QCIOT(SH:688528)2021-08-24 16:00Financial Performance - The company achieved operating revenue of RMB 153.13 million, representing a year-on-year growth of 13.48% due to continuous customer expansion and increased sales of IoT smart gas meters[18]. - Basic earnings per share decreased by 54.55% to RMB 0.10 compared to the same period last year[18]. - The weighted average return on net assets dropped by 6.73 percentage points to 2.22%[18]. - The company reported a basic earnings per share after deducting non-recurring gains and losses of RMB 0.08, down 61.90% year-on-year[18]. - The diluted earnings per share also decreased by 54.55% to RMB 0.10 compared to the same period last year[18]. - The company achieved a net profit of 16.87 million RMB, a decrease of 38.31% year-on-year[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was 14.04 million RMB, down 47.17% year-on-year[19]. - The net cash flow from operating activities was -65.66 million RMB, compared to -25.01 million RMB in the previous year, indicating a significant decline[19]. - The company's total assets decreased by 2.22% to 968.32 million RMB compared to the end of the previous year[19]. - Operating costs increased by 24.22% year-on-year, reaching CNY 94.50 million, primarily due to increased product sales[104]. Research and Development - Research and development expenditure accounted for 11.77% of operating revenue, an increase of 3.59 percentage points from the previous year[18]. - The company increased its R&D investment, leading to a rise in R&D expenses, which contributed to the decline in net profit[19]. - The company achieved a 63.39% increase in R&D investment, totaling ¥18,027,708.77, compared to ¥11,033,558.21 in the previous period, with R&D expenses accounting for 11.77% of operating revenue[62][63]. - The number of R&D personnel increased to 150, representing 23.51% of the total workforce, up from 20.00% in the previous period[74]. - The average salary of R&D personnel rose to 7.48 million RMB, compared to 6.02 million RMB in the prior period[74]. - The company holds 135 invention patents, 134 utility model patents, and 10 design patents, demonstrating its strong R&D capabilities[37]. - The company developed an "intelligent gas meter control software" that enables real-time monitoring of flow, battery power, and gas leakage, enhancing safety management for users[46]. - The company is developing smart gas meters and has integrated NB IoT and ultrasonic technologies to enhance product competitiveness[72]. Market and Product Development - The company is focused on expanding its market presence and has increased its sales personnel, resulting in higher market development costs and personnel expenses[19]. - The main products include IoT smart gas meters and IC card smart gas meters, which have not undergone significant changes during the reporting period[23]. - The demand for smart gas meters is closely linked to the growth in natural gas consumption, mandatory replacements, and the development of smart city infrastructure[35]. - The market for IoT smart gas meters is expected to grow rapidly due to advancements in mobile IoT technology and urban infrastructure development[36]. - The company is expanding its product offerings to include smart water meters and smart thermal meters, aiming to establish comprehensive smart utility systems[38]. - The company achieved sales revenue of CNY 2.1798 million from IoT smart water meters and CNY 0.5132 million from smart flow meters during the reporting period[38]. Operational Efficiency and Risks - The company continues to face risks in its production and operation processes, as outlined in the risk factors section of the report[3]. - The company faces risks related to market competition, requiring continuous improvement in R&D and marketing strategies to maintain its competitive edge[95]. - The company faces risks from raw material price fluctuations, which accounted for over 70% of operating costs[98]. - The company is actively constructing a smart factory to enhance production efficiency and reduce costs[89]. Governance and Compliance - There were no significant changes in the company's governance structure or non-operating fund occupation by controlling shareholders[5]. - The company maintains a commitment to transparency and accuracy in its financial reporting, as stated by its management[3]. - The company strictly adheres to environmental regulations and has implemented measures to manage waste and emissions effectively[124]. - The company has committed to not transferring or managing shares for 12 months post-IPO and for 6 months after leaving the company[133]. Shareholder and Investment Policies - The company has established a profit distribution policy and a shareholder dividend return plan to enhance investor returns[141]. - The company plans to distribute cash dividends amounting to at least 10% of the distributable profits for the year[145]. - The company will ensure that the cumulative distributable profits are positive before implementing cash distributions[145]. - The company will actively compensate investors for losses incurred due to unfulfilled commitments, including stock investment losses and related fees[145]. - The company will implement measures to compensate investors for losses caused by any false statements in its IPO documents[142]. Financial Reporting and Audit - The financial statements were approved by the board of directors on August 24, 2021[192]. - The company adheres to the enterprise accounting standards, ensuring that financial statements accurately reflect its financial condition and operating results[197]. - The company's functional currency for accounting is Renminbi (RMB)[200].