大智慧(601519) - 2024 Q2 - 季度财报

Company Profile and Key Financial Indicators Company Basic Information Shanghai DZH Limited (DZH) is a company listed on the Shanghai Stock Exchange with stock code 601519, and its legal representative is Zhang Zhihong Company Basic Information | Item | Information | | :--- | :--- | | Company Chinese Name | 上海大智慧股份有限公司 | | Company Chinese Abbreviation | 大智慧 | | Stock Exchange | Shanghai Stock Exchange | | Stock Abbreviation | DZH | | Stock Code | 601519 | | Legal Representative | Zhang Zhihong | Key Financial Data and Indicators The company experienced a 7.62% decline in operating revenue and a 148.68% drop in net profit attributable to shareholders, turning from profit to loss, mainly due to the absence of a significant non-operating income from the prior year and increased R&D and personnel costs Key Accounting Data (January-June) | Key Accounting Data | Current Period (Jan-Jun) (Yuan) | Prior Period (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 334,866,141.06 | 362,470,880.43 | -7.62% | | Net Profit Attributable to Shareholders | -137,757,345.92 | 282,997,116.67 | -148.68% | | Net Profit Attributable to Shareholders After Non-Recurring Items | -132,036,179.15 | -54,011,863.73 | N/A | | Net Cash Flow from Operating Activities | -203,779,137.46 | 11,607,689.98 | -1,855.55% | | Total Assets | 1,995,947,129.89 | 2,300,883,452.39 | -13.25% (Compared to end of previous year) | | Basic EPS (Yuan/share) | -0.069 | 0.141 | -148.94% | - The core reason for the significant performance decline is that the company fully recognized 335 million Yuan payable by Zhang Changhong as non-operating income in the prior period, leading to a high net profit base, while this non-recurring gain was absent in the current reporting period[14][32] - During the reporting period, the company's total non-recurring gains and losses amounted to -5.7212 million Yuan, primarily from fair value changes and disposal gains/losses on financial assets and liabilities held by non-financial enterprises, totaling -9.2079 million Yuan[16] Management Discussion and Analysis (MD&A) Principal Business, Operating Model, and Industry Overview The company is a leading domestic internet financial information service provider, focusing on securities information services, big data and data engineering services, and overseas business, operating across various platforms for both individual and institutional clients within a dynamic market influenced by policy support and intense competition - The company's principal business is divided into three segments: - Securities Information Services: Providing securities information and data services to investors via DZH APP and PC terminals - Big Data and Data Engineering Services: Offering financial data, data management, and mining services to financial institutions through its wholly-owned subsidiary, Caihui Technology - Overseas Business: Serving local users through subsidiaries in Hong Kong, Singapore, and Tokyo, Japan[17] - The industry benefits from national policy support (e.g., "14th Five-Year Plan," financial technology development plans), deepening capital market reforms, widespread mobile internet adoption, and increasing investor numbers, laying a solid user foundation and development space for the financial information service industry[22][23] - Industry competition is intensifying, with leading enterprises holding significant advantages, new companies developing rapidly, and financial institutions and traditional media accelerating their financial technology deployments, impacting the competitive landscape[24] Core Competitiveness Analysis The company's core competitiveness stems from its leading industry position, strong R&D capabilities, comprehensive product line, extensive financial data resources, broad user base, and strategic international presence - The company holds a leading industry position and brand recognition, offering a complete product line that serves both individual and institutional clients[25] - The company prioritizes technological R&D, with R&D expenses accounting for 34.82% of operating revenue during the reporting period, and possesses massive historical data and extensive data production experience[25] - The company serves a wide range of clients, including banks, brokerages, funds, and insurance companies, and has established an international presence in Asian financial centers such as Hong Kong, Singapore, and Tokyo[26][27] Discussion and Analysis of Operations During the reporting period, the company's operating revenue reached 335 million Yuan, a 7.62% year-on-year decrease, with net profit attributable to the parent company turning to a loss of 138 million Yuan, primarily due to a large non-operating income in the prior year; the company continued to advance its three main business segments, leveraging AI in securities information services, maintaining stable operations in big data, and enhancing overseas business through product and service improvements - The company adheres to the core principle of "increasing revenue, reducing expenditure, improving quality, and enhancing efficiency," focusing on advancing its three major segments: financial information services, big data business, and overseas business[28] - Securities Information Services: Enhanced capabilities in factor research, industry data, and intelligent customer service through AI empowerment, with multiple upgrades to PC terminals and APP improving market data, information, and trading services[28] - Big Data and Data Engineering Services: Continued to increase R&D investment, achieving over 95% automated data processing, and its "Enterprise Early Warning" product series now serves millions of financial professionals[29] - Overseas Business: Hong Kong-based AAStocks enhanced US stock quote information and data coverage; DZH International in Singapore developed new multi-asset class products; and DZH Financial Research in Japan strengthened the compilation of Japanese and US stock reports[29] Financial Analysis of Key Operating Conditions During the reporting period, the company's principal business financial performance fluctuated, with operating revenue decreasing by 7.62% due to declines in overseas and insurance brokerage businesses, while selling, administrative, and R&D expenses significantly increased to support business expansion, and balance sheet items like financial assets held for trading, salaries payable, and other payables also saw notable changes Key Operating Financial Data | Item | Current Period (Yuan) | Prior Period (Yuan) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 334,866,141.06 | 362,470,880.43 | -7.62% | Decline in overseas, insurance brokerage, and other business revenues | | Selling Expenses | 72,185,801.83 | 52,164,631.03 | 38.38% | Increase in personnel investment and service costs | | Administrative Expenses | 144,931,733.57 | 125,210,393.15 | 15.75% | Increased personnel, rental, and depreciation costs due to business expansion | | R&D Expenses | 116,613,830.44 | 96,491,457.57 | 20.85% | Significant increase in R&D investment | | Net Cash Flow from Operating Activities | -203,779,137.46 | 11,607,689.98 | -1,855.55% | Large amount received in prior period, no such income in current period | Key Balance Sheet Items | Asset and Liability Item | Current Period End (Yuan) | Prior Period End (Yuan) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 66,949,818.96 | 3,594,146.26 | 1,762.75% | Increase in bank wealth management product purchases in current period | | Salaries and Wages Payable | 5,116,027.13 | 72,406,231.47 | -92.93% | Salaries accrued at end of prior year disbursed in current period | | Other Payables | 14,025,608.94 | 83,004,506.37 | -83.10% | Payment for repurchase and cancellation of restricted stock incentive plan in current period | - During the reporting period, the company established 3 new wholly-owned sub-subsidiaries and increased capital in several controlled subsidiaries/sub-subsidiaries, with total investment decreasing by approximately 64.78% year-on-year[36] Risk Analysis The company faces key risks including operating performance sensitivity to securities market fluctuations, internet system security, intensifying industry competition, and rising labor costs, which it addresses through product quality enhancement, technical security maintenance, R&D innovation, and improved talent management - The company faces four main risks: - Operating Performance Risk: Principal business is highly correlated with the prosperity of the securities market - System Security Risk: Business relies on internet platforms, facing threats such as equipment failures and hacker attacks - Industry Competition Risk: Severe homogenization in the industry, facing potential threats from financial institutions and internet giants - Human Capital Cost Risk: As a talent-intensive enterprise, it faces the risk of declining profits due to rising compensation levels[41][42][43] Corporate Governance Profit Distribution Plan The company's board of directors resolved that there will be no profit distribution or capital reserve conversion plan for the current reporting period - The company has no profit distribution or capital reserve conversion plan for this half-year period[3][46] Equity Incentive Plan The company continued to implement its 2021 Restricted Stock Incentive Plan, leading to the repurchase and cancellation of 15.5572 million restricted shares in April 2024 due to the departure of some grantees and failure to meet 2023 performance targets, with the cancellation completed on June 14, 2024 - Due to the departure of 22 grantees and failure to meet 2023 performance targets, the company repurchased and canceled 15.5572 million restricted shares[48][59] - This cancellation was completed on June 14, 2024, reducing the company's total share capital from 2.0194228 billion shares to 2.0038656 billion shares[48][59] Significant Matters Significant Related Party Transactions During the reporting period, the company projected its 2024 annual routine related party transactions with Xiangcai Co., Ltd. and its controlled subsidiaries would not exceed 20 million Yuan, with actual transactions amounting to 1.43 million Yuan as of the end of the period - The company estimates its 2024 routine related party transactions with Xiangcai Co., Ltd. and its controlled subsidiaries will not exceed 20 million Yuan, with 1.43 million Yuan actually incurred during the reporting period[54] Share Capital Changes and Shareholder Information Share Capital Changes During the reporting period, the company's total share capital changed due to the repurchase and cancellation of certain restricted shares from its incentive plan, resulting in the cancellation of 15,557,200 restricted shares and a reduction in total share capital from 2,019,422,800 shares to 2,003,865,600 shares Share Capital Changes | Share Class | Quantity Before Change (Shares) | Change (Shares) | Quantity After Change (Shares) | | :--- | :--- | :--- | :--- | | Restricted Shares | 15,557,200 | -15,557,200 | 0 | | Unrestricted Tradable Shares | 2,003,865,600 | 0 | 2,003,865,600 | | Total Shares | 2,019,422,800 | -15,557,200 | 2,003,865,600 | - The share capital change resulted from the company's repurchase and cancellation of 15,557,200 shares from the 2021 Restricted Stock Incentive Plan that were unvested due to grantee departures and failure to meet 2023 performance targets[59] Shareholder Information As of the end of the reporting period, the company had 134,781 common shareholders, with controlling shareholder Zhang Changhong holding 33.20% of shares, and significant holdings by Xiangcai Co., Ltd. and its pledged accounts; Zhang Changhong also has related party relationships with the fourth and sixth largest shareholders, Zhang Ting and Zhang Zhihong - As of the end of the reporting period, the company had 134,781 common shareholders[61] Top Ten Shareholders | Shareholder Name | Shares Held at Period End (Shares) | Percentage (%) | | :--- | :--- | :--- | | Zhang Changhong | 665,224,457 | 33.20% | | Xiangcai Co., Ltd. | 134,285,000 | 6.70% | | Xiangcai...Pledged Account | 89,346,589 | 4.46% | | Zhang Ting | 85,025,402 | 4.24% | | Xiangcai... (Phase II) Pledged Account | 61,365,500 | 3.06% | | Zhang Zhihong | 51,238,600 | 2.56% | Financial Report Consolidated Financial Statements As of the reporting period end, the company's total assets were 1.996 billion Yuan, a 13.25% decrease from the beginning of the period, while total liabilities were 455 million Yuan, down 26.02%; operating revenue for the period was 335 million Yuan, a 7.62% year-on-year decrease, with a net loss of 140 million Yuan compared to a 281 million Yuan profit in the prior year, and net cash flow from operating activities showed a significant outflow of 204 million Yuan Consolidated Balance Sheet Key Items (Unit: Yuan) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 1,292,011,795.25 | 1,634,708,653.55 | | Total Assets | 1,995,947,129.89 | 2,300,883,452.39 | | Short-term Borrowings | 38,276,600.47 | 0.00 | | Total Liabilities | 454,510,480.96 | 614,435,034.68 | | Equity Attributable to Owners of the Parent Company | 1,541,661,205.20 | 1,694,534,157.68 | Consolidated Income Statement Key Items (Unit: Yuan) | Item | January-June 2024 | January-June 2023 | | :--- | :--- | :--- | | Total Operating Revenue | 334,866,141.06 | 362,470,880.43 | | Total Operating Costs | 465,955,846.52 | 414,739,094.41 | | Operating Profit | -137,729,977.74 | -49,784,915.47 | | Total Profit | -136,852,743.72 | 285,681,696.84 | | Net Profit | -139,981,813.98 | 280,721,965.50 | | Net Profit Attributable to Parent Company Shareholders | -137,757,345.92 | 282,997,116.67 | Consolidated Cash Flow Statement Key Items (Unit: Yuan) | Item | January-June 2024 | January-June 2023 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -203,779,137.46 | 11,607,689.98 | | Net Cash Flow from Investing Activities | -84,078,127.21 | -12,460,370.76 | | Net Cash Flow from Financing Activities | -48,119,875.20 | -72,289,953.34 | | Net Increase in Cash and Cash Equivalents | -337,476,891.24 | -60,390,056.35 |