KINGTELLER(SZ:002177)2018-08-23 16:00Financial Performance - The company's operating revenue for the reporting period was CNY 236,336,302.01, a decrease of 19.60% compared to CNY 293,944,584.56 in the same period last year[17]. - The net profit attributable to shareholders of the listed company was CNY 4,466,584.65, down 75.14% from CNY 17,969,853.80 in the previous year[17]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 2,869,346.96, a decrease of 46.73% compared to CNY 5,386,217.56 last year[17]. - The total profit amounted to ¥2,887,028.07, reflecting a significant decline of 83.94% year-on-year[32]. - The company reported a total comprehensive income of ¥4,481,613.61, down from ¥17,919,106.14, a decrease of about 75% year-over-year[126]. Cash Flow and Liquidity - The net cash flow from operating activities was CNY 14,618,815.45, a significant improvement from a negative cash flow of CNY -146,164,643.07 in the previous year, representing a 110.00% increase[17]. - Cash and cash equivalents increased by ¥27,649,900.00, primarily due to the proceeds from the sale of stocks[27]. - The cash inflow from operating activities decreased to CNY 240.94 million from CNY 272.48 million, a decline of approximately 11.5%[130]. - The ending cash and cash equivalents balance rose to CNY 359.53 million from CNY 45.92 million, indicating a substantial increase[130]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 1,957,774,461.66, a decrease of 5.07% from CNY 2,062,368,704.15 at the end of the previous year[17]. - Total liabilities decreased from CNY 1,127,619,190.28 to CNY 947,422,804.09, a reduction of approximately 16%[124]. - The total equity at the end of the period includes CNY 833,705,092.13 in undistributed profits, showing a decline from the previous period[134]. Earnings Per Share - The basic earnings per share were CNY 0.0059, a decrease of 75.00% compared to CNY 0.0236 in the same period last year[17]. - The diluted earnings per share were also CNY 0.0059, reflecting the same percentage decrease of 75.00%[17]. Research and Development - The company is committed to enhancing its R&D capabilities, with a focus on integrating various biometric technologies into its products[29]. - R&D investment decreased by 32.92% to ¥22,294,404.06, attributed to a reduction in R&D material expenditures[36]. - The company obtained 23 invention patents, 26 utility model patents, and 5 design patents during the reporting period[34]. Market and Operational Challenges - The company faces risks from the rise of electronic payments, which may impact market share and profit margins, necessitating a shift in product structure and profit models[72]. - Human resource risks are highlighted as the company increases its reliance on skilled personnel for maintenance and technology development, emphasizing the need for effective talent management strategies[72]. Strategic Initiatives - The company plans to enhance resource integration capabilities through mergers and acquisitions to achieve rapid growth in technology and market expansion[73]. - The company is focusing on the development of smart self-service devices to support the construction of smart banking[32]. Related Party Transactions - The company reported a related party transaction amounting to 1,336.21 million RMB, which accounted for 98.96% of similar transaction amounts[87]. - The approved transaction limit for related party transactions was 3,000 million RMB, and the company did not exceed this limit[87]. Compliance and Governance - The financial report for the first half of 2018 was not audited[117]. - The company has not undergone any changes in its controlling shareholder or actual controller during the reporting period[106]. - The company adheres to the accounting principles set forth by the Ministry of Finance, ensuring that financial reports accurately reflect its financial status and performance[153].