Financial Performance - The company's revenue for the six months ended June 30, 2021, decreased by approximately RMB 250.1 million or 63.4% to about RMB 144.2 million compared to RMB 394.3 million in the same period of 2020[15]. - Gross profit for the period decreased by approximately RMB 26.7 million or 60.2% to about RMB 17.7 million, while the gross profit margin increased from 11.3% to 12.2%[16]. - The company reported a net loss attributable to owners of approximately RMB 22 million for the period, a decrease of about RMB 25.2 million compared to a profit of RMB 3.2 million in the same period of 2020[23]. - For the six months ended June 30, 2021, the revenue was RMB 144,174 thousand, a decrease of 63.4% compared to RMB 394,307 thousand for the same period in 2020[96]. - The gross profit for the same period was RMB 17,653 thousand, down 60.2% from RMB 44,382 thousand in 2020[96]. - The net loss for the period was RMB 21,962 thousand, compared to a profit of RMB 3,160 thousand in the previous year, indicating a significant decline in performance[96]. - Basic and diluted loss per share was RMB (0.07), compared to earnings of RMB 0.01 per share in the prior year[96]. - The company reported a net loss before tax of RMB 35,520,000 for the six months ended June 30, 2021, compared to a net profit of RMB 35,201,000 in the previous year[131]. Assets and Liabilities - The total assets as of June 30, 2021, were RMB 641.8 million, down from RMB 758.6 million as of December 31, 2020[5]. - The total liabilities decreased to RMB 114.4 million from RMB 209.8 million as of December 31, 2020[5]. - As of June 30, 2021, the total assets of the group were approximately RMB 641.8 million, and the net asset value was approximately RMB 527.3 million, compared to RMB 758.6 million and RMB 548.8 million as of December 31, 2020[26]. - The group's trade receivables and contract assets amounted to approximately RMB 73.7 million, down from RMB 125 million as of December 31, 2020, with an allowance for doubtful accounts of approximately RMB 57 million[26]. - The bank balance and cash as of June 30, 2021, were approximately RMB 397.5 million, compared to RMB 440.9 million as of December 31, 2020[26]. - The total equity attributable to owners of the company was RMB 522,848 thousand, down from RMB 544,286 thousand at the end of 2020[99]. - The total accounts receivable, net of impairment losses, decreased to RMB 44,748,000 as of June 30, 2021, from RMB 69,951,000 as of December 31, 2020, representing a decline of approximately 36%[146]. - Current liabilities were reduced to RMB 113,182 thousand from RMB 207,502 thousand, a decrease of 45.6%[99]. Operational Highlights - The company continues to invest in the development of its proprietary cloud computing management products, enhancing reliability and market acceptance through technical integration and promotion[11]. - The company is focusing on the development of an AI-driven health management platform, collaborating with leading research institutions to provide comprehensive solutions[14]. - The group plans to focus on cloud computing and smart health sectors, continuing to invest in technology capabilities and intellectual property development[38]. - The group has established an artificial intelligence laboratory and a research team to enhance product reliability and service capabilities[41]. - The company aims to optimize its existing product portfolio and increase service revenue to ensure good cash flow and profitability[10]. Expenses and Costs - Administrative expenses increased by approximately RMB 3.3 million or 25.5% to RMB 16.4 million, primarily due to increased costs associated with the AI laboratory and health business consulting[20]. - The total employee cost was approximately RMB 47.7 million, an increase from RMB 43.6 million for the same period in 2020, with a total of 339 employees as of June 30, 2021[34]. - The company incurred research and development costs of RMB 13,534,000 for the six months ended June 30, 2021, which is an increase of 52.1% from RMB 8,877,000 in the same period of 2020[103]. - Total remuneration for key management personnel decreased to RMB 6,004,000 in 2021 from RMB 6,866,000 in 2020, representing a decline of approximately 12.5%[165]. - Salary and other benefits for key management personnel amounted to RMB 5,545,000 in 2021, down from RMB 6,517,000 in 2020, indicating a reduction of about 14.9%[165]. - Contributions to retirement benefit plans increased to RMB 459,000 in 2021 from RMB 349,000 in 2020, reflecting a growth of approximately 31.5%[165]. Share Options and Dividends - The board decided not to declare any interim dividend for the six months ended June 30, 2021[33]. - A new share option scheme was approved on May 16, 2019, to reward eligible individuals contributing to the group's success, replacing the old scheme[50]. - The new share option scheme is valid for ten years from May 16, 2019, with a symbolic acceptance price of HKD 1[50]. - The total number of unexercised share options granted under the old scheme as of June 30, 2021, was 7,700,000[55]. - Under the new share option scheme, a total of 13,560,000 unexercised options were reported as of June 30, 2021[58]. - The exercise price for options granted under the new scheme is set at HKD 0.518[58]. - The company has confirmed that no options were granted to other participants outside of those disclosed[57]. - The company recognized share-based payments of RMB 516,000 during the six months ended June 30, 2021[100]. Cash Flow and Investments - Cash and cash equivalents decreased by RMB 43,735,000 during the six months ended June 30, 2021, compared to an increase of RMB 9,854,000 in the same period of 2020[103]. - The company reported a net cash used in operating activities of RMB 30,266,000 for the six months ended June 30, 2021, compared to net cash generated of RMB 15,710,000 in the same period of 2020[103]. - The company’s investment activities resulted in a net cash outflow of RMB 12,401,000 for the six months ended June 30, 2021[103]. - The company had cash and cash equivalents of RMB 397,503,000 as of June 30, 2021, compared to RMB 385,044,000 as of June 30, 2020[103]. Compliance and Governance - The company has adopted the standard code of conduct for securities trading by directors as per the listing rules, confirming compliance during the period[47]. - The group's unaudited condensed interim financial statements have been reviewed by the auditor according to international standards[48]. - No shares were purchased, sold, or repurchased by the company or its subsidiaries during the period[49].
富通科技(00465) - 2021 - 中期财报