Netac(SZ:300042)2021-04-26 16:00Financial Performance - The company's revenue for Q1 2021 was ¥498,168,732.81, representing a 78.30% increase compared to ¥279,405,817.51 in the same period last year[10]. - Net profit attributable to shareholders for Q1 2021 was ¥24,674,802.93, up 79.92% from ¥13,714,373.56 year-on-year[10]. - The net profit after deducting non-recurring gains and losses was ¥20,409,259.80, reflecting a significant increase of 119.24% compared to ¥9,309,121.27 in the previous year[10]. - The company's basic earnings per share for Q1 2021 was ¥0.1231, a 79.97% rise from ¥0.0684 in the same quarter last year[10]. - Operating revenue increased by RMB 218.7629 million, up 78.3% year-on-year, primarily due to increased product sales revenue[24]. - Cash received from sales of goods and services increased by RMB 194.9047 million, up 66.87% year-on-year, driven by growth in product sales revenue[25]. - The company reported a gross profit of CNY 28,624,631.08, which is a significant increase from CNY 15,660,447.13 in the previous year, representing a growth of 82.7%[155]. - The company's total equity reached CNY 915,785,157.62, up from CNY 900,557,509.71, indicating a growth of 1.9%[152]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,235,531,113.69, an increase of 4.78% from ¥1,179,133,606.27 at the end of the previous year[10]. - The company's total assets increased to CNY 1,176,687,397.74 from CNY 1,134,055,435.14, marking a growth of 3.8%[152]. - The total liabilities of the company were CNY 147,086,624.57, compared to CNY 115,614,088.78 at the end of 2020, which is an increase of approximately 27.2%[141]. - Current liabilities rose to CNY 256,518,961.91, up from CNY 233,293,417.90, which is an increase of 9.9%[152]. - Total liabilities increased from ¥115,614,088.78 to ¥120,272,707.48, indicating a rise of ¥4,658,618.70[186]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 19,775[13]. - The largest shareholder, Shanghai Yili Enterprise Development Co., Ltd., held 24.93% of the shares, amounting to 49,968,987 shares[13]. - The largest shareholder, Shanghai Yili, has pledged 49,875,000 shares, accounting for 99.81% of its total holdings, and has 49,968,987 shares frozen, representing 100% of its holdings[73]. - Shareholder Deng Guoshun reduced his holdings by 8.6769 million shares, which is 4.33% of the total share capital, and has a cumulative reduction of 5.354% since the company's listing[73]. Product Development and Market Strategy - The company launched new products such as the fingerprint-encrypted mobile solid-state drive Z11 and the fingerprint-encrypted high-speed flash drive US1 during the reporting period[28]. - The company upgraded storage products and enhanced brand image to improve overall product competitiveness during the reporting period[28]. - The company plans to enhance its product line to meet different consumer needs, including launching new DDR4 memory products[28]. - The company is actively developing NAND FLASH and DRAM storage products, with ongoing R&D for PCIe 4.0 NVMe SSDs and DDR4 gaming memory[33]. - New product launches include the RGB mobile SSD ZR and fingerprint-encrypted flash drives, addressing consumer demand for high-performance storage solutions[34]. Legal and Regulatory Matters - The company has filed lawsuits against Micron and other companies for patent infringement, with judgments requiring Micron to compensate the company a total of RMB 50,000 and reasonable expenses of RMB 6,000 in multiple cases[47][48][49][52][53]. - The company was awarded a total of RMB 15,000 in damages and RMB 50,000 in reasonable expenses from defendants in a separate patent infringement case, with a total case fee of RMB 23,600[55][57]. - The company received a notice from the National Intellectual Property Administration regarding a request for invalidation of its patent, which was granted acceptance on October 12, 2020[58]. - The company has filed a lawsuit against five defendants for infringing its invention patent, seeking a total compensation of RMB 98 million, up from the initial RMB 10 million[62]. Risk Management - The company is actively managing risks related to shareholder disagreements, which could impact operational management[71]. - The company is facing control risk due to significant changes in the shareholding structure, with the first major shareholder's shares entering judicial auction processes[77]. - The company acknowledges risks from new technologies such as cloud storage and computing, which threaten the mobile storage industry[83]. - The company is exposed to foreign exchange risks, particularly with the cost of imported flash memory chips, which are priced in USD; fluctuations in the RMB exchange rate could adversely affect product gross margins[90]. COVID-19 Impact - The ongoing COVID-19 pandemic has introduced uncertainties, including weakened domestic and international demand, extended customer payment cycles, and increased procurement price volatility[95]. - The company has implemented measures to enhance communication with customers, focus on less affected sales channels, and improve inventory management to mitigate pandemic-related risks[95]. Investment and Fund Management - The total amount of raised funds is 61,198.32 million CNY, with no changes in usage reported[119]. - The company has invested a total of 24,651.91 million CNY in various projects, with specific projects like the expansion of the flash application and mobile storage technology research platform being terminated due to performance decline[119]. - The company has allocated 10,000 million CNY for repaying bank loans and another 10,000 million CNY for supplementing working capital[119]. - The company has extended the investment period for previously approved financial products to February 2, 2017, allowing for continued use of up to RMB 42 million of over-raised and idle funds[124].