LME(SH:688589)2022-08-18 16:00Financial Performance - The company plans to distribute a cash dividend of 2.00 RMB per 10 shares, totaling 20,000,000 RMB, which accounts for 47.58% of the net profit attributable to shareholders [5]. - The company has not yet achieved profitability since its listing [4]. - In 2021, the company achieved operating revenue of CNY 360.07 million, a year-on-year increase of 66.99% [25]. - The net profit attributable to shareholders was CNY 42.04 million, up 51.10% from the previous year [26]. - The net cash flow from operating activities increased by 1,275.55%, reaching CNY 37.30 million [26]. - The net profit attributable to the parent company after deducting non-recurring gains and losses was CNY 29.13 million, reflecting a growth of 38.92% year-on-year [40]. - Operating costs rose to 21,041.39 million RMB, an increase of 94.66% year-on-year, primarily due to increased sales volume and product variety [148]. - The gross profit margin for the main business was 41.44%, down by 8.28 percentage points from the previous year [152]. Business Operations and Strategy - The company has a total share capital of 100,000,000 shares as of December 31, 2021 [5]. - The company has received a standard unqualified audit opinion from Tianjian Accounting Firm [8]. - The company does not have any non-operating fund occupation by controlling shareholders or related parties [7]. - The company does not have any violations of decision-making procedures for providing guarantees [7]. - The company has not disclosed any special arrangements for corporate governance [6]. - The company’s future plans and development strategies are subject to investment risks and do not constitute a commitment to investors [6]. - The company actively utilized idle funds for low-risk financial investments, contributing to increased investment income during the reporting period [26]. - The company has established a reliable supply chain management system, ensuring strong support from suppliers amid increasing chip demand, which enhances its market competitiveness [126]. Research and Development - The company invested CNY 56.35 million in R&D, accounting for 15.65% of its operating revenue, indicating a steady increase in R&D investment [42]. - The company employed 134 R&D personnel, making up 50.57% of its total workforce, with 32 holding master's degrees or higher [38]. - The company holds 30 integrated circuit layouts, 85 software copyrights, and 51 valid patents, including 44 invention patents, showcasing its strong design and innovation capabilities [38]. - The company has significantly increased R&D investment, focusing on smart grid solutions and IoT technologies, including the development of new chips and communication modules [45]. - The R&D team is led by Dr. Liu Kun, who has over 30 years of experience in communication technology and has contributed to national standards in power line communication [119]. - The company has established a comprehensive R&D system with dedicated centers for algorithm research, chip design, and smart application development, improving efficiency and reducing product development cycles [120]. Market Position and Competitive Edge - The company aims to become a leading enterprise in the IoT communication chip sector, focusing on technology, product, and market innovation [37]. - The company has established a leading position in comprehensive energy management, particularly in the high-speed rail sector, with a significant market share [60]. - The company is recognized as a key supplier in the smart lighting market, having contributed to the establishment of the first national standard for low-voltage power line communication in urban street lighting [92]. - The company has established itself as a leader in the power line communication sector and has been a key contributor to national standards, including GB/T31983-31, which was officially issued in 2017 [121]. - The company is actively pursuing opportunities in the 5G application field and has partnered with leading 5G base station manufacturers for smart control applications [130]. Risks and Challenges - The company has detailed potential risks in the annual report, which can be found in the "Management Discussion and Analysis" section [4]. - The company faces risks related to core technology leakage and talent retention, which could impact its R&D capabilities [135][136]. - The cyclical nature of procurement demand in the power grid market poses a risk to the company's revenue stability [136]. - The company is exposed to fluctuations in raw material and outsourcing prices, which could adversely affect its financial performance [138]. Awards and Recognition - In 2021, the company received multiple industry awards, including the NICT Innovation Award and the Aladdin Lamp Award for its PLBUS power line communication technology [46][47]. - The company has been recognized as a national "little giant" enterprise, reflecting its strong innovation capabilities [108]. - The company received multiple awards in 2021, including the national-level "Little Giant" title and recognition as an excellent domestic brand in the electronic components industry [93]. Future Outlook - The company is positioned to benefit from the national "dual carbon" strategy, which aims for carbon neutrality by 2060, driving demand for energy efficiency management projects [97]. - The company is actively developing solutions for the photovoltaic sector, focusing on intelligent operation and maintenance, with ongoing collaborations with multiple manufacturers [58]. - The company is focusing on the development of a "Wowo+ Interconnected Smart Home" standard to enhance the smart home market, leveraging its PLC chip technology [123].