Nsfocus(SZ:300369)2014-09-28 16:00Financial Performance - Total revenue for the first half of 2014 was CNY 200,287,168.37, a decrease of 11.53% compared to CNY 226,401,340.21 in the same period last year[16]. - Net profit attributable to ordinary shareholders was a loss of CNY 8,612,141.63, representing a decline of 186.25% from a profit of CNY 9,984,567.75 in the previous year[16]. - Basic earnings per share decreased to CNY -0.06, down 175.00% from CNY 0.08 in the previous year[16]. - The company achieved operating revenue of CNY 200.29 million, a decrease of 11.53% compared to the same period last year, primarily due to delays in the sales revenue settlement cycle[29]. - The net profit for the period was a loss of CNY 8.61 million, a decrease of 186.25% year-on-year, mainly attributed to the reduction in sales revenue[29]. - The total comprehensive loss for the current period is CNY 8,328,007.78, compared to a comprehensive income of CNY 9,673,945.04 in the previous period[123]. - The company reported a net loss of CNY 8,612,141.63, compared to a net profit of CNY 9,984,567.75 in the previous period[123]. Cash Flow and Liquidity - The net cash flow from operating activities improved to a negative CNY 42,693,915.38, a 60.07% improvement from negative CNY 106,914,289.39 in the same period last year[16]. - The cash flow from operating activities showed a net outflow of CNY 42.69 million, but this was an improvement of 60.07% compared to the previous year, due to increased collection of accounts receivable[32]. - The total cash inflow from operating activities was 635,967,221.61 CNY, significantly higher than the previous period's 213,948,448.38 CNY[133]. - Total cash and cash equivalents at the end of the period reached 493,801,431.93 CNY, up from 224,435,440.76 CNY at the beginning of the period, reflecting a net increase of 269,365,991.17 CNY[134]. - The company received cash inflows from financing activities totaling 366,252,543.18 CNY, primarily from investment absorption[134]. - Cash outflows from financing activities amounted to 29,114,854.84 CNY, resulting in a net cash flow from financing activities of 337,137,688.34 CNY[134]. Assets and Liabilities - Total assets increased by 29.36% to CNY 949,902,477.46 from CNY 734,910,172.33 at the end of the previous year[16]. - Total current assets rose to ¥860,648,572.11, up from ¥667,948,722.92, marking an increase of 29.0%[115]. - Total liabilities decreased to ¥160,164,268.16 from ¥267,535,096.58, a reduction of 40.0%[117]. - The company's equity increased to ¥789,738,209.30 from ¥466,780,517.08, representing a growth of 69.0%[117]. Research and Development - Research and development investment amounted to CNY 25.01 million, reflecting a significant increase as the company capitalized its R&D expenditures[32]. - The company is actively investing in R&D, focusing on innovative technologies to maintain its competitive advantage in the information security sector[47]. - The company’s development expenditures rose significantly to ¥25,014,879.74 from ¥8,892,033.22, an increase of 181.0%[116]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[5]. - The total number of shareholders at the end of the reporting period was 8,229[103]. - The largest shareholder, INVESTOR AB, holds 22.35% of shares, totaling 30,247,648 shares[103]. - The company completed the 2013 profit distribution plan, distributing a cash dividend of RMB 2.7 per 10 shares, totaling RMB 22.84 million[68]. Market Position and Strategy - The company holds a leading market share in several product categories, including network intrusion prevention systems and web application protection systems, ranking first in the domestic market[46]. - The international market expansion has shown results, with new contract sales increasing by over 60% compared to the same period last year[52]. - The company has registered a wholly-owned subsidiary in Hong Kong to leverage policy advantages for market expansion in Europe and Southeast Asia[52]. Corporate Governance and Compliance - The company has not engaged in any major litigation or arbitration during the reporting period[72]. - The company did not have any related party transactions during the reporting period[80][81][82][83]. - The company has committed to ensuring that any share transfers do not lead to a change in control or competition with the company[92]. Financial Reporting and Accounting - The company adheres to the accounting standards, ensuring that the financial statements accurately reflect its financial position, operating results, and cash flows[170]. - The accounting period runs from January 1 to December 31 each year[171]. - The company recognizes goodwill when the purchase cost exceeds the fair value of identifiable net assets acquired in a business combination[174].