Founded in 1995, Shenzhen Das Intellitech (stock code: 002421) is a leading domestic intelligent Internet of Things solution service provider, belonging to the software and information technology services industry. The company has developed from the initial automation system integration business into a leading enterprise of intelligent Internet of Things products and solutions. Based on its independently developed AIoT intelligent Internet of Things platform and intelligent terminal products, Das Intellitech provides users with full-lifecycle intelligent services, with products widely used in building buildings and parks, hospitals, urban rail transit and data centers and other fields. The company is committed to becoming a global leading smart space service provider, helping users create energy-saving, low-carbon, efficient and smart, safe and warm working and living environment.

As for the balance sheet, as of the end of Q1 2024, Das Intellitech's total assets were RMB 9.618 billion, slightly decreased from the beginning of the period, which was RMB 9.666 billion, a decrease of 0.49%. The total liabilities decreased from RMB 6.08 billion at the beginning of the period to RMB 6.03 billion at the end of the period, a decrease of 0.82%. The asset-liability ratio decreased from 62.9% at the beginning of the period to 62.7% at the end of the period. Although both assets and liabilities have decreased, the stability of the asset-liability ratio indicates that the company has maintained a relatively balance in its financial structure. In addition, the owner's equity attributable to shareholders of the listed company increased slightly from RMB 3.415 billion at the beginning of the period to RMB 3.417 billion at the end of the period, an increase of 0.05%, showing the company's steady growth in shareholder equity.

As for the profit, Das Intellitech's operating revenue for this reporting period was RMB 590 million, a decrease of 4.52% year-on-year. Operating profit was RMB 85.9 million, a decrease of 66.55% year-on-year. Net profit was RMB 42.1 million, a decrease of 77.69% year-on-year. The gross profit margin was 25.93%, slightly higher than the same period of last year which was 25.86%. However, the net profit margin dropped significantly from 3.05% in the same period last year to 0.71%. The net profit attributable to shareholders of the listed company was RMB 38.4 million, a decrease of 79.22% year-on-year. The net profit attributable to shareholders of the listed company excluding non-recurring gains and losses was -RMB 51.5 million, a decrease of 142.26% year-on-year. Basic earnings per share and diluted earnings per share were both RMB 0.0018, a decrease of 80.65% year-on-year. The weighted average return on net assets decreased from 0.62% in the same period last year to 0.11%. These data indicate that although the company has maintained stability in gross profit margin, the significant decrease in net profit and net profit margin reflects that the company is facing challenges in cost control and profit-making ability.

As for the cash flow, the subtotal of cash inflow from operating activities for this reporting period was RMB 728 million, a decrease of 7.99% year-on-year. The subtotal of cash outflow from operating activities was RMB 931 million, a decrease of 2.23% year-on-year. The net cash flow from operating activities was -RMB 203 million, a decrease of 26.03% year-on-year. Although both cash inflow and cash outflow have decreased, the significant decrease in net cash flow indicates that the company faces certain pressures in managing cash flows in its operating activities.

To sum up, Das Intellitech's financial performance in Q1 2024 presents a stable asset-liability structure, a stable gross profit margin, but faces significant challenges in net profit and cash flow. The company needs to further strengthen cost control and enhance profit-making ability in future operations to cope with market competition and economic uncertainty. At the same time, the continuous upgrading and iteration of AIoT products and technologies, especially the significant progress made in the domestic substitution of building control systems, will help the company achieve higher growth and profitability in the future.