FOUNDERTECH(SH:600601)2021-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥2,016,624,378.75, a decrease of 7.79% compared to ¥2,186,910,531.55 in the same period last year [21]. - The net profit attributable to shareholders of the listed company was -¥223,574,533.43, compared to -¥106,966,203.15 in the previous year, indicating a worsening performance [21]. - The net cash flow from operating activities was -¥28,066,210.80, a significant decline of 120.02% from ¥140,220,185.34 in the same period last year [21]. - The net assets attributable to shareholders of the listed company decreased by 40.12% to ¥438,406,012.41 from ¥732,096,033.00 at the end of the previous year [21]. - Total assets decreased by 1.85% to ¥8,820,448,817.01 from ¥8,986,410,598.75 at the end of the previous year [21]. - The company reported a net profit excluding non-recurring gains and losses of -¥232,114,215.01, compared to -¥132,721,043.65 in the same period last year [21]. - Basic earnings per share for the reporting period (1-6 months) is -0.1019 CNY, compared to -0.0487 CNY in the same period last year, indicating a significant loss [22]. - The weighted average return on equity decreased to -38.20%, down 32.36 percentage points from -5.84% in the previous year [22]. - The company reported a net loss attributable to shareholders of approximately ¥1.92 billion, compared to a loss of ¥1.70 billion in the previous period [156]. - The company reported a significant credit impairment loss of ¥142.45 million during the first half of 2021 [173]. Revenue and Costs - Operating revenue decreased by 7.79% to ¥2,016,624,378.75 compared to ¥2,186,910,531.55 in the same period last year [40]. - Operating costs fell by 5.34% to ¥1,653,453,138.89, reflecting the decrease in revenue [40]. - The total profit of the software industry reached CNY 49.99 billion, with a year-on-year increase of 13.6% [33]. - PCB business revenue decreased to CNY 1.464 billion, down 9.81% year-on-year, with net profit dropping 58.63% to CNY 80 million [37]. - Internet access service revenue was CNY 210 million, a decrease of 6.01% year-on-year, with a net loss of CNY 139 million, remaining stable compared to the previous year [37]. - IT system integration and solution business revenue increased to CNY 217 million, a year-on-year growth of 4.69%, with a net loss of CNY 12.3 million, a decrease in loss of CNY 1.8442 million [37]. Market and Industry Trends - The PCB industry is projected to reach a global market value of 86.325 billion USD by 2025, with an average annual growth rate of 5.8% [30]. - The number of fixed internet broadband access users in China reached 510 million, with a net increase of 26.06 million users compared to the previous year [30]. - Users with broadband access speeds of 100 Mbps and above accounted for 91.5% of total users, an increase of 1.6 percentage points year-on-year [30]. - The ICT services segment, including IDC and cloud services, is expanding to meet the needs of enterprise clients [30]. - The call center outsourcing industry is evolving into a multi-channel customer contact center, leveraging technologies like AI and big data [30]. Risks and Challenges - The company faces risks related to future operational uncertainties due to the restructuring plan approved by the Beijing First Intermediate People's Court, which may impact its production and operations [52]. - The company's net assets have declined due to performance losses, leading to an increase in the debt-to-asset ratio and tight liquidity, with some loans already overdue [52]. - The PCB industry is experiencing heightened competition, and the company is investing heavily in the PCB sector, including the new high-end intelligent PCB industrial base project in Zhuhai, which is now entering production [52]. - The company is sensitive to fluctuations in the USD/RMB exchange rate, which can directly affect the cost of imported raw materials and the selling price of exported products, impacting net profit [55]. - The company is exposed to risks from raw material supply and price volatility, which can affect the stability and profitability of its PCB production [55]. - The IT industry is undergoing rapid technological changes, particularly with the emergence of new technologies such as 5G and cloud computing, posing challenges for the company's market expansion and technology reserves [55]. - The company is facing a talent shortage in high-end technology fields due to the rapid development of the software industry and increasing demand for skilled personnel [55]. - The company is experiencing significant market pressure due to intensified competition in the fixed broadband market and the impact of national policies promoting bundled packages [52]. Environmental Compliance - The company reported ammonia nitrogen levels at 0.62 mg/L, totaling 34.87 tons per year [73]. - Total nitrogen levels were recorded at 13.07 mg/L, amounting to 69.74 tons per year [73]. - Chemical oxygen demand was measured at 51 mg/L, resulting in 585 tons per year [95]. - The company has implemented a stable wastewater treatment system using physical-chemical methods and anaerobic-aerobic processes [96]. - The company adheres to ISO 14001 standards and has established an internal environmental monitoring center to ensure compliance with pollution discharge standards [96]. - The company has obtained environmental impact assessment approvals and pollutant discharge permits for its facilities in Zhuhai and Chongqing [99]. - The company has conducted emergency response drills for environmental incidents at all production bases [100]. Corporate Governance and Shareholder Information - The company has not proposed any profit distribution plan or capital reserve transfer to increase share capital for this reporting period [6]. - There were no non-operating fund occupations by controlling shareholders and their related parties [7]. - The company has detailed potential risks in the "Management Discussion and Analysis" section of the report [7]. - The total number of common shareholders at the end of the reporting period is 164,264 [135]. - The largest shareholder, Peking University Founder Group, holds 276,333,368 shares, representing 12.59% of the total shares [135]. - The company has not experienced any changes in its controlling shareholder or actual controller during the reporting period [143]. - The company will continue to monitor the progress of the change in controlling shareholder and fulfill its information disclosure obligations [143]. Financial Position and Liquidity - As of June 30, 2021, total current assets amounted to approximately ¥4.17 billion, a decrease of 1.98% from ¥4.25 billion as of December 31, 2020 [151]. - Cash and cash equivalents decreased to ¥668.15 million from ¥953.37 million, representing a decline of 30.0% [151]. - Accounts receivable decreased to ¥1.05 billion from ¥1.16 billion, a reduction of 9.45% [151]. - Inventory increased to ¥1.72 billion from ¥1.35 billion, reflecting a growth of 27.8% [151]. - Total liabilities increased to approximately ¥8.37 billion, up from ¥8.24 billion, indicating a rise of 1.13% [156]. - The company's total equity attributable to shareholders decreased to ¥438.41 million from ¥732.10 million, a decline of 40.1% [156]. - The non-current assets totaled approximately ¥4.65 billion, down from ¥4.74 billion, a decrease of 1.77% [154]. - Short-term borrowings increased significantly to ¥1.91 billion from ¥1.18 billion, an increase of 61.0% [154]. - The company reported a total comprehensive loss for the first half of 2021 was approximately ¥294.55 million, compared to a loss of ¥107.48 million in the same period of 2020, marking an increase of about 174.5% [169]. Strategic Initiatives - The company is focusing on digital transformation and integrating new technologies such as IoT, big data, and AI to enhance operational efficiency [34]. - The company is committed to continuous innovation in its product offerings, particularly in public security and transportation solutions [37]. - The company plans to optimize and adjust its business segments, increasing investment in the profitable PCB business while scaling down loss-making operations [113]. - The company has ongoing significant litigation involving its wholly-owned subsidiary, with a total claim amounting to approximately RMB 386.07 million for overdue payments [114]. - The company engaged in related party transactions totaling 414.68 million RMB for purchasing computers and related products, and 316.15 million RMB for selling computer-related products and services during the first half of 2021 [118].