永信至诚(688244) - 2024 Q2 - 季度财报

Definitions Company Profile and Key Financial Indicators Company Overview Yongxin Zhicheng Technology Group Co., Ltd. (stock code: 688244) is listed on the STAR Market of the Shanghai Stock Exchange, with Cai Jingjing as its legal representative Company Information | Item | Content | | :--- | :--- | | Company Chinese Name | 永信至诚科技集团股份有限公司 | | Stock Abbreviation | 永信至诚 | | Stock Code | 688244 | | Listing Exchange | Shanghai Stock Exchange STAR Market | Key Accounting Data and Financial Indicators During the reporting period, the company achieved operating revenue of RMB 100.16 million, a 18.48% year-on-year increase, with net loss attributable to shareholders narrowing by 31.05% to RMB -18.47 million, while net cash outflow from operating activities expanded by 41.62% to RMB -67.89 million Key Accounting Data (January-June 2024) | Indicator | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 100.16 million RMB | 84.54 million RMB | 18.48% | | Net Profit Attributable to Shareholders (RMB) | -18.47 million RMB | -26.78 million RMB | Not applicable (loss narrowed by 31.05%) | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (RMB) | -23.58 million RMB | -34.24 million RMB | Not applicable (loss narrowed by 31.14%) | | Net Cash Flow from Operating Activities (RMB) | -67.89 million RMB | -47.94 million RMB | Not applicable (net outflow expanded by 41.62%) | | Basic Earnings Per Share (RMB/share) | -0.18 RMB/share | -0.26 RMB/share | Not applicable | | Weighted Average Return on Net Assets (%) | -1.78% | -2.58% | increased by 0.80 percentage points | | R&D Investment as % of Operating Revenue (%) | 46.42% | 45.12% | increased by 1.30 percentage points | - The narrowing of net loss was primarily due to increased revenue and reduced expenses in the current period[14] - The expanded net cash outflow from operating activities was mainly due to increased cash payments for goods, services, and employee salaries in the current period[15] Non-recurring Gains and Losses | Item | Amount (RMB) | | :--- | :--- | | Government grants recognized in current profit/loss | 0.44 million RMB | | Gains/losses from entrusted investments or asset management | 4.98 million RMB | | Other non-operating income and expenses | -0.19 million RMB | | Total | 5.11 million RMB | Management Discussion and Analysis Principal Business, Operating Model, and Industry Position The company is a leader in digital security testing and evaluation and cyber range fields, with core businesses including digital wind tunnel testing, cyber range and operations, and security protection and control; it adopts a 'standardized R&D + targeted secondary R&D' model and a direct sales approach, maintaining market leadership in testing, cyber range, and talent development amid dual drivers of ransomware and new security demands like AI security - The company's core products and services include: - Digital Wind Tunnel Testing and Evaluation: Providing infrastructure for systematic risk verification and security effectiveness measurement in digital transformation - Cyber Range and Operations: Used for security system validation, talent training, and practical exercises, holding the leading market share - Security Protection and Control: Including honeypot systems and situational awareness platforms[18][20] - Industry trends indicate persistent ransomware attacks, while new productive forces represented by artificial intelligence create an urgent demand for novel security protections, such as routine testing and evaluation of large models[28][29][30] - The company holds a leading industry position, ranking first in market share for cyber ranges (IDC data), with its 'Digital Wind Tunnel' product system pioneering and leading the testing and evaluation track, and maintaining the top market share in talent development for seven consecutive years[31][32] Core Technologies and R&D Progress The company's core technology system is built around four key areas: cyberspace parallel simulation, cyber offensive and defensive confrontation, multi-cycle digital wind tunnel testing, and adversarial generative multi-dimensional large model security testing; during the reporting period, three AI large model-based vertical products were launched, R&D investment increased by 21.89%, accounting for 46.42% of revenue, and R&D personnel grew to 257, representing 51.71% of total staff - The company's four core technology clusters include: 1. Cyberspace Parallel Simulation Technology: Building highly realistic business environments to support comprehensive security services like testing and exercises 2. Cyberspace Offensive and Defensive Confrontation Technology: Covering practical techniques such as malware detection, vulnerability exploitation, and traffic detection 3. Multi-cycle Digital Wind Tunnel Testing and Evaluation Technology: Achieving automated, systematic security verification for the entire lifecycle of digital systems 4. Adversarial Generative Multi-dimensional Large Model Security Testing and Evaluation Technology: Utilizing AI to automatically generate adversarial samples for security assessment of large models[33][35][37] - During the reporting period, three security vertical large model products were launched: 'Chunqiu' Cyber Range Construction Large Model, 'Chunqiu' Security Competition Large Model, and 'Chunqiu' Talent Assessment Large Model, promoting deep integration of AI technology with the principal business[42] R&D Investment Status | Item | Current Period Amount | Prior Period Amount | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment (RMB) | 46.50 million RMB | 38.15 million RMB | 21.89% | | Total R&D Investment (RMB) | 46.50 million RMB | 38.15 million RMB | 21.89% | | Total R&D Investment as % of Operating Revenue (%) | 46.42% | 45.12% | increased by 1.30 percentage points | R&D Personnel Status | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Company R&D Personnel Count (people) | 257 people | 231 people | | R&D Personnel as % of Total Company Staff (%) | 51.71% | 46.57% | Analysis of Core Competitiveness during the Reporting Period The company's core competitiveness stems from five advantages: technology, team, product first-mover, ecosystem synergy, and neutral positioning; it possesses proprietary R&D in parallel simulation and cyber offensive/defensive technologies, a highly skilled team with 51.71% R&D staff, first-mover advantages in cyber range and 'Digital Wind Tunnel' products, and a talent ecosystem built through industry-academia collaboration and the i春秋 community, with its neutral third-party status fostering client trust - Technological Advantage: Possesses four core technologies: parallel simulation, cyber offensive and defensive, Chunqiu Cloud private cloud, and multi-cycle digital wind tunnel testing and evaluation[62][63][64] - Team Advantage: Core team members are industry experts, R&D personnel account for 51.71% of the company's total staff, and they have led or participated in the formulation of multiple national and industry standards[65][66] - Product First-Mover Advantage: Since launching cyber range products in 2015, the company has accumulated rich industry scenarios and user base; in 2022, it released the 'Digital Wind Tunnel' product system, leading the digital security testing and evaluation track[67] - Synergy Advantage: Built a talent ecosystem through industry-academia-research collaboration and the i春秋 community (over 800,000 registered learners), promoting technological iteration and business development[68][69] - Neutral Ecosystem Advantage: As an independent third-party testing and evaluation service provider, it offers objective and professional services to clients, fostering trust[70] Discussion and Analysis of Operating Performance In H1 2024, the company achieved RMB 100.16 million in revenue, up 18.48% year-on-year, with net loss narrowing by 31.05% to RMB -18.47 million, and Q2 turning profitable; the 'Digital Wind Tunnel' product system gained market recognition, generating RMB 37.59 million in revenue, while the company advanced in AI large model testing and expanded into the Hong Kong market, also launching a new equity incentive plan with ambitious growth targets - The 'Digital Wind Tunnel' product system achieved operating revenue of RMB 37.59 million, and cyber range series products achieved operating revenue of RMB 52.54 million, maintaining a growth trend[72][73] - The company actively deploys AI security, with its AI large model security testing 'Digital Wind Tunnel' integrated with over 30 mainstream AI large model APIs, and has released relevant security testing reports[74] - The company uses Hong Kong as a platform to expand global business, having signed strategic cooperation agreements with organizations like Hong Kong Cyberport and established the 'Hong Kong Digital Wind Tunnel Testing Center'[75] - The company launched its 2024 equity incentive plan, setting high-growth performance targets requiring operating revenue of no less than RMB 436 million, RMB 750 million, and RMB 1.45 billion for 2024-2026, respectively[77] Income Statement Item Variation Analysis | Account | YoY Change (%) | Primary Reason | | :--- | :--- | :--- | | Operating Revenue | 18.48% | Increased recognition of 'Digital Wind Tunnel' products and growth in cyber range business | | Operating Cost | 33.28% | Due to increased revenue | | Selling Expenses | -26.30% | Decreased marketing expenses and share-based payments | | R&D Expenses | 21.89% | Increased R&D personnel leading to higher compensation | Balance Sheet Item Variation Analysis | Item | Change from Year-End (%) | Primary Reason | | :--- | :--- | :--- | | Cash and Cash Equivalents | -33.10% | Operating outflows, dividend payments, share repurchases, and wealth management product purchases | | Inventories | 81.58% | Increased inventory preparation and contract performance costs | | Other Current Assets | 98.91% | Increased purchases of wealth management products | | Taxes Payable | -87.85% | Due to payment of prior year's taxes | Risk Factors The company faces key risks including performance decline or loss, core competitiveness (technology iteration, key personnel loss), operational (sales seasonality, market competition), financial (tax incentives, accounts receivable), and industry/macroeconomic environment risks - The company's main clients are budget-based entities such as government agencies and central state-owned enterprises, leading to significant revenue seasonality, particularly in the second half and Q4[79] - As business scale expands, accounts receivable show an upward trend, and adverse changes in major clients' creditworthiness could lead to bad debt risks[79] - The company benefits from high-tech enterprise income tax incentives and R&D expense super deduction policies; future changes in policies or the company's own qualifications could adversely affect performance[79] Corporate Governance Corporate Governance Status During the reporting period, the company held three shareholder meetings, passing all proposals, experienced changes in some directors, supervisors, senior management, and core technical personnel, and terminated the 2023 restricted stock incentive plan, launching and completing the initial grant of a new 2024 plan approved by the general meeting of shareholders - During the reporting period, three shareholder meetings were held, approving proposals such as the termination of the 2023 equity incentive plan, the 2023 annual report and profit distribution plan, and the election of supervisors[92][93] - Li Wei, Deputy General Manager and core technical personnel, resigned due to personal reasons; changes occurred in the board of supervisors, with Yao Lei and Zhang Xuefeng resigning, and Ren Jinkai and Li Yang newly elected[94][95] - The company terminated its 2023 restricted stock incentive plan and, in July-August 2024, launched, approved, and granted a new 2024 restricted stock incentive plan, with 2.73 million shares initially granted to 24 incentive recipients[96][97] Environmental and Social Responsibility Environmental Protection Status The company is not classified as a key polluting entity by environmental authorities, has not established specific environmental protection mechanisms, incurred zero environmental protection expenditures, and implemented no specific carbon reduction measures during the reporting period - The company has not established environmental protection mechanisms, and environmental protection expenditures were RMB 0 during the reporting period[98] Significant Matters Fulfillment of Commitments During the reporting period, the company's actual controllers, shareholders, directors, supervisors, and senior management strictly fulfilled all commitments made during the initial public offering, including share lock-up, stock price stabilization, regulated related-party transactions, and avoidance of horizontal competition, with no breaches observed - The company's controlling shareholder and actual controller, Cai Jingjing, and his concerted action party, Chen Jun, committed not to transfer pre-IPO shares for 36 months from the listing date[99][100] - The company, controlling shareholders, directors, and senior management made specific commitments to stabilize the stock price; if the company's stock price falls below net asset value per share for 20 consecutive trading days, measures such as company buybacks, controlling shareholder increases, and director/supervisor/senior management increases will be initiated sequentially[110][111] Explanation of Progress in Use of Raised Funds The company's net proceeds from its initial public offering amounted to RMB 506.05 million, with cumulative investment reaching RMB 299.83 million by the end of the reporting period, representing a 59.25% progress rate; funds were primarily allocated to R&D projects such as cyber ranges, security service platforms, and security control and honeypots, with some idle funds temporarily used to supplement working capital and for cash management to enhance efficiency Overall Use of Raised Funds | Item | Amount (RMB) | | :--- | :--- | | Net Proceeds from Offering | 506.05 million RMB | | Cumulative Investment as of Reporting Period End | 299.83 million RMB | | Amount Invested in Current Year | 52.35 million RMB | | Cumulative Investment Progress | 59.25% | - The company used up to RMB 100 million of idle raised funds to temporarily supplement working capital; as of the end of the reporting period, the balance of supplemented working capital was RMB 90 million[137] - The company used part of the raised funds to increase capital in its wholly-owned subsidiary Wuyi Jiayu by RMB 5 million to implement a fundraising project[139] Share Changes and Shareholder Information Share Changes During the reporting period, the company implemented its 2023 equity distribution plan, converting capital reserves into shares at a rate of 4.8 shares for every 10 shares, increasing the total share capital from 69.31 million shares to 102.23 million shares - The company implemented a capital reserve to share capital increase, with 4.8 shares transferred for every 10 shares, increasing total share capital to 102,234,195 shares[142][143] Shareholder Information As of the end of the reporting period, the company had 1,970 common shareholders; the top two shareholders, controlling shareholder and actual controller Cai Jingjing and Chen Jun, collectively held over 50% of shares, with Qi'an Venture Capital as the third largest shareholder at 11.68% - As of the end of the reporting period, the company had a total of 1,970 common shareholders[144] Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held (shares) | Proportion (%) | | :--- | :--- | :--- | | Cai Jingjing | 35,631,237 shares | 34.85% | | Chen Jun | 16,447,713 shares | 16.09% | | Beijing Qi'an Venture Capital Partnership (Limited Partnership) | 11,937,680 shares | 11.68% | | Bosera Military Industry Theme Stock Investment Fund | 4,597,148 shares | 4.50% | | Beijing Xindongli Equity Investment Fund (Limited Partnership) | 2,374,923 shares | 2.32% | Preferred Share Information Preferred Share Status The company has no preferred share-related information - During the reporting period, the company had no preferred shares[151] Bond Information Bond Status The company has no corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds - During the reporting period, the company had no bond-related information[152] Financial Report Financial Statements As of June 30, 2024, the company's total assets were RMB 1.13 billion, with net assets attributable to shareholders at RMB 999.33 million; H1 2024 operating revenue reached RMB 100.16 million, net loss attributable to shareholders was RMB -18.47 million, and net cash outflow from operating activities was RMB -67.89 million Key Data from Consolidated Balance Sheet | Item | June 30, 2024 (RMB) | December 31, 2023 (RMB) | | :--- | :--- | :--- | | Total Assets | 1.13 billion RMB | 1.25 billion RMB | | Total Liabilities | 135.29 million RMB | 180.62 million RMB | | Equity Attributable to Parent Company Owners | 999.33 million RMB | 1.07 billion RMB | Key Data from Consolidated Income Statement | Item | Jan-Jun 2024 (RMB) | Jan-Jun 2023 (RMB) | | :--- | :--- | :--- | | Operating Revenue | 100.16 million RMB | 84.54 million RMB | | Operating Cost | 44.98 million RMB | 33.75 million RMB | | Net Profit | -19.05 million RMB | -27.25 million RMB | | Net Profit Attributable to Parent Company Shareholders | -18.47 million RMB | -26.78 million RMB | Key Data from Consolidated Cash Flow Statement | Item | Jan-Jun 2024 (RMB) | Jan-Jun 2023 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -67.89 million RMB | -47.94 million RMB | | Net Cash Flow from Investing Activities | -80.05 million RMB | 36.32 million RMB | | Net Cash Flow from Financing Activities | -46.10 million RMB | -16.58 million RMB | | Net Increase in Cash and Cash Equivalents | -194.19 million RMB | -28.20 million RMB | Notes to Financial Statements Notes to the financial statements detail the company's accounting policies, estimates, and specific items in the consolidated financial statements; operating revenue is primarily categorized into digital wind tunnel testing, cyber range and operations, and security protection and control; accounts receivable are mainly within one year, though some long-aged items exist; the company benefits from high-tech enterprise and software enterprise VAT refund policies - Company revenue recognition policy: revenue from product sales is recognized upon completion of product installation and debugging and receipt of client final acceptance report; revenue from service-type businesses is recognized proportionally over the service period[231] - The company enjoys a 15% corporate income tax preferential rate as a high-tech enterprise, and a VAT refund policy for software products where the actual tax burden exceeds 3%[243][244] Aging Structure of Accounts Receivable (Period-End) | Aging | Book Balance (RMB) | | :--- | :--- | | Within 1 year | 221.82 million RMB | | 1 to 2 years | 62.05 million RMB | | 2 to 3 years | 44.25 million RMB | | Over 3 years | 24.12 million RMB | | Total | 352.25 million RMB |