移远通信(603236) - 2024 Q2 - 季度财报

Definitions This chapter primarily explains professional terms and company entity abbreviations used in the report, covering communication technologies, IoT concepts, and full names of major subsidiaries and affiliates - This chapter mainly explains professional terms and company entity abbreviations used in the report, covering communication technologies (such as LTE, 5G, C-V2X), IoT-related concepts (IoT, AIoT), and the full names of the company's major subsidiaries and associated companies[9][10] Company Profile and Key Financial Indicators This section provides an overview of the company's fundamental information and key financial performance Company Information This chapter provides basic business registration information for Quectel Wireless Solutions Co., Ltd., including its Chinese and English names, legal representative, registered address, office address, and contact details - The company's full name is Shanghai Quectel Wireless Solutions Co., Ltd., stock code 603236, and legal representative is Qian Penghe[11][16] Key Accounting Data and Financial Indicators In the first half of 2024, the company achieved revenue of 8.249 billion yuan, a 26.67% year-on-year increase, and turned losses into profits with a net profit attributable to parent company shareholders of 209 million yuan, despite a significant 315.90% year-on-year decrease in net cash flow from operating activities due to increased procurement Key Accounting Data | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 8,248,827,734.10 yuan | 6,511,850,624.80 yuan | 26.67 | | Net Profit Attributable to Shareholders of Listed Company | 209,375,373.88 yuan | -115,373,422.21 yuan | Not Applicable | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Items) | 188,520,567.64 yuan | -154,664,592.83 yuan | Not Applicable | | Net Cash Flow from Operating Activities | -335,989,539.88 yuan | 155,619,715.65 yuan | -315.90 | Key Financial Indicators | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.80 | -0.44 | Not Applicable | | Weighted Average Return on Net Assets (%) | 5.69 | -3.15 | Increased by 8.84 percentage points | - The turnaround in performance is attributed to the gradual recovery of market demand, the company's expansion into derivative businesses based on its module business, and continuous optimization of operational efficiency, leading to a year-on-year decrease in expense ratios[18] Non-Recurring Gains and Losses Items and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 20.85 million yuan, primarily from government subsidies and gains on disposal of non-current assets Non-Recurring Gains and Losses Items | Non-Recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | 5,186,369.56 | | Government Subsidies Included in Current Profit/Loss | 16,396,365.75 | | Other Non-Operating Income and Expenses | -715,870.99 | | Total | 20,854,806.24 | Management Discussion and Analysis This section provides a comprehensive discussion and analysis of the company's industry, principal business, operating performance, and potential risks Industry and Principal Business Overview The company's principal business involves IoT wireless communication modules and solutions, widely applied in smart transportation, energy, and financial payment sectors, with a production model combining self-production and outsourced processing, and a global sales model; the IoT industry is recovering, with 5G-A, edge computing, and XR technologies driving new growth - The company's principal business is the design, research and development, production, and sales services of wireless communication modules and their solutions in the IoT field, providing one-stop solutions[20] - Industry trends indicate a recovery in IoT prosperity, with global cellular IoT connections projected to reach 6.7 billion by 2029; 5G technology is evolving towards 5G-A, fostering new applications like C-V2X and VR/AR; edge computing and XR technologies are becoming key drivers for industry advancement[25][26][27] Discussion and Analysis of Operations In the first half of 2024, the company's revenue increased by 26.67% to 8.249 billion yuan, achieving a net profit of 209 million yuan, with overseas revenue accounting for 51.17%; the company continued to strengthen R&D investment, spending 796 million yuan (9.65% of revenue), and expanded its product lines and derivative businesses globally Financial Indicators | Financial Indicators | H1 2024 | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | 8.249 billion yuan | 26.67% | | Net Profit Attributable to Parent | 209 million yuan | Turned losses into profits | | Overseas Operating Revenue | 4.220 billion yuan | - | | Overseas Revenue Share | 51.17% | - | R&D and Technological Innovation The company prioritizes technological innovation, with R&D investment reaching 796 million yuan (9.65% of revenue) in the first half of 2024, supported by eight global R&D centers and a high proportion of R&D personnel, contributing to significant patent achievements and international standard participation R&D Metrics | R&D Metrics | H1 2024 | Proportion | | :--- | :--- | :--- | | R&D Investment | 796 million yuan | 9.65% of revenue | | R&D Personnel | 4,203 people | 73.88% of total staff | - As of the end of the reporting period, the company had obtained 495 authorized patents, 324 trademarks, and 279 software copyrights, and submitted over 50 5G technical proposals to 3GPP[30] Module Product Development During the reporting period, the company continuously enriched its product lines, developing over 50 5G module models, launching new intelligent, LTE, LPWA, and Wi-Fi & BT modules, and actively positioning itself in the 5G-A ecosystem - The company has developed over 50 5G module models, covering industrial-grade, Android smart, and automotive-grade applications, and is actively building the 5G-A ecosystem[31] - The company launched multiple new intelligent, LTE, LPWA, and Wi-Fi & BT module products to meet the demands of various application scenarios[32][34][35][36] Automotive Business The company has established a "Seven Automotive Product Technology Ecosystem" to support automotive intelligence upgrades, covering smart cockpit, 4G/5G, C-V2X, and high-precision positioning modules, along with antennas and solutions, achieving significant progress in automotive-grade module certifications and mass production - The company launched a "Seven Automotive Product Technology Ecosystem" to empower six major application scenarios, including smart cockpit, intelligent driving, and intelligent connectivity[37][38] - Automotive-grade 5G modules AG59xE/H series have been designated by leading automakers in Europe, North America, Japan, and India; smart cockpit module AG855G has passed AEC-Q104 automotive-grade certification[38] GNSS Modules During the reporting period, the company introduced two new GNSS modules, LG290P and LG580P, specifically designed for high-precision positioning needs in intelligent robots, drones, and precision agriculture - The newly launched LG290P and LG580P modules meet the demands for small-sized, all-constellation quad-band and all-constellation multi-frequency positioning and heading functions, respectively[40] Satellite Communication As an early participant in satellite communication IoT, the company has mass-produced several satellite communication modules and provides end-to-end solutions for applications such as logistics monitoring and emergency communication - The company has pioneered the launch and mass production of multiple satellite communication modules, including CC660D-LS, CC200A-LB, and BG95-S5[41] Derivative Businesses The company is accelerating the development of module-centric derivative businesses, including IoT antennas, ODM services (with over 50% revenue growth in H1), software platform services, industrial intelligence, and certification services, providing integrated vertical industry solutions - The company's derivative businesses include IoT antennas, IoT software service platforms, ODM business, industrial intelligence, smart agriculture, and certification services[42] - ODM business revenue grew by over 50% in the first half of 2024, providing PCBA solutions to leading customers in PDA, POS, FWA, and two-wheeler industries[44] Analysis of Key Operating Performance This chapter provides a detailed analysis of key operating data for the reporting period, including changes in financial statement items, asset and liability status, and investment activities Principal Business Analysis During the reporting period, the company's operating revenue increased by 26.67% and operating costs by 25.79%, while financial expenses surged by 101.19% due to reduced exchange gains, and net cash flow from operating activities significantly decreased by 315.90% primarily due to increased procurement expenditures Financial Statement Item Change Analysis | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change Ratio (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 8,248,827,734.10 | 6,511,850,624.80 | 26.67 | | Operating Cost | 6,752,312,138.55 | 5,367,882,197.25 | 25.79 | | Financial Expenses | 33,201,313.11 | 16,502,593.70 | 101.19 | | Net Cash Flow from Operating Activities | -335,989,539.88 | 155,619,715.65 | -315.90 | Analysis of Assets and Liabilities As of the end of the reporting period, the company's total assets were 11.386 billion yuan, a slight increase of 1.36% from the end of the previous year, with significant increases in prepayments and construction in progress due to increased inventory and headquarters construction, and a 39.74% rise in short-term borrowings to meet business development funding needs Asset and Liability Status | Project Name | Current Period End Amount (yuan) | Change Ratio from Prior Year End (%) | Main Reason | | :--- | :--- | :--- | :--- | | Prepayments | 201,170,700.44 | 99.53 | Advance procurement of raw materials | | Construction in Progress | 155,851,324.96 | 52.82 | Increased investment in headquarters building construction | | Short-term Borrowings | 1,005,538,617.79 | 39.74 | Increased funding needs for business development | | Other Receivables | 84,925,366.58 | -64.40 | Decrease in export tax refund receivables | - As of the end of the reporting period, the company's overseas assets amounted to 2.379 billion yuan, accounting for 20.89% of total assets[53] Analysis of Investment Status During the reporting period, the company's external equity investment totaled 12.69 million yuan, primarily for capital increases in subsidiaries and employee equity incentives, while the Quectel Global Headquarters project continued construction with a 52.66 million yuan investment in this period, bringing the cumulative investment to 376 million yuan - The Quectel Global Headquarters project is under continuous construction, with a total estimated investment not exceeding 1.25 billion yuan, 52.66 million yuan invested in this reporting period, and a cumulative investment of 376 million yuan[56] - During the reporting period, the company and its wholly-owned subsidiaries did not engage in foreign exchange hedging activities[61] Analysis of Major Holding and Participating Companies This chapter discloses the operating performance of major holding and participating companies, including Changzhou Quectel, Guilin Quectel, Hong Kong Quectel, and Singapore Quectel, with Hong Kong Quectel achieving a net profit of 20.60 million yuan, while Singapore Quectel incurred a net loss of 170 million yuan due to undertaking some overseas business Major Holding and Participating Companies | Company Name | Total Assets (million yuan) | Net Assets (million yuan) | Operating Revenue (million yuan) | Net Profit (million yuan) | | :--- | :--- | :--- | :--- | :--- | | Changzhou Quectel | 2,491.64 | 313.02 | 1,521.75 | -36.91 | | Hong Kong Quectel | 967.57 | -21.64 | 2,650.17 | 20.60 | | Singapore Quectel | 1,139.32 | -214.35 | 933.02 | -170.22 | Potential Risks The company faces key risks including intensified market competition, foreign exchange fluctuations, changes in international relations, and raw material market volatility, which it addresses through technological innovation, optimized management, foreign exchange monitoring, and strengthened supply chain management - The company faces four main risks: market competition risk, foreign exchange fluctuation risk, international relations change risk, and raw material market volatility risk[63][64] Corporate Governance This section outlines the company's corporate governance structure and practices Profit Distribution Plan The company's board of directors approved the 2024 interim profit distribution plan, proposing a cash dividend of 2.60 yuan (tax inclusive) per 10 shares to all shareholders - The 2024 interim profit distribution plan proposes a cash dividend of 2.60 yuan (tax inclusive) per 10 shares, based on the total share capital (excluding repurchased shares) on the equity distribution record date[65][66] Environmental and Social Responsibility This section details the company's commitment and actions regarding environmental protection and social responsibility Environmental Information The company and its subsidiaries are not classified as key polluting entities and had no environmental violations during the reporting period, actively fulfilling environmental responsibilities through compliance, daily operations, hazardous waste management, and carbon emission reduction initiatives like smart office energy saving, rainwater harvesting, and photovoltaic power generation - The company and its subsidiaries are not classified as key polluting entities and received no administrative penalties for environmental issues during the reporting period[67][68] - The company implements measures to reduce carbon emissions and resource waste, including new photovoltaic solar power generation projects, rainwater harvesting systems, and smart air conditioning and lighting control systems[69][70] Significant Matters This section covers important events and commitments related to the company's operations and governance Fulfillment of Commitments During the reporting period, the company's actual controller, shareholders, directors, supervisors, and senior management strictly fulfilled their commitments made during initial public offerings and refinancing, including share lock-up, avoidance of horizontal competition, reduction of related-party transactions, and share price stabilization - The company's controlling shareholder, actual controller, shareholders holding 5% or more of shares, directors, supervisors, and senior management have all timely and strictly fulfilled their various commitments[72] Significant Guarantees During the reporting period, the company primarily provided guarantees for its subsidiaries, with the outstanding guarantee balance for subsidiaries at the end of the period being 401.44 million yuan, representing 11.05% of the company's net assets, all for subsidiaries with a debt-to-asset ratio exceeding 70% Guarantee Status | Guarantee Status | Amount (million yuan) | | :--- | :--- | | Total Guarantees Provided to Subsidiaries During Reporting Period | 580.00 | | Total Outstanding Guarantees to Subsidiaries at Period End | 401.44 | | Total Guarantees as Percentage of Company's Net Assets (%) | 11.05 | Progress of Raised Funds Utilization The company raised a net amount of 1.061 billion yuan in March 2021, with cumulative investment reaching 1.071 billion yuan (100.96% of planned investment) by the end of the reporting period, and all fundraising projects, including the Global Smart Manufacturing Center, R&D Center Upgrade, and Smart Connected Vehicle Industrialization projects, have been completed and reached their intended usable state - As of the end of the reporting period, cumulative raised funds investment reached 1.071 billion yuan, with an investment progress of 100.96%, and all fundraising projects have been completed[88][90] Share Changes and Shareholder Information This section details changes in the company's share capital and provides information on its shareholders Shareholder Information As of the end of the reporting period, the company had 29,723 common shareholders, with the top two being the actual controller Qian Penghe (22.74% share) and Ningbo Quectel Investment Partnership (Limited Partnership) (6.52% share), acting in concert - As of the end of the reporting period, the company had a total of 29,723 common shareholders[92] Top Ten Shareholders | Shareholder Name | Shares Held at Period End (shares) | Proportion (%) | | :--- | :--- | :--- | | Qian Penghe | 60,175,557 | 22.74 | | Ningbo Quectel Investment Partnership (Limited Partnership) | 17,257,208 | 6.52 | | Hong Kong Securities Clearing Company Limited | 7,279,790 | 2.75 | | Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Juyuan Fund | 4,325,902 | 1.64 | | Ge Guilian | 4,266,970 | 1.61 | Preferred Shares Related Information This section confirms the absence of preferred shares related information for the company - The company has no preferred shares related information[96] Bonds Related Information This section confirms the absence of bonds related information for the company - The company has no corporate bonds or convertible corporate bonds related information[96] Financial Report This section presents the company's financial statements and detailed notes Financial Statements This chapter provides the company's unaudited consolidated and parent company financial statements for the first half of 2024, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity Consolidated Balance Sheet Key Items (June 30, 2024) | Item | Amount (yuan) | | :--- | :--- | | Total Assets | 11,385,691,030.82 | | Total Liabilities | 7,668,862,009.58 | | Owners' Equity Attributable to Parent Company | 3,730,263,610.00 | Consolidated Income Statement Key Items (Jan-Jun 2024) | Item | Amount (yuan) | | :--- | :--- | | Total Operating Revenue | 8,248,827,734.10 | | Operating Profit | 210,351,480.72 | | Total Profit | 208,024,075.28 | | Net Profit | 204,115,385.09 | | Net Profit Attributable to Parent Company Shareholders | 209,375,373.88 | Consolidated Cash Flow Statement Key Items (Jan-Jun 2024) | Item | Amount (yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | -335,989,539.88 | | Net Cash Flow from Investing Activities | -179,056,466.53 | | Net Cash Flow from Financing Activities | 135,378,522.70 | | Net Increase in Cash and Cash Equivalents | -384,934,282.03 | Notes to Consolidated Financial Statements This chapter provides detailed explanations for each account in the consolidated financial statements, including the composition of key items, aging analysis, and impairment provision accruals, with a focus on monetary funds, accounts receivable, inventories, fixed assets, construction in progress, short-term borrowings, and operating revenue and costs - Accounts receivable at period-end amounted to 2.191 billion yuan, an increase of approximately 30% from the beginning of the period, with a bad debt provision ratio of 2.01%[254] - Inventory book value at period-end was 3.617 billion yuan, an increase of 2.6% from the beginning of the period, with raw materials accounting for the largest proportion, and an inventory impairment provision of 88.05 million yuan at period-end[269] - Construction in progress at period-end was 156 million yuan, a 52.8% increase from the beginning of the period, primarily due to investment in the headquarters building project[281][282] - Operating revenue by region shows domestic revenue of 4.028 billion yuan and overseas revenue of 4.221 billion yuan, with overseas revenue accounting for over 50%[323]