ISS(SH:600756)2017-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2017 was CNY 451.36 million, representing a 25.11% increase compared to CNY 360.77 million in the same period last year[23]. - The net profit attributable to shareholders of the listed company decreased by 35.17% to CNY 14.23 million from CNY 21.94 million year-on-year[23]. - The basic earnings per share dropped by 38.03% to CNY 0.044 from CNY 0.071 in the previous year[24]. - The net cash flow from operating activities was negative at CNY -281.84 million, worsening from CNY -228.81 million in the same period last year, a decline of 23.17%[23]. - The total assets decreased by 11.57% to CNY 2.73 billion from CNY 3.09 billion at the end of the previous year[23]. - The company's net assets attributable to shareholders decreased by 0.71% to CNY 2.03 billion compared to CNY 2.05 billion at the end of the previous year[23]. - The company achieved a sales revenue of 451.36 million yuan, representing a year-on-year increase of 25.11%[35]. - The net profit attributable to shareholders was 14.23 million yuan, a year-on-year decrease of 35.17%[35]. - The total assets amounted to 2.73 billion yuan, showing a year-on-year decline of 11.57%[35]. - The company’s weighted average return on equity was 0.69%, down by 0.66 percentage points year-on-year[35]. - The company’s asset-liability ratio was 25.73%, a decrease of 8.11 percentage points year-on-year[35]. - The company reported a total of 204,640,198.19 RMB in related party transactions, accounting for 70.89% of similar transactions[57]. - The company reported a total asset of ¥2,734,400,125.99 as of June 30, 2017, down from ¥3,092,035,500.07 at the beginning of the period, indicating a decrease of approximately 11.6%[77]. - The company reported a financial expense of CNY -475,688.59, an improvement compared to CNY -2,528,291.98 in the previous year[81]. - The total equity amounted to CNY 1,700,517,698.64, a decrease from CNY 1,770,453,639.39 in the previous year[80]. Cash Flow and Investments - The net cash flow from operating activities decreased by 23.17% to RMB -281,838,734.60, compared to RMB -228,811,945.34 in the previous year[41]. - Investment activities generated a net cash flow of RMB 223,990,658.81, a significant improvement from RMB -716,855,604.23 in the same period last year, marking a 131.25% change[41]. - The company reported cash outflow from operating activities of ¥834,174,360.07, which is an increase from ¥586,713,905.76 in the previous period[88]. - The company raised ¥976,178,761.16 from financing activities, a significant increase compared to the previous period[89]. - The company reported a significant increase in cash inflow from investment activities, totaling 321,780,110.76 RMB, compared to 13,232,989.11 RMB in the previous period[91]. - The company incurred a cash outflow of 110,423,561.98 RMB for investment activities, a decrease from 738,124,802.61 RMB previously, indicating reduced capital expenditures[91]. Business Strategy and Market Position - The company is focusing on expanding its electronic government services, which are a core business area, in response to national policies promoting internet-based government services[28]. - The company has a strong market position in the tobacco information technology sector, with its main product covering 33 provincial tobacco monopolies[28]. - The company is focusing on cloud computing and big data transformation, increasing R&D investment in these key areas[34]. - The company plans to enhance its e-commerce platform capabilities, providing customized solutions across various industries[36]. - The company is actively promoting its smart government solutions, with applications in 29 provinces and recognition from national authorities[37]. - The company expanded its electronic cigarette marketing platform to 33 provincial companies, ensuring a dominant position in the market[35]. Shareholder and Corporate Governance - The company has not proposed any profit distribution or capital reserve transfer plan for the mid-year[10]. - The total number of ordinary shareholders at the end of the reporting period was 65,543[62]. - The largest shareholder, Inspur Software Group Co., Ltd., held 61,881,000 shares, accounting for 19.09% of the total shares[64]. - The second-largest shareholder, Wuhan Ruifude Investment Management Center (Limited Partnership), held 9,070,294 shares, representing 2.80%[64]. - The board of directors and supervisory board were re-elected on April 19, 2017, with new members appointed[67]. - The company confirmed that there were no major changes or updates regarding its stock incentive plans or employee stock ownership plans[55]. Accounting and Financial Reporting - The company did not report any non-standard audit reports from the previous year's financial statements[54]. - There were no significant changes in the company's integrity status during the reporting period[55]. - The company did not experience any large sales returns during the reporting period[57]. - The company did not report any changes in its total share capital or share structure during the reporting period[61]. - The company did not disclose any major contracts or guarantees during the reporting period[59]. - The company did not report any significant accounting errors that required restatement[59]. - The company has included 14 subsidiaries in its consolidated financial statements for the reporting period[107]. - The financial statements were approved by the board of directors on August 29, 2017[106]. Assets and Liabilities - The company's total assets at the end of the reporting period were 1,950,505,645.14 RMB[100]. - The company's cash and cash equivalents decreased to ¥264,788,728.15 from ¥359,308,286.66, representing a reduction of approximately 26.3%[75]. - Total liabilities amounted to ¥703,452,371.51, down from ¥1,046,360,835.24, showing a decrease of approximately 32.8%[77]. - The company's equity attributable to shareholders was ¥2,031,425,314.27, slightly down from ¥2,045,853,667.90, indicating a decrease of about 0.7%[77]. - The company reported a significant decrease in financial assets measured at fair value, with a change of RMB -183,920,279.56, impacting current profits by RMB 1,280,189.79[47]. Research and Development - The increase in employee compensation and R&D investment contributed to the decline in net profit[25]. - Research and development expenses increased by 6.29% to RMB 33,823,710.08 from RMB 31,820,628.22 year-on-year[41]. - The company recognizes research and development expenses incurred during the research phase as current period losses, while development phase expenses that meet the criteria are capitalized as intangible assets[140].