Absen(SZ:300389)2016-08-26 16:00Financial Performance - Total revenue for the first half of 2016 reached ¥508,674,172.09, an increase of 11.69% compared to ¥455,433,885.48 in the same period last year[17]. - Net profit attributable to ordinary shareholders was ¥60,764,412.62, representing a growth of 37.60% from ¥44,159,218.20 year-on-year[17]. - The net profit after deducting non-recurring gains and losses was ¥59,650,142.35, up 48.95% from ¥40,048,291.37 in the previous year[17]. - Basic earnings per share increased to ¥0.1913, reflecting a growth of 37.63% from ¥0.1390 in the same period last year[17]. - Total operating revenue for the first half of 2016 was CNY 508,674,172.09, an increase of 11.7% compared to CNY 455,433,885.48 in the same period of 2015[149]. - Net profit attributable to the parent company was CNY 60,764,412.62, up 37.5% from CNY 44,159,218.20 year-on-year[150]. - The total profit before tax was ¥96,825,434.86, an increase of 96.5% from ¥49,264,862.81 in the previous period[152]. Cash Flow and Liquidity - The net cash flow from operating activities improved to -¥43,721,660.57, a 29.29% reduction in losses compared to -¥61,831,454.91 last year[17]. - The company's cash and cash equivalents decreased to CNY 305,055,252.83 from CNY 445,862,286.36, representing a decline of about 31.6%[139]. - The cash flow from operating activities showed a net outflow of ¥43,721,660.57, an improvement from the previous period's outflow of ¥61,831,454.91[156]. - The total cash and cash equivalents at the end of the period were ¥287,895,561.80, down from ¥422,762,170.97 at the beginning of the period[157]. - The net cash flow from financing activities was -47,522,619.36 CNY for the first half of 2016, compared to -35,410,344.34 CNY in the same period of 2015, reflecting a worsening in financing cash flow[160]. Market and Business Strategy - The company is focusing on expanding its market presence and developing new technologies in the LED display sector[17]. - The company plans to enhance its competitiveness through increased R&D and market investment, aiming to expand both domestic and international markets[23]. - The company signed LED display sales contracts totaling approximately RMB 586 million, representing a year-on-year growth of about 22%[32]. - The company aims to mitigate overseas business expansion risks by increasing investment in domestic markets to diversify its revenue sources[27]. - The small-pitch LED display market is experiencing strong demand, with expectations for continued high growth in the coming years due to technological advancements and cost reductions[53]. Investments and Acquisitions - The company has made a 60% acquisition of Shenzhen Weistek Optoelectronic Technology Co., Ltd., which is expected to face challenges in meeting its 2016 profit commitment of RMB 25 million[28]. - The company plans to acquire 51% of Artixium for $4.5 million, as per the investment memorandum signed[114]. - The company intends to purchase a property in Longgang District, Shenzhen, with a total price not exceeding RMB 122 million for an area of 4,722.93 square meters[115]. Shareholder and Equity Information - The company distributed a cash dividend of RMB 2.00 per 10 shares, totaling RMB 32,041,664.00, based on a total share capital of 160,208,320 shares[74]. - The company completed the repurchase and cancellation of 954,400 shares, resulting in a new total share capital of 15,253,920 shares[74]. - The total share capital of the company increased from 15,925,392 shares to 31,946,223 shares after the 2015 annual equity distribution[121]. - Major shareholder Ding Yanhui holds 25.49% of shares, totaling 81,439,765 shares[127]. - The total number of shareholders at the end of the reporting period is 9,209[127]. Risks and Challenges - The company faces risks from intensified industry competition, which may lead to the elimination of smaller enterprises if it does not strengthen its marketing, product development, and customer service[23]. - The company is also at risk of declining gross margins due to the maturity of the LED display industry and rapid product updates[24]. - The company’s financial performance indicates a need for strategic adjustments to improve profitability and shareholder returns[169]. Research and Development - The company's R&D investment increased by 14.50% to CNY 16.37 million, reflecting a commitment to enhancing product development[37]. - The company is continuing to develop a new generation of ultra-thin and ultra-light rental displays, which are characterized by simple structure, lightweight, intelligent monitoring, cloud backup, and support for multiple scenarios[50]. - The company aims to increase R&D investment and technological innovation to enhance product competitiveness and profitability[107]. Corporate Governance - The company has not engaged in any significant related party transactions during the reporting period[91]. - The company has committed to a profit-sharing principle that prioritizes equal treatment of shareholders and sustainable development[105]. - The company will ensure that any stock reduction will not exceed 25% of total shares held within two years after the lock-up period[105].