AVIT(SZ:300264)2017-08-17 16:00Business Expansion and Partnerships - The company plans to expand its business coverage to over 70% of the country, including regions such as Shaanxi, Guangdong, and Xinjiang, with 12 new partnerships established in 2017, 4 of which were launched in the first half of the year and 8 planned for the second half[6]. - The company is currently in a peak period for bidding on multiple large projects, which are expected to contribute to business growth in the second half of the year[65]. - The company aims to leverage its cable television network advantages to promote the rapid transmission of virtual reality services to households[66]. - The company has established deep cooperation with various telecom and internet TV channels, providing over 300 excellent game products[61]. - The company is focusing on market expansion strategies, targeting new demographics and regions to enhance its market presence[55]. Financial Performance - Total revenue for the reporting period was ¥78,286,555.16, a decrease of 8.25% compared to the same period last year[22]. - Net profit attributable to shareholders was -¥19,310,197.28, representing a decline of 563.66% year-over-year[22]. - The company reported a total revenue of 1.5 billion RMB for the first half of 2017, representing a year-over-year increase of 20%[58]. - The company reported a significant increase in user engagement, with a 68.23% rise in the number of active users compared to the previous year[94]. - The company anticipates a continued upward trend in revenue, projecting a total of 1,000 million for the next quarter, which would mark a 78% increase year-over-year[95]. Research and Development - The company is engaged in the development of digital television systems, cloud platforms, and various technology products, including virtual reality and big data applications[29]. - The company has established several engineering technology centers and laboratories to strengthen its research and development capabilities in the broadcasting industry[29]. - The company aims to enhance its competitive edge by investing in research and development, as indicated by its growing patent portfolio[41]. - The company’s R&D investment reached 24.8 million yuan, an increase of 33.37% compared to the same period last year[73]. - The company has invested 200 million RMB in R&D for new technologies aimed at improving user experience and game performance[58]. Software Development and Innovation - The company holds a total of 517 software copyrights as of the end of the reporting period, with 122 new copyrights added during the reporting period[47]. - The company launched multiple software products, including the Click Video On-Demand System V3.0 and the OSS Planner User Management System V2.5, enhancing its digital television offerings[49]. - The company is committed to innovation, as evidenced by the continuous updates to its software products, ensuring they remain competitive in the rapidly evolving media landscape[49]. - The company is actively pursuing new technologies in the field of digital television and multimedia, with a significant number of patents related to these areas[44]. - The company has launched multiple new IPTV game software versions, including "IPTV Golden Miner" and "IPTV Brain Test," enhancing its product portfolio[53]. User Engagement and Market Strategy - User data indicates a growth in active users by 15%, reaching 3 million active users by the end of June 2017[59]. - The company reported a significant increase in user engagement, with a notable rise in active users across its gaming platforms[53]. - The management emphasized the importance of maintaining high-quality content to retain and grow its user base[53]. - The company is focusing on strategic acquisitions to bolster its competitive position in the IPTV gaming sector[53]. - The company is exploring partnerships with other tech firms to leverage synergies in product development and distribution[53]. Challenges and Risks - The company has faced challenges in achieving expected returns due to a slowdown in the broadcasting industry's growth and customer demand[87]. - The company has a risk of dependency on major clients due to the consolidation of cable TV operators, necessitating the development of new customer relationships[108]. - The company has implemented a talent retention strategy, focusing on recruiting high-tech and R&D personnel from top universities to mitigate the risk of talent loss[109]. - The company has noted that the rapid technological updates in the broadcasting industry necessitate ongoing adjustments and upgrades to its project technologies[88]. - The company is committed to overcoming technological challenges in the virtual reality sector, investing both funds and human resources to achieve successful commercialization[111]. Sustainability and Corporate Governance - The company is committed to sustainability and plans to integrate eco-friendly practices in its operations and product development[53]. - The company has no significant environmental protection issues and is not classified as a key pollutant discharge unit[138]. - The company has maintained a good integrity status with no significant debts or legal judgments pending against the controlling shareholder[125]. - The company has not engaged in any major litigation or arbitration matters during the reporting period[122]. - The company has no ongoing stock incentive plans or employee stock ownership plans[126].