ISS(SH:600756)2018-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2018 was CNY 391.51 million, a decrease of 13.26% compared to the same period last year[24]. - The net profit attributable to shareholders for the first half of 2018 was CNY 28.54 million, representing a 100.59% increase year-on-year[24]. - The basic earnings per share for the first half of 2018 was CNY 0.088, doubling from CNY 0.044 in the same period last year[25]. - The weighted average return on net assets increased by 0.63 percentage points to 1.32% compared to the previous year[25]. - The net cash flow from operating activities for the first half of 2018 was negative CNY 240.22 million, an improvement of 14.77% compared to the same period last year[24]. - The total assets at the end of the reporting period were CNY 2.78 billion, a decrease of 4.04% from the end of the previous year[24]. - The company achieved a sales revenue of 39,150.81 million yuan, a year-on-year decrease of 13.26%[34]. - The net profit attributable to shareholders increased by 100.59% to 2,853.71 million yuan, with earnings per share rising to 0.088 yuan, also up 100% year-on-year[34]. - Total assets as of June 30, 2018, amounted to 277,748.54 million yuan, a decrease of 4.04% compared to the previous year[34]. - The company's weighted average return on equity was 1.32%, an increase of 0.63 percentage points year-on-year[34]. - The company reported a net loss of CNY 64,508,083.26 for the first half of 2018, compared to a net loss of CNY 41,281,327.94 in the same period of the previous year, representing an increase in loss of approximately 56.2%[83]. Business Operations - The company has established a comprehensive solution for "Internet + Government Services," with applications in over 29 provinces and more than 800 districts and counties[29]. - The company is actively participating in the construction of the national "Internet + Government Services" platform and related standards[29]. - The company has seen rapid business expansion in the fields of public security, education, and market regulation within the electronic government sector[30]. - The company is focusing on cloud computing and big data transformation, enhancing its overall service solutions for clients[34]. - The company is actively pursuing market expansion in the tobacco industry and electronic government sectors, leveraging its integrated marketing platforms[35]. Assets and Liabilities - The total current assets as of June 30, 2018, amount to 1,699,364,783.82 RMB, down from 1,856,049,144.26 RMB at the beginning of the period[71]. - The total non-current assets as of June 30, 2018, are 1,078,120,612.75 RMB, compared to 1,038,257,357.87 RMB at the beginning of the period[73]. - The total liabilities as of June 30, 2018, are 631,416,994.52 RMB, down from 742,850,106.58 RMB at the beginning of the period[74]. - The total equity attributable to the parent company as of June 30, 2018, is 2,145,564,755.99 RMB, slightly down from 2,150,867,928.05 RMB at the beginning of the period[74]. - The asset-liability ratio decreased by 2.93 percentage points to 22.73%[34]. Cash Flow and Investments - The net cash flow from operating activities was negative CNY 240,215,677.89, an improvement from negative CNY 281,838,734.60 in the previous year, indicating a reduction in cash outflow[85]. - Investment activities generated a net cash inflow of CNY 192,299,542.82, compared to CNY 223,990,658.81 in the same period last year, showing a decrease of about 14.2%[86]. - The company reported an investment income of CNY 127,163,546.32, significantly up from CNY 47,749,397.88 year-over-year[79]. - The company received CNY 1,861,841.92 in tax refunds, slightly down from CNY 1,995,799.87 in the previous year[85]. - The company received 100,000,000.00 RMB from borrowings during the period, indicating a new financing strategy[89]. Shareholder Information - The company did not propose any profit distribution or capital reserve transfer to share capital for the mid-year[11]. - The total number of ordinary shareholders at the end of the reporting period was 77,818[64]. - The top shareholder, Inspur Software Group Co., Ltd., holds 61,881,000 shares, representing 19.09% of the total shares[65]. - Wuhan Ruifude Investment Management Center (Limited Partnership) decreased its holdings by 1,000,000 shares, now holding 8,070,294 shares, which is 2.49%[65]. - The company reported a shareholder distribution of 37,271,356.60 RMB during the period[100]. Accounting Policies and Financial Reporting - The company’s financial statements are prepared in accordance with the Chinese accounting standards, ensuring a true and complete reflection of its financial status[108]. - The company recognizes revenue from system integration projects based on the percentage of completion method, recognizing income and expenses according to the proportion of completed work[149]. - 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[136]. - The company recognizes estimated liabilities when there is a present obligation likely to result in an outflow of economic benefits, measured at the best estimate of the required expenditure[146]. - The company confirms deferred tax assets based on the likelihood of future taxable income to offset temporary differences[155].