BOCO(SH:600289)2019-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2019 was approximately ¥333.48 million, a decrease of 31.49% compared to ¥486.78 million in the same period last year[21]. - The net profit attributable to shareholders for the first half of 2019 was a loss of approximately ¥115.21 million, an improvement from a loss of ¥381.50 million in the same period last year[21]. - The net cash flow from operating activities for the first half of 2019 was a negative ¥149.41 million, compared to a negative ¥92.07 million in the same period last year[21]. - The total assets at the end of the reporting period were approximately ¥2.58 billion, a decrease of 4.83% from ¥2.71 billion at the end of the previous year[21]. - The company reported a net asset attributable to shareholders of approximately -¥885.53 million, compared to -¥770.32 million at the end of the previous year[21]. - The company's total assets at the end of the reporting period amounted to 1,680,807,929.85 yuan, with significant portions frozen due to legal issues[45]. - The company reported a decrease in tax payable from 26,808,674.54 yuan to 12,888,121.32 yuan, reflecting a 51.93% decline[44]. - The net profit of Beijing Yiyang Xintong Technology Co., Ltd. was -5,845.29 million yuan, indicating ongoing financial challenges[47]. - The company reported a significant increase in other income, totaling CNY 20,189,257.90 for the first half of 2019, compared to CNY 4,941,732.58 in the same period of 2018[101]. - The company reported a total of ¥276,035,304.00 in undistributed profits, which is a critical indicator of its profitability[123]. Operational Challenges - The company faced significant impacts on its business due to the freezing of its basic account, leading to a sharp decline in new project signings in smart city, smart transportation, and healthcare informatization sectors[27]. - The company is facing significant challenges due to multiple bank account freezes, impacting its ability to secure new projects in transportation and healthcare sectors[36]. - The company is currently facing operational challenges due to the freezing of its basic accounts, which has adversely affected its smart city, smart transportation, and medical information projects[56]. - The company has faced risks related to ongoing litigation affecting its operations, with multiple accounts frozen, impacting new contract signings[49]. - The company is facing significant operational impacts due to multiple bank account freezes and ongoing investigations, which may affect its ability to continue as a going concern[134]. Legal and Regulatory Issues - The company is under investigation by the China Securities Regulatory Commission, which poses a risk of stock suspension[49]. - The company is actively cooperating with the China Securities Regulatory Commission in an ongoing investigation related to information disclosure violations[58]. - The company has been involved in litigation with various parties, including a claim of 4,600 million that is currently in the execution phase[65]. - The company has established a dedicated team to address legal disputes arising from guarantee issues and is actively communicating with its controlling shareholder to resolve financial disputes[36]. - The controlling shareholder, Yiyang Group, is undergoing bankruptcy reorganization and has committed to resolving its financial difficulties to protect the company's interests[36]. Shareholder and Equity Information - The controlling shareholder, Yiyang Group Co., Ltd., holds 207,573,483 shares, accounting for 32.89% of the total shares, with 64,459,419 shares frozen[87]. - The total equity attributable to the parent company at the end of the first half of 2019 was CNY 631,052,069.00, compared to CNY 631,052,069.00 at the end of the first half of 2018, indicating no change year-over-year[120]. - The total equity, including minority interests, was CNY -889,313,045.00, indicating a negative equity position[120]. - The company has a lock-up period of 36 months for 64,459,419 shares held by Yiyang Group Co., Ltd.[88]. - The company has not proposed any profit distribution or capital reserve increase for the first half of 2019, maintaining a zero dividend policy[52]. Research and Development - The company is focusing on expanding its market presence in AI, big data, and cloud services to create new profit growth points[36]. - R&D expenses decreased by 13.90% to ¥129,305,693.16, primarily due to salary adjustments for R&D personnel[41]. - The company participated in the "International AIOps Challenge" and won first place among 141 teams, showcasing its innovation capabilities in AI and 5G[32]. - The company is actively involved in the development of next-generation network operation support systems for 5G, enhancing its OSS system's cloud, automation, and intelligence capabilities[31]. - The company is investing in cloud computing, next-generation network management, and AI technology to drive innovation and enhance core competitiveness[134]. Financial Management and Strategy - The company has established a dedicated team to address issues related to the audit report and is urging Yiyang Group to formulate a repayment plan to mitigate adverse impacts on its operations[56]. - The company is focusing on developing new profit growth points by leveraging new technologies and businesses, including the deployment of next-generation network operation support systems based on SDN/NFV and AI[56]. - The overall financial performance reflects a need for strategic adjustments to improve cash flow and operational metrics moving forward[111]. - The financial report indicates a need for strategic reassessment due to the significant losses reported[120]. - The company is expected to focus on improving its financial health in the upcoming quarters[120]. Employee and Workforce Management - The company has reported a significant risk of talent loss due to decreased employee morale amid financial difficulties[49]. - The company is implementing measures to ensure the stability of its workforce and improve personnel capabilities amid operational challenges[135]. - The employee stock ownership plan purchased 599,600 shares, accounting for 0.106% of the total share capital, at an average price of RMB 15.106 per share, totaling RMB 9,057,538.36[68]. Accounting and Financial Reporting - The company has not made any changes to accounting policies or estimates compared to the previous accounting period[78]. - The company approved the implementation of new financial instrument standards starting from January 1, 2019[80]. - The company has not reported any changes in the number of shares held by directors, supervisors, and senior management during the reporting period[90]. - There were no significant changes in the financial condition or operating results due to the revised financial statement format[79]. - The company has not reported any new product launches or technological advancements during this period[120].