QCIOT(688528)2021-04-27 16:00Financial Performance - The company achieved operating revenue of CNY 302.08 million in 2020, a year-on-year increase of 23.33%[22]. - Net profit attributable to shareholders was CNY 46.16 million, up 4.36% from the previous year[22]. - Basic earnings per share decreased by 11.43% to CNY 0.31 in 2020[21]. - The weighted average return on equity dropped by 7.58 percentage points to 8.82%[21]. - The net cash flow from operating activities was negative at CNY -2.52 million, a decline of 104.74% compared to the previous year[22]. - Total assets increased by 108.76% to CNY 990.28 million at the end of 2020[22]. - The company reported a total revenue of 109,975,000.00 RMB, with a net profit of 24,293,541.30 RMB for the year 2020[79]. - The company reported a negative net cash flow from operating activities of CNY 2,524,678.27, a decline of 104.74% from the previous year[114]. - Operating costs increased to CNY 183,721,515.55, marking a rise of 33.62% compared to the previous year[114]. - The gross profit margin for the manufacturing sector was 39.18%, down by 4.68 percentage points year-on-year[117]. Dividend Policy - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares, totaling 25,200,000 RMB, which represents 54.60% of the net profit attributable to shareholders for 2020[6]. - A profit distribution policy has been established, detailing the ratio, basis, conditions, implementation procedures, and adjustment matters for dividends[175]. - The company plans to distribute cash dividends, with a minimum of 80% of the profit distribution allocated to cash dividends during mature stages without significant capital expenditure[181]. - The company will ensure that cash dividends account for at least 20% of profit distribution during growth stages with significant capital expenditures[181]. - The company will prioritize cash dividends over stock dividends when conditions for cash distribution are met, ensuring that at least 10% of the distributable profit is allocated to cash dividends annually[179]. Research and Development - The total R&D expenditure for the year was approximately ¥24.29 million, representing a 5.25% increase from the previous year's ¥23.08 million[74]. - R&D expenditure accounted for 8.04% of total revenue, down from 9.42% in the previous year, indicating a decrease of 1.38 percentage points[74]. - The company is developing a new smart gas meter with a projected market demand of 1,820,000 units, enhancing its competitive edge in the industry[79]. - The company is investing $200 million in R&D for new technologies aimed at enhancing user experience and operational efficiency[165]. - The company will continue to invest heavily in R&D to maintain its technological advantage and expand its product line, including smart water meters and ultrasonic flow meters[146]. Market and Product Development - The company is engaged in the research, development, manufacturing, and sales of smart gas meters, integrating core technologies with precision instrument manufacturing[30]. - The company is expanding its product line to include smart water meters and smart thermal meters, aiming to establish a comprehensive smart utility system[46]. - The company is focusing on the development of smart gas meters, which will enhance safety, reliability, and intelligent management capabilities[142]. - The company aims to enhance its competitive edge by focusing on technology research and development, particularly in IoT smart gas meters and related products[146]. - The company recognizes that market demand for smart gas meters is closely linked to natural gas consumption and mandatory replacements of old meters[144]. Operational Efficiency - The company will continue to enhance operational efficiency and reduce costs to improve business performance[173]. - The company will implement multiple improvement measures to enhance daily operational efficiency and reduce operational costs[173]. - The company has committed to reducing operational costs by 5% through efficiency improvements in the supply chain[165]. - The company will enhance production cost control and reduce operational costs[175]. Risk Management - The company has outlined potential risk factors in its operations, which can be found in the section discussing operational conditions[4]. - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute a commitment to investors, highlighting investment risks[7]. - The company faces risks related to market competition, requiring continuous enhancement of R&D capabilities and marketing network[104]. - The impact of the COVID-19 pandemic has led to a slowdown in industry procurement and installation progress, affecting overall industry development[111]. Corporate Governance - The company has established a commitment to not repurchase shares during the lock-up period[161]. - The company has committed to ensuring that there are no fraudulent activities in the public offering of shares on the Shanghai Stock Exchange's Sci-Tech Innovation Board[185]. - The company has appointed Sichuan Huaxin (Group) CPA Firm as its auditor for the 2020 annual audit, with a remuneration of CNY 400,000[189]. - The company has complied with legal requirements for corporate governance and information disclosure, ensuring equal access to information for all shareholders[200]. Innovation and Technology - The company has developed a "volume positioning technology" and a "rigid linkage system" that reduces measurement error to meet the EU MID standard of class 1.5 meters[48]. - The company’s smart gas meters have performance indicators that exceed European and Japanese standards, enhancing its market position[44]. - The company has introduced a gas ultrasonic flow detection technology that enhances measurement accuracy and reliability through multi-channel collaboration[66]. - The company’s IoT smart gas meter integrates sensing, control, and IoT technologies, providing features such as remote prepaid management and real-time pricing[31]. Customer Engagement - The company launched a customer service app and self-service terminals, enabling functions such as payment, remote valve control, and business applications, improving user experience[63]. - The company has established a comprehensive management system for gas operators, integrating daily gas business processing, customer profiles, meter reading, billing, and statistical analysis, enhancing management efficiency and customer satisfaction[62]. - The company will enhance market communication and customer engagement to better understand and guide customer needs[173].