BOCO(SH:600289)2020-08-28 16:00Financial Performance - The company's operating revenue for the first half of 2020 was ¥183.59 million, a decrease of 44.95% compared to ¥333.48 million in the same period last year[23]. - The net profit attributable to shareholders of the listed company was -¥118.21 million, slightly worse than -¥115.21 million in the previous year[23]. - The net cash flow from operating activities was -¥86.16 million, an improvement from -¥149.41 million in the same period last year[23]. - The total assets decreased by 7.49% to ¥2.23 billion from ¥2.41 billion at the end of the previous year[23]. - The net assets attributable to shareholders of the listed company decreased by 16.34% to ¥605.03 million from ¥723.24 million at the end of the previous year[23]. - The company reported a revenue of CNY 183.59 million for the first half of 2020, a decrease of 44.95% compared to the same period last year[35]. - The net loss attributable to shareholders was CNY 118.21 million, with a net loss of CNY 121.23 million after excluding non-recurring gains and losses[35]. - The company reported a significant decrease in accounts payable, with a 76.58% reduction in tax payables year-on-year[41]. - The company reported a total comprehensive loss of approximately ¥118.56 million for the first half of 2020, compared to a loss of ¥115.56 million in the same period of 2019[102]. Operational Challenges - The company faced non-operating fund occupation by the controlling shareholder amounting to ¥708.70 million during the reporting period[6]. - The company is under investigation by the China Securities Regulatory Commission, which may lead to significant legal risks[10]. - The company is experiencing operational risks due to the freezing of multiple bank accounts related to debt litigation, affecting new contract signings[10]. - The company is taking legal measures to protect its rights and is working on restoring its R&D capabilities after significant personnel losses[10]. - The company faced significant operational challenges due to the debt litigation of its controlling shareholder, resulting in multiple bank accounts being frozen[34]. - The company is actively addressing issues related to the restructuring of its controlling shareholder, with a commitment of 300 million yuan in restructuring funds already received[56]. - The company has experienced operational challenges due to delays in salary payments and the loss of key personnel, but the situation is expected to improve with the finalization of the restructuring plan[57]. - The company is focused on resolving current issues to protect the interests of shareholders and ensure business continuity[58]. Legal and Regulatory Issues - The company is currently under investigation by the China Securities Regulatory Commission, and it is cooperating fully with the investigation[65]. - The company is involved in multiple ongoing lawsuits, with a total potential liability of approximately ¥50 million related to financial loan contract disputes[62]. - A lawsuit involving a loan contract dispute with a potential liability of ¥8.5 million is currently pending[62]. - The company faces a financial loan contract dispute with a potential liability of ¥40 million, which is still under review[63]. - A lawsuit regarding a financing lease contract has a potential liability of ¥32.8 million, with the case currently in mediation[62]. - The company has a total of ¥5,055.29 million in liabilities from a contract dispute, with a 100% joint liability for repayment[63]. - There is an ongoing lawsuit with a potential liability of ¥9,700 million related to a private loan dispute, currently in the second instance[63]. - The company has been listed as a dishonest executor by the Yinchuan Intermediate People's Court due to failure to fulfill joint repayment obligations[66]. - The company has successfully been removed from the dishonest executor list as of June 20, 2020[66]. Shareholder and Capital Structure - The company has not proposed any profit distribution or capital reserve transfer to increase share capital during the reporting period[4]. - The company raised CNY 1,095.87 million from a private placement, with a subscription amount of CNY 1,100 million from Yiyang Group[68]. - The maximum number of shares issued in the private placement was adjusted to 67,608,684 shares[68]. - The company’s employee stock ownership plan involved a subscription amount of CNY 11,432,986 from Yiyang Xintong[68]. - The company completed the employee stock ownership plan by purchasing 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[69]. - The total number of ordinary shareholders as of the end of the reporting period is 31,186[80]. - The top shareholder, Yiyang Group, holds 207,573,483 shares, accounting for 32.89% of total shares, with 64,459,419 shares frozen[81]. Research and Development - The company's management expenses decreased by 25.30% to CNY 134.97 million, while sales expenses fell by 40.69% to CNY 26.41 million[35]. - Research and development expenses were CNY 99.31 million, down 23.20% year-on-year[35]. - The company obtained 5 new software copyright certificates and 11 invention patent certificates during the reporting period[34]. - The company aims to enhance its core competitiveness in OSS, cloud security, big data, and artificial intelligence despite the challenging environment[29]. - The company is a strategic partner of major telecom operators in China, focusing on the development of next-generation OSS solutions for 5G network management[30]. Financial Position - The company's cash and cash equivalents as of June 30, 2020, amount to ¥1,110,728,294.25, a decrease from ¥1,239,143,722.99 at the end of 2019[89]. - Accounts receivable decreased to ¥365,786,779.25 from ¥404,973,057.12 year-over-year[89]. - Inventory increased to ¥171,592,800.29 from ¥157,863,278.67 year-over-year[89]. - The total current assets as of June 30, 2020, are ¥1,762,077,333.46, down from ¥1,922,603,776.87 at the end of 2019[89]. - The company has a long-term equity investment valued at ¥2,328,993.61 as of June 30, 2020[89]. - The company reported a net cash outflow from investment activities of 332,244.84 RMB in the first half of 2020, compared to a net outflow of 287,584.86 RMB in the same period of 2019, indicating increased investment expenditures[108]. - The total equity attributable to the parent company at the end of the previous year was CNY 631,052,069.00[114]. - The total equity at the end of the current period was CNY 631,052,069.00, with a total accumulated loss of CNY 3,204,158,282.50[120]. Governance and Compliance - The company held two extraordinary general meetings in 2020, with all procedures and resolutions compliant with relevant laws and regulations[52]. - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance, ensuring compliance and accuracy[130]. - The company has established a governance structure including a shareholders' meeting, board of directors, and supervisory board, along with 25 subsidiaries[126]. - The company has undergone significant changes in its board of directors, with multiple resignations and elections during the reporting period[86]. Future Outlook - The company plans to focus on cost reduction strategies and improving operational efficiency in the upcoming quarters to mitigate losses[98]. - The competitive landscape is intensifying with the rapid development of the 5G market, leading to potential price wars and market share challenges[48].