Revenue and Profitability - Revenue for the six months ended June 30, 2022, was RMB 3.109 billion, representing a 14.5% increase from RMB 2.715 billion in the same period of 2021[20]. - Revenue from new business segments reached RMB 1.004 billion, a significant increase of 81.4% compared to RMB 0.553 billion in the previous year[20]. - Net profit for the period was RMB 0.189 billion, down 32.4% from RMB 0.280 billion in the same period last year[20]. - Net profit margin decreased to 6.1%, down 4.2 percentage points from 10.3%[20]. - Net profit excluding equity incentive expenses was RMB 0.262 billion, a decrease of 15.7% from RMB 0.310 billion[20]. - In the first half of 2022, the company achieved a revenue of approximately RMB 3.109 billion, representing a year-on-year increase of 14.5%[23]. - The company's new business segment generated revenue of approximately RMB 1.00 billion, representing a significant year-on-year growth of 81.4%, accounting for 32.3% of total revenue[35]. - Net profit for the first half of 2022 was approximately RMB 189 million, a decrease of 32.4% compared to RMB 280 million in the same period of 2021, with a net profit margin of 6.1%[34]. - Profit before tax decreased to RMB 213,755 thousand, down 31.2% from RMB 310,798 thousand in the previous year[105]. - Basic earnings per share for the period was RMB 0.21, down from RMB 0.30 in the same period last year[105]. Cash Flow and Operating Activities - Cash used in operating activities was RMB (0.546) billion, a significant increase of 210.1% compared to RMB (0.176) billion in the previous year[20]. - Cash used in operating activities, excluding one-off factors, was RMB (0.363) billion, an increase of 106.5% from RMB (0.176) billion[20]. - In the first half of 2022, the net cash used in operating activities was approximately RMB (545,535) thousand, compared to RMB (175,924) thousand for the same period in 2021[112]. - The net cash used in investing activities for the first half of 2022 was approximately RMB 184 million, primarily due to the acquisition of iResearch Consulting[58]. - The company reported a net cash outflow from investing activities of RMB (183,672) thousand for the six months ended June 30, 2022, compared to a net inflow of RMB 76,691 thousand in 2021[112]. - Cash and cash equivalents decreased to RMB 1,271,980 thousand from RMB 2,331,821 thousand at the end of 2021, indicating a liquidity contraction[106]. Expenses and Costs - Gross profit margin was 33.9%, a decrease of 2.8 percentage points from the previous year[20]. - Operating costs were approximately RMB 2.056 billion, a year-on-year increase of 19.7% from RMB 1.718 billion in the same period of 2021[39]. - Sales and marketing expenses amounted to approximately RMB 259 million, a year-on-year increase of 29.5%, accounting for 8.3% of revenue[41]. - Administrative expenses were approximately RMB 154 million, up 36.6% year-on-year, primarily due to the acquisition of iResearch Consulting[42]. - Research and development expenses reached approximately RMB 487 million, a year-on-year increase of 10.0%, accounting for 15.7% of revenue[43]. - The total employee costs amounted to RMB 1,868,183,000, an increase from RMB 1,715,450,000 in the same period of 2021, representing a growth of approximately 8.9%[131]. Business Segments and Growth - The company is focusing on expanding its new business segments, which have shown substantial growth[20]. - The company's DSaaS business generated approximately RMB 484 million in revenue, a year-on-year increase of 56.7%, contributing 15.6% to total revenue[24]. - Revenue from vertical industries and enterprise cloud services reached approximately RMB 271 million, reflecting a significant year-on-year increase of 140.3%[26]. - OSS business revenue was approximately RMB 248 million, showing a year-on-year growth of 88.7% due to the acceleration of national 5G construction[27]. - Traditional BSS business revenue was approximately RMB 2.065 billion, experiencing a slight decline of 2.1% year-on-year due to project delivery delays caused by the pandemic[28]. - The integration of the acquired iResearch Consulting has enhanced the company's DSaaS and intelligent decision-making capabilities, optimizing revenue structure significantly[24]. Shareholder and Equity Information - The total number of issued shares as of June 30, 2022, was 928,391,777[67]. - Dr. Tian Shuning held 120,735,141 shares, representing approximately 13.00% of the total issued shares[66]. - Skipper Investment Limited holds 213,924,952 shares, representing approximately 23.04% of the total issued shares as of June 30, 2022[72]. - The company has a significant concentration of ownership, with multiple entities holding the same number of shares[72]. - The company granted 112,000 stock options to independent non-executive directors under the 2019 stock option plan[75]. - The total number of stock awards granted as of January 1, 2022, was 15,735,449, with 5,388,180 awards that have lapsed during the reporting period[93]. Taxation and Government Subsidies - Current tax expense for the six months ended June 30, 2022, was RMB 4,314,000, a decrease of 65.6% from RMB 12,557,000 in 2021[125]. - Deferred tax expense was RMB 18,037,000, down 19.7% from RMB 22,435,000 in 2021[125]. - The effective corporate income tax rate for subsidiaries in China remained at 25% for both 2022 and 2021[125]. - Government subsidies amounted to RMB 26,581,000 in 2022, a decrease of 5.8% from RMB 28,218,000 in 2021[122]. Employee and Management Information - The total number of employees as of June 30, 2022, was 13,309, a slight decrease from 13,332 on December 31, 2021[95]. - The total remuneration for key management personnel increased to RMB 45,115,000 for the six months ended June 30, 2022, compared to RMB 20,218,000 for the same period in 2021, representing a significant increase of 122.5%[180]. - The company complies with labor laws and has established equal labor relations, ensuring employee rights[95]. - The company provides various employee benefits, including health insurance and annual bonuses[96]. Acquisitions and Investments - The acquisition of 94.23% of Shanghai iResearch Consulting Co., Ltd. was completed on January 14, 2022, for a total consideration of RMB 511,780,000, enhancing the company's capabilities in digital operations and intelligent transformation[138]. - The identifiable net assets acquired from the acquisition amounted to RMB 315,440,000, which includes intangible assets valued at RMB 162,590,000[140]. - The company incurred acquisition-related costs of RMB 3,666,500, which have been included in administrative expenses[139].
亚信科技(01675) - 2022 - 中期财报