NSU(SZ:002089)2017-08-22 16:00Financial Performance - The company's operating revenue for the first half of 2017 was ¥622,245,600.19, a decrease of 52.57% compared to ¥1,311,947,153.66 in the same period last year[18]. - The net profit attributable to shareholders of the listed company increased by 42.67% to ¥56,020,728.71 from ¥39,266,050.34 year-on-year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 38.87% to ¥23,446,647.15 compared to ¥38,358,044.04 in the previous year[18]. - Basic and diluted earnings per share increased by 42.66% to ¥0.0408 from ¥0.0286 year-on-year[18]. - The company reported a net profit attributable to shareholders of 56.02 million yuan, an increase of 42.67% year-on-year[45]. - The company's total revenue for the communication manufacturing sector was approximately $260.21 million, a decrease of 73.48% year-over-year[52]. - The LED product segment saw a revenue increase of 69.28% year-over-year, reaching approximately $136.03 million, with a gross margin of 30.54%[52]. - The company's investment income amounted to approximately $66.05 million, accounting for 88.76% of the total profit[54]. - The company reported a significant increase in prepayments, which rose to CNY 693,702,728.26 from CNY 550,658,136.13, an increase of about 25.9%[179]. - The company reported a significant increase in inventory, rising by 1.04% to approximately $301.76 million[57]. Cash Flow and Assets - The net cash flow from operating activities improved by 34.31%, reaching -¥103,198,418.47, compared to -¥157,092,108.96 in the same period last year[18]. - The company reported a decrease in cash and cash equivalents by 43,569.49 million, a reduction of 60.60%, primarily due to significant investment payments and the redemption of maturing notes payable[36]. - Cash and cash equivalents decreased by 7.87% to approximately $283.33 million compared to the previous year[57]. - The company's cash and cash equivalents decreased to CNY 283,332,880.65 from CNY 719,027,836.55, representing a decline of approximately 60.7%[179]. - The total assets at the end of the reporting period were ¥5,144,685,580.07, a decrease of 4.29% from ¥5,375,449,361.89 at the end of the previous year[18]. - The company's total assets decreased to CNY 3,343,696,965.95 from CNY 3,679,001,218.69, a decline of about 9.1%[186]. - The company's total liabilities decreased to CNY 3,085,512,302.40 from CNY 3,339,014,083.29, a decline of about 7.6%[181]. - The company's equity totaled CNY 1,686,738,550.56, slightly down from CNY 1,716,347,236.95, a decrease of approximately 1.7%[186]. Business Operations and Strategy - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company's main business includes research, production, and sales of communication products, software and services, and LED products, focusing on "new energy" and "large communication" sectors[26]. - The main products include new energy electric logistics vehicles and supporting power batteries, LED products, and communication hardware and software services[27]. - The company plans to add over 300 R&D engineers by 2020, increasing the total R&D personnel to over 500[40]. - The company has integrated resources to support its strategic transformation, focusing on high-margin businesses in the "new energy" and "big communication" sectors[44]. - The company is focusing on cost control and technology investment to improve product competitiveness and market share[77]. - The company is enhancing cooperation with financial institutions to optimize funding allocation and support its subsidiaries in the new energy sector[77]. - The company is focusing on developing emerging advantageous businesses related to new energy and the internet to improve product profit margins[86]. Employee and Shareholder Information - The company plans to implement a third employee stock ownership plan, indicating a focus on employee engagement and retention[156]. - The total number of common shareholders at the end of the reporting period was 53,289[163]. - The largest shareholder, Zhang Yibin, holds 18.05% of the shares, with a total of 248,136,106 shares, having increased his holdings by 124,068,053 shares[163]. - The second-largest shareholder, Ma Lingzhi, holds 16.46% of the shares, totaling 226,299,842 shares, with an increase of 113,149,921 shares[163]. - The National Social Security Fund holds 2.81% of the shares, totaling 38,599,998 shares, having increased by 18,011,190 shares[163]. Risks and Challenges - The company is facing policy risks in the new energy vehicle industry due to gradual subsidy reductions by the government[75]. - The company is facing potential volatility in military communication product sales due to changes in defense spending policies[82]. - The company has experienced a decline in gross margins due to rising costs in traditional software outsourcing, necessitating a shift towards competitive products[85]. Leasing and Financial Agreements - The company has entered into multiple leasing agreements, with monthly rents ranging from CNY 13 to CNY 22 per square meter for various office spaces[111][113]. - The financing lease amount with Haitong Hengxin is CNY 216 million, with a lease term of 3 years and a floating interest rate based on a 5% reduction from the benchmark rate[144]. - The financing lease amount with Far East International is CNY 105.26 million, with a lease term of 3 years and a floating interest rate[145]. - The company has a lease agreement with China Mobile Jiangsu Co., Ltd. for a communication base station at an annual rent of 13,200 RMB, with a lease term of 3 years from April 6, 2014, to April 5, 2017[132]. Miscellaneous - The company has not conducted an audit for the semi-annual financial report[94]. - There were no major litigation or arbitration matters during the reporting period[96]. - The company has not experienced any bankruptcy reorganization matters during the reporting period[95]. - The company has not initiated any targeted poverty alleviation work and has no subsequent plans for such initiatives[142].