Routon(SH:600355)2021-04-29 16:00Important Notice Statement on Truthfulness, Accuracy, and Completeness of the Report The company's Board of Directors, Supervisory Board, and senior management ensure the truthfulness, accuracy, and completeness of this quarterly report and confirm it has not been audited - The Board of Directors, Supervisory Board, and senior management guarantee the report's content is true, accurate, and complete, free from false records, misleading statements, or major omissions7 - This company's first-quarter report is unaudited7 Company Profile Key Financial Data In Q1 2021, operating revenue grew 104.28% to RMB 65.74 million, net loss narrowed by 93.68% to RMB 0.53 million, and operating cash flow turned positive, primarily due to pandemic recovery Key Financial Indicators | Indicator | Current Period | End of Prior Year/Prior Period | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets (RMB) | 431,152,418.61 | 442,334,697.06 | -2.53% | | Net Assets Attributable to Listed Company Shareholders (RMB) | 259,039,857.96 | 259,567,139.44 | -0.20% | | Operating Revenue (RMB) | 65,740,924.17 | 32,181,759.12 | 104.28% | | Net Profit Attributable to Listed Company Shareholders (RMB) | -527,281.48 | -8,338,885.78 | 93.68% | | Net Profit Attributable to Parent Company Shareholders After Non-recurring Items (RMB) | -506,131.52 | -8,580,167.72 | 94.10% | | Net Cash Flow from Operating Activities (RMB) | 10,890,470.89 | -23,989,167.50 | 145.40% | | Basic Earnings Per Share (RMB/share) | -0.001 | -0.017 | 94.12% | Non-recurring Gains and Losses | Non-recurring Gains and Losses Item | Amount for Current Period (RMB) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -18,640.14 | | Government Grants Included in Current Profit/Loss | 15,026.70 | | Other Non-operating Income and Expenses Apart from the Above | -17,536.52 | | Total | -21,149.96 | Shareholder Information As of period-end, the company had 35,454 shareholders, with top holders Zhang Xueyang and Luo Jianfeng holding 12.19% and 3.84%, and the employee stock plan reducing its stake by 0.07% - As of the end of the reporting period, the company had 35,454 shareholders10 Top Shareholders | Shareholder Name | Number of Shares Held (shares) | Percentage of Total Share Capital (%) | | :--- | :--- | :--- | | Zhang Xueyang | 60,000,000 | 12.19 | | Luo Jianfeng | 18,900,000 | 3.84 | | Xia Chongyang | 12,320,000 | 2.50 | | Cai Yuanhong | 6,003,874 | 1.22 | | Jinglun Electronics Co., Ltd. - First Phase Employee Stock Ownership Plan | 5,970,000 | 1.21 | - The company's first phase employee stock ownership plan reduced its holdings by 330,000 shares through the secondary market on January 12, 2021, representing 0.07% of the company's total share capital, with its stake decreasing to 1.21% after the reduction11 Significant Events Analysis of Significant Changes in Key Financial Statement Items and Indicators Key financial indicators changed significantly due to pandemic recovery, with revenue and costs doubling, operating cash flow turning positive by 145.40%, and financing cash flow declining 153.30% due to loan repayments Balance Sheet Item Changes | Balance Sheet Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Prepayments | 71.53 | Increase in prepayments for ID card reader raw material purchases | | Other Receivables | 100.86 | Subsidiary Shanghai Baomaikes newly paid project facility fees | | Notes Payable | 86.80 | Increase in payments made via notes payable | | Taxes Payable | -46.70 | Decrease in VAT payable | Income Statement Item Changes | Income Statement Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Operating Revenue | 104.28 | Prior period significantly impacted by pandemic, current period business segments recovered growth | | Operating Cost | 114.79 | Increased with operating revenue recovery | | Financial Expenses | 991.05 | Increase in interest expenses on short-term bank loans | | Credit Impairment Loss | -2,072.19 | Decrease in accounts receivable due to increased customer collections | Cash Flow Statement Item Changes | Cash Flow Statement Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 145.40 | Increased sales, increased customer collections, and reduced settlement of maturing bank acceptance bills | | Net Cash Flow from Investing Activities | -117.42 | Increase in fixed asset purchases | | Net Cash Flow from Financing Activities | -153.30 | Repayment of some bank loans and net increase in short-term loans in prior period | Progress of Significant Events The dissolution and liquidation of subsidiary Shanghai Jinglun Communication Technology Co., Ltd., initiated in 2008, remains ongoing, awaiting the court's final ruling - The bankruptcy liquidation process for the subsidiary "Shanghai Jinglun Communication Technology Co., Ltd." is still awaiting the court's final ruling since the Board of Directors approved the dissolution proposal in 200817 Appendix Financial Statements This section includes the company's unaudited consolidated and parent company financial statements as of March 31, 2021, specifically the balance sheets, income statements, and cash flow statements Consolidated Balance Sheet As of March 31, 2021, consolidated total assets were RMB 431.15 million (down 2.53%), total liabilities RMB 173.30 million, and net assets attributable to shareholders RMB 259.04 million (down 0.20%) | Item | March 31, 2021 (RMB) | December 31, 2020 (RMB) | | :--- | :--- | :--- | | Total Assets | 431,152,418.61 | 442,334,697.06 | | Total Liabilities | 173,298,593.14 | 183,953,590.11 | | Total Equity Attributable to Parent Company Owners | 259,039,857.96 | 259,567,139.44 | Parent Company Balance Sheet As of March 31, 2021, parent company total assets increased to RMB 465.52 million, with total liabilities at RMB 201.58 million and total owner's equity at RMB 263.94 million | Item | March 31, 2021 (RMB) | December 31, 2020 (RMB) | | :--- | :--- | :--- | | Total Assets | 465,519,825.36 | 448,803,312.94 | | Total Liabilities | 201,577,034.44 | 185,990,000.84 | | Total Owner's Equity | 263,942,790.92 | 262,813,312.10 | Consolidated Income Statement In Q1 2021, operating revenue grew 104.28% to RMB 65.74 million, and net loss attributable to parent shareholders significantly narrowed to RMB 0.527 million | Item | Q1 2021 (RMB) | Q1 2020 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 65,740,924.17 | 32,181,759.12 | | Operating Profit | -308,555.52 | -8,257,001.07 | | Total Profit | -328,226.32 | -8,256,201.07 | | Net Profit | -527,281.48 | -8,338,885.78 | | Net Profit Attributable to Parent Company Shareholders | -527,281.48 | -8,338,885.78 | Parent Company Income Statement In Q1 2021, parent company operating revenue grew 141.2% to RMB 56.78 million, achieving a net profit of RMB 1.13 million from a prior-year loss | Item | Q1 2021 (RMB) | Q1 2020 (RMB) | | :--- | :--- | :--- | | Operating Revenue | 56,784,002.06 | 23,540,890.19 | | Operating Profit | 1,127,549.62 | -6,903,083.45 | | Total Profit | 1,129,478.82 | -6,902,283.45 | | Net Profit | 1,129,478.82 | -6,902,283.45 | Consolidated Cash Flow Statement In Q1 2021, operating cash flow significantly improved to RMB 10.89 million (up 145.4%), financing cash flow was RMB 16.93 million outflow, and cash equivalents decreased by RMB 6.53 million | Item | Q1 2021 (RMB) | Q1 2020 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 10,890,470.89 | -23,989,167.50 | | Net Cash Flow from Investing Activities | -500,964.63 | -230,412.24 | | Net Cash Flow from Financing Activities | -16,925,393.87 | 31,756,481.02 | | Net Increase in Cash and Cash Equivalents | -6,534,980.40 | 7,539,078.39 | Parent Company Cash Flow Statement In Q1 2021, parent company operating cash flow was RMB -4.15 million (vs. RMB 0.57 million inflow prior year), with financing cash outflow of RMB 1.69 million | Item | Q1 2021 (RMB) | Q1 2020 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -4,147,324.81 | 567,180.17 | | Net Cash Flow from Investing Activities | -60,104.89 | 13,523.05 | | Net Cash Flow from Financing Activities | -1,693,831.37 | 18,780,140.19 | | Net Increase in Cash and Cash Equivalents | -5,901,187.32 | 19,361,014.00 |