海天天线(08227) - 2021 Q1 - 季度财报

First Quarter Performance Highlights The Group achieved significant revenue growth in Q1 2021, with total operating revenue increasing nearly 4.5 times year-over-year, while net loss significantly narrowed, primarily due to strong performance in the core antenna product business; the Board decided not to declare a dividend for this quarter Key Performance Indicators for Q1 2021 | Indicator | Q1 2021 (RMB Million) | Q1 2020 (RMB Million) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | Approx. 7.84 | Approx. 1.78 | +341% | | Net Loss | Approx. 2.79 | Approx. 4.76 | Loss Narrowed 41.4% | - The Board does not recommend declaring a dividend for the three months ended March 31, 2021[5] Consolidated Financial Statements The Group's consolidated financial statements as of March 31, 2021, show growth in both assets and liabilities, with a significant revenue increase leading to a narrower loss on the income statement, and increased operating cash outflows supplemented by financing activities on the cash flow statement Consolidated Balance Sheet As of March 31, 2021, the Group's total assets increased to RMB 116.5 million, primarily driven by an increase in current assets like accounts receivable, while total liabilities also grew to RMB 74.35 million, resulting in a slight decrease in total shareholders' equity to RMB 42.15 million Key Balance Sheet Items (Unit: RMB) | Item | March 31, 2021 | December 31, 2020 | Change | | :--- | :--- | :--- | :--- | | Total Current Assets | 31,403,079.11 | 18,237,659.31 | +72.2% | | Total Assets | 116,501,541.52 | 106,223,494.95 | +9.7% | | Total Current Liabilities | 67,157,559.42 | 53,981,039.65 | +24.4% | | Total Liabilities | 74,349,803.53 | 61,281,943.49 | +21.3% | | Total Shareholders' Equity | 42,151,737.99 | 44,941,551.46 | -6.2% | Consolidated Income Statement In Q1 2021, the Group's total operating revenue surged 341% year-over-year to RMB 7.84 million; despite increased operating costs, strong revenue growth significantly narrowed both operating and net losses, with net loss decreasing from RMB 4.76 million to RMB 2.79 million compared to the prior year Key Income Statement Items (Unit: RMB) | Item | Q1 2021 | Q1 2020 | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 7,841,018.43 | 1,776,680.01 | +341.3% | | Operating Profit (Loss) | (2,847,402.16) | (4,769,088.41) | Loss Narrowed 40.3% | | Net Profit (Loss) | (2,789,813.47) | (4,760,831.93) | Loss Narrowed 41.4% | | Basic Earnings Per Share | (0.00146) | (0.00268) | Loss Narrowed | Consolidated Cash Flow Statement In Q1 2021, net cash flow from operating activities was an outflow of RMB 9.17 million, an increase in outflow year-over-year; however, the Group obtained a net cash inflow of RMB 10.77 million from financing activities, primarily through capital contributions, resulting in a net increase of RMB 1.52 million in cash and cash equivalents at period-end Key Cash Flow Statement Items (Unit: RMB) | Item | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | (9,167,649.84) | (3,410,326.36) | | Net Cash Flow from Investing Activities | (120,837.00) | (194,062.91) | | Net Cash Flow from Financing Activities | 10,769,260.70 | 885,121.80 | | Net Increase in Cash and Cash Equivalents | 1,515,448.58 | (2,717,777.47) | Notes to the Financial Statements The notes to the financial statements detail the company's accounting policies, the composition and changes in key accounts, and provide critical segment information, highlighting antenna products as the core source of revenue and profit, along with explanations of earnings per share calculation and dividend policy Company Overview and Accounting Policies Established in 1999, the company's H-shares were listed on GEM in 2003, with its main business encompassing R&D, production, and sales of mobile communication antennas and microwave technology products; financial statements are prepared on a going concern basis under Chinese Accounting Standards for Business Enterprises, with RMB as the functional currency - The company's business scope primarily includes the research, development, production, sales, installation, testing, and services of mobile communication system antennas and related products[23] - Financial statements are prepared in accordance with Chinese Accounting Standards for Business Enterprises and the requirements of the Hong Kong GEM Listing Rules, with RMB as the functional currency[24][25] Segment Information The Group's operations are divided into four segments; in Q1 2021, antenna product sales and services were the absolute core, contributing most revenue and all profit, while agricultural product sales provided stable revenue but incurred a slight loss, and underwater monitoring and aircraft product sales segments generated no revenue this period Q1 2021 Segment Revenue and Profit (Unit: RMB) | Operating Segment | Main Business Revenue | Segment Profit (Loss) | | :--- | :--- | :--- | | Antenna Product Sales and Related Services | 6,032,137.89 | 472,103.09 | | Agricultural Product Sales | 1,679,737.69 | (11,420.64) | | Underwater Monitoring and Related Product Sales | – | (85,776.83) | | Aircraft Product Sales | – | (163,493.63) | Earnings Per Share and Dividends Basic loss per share for Q1 2021 was RMB 0.00146, an improvement from RMB 0.00268 in the prior year, with diluted earnings per share being identical to basic earnings per share due to the absence of any potentially dilutive shares; the Board does not recommend declaring a dividend for this quarter - Basic earnings per share is calculated based on the net loss attributable to owners of the parent of RMB (2,767,107.24) and the weighted average number of issued shares of 1,897,629,000[56] - The Board does not recommend declaring a dividend for the three months ended March 31, 2021[57] Management Discussion and Analysis Management reviewed the quarter's operating performance, attributing significant revenue growth to the successful market launch of the dielectric lens antenna product, developed over seven years; gross margin significantly improved, expenses were effectively controlled, leading to a narrowed loss, and the company plans to strategically focus on the antenna business and explore various financing channels to support future development Business Review This quarter's business performance was outstanding, with total operating revenue increasing 441% year-over-year, primarily driven by sales of dielectric lens antenna products, whose segment revenue grew 809% year-over-year; gross margin significantly improved from 4.84% to 54.03%, and despite some expense increases due to business expansion, overall profitability improved, successfully narrowing net loss Overall Performance and Core Products Total operating revenue increased 441% year-over-year to approximately RMB 7.84 million, with the core driver being the Group's proprietary artificial dielectric lens antenna series products, developed over seven years, which have gained widespread customer recognition since their 2019 market launch and generated approximately RMB 6.03 million in revenue in Q1 2021 - The Group spent 7 years developing the artificial dielectric lens antenna series products, featuring low power consumption and high gain, effectively addressing pain points in 5G construction[59] - Dielectric lens antennas have secured cumulative sales orders of approximately RMB 13.63 million, with approximately RMB 6.03 million recognized as operating revenue in Q1 2021[60] Segment Performance Analysis The antenna product segment became the absolute growth engine, accounting for 78% of revenue and growing 809% year-over-year; the agricultural product sales segment served as a stable revenue source, accounting for 22% of revenue and growing 71% year-over-year, while the underwater monitoring and aircraft product segments generated no revenue this quarter to focus resources on core business development - Revenue from the antenna product sales segment accounted for approximately 78% of main business revenue, an increase of approximately 809% compared to the same period in 2020[60] - Revenue from the agricultural product sales segment was approximately RMB 1.68 million, accounting for approximately 22% of main business revenue, an increase of approximately 71% compared to the same period in 2020[65] - To support the production of dielectric lens antennas, the Group reallocated some resources from the underwater monitoring and aircraft product segments to the antenna product segment[62] Profitability and Expense Analysis Benefiting from an increased sales proportion of high-value-added antenna products, this quarter's gross margin surged from 4.84% in the prior year to 54.03%; sales expenses increased due to business expansion, while administrative expenses decreased due to internal resource integration, ultimately narrowing the Group's net loss from RMB 4.76 million to RMB 2.79 million - Gross margin significantly improved from 4.84% in the same period of 2020 to approximately 54.03%, primarily due to a substantial increase in antenna product sales revenue[66] - Sales expenses increased year-over-year, mainly due to higher staff salaries and transportation costs for antenna product sales; administrative expenses decreased year-over-year due to reduced office rental-related expenses[67][71] - Despite a decrease in fair value change gains, a significant increase in total operating revenue led to the Group's net loss narrowing from RMB 4.76 million in the prior year to RMB 2.79 million[73] Business Outlook Looking ahead, the Group has strategically adjusted to fully focus on the core dielectric lens antenna business, aiming to secure more order shares in bidding and procurement, while also continuing to expand agricultural product sales to enhance performance; to ensure operations and development, the company will closely monitor working capital needs and consider various financing channels such as bank loans, share placements, and bond issuance - The Group will prioritize the antenna product sales and related services operating segment for development and believes it can secure a larger share of orders[79] - The Group will strive to expand the customer base for the agricultural product sales segment and actively develop this business[79] - To meet working capital needs, the Group will consider financing through channels such as bank loans, share placements, and bond issuance[79] Equity and Corporate Governance This section details the shareholdings of the company's directors, supervisors, and major shareholders as of March 31, 2021, providing transparent equity structure information; concurrently, the company confirmed compliance with the Corporate Governance Code during the reporting period, with the Audit Committee reviewing the quarter's performance to ensure compliance and financial reporting rigor Shareholdings of Directors, Supervisors, and Major Shareholders This section details the long and short positions of directors, supervisors, chief executive, and major shareholders in the company's domestic shares and H-shares, as required by the Securities and Futures Ordinance; the disclosed information covers beneficial owners, controlled corporate interests, and associated party interests, clearly presenting the company's main equity distribution Overview of Shareholdings by Directors and Major Shareholders (As of March 31, 2021) | Name/Entity | Capacity/Relationship | Share Type | Number of Shares Held | Approximate Percentage of Total Share Capital | | :--- | :--- | :--- | :--- | :--- | | Mr. Xiao Bing | Chairman | Domestic Shares (Long Position) | 550,832,335 | 29.03% | | Mr. Chen Ji | Executive Director | Domestic Shares (Long Position) | 273,344,804 | 14.40% | | Mr. Chen Ji | Executive Director | H-Shares (Long Position) | 46,371,000 | 2.44% | | Mr. Chen Ji | Executive Director | H-Shares (Short Position) | 36,300,000 | 1.91% | | Huang Lihou | Major Shareholder | H-Shares (Long Position) | 85,100,000 | 4.48% | | Hong Kong Jinsheng Enterprise Co., Ltd. | Major Shareholder | H-Shares (Long Position) | 70,752,000 | 3.73% | Corporate Governance and Compliance The company complied with the Corporate Governance Code set out in Appendix 15 of the GEM Listing Rules during the reporting period; an Audit Committee, comprising two independent non-executive directors and one non-executive director, was established to oversee financial reporting processes and internal controls, and has reviewed the unaudited consolidated results for this quarter - For the three months ended March 31, 2021, the company complied with the Corporate Governance Code and the code provisions set out in the Corporate Governance Report, as contained in Appendix 15 of the GEM Listing Rules[106] - The Audit Committee, comprising Independent Non-executive Directors Professor Shi Ping and Professor Lei Zhenya, and Non-executive Director Mr. Xu Xiong, has reviewed the unaudited consolidated results for this quarter[109] - The company has adopted a code of conduct regarding directors' securities transactions and, following inquiry, is unaware of any non-compliance[107]