BROADEX(SZ:300548)2018-08-22 16:00Financial Performance - Total revenue for the first half of 2018 was CNY 118,101,744.47, a decrease of 35.60% compared to CNY 183,391,251.89 in the same period last year[23]. - Net profit attributable to shareholders was CNY 29,115,847.36, down 30.70% from CNY 42,014,813.17 year-on-year[23]. - Net profit after deducting non-recurring gains and losses was CNY 21,005,550.96, a decline of 40.37% compared to CNY 35,226,800.59 in the previous year[23]. - Basic earnings per share decreased to CNY 0.35, down 31.37% from CNY 0.51 in the previous year[23]. - The overall gross margin decreased by 5.45 percentage points due to the decline in active device sales[31]. - The company reported a total profit for the first half of 2018 of CNY 33,483,600.06, down from CNY 49,699,685.68, a decrease of approximately 32.6%[142]. - Comprehensive income for the first half of 2018 totaled CNY 31,043,215.06, down from CNY 42,008,323.47, indicating a decline of approximately 26.1%[143]. Cash Flow and Liquidity - Operating cash flow for the period was CNY 69,876,978.04, a significant increase of 464.93% from a negative CNY 19,147,961.49 in the same period last year[23]. - The company achieved a cash flow from operating activities of 69.88 million yuan, a significant increase of 464.93% compared to the previous year[43]. - Cash and cash equivalents increased by 151.38 million yuan, a rise of 250.19% due to increased sales and investment returns[43]. - The company reported a significant increase in cash flow, indicating improved liquidity and operational efficiency[132]. - Cash and cash equivalents at the end of the period increased to CNY 305.7 million, compared to CNY 77.2 million at the end of the previous period[150]. Sales and Revenue Breakdown - Domestic sales revenue was 77 million yuan, a decline of 5.98%, accounting for 65.18% of total sales[39]. - International sales revenue was 41 million yuan, a significant drop of 59.49%, making up 34.82% of total sales[39]. - Revenue from passive optical devices reached 105 million yuan, an increase of 0.72% year-on-year[39]. - Revenue from active optical devices was 13 million yuan, a sharp decline of 83.83% compared to the previous year[39]. Investments and Acquisitions - The company plans to acquire Chengdu Dipu Optoelectronics Technology Co., Ltd. to gain access to PON optical module technology[35]. - The company completed a 50 million USD investment in its wholly-owned subsidiary, Broadex Technologies Inc., to expand its operations in the United States[40]. - The company acquired 100% equity of Chengdu Dipu Optoelectronics Technology Co., Ltd. for 118 million yuan, enhancing its strategic layout in active devices[40]. - The company is actively pursuing strategic investments and acquisitions to expand its business scope and enhance partnerships[10]. Risks and Challenges - The company faces risks related to fluctuations in customer demand, potential declines in product gross margins, and challenges in technology upgrades[6][7][8]. - The company anticipates a potential decline in gross profit margins due to increased competition and price reductions in the optical device industry, as many products are entering maturity[75]. - The company has raised concerns about the potential inability of fundraising investment projects to meet expected benefits due to various external factors, including market competition and changes in macroeconomic conditions[77]. Research and Development - Research and development expenses were 7.69 million yuan, down 28.09% year-on-year[43]. - The company has established core technologies in optical chip processing and packaging, with 20 patents in hand[35]. - The company aims to enhance R&D investment in cutting-edge fields to cultivate new technology platforms and products for future business growth[64]. Shareholder and Equity Information - The company does not plan to distribute cash dividends or issue bonus shares for the 2018 interim period[11]. - The company has a commitment to maintain shareholding stability among major shareholders, with restrictions on share transfers for a specified period[81]. - The total number of shares is 82,670,000, with 58.74% being restricted shares[112]. Financial Position - Total assets at the end of the reporting period were CNY 688,965,161.61, a slight increase of 0.26% from CNY 687,195,289.62 at the end of the previous year[23]. - Total liabilities decreased from CNY 69,175,721.68 to CNY 56,436,378.61, representing a reduction of approximately 18.4%[134]. - Owner's equity increased from CNY 618,019,567.94 to CNY 632,528,783.00, showing a growth of about 2%[135]. Compliance and Governance - The financial report for the first half of 2018 was not audited[130]. - The financial statements have been approved by the board of directors on August 21, 2018, ensuring compliance with accounting standards[168]. - The company has not reported any significant non-equity investments during the reporting period[57].