Financial Performance - For the six months ended June 30, 2021, the company reported sales revenue of RMB 31,038,000, a 33% increase compared to RMB 23,310,000 for the same period in 2020[11]. - The cost of sales for the same period was RMB 37,485,000, up from RMB 25,425,000 in 2020, resulting in a gross loss of RMB 6,447,000 compared to a gross loss of RMB 2,115,000 in the previous year[11]. - The company incurred a loss before tax from continuing operations of RMB 18,333,000 for the six months ended June 30, 2021, compared to a loss of RMB 14,861,000 in 2020[11]. - The net loss attributable to the company for the six months was RMB 13,216,000, compared to a loss of RMB 18,248,000 in the same period of the previous year[13]. - Basic and diluted loss per share from continuing operations was RMB (1.39) for the six months ended June 30, 2021, compared to RMB (1.00) in 2020[13]. - The company reported other income of RMB 466,000 for the six months, a decrease from RMB 571,000 in the previous year[11]. - Distribution and selling expenses were RMB 4,285,000, slightly down from RMB 4,266,000 in 2020[11]. - Management expenses decreased to RMB 7,371,000 from RMB 7,430,000 in the previous year[11]. - The company recognized a tax credit of RMB 85,000 for the six months ended June 30, 2021, compared to RMB 1,645,000 in 2020[11]. - The company reported a total comprehensive loss of RMB (13,846,000) for the six months ended June 30, 2021, compared to a loss of RMB (17,218,000) in the same period of 2020, indicating an improvement in performance[18]. Assets and Liabilities - As of June 30, 2021, total assets decreased to RMB 96,409,000 from RMB 134,389,000 as of December 31, 2020, representing a decline of approximately 28.2%[15]. - Non-current liabilities decreased significantly from RMB 45,305,000 in 2020 to RMB 22,980,000 in 2021, a reduction of about 49.3%[16]. - The company reported a total equity of RMB 51,902,000 as of June 30, 2021, down from RMB 65,748,000 at the end of 2020, reflecting a decline of approximately 21.0%[16]. - The company’s total liabilities decreased from RMB 40,143,000 in 2020 to RMB 36,945,000 in 2021, a reduction of approximately 7.0%[16]. - The company’s borrowings decreased to RMB 44,596,000 as of June 30, 2021, from RMB 63,789,000 as of December 31, 2020, representing a reduction of about 30%[61]. - The company had trade receivables overdue by more than 90 days amounting to RMB 9,086,000 as of June 30, 2021, compared to RMB 7,508,000 at the end of 2020, indicating an increase of approximately 21%[54]. Cash Flow and Investments - The net cash used in operating activities for the six months ended June 30, 2021, was RMB (35,393,000), slightly improved from RMB (36,782,000) in the same period of 2020[21]. - Cash and cash equivalents at the end of June 30, 2021, were RMB 41,388,000, down from RMB 58,358,000 at the beginning of the period, indicating a decrease of 29.1%[21]. - The company’s cash flow from investing activities improved to RMB 37,047,000 in 2021 from RMB (3,403,000) in 2020, indicating a positive turnaround in investment cash flow[21]. - The company completed the sale of Hangzhou Hengxinli Software Co., Ltd. for a cash consideration of RMB 40,000,000 on May 24, 2021[41]. - The sale of the subsidiary resulted in a net cash inflow of RMB 40,000,000, with a gain of RMB 2,461,000 recognized from the sale[45]. Operational Developments - The company plans to focus on expanding its market presence and enhancing its product offerings in the upcoming periods[11]. - The company expanded its merchant outsourcing services to 12 provinces and 18 provincial branches, up from 2 branches six years ago, focusing on major banks and economic provinces[78]. - The company is adapting to the increasing demand for online products and has launched a cloud-based payment software to meet diverse payment needs[76]. - The company aims to enhance value-added services, integrating merchant outsourcing and payment products as a core strategic development[78]. - The company sees opportunities in the digital currency pilot led by the People's Bank of China, positioning itself for future growth in the payment sector[79]. Shareholder and Governance - Major shareholders include Goldcorp Industrial Limited and Great Song Enterprises, each holding 32.78% of the shares[97]. - The company did not recommend any dividend payment for the six months ended June 30, 2021, consistent with the previous year[52]. - The company complied with the corporate governance code as per GEM Listing Rules Appendix 15 during the six months ended June 30, 2021[120]. - The company adhered to the securities trading regulations for directors as outlined in GEM Listing Rules during the six months ended June 30, 2021[121]. - The Remuneration Committee was established in November 2005 to review and recommend remuneration policies for directors and senior management[122]. - The Nomination Committee was formed in March 2012 to develop nomination policies and recommend appointments to the board[124]. - The Audit and Risk Management Committee was established on August 27, 2001, to oversee financial reporting, internal controls, and risk management systems[125]. Employee and Compensation - The company employed 1,045 staff from continuing operations as of June 30, 2021, an increase from 804 staff six months prior[88]. - Employee costs from continuing operations for the reporting period were approximately RMB 37,065,000, compared to RMB 28,663,000 for the same period in 2020[88]. - The company has adopted a share option scheme for certain employees[89]. - The total number of share options granted and unexercised as of June 30, 2021, was 106,833,930 shares[117].
新利软件(08076) - 2021 - 中期财报