WISCOM(002090)2023-08-22 16:00Financial Performance - The company's operating revenue for the first half of 2023 was CNY 794.42 million, representing a 24.61% increase compared to CNY 637.51 million in the same period last year[24]. - The net profit attributable to shareholders was CNY 18.13 million, up 43.82% from CNY 12.61 million year-on-year[24]. - The net profit after deducting non-recurring gains and losses increased by 56.55% to CNY 12.86 million from CNY 8.22 million in the previous year[24]. - The basic earnings per share rose to CNY 0.0460, a 38.97% increase compared to CNY 0.0331 in the same period last year[24]. - The total revenue for the period reached ¥794,417,947.29, representing a year-on-year increase of 24.61% compared to ¥637,510,642.02[67]. - The Smart Energy segment generated ¥482,463,367.97, accounting for 60.73% of total revenue, with a significant year-on-year growth of 61.69%[67]. - The Smart City segment reported revenue of ¥310,488,588.85, which is a decline of 8.00% from the previous year[67]. - The gross profit margin for the Smart Energy segment improved to 30.43%, up by 0.79% year-on-year, while the Smart City segment's margin decreased to 14.95%, down by 1.66%[68]. - The company reported a total of ¥628,042,506.52 in cash and cash equivalents, which is 23.65% of total assets, an increase from 21.37% at the end of the previous year[72]. - The company reported a total comprehensive income of ¥17,348,064.49 for the first half of 2023, compared to ¥10,921,057.81 in the same period of 2022, indicating a growth of about 59%[155]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 2.66 billion, reflecting a 1.82% increase from CNY 2.61 billion at the end of the previous year[24]. - The net assets attributable to shareholders increased by 13.64% to CNY 1.42 billion from CNY 1.25 billion at the end of the previous year[24]. - The total liabilities decreased, with short-term borrowings at ¥113,291,309.72, down from ¥141,010,868.80, reflecting a reduction of 1.14% in proportion to total assets[74]. - The total liabilities decreased to CNY 1.23 billion from CNY 1.35 billion, a decrease of approximately 9.1%[148]. - The company's retained earnings increased to CNY 885.08 million from CNY 876.96 million, reflecting a growth of 0.13%[148]. - The total owner's equity increased to CNY 1.43 billion from CNY 1.26 billion, a growth of 13.2%[148]. Cash Flow - The company reported a net cash flow from operating activities of CNY -105.18 million, an improvement of 14.65% compared to CNY -123.23 million in the same period last year[24]. - The company reported a cash inflow from investment activities of CNY 23,828,683.59, up from CNY 12,887,621.70 in the previous year[161]. - The net cash flow from financing activities was CNY 117,024,031.66, a turnaround from -CNY 69,992,292.21 in the same period last year[161]. - The company's cash and cash equivalents at the end of the period increased to CNY 526,583,550.30, up from CNY 277,164,130.78 at the end of the first half of 2022[161]. Market Position and Strategy - The company focuses on automation, information technology, and intelligent technology applications in the smart energy and smart city sectors, maintaining a strong market position[32]. - The company aims to enhance its market share in the non-fossil energy sector by developing products for wind power, solar energy, and energy storage, in line with the "carbon peak" and "carbon neutrality" initiatives[33]. - The company has successfully implemented several low-carbon park demonstration projects, including a 14MW distributed photovoltaic project, showcasing its expertise in low-carbon solutions[39]. - The company actively explored low-carbon business opportunities, winning several distributed photovoltaic design projects and modular substation projects in various provinces[60]. - The company plans to continue expanding its Smart Energy and Smart City segments, focusing on new product development and market expansion strategies[69]. Research and Development - The company has over 300 dedicated R&D personnel and has established partnerships with several prestigious universities, holding more than 160 patents and 370 software copyrights[53]. - The company has increased its investment in technology research and development, focusing on new-generation artificial intelligence, IoT, big data, cloud computing, and 5G applications, which are crucial for maintaining core competitiveness[86]. - Research and development expenses increased to ¥92,355,066.31, compared to ¥59,939,929.77 in the first half of 2022, reflecting a growth of approximately 54%[158]. Corporate Governance and Social Responsibility - The company has implemented a second employee stock ownership plan worth 162.41 million yuan to attract and retain talent, enhancing its long-term development strategy[51]. - The company has been recognized as a green factory in Jiangsu Province for 2022, reflecting its commitment to environmental management and compliance with regulations[101]. - The company promotes low-carbon living by advocating for paperless offices and energy-efficient practices, such as setting reasonable air conditioning temperatures[103]. - The company has maintained a responsible corporate philosophy, actively participating in environmental protection and social welfare initiatives[105]. Risks and Challenges - The company faces various risks as detailed in the management discussion and analysis section, which investors should pay attention to[6]. - The company faces risks related to market competition, with a rapid increase in the number of competitors in the smart energy and smart city sectors, necessitating timely adjustments to market strategies[87]. - Jiangsu Jinzhitech has implemented measures to mitigate accounts receivable risks, which are high due to long order execution cycles, by enhancing contract review processes and increasing collection efforts[89].