Company code: Quectel Wireless Solutions Co.Ltd(603236) company abbreviation: Quectel Wireless Solutions Co.Ltd(603236) Quectel Wireless Solutions Co.Ltd(603236)
Summary of annual report 2021
Section I important tips
1 the summary of this annual report comes from the full text of the annual report. In order to fully understand the company’s operating results, financial status and future development plan, investors should go to www.sse.com com. cn. The website carefully reads the full text of the annual report. 2. The board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee that the contents of the annual report are true, accurate and complete without false records, misleading statements or major omissions, and bear individual and joint legal liabilities. 3. All directors of the company attend the board meeting. 4. Lixin Certified Public Accountants (special general partnership) issued a standard unqualified audit report for the company. 5. The profit distribution plan or the plan of converting accumulation fund into share capital in the reporting period adopted by the resolution of the board of directors
The sixth meeting of the third session of the board of directors of the company deliberated and approved the proposal on the company’s profit distribution and conversion of capital reserve into share capital in 2021. The company plans to distribute cash dividends of RMB 7.40 (including tax) for every 10 shares to all shareholders registered on the equity registration date based on the total share capital registered on the equity distribution equity registration date, and convert capital reserve into 3 shares for every 10 shares to all shareholders. The plan is yet to be considered and approved by the general meeting of shareholders of the company.
Section II basic information of the company
1 company profile
Company stock profile
Stock abbreviation before stock exchange listing
A-share Shanghai Stock Exchange Quectel Wireless Solutions Co.Ltd(603236) Quectel Wireless Solutions Co.Ltd(603236) –
Contact person and contact information secretary of the board of directors securities affairs representative
Name: Zheng Lei, Wang Fan
Office address: Building 5, science and technology oasis 3, phase 1016, Tianlin Road, Minhang District, Shanghai
Tel: 021510862366778
E-mail [email protected]. [email protected].
2. Introduction to the company’s main business in the reporting period
In recent years, with the continuous emergence of downstream application scenarios, the communication module industry is expected to develop continuously and stably for a long time.
1. Internet of things market
According to the forecast data of ABI research 2021q3, the number of Internet of things connections is expected to reach 23.1 billion by 2026. In addition, according to the latest data of ABI research in 2022, in 2021 Quectel Wireless Solutions Co.Ltd(603236) in the shipping market share of M2M cellular module suppliers reached 38%.
Unit: millions of connections chart statistics and forecast of global Internet of things connection scale
Data source: ABI research 2. Cellular Internet of things market
According to Ericsson’s “Ericsson mobility report” in November 2021, the number of IOT terminal connections using cellular communication will exceed 5 billion in 2027. Among them, 2G and 3G will gradually withdraw, while the coverage of Nb IOT, cat-m, 4G and 5g will continue to increase.
Figure statistics and forecast of global cellular Internet of things connection scale
Data source: Ericsson “Ericsson mobility report” 3. 5g Market
On July 5, 2021, the ten departments issued the notice on printing and distributing the 5g application “sailing” action plan (20212023) (hereinafter referred to as the “notice”), which proposed the overall goal of 2023: by 2023, China’s 5g application development level will be significantly improved and its comprehensive strength will continue to increase. (1) Key indicators of 5g application have been greatly improved. The penetration rate of 5g individual users exceeds 40%, and the number of users exceeds 560 million. 5g network access traffic accounts for more than 50%, and the use efficiency of 5g network is significantly improved. The average annual growth rate of 5g Internet of things end users exceeds 200%. (2) 5g application in key areas has achieved remarkable results. In the field of personal consumption, a number of new businesses, new models and new formats of “5g +” new consumption have been created, and the user’s sense of gain has been significantly improved. In the vertical industry, the 5g application penetration rate of large industrial enterprises exceeds 35%, the 5g application in power, mining and other fields has achieved large-scale replication and promotion, and the pilot scope of 5g + vehicle networking has been further expanded to promote the digital transformation and upgrading of traditional industries such as agriculture and water conservancy. In the field of social and people’s livelihood, build a number of 5g + smart education, 5g + smart medical and 5g + cultural tourism model projects, and further improve the construction level of 5g + smart city. Create more than 100 5g application benchmarks in each key industry. (3) The ecological environment of 5g application has been continuously improved. The mechanism of cross sectoral, cross industry and cross domain coordination and linkage has been preliminarily established, and a 5g application financing innovation model guided by government departments, driven by leading enterprises and coordinated by small and medium-sized enterprises has been formed.
Cultivate a number of influential 5g application solution suppliers and form more than 100 5g application solutions. Complete the 5g application standard system framework of basic commonalities and key industries, and develop more than 30 key industry standards. (4) The supporting capacity of key infrastructure has been significantly enhanced. 5g network coverage has been continuously improved. There are more than 18 5g base stations per 10000 people, and more than 3000 5g industry virtual private networks have been built. Build a number of 5g integrated application innovation centers, and further enhance the capacity of public service platforms for application innovation. 5g application security capability has been further improved, 10-20 5g application security innovation demonstration centers have been built, 3-5 regional demonstration benchmarks have been established, and a security system suitable for 5g application development has been basically formed.
The state has accelerated the construction of 5g network and Internet of things through various relevant guiding policies. The application of Internet of things based on the integration of 5g communication technology and vertical industries has been continuously expanded, various business needs have been gradually explored and refined, and the market demand has grown strongly. Communication module is the core component of various terminals in the Internet of things industry to realize communication functions. For the booming 5g industry in China and the world, the company provides multi platform 5g communication module, which can meet the needs of different customers and help the development of 5g industry.
4. Downstream applications
Wireless communication module has a wide range of applications, covering intelligent vehicle networking, wireless gateway, smart factory, smart city, photovoltaic, digital economy, smart Siasun Robot&Automation Co.Ltd(300024) , Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816) and other aspects. The strong demand in the downstream application field of the Internet of things has promoted the vigorous development of the Internet of things industry.
Many countries around the world have incorporated intelligent connected vehicles into their development plans, and intelligent connected vehicles will become the key direction of 5g vertical application. The United States Department of transport issued the “driving the leading position of automatic driving in America: autonomous vehicle 4” in 2020. In the fifth EU road safety action plan (20202030), the EU ETSC clearly puts forward nine important actions in the next decade, including traffic automation. In February 2020, 11 ministries and commissions including the national development and Reform Commission, the central network information office and the Ministry of industry and information technology issued the intelligent vehicle innovation and development strategy (fgy [2020] No. 202). The strategy aims to comply with the new round of scientific and technological revolution and industrial reform trend, seize the strategic opportunity of industrial intelligent development, and accelerate the innovative development of intelligent vehicles. On the basis of the above standards, China, Europe and the United States are vigorously promoting integration testing, pilot areas, business model and ecosystem construction. At the same time, South Korea, Japan and other regions are also vigorously promoting the construction of intelligent Internet connected vehicles and transportation system. Intelligent Internet connection has rapidly matured in terms of laws and regulations, technology and Commerce in vehicle popularization and intelligent transportation infrastructure construction. At the same time, with the initial increase of scale, the supporting cost is no longer unattainable, creating more mature conditions for the landing of relevant industries.
On June 30, 2021, the comprehensive Department of the National Energy Administration issued the notice on submitting the pilot scheme for roof distributed photovoltaic development in the whole county (city, district), requiring that the installable proportion of photovoltaic in the total roof area of Party and government organs shall not be less than 50%, that of schools and hospitals shall not be less than 40%, that of industrial and commercial distributed land shall not be less than 30%, and that of rural residents shall not be less than 20%.
On December 12, 2021, the State Council issued the “14th five year plan” for the development of digital economy, setting the development goal of 2025: by 2025, the digital economy will move towards a period of comprehensive expansion, and the added value of core industries of digital economy will account for 10% of GDP. The rapid development of digital economy will drive the further development of network coverage and promote more industries to enter the rapid intelligent and digital transformation.
On December 21, 2021, the notice of the Tenth Five Year Plan Department on printing and distributing the Siasun Robot&Automation Co.Ltd(300024) industrial development plan of the 14th five year plan formulated the 2025 goal: by 2025, China will become the global Siasun Robot&Automation Co.Ltd(300024) technological innovation source, high-end manufacturing agglomeration and new highland of integrated application. Promote the integration and application of new technologies such as artificial intelligence, 5g, big data and cloud computing, and improve the level of Siasun Robot&Automation Co.Ltd(300024) intelligence and networking.
On January 5, 2022, the Ministry of agriculture and rural areas issued the national agricultural mechanization development plan for the 14th five year plan, which made it clear that by 2025, the total power of agricultural machinery in China will be stable at about 1.1 billion kw, the comprehensive mechanization rate of crop cultivation and harvest will reach 75%, the main grain, cotton, oil and sugar producing counties (cities and districts) will basically realize agricultural mechanization, the comprehensive mechanization rate of crop cultivation and harvest in hilly counties (cities and districts) will reach 55%, and the comprehensive mechanization rate of facility agriculture, animal husbandry The overall mechanization rate of aquaculture and Shenzhen Agricultural Products Group Co.Ltd(000061) primary processing has reached more than 50%.
The state has continuously issued various policies to strengthen network construction and promote the rapid and intelligent development of various industries. As the intermediate link between the upstream standardized chip and the downstream highly fragmented vertical application field, the wireless communication module can help the intelligent upgrading of thousands of industries. The company will contribute to the national 14th five year plan and the long-term goal of 2035.
During the reporting period, the company’s main business, business model and industry conditions have not changed significantly, as follows:
(I) main business of the company
The company’s main business is the design, R & D, production and sales services of wireless communication modules and their solutions in the field of Internet of things. It can provide one-stop solutions including wireless communication modules, antennas and cloud platform management of Internet of things. The company’s diversified products and rich functions can meet the needs of different intelligent terminal markets.
The company’s products can be widely used in smart transportation, smart energy, financial payment, Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816) and environmental monitoring, smart city, wireless gateway, smart industry, smart life, medical health and smart security.
Figure main application scenarios of the company’s products
(II) business model
During the reporting period, the company’s main business is the design, R & D, production and sales services of wireless communication modules and their solutions in the field of Internet of things, which can provide one-stop solutions including wireless communication modules, antennas and cloud platform management of Internet of things. 1. Procurement mode
The company has established a strict procurement process control system to standardize and control the selection and evaluation of suppliers and the quality control of raw materials, so as to ensure the efficient and orderly procurement process of the company. The company’s procurement department will organize procurement in combination with orders, safety inventory, R & D products and future market expectations. 2. Production mode
During the reporting period, the company mainly adopts the combination of self production and entrusted processing, which can ensure the stability of the supply chain, effectively improve the efficiency of product R & D, production and testing, strictly control the product quality and ensure the stable supply of production capacity. 3. Sales model
During the reporting period, the company’s product sales were divided into overseas market and Chinese market, and the sales mode was the combination of online sales and offline sales. In order to meet the needs of market development and facilitate sales management, the company divides the global sales regions into China, Europe, North America and Asia, Africa and Latin America. The sales and technical service teams in many countries and regions around the world can provide customers with timely and efficient localization services. 3 main accounting data and financial indicators of the company 3.1 main accounting data and financial indicators in recent three years
Unit: yuan currency: RMB
