Declared Dividend • May 25
Dividend reduced to CN¥0.005 Dividend of CN¥0.005 is 95% lower than last year. Ex-date: 29th May 2026 Payment date: 29th May 2026 Dividend yield will be 0.04%, which is lower than the industry average of 1.2%. Board Change • May 20
High number of new and inexperienced directors There are 8 new directors who have joined the board in the last 3 years. The company's board is composed of: 8 new directors. 4 experienced directors. No highly experienced directors. Deputy GM, Chief Engineer & Director Song Pan is the most experienced director on the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Announcement • Apr 13
Qingdao Eastsoft Communication Technology Co.,Ltd, Annual General Meeting, May 12, 2026 Qingdao Eastsoft Communication Technology Co.,Ltd, Annual General Meeting, May 12, 2026, at 14:00 China Standard Time. Location: The Company's Meeting Room, Qingdao, Shandong China Announcement • Mar 31
Qingdao Eastsoft Communication Technology Co.,Ltd to Report Q1, 2026 Results on Apr 24, 2026 Qingdao Eastsoft Communication Technology Co.,Ltd announced that they will report Q1, 2026 results on Apr 24, 2026 Announcement • Dec 31
Qingdao Eastsoft Communication Technology Co.,Ltd to Report Fiscal Year 2025 Results on Apr 25, 2026 Qingdao Eastsoft Communication Technology Co.,Ltd announced that they will report fiscal year 2025 results on Apr 25, 2026 Announcement • Sep 30
Qingdao Eastsoft Communication Technology Co.,Ltd to Report Q3, 2025 Results on Oct 25, 2025 Qingdao Eastsoft Communication Technology Co.,Ltd announced that they will report Q3, 2025 results on Oct 25, 2025 Announcement • Jul 02
Qingdao Eastsoft Communication Technology Co.,Ltd to Report First Half, 2025 Results on Aug 18, 2025 Qingdao Eastsoft Communication Technology Co.,Ltd announced that they will report first half, 2025 results on Aug 18, 2025 Announcement • Apr 01
Qingdao Eastsoft Communication Technology Co.,Ltd Proposes Final Cash Distribution for 2024 Qingdao Eastsoft Communication Technology Co.,Ltd announced on 31 March 2025 the final profit distribution proposal for 2024 as follows: Cash dividend/10 shares (tax included): CNY1.00000000. Announcement • Dec 31
Qingdao Eastsoft Communication Technology Co.,Ltd to Report Fiscal Year 2024 Results on Mar 31, 2025 Qingdao Eastsoft Communication Technology Co.,Ltd announced that they will report fiscal year 2024 results on Mar 31, 2025 Reported Earnings • Oct 25
Third quarter 2024 earnings released: EPS: CN¥0.058 (vs CN¥0.042 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.058 (up from CN¥0.042 in 3Q 2023). Revenue: CN¥230.7m (flat on 3Q 2023). Net income: CN¥26.8m (up 38% from 3Q 2023). Profit margin: 12% (up from 8.5% in 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
Qingdao Eastsoft Communication Technology Co.,Ltd to Report Q3, 2024 Results on Oct 25, 2024 Qingdao Eastsoft Communication Technology Co.,Ltd announced that they will report Q3, 2024 results on Oct 25, 2024 New Risk • Sep 21
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 8.5% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (8.5% average weekly change). Earnings have declined by 14% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (6.3% net profit margin). New Risk • Aug 23
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 22% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 14% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (8.8% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (6.3% net profit margin). Reported Earnings • Aug 15
Second quarter 2024 earnings released: EPS: CN¥0.11 (vs CN¥0.071 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.11 (up from CN¥0.071 in 2Q 2023). Revenue: CN¥350.5m (up 32% from 2Q 2023). Net income: CN¥49.8m (up 52% from 2Q 2023). Profit margin: 14% (up from 12% in 2Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Announcement • Jun 29
Qingdao Eastsoft Communication Technology Co.,Ltd to Report First Half, 2024 Results on Aug 15, 2024 Qingdao Eastsoft Communication Technology Co.,Ltd announced that they will report first half, 2024 results on Aug 15, 2024 Buy Or Sell Opportunity • May 31
Now 20% overvalued The stock has been flat over the last 90 days, currently trading at CN¥12.59. The fair value is estimated to be CN¥10.48, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 3.7% over the last 3 years. Earnings per share has declined by 18%. Declared Dividend • May 31
Dividend reduced to CN¥0.10 Dividend of CN¥0.10 is 33% lower than last year. Ex-date: 6th June 2024 Payment date: 6th June 2024 Dividend yield will be 0.8%, which is lower than the industry average of 1.2%. Sustainability & Growth Dividend is covered by both earnings (84% earnings payout ratio) and cash flows (34% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 6.1% to shift the payout ratio to a potentially unsustainable range, which is less than the 19% EPS decline seen over the last 5 years. Announcement • May 30
Qingdao Eastsoft Communication Technology Co.,Ltd Announces Final Profit Distribution Plan to Be Implemented on A Shares for the Year 2023, Payable on 06 June 2024 Qingdao Eastsoft Communication Technology Co.,Ltd announced 2023 final profit distribution plan to be implemented (A shares): Cash dividend/10 shares (tax included): CNY 1.00000000. Record date: 05 June 2024; Ex-date: 06 June 2024; Payment date: 06 June 2024. Announcement • Apr 19
Qingdao Eastsoft Communication Technology Co.,Ltd, Annual General Meeting, May 15, 2024 Qingdao Eastsoft Communication Technology Co.,Ltd, Annual General Meeting, May 15, 2024, at 14:00 China Standard Time. Location: No. 17, Chuangxin Avenue, Jiaozhou Development Zone, Qingdao, Shandong China New Risk • Apr 18
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 6.2% Last year net profit margin: 17% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 8.0% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (6.2% net profit margin). Announcement • Mar 30
Qingdao Eastsoft Communication Technology Co.,Ltd to Report Q1, 2024 Results on Apr 26, 2024 Qingdao Eastsoft Communication Technology Co.,Ltd announced that they will report Q1, 2024 results on Apr 26, 2024 New Risk • Feb 08
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 8.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 4.0% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.1% average weekly change). Valuation Update With 7 Day Price Move • Feb 01
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥10.82, the stock trades at a trailing P/E ratio of 36.2x. Average trailing P/E is 39x in the Communications industry in China. Total loss to shareholders of 22% over the past three years. Announcement • Dec 30
Qingdao Eastsoft Communication Technology Co.,Ltd to Report Fiscal Year 2023 Results on Apr 18, 2024 Qingdao Eastsoft Communication Technology Co.,Ltd announced that they will report fiscal year 2023 results on Apr 18, 2024 Reported Earnings • Oct 27
Third quarter 2023 earnings released: EPS: CN¥0.042 (vs CN¥0.088 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.042 (down from CN¥0.088 in 3Q 2022). Revenue: CN¥228.7m (down 7.0% from 3Q 2022). Net income: CN¥19.5m (down 52% from 3Q 2022). Profit margin: 8.5% (down from 17% in 3Q 2022). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 7% per year and the company’s share price has also fallen by 7% per year. Reported Earnings • Aug 15
Second quarter 2023 earnings released: EPS: CN¥0.071 (vs CN¥0.062 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.071 (up from CN¥0.062 in 2Q 2022). Revenue: CN¥266.3m (up 20% from 2Q 2022). Net income: CN¥32.9m (up 16% from 2Q 2022). Profit margin: 12% (in line with 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has fallen by 14% per year, which means it is performing significantly worse than earnings. Announcement • Jul 01
Qingdao Eastsoft Communication Technology Co.,Ltd to Report First Half, 2023 Results on Aug 15, 2023 Qingdao Eastsoft Communication Technology Co.,Ltd announced that they will report first half, 2023 results on Aug 15, 2023 Announcement • Jun 29
Qingdao Eastsoft Communication Technology Co.,Ltd announced that it expects to receive CNY 500 million in funding Qingdao Eastsoft Communication Technology Co.,Ltd announced a private placement of common shares for gross proceeds of CNY 500 million on June 27, 2023. Announcement • May 20
Qingdao Eastsoft Communication Technology Co.,Ltd Approves Final Cash Dividend for 2022 Qingdao Eastsoft Communication Technology Co.,Ltd at its AGM held on May 18, 2023 approved final cash dividend of CNY 1.50000000 per 10 shares (tax included) for 2022. Valuation Update With 7 Day Price Move • Apr 30
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to CN¥14.78, the stock trades at a trailing P/E ratio of 44.1x. Average trailing P/E is 49x in the Communications industry in China. Total returns to shareholders of 5.5% over the past three years. Reported Earnings • Apr 24
First quarter 2023 earnings released: EPS: CN¥0.03 (vs CN¥0.047 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.03 (down from CN¥0.047 in 1Q 2022). Revenue: CN¥143.9m (down 17% from 1Q 2022). Net income: CN¥13.7m (down 37% from 1Q 2022). Profit margin: 9.5% (down from 13% in 1Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Feb 13
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥18.30, the stock trades at a trailing P/E ratio of 54.3x. Average trailing P/E is 41x in the Communications industry in China. Total returns to shareholders of 3.0% over the past three years. Board Change • Nov 16
High number of new and inexperienced directors There are 10 new directors who have joined the board in the last 3 years. The company's board is composed of: 10 new directors. 1 experienced director. No highly experienced directors. Independent Director Shenglu Jiang is the most experienced director on the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Oct 28
Third quarter 2022 earnings released: EPS: CN¥0.088 (vs CN¥0.082 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.088 (up from CN¥0.082 in 3Q 2021). Revenue: CN¥245.8m (down 5.3% from 3Q 2021). Net income: CN¥40.9m (up 8.5% from 3Q 2021). Profit margin: 17% (up from 14% in 3Q 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Reported Earnings • Aug 11
Second quarter 2022 earnings released: EPS: CN¥0.062 (vs CN¥0.034 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.062 (up from CN¥0.034 in 2Q 2021). Revenue: CN¥221.3m (up 48% from 2Q 2021). Net income: CN¥28.4m (up 79% from 2Q 2021). Profit margin: 13% (up from 11% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Board Change • Apr 27
High number of new and inexperienced directors There are 11 new directors who have joined the board in the last 3 years. The company's board is composed of: 11 new directors. 1 experienced director. No highly experienced directors. Non-Employee Supervisor Dalong Liu is the most experienced director on the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Oct 23
Third quarter 2021 earnings released: EPS CN¥0.082 (vs CN¥0.088 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: CN¥259.6m (up 18% from 3Q 2020). Net income: CN¥37.7m (down 8.0% from 3Q 2020). Profit margin: 14% (down from 19% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 20% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Oct 13
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥18.41, the stock trades at a trailing P/E ratio of 54.3x. Average trailing P/E is 48x in the Communications industry in China. Total returns to shareholders of 79% over the past three years. Reported Earnings • Aug 22
Second quarter 2021 earnings released: EPS CN¥0.034 (vs CN¥0.074 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥149.3m (down 18% from 2Q 2020). Net income: CN¥15.9m (down 54% from 2Q 2020). Profit margin: 11% (down from 19% in 2Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 15% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥21.49, the stock trades at a trailing P/E ratio of 56.8x. Average trailing P/E is 56x in the Communications industry in China. Total returns to shareholders of 52% over the past three years. Valuation Update With 7 Day Price Move • Jun 20
Investor sentiment improved over the past week After last week's 23% share price gain to CN¥17.62, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 28x in the Communications industry in China. Total returns to shareholders of 26% over the past three years. Reported Earnings • Apr 30
First quarter 2021 earnings released: EPS CN¥0.033 (vs CN¥0.053 in 1Q 2020) The company reported a soft first quarter result with weaker earnings and profit margins, although revenues improved. First quarter 2021 results: Revenue: CN¥138.3m (up 22% from 1Q 2020). Net income: CN¥15.0m (down 39% from 1Q 2020). Profit margin: 11% (down from 22% in 1Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Feb 06
New 90-day low: CN¥13.68 The company is down 30% from its price of CN¥19.52 on 06 November 2020. The Chinese market is up 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is down 20% over the same period. Is New 90 Day High Low • Jan 11
New 90-day low: CN¥15.87 The company is down 21% from its price of CN¥20.15 on 14 October 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is down 10.0% over the same period. Is New 90 Day High Low • Dec 22
New 90-day low: CN¥17.29 The company is down 9.0% from its price of CN¥19.02 on 24 September 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is down 8.0% over the same period. 
