QCIOT(SH:688528)2022-04-27 16:00Financial Performance - The company achieved operating revenue of CNY 305.68 million, a year-on-year increase of 1.19% compared to CNY 302.08 million in 2020[20]. - The net profit attributable to shareholders was CNY 29.20 million, representing a significant decrease of 36.73% from CNY 46.16 million in 2020[20]. - The net profit after deducting non-recurring gains and losses was CNY 17.76 million, down 57.69% from CNY 41.98 million in 2020[20]. - The company's cash flow from operating activities showed a negative net amount of CNY -27.02 million, compared to CNY -2.52 million in 2020[20]. - The basic earnings per share decreased by 45.16% to CNY 0.17 from CNY 0.31 in 2020[21]. - The weighted average return on equity dropped to 3.87%, a decrease of 4.95 percentage points from 8.82% in 2020[21]. - The total assets at the end of 2021 were CNY 990.49 million, a slight increase of 0.02% from CNY 990.28 million at the end of 2020[20]. - The company achieved operating revenue of 30,567.72 million yuan, a year-on-year increase of 1.19%, while net profit attributable to shareholders decreased by 36.73% to 2,920.33 million yuan[33]. - The company reported a total revenue of 1.5 billion in 2021, representing a year-over-year growth of 15%[172]. Research and Development - The R&D investment accounted for 12.31% of operating revenue, an increase of 4.27 percentage points from 8.04% in 2020[22]. - R&D expenses reached 3,761.82 million yuan, a 54.85% increase compared to the previous year, representing 12.31% of total revenue[35]. - The company has added 7 invention patents, 54 utility model patents, and 38 software copyrights during the reporting period, enhancing its intellectual property portfolio[35]. - The company is focused on the development of IoT gas meters, smart water meters, and flow meters, integrating core technologies in gas measurement and control with IoT[72]. - The company is committed to continuous innovation, as evidenced by the diverse range of patents obtained, including those for low-power load circuits and anti-reverse connection indicators[66]. - The company has established a talent strategy plan to support its development strategy and ensure the achievement of management goals[193]. Market and Competition - The company faced challenges due to intensified market competition and the impact of the COVID-19 pandemic, resulting in a decline in product prices and gross margins[22]. - The company focused on expanding its market presence among major clients, leading to increased marketing expenses[22]. - The company is focused on expanding its market presence through technological innovation and strategic partnerships in the smart utility sector[57]. - The company aims to enhance its core competitiveness by optimizing R&D resource allocation and focusing on market-oriented R&D strategies, developing standardized and modular IoT smart products[154]. - The company is expanding its international market presence, leveraging enhanced product competitiveness through technological advancements[74]. Governance and Management - The board of directors held 8 meetings in 2021, approving 25 proposals, ensuring effective governance and decision-making processes[164]. - The supervisory board convened 4 meetings in 2021, reviewing 14 proposals, maintaining oversight of financial and operational compliance[165]. - The company has established a complete governance structure with clear responsibilities among its decision-making, supervisory, and management bodies[160]. - The company has not provided guarantees or financial assistance to its controlling shareholders or related parties, ensuring independence in operations[162]. - The company has a complete "three meetings and one layer" management system that operates independently while effectively balancing each other[167]. Cash Dividend and Share Capital - The company plans to distribute a cash dividend of RMB 0.60 per 10 shares, totaling RMB 10,080,000, which represents 34.52% of the net profit attributable to shareholders for 2021[5]. - As of December 31, 2021, the total share capital of the company was 168,000,000 shares[5]. - The cash dividend policy emphasizes a stable and sustainable return to investors while ensuring the company's ongoing operational capability[195]. - The company’s cash dividend proposal for 2021 is subject to approval at the annual shareholders' meeting[198]. Risks and Challenges - The company has outlined potential risks in its operations, which are detailed in the management discussion and analysis section[4]. - The company faces risks related to market competition, requiring ongoing enhancement of R&D capabilities and marketing strategies to maintain its competitive edge[104]. - The company is exposed to industry risks, including regulatory changes that could impact production and operational stability[112]. - The company faces risks related to potential changes in tax incentives for high-tech enterprises, which could adversely affect profitability[111]. Production and Operations - The company produced a total of 1,453,607 gas and water meters, reflecting an 8.75% increase in production volume compared to 2020[36]. - The production model is based on "sales-driven production," allowing the company to adapt to market demand and sales forecasts effectively[46]. - The company’s procurement process involves rigorous supplier qualification and product testing to ensure quality and reliability[2]. - The company has implemented a comprehensive quality management system to ensure the reliability and safety of its products[96]. Employee and Talent Management - The company employed a total of 683 staff members, with 337 in production, 111 in sales, 157 in technical roles, 12 in finance, and 66 in administration[190]. - The educational background of employees includes 31 with master's degrees, 234 with bachelor's degrees, and 418 with diplomas or below, totaling 683[191]. - The company implements a performance-based compensation policy, aligning employee income growth with company performance[192]. - The training program includes onboarding for new employees, system training, safety and environmental training, career development training, and professional skills training[193].