WISCOM(SZ:002090)2014-08-08 16:00Financial Performance - The company's operating revenue for the first half of 2014 was CNY 543,981,451.96, representing an increase of 18.11% compared to CNY 460,574,620.49 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was CNY 36,387,198.37, a significant increase of 46.66% from CNY 24,810,687.03 year-on-year[20]. - The basic earnings per share rose to CNY 0.1784, reflecting a growth of 46.71% compared to CNY 0.1216 in the previous year[20]. - The net profit after deducting non-recurring gains and losses was CNY 28,386,130.53, which is a 9.42% increase from CNY 25,941,815.47 in the same period last year[20]. - The company reported non-recurring gains of CNY 8,001,067.84 during the reporting period[25]. - The company achieved operating revenue of 543.98 million yuan, an increase of 18.11% year-on-year, driven by growth in power automation and IT businesses[28]. - The net profit attributable to shareholders increased by 46.66% year-on-year, with operating profit and total profit rising by 60.80% and 55.08%, respectively[28]. - The company's operating revenue for the reporting period was ¥543,981,451.96, representing an increase of 18.11% compared to ¥460,574,620.49 in the same period last year[38]. - The operating cost increased by 15.55% to ¥377,877,830.17 from ¥327,031,064.89 year-on-year[38]. - The gross profit margin for the overall business was 30.41%, with a year-on-year increase of 1.42%[42]. - The company reported a net profit of 772.2 million yuan for the first half of 2014, contributing to 22.77% of the total net profit[72]. - The net profit for the current period is CNY 38,417,538.33, representing an increase of 55.7% from CNY 24,682,355.81 in the previous period[130]. - The total comprehensive income for the current period is CNY 38,143,649.72, an increase of 62.9% compared to CNY 23,384,477.64 in the previous period[130]. - The company reported a net profit increase of CNY 26,573,889.97 during the period, indicating strong operational performance[146]. Cash Flow and Financial Position - The net cash flow from operating activities was negative at CNY -54,840,846.84, worsening by 190.04% from CNY -18,907,856.53 in the same period last year[20]. - The total assets at the end of the reporting period were CNY 1,520,661,959.64, a decrease of 1.26% from CNY 1,540,130,855.27 at the end of the previous year[20]. - The net assets attributable to shareholders of the listed company increased to CNY 622,701,448.81, up by 4.16% from CNY 597,843,717.75 at the end of the previous year[20]. - The company's cash and cash equivalents decreased to CNY 111,082,149.55 from CNY 164,030,249.94, a drop of 32.26%[126]. - The total current assets at the end of the reporting period amounted to ¥1,134,938,725.28, a slight decrease from ¥1,147,758,756.46 at the beginning of the period[120]. - The company's total liabilities decreased to CNY 834,043,478.89 from CNY 881,584,618.96, a reduction of 5.37%[124]. - The cash inflow from financing activities totaled 169,514,172.38 CNY, while cash outflow was 207,436,824.34 CNY, resulting in a net cash flow of -37,922,651.96 CNY, contrasting with a positive flow of 34,676,173.18 CNY previously[139]. - The company reported a decrease in cash flow from operating activities, which may impact future operational strategies[139]. - The company plans to enhance its investment recovery strategies to improve cash flow from investing activities moving forward[139]. Investments and Projects - The company won contracts worth 119 million yuan in the national grid's centralized bidding for 110(66)kV substation monitoring systems and related products[29]. - In the field of power automation, the company secured contracts for 3,000 distribution terminals worth 24 million yuan, positioning itself among the top tier of suppliers[29]. - The company established a Smart City Research Institute to drive innovation in smart city solutions, contributing to projects like the Nanjing Youth Olympic Games security communication system[31]. - The company successfully completed network information platform constructions for major public projects, enhancing its role in urban safety and smart city initiatives[31]. - The company won multiple design contracts for wind and solar power projects, including a 100MW wind farm in Shanxi and a 30MW photovoltaic project in Xinjiang[32]. - The company is actively expanding its product range in industrial electrical automation and exploring new business directions in Southeast Asia[35]. - The company is focusing on distributed energy and energy-saving projects in line with national policies, enhancing its service offerings in power engineering design[35]. - The company received 20 million yuan in funding for its wide-area distributed intelligent distribution network project, highlighting its commitment to R&D in smart grid technology[28]. Shareholder and Dividend Information - The company plans not to distribute cash dividends or issue bonus shares for this period[5]. - The company distributed a cash dividend of 1.00 CNY per 10 shares, totaling 20.4 million CNY (including tax) for the 2013 fiscal year[59]. - The company has not made any adjustments or changes to its cash dividend policy during the reporting period[60]. - The company has allocated 20,400,000.00 CNY for profit distribution, indicating a commitment to shareholder returns despite operational challenges[141]. Corporate Governance and Compliance - The company has maintained compliance with corporate governance standards as per the Company Law and relevant regulations[67]. - The company has not faced any penalties or rectifications during the reporting period[98]. - The company has not engaged in any major litigation or arbitration matters during the reporting period[68]. - There were no significant media controversies affecting the company during the reporting period[69]. - The company did not undergo any bankruptcy reorganization during the reporting period[70]. Stock Options and Incentives - The company granted 16 million stock options to 144 incentive targets as part of its first stock option incentive plan[76]. - As of July 31, 2014, 200.31 thousand stock options were exercised, increasing the company's share capital from 20.4 million shares to 20.6 million shares[76]. - The cost of stock options for the incentive plan was recorded as management expenses amounting to 6.3545 million yuan[77]. - The first exercise period for the stock options is from July 10, 2014, to July 9, 2015, with an exercise price of 7.51 yuan per option[76]. - The stock option incentive plan was approved by the board and shareholders, with adjustments made to the list of incentive targets and option quantities[75]. - The company is focused on stimulating the core team's initiative and creativity through the stock option incentive mechanism[75]. Related Party Transactions - The total amount of related transactions for the reporting period is RMB 1,380.48 million[80]. - The company has entered into leasing agreements for office space with related parties, generating rental income of RMB 33.84 million from Jiangsu Jinzhi Group Co., Ltd. and RMB 92.09 million from Jiangsu Jinzhi Education Technology Co., Ltd.[86]. - The rental income from Nanjing Jinzhi Video Technology Co., Ltd. is RMB 23.89 million, and from Nanjing Yunzhi Information Technology Co., Ltd. is RMB 7.86 million[86]. - The actual performance of related transactions during the reporting period did not exceed the expected total amount[80]. Financial Instruments and Accounting Policies - The company’s financial instruments include both financial assets and financial liabilities, classified based on the intent and ability to hold[167]. - Financial liabilities are classified at initial recognition as either financial liabilities measured at fair value with changes recognized in profit or loss, or other financial liabilities[168]. - The company measures financial liabilities at fair value at initial recognition, with transaction costs directly expensed for those measured at fair value, while other financial liabilities include transaction costs in the initial recognition amount[168]. - The company conducts impairment tests on long-term equity investments based on internal and external information, recognizing impairment losses when the recoverable amount is less than the carrying amount[184]. - Fixed assets are depreciated using the straight-line method, with specific depreciation rates for different asset categories, such as 3% for buildings and 9.7% for machinery[187].