Quectel(SH:603236)2023-04-24 16:00Key Financial Highlights This section provides an overview of the company's key financial performance and indicators for the reporting period Overview of Key Financial Data and Indicators In Q1 2023, the company experienced stable revenue growth but a significant net loss due to market conditions and increased R&D, while operating cash flow remained robust Q1 2023 Core Financial Indicators | Indicator | Current Period | Year-over-Year Change (%) | | :--- | :--- | :--- | | Operating Revenue | 3.14 billion CNY | 2.58% | | Net Profit Attributable to Shareholders of Listed Company | -134.91 million CNY | -209.14% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Items) | -145.64 million CNY | -237.59% | | Net Cash Flow from Operating Activities | 278.47 million CNY | Not Applicable | | Basic Earnings Per Share (CNY/share) | -0.71 CNY | -209.23% | | Weighted Average Return on Net Assets | -3.69% | Decreased by 7.47 percentage points | - The significant decline in net profit is primarily due to two factors: slower revenue growth influenced by market conditions, and substantial increases in R&D investment for new businesses and product lines to prepare for future development37 - Net cash flow from operating activities performed well, mainly benefiting from a higher collection rate of customer payments in the current period, which increased operating cash inflows37 Non-recurring Gains and Losses Total non-recurring gains and losses for the period amounted to 10.74 million CNY, primarily from government subsidies and fair value changes in financial assets/liabilities Q1 2023 Major Non-recurring Gains and Losses Items | Item | Amount (CNY) | | :--- | :--- | | Government subsidies recognized in current profit/loss | 6.19 million | | Gains/losses from fair value changes of transactional financial assets/liabilities and investment income | 5.10 million | | Net non-operating income and expenses | -1.56 million | | Gains/losses on disposal of non-current assets | -16.42 thousand | | Total | 10.74 million | Shareholder Information This section details the company's shareholder structure, including the total number of shareholders and the holdings of its top ten shareholders Total Number of Shareholders and Top Ten Shareholders As of the reporting period end, the company had 20,957 common shareholders, with controlling shareholder Mr. Qian Penghe holding 22.74%, indicating a relatively concentrated equity structure dominated by individuals and investment institutions among the top ten - As of the end of the reporting period, the company had a total of 20,957 common shareholders38 Top Ten Shareholders' Shareholding | Shareholder Name | Number of Shares | Shareholding Ratio (%) | | :--- | :--- | :--- | | Qian Penghe | 42,982,541 | 22.74 | | Ningbo Yiyuan Investment Partnership (Limited Partnership) | 12,326,577 | 6.52 | | Hong Kong Securities Clearing Company Limited | 3,703,201 | 1.96 | | Shanghai Xingzhi Venture Capital Co., Ltd. | 3,196,627 | 1.69 | | Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Juyuan Fund | 3,089,930 | 1.64 | | Ge Guilian | 3,047,836 | 1.61 | | Penghua Fund - China Life... | 2,706,673 | 1.43 | | Ge Weidong | 2,600,000 | 1.38 | | Zhang Dong | 2,534,800 | 1.34 | | China Resources SZITIC Trust Co., Ltd. -... | 2,343,530 | 1.24 | - Controlling shareholder Mr. Qian Penghe is also the executive partner of Ningbo Yiyuan Investment Partnership (Limited Partnership), the second largest shareholder, holding a 0.43% stake, indicating a concerted action relationship40 Quarterly Financial Statements This section presents the company's consolidated financial statements for the quarter, including the balance sheet, income statement, and cash flow statement Consolidated Balance Sheet As of March 31, 2023, total assets were 10.65 billion CNY, up 3.65% from year-end, total liabilities were 7.05 billion CNY with a 66.2% debt-to-asset ratio, and equity attributable to shareholders was 3.60 billion CNY, down 3.20% due to the current period's net loss Key Balance Sheet Items | Item | March 31, 2023 (CNY) | December 31, 2022 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 10.65 billion | 10.27 billion | 3.65% | | Total Liabilities | 7.05 billion | 6.55 billion | 7.57% | | Total Equity Attributable to Parent Company Shareholders | 3.60 billion | 3.72 billion | -3.20% | Consolidated Income Statement In Q1 2023, the company achieved 3.14 billion CNY in operating revenue, up 2.58% year-over-year, but recorded a net loss attributable to parent company shareholders of 134.91 million CNY, a 209.14% decrease, primarily due to significant increases in costs and expenses, especially R&D Core Income Statement Data (Q1 2023 vs Q1 2022) | Item | Q1 2023 (CNY) | Q1 2022 (CNY) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 3.14 billion | 3.06 billion | 2.58% | | Total Operating Costs | 3.29 billion | 2.95 billion | 11.46% | | R&D Expenses | 439.38 million | 275.66 million | 59.39% | | Operating Profit | -132.42 million | 123.14 million | -207.55% | | Net Profit Attributable to Parent Company Shareholders | -134.91 million | 123.61 million | -209.14% | - R&D expenses increased by 59.39% year-over-year, from 275.66 million CNY to 439.38 million CNY, a key factor contributing to the significant decline in current period profit24 Consolidated Cash Flow Statement During the reporting period, net cash flow from operating activities significantly improved to 278.47 million CNY from -15.68 million CNY year-over-year, driven by strong sales collections, while net cash inflow from financing activities was 261.29 million CNY mainly from bank borrowings, increasing period-end cash and equivalents to 2.69 billion CNY Key Cash Flow Statement Data (Q1 2023 vs Q1 2022) | Item | Q1 2023 (CNY) | Q1 2022 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 278.47 million | -15.68 million | | Net Cash Flow from Investing Activities | -39.56 million | -84.89 million | | Net Cash Flow from Financing Activities | 261.29 million | 219.19 million | | Net Increase in Cash and Cash Equivalents | 490.72 million | 116.43 million | Accounting Standard Change Adjustments Effective 2023, the company adopted Accounting Standard Interpretation No. 16 regarding deferred income tax for assets and liabilities from specific transactions, retrospectively adjusting the opening 2023 financial statements with minor impacts on retained earnings and deferred tax assets - The company retrospectively adjusted its consolidated balance sheet as of January 1, 2023, due to the initial adoption of Accounting Standard Interpretation No. 1628 Impact of Accounting Standard Change on Opening Financial Statements | Item | Before Adjustment (CNY) | After Adjustment (CNY) | Adjustment Amount (CNY) | | :--- | :--- | :--- | :--- | | Deferred Income Tax Assets | 20.84 million | 20.84 million | -5.79 thousand | | Retained Earnings | 1.27 billion | 1.27 billion | -5.79 thousand | | Total Assets | 10.27 billion | 10.27 billion | -5.79 thousand |