ISS(SH:600756)2021-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2021 was approximately RMB 508.21 million, representing a 15.44% increase compared to RMB 440.24 million in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2021 was a loss of approximately RMB 49.47 million, which is a 45.10% improvement from a loss of RMB 90.11 million in the previous year[18]. - The basic earnings per share for the first half of 2021 improved to -0.15 RMB, a 44.96% increase from -0.28 RMB in the same period last year[18]. - The company reported a net cash flow from operating activities of approximately -154.49 million RMB, which is a 21.42% improvement from -196.61 million RMB in the previous year[18]. - The total assets at the end of the reporting period were approximately RMB 3.81 billion, a decrease of 1.09% from RMB 3.85 billion at the end of the previous year[18]. - Operating costs increased by 15.70%, reaching ¥271,888,141.93, up from ¥234,993,105.77 in the previous year[36]. - The company's net profit for the first half of 2021 was not explicitly stated, but the unallocated profit decreased to CNY 154,373,794.31 from CNY 199,298,988.58 in the previous year, indicating a decline of 22.5%[89]. - The total comprehensive income for the first half of 2021 was a loss of CNY 49,419,136.97, compared to a loss of CNY 90,079,980.14 in the first half of 2020, showing a significant improvement[93]. Strategic Focus and Market Position - The company maintained its strategic focus on smart government solutions and services, reinforcing its position in the electronic government and tobacco industries[22]. - The company continues to focus on the digital transformation of government services, moving towards intelligent governance as part of its strategic support for national governance modernization[22]. - The company has become a leading provider of smart government solutions and services in China, focusing on local e-government business and supporting the "streamline administration and delegate power" initiative across 29 provinces and over 800 districts[25]. - The company holds the largest market share in China's integrated e-government service platform solutions, according to IDC's 2020 report[25]. - The company is actively involved in the digital transformation of the tobacco industry, implementing a strategy that emphasizes data-driven decision-making and security[25]. - The company is focused on expanding its market share in the fast-moving consumer goods sector, particularly in the tobacco industry, by enhancing its information technology architecture[34]. Research and Development - Research and development expenses decreased by 5.27% to ¥114,279,316.50, compared to ¥120,632,305.39 in the prior year[36]. - The company's research and development expenses for the first half of 2021 were CNY 105,342,329.44, a decrease of 8.5% from CNY 115,692,572.34 in the same period of 2020[95]. Cash Flow and Investments - The company reported a significant improvement in cash flow from operating activities, with a reduction in outflow by 21.42% to -¥154,489,406.70 from -¥196,605,684.43[36]. - Net cash flow from investment activities surged by 89.86% year-on-year, mainly due to the reduction and dividends from the associated company[37]. - Cash inflow from investment activities was 257,768,600.12 RMB, up from 216,155,694.18 RMB in the previous year, which is an increase of approximately 19.3%[101]. Shareholder Information - The company did not propose any profit distribution or capital reserve transfer to shareholders for the mid-year report[5]. - The company had a total of 65,867 ordinary shareholders by the end of the reporting period, reflecting a stable shareholder base[72]. - The company did not experience any significant changes in its share capital structure during the reporting period[71]. Risk Management and Compliance - There were no significant risks identified that could adversely affect the company's future development strategy and operational goals during the reporting period[7]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[58]. - There are no significant lawsuits or arbitration matters reported during the reporting period[59]. - The company has not reported any changes in major shareholders or strategic investors during the reporting period[76]. Environmental and Social Responsibility - The company emphasizes its commitment to environmental protection, stating that its operations do not involve pollution[53]. Accounting Policies and Financial Reporting - The company’s financial statements are prepared based on the continuous operation principle[121]. - The company adheres to accounting standards, ensuring that financial statements accurately reflect its financial position and performance[125]. - The company recognizes financial assets based on specific criteria, classifying them as either measured at amortized cost or fair value[138]. - The company measures expected credit losses for receivables and contract assets based on historical credit loss experience and future economic forecasts[147]. - The company recognizes contract liabilities for received or receivable customer consideration that obligates the company to transfer goods or services[169]. Future Outlook - The company did not provide specific future guidance or outlook in the current earnings call[110].