GIT(300465)2024-08-26 11:24Revenue and Profit Performance - Revenue for the reporting period was RMB 506.34 million, a decrease of 16.25% compared to the same period last year[10] - Main business revenue in the first half of 2024 was 506.34 million yuan, a year-on-year decrease of 16.25%[17] - Revenue decreased by 16.25% to 506,340,324.79 yuan, primarily due to a decline in integrated business scale[25] - Total operating revenue for the first half of 2024 was RMB 506.34 million, a decrease of 16.25% compared to RMB 604.57 million in the same period of 2023[75] - Net profit attributable to shareholders of the listed company was RMB 8.62 million, a decrease of 41.41% year-on-year[10] - Net profit attributable to shareholders in the first half of 2024 was 8.62 million yuan, a year-on-year decrease of 41.41%[18] - Net profit attributable to the parent company's shareholders for the first half of 2024 was RMB 8.62 million, a decrease of 41.41% compared to RMB 14.72 million in the same period of 2023[77] - Operating profit for the first half of 2024 was RMB 7.79 million, a decrease of 46.38% compared to RMB 14.52 million in the same period of 2023[76] - Net profit for the first half of 2024 was -3,117,478.20 RMB, a decrease compared to -6,975,400.99 RMB in the same period last year[79] Cash Flow and Financial Position - Net cash flow from operating activities was RMB -143.25 million, an improvement of 5.71% compared to the same period last year[10] - Net cash flow from operating activities improved by 5.71% to -143,249,050.17 yuan[25] - Operating cash flow was -143,249,050.17 RMB in H1 2024, an improvement from -151,918,383.31 RMB in H1 2023[81] - Operating cash flow for the first half of 2024 was -85.30 million yuan, an improvement from -107.91 million yuan in the same period of 2023[83] - Net cash flow from investing activities increased by 105.21% to 151,842.39 yuan, mainly due to reduced fixed asset procurement expenses[26] - Net cash flow from financing activities decreased by 170.64% to -18,176,768.02 yuan, primarily due to increased investment in subsidiary equity[26] - Cash received from financing activities in the first half of 2024 was 180.71 million yuan, a significant increase from 40.00 million yuan in the same period of 2023[84] - Net cash flow from financing activities in the first half of 2024 was 17.36 million yuan, slightly higher than 17.27 million yuan in the same period of 2023[84] - Cash and cash equivalents at the end of H1 2024 stood at 131,275,255.73 RMB, down from 292,546,151.87 RMB at the beginning of the period[82] - The company's cash and cash equivalents at the end of the first half of 2024 were 92.96 million yuan, down from 179.28 million yuan at the beginning of the period[84] - Cash and cash equivalents decreased to 140,226,558.11 yuan from 305,393,325.79 yuan, a decline of 54.1%[197] - Bank deposits decreased to 131,253,660.47 yuan from 292,522,222.12 yuan, a decline of 55.1%[197] - Other monetary funds decreased to 8,951,302.38 yuan from 12,847,173.92 yuan, a decline of 30.3%[197] - Funds held overseas decreased to 1,698,746.85 yuan from 2,725,491.42 yuan, a decline of 37.7%[197] - Restricted funds for bank guarantees and acceptance bills amounted to 8,951,302.38 yuan[197] - Bank acceptance notes decreased to 300,000.00 yuan from 414,000.00 yuan, a decline of 27.5%[200] Business Segments and Gross Margins - Software development and service revenue was 447.58 million yuan, a year-on-year decrease of 4.20%[17] - System integration and service revenue was 58.76 million yuan, a year-on-year decrease of 56.99%[17] - Revenue from software development and services decreased by 4.20% to 447,578,459.02 yuan, with a gross margin of 23.37%[27] - Revenue from system integration and services decreased by 56.99% to 58,761,865.77 yuan, with a gross margin of 10.48%[27] - Revenue from the banking financial sector decreased by 18.06% to 402,810,813.71 yuan, with a gross margin of 21.78%[27] - Software business gross margin in the first half of 2024 was 23.37%, a year-on-year decrease of 2.6 percentage points[17] - System integration business gross margin in the first half of 2024 was 10.48%, a year-on-year increase of 1.62 percentage points[17] Costs and Expenses - Operating costs decreased by 15.92% to 395,566,429.44 yuan, also due to a decline in integrated business scale[25] - Total operating costs for the first half of 2024 were RMB 497.15 million, a decrease of 15.91% compared to RMB 591.25 million in the same period of 2023[76] - Direct labor costs increased by 17.79% to 315,962,508.05 yuan, accounting for 79.88% of operating costs[28] - R&D investment decreased by 36.74% to 24,477,059.85 yuan, as the company strategically slowed down some application technology R&D to adapt to client changes[25] - R&D expenses for the first half of 2024 were RMB 24.48 million, a decrease of 36.75% compared to RMB 38.69 million in the same period of 2023[76] - R&D expenses decreased to 12,734,842.95 RMB in H1 2024, down from 18,826,152.02 RMB in H1 2023[79] - Cash paid for employee compensation decreased to 475,780,076.91 RMB in H1 2024 from 504,496,375.30 RMB in H1 2023[81] - Cash paid for employee compensation in the first half of 2024 increased to 267.64 million yuan from 232.52 million yuan in the same period of 2023[83] Subsidiaries and Investments - Jiangsu Yingda Information Technology Co., Ltd., a subsidiary, reported a net profit of 4,443,839.55 RMB with total assets of 123,692,775.35 RMB[34] - Shanghai Xizhen Information Technology Co., Ltd., a subsidiary, reported a net loss of 3,986,654.79 RMB with total assets of 63,272,942.66 RMB[34] - Chengdu Gaoweida Information Technology Co., Ltd., a subsidiary, reported a net profit of 5,419,097.46 RMB with total assets of 68,055,612.00 RMB[35] - Beijing Gaoweida Tanyun Technology Co., Ltd., a subsidiary, reported a net profit of 3,823,392.93 RMB with total assets of 81,088,020.04 RMB[35] - Shanghai Ruimin Internet Technology Co., Ltd., a subsidiary, reported a net profit of 2,667,949.91 RMB with total assets of 220,109,208.54 RMB[36] - Shanghai Ruiche Information Technology Co., Ltd., a subsidiary, reported a net profit of 4,021,715.38 RMB with total assets of 33,886,472.72 RMB[36] - Long-term equity investments increased to 44,564,193.44 RMB from 45,369,057.91 RMB[70] - Other equity instrument investments remained stable at 21,000,000.00 RMB[70] Assets and Liabilities - Total assets at the end of the reporting period were RMB 1.35 billion, a slight decrease of 0.43% compared to the end of the previous year[10] - Total assets increased to 1,353,052,136.98 RMB from 1,358,828,935.45 RMB[70] - Total liabilities as of the end of the first half of 2024 were RMB 897.97 million, an increase of 6.72% compared to RMB 841.39 million at the end of the first half of 2023[74] - Total owner's equity as of the end of the first half of 2024 was negative RMB 279.76 million, a decrease of 1.06% compared to negative RMB 276.84 million at the end of the first half of 2023[74] - Accounts receivable increased from 342,613,361.06 yuan at the beginning of the period to 432,651,902.63 yuan at the end of the period[69] - Inventory increased from 477,636,489.59 yuan at the beginning of the period to 559,356,608.04 yuan at the end of the period[69] - The company's total current assets remained relatively stable, with 1,198,535,097.18 yuan at the end of the period compared to 1,198,494,116.20 yuan at the beginning of the period[69] - Short-term borrowings decreased to 323,486,892.02 RMB from 321,182,588.26 RMB[70] - Accounts payable increased to 42,695,821.55 RMB from 53,126,942.17 RMB[70] - Contract liabilities decreased to 184,867,463.16 RMB from 179,498,746.05 RMB[70] Shareholder and Equity Information - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserve into share capital[1] - The total number of ordinary shareholders at the end of the reporting period is 47,537[62] - The largest shareholder, Yingtan Yinggao Investment Consulting Co., Ltd., holds 22.81% of the shares, totaling 101,886,476 shares[62] - The second-largest shareholder, Union Technology Co., Ltd., holds 8.30% of the shares, totaling 37,101,580 shares[62] - Shareholder Tian Yanan increased holdings by 98,600 shares, now holding 0.92% of the total shares[62] - Shareholder Jiao Ping reduced holdings by 4,000 shares, now holding 0.50% of the total shares[62] - The company's registered capital is RMB 446,762,257.00, with a total of 446,762,257 shares, each with a par value of RMB 1.00[96] - The company's total shares increased to 133,340,000 after its initial public offering in 2015, issuing 33,340,000 shares[96] - The company's total shares increased to 431,808,000 after a capital reserve to share capital conversion in 2016, with a 10-for-22 share split[97] - The company's total shares increased to 434,592,000 after a restricted stock incentive plan in 2016, issuing 2,784,000 shares at RMB 7.66 per share[97] - The company's total shares increased to 452,976,657 after issuing 14,745,442 shares for an acquisition and 3,639,215 shares for fundraising in 2016[98] - The company repurchased and canceled 2,595,200 shares in 2017 due to unmet conditions in its restricted stock incentive plans[98] - The company repurchased and canceled 2,595,200 shares, reducing registered capital by RMB 2,595,200, with the updated registered capital at RMB 450,381,457[99] - An additional 515,200 shares were repurchased and canceled, further reducing registered capital by RMB 515,200, bringing the total registered capital to RMB 449,866,257[99] - A total of 2,617,600 shares were repurchased and canceled, reducing registered capital by RMB 2,617,600, with the updated registered capital at RMB 447,248,657[100] - Another 192,000 shares were repurchased and canceled, reducing registered capital by RMB 192,000, bringing the total registered capital to RMB 447,056,657[100] - The company completed the exchange of 34,489,564 shares for the "17 Yinggao E1" bond, with the exchange period from October 8, 2018, to March 22, 2019[102] - The company repurchased and canceled 268,800 shares, reducing registered capital by RMB 268,800, with the updated registered capital at RMB 446,787,857[102] - An additional 25,600 shares were repurchased and canceled, reducing registered capital by RMB 25,600, bringing the total registered capital to RMB 446,762,257[103] - As of June 30, 2024, the company's shareholding structure includes Yinggao Investment Consulting Co., Ltd. holding 101,886,476 shares (22.81%), Silver Team Technology Limited holding 37,101,580 shares (8.30%), and other shareholders holding 307,774,201 shares (68.89%)[104] Market and Industry Outlook - The Chinese banking IT solutions market is expected to reach 139.01 billion yuan by 2026, with a CAGR of 23.55% from 2022 to 2026[18] - The company expects the software business revenue recognition process to stabilize in the second half of 2024 as customer acceptance progresses[17] - The company is actively expanding its customer base and broadening business boundaries within existing clients to maintain stable software business contract growth[18] Risks and Challenges - The company faces risks such as industry trend fluctuations, loss of core technical teams, and goodwill impairment, with a current goodwill balance of 43.779 million RMB[38] - The company uses the expected credit loss model to assess impairment of financial instruments, involving significant judgment and estimates[185] - Inventory is measured at the lower of cost and net realizable value, with impairment recognized based on management's assessment of salability and net realizable value[186] - Non-financial non-current assets are tested for impairment when there are indications of potential impairment, with impairment recognized if the carrying amount exceeds the recoverable amount[186] Corporate Governance and Management - Ye Jiasheng was appointed as Vice President on June 19, 2024, due to operational management needs[44] - The company held its 2023 Annual General Meeting on May 17, 2024, with a 32.09% investor participation rate[43] Environmental and Legal Compliance - No significant environmental penalties or issues were reported during the period[46] - No major legal disputes or arbitration cases were reported during the period[47] - No significant related-party transactions or financial dealings were reported during the period[48][49][50][51][52] - No major contracts, leases, or guarantees were reported during the period[54][55][56] Taxation and Government Subsidies - The company received a VAT refund of 504,771.65 yuan in the first half of 2024 under the "immediate refund" policy for software products[196] - The company and its subsidiaries enjoy a reduced corporate income tax rate of 15.00% as high-tech enterprises, effective from 2023 to 2025[193] - Certain subsidiaries benefit from a "two exemptions and three half reductions" policy, with corporate income tax rates of 12.50% or 0% depending on the profit year[194] - The company and its subsidiaries enjoy VAT exemptions for technology transfer and development services[192] - The company applies a 13.00% VAT rate on software product sales, with a refund mechanism for tax burdens exceeding 3.00%[192] - Small and micro-profit enterprises within the company benefit from a reduced corporate income tax rate of 20.00% until December 31, 2027[194] Accounting Policies and Financial Reporting - The company's financial statements were prepared in accordance with the "Enterprise Accounting Standards" and the disclosure requirements of the China Securities Regulatory Commission[106] - The company's financial statements comply with enterprise accounting standards, accurately reflecting the company's financial status, operating results, and cash flows[109] - The accounting period runs from January 1 to December 31, with a 12-month operating cycle used as the standard for asset and liability liquidity classification[110] - The company and its domestic subsidiaries use RMB as the functional currency, while overseas subsidiaries determine their functional currency based on their primary economic environment[111] - Significant subsidiaries are defined as those contributing over 10% of the company's total profit[111] - For same-control mergers, assets and liabilities are measured at their book value in the controlling party's consolidated financial statements[112] - In non-same-control mergers, goodwill is recognized when the merger cost exceeds the fair value of identifiable net assets acquired[113] - Transaction costs for mergers, including audit and legal fees, are recognized as current period expenses[115] - The company determines control based on power over investees, variable returns, and the ability to influence returns, with consolidation including all subsidiaries[116] - Subsidiaries acquired through same-control mergers are included in consolidated financial statements from the date of common control[116] - Minority interests in subsidiaries are separately presented in consolidated financial statements[116] - The company disposed of a subsidiary, and the income, expenses, and profits from the beginning of the period to the disposal date were included in the consolidated income statement[117] - The cash flows from the beginning of the period to the disposal date of the subsidiary were included in the consolidated cash flow statement[117] - The company re-measured the remaining equity investment at fair value on the date of losing control[117] - The difference between the consideration received from the disposal and the fair value of the remaining equity, minus the share of the subsidiary's net assets and goodwill, was recognized as investment income in the current period[117] - The company classified joint arrangements into joint operations and joint ventures based on the rights and obligations in the arrangement[118] - The company accounted for investments in