ECC(SH:600850)2015-08-17 16:00Financial Performance - The company achieved operating revenue of CNY 2.39 billion, a decrease of 2.38% compared to the same period last year[23]. - The net profit attributable to shareholders was CNY 105.37 million, representing a year-on-year increase of 17.76%[23]. - The net profit after deducting non-recurring gains and losses was CNY 110.67 million, up 29.75% from the previous year[17]. - Basic earnings per share rose to CNY 0.3275, an increase of 17.76% year-on-year[18]. - The company reported a significant revenue increase in the South Central region by 56.70% and in the Southwest region by 95.19%[33]. - Total operating revenue for the first half of 2015 was CNY 2,389,287,722.28, a decrease of 2.4% compared to CNY 2,447,482,590.89 in the same period last year[83]. - Net profit for the first half of 2015 was CNY 105,064,610.38, an increase of 3.3% compared to CNY 101,391,365.14 in the same period last year[85]. - The company's net profit for the first half of 2015 was -38,070,320.57 RMB, compared to -33,464,045.48 RMB in the same period of the previous year, indicating a decline of approximately 13.5%[88]. Asset Management - The company's total assets increased by 1.76% to CNY 3.92 billion compared to the end of the previous year[17]. - The total assets at the end of the reporting period were ¥3,923,679,357.24, up from ¥3,855,841,249.69, representing an increase of approximately 1.8%[78]. - The total current assets at the end of the reporting period amounted to ¥3,821,200,084.03, an increase from ¥3,737,660,358.88 at the beginning of the period, reflecting a growth of approximately 2.3%[76]. - The total non-current assets decreased to ¥102,479,273.21 from ¥118,180,890.81, indicating a decline of about 13.3%[77]. - The total equity attributable to shareholders of the parent company rose to ¥1,442,106,768.75 from ¥1,406,570,140.71, reflecting an increase of approximately 2.5%[78]. Cash Flow - The net cash flow from operating activities improved by 19.68%, reaching -CNY 158.35 million[17]. - The net cash flow from operating activities was CNY -158,349,762.71, an improvement of 19.68% from CNY -197,142,785.66 in the previous year[30]. - Cash and cash equivalents decreased to ¥536,960,088.67 from ¥877,941,031.34, representing a decline of about 38.8%[76]. - The ending balance of cash and cash equivalents was 24,193,871.81 RMB, down from 53,278,131.17 RMB in the previous period[94]. - Cash and cash equivalents at the end of the period were 530,139,105.07 RMB, an increase from 493,200,830.47 RMB at the end of the previous year, reflecting a growth of approximately 7.5%[91]. Investment and Mergers - The company plans to enhance its market competitiveness through mergers and acquisitions, as well as optimizing resource allocation[30]. - The company plans to invest up to 43.2 million yuan in acquiring equity and subscribing to the increased registered capital of Shanghai Jiaoxiang Technology Co., Ltd.[44]. - The company plans to issue shares and pay cash to acquire 100% equity of Shanghai Baifei Electronics Technology Co., Ltd. and 55% equity of Shanghai Huaxun Network Storage Co., Ltd., along with 45% equity of Huacong Data Information Technology Co., Ltd.[49]. - The company completed the exit from investments in Shanghai Huachuang Information Technology Import and Export Co., Ltd. and Shanghai Internet of Things Co., Ltd. through unilateral capital reduction during the reporting period[37]. Corporate Governance - The company has maintained its corporate governance structure in compliance with relevant regulations and has not encountered any discrepancies[60]. - The company has appointed Zhonghuan Haihua Accounting Firm as its financial report auditing institution for the year 2015[58]. - The total number of shareholders at the end of the reporting period is 12,312[63]. - The largest shareholder, East China Computer Technology Research Institute, holds 148,165,666 shares, representing 46.05% of total shares[65]. Research and Development - Research and development expenses amounted to CNY 72,862,053.62, a decrease of 6.27% from CNY 77,737,971.73 in the previous year[30]. - The company is focusing on innovation in education and food safety sectors, launching the "i-WE" brand for K12 education solutions[34]. Taxation - The company enjoys a corporate income tax rate of 15.0% for several subsidiaries, including the main company and Huacong Data[200]. - The company has been recognized as a high-tech enterprise, allowing it to benefit from a reduced corporate income tax rate of 15.0% from September 2012 to September 2015[200]. - The company and its subsidiaries are subject to various tax rates for different types of taxes, including a value-added tax rate of 17.0%/6.0%[199]. Financial Instruments and Accounting Policies - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance, ensuring compliance and accuracy[114]. - The company’s accounting policies include specific methods for bad debt provisions and inventory valuation, reflecting its operational characteristics[116]. - Financial assets will be classified and measured based on their nature, with initial recognition at fair value[132]. - The company assesses receivables for impairment based on objective evidence, such as significant financial difficulties of the debtor or breach of contract, and recognizes impairment losses accordingly[143].