InHand Networks(SH:688080)2022-06-10 16:00Financial Performance - The company reported that it has not achieved profitability since its listing [4]. - The company achieved operating revenue of CNY 449,539,752.31 in 2021, representing a 44.63% increase compared to the previous year [18]. - Net profit attributable to shareholders reached CNY 104,948,778.41, a significant increase of 159.65% year-on-year [18]. - The net profit after deducting non-recurring gains and losses was CNY 70,987,238.45, up 119.73% from the previous year [18]. - Basic earnings per share were CNY 2.00, reflecting a 150.00% increase compared to CNY 0.80 in 2020 [20]. - The weighted average return on equity increased to 15.05%, up from 6.95% in the previous year [20]. - The company's net assets attributable to shareholders increased by 14.81% to CNY 746,594,840.62 at the end of 2021 [18]. - The net cash flow from operating activities was CNY 38,537,423.06, down 44.53% from the previous year [18]. - The company achieved a significant increase in net profit after deducting non-recurring gains, reaching 70.99 million yuan, a year-on-year growth of 119.73% [30]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 1.4 per 10 shares, totaling RMB 7,340,030.04, which represents 10.34% of the net profit attributable to shareholders after deducting non-recurring gains and losses [5]. - The total number of shares for the dividend distribution is based on 52,428,786 shares [5]. - The independent directors have expressed their independent opinions on the profit distribution plan, which requires approval at the annual general meeting [5]. Research and Development - Research and development expenses accounted for 10.93% of operating revenue, a decrease of 1.66 percentage points from the previous year [20]. - The total R&D investment for the year reached ¥49,136,798.14, an increase of 25.57% compared to the previous year [96]. - R&D investment accounted for 10.93% of operating revenue, down from 12.59% in the previous year, indicating a decrease of 1.66 percentage points [96]. - The company has developed core technologies such as the INOS network operating system and edge computing technology, which are now implemented in its main business products [109]. - The company emphasizes continuous R&D in core technologies such as industrial communication and cloud computing, maintaining a competitive edge in the market [81]. Market and Industry Trends - The global industrial IoT market is projected to grow from approximately $64 billion in 2018 to over $90 billion by 2023, with a CAGR of 7.39% [51]. - The number of connected industrial IoT devices is expected to increase from 2.4 billion in 2016 to 13.8 billion by 2025, a fivefold increase [52]. - The smart city initiative is leveraging new information technologies to improve urban management and enhance citizens' quality of life, with a wide range of application scenarios [66]. - The industrial Internet is expected to accelerate the transformation of traditional industries, supported by national strategies and policies promoting smart manufacturing [65]. Operational Risks and Challenges - The company has detailed various operational risks and corresponding countermeasures in the report [4]. - The company faces risks related to rapid technological updates and high personnel turnover in the IoT industry, which could impact future operations [120][121]. - The company is exposed to raw material procurement risks, particularly concerning the supply and price volatility of key components like chips [125][126]. - The competitive landscape in the IoT industry is intensifying, which may adversely affect product pricing, gross margins, and market share [124]. - The ongoing global economic uncertainties, including the impact of the COVID-19 pandemic and geopolitical tensions, pose risks to the company's operations [131]. Product Development and Innovation - The company launched new SaaS services, enhancing its digital and intelligent product offerings [34]. - The company expanded its product line to meet diverse industrial IoT application scenarios, including industrial-grade LTE routers and AIoT computing platforms [33]. - The company has launched multiple new products in the industrial router product line, including 5G-enabled models, to meet diverse market demands [86]. - The company has developed a proprietary operating system, INOS, which now supports 5G networks, maintaining its industry-leading position [84]. - The company is developing intelligent edge computing gateways for industrial internet scenarios, with a focus on supporting various industrial data collection protocols and communication technologies [100]. Corporate Governance and Compliance - The company has not faced any non-operating fund occupation by controlling shareholders or related parties [7]. - There are no violations of decision-making procedures regarding external guarantees [7]. - The company has not disclosed any special arrangements for corporate governance [7]. - The report includes a standard unqualified audit opinion from the accounting firm Xin Yong Zhong He [5]. Marketing and Sales Strategy - The digital marketing system was strengthened, enhancing brand image and efficiency through online promotions and events [36]. - The company is focusing on digital marketing strategies to create efficient online and offline touchpoints, enhancing user engagement and data collection [191]. - The company is enhancing its e-commerce platforms to reduce costs and improve efficiency, aiming to increase brand visibility and create more business opportunities [193]. - Approximately 30% of the company's total sales revenue comes from overseas markets, indicating significant potential for global expansion [195]. Financial Position and Assets - Cash and cash equivalents at the end of the period amounted to 494.65 million, accounting for 57.14% of total assets, an increase of 4.53% compared to the previous period [169]. - Accounts receivable increased to 130.87 million, representing 15.12% of total assets, with a growth of 15.71% due to increased sales revenue [169]. - Inventory rose significantly by 70.85% to 104.97 million, accounting for 12.13% of total assets, primarily due to supply chain constraints and increased stockpiling of key materials [169]. - The company's long-term equity investments reached 24.45 million, a substantial increase of 3,923.91% due to the dilution of equity in a subsidiary [169].