Feitian(SZ:300386)2017-08-25 16:00Financial Performance - Total revenue for the first half of 2017 was CNY 405,963,430.85, representing a 17.44% increase compared to CNY 345,663,292.43 in the same period last year[18]. - Net profit attributable to shareholders decreased by 10.93% to CNY 25,682,025.97 from CNY 28,833,204.44 year-on-year[18]. - Net profit after deducting non-recurring gains and losses fell by 45.13% to CNY 11,714,478.16 compared to CNY 21,348,924.39 in the previous year[18]. - Basic and diluted earnings per share decreased by 14.29% to CNY 0.06 from CNY 0.07 year-on-year[18]. - Operating profit reached CNY 26.20 million, reflecting a 44.17% increase compared to the same period last year[39]. - The company reported a net loss of 4.87 million from its subsidiary Feitian Wangu Intelligent Technology Co., Ltd., which had an operating income of 2.15 million[75]. - The net profit attributable to the parent company was CNY 25,682,025.97, a decrease of 10.5% compared to CNY 28,833,204.44 in the previous period[152]. Cash Flow and Liquidity - Operating cash flow showed a net outflow of CNY 192,617,591.89, worsening by 50.01% from a net outflow of CNY 128,399,046.91 in the same period last year[18]. - Cash and cash equivalents decreased by 60.74% compared to the beginning of the period, mainly due to increased net expenditures on financial investments and the acquisition of Hongsi Electronics[25]. - The company reported a total cash outflow from operating activities of 571,763,214.06 yuan, compared to 486,179,182.20 yuan in the previous period, marking an increase of about 17.6%[161]. - Cash and cash equivalents at the end of the period decreased to CNY 267,960,775.96 yuan, down from 955,006,652.05 yuan, reflecting a decrease of approximately 71.9%[163]. Assets and Liabilities - Total assets increased by 2.69% to CNY 1,861,662,268.49 from CNY 1,812,901,252.26 at the end of the previous year[18]. - Total liabilities increased to CNY 254,550,843.89 from CNY 210,926,024.16, representing a rise of 20.7%[148]. - Cash and cash equivalents at the end of the reporting period were significantly impacted, with cash and cash equivalents decreasing to CNY 318,547,324.4, down 27.64% from CNY 811,302,683.02 year-on-year[50]. - Accounts receivable increased to CNY 106,644,888.83 from CNY 40,333,200.41, reflecting a growth of approximately 164%[141]. Revenue Breakdown - Revenue from USB Key products was 225.07 million yuan, accounting for 55.44% of total revenue, with a growth of 7.93% compared to the previous year[24]. - Revenue from dynamic token products was 84.77 million yuan, representing 20.88% of total revenue, with a decline of 15.71% year-on-year[24]. - The company achieved operating revenue of CNY 405.96 million, a year-on-year increase of 17.44%[39]. Research and Development - Research and development expenses amounted to CNY 61,252,592.41, reflecting a growth of 7.41% from CNY 57,025,921.47 year-on-year[44]. - The company is focused on enhancing its technology development and intellectual property construction to align with industry trends[40]. - The company has been recognized for its innovation capabilities, receiving multiple awards for its patents and intellectual property management[30]. Investments and Acquisitions - The company acquired Hongsi Electronics, resulting in goodwill of CNY 102,294,256.3, which accounted for 5.49% of total assets[50]. - The company has allocated CNY 19.90 million for the acquisition of a 91.36% stake in Beijing Hongsi Electronic Technology Co., Ltd., with the decision approved by the board and shareholders[65]. - The company plans to invest CNY 138.98 million in the identity authentication cloud platform construction project, which was initially intended to be built as a "private cloud" but has shifted to utilizing "public cloud" services to significantly reduce costs[62]. Market and Competition - The company is facing risks from market saturation and intensified competition, particularly in the USB Key and OTP product lines, which are experiencing declining prices[77]. - The financial IC card market is growing, with China's market share exceeding 30%, indicating significant potential but also increasing competition[78]. - The company plans to enhance its R&D investment to improve innovation capabilities and maintain core competitiveness despite the inherent risks[80]. Shareholder and Governance - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company has made commitments regarding shareholding and transfer restrictions for major shareholders, ensuring long-term stability[88]. - The company has not reported any overdue commitments as of the end of the reporting period, indicating effective management of obligations[89]. Legal Matters - The company is involved in multiple patent infringement lawsuits, with claims for damages amounting to 1 million RMB in each case[97]. - The company has filed lawsuits against Beijing Xinan Century Technology Co., Ltd. and Wuhan Xinan Luojia Technology Co., Ltd. for infringing on its patents, seeking compensation of 1 million RMB[98]. - The company has ongoing administrative litigation regarding patent invalidation, with proceedings still in progress as of June 30, 2017[99]. Audit and Compliance - The half-year financial report has not been audited, indicating that the financial data may not be finalized[93]. - The company has not reported any non-standard audit reports in the previous year, indicating compliance with auditing standards[94]. - There were no bankruptcy reorganization matters during the reporting period, reflecting the company's stable financial condition[95].