Join-Cheer(002279)2021-08-26 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥889,814,111.90, a decrease of 29.64% compared to ¥1,264,601,697.05 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was a loss of ¥83,890,681.91, an improvement from a loss of ¥109,037,648.28 in the previous year[18]. - The net cash flow from operating activities was -¥239,833,629.37, compared to -¥170,786,959.26 in the same period last year[18]. - The total assets at the end of the reporting period were ¥2,498,143,869.09, a decrease of 6.33% from ¥2,667,022,974.11 at the end of the previous year[18]. - The net assets attributable to shareholders of the listed company were ¥977,729,472.50, down 7.19% from ¥1,053,445,186.39 at the end of the previous year[18]. - The basic earnings per share were -¥0.1179, compared to -¥0.1533 in the same period last year[18]. - The weighted average return on net assets was -8.26%, an improvement from -11.66% in the previous year[18]. - The company reported a net loss attributable to shareholders was CNY 8,389.07 million, a reduction in loss of CNY 2,514.70 million compared to the same period last year[26]. - The net profit of the subsidiary Jiuxi Government Software was a loss of ¥15,762,530.87, which is an increase in loss of ¥7,071,500.00 year-on-year, mainly due to increased labor costs after the expiration of pandemic-related subsidies[78]. - The net profit after deducting non-recurring gains and losses was -86.12 million yuan, an improvement from -126.95 million yuan in the same period last year[157]. Revenue and Cost Analysis - The company's operating costs decreased by 39.47% to approximately ¥659.40 million from ¥1.09 billion year-on-year, primarily due to reduced costs in digital communication business[54]. - The digital marketing segment reported a revenue of 602.38 million, a decrease of 46.24% year-on-year, indicating a need for strategic adjustments[43]. - Revenue from the e-government sector increased by 126.09% to CNY 173,504,060.18, while internet business revenue decreased by 46.44% to CNY 602,612,418.16[57][58]. - The total operating costs for the first half of 2021 were CNY 994.29 million, down 29.3% from CNY 1,408.97 million in the first half of 2020[172]. Investment and Development - Research and development investment was approximately ¥135.88 million, a decrease of 4.63% compared to ¥142.48 million in the previous year[54]. - The company acquired 20 new software copyrights and 3 invention patents during the reporting period, bringing the total to 1,035 software copyrights and 40 patents[49]. - The company has built a comprehensive big data ecosystem, including cloud computing and big data technology platforms, to provide tailored solutions for clients[50]. - The company has initiated a comprehensive cloud transformation for its big data products, improving data analysis capabilities[31]. - The total investment cash outflow for the first half of 2021 was approximately ¥389.25 million, compared to ¥263.83 million in the same period of 2020, indicating increased investment activity[180]. Strategic Focus and Initiatives - The company is focusing on the development of the Nuwa platform, which integrates new technologies such as AI and cloud-native capabilities[28]. - The company has developed a new generation of asset management products based on the Nuwa platform, integrating various business processes[30]. - The company is actively involved in the integration of budget management systems, aligning with national policies for fiscal reform[33]. - The company has established a complete support system for project management within the Nuwa platform, enhancing development and deployment efficiency[28]. - The company aims to drive digital transformation in government, society, and enterprises through its innovative technology and talent strategy[47]. Cash Flow and Liquidity - The company's cash and cash equivalents dropped significantly from CNY 662,854,532.85 to CNY 320,737,160.08, a decline of about 51.60%[162]. - The company's cash flow from operating activities was significantly impacted by a 54.62% decrease in cash received from operating activities[58]. - The company reported a significant decrease in investment income, with a loss of approximately ¥4.76 million from joint ventures in the first half of 2021, compared to a gain of ¥0.99 million in the same period of 2020[176]. - The company experienced a net decrease in cash and cash equivalents of -129,310,849.11 CNY during the first half of 2021, compared to -28,501,819.56 CNY in the same period of 2020[183]. Shareholder and Equity Information - The total number of shares increased to 711,259,411 due to the conversion of convertible bonds, with a decrease of 2,086,509 shares in restricted shares[129]. - The total number of shareholders at the end of the reporting period was 57,134[135]. - The largest shareholder, Beijing Jiuxi Technology Investment Co., Ltd., holds 13.68% of the total shares, amounting to 97,301,009 shares[136]. - The company has a total of 712,380 shares under the restricted stock incentive plan[133]. - The total equity attributable to the parent company is 1,038,018,393.95 CNY, with a significant increase in capital reserves to 287,091,061.36 CNY[196]. Legal and Compliance Matters - The company is involved in significant litigation, with a claim for 30,410.88 million yuan related to a breach of contract from a share acquisition agreement[108]. - The company has resolved non-major litigation cases amounting to 3,942.05 million yuan, with settlements or victories totaling 3,437.54 million yuan[109]. - There were no violations regarding external guarantees during the reporting period[104]. - The semi-annual financial report has not been audited[105]. Corporate Social Responsibility - The company has organized volunteer activities at charitable institutions, emphasizing a corporate culture that respects and nurtures talent, aiming for mutual growth between employees and the company[99]. - The company is focusing on rural revitalization, providing operational support services to the Rural Revitalization Administration, and has developed a grid-based service management system in Chengmai County, Hainan Province[99].