660,277.15 in the previous year[34] Cash Flow and Liquidity - The net cash flow from operating activities improved to -¥57,257,281.36, a 47.69% reduction in loss compared to -¥109,448,498.17 in Q1 2021[4] - The net cash flow from operating activities was -57,257,281.36 CNY, an improvement from -109,448,498.17 CNY in the previous period, indicating a reduction in cash outflow[38] - The cash flow from operating activities totaled 660,187,858.45 CNY, down from 948,547,610.17 CNY in the previous period, reflecting a decline in operational cash generation[38] - The company experienced a cash outflow of 717,445,139.81 CNY from operating activities, a decrease from 1,057,996,108.34 CNY in the previous period, indicating improved cash management[38] - The cash and cash equivalents at the end of the period totaled 615,014,827.84 CNY, down from 729,960,554.48 CNY in the previous period, showing a decline in liquidity[38] Assets and Liabilities - Total assets decreased by 7.55% to ¥3,184,755,829.94 from ¥3,444,930,406.66 at the end of the previous year[4] - The total current assets amount to RMB 2,357,454,980.59, down from RMB 2,676,741,869.52[22] - The total liabilities decreased to CNY 901,733,868.22 from CNY 1,181,734,066.31, reflecting improved financial health[28] - Short-term borrowings decreased from RMB 381,082,162.98 to RMB 245,631,670.42[22] - Accounts payable decreased from RMB 708,042,577.84 to RMB 551,399,154.51[22] Shareholder Equity - The company's equity attributable to shareholders increased slightly by 0.88% to ¥2,283,021,961.72 from ¥2,263,196,340.35 at the end of the previous year[4] - Owner's equity increased to CNY 2,283,021,961.72 from CNY 2,263,196,340.35, showing a positive trend in shareholder value[28] Income and Expenses - The company reported a significant increase in other income, which rose to ¥6,058,758.95, a 3363.35% increase from ¥174,939.38 in the previous year[10] - Investment income surged to ¥5,088,698.90, an increase of 1088.72% compared to a loss of ¥514,673.32 in Q1 2021[10] - The company experienced a 39.86% reduction in selling expenses, which amounted to ¥3,414,660.12 compared to ¥5,677,440.15 in the same period last year[10] - Total operating costs amounted to CNY 442,723,588.09, down 18.6% from CNY 543,825,172.87 year-on-year[28] - Research and development expenses increased to CNY 21,627,700.99, up from CNY 20,241,257.29 year-on-year, indicating a focus on innovation[28] Investment Activities - The total cash inflow from investment activities was 116,657,721.62 CNY, down from 613,778,921.25 CNY in the previous period, reflecting a significant decrease in investment recovery[38] - The net cash flow from investment activities was -547,504,002.35 CNY, compared to a positive 164,221,023.22 CNY in the previous period, highlighting a substantial cash outflow for investments[38] - The company reported investment income of CNY 5,088,698.90, a significant recovery from a loss of CNY 514,673.32 in the previous year[31] - The company reported a cash inflow of 115,000,000.00 CNY from investment recoveries, significantly lower than 610,000,000.00 CNY in the previous period, indicating reduced investment returns[38]

Financial Performance - The company's operating revenue for 2021 was approximately ¥2.73 billion, representing a 3.03% increase from ¥2.65 billion in 2020[26]. - Net profit attributable to shareholders decreased by 23.07% to approximately ¥52.50 million from ¥68.25 million in 2020[26]. - The net profit after deducting non-recurring gains and losses fell by 78.32% to approximately ¥5.87 million compared to ¥27.07 million in 2020[26]. - The net cash flow from operating activities was negative at approximately -¥191.94 million, a decline of 294.32% from ¥98.77 million in 2020[26]. - Total assets increased by 30.76% to approximately ¥3.44 billion from ¥2.63 billion at the end of 2020[26]. - Net assets attributable to shareholders rose by 85.66% to approximately ¥2.26 billion from ¥1.22 billion at the end of 2020[26]. - Basic and diluted earnings per share decreased by 26.92% to ¥0.19 from ¥0.26 in 2020[26]. - The weighted average return on net assets was 4.00%, down from 5.68% in 2020[26]. - The gross margin for the electronic industry was 9.57%, down 1.90% from the previous year, reflecting increased costs and market challenges[62]. - The company reported a net profit attributable to shareholders of CNY 52,503,700, a decrease of 23.07% compared to the previous year, primarily due to a decline in gross margin and increased management expenses[57]. Revenue Breakdown - Total revenue for the first quarter was ¥526.50 million, second quarter ¥748.47 million, third quarter ¥822.46 million, and fourth quarter ¥636.29 million[29]. - Domestic revenue increased to CNY 1,173,953,326.51, accounting for 42.94% of total revenue, up 10.32% from the previous year[62]. - Headphone products accounted for 87.61% of total sales, while smart wearable products like smartwatches and smart glasses only contributed approximately 1.24%[46]. - Total sales from the top five customers accounted for 83.71% of the annual sales, with the largest customer contributing 31.79%[71]. - The total procurement amount from the top five suppliers was 530,055,056.05 yuan, representing 32.49% of the total annual procurement[71]. Investment and R&D - The company invested in Suzhou Suoer Electronics Technology Co., Ltd. for the development of core components for bone conduction headphones, targeting overseas markets[43]. - The company invested in Ruiouweier (Shanghai) Intelligent Technology Co., Ltd. to develop AR devices, aiming to serve industrial clients like Honeywell and Siemens[43]. - Research and development expenses rose by CNY 12,940,000, focusing on new products such as AR glasses, bone conduction headphones, and smartwatches[57]. - The R&D investment accounted for 4.29% of operating revenue, up from 3.93% in the previous year[79]. - The number of R&D personnel increased by 38.94% to 446 in 2021, with R&D personnel accounting for 6.76% of the total workforce[79]. - The company has established a strong R&D model, dividing efforts into technology pre-research and product development to shorten product development cycles[46]. Cash Flow and Financing - The net cash flow from operating activities was -191,939,019.97 yuan, a decrease of 294.32% compared to the previous year[80]. - The net cash flow from financing activities increased by 810.63% to 1,076,238,565.30 yuan due to funds raised from issuing shares[83]. - The net increase in cash and cash equivalents was 829,739,651.49 yuan, a significant increase of 1,777.01%[83]. - The company completed a private placement raising CNY 999,100,000, enhancing its operational development platform[57]. - The company plans to utilize unspent raised funds for cash management and financial investments[104]. Market and Competitive Landscape - The global spending on smart wearable devices reached $26.74 billion in 2020, with a year-on-year growth of 13.32%[41]. - The smart wearable device market is projected to reach $35.81 billion by 2022, with a compound annual growth rate (CAGR) of 33.91%[41]. - The company faces risks from macroeconomic uncertainties and exchange rate fluctuations, which may impact order volumes and profit margins[5]. - Increased competition in the consumer electronics industry poses a risk, as larger firms leverage technology and scale advantages to capture market share[133]. - The company has a high customer concentration risk, with significant revenue dependence on major clients like Harman and Skullcandy[133]. Corporate Governance and Management - The company emphasizes strict compliance with information disclosure regulations, ensuring fair access to information for all shareholders[145]. - The company maintains independence from its controlling shareholders in terms of assets, personnel, finance, and operations, with a clear and complete asset ownership structure[146]. - The company has established an independent financial department with a standardized financial accounting system, enabling independent financial decision-making[147]. - The management team is committed to driving growth through strategic initiatives and technological advancements[165]. - The company has a diverse board with members holding advanced degrees and significant industry experience, including independent directors with backgrounds in accounting and engineering[160][162]. Future Outlook and Strategy - The company plans to invest more in R&D and market development in the smart wearable sector, targeting new profit growth points through products like smartwatches and smart glasses[130]. - The company aims to focus on technological innovation, management innovation, and institutional innovation to enhance its competitive edge and explore new profit growth points[129]. - The company plans to expand its market presence through strategic partnerships and potential acquisitions in the coming years[180]. - The company is considering strategic acquisitions to enhance its market position, with a budget of 500 million yuan allocated for potential deals[170]. - The company’s future outlook remains positive, with expectations for continued revenue growth driven by innovation and market expansion[180].

Financial Performance - The company's revenue for Q3 2021 was ¥822,462,823.62, a decrease of 11.49% compared to the same period last year[4] - Net profit attributable to shareholders for Q3 2021 was ¥43,620,408.05, an increase of 9.22% year-on-year[4] - The net profit excluding non-recurring gains and losses for Q3 2021 was ¥38,345,140.08, a significant increase of 124.26% compared to the same period last year[4] - Total operating revenue for the third quarter reached ¥2,097,429,590.28, an increase of 25.6% compared to ¥1,669,279,944.00 in the same period last year[29] - Net profit attributable to the parent company was ¥81,067,287.11, up from ¥56,505,975.05, representing a growth of 43.6% year-over-year[32] - The total comprehensive income for the quarter was ¥86,381,247.57, compared to ¥56,825,422.36, marking a significant increase of 52.2%[34] - The basic and diluted earnings per share were both ¥0.30, an increase from ¥0.21 in the previous year[34] Assets and Liabilities - The total assets at the end of Q3 2021 were ¥2,688,508,221.37, reflecting a growth of 2.05% from the end of the previous year[6] - The equity attributable to shareholders increased to ¥1,278,724,662.79, up 4.90% from the end of the previous year[6] - The company's total current assets as of September 30, 2021, amount to ¥1,960,341,062.76, a decrease from ¥2,127,990,803.43 at the end of 2020[19] - The total assets of the company as of September 30, 2021, are ¥2,688,508,221.37, compared to ¥2,634,591,188.07 at the end of 2020[22] - Total liabilities decreased slightly to ¥1,407,789,210.99 from ¥1,415,584,625.26, a reduction of approximately 0.5%[28] - The company's total equity increased to ¥1,280,719,010.38, compared to ¥1,219,006,562.81, reflecting a growth of 5.0%[28] Cash Flow - The cash flow from operating activities for the year-to-date was negative at -¥265,670,594.28, a decline of 335.49% compared to the previous year[4] - Operating cash inflow for the current period reached ¥2,505,277,570.64, a significant increase from ¥1,496,265,144.87 in the previous period[36] - Cash outflow from operating activities totaled ¥2,770,948,164.92, compared to ¥1,557,270,621.30 in the prior period, resulting in a net cash flow from operating activities of -¥265,670,594.28[39] - Investment cash inflow amounted to ¥1,052,567,158.12, up from ¥776,665,552.69 year-over-year, while investment cash outflow was ¥1,111,264,193.83, leading to a net cash flow from investing activities of -¥58,697,035.71[39] - Financing cash inflow was recorded at ¥631,957,429.98, a rise from ¥183,756,750.00, with cash outflow totaling ¥385,094,202.95, resulting in a net cash flow from financing activities of ¥246,863,227.03[39] - The total cash and cash equivalents at the end of the period decreased to ¥446,051,042.32 from ¥563,522,075.38 in the previous period[42] Shareholder Information - The total number of common shareholders at the end of the reporting period is 19,744[14] - The largest shareholder, Dongguan Wenyao Investment Co., Ltd., holds 39.60% of shares, totaling 105,600,000 shares[14] Operational Changes - The company reported a significant increase in prepayments, up 1016.75% due to increased deposits for new product development and suppliers[8] - The company’s short-term borrowings increased by 83.29% to ¥48,157.83 million, attributed to the expansion of operational scale[11] - The company received government subsidies related to asset support, contributing to a deferred income increase of 1080.98%[11] - The company has a short-term loan of ¥481,578,286.18 as of September 30, 2021, compared to ¥262,745,678.35 at the end of 2020[22] - The company has received approval from the China Securities Regulatory Commission for the issuance of shares to specific investors[18] - The company plans to issue up to 80,006,400 shares to specific investors, raising a total of no more than ¥150,000.00 million for various projects[18] Research and Development - Research and development expenses for the quarter were ¥71,197,624.62, up from ¥67,781,265.48, indicating a year-over-year increase of 5.9%[29] Tax and Employee Costs - Employee compensation payments rose to ¥358,613,238.33 from ¥266,652,771.52, indicating increased workforce costs[39] - Tax payments increased to ¥58,016,293.08 from ¥44,353,438.61, reflecting higher tax obligations[39] Market and Strategic Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[34] - The report does not provide specific guidance on future performance or strategic initiatives[51] - The company has not reported any significant new product developments or market expansions in this quarter[51] Miscellaneous - The third quarter report for 2021 was not audited, indicating preliminary financial results[49] - The company adopted new leasing standards effective January 1, 2021, impacting the recognition of lease liabilities and right-of-use assets[48]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥1,274,966,766.66, representing a 72.28% increase compared to ¥740,052,567.14 in the same period last year[26] - The net profit attributable to shareholders of the listed company was ¥37,446,879.06, a significant increase of 126.00% from ¥16,569,459.98 in the previous year[26] - The basic earnings per share rose to ¥0.14, reflecting a 133.33% increase compared to ¥0.06 in the same period last year[26] - The net cash flow from operating activities was negative at -¥251,541,895.80, worsening by 160.19% from -¥96,677,054.76 in the previous year[26] - Total assets at the end of the reporting period were ¥2,598,172,133.82, a slight decrease of 1.38% from ¥2,634,591,188.07 at the end of the previous year[26] - The net assets attributable to shareholders of the listed company increased by 1.17% to ¥1,233,267,501.73 from ¥1,219,006,562.81 at the end of the previous year[26] - The company reported a total of ¥28,362,276.41 in non-recurring gains and losses during the reporting period[33] - The weighted average return on net assets was 3.03%, an increase of 1.65% compared to 1.38% in the previous year[26] - The company faced a decrease in net profit after deducting non-recurring gains and losses, which was ¥9,084,602.65, down 11.09% from ¥10,218,006.71 in the previous year[26] Revenue Breakdown - Revenue from headphone products reached 1,144.48 million yuan, up 65.96% year-on-year, with TWS headphones contributing 650.75 million yuan, a growth of 40.38%[37] - The company's revenue for the reporting period reached ¥1,274,966,766.66, representing a 72.28% increase compared to ¥740,052,567.14 in the same period last year[47] Research and Development - The company's R&D investment increased by 17.59% to ¥45,148,722.77, up from ¥38,396,600.40, reflecting a commitment to innovation[47] - The company is actively developing new products including bone conduction headphones, smartwatches, and smart glasses, expected to be mass-produced in the second half of 2021[37] - The company is actively investing in R&D for new technologies, with an allocation of 20 million yuan for the development of innovative solutions in the upcoming year[125] Market Trends - The global smartphone user sales volume is projected to reach 1.5 billion units in 2021, a year-on-year increase of 11.4%[40] - The global smart speaker market is expected to grow by 21% in 2021, with shipments reaching 16.3 million units[40] - Spending on wearable devices reached $26.745 billion in 2020, with a projected compound annual growth rate of 33.91% through 2022[40] Operational Efficiency - The company's production base in Jiangxi has gradually commenced operations, supporting cost reduction and efficiency improvement[37] - The inventory increased to ¥667,492,221.16, accounting for 25.69% of total assets, up from 19.47% the previous year, indicating expanded production scale[52] - The company has completed a three-base layout in Dongguan, Vietnam, and Jiangxi, enhancing its production capacity and operational efficiency[43] Financial Management - The cash flow from operating activities showed a net outflow of ¥251,541,895.80, which is a 160.19% increase in outflow compared to the previous year[47] - The financial expenses surged by 490.98% to ¥12,010,824.07, primarily due to foreign exchange rate fluctuations[47] - The net increase in cash and cash equivalents was -¥73,318,729.80, an improvement of 75.48% compared to -¥299,012,725.69 in the previous year[47] Strategic Partnerships and Collaborations - The company has established strategic partnerships with several renowned institutions, including a collaboration with the Chinese Academy of Sciences for developing robust adaptive mixed active noise reduction technology[43] - The company has a strong customer base, having entered the supplier lists of numerous well-known domestic and international enterprises, which supports revenue growth[43] Risk Factors - The company faces risks from the COVID-19 pandemic, which has led to significant fluctuations in overseas markets, potentially impacting overall performance[91] - A large portion of the company's revenue comes from overseas, particularly from the US and Europe, making it vulnerable to exchange rate fluctuations, especially if the RMB appreciates[91] - The company is exposed to risks related to the supply and price volatility of raw materials, which could adversely affect profitability if prices rise significantly[91] - The concentration of sales to the top five customers is high, and any reduction in orders or price cuts from these clients could negatively impact the company's performance[91] Corporate Social Responsibility - The company has maintained a commitment to social responsibility, ensuring timely payment of employee salaries and compliance with labor laws[111] - The company has actively engaged in pandemic prevention measures, ensuring all employees follow government guidelines and receive vaccinations[111] - The company has implemented a comprehensive training program to enhance employee skills, including onboarding and job-specific training[111] Future Outlook - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[125] - Market expansion efforts include entering two new international markets, aiming for a 10% increase in global market share by the end of the next fiscal year[125] - The company has outlined a merger and acquisition strategy, targeting complementary businesses to enhance its product offerings and market presence[125] Transparency and Compliance - The company has committed to transparency in its financial disclosures, ensuring no misleading statements or omissions in its IPO prospectus[129] - The company has established measures to ensure that if the controlling shareholder fails to fulfill commitments, it will be liable for compensation to the company or its investors[171] - The company will correct any unfulfilled commitments within the timeframe required by regulatory authorities, or make timely legal, reasonable, and effective supplementary or alternative commitments[168]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥1,274,966,766.66, representing a 72.28% increase compared to ¥740,052,567.14 in the same period last year[26]. - The net profit attributable to shareholders of the listed company was ¥37,446,879.06, a significant increase of 126.00% from ¥16,569,459.98 in the previous year[26]. - The net profit after deducting non-recurring gains and losses was ¥9,084,602.65, which is a decrease of 11.09% compared to ¥10,218,006.71 in the same period last year[26]. - The basic earnings per share increased to ¥0.14, up 133.33% from ¥0.06 in the previous year[26]. - The total assets at the end of the reporting period were ¥2,598,172,133.82, a slight decrease of 1.38% from ¥2,634,591,188.07 at the end of the previous year[26]. - The net assets attributable to shareholders of the listed company increased to ¥1,233,267,501.73, reflecting a growth of 1.17% from ¥1,219,006,562.81 at the end of the previous year[26]. - The net cash flow from operating activities was negative at -¥251,541,895.80, worsening by 160.19% compared to -¥96,677,054.76 in the same period last year[26]. - The weighted average return on net assets was 3.03%, an increase of 1.65% from 1.38% in the previous year[26]. - The company reported a total of ¥28,362,276.41 in non-recurring gains and losses during the reporting period[33]. Revenue Breakdown - Revenue from headphone products reached 1,144.48 million yuan, up 65.96% year-on-year, with TWS headphones contributing 650.75 million yuan, a growth of 40.38%[37]. - The company's operating revenue for the reporting period reached ¥1,274,966,766.66, representing a year-on-year increase of 72.28% due to market expansion and new business initiatives[47]. - Operating costs amounted to ¥1,161,108,851.76, reflecting an increase of 80.69%, which corresponds to the rise in revenue[47]. Research and Development - Research and development expenses increased by 17.59% to ¥45,148,722.77, indicating the company's commitment to enhancing its R&D capabilities[47]. - The company is actively developing new products including bone conduction headphones, smartwatches, and smart glasses, expected to achieve mass production in the second half of 2021[37]. - The company is investing heavily in R&D, allocating 10% of its revenue to develop new technologies and enhance existing products[181]. Market Trends and Projections - The global smartphone sales volume is projected to reach 1.5 billion units in 2021, a year-on-year increase of 11.4%[40]. - The global smart speaker market is expected to grow by 21% in 2021, with shipments reaching 16.3 million units[40]. - Spending on wearable devices reached $26.745 billion in 2020, with a projected compound annual growth rate of 33.91% by 2022[40]. - The smart glasses market is expected to grow from $4.651 billion in 2019 to $15.788 billion by 2027, with a compound annual growth rate of 17.20%[40]. - The company provided a positive outlook for the second half of 2021, projecting a revenue growth of 20% to 30% based on current market trends and user acquisition strategies[181]. Operational Challenges - The company's gross profit margin declined due to factors such as changes in customer structure, product structure, and fluctuations in the US dollar exchange rate[37]. - The company faces risks from the COVID-19 pandemic, which has led to significant fluctuations in overseas markets, potentially impacting overall performance[88]. - A large portion of the company's revenue comes from overseas, particularly in the US and Europe, making it vulnerable to exchange rate fluctuations, especially if the RMB appreciates[88]. - The company is exposed to risks related to raw material supply and price volatility, which could adversely affect profitability if market prices rise significantly[88]. - The concentration of sales to the top five customers is high, and any reduction in orders or price cuts from these clients could negatively impact the company's performance[88]. Corporate Governance and Compliance - The company has not encountered any violations in the management of raised funds, ensuring compliance with relevant regulations[77]. - The company has established a fair and reasonable compensation system for employees, enhancing their skills through comprehensive training programs[108]. - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of the initial public offering (IPO)[120]. - The company will implement measures to stabilize its stock price if it falls below the audited net asset value per share for 20 consecutive trading days[123]. - The company has made commitments regarding the accuracy and completeness of its IPO prospectus, ensuring no false records or misleading statements[126]. Future Plans and Investments - The company plans to use 15.12 million of the surplus funds from the "R&D Center Construction Project" to permanently supplement working capital[77]. - The company is considering strategic acquisitions to bolster its technology portfolio, with a budget of up to 500 million yuan for potential targets[181]. - Market expansion plans include entering two new international markets by Q4 2021, aiming for a 5% market share in each region within the first year[181]. Social Responsibility and Environmental Compliance - The company has a commitment to social responsibility, ensuring fair labor practices and timely payment of employee salaries and social insurance[108]. - The company strictly adheres to environmental laws and regulations, with pollution control measures in place for waste gas, wastewater, noise, and solid waste[108]. - The company has implemented a recycling system for cooling water and treats domestic wastewater to meet standards before discharge[108].

Financial Performance - The company's operating revenue for 2020 was approximately ¥2.65 billion, representing a 17.54% increase compared to ¥2.26 billion in 2019[16]. - The net profit attributable to shareholders decreased by 43.48% to approximately ¥68.25 million from ¥120.75 million in 2019[16]. - The net profit after deducting non-recurring gains and losses was approximately ¥27.07 million, a decrease of 77.68% compared to ¥121.29 million in 2019[16]. - The basic earnings per share dropped by 71.74% to ¥0.26 from ¥0.92 in 2019[16]. - The weighted average return on equity decreased to 5.68% from 16.96% in 2019, a decline of 11.28%[16]. - The net cash flow from operating activities increased by 29.90% to approximately ¥98.77 million compared to ¥76.04 million in 2019[16]. - The company reported a net profit of approximately ¥11.74 million in the fourth quarter, showing recovery compared to earlier quarters[18]. - The net profit for 2020 decreased by 43.48% compared to 2019, primarily due to the impact of the COVID-19 pandemic and increased R&D expenses[42]. Assets and Liabilities - The company's total assets increased by 30.63% to approximately ¥2.63 billion at the end of 2020, up from ¥2.02 billion at the end of 2019[16]. - The company's fixed assets increased by 20.15% year-over-year, primarily due to the purchase of machinery and equipment[26]. - Accounts receivable rose by 90.05% compared to the previous year, driven by rapid revenue growth in Q4 2020[26]. - The company's total assets included cash and cash equivalents of ¥518,750,457.80, which represented 19.69% of total assets, down from 27.94% at the beginning of the year[64]. - Accounts receivable increased to ¥771,155,613.00, accounting for 29.27% of total assets, up from 20.12% in the previous year[64]. Revenue Breakdown - Revenue from earphone products was CNY 2337.31 million, up 14.86% from 2019, with TWS earphone revenue soaring by 111.28% to CNY 1526.79 million[41]. - The company's TWS earphones accounted for 65.32% of its earphone business, which itself contributed over 88% to total revenue[25]. - Domestic revenue grew significantly by 87.49% to ¥865,556,820.08, while overseas revenue slightly decreased by 0.44% to ¥1,787,793,288.85[45]. Research and Development - The company has obtained a total of 50 invention patents and 367 utility model patents as of December 31, 2020, with 23 invention patents granted in 2020 alone[30]. - The company is focusing on R&D in TWS technology, smart wearables, and other innovative products to maintain its competitive edge[41]. - The company's R&D expenses increased by 31.36% to ¥104,334,763.69, representing 3.93% of total revenue[55]. Strategic Initiatives - The company is expanding its production capabilities with a three-pronged strategy involving Dongguan, Vietnam, and Jiangxi, enhancing its flexible manufacturing capabilities[30]. - The company has established strategic partnerships with leading brands such as Harman, Huawei, and Panasonic, ensuring a stable customer base[25]. - The company plans to expand its market presence in core areas such as TWS, voice interaction, active noise cancellation, and health monitoring to increase market share[90]. Dividend Policy - The company plans to distribute a cash dividend of ¥1 per 10 shares, based on a total share capital of 266,688,000 shares[4]. - The total distributable profit as of December 31, 2020, is 213,682,409.81 RMB, after accounting for the 2019 dividend distribution of 50,004,000 RMB[109]. - The company is implementing a cash dividend policy, aiming to distribute at least 10% of its distributable profits annually, provided certain conditions are met[99]. Compliance and Governance - The company confirmed that there were no significant violations in the management of raised funds, ensuring compliance with relevant regulations[79]. - The company has ongoing commitments to ensure that its IPO prospectus does not contain false records or misleading statements[121]. - The company is currently fulfilling its commitments regarding employee social insurance and housing fund payments, with ongoing compliance efforts[138]. Market Outlook - The global demand for acoustic products is expected to grow, driven by the rapid development of the consumer electronics industry, with a projected 11.4% year-on-year increase in global smartphone sales, reaching 1.5 billion units in 2021[87]. - The smart speaker market is projected to grow by 21% in 2021, with global shipments expected to reach 163 million units, highlighting the increasing demand for smart home integration[88]. - The wearable device market is anticipated to reach 35.81 billion USD by 2022, with a compound annual growth rate of 33.91%[90]. Shareholder Structure - The company’s shareholding structure includes 74.99% of shares under limited sale conditions and 25.01% under unrestricted conditions[177]. - The largest shareholder, Dongguan Wenfu Industrial Investment Co., Ltd., holds 39.60% of the shares, totaling 105,600,000 shares[184]. - The total number of shareholders at the end of the reporting period was 23,072, an increase from 19,878 at the end of the previous month[183].

Financial Performance - The company's revenue for Q1 2021 was ¥526,497,531.87, representing a 63.68% increase compared to ¥321,653,451.08 in the same period last year[8] - The net profit attributable to shareholders was -¥15,359,951.81, a decline of 105.59% from -¥7,471,156.70 year-on-year[8] - The basic earnings per share were -¥0.06, down 50.00% from -¥0.04 in the same period last year[8] - The company's revenue for Q1 2021 reached 526 million yuan, a year-on-year increase of 63.68%[33] - The net profit attributable to shareholders for Q1 2021 was -15.36 million yuan, a decline of 105.59% compared to the same period last year[33] - Net profit for the quarter was a loss of CNY 15,379,671.40, compared to a loss of CNY 7,471,156.70 in the same period last year, indicating a worsening financial performance[75] Cash Flow and Liquidity - The net cash flow from operating activities was -¥109,448,498.17, which is a 63.44% decrease compared to -¥66,967,245.95 in the previous year[8] - Cash received from sales and services in Q1 2021 was 881.40 million yuan, up 63.19% from 540.12 million yuan in Q1 2020[29] - The cash flow from operating activities was -¥109,448,498.17, worsening from -¥66,967,245.95 in the previous period[91] - The net cash flow from operating activities was -41,903,612.10 CNY, an improvement compared to -112,531,545.72 CNY in the previous period, indicating a reduction in losses by approximately 62.9%[94] - Total cash inflow from operating activities was 1,009,416,008.81 CNY, significantly higher than 558,695,471.82 CNY in the previous period, representing an increase of about 80.4%[94] Assets and Liabilities - Total assets at the end of the reporting period were ¥2,446,868,593.38, a decrease of 7.13% from ¥2,634,591,188.07 at the end of the previous year[8] - The company's total current liabilities decreased to CNY 1,236,180,169.55 from CNY 1,413,142,813.09, a decline of about 12.5%[59] - Total liabilities were CNY 1,238,522,307.72, down from CNY 1,415,584,625.26, a decrease of about 12.5%[59] - Current assets totaled CNY 1,909,602,071.63, down from CNY 2,127,990,803.43, indicating a decrease of about 10.3%[53] - The company's equity attributable to shareholders was CNY 1,206,366,005.25, slightly down from CNY 1,219,006,562.81, a decrease of approximately 1.0%[62] Investments and Projects - The total amount of raised funds is 50,799.33 million CNY, with 28.88% of the total amount being reallocated[39] - The investment in the electric acoustic product smart factory construction project is 26,642.66 million CNY, with a completion rate of 52.39%[42] - The research and development center construction project has an investment of 6,460.8 million CNY, with a completion rate of 78.99%[42] - The total investment in working capital is 17,695.87 million CNY, fully utilized at 100%[42] - The project for the production of intelligent electric acoustic products in Jiangxi has an investment of 14,671 million CNY, with a completion rate of 10.18%[42] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 19,878[12] - The largest shareholder, Dongguan Wenfu Industrial, held 39.60% of the shares, amounting to 105,600,000 shares[13] - The company did not conduct any repurchase transactions among the top 10 shareholders during the reporting period[20] Research and Development - Research and development expenses were CNY 20,241,257.29, slightly up from CNY 19,732,041.13, highlighting continued investment in innovation[72] - Research and development expenses for the current period were ¥18,800,577.86, slightly down from ¥18,890,278.68 in the previous period[80] Operational Costs - Total operating costs amounted to CNY 543,825,172.87, up from CNY 331,484,672.86, reflecting a significant increase in operational expenses[72] - The total operating costs for the current period were ¥447,755,780.82, up from ¥286,203,301.84 in the previous period, indicating a rise of 56.5%[80] Future Strategy - The company is expanding its product range to include smart wearable products, aiming to drive future growth[33] - The company plans to focus on market expansion and new product development as part of its future strategy[68]

[Important Notice](index=2&type=section&id=Item%20I.%20Important%20Notice) The board, supervisory board, and senior management affirm the truthfulness, accuracy, and completeness of this quarterly report, assuming legal responsibility - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from false records, misleading statements, or major omissions, and assume individual and joint legal liabilities[3](index=3&type=chunk) - All directors attended the board meeting that reviewed this quarterly report[4](index=4&type=chunk) - Company head Yan Wenhua, chief accountant Yang Ming, and head of accounting department Liu Dongdan declare that the financial statements in the quarterly report are true, accurate, and complete[4](index=4&type=chunk) [Company Overview](index=3&type=section&id=Item%20II.%20Company%20Overview) This section presents key accounting data, financial indicators, total shareholders, and top ten shareholder details for the reporting period [Key Accounting Data and Financial Indicators](index=3&type=section&id=I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Q1 2021 revenue grew 63.68% to CNY 526 million, but net profit attributable to shareholders declined 105.59% to a CNY 15.36 million loss, with total assets decreasing 7.13% 2021 Q1 Key Accounting Data and Financial Indicators | Indicator | Current Period (CNY) | Prior Year Same Period (CNY) | Change from Prior Year Same Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 526,497,531.87 | 321,653,451.08 | 63.68% | | Net Profit Attributable to Listed Company Shareholders | -15,359,951.81 | -7,471,156.70 | 105.59% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-Recurring Gains/Losses) | -19,617,754.51 | -7,961,899.40 | 146.40% | | Net Cash Flow from Operating Activities | -109,448,498.17 | -66,967,245.95 | 63.44% | | Basic Earnings Per Share (CNY/share) | -0.06 | -0.04 | 50.00% | | Diluted Earnings Per Share (CNY/share) | -0.06 | -0.04 | 50.00% | | Weighted Average Return on Net Assets | -1.27% | -0.63% | -0.64% | | **As of End of Current Period** | | | | | Total Assets | 2,446,868,593.38 | 2,634,591,188.07 | -7.13% | | Net Assets Attributable to Listed Company Shareholders | 1,206,366,005.25 | 1,219,006,562.81 | -1.04% | Non-Recurring Gains and Losses (Year-Start to Period-End) | Item | Amount from Year-Start to Period-End (CNY) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | -36,578.41 | | Government Subsidies Included in Current Profit/Loss | 945,417.38 | | Gains/Losses from Fair Value Changes and Investment Income | 3,050,874.85 | | Other Non-Operating Income and Expenses | 40.85 | | Less: Income Tax Impact | -298,048.03 | | Total | 4,257,802.70 | [Total Shareholders and Top Ten Shareholders at Period-End](index=4&type=section&id=II.%20Total%20Shareholders%20and%20Top%20Ten%20Shareholders%20at%20Period-End) As of period-end, the company had 19,878 common shareholders, with Dongguan Wenfeng Industrial Investment Co., Ltd. holding 39.60% restricted shares, and Chairman Yan Wenhua and Director Yan Fan as actual controllers - The total number of common shareholders at the end of the reporting period was **19,878**[13](index=13&type=chunk) Top Ten Shareholders' Holdings at Period-End | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held (shares) | Number of Restricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | | Dongguan Wenfeng Industrial Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 39.60% | 105,600,000 | 105,600,000 | | Dongguan Wenyao Industrial Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 6.00% | 16,000,000 | 16,000,000 | | Dongguan Wensheng Industrial Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 6.00% | 16,000,000 | 16,000,000 | | Dongguan Wenhong Industrial Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 6.00% | 16,000,000 | 16,000,000 | | Yan Fan | Domestic Natural Person | 4.20% | 11,200,000 | 11,200,000 | | Dongguan Hontu Venture Capital Co., Ltd. | Domestic Non-State-Owned Legal Person | 2.65% | 7,073,000 | 0 | | China-Belgium Direct Equity Investment Fund | State-Owned Legal Person | 2.22% | 5,923,020 | 0 | | Long Ting | Domestic Natural Person | 2.02% | 5,400,000 | 0 | | Hu Xiaobin | Domestic Natural Person | 2.02% | 5,400,000 | 0 | | Wu Qiongb | Domestic Natural Person | 1.50% | 3,992,000 | 0 | - The company's actual controllers are Chairman Yan Wenhua and Director Yan Fan[20](index=20&type=chunk) - Dongguan Wenfeng Industrial Investment Co., Ltd., Dongguan Wensheng Industrial Investment Partnership (Limited Partnership), and Dongguan Wenhong Industrial Investment Partnership (Limited Partnership) are actually controlled by Chairman Yan Wenhua[17](index=17&type=chunk) [Significant Matters](index=6&type=section&id=Item%20III.%20Significant%20Matters) This section details major financial changes, business review, proceeds utilization, and confirms no significant orders, illegal guarantees, or related party fund occupation [Significant Changes in Key Financial Data and Indicators and Their Reasons](index=6&type=section&id=I.%20Significant%20Changes%20in%20Key%20Financial%20Data%20and%20Indicators%20and%20Their%20Reasons) Balance sheet, income statement, and cash flow items saw significant changes, including increased cash from redemptions, decreased trading assets, 63.68% revenue growth, and a 105.59% net profit decline due to costs, expenses, and exchange losses, while operating cash outflows increased and investment cash inflows significantly rose from wealth management redemptions Balance Sheet Items Significant Changes (March 31, 2021 vs. December 31, 2020) | Balance Sheet Item | March 31, 2021 (CNY) | December 31, 2020 (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 734,666,354.48 | 518,750,457.85 | 41.62% | Redemption of idle wealth management funds | | Trading Financial Assets | 30,870,156.52 | 238,433,798.00 | -87.05% | Redemption of idle wealth management funds | | Accounts Receivable | 437,798,217.32 | 771,155,613.09 | -43.23% | Collection of prior period accounts receivable during the reporting period | | Other Receivables | 7,496,478.47 | 25,479,429.58 | -70.58% | Collection of export tax rebates | | Other Current Assets | 83,207,117.01 | 59,592,721.04 | 39.63% | Increased export sales scale, leading to higher deductible VAT for exports | | Construction in Progress | 58,220,062.03 | 84,596,882.50 | -31.18% | Vietnam Industrial Park project transferred to fixed assets | | Other Non-Current Assets | 44,397,924.53 | 24,207,548.25 | 83.41% | Increased prepayments for ongoing headquarters project | | Short-Term Borrowings | 345,994,600.00 | 262,745,678.35 | 31.68% | Increased short-term bank loans due to growing operating scale | | Contract Liabilities | 2,803,508.38 | 14,528,800.61 | -80.70% | Decreased advance receipts for goods, leading to reduced contract liabilities | | Taxes Payable | 3,434,418.28 | 6,886,725.43 | -50.13% | Decreased sales gross margin, leading to reduced corresponding taxes | Income Statement Items Significant Changes (2021 Q1 vs. 2020 Q1) | Income Statement Item | Current Period (CNY) | Prior Period (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 526,497,531.87 | 321,653,451.08 | 63.68% | Increased revenue scale during the reporting period | | Operating Costs | 485,423,831.78 | 290,305,128.70 | 67.21% | Increased costs corresponding to revenue growth during the reporting period | | Taxes and Surcharges | 2,212,958.26 | 1,241,314.34 | 78.28% | Increased accrued taxes during the reporting period | | Financial Expenses | 6,172,069.77 | -3,404,961.93 | -281.27% | Significant exchange rate fluctuations, leading to changes in exchange gains/losses | | Other Income | 174,939.38 | 5,622,482.79 | -96.89% | Decreased government subsidies recognized in current profit/loss during the reporting period | | Investment Income | -514,673.32 | 1,790,709.81 | -128.74% | Changes in gains from foreign exchange forward contracts and wealth management products during the reporting period | | Gains/Losses from Fair Value Changes | 3,565,548.17 | -5,805,758.33 | -161.41% | Changes from foreign exchange forward contracts during the reporting period | | Credit Impairment Losses | 1,186,819.36 | 3,065,402.22 | -61.28% | Decreased accounts receivable balance at period-end, leading to lower expected credit losses | | Non-Operating Expenses | 0.00 | 308,966.76 | -100.00% | Primarily public welfare donations in the same period last year | Cash Flow Statement Items Significant Changes (2021 Q1 vs. 2020 Q1) | Cash Flow Statement Item | Current Period (CNY) | Prior Period (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Cash Received from Sales of Goods and Services | 881,395,854.54 | 540,116,355.04 | 63.19% | Collection of prior period payments during the reporting period | | Tax Refunds Received | 65,217,763.03 | 41,573,731.61 | 56.87% | Increased export tax refunds received during the reporting period | | Other Cash Received Related to Operating Activities | 1,933,992.60 | 7,948,658.88 | -75.67% | Changes in government subsidies received during the reporting period | | Cash Paid for Goods and Services | 893,630,621.96 | 553,651,161.11 | 61.41% | Increased accounts payable due during the reporting period | | Cash Paid to and for Employees | 117,988,626.75 | 63,024,786.02 | 87.21% | Increased total employee wages due to growing revenue scale during the reporting period | | Cash Paid for Acquisition of Fixed Assets, Intangible Assets, and Other Long-Term Assets | 43,557,898.03 | 22,519,675.83 | 93.42% | Increased payments for equipment and fixed asset investments during the reporting period | | Cash Received from Investment Redemptions | 610,000,000.00 | 197,240,000.00 | 209.27% | Redemption of idle wealth management products during the reporting period | | Cash Received from Investment Income | 3,727,627.25 | 251,370.85 | 1382.92% | Income generated from idle wealth management products during the reporting period | [Business Review and Outlook](index=8&type=section&id=II.%20Business%20Review%20and%20Outlook) Q1 2021 revenue grew 63.68% to CNY 526 million, but net profit fell 105.59% to a CNY 15.36 million loss due to product mix, rising costs, increased management expenses, and exchange losses, with plans for R&D and smart wearables expansion - The company's products primarily include various electro-acoustic products such as headphones, speakers, audio cables, and headphone components, maintaining close, stable, and long-term strategic partnerships with top global electro-acoustic product brands, smartphone brands, telecom operators, and internet giants[34](index=34&type=chunk) - Benefiting from the company's "major client, major order" strategic positioning, Q1 operating revenue continued to grow, reaching **CNY 526 million**, a **63.68% year-on-year increase**[34](index=34&type=chunk) - Net profit attributable to listed company shareholders was a **loss of CNY 15.36 million**, a **105.59% year-on-year decrease**, primarily due to changes in product structure, rising comprehensive costs leading to a decline in gross profit margin, increased management expenses for the "Dongguan-Vietnam-Jiangxi" integrated production base, and significant exchange losses from USD depreciation[34](index=34&type=chunk) - The company plans to continuously strengthen R&D innovation, deeply deploy technical R&D in "new products, new technologies, new components, new processes, and new systems," accelerate the development of new product lines and new clients, and further expand its business scope to smart wearable products[34](index=34&type=chunk) Top Five Supplier Procurement (Year-Start to Period-End) | Indicator | Year-Start to Current Period-End (CNY) | Prior Year Same Period (CNY) | | :--- | :--- | :--- | | Total Procurement from Top Five Suppliers | 165,324,806.10 | 57,188,182.88 | | Percentage of Total Q1 Procurement from Top Five Suppliers | 35.36% | 40.37% | Top Five Customer Sales (Year-Start to Period-End) | Indicator | Year-Start to Current Period-End (CNY) | Prior Year Same Period (CNY) | | :--- | :--- | :--- | | Total Sales to Top Five Customers | 442,064,644.55 | 304,463,107.82 | | Percentage of Total Q1 Sales to Top Five Customers | 83.96% | 94.66% | [Progress of Significant Matters](index=9&type=section&id=III.%20Progress%20of%20Significant%20Matters%2C%20Their%20Impact%2C%20and%20Analysis%20of%20Solutions) No significant progress on major signed orders, product/service changes, key R&D projects, or changes to intangible assets, core competitiveness, or technical teams were reported - No significant signed orders or their progress were reported during the period[35](index=35&type=chunk) - The company's products or services did not undergo significant changes or adjustments during the reporting period[35](index=35&type=chunk) - No significant R&D project progress or impacts were reported during the period[35](index=35&type=chunk) - No significant changes occurred in the company's intangible assets, core competitiveness, core technical team, or key technical personnel during the reporting period[35](index=35&type=chunk) [Unfulfilled Commitments by Controlling Shareholders, Related Parties, Acquirers, and the Company](index=9&type=section&id=IV.%20Unfulfilled%20Commitments%20by%20Controlling%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company) No overdue unfulfilled commitments from actual controllers, shareholders, related parties, acquirers, or the company were reported during the period - The company reported no overdue unfulfilled commitments from its actual controllers, shareholders, related parties, acquirers, or the company itself during the reporting period[39](index=39&type=chunk) [Comparison Table of Proceeds Utilization](index=9&type=section&id=V.%20Comparison%20Table%20of%20Proceeds%20Utilization) Total raised funds were CNY 507.9933 million, with CNY 146.71 million (28.88%) reallocated, and CNY 305.6476 million cumulatively invested; the "Electro-acoustic Product Smart Factory" project is incomplete and its benefits are not yet evaluable Overview of Proceeds Utilization | Indicator | Amount (CNY 10,000) | | :--- | :--- | | Total Raised Funds | 50,799.33 | | Total Reallocated Funds During Reporting Period | 0 | | Total Cumulatively Reallocated Funds | 14,671 | | Percentage of Cumulatively Reallocated Funds | 28.88% | | Total Funds Invested This Quarter | 2,613.47 | | Total Cumulatively Invested Funds | 30,564.76 | Utilization of Proceeds for Committed Investment Projects | Committed Investment Project | Project Changed | Adjusted Total Investment (1) (CNY 10,000) | Amount Invested This Period (CNY 10,000) | Cumulatively Invested Amount as of Period-End (2) (CNY 10,000) | Investment Progress as of Period-End (3)=(2)/(1) | Benefits Achieved This Period (CNY 10,000) | Cumulatively Achieved Benefits (CNY 10,000) | Achieved Expected Benefits | Significant Change in Project Feasibility | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 1. Electro-acoustic Product Smart Factory Construction Project | Yes | 11,971.66 | 627.85 | 6,272.11 | 52.39% | -599.77 | 270.85 | No | Yes | | 2. R&D Center Construction Project | No | 6,460.8 | 492.42 | 5,103.58 | 78.99% | | | Not Applicable | No | | 3. Replenishment of Working Capital | No | 17,695.87 | 0 | 17,695.87 | 100.00% | | | Not Applicable | No | | 4. Jiangxi Smart Electro-acoustic Product Production Project | No | 14,671 | 1,493.2 | 1,493.2 | 10.18% | | | Not Applicable | No | - The "Electro-acoustic Product Smart Factory Construction Project" has not achieved its expected benefits because the project is not yet fully completed, thus its annual benefits cannot be evaluated against the promised expected benefits after production[43](index=43&type=chunk) - The implementation location and use of proceeds for the "Electro-acoustic Product Smart Factory Construction Project" underwent significant changes, with **CNY 146.71 million** reallocated to the "Jiangxi Smart Electro-acoustic Product Production Project" to expand production scale and overcome domestic capacity bottlenecks[43](index=43&type=chunk)[46](index=46&type=chunk) [Warning and Explanation of Potential Loss or Significant Change in Cumulative Net Profit](index=11&type=section&id=VI.%20Warning%20and%20Explanation%20of%20Potential%20Loss%20or%20Significant%20Change%20in%20Cumulative%20Net%20Profit) The company did not issue any warning regarding potential loss or significant changes in cumulative net profit for the upcoming reporting period - The company did not issue any warning regarding a potential loss or significant change in cumulative net profit during the reporting period[46](index=46&type=chunk) [Illegal External Guarantees](index=11&type=section&id=VII.%20Illegal%20External%20Guarantees) The company reported no illegal external guarantees during the reporting period - The company had no illegal external guarantees during the reporting period[47](index=47&type=chunk) [Non-Operating Occupation of Funds by Controlling Shareholders and Related Parties](index=11&type=section&id=VIII.%20Non-Operating%20Occupation%20of%20Funds%20by%20Controlling%20Shareholders%20and%20Related%20Parties) No non-operating occupation of funds by controlling shareholders or related parties was reported during the period - The company reported no non-operating occupation of funds by its controlling shareholders or related parties during the reporting period[48](index=48&type=chunk) [Registration of Research, Communication, and Interview Activities](index=11&type=section&id=IX.%20Registration%20of%20Research%2C%20Communication%2C%20and%20Interview%20Activities) The company did not host any research, communication, or interview activities during the reporting period - The company did not host any research, communication, or interview activities during the reporting period[51](index=51&type=chunk) [Financial Statements](index=13&type=section&id=Item%20IV.%20Financial%20Statements) This section presents the unaudited consolidated and parent company financial statements for Q1 2021, including balance sheets, income statements, and cash flow statements, along with adjustment explanations [Financial Statements](index=13&type=section&id=I.%20Financial%20Statements) This section details the company's consolidated and parent company balance sheets, income statements, and cash flow statements for Q1 2021, reflecting financial position and operating results [Consolidated Balance Sheet](index=13&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of March 31, 2021, consolidated total assets decreased to CNY 2,446.87 million, with increased cash and inventory, and decreased trading financial assets and accounts receivable Consolidated Balance Sheet Key Items (March 31, 2021 vs. December 31, 2020) | Item | March 31, 2021 (CNY) | December 31, 2020 (CNY) | | :--- | :--- | :--- | | Monetary Funds | 734,666,354.48 | 518,750,457.85 | | Trading Financial Assets | 30,870,156.52 | 238,433,798.00 | | Accounts Receivable | 437,798,217.32 | 771,155,613.09 | | Inventory | 613,877,287.50 | 512,826,718.53 | | Total Current Assets | 1,909,602,071.63 | 2,127,990,803.43 | | Fixed Assets | 348,142,720.05 | 309,600,768.51 | | Total Assets | 2,446,868,593.38 | 2,634,591,188.07 | | Short-Term Borrowings | 345,994,600.00 | 262,745,678.35 | | Accounts Payable | 828,450,577.57 | 1,071,851,033.35 | | Total Liabilities | 1,238,522,307.72 | 1,415,584,625.26 | | Total Equity Attributable to Parent Company Owners | 1,206,366,005.25 | 1,219,006,562.81 | [Parent Company Balance Sheet](index=16&type=section&id=2.%20Parent%20Company%20Balance%20Sheet) As of March 31, 2021, parent company total assets decreased to CNY 1,675.31 million, with increased cash and inventory, and decreased trading financial assets and accounts receivable Parent Company Balance Sheet Key Items (March 31, 2021 vs. December 31, 2020) | Item | March 31, 2021 (CNY) | December 31, 2020 (CNY) | | :--- | :--- | :--- | | Monetary Funds | 297,511,218.90 | 210,644,589.20 | | Trading Financial Assets | 843,600.00 | 56,932,768.39 | | Accounts Receivable | 510,771,815.71 | 944,666,405.59 | | Inventory | 102,331,575.56 | 63,791,768.57 | | Total Assets | 1,675,307,707.90 | 2,018,769,606.18 | | Short-Term Borrowings | 275,994,600.00 | 157,660,850.00 | | Accounts Payable | 188,676,154.81 | 663,129,459.54 | | Total Liabilities | 489,948,821.86 | 835,358,428.20 | | Total Owners' Equity | 1,185,358,886.04 | 1,183,411,177.98 | [Consolidated Income Statement](index=18&type=section&id=3.%20Consolidated%20Income%20Statement) Q1 2021 consolidated revenue grew 63.68% to CNY 526 million, but net profit attributable to parent shareholders was a CNY 15.36 million loss, exacerbated by costs, financial expenses, and reduced other income Consolidated Income Statement Key Items (2021 Q1 vs. 2020 Q1) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 526,497,531.87 | 321,653,451.08 | | Total Operating Costs | 543,825,172.87 | 331,484,672.86 | | Operating Costs | 485,423,831.78 | 290,305,128.70 | | Financial Expenses | 6,172,069.77 | -3,404,961.93 | | Operating Profit | -14,782,078.71 | -6,641,341.31 | | Total Profit | -14,011,559.86 | -6,549,123.48 | | Net Profit | -15,379,671.40 | -7,471,156.70 | | Net Profit Attributable to Parent Company Shareholders | -15,359,951.81 | -7,471,156.70 | | Basic Earnings Per Share | -0.06 | -0.04 | [Parent Company Income Statement](index=21&type=section&id=4.%20Parent%20Company%20Income%20Statement) Q1 2021 parent company revenue grew to CNY 486 million, achieving a net profit of CNY 1.95 million, an improvement from the prior year despite increased financial expenses Parent Company Income Statement Key Items (2021 Q1 vs. 2020 Q1) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Operating Revenue | 485,585,377.25 | 312,809,388.28 | | Operating Costs | 447,755,780.82 | 286,203,301.84 | | Financial Expenses | 5,440,680.44 | -3,020,227.62 | | Investment Income | 3,071,345.57 | 1,391,494.75 | | Operating Profit | 1,177,230.02 | 1,342,652.04 | | Total Profit | 1,947,708.06 | 1,069,136.55 | | Net Profit | 1,947,708.06 | 1,059,389.00 | [Consolidated Cash Flow Statement](index=23&type=section&id=5.%20Consolidated%20Cash%20Flow%20Statement) Q1 2021 operating cash flow was negative CNY 109 million, while investing cash flow turned positive to CNY 164 million due to investment redemptions, and financing cash flow increased to CNY 157 million Consolidated Cash Flow Statement Key Items (2021 Q1 vs. 2020 Q1) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -109,448,498.17 | -66,967,245.95 | | Net Cash Flow from Investing Activities | 164,221,023.22 | -166,528,304.98 | | Net Cash Flow from Financing Activities | 157,477,051.62 | 109,678,125.00 | | Net Increase in Cash and Cash Equivalents | 215,915,896.63 | -124,432,681.36 | | Cash and Cash Equivalents at Period-End | 729,960,554.48 | 439,089,394.02 | [Parent Company Cash Flow Statement](index=25&type=section&id=6.%20Parent%20Company%20Cash%20Flow%20Statement) Q1 2021 parent company operating cash flow was negative CNY 41.90 million, an improvement, while investing cash flow turned positive to CNY 11.92 million, and financing cash flow significantly improved to CNY 116 million Parent Company Cash Flow Statement Key Items (2021 Q1 vs. 2020 Q1) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -41,903,612.10 | -112,531,545.72 | | Net Cash Flow from Investing Activities | 11,918,535.30 | -40,976,555.01 | | Net Cash Flow from Financing Activities | 116,019,301.60 | 93,636,125.00 | | Net Increase in Cash and Cash Equivalents | 86,866,629.70 | -57,950,925.11 | | Cash and Cash Equivalents at Period-End | 297,511,218.90 | 173,915,794.95 | [Explanation of Financial Statement Adjustments](index=26&type=section&id=II.%20Explanation%20of%20Financial%20Statement%20Adjustments) The company did not retrospectively adjust financial statements for the first-time adoption of new lease standards or prior comparative data in Q1 2021 - The company did not adjust the financial statements at the beginning of the year for the first-time adoption of new lease standards starting in 2021[100](index=100&type=chunk) - The company did not retrospectively adjust prior comparative data for the first-time adoption of new lease standards starting in 2021[102](index=102&type=chunk) [Audit Report](index=27&type=section&id=III.%20Audit%20Report) The company's Q1 2021 report is unaudited - The company's first quarterly report is unaudited[103](index=103&type=chunk)

Financial Performance - The total revenue for 2020 was approximately ¥2.65 billion, representing a 17.54% increase compared to ¥2.26 billion in 2019[22]. - The net profit attributable to shareholders decreased by 43.48% to approximately ¥68.25 million from ¥120.75 million in 2019[22]. - The net profit after deducting non-recurring gains and losses was approximately ¥27.07 million, a decline of 77.68% compared to ¥121.29 million in 2019[22]. - Basic earnings per share dropped by 71.74% to ¥0.26 from ¥0.92 in 2019[22]. - The gross profit margin for the electronic industry decreased by 3.51% to 11.46% in 2020[61]. - The net profit attributable to the parent company was CNY 68,245,800, a decrease of 43.48% year-on-year[60]. - TWS earphone revenue reached CNY 152,678,850, marking a significant growth of 111.28% compared to 2019[60]. - The company faced significant foreign exchange losses due to the depreciation of the US dollar, impacting profitability[60]. - Direct material costs accounted for 79.32% of total operating costs, reflecting a 25.55% increase from the previous year[65]. Cash Flow and Investments - The net cash flow from operating activities increased by 29.90% to approximately ¥98.77 million from ¥76.04 million in 2019[22]. - The net cash flow from financing activities decreased by 74.34% to ¥118,185,684.65, primarily due to the previous year's fundraising completion[79]. - Cash and cash equivalents decreased by 115.95% to -¥49,477,417.53, influenced by changes in operating and investment activities[79]. - The total investment amount for the reporting period reached ¥1,453,816,725.06, a significant increase of 966.67% compared to ¥229,338,604.21 in the same period last year[88]. - Investment cash inflows surged to ¥1,175,560,735.75, a significant increase of 18,994.69% compared to the previous year[79]. Assets and Liabilities - The total assets at the end of 2020 were approximately ¥2.63 billion, a 30.63% increase from ¥2.02 billion at the end of 2019[22]. - The proportion of accounts receivable increased to 29.27% of total assets, up from 20.12% at the beginning of the year[84]. - The company’s total share capital increased to 266,688,000 shares following the capital reserve conversion in 2019, which involved a 6-for-10 bonus share distribution[139]. Research and Development - As of December 31, 2020, the company held 50 invention patents, 367 utility model patents, and 166 design patents, indicating a strong focus on R&D[43]. - Research and development expenses increased by 31.36% to ¥104,334,763.69, driven by increased investment in R&D[72]. - The number of R&D personnel rose to 321, with R&D investment accounting for 3.93% of operating revenue[74]. - The company focused on R&D in TWS technology, increasing investment in professional acoustics, Bluetooth upgrades, and smart wearables[60]. Market Position and Strategy - The company’s main products include headphones, speakers, and audio cables, with headphones accounting for over 88% of revenue, and TWS headphones making up 65.32% of the headphone segment[35]. - The company has established long-term strategic partnerships with renowned institutions such as the Chinese Academy of Sciences and Tsinghua University, focusing on wearable smart product development[50]. - The company has accumulated a strong customer base, including international brands like Harman and Skullcandy, as well as domestic companies such as Huawei and Anker, enhancing its market position[50]. - The company is actively expanding its market presence and reducing dependency on single customers by acquiring new clients and exploring new markets[50]. - The company is committed to strengthening vertical supply chain integration to adapt to the increasing multifunctionality and intelligence requirements of consumer electronics[116]. Dividend Policy - The company plans to distribute a cash dividend of ¥1 per 10 shares to all shareholders[6]. - The total distributable profit as of December 31, 2020, is 213,682,409.81 RMB, after accounting for a legal surplus reserve of 3,933,963.38 RMB and a previous year's distribution of 50,004,000 RMB[135]. - The cash dividend distribution represents 100% of the total profit distribution amount for the year[135]. - The company has a cash dividend policy that mandates a minimum distribution of 80% of profits for mature companies without significant capital expenditure plans[130]. Risks and Challenges - High customer concentration poses a risk, as major clients like Harman and Huawei could reduce orders or lower prices, negatively impacting performance[119]. - The company's gross margin is susceptible to fluctuations due to industry conditions, customer structure, and raw material prices[120]. - Significant foreign revenue exposure means that exchange rate fluctuations, particularly with the USD, could adversely affect profit levels[120]. - The company faces intensified market competition, with both leading and small enterprises vying for market share through technological advancements and production scale[119]. Compliance and Governance - The company has committed to fulfilling promises made during the acquisition and restructuring processes, with ongoing compliance as of the report date[140]. - The company is actively working on compliance with legal regulations regarding shareholding and transfer, reinforcing its commitment to corporate governance[140]. - The company has established a long-term commitment to compensate investors for any losses resulting from misleading statements in the IPO prospectus[169]. - The company has made commitments regarding information disclosure, ensuring no false records or misleading statements in its IPO prospectus[158].