GSAFETY(SZ:300523)2021-04-28 16:00Financial Performance - The company's operating revenue for Q1 2021 was ¥128,265,546.27, a decrease of 52.52% compared to ¥270,131,311.78 in the same period last year[7]. - The net profit attributable to shareholders was -¥78,036,712.83, representing a decline of 296.33% from -¥19,690,027.85 year-on-year[7]. - Basic and diluted earnings per share were both -¥0.34, a drop of 325.00% from -¥0.08 in the same period last year[7]. - The company reported a net profit attributable to shareholders of -¥78,036,712.83 for Q1 2021, a decline of 296.33% compared to the same period last year, reflecting increased investments in market and R&D[26]. - The net profit for the first quarter of 2021 was -56,599,892.93 CNY, compared to -44,906,066.40 CNY in the same period last year, representing an increase in net loss of approximately 26.0%[72]. - Operating profit for the first quarter was -57,280,139.80 CNY, which is a decline of about 26.6% from -45,269,510.89 CNY in the previous year[72]. - The company reported a significant increase in prepaid expenses, rising by 213.21% to CNY 68,830,836.55, mainly due to increased project payments[18]. - The company’s investment income decreased by 143.24% to CNY -1,278,017.88, primarily due to increased losses from associated companies[21]. - The company’s tax expenses dropped by 89.56% to CNY 661,943.37, reflecting a reduction in income tax across various subsidiaries[21]. Cash Flow and Assets - The net cash flow from operating activities was -¥252,281,268.94, a decrease of 32.74% compared to -¥190,061,914.52 in the previous year[7]. - Cash flow from operating activities showed a net outflow of -252,281,268.94 CNY, worsening from -190,061,914.52 CNY year-over-year[76]. - The total cash inflow from investment activities was 442,933,818.54 CNY, significantly higher than 428.00 CNY in the previous year, indicating a strong investment recovery[76]. - The total cash and cash equivalents at the end of the period decreased to 328,639,912.40 CNY from 411,492,549.48 CNY, reflecting a decline of approximately 20.1%[77]. - The company's total assets decreased to CNY 1,856,310,387.91 from CNY 1,967,255,194.77, a decline of 5.6%[64]. - The company's current assets decreased to CNY 2,382,577,552.55 from CNY 2,571,408,248.38, reflecting a reduction of about 7.4%[58]. - Cash and cash equivalents dropped to CNY 348,588,134.26 from CNY 469,248,550.25, indicating a decline of approximately 25.7%[58]. - The company's total liabilities decreased to CNY 794,454,989.97 from CNY 848,799,903.90, a reduction of 6.4%[64]. Shareholder Information - The top shareholder, China Telecom Group Investment Co., Ltd., holds 18.68% of the shares, totaling 43,459,615 shares[11]. - Net assets attributable to shareholders decreased by 4.90% to ¥1,506,790,773.48 from ¥1,584,495,830.90 at the end of the previous year[7]. - The company did not engage in any repurchase transactions among the top ten shareholders during the reporting period[12]. Research and Development - R&D expenses grew by 19.15% year-on-year, indicating a continued focus on developing core capabilities in high-end equipment manufacturing and safety products[25]. - The company completed the R&D of the "One Map" emergency management product, which provides GIS service support for emergency departments at provincial, municipal, and county levels[32]. - The company is developing a comprehensive decision-making system for fire rescue, which integrates various data sources to improve decision-making efficiency and market expansion[32]. Market Strategy and Expansion - The company is focusing on expanding its market presence and enhancing its product offerings, with ongoing investments in new technologies and projects[16]. - The company aims to enhance its comprehensive competitiveness and strengthen collaboration with China Telecom to drive high-quality growth in 2021[41]. - The company is actively developing AIOT products for urban safety, leveraging partnerships with China Telecom to enhance community safety solutions[39]. - The company has ongoing major contracts, including the "Integrated Public Safety Platform Project" in Angola, which is progressing normally and has seen the completion of key installations[28]. Risks and Challenges - The company faces risks related to industry policy adjustments, new business development, and overseas political and economic uncertainties, which could impact profitability[42][43]. - The company has identified risks related to accounts receivable due to the expansion of domestic and international business, which may lead to potential bad debt risks[48]. - The company experiences seasonal revenue fluctuations, with a significant portion of revenue concentrated in the second half of the year, particularly in Q4[44].