I2SOFT(BJ:830799)2023-08-24 16:00Corporate Developments - In February 2023, the company became one of the first stocks to be listed for market-making trading on the Beijing Stock Exchange[6]. - The company was selected as one of the first ecological partners of Baidu's Wenxin Yiyan in February 2023[7]. - In March 2023, the company achieved TMMi Level 3 certification for international software testing maturity[7]. - The company won its first bid for a project with Agricultural Bank of China in April 2023, contributing to the bank's information and digitalization efforts[8]. - From May 2023, the company optimized its strategic layout by establishing branches in multiple cities including Shenzhen, Hefei, and Changsha[8]. Financial Performance - The company's operating revenue for the current period is ¥297,943,010.88, representing a 17.79% increase compared to ¥252,950,050.65 in the same period last year[28]. - The net profit attributable to shareholders of the listed company is ¥23,579,558.11, which is a 35.32% increase from ¥17,425,060.38 in the previous year[28]. - The total assets at the end of the current period amount to ¥812,012,982.73, reflecting a 13.56% increase from ¥715,066,649.44 at the end of the previous year[29]. - The total liabilities increased by 30.13% to ¥464,253,638.54 from ¥356,762,096.50 year-over-year[29]. - The company's net cash flow from operating activities is -¥92,443,997.78, which is a 14.63% decline compared to -¥80,646,325.04 in the previous year[29]. - The company has a gross profit margin of 33.09%, slightly up from 32.50% in the same period last year[28]. - The company's basic earnings per share increased by 37.50% to ¥0.11 from ¥0.08 in the previous year[28]. - Operating profit reached 26.03 million yuan, an increase of 53.34% compared to the previous year[46]. - Net profit was 26.89 million yuan, reflecting a growth of 52.51% year-on-year[46]. Research and Development - The company has established a comprehensive intellectual property system and product system, focusing on digital solutions for financial institutions[34]. - The company obtained 3 new software technology invention patents, bringing the total to 22, and 41 new software copyrights, totaling 356[37]. - Research and development expenses increased by 18.54% to CNY 38,306,201.58, accounting for 12.86% of total revenue[66]. - The company is actively researching and implementing new technologies, particularly in artificial intelligence, to enhance service delivery and maintain competitive advantage[85]. - The company is focused on continuous technological innovation to adapt to the evolving needs of the financial industry[85]. Market Trends and Industry Insights - The digital economy in China has surpassed 45 trillion yuan, accounting for 39.8% of the GDP[48]. - The software industry in China saw a revenue increase of 14.2% year-on-year, reaching 551.7 billion yuan in the first half of 2023[48]. - The financial technology market in China was valued at 532.1 billion yuan in 2022, with projections to exceed 850 billion yuan by 2025[55]. - The financial technology industry confidence index reached its highest level in three years, with an average score of 82.8 in 2023[56]. - The overall market size of China's financial technology reached approximately 542.3 billion yuan in 2022, maintaining a growth rate of around 10% from 2016 to 2020[57]. Client and Project Engagement - The company added new industry clients, including Agricultural Bank of China and Bank of China Consumer Finance, focusing on tailored projects[45]. - The company continues to deepen its involvement in the financial innovation and industry ecosystem, providing compliant hardware and software solutions to commercial banks[44]. - The company is actively expanding its outreach to non-bank financial institutions amid the digital transformation wave in the financial sector[1]. Employee and Management Changes - The total number of employees decreased from 2,073 at the beginning of the period to 1,988 at the end, a reduction of approximately 4.1%[133]. - The company has appointed three new independent directors to enhance governance and oversight[126]. - The core team remains stable during the reporting period, and the company plans to implement employee incentive programs to reduce the risk of core personnel turnover and technology leakage[1]. Financial Management and Cash Flow - The company experienced a 55.37% decrease in financial expenses, attributed to increased cash management efficiency and higher interest income[67]. - Cash flow from investment activities saw a significant increase of 186.18%, primarily due to a net inflow of CNY 40 million from term deposits[78]. - The company reported a decrease in cash paid for debt repayment to $50,685,900.00 from $120,000,000.00, indicating improved cash management[160]. - The net change in cash and cash equivalents was positive, contrasting with a negative change of $45,530,637.32 in the previous period, highlighting improved liquidity[160]. Governance and Compliance - The company has no significant litigation or arbitration matters during the reporting period, with a total of 238,007.93 yuan in minor claims, representing 0.07% of the net assets[90]. - There are no instances of shareholders or related parties occupying or transferring the company's funds, assets, or other resources during the reporting period[96]. - The financial statements were approved for release by the board on August 24, 2023[179]. Accounting Policies and Financial Reporting - The company has not changed its accounting policies or estimates compared to the previous year[176]. - The company will recognize goodwill if the acquisition cost is less than the fair value of identifiable net assets acquired[183]. - Financial assets are classified into three categories upon initial recognition: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in profit or loss[184].