BOCO(SH:600289)2022-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2022 was approximately ¥133.79 million, representing a 16.09% increase compared to the same period last year[20]. - The net profit attributable to shareholders of the listed company was approximately -¥97.01 million, showing an improvement from -¥138.56 million in the previous year[20]. - The basic earnings per share for the first half of 2022 was -¥0.1537, an improvement from -¥0.2196 in the same period last year[22]. - The weighted average return on net assets was -5.87%, an improvement from -8.39% in the previous year[22]. - The company reported a net loss of CNY 97.10 million for the first half of 2022, with a net cash flow from operating activities of -CNY 22.63 million[76]. - The company reported a net loss of CNY 689,157,579.57 for the first half of 2022, compared to a profit in the same period last year[132]. - The total comprehensive income for the current period was a loss of CNY 97,010,736.82, reflecting a significant decline compared to the previous period[123]. Cash Flow and Assets - The net cash flow from operating activities was approximately -¥22.63 million, indicating a significant reduction in cash outflow compared to -¥168.13 million in the previous year[20]. - The net cash flow from operating activities increased by ¥145.50 million compared to the previous year, primarily due to higher cash receipts from sales and other operating activities[41]. - The company reported a cash and cash equivalents balance of 559,271,382.12 RMB at the end of June 2022, down from 610,897,955.06 RMB at the end of June 2021[115]. - Total assets decreased from CNY 2,424,324,647.55 to CNY 2,217,606,711.96, a decline of approximately 8.5%[99]. - Current assets decreased from CNY 1,924,045,888.46 to CNY 1,720,693,569.76, a reduction of about 10.6%[99]. - The company reported a total of financial assets measured at fair value amounting to approximately ¥171.25 million, including other equity instrument investments of ¥140.45 million and other non-current financial assets of ¥30.79 million[50]. Operational Efficiency - The company has improved its operational management, resulting in enhanced efficiency per employee despite ongoing financial challenges[76]. - Operating costs decreased by 6.19% year-on-year, amounting to approximately ¥73.36 million, mainly due to a reduction in service costs[41]. - Sales expenses dropped by 25.98% year-on-year to approximately ¥18.88 million, attributed to a decrease in the number of sales personnel[41]. - Management expenses fell by 8.62% year-on-year to approximately ¥68.70 million, also due to a reduction in management personnel[41]. - Research and development expenses decreased by 6.17% year-on-year to approximately ¥59.12 million, reflecting a reduction in R&D personnel[41]. Legal and Compliance Issues - There are ongoing legal issues related to guarantees provided by the controlling shareholder, with a total involved amount of approximately ¥2.64 billion, of which ¥2.12 billion is not the company's responsibility[6]. - The company is involved in ongoing litigation with a total principal amount of CNY 1,455.45 million across several unresolved cases[77]. - A total of 263 individual investors have filed civil lawsuits against the company for securities false statement liability, with a combined claim amount of CNY 186.66 million[77]. - The company has been designated as a dishonest executor by the Xiamen Intermediate People's Court due to unresolved financing disputes with several entities, including Shenzhen Qianhai Hairun International M&A Fund Management Co., Ltd.[83]. Strategic Initiatives - The company aims to enhance its core products through lightweight modifications, focusing on industrial internet solutions and expanding into non-telecom sectors[29]. - The company is actively pursuing strategic partnerships to accelerate the introduction of new products into non-telecom industries[35]. - The company is actively expanding into non-telecom sectors, including energy grids, government education, and industrial internet, with successful projects in urban rail transit[36]. - The company has established a digital operation and maintenance solution based on AI and 5G technologies, supporting network smart operations[31]. Shareholder and Governance - The company has not proposed any profit distribution or capital reserve transfer plans for the half-year period, with no dividends or stock bonuses planned[59]. - The company has committed to avoiding any business activities that may compete with its listed company and its subsidiaries, ensuring the protection of shareholder rights[67]. - The total number of ordinary shareholders as of the end of the reporting period is 23,380[89]. - The largest shareholder, Yiyang Group Co., Ltd., holds 207,573,483 shares, accounting for 32.89% of the total shares, with 64,459,419 shares frozen[91]. Financial Guarantees and Liabilities - The company reported a total of 48,783.79 million RMB in non-compliant guarantees, which accounts for 18.94% of the latest audited net assets[72]. - The largest non-compliant guarantee amounting to 32,000.00 million RMB represents 18.94% of the latest audited net assets and is related to the controlling shareholder, Yiyang Group[72]. - The company has taken measures to resolve the non-compliant guarantees through a combination of cash and debt-to-equity swaps[72]. - The company has a total of 4,998 million in unresolved claims related to loan agreements, highlighting the scale of its financial challenges[81]. Accounting and Financial Reporting - The financial statements are prepared based on the assumption of going concern, with no significant doubts about the company's ability to continue operations[142]. - The company follows specific accounting policies for asset depreciation, intangible asset amortization, and revenue recognition[143]. - The company recognizes control transfer on the acquisition date when the enterprise merger contract is approved by internal authorities and necessary approvals are obtained[150]. - The company includes all subsidiaries in the consolidated financial statements, reflecting the overall financial position and performance of the group[152].