Smart Home Giant Enters Main Board: Dependence on Big Clients, Significant Decrease in R&D Expenses, and High Asset Impairment Loss

Sales Almost Entirely "Relied" on Exports, with the Top Five Clients Accounting for Seven-Tenths of Revenue: A Case of "Dependence Syndrome" at a Smart Home Giant.

Large Client "Dependence Syndrome" is Obvious

Ninety-Percent Revenue Comes from Exports, with the Top Five Clients Contributing Seventy-Five Percent

The company's prospectus shows that it focuses on developing and selling smart home terminal products based on Android TV system, such as intelligent network set-top boxes and hybrid terminals.

Notably, during the reporting period, the company's revenue was largely derived from sales of intelligent network set-top boxes and hybrid terminals to clients in the mainland market.

The prospectus also highlights that the company's research and development expenses are significantly lower than those of comparable companies, with a research and development expense ratio of 3.46%, compared to an average of 5.57% for comparable companies.

As shown in the prospectus, during the reporting period, the company's asset impairment loss increased significantly, with a total loss of RMB 1,217 million.

As can be seen from the prospectus, during the reporting period, the company's main asset impairment reserve was RMB 859.26 million, with a majority of it being inventory impairment reserves.