JSZY(SH:600770)2021-08-19 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥205,499,541.19, a decrease of 6.36% compared to ¥219,465,982.91 in the same period last year[19]. - The net profit attributable to shareholders for the first half of 2021 was ¥40,656,743.20, down 80.43% from ¥207,759,613.85 in the previous year[19]. - The net cash flow from operating activities was ¥12,692,600.80, a decline of 62.55% compared to ¥33,889,067.17 in the same period last year[19]. - The basic earnings per share for the first half of 2021 was ¥0.03, a decrease of 81.25% from ¥0.16 in the same period last year[20]. - The weighted average return on net assets was 1.10%, down 4.54 percentage points from 5.64% in the previous year[20]. - The company reported a net profit after deducting non-recurring gains and losses of -¥15,087,195.34, compared to ¥24,825,399.55 in the same period last year, representing a decrease of 160.77%[19]. Assets and Liabilities - The company's net assets attributable to shareholders at the end of the reporting period were ¥3,693,983,308.89, a decrease of 0.37% from ¥3,707,785,552.53 at the end of the previous year[19]. - Total assets at the end of the reporting period were ¥6,012,809,215.81, down 0.77% from ¥6,059,686,717.47 at the end of the previous year[19]. - The company's total liabilities were CNY 962,599,793.49, slightly down from CNY 982,985,210.57, showing a decrease of about 2.93%[119]. - The total equity attributable to shareholders was CNY 3,693,983,308.89, a slight decrease from CNY 3,707,785,552.53, reflecting a decline of approximately 0.37%[119]. Investment and Growth Strategies - The company plans to focus on value investments in the overseas health and integrated circuit industries, which have shown significant fluctuations in fair value during the reporting period[20]. - The AI business is identified as a new growth point, leveraging advanced image recognition algorithms for various applications[32]. - The company aims to narrow the gap with global leaders in the hearing aid industry by improving technology, products, and market services[31]. - The company has developed a SOC platform with independent intellectual property rights, focusing on ultra-low power and mixed-signal SOC chip design, enhancing its competitive edge[47]. Research and Development - Research and development expenses increased by 42.77% to ¥8.40 million, up from ¥5.88 million in the previous year[66]. - Nanjing Tianyue has achieved significant advancements in digital hearing aid chip technology, with three invention patents and eleven integrated circuit layouts by the end of the reporting period[48]. - The company has won multiple awards for R&D investment and aims to stabilize product sales and improve gross margins by adjusting its sales structure and optimizing the supply chain[60]. Market and Competition - The overall market for commercial encryption chips is becoming increasingly competitive, with larger firms dominating the landscape[28]. - The company continues to focus on expanding its market share in the digital hearing aid sector, targeting both domestic and international markets[31]. - The company has established a leading position in the information technology, education, and commercial application sectors, with an annual manufacturing capacity of hundreds of millions of various types of cards[51]. Financial Management and Risks - The company plans to enhance its risk management processes to mitigate uncertainties from macroeconomic and industry policy changes[83]. - The company will focus on improving foreign exchange management to mitigate risks from currency fluctuations[84]. - The company reported a significant increase in financial expenses, with interest expenses at CNY 5,313,100.12 compared to CNY 12,709,496.91 in the previous year[130]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 66,419[110]. - The largest shareholder, Nantong Zongyi Investment Co., Ltd., holds 333,955,709 shares, accounting for 25.69% of the total shares[112]. - There were no changes in the total number of shares or the capital structure during the reporting period[108]. Environmental and Social Responsibility - The company has been actively promoting environmental protection initiatives, including the establishment of a photovoltaic power station since 2015[95]. - The company’s overseas solar power plants benefit from stable subsidy policies, with a long-term investment return rate that meets the expectations of local European fund companies and energy investors[41]. Corporate Governance - The company held its 2020 annual general meeting on June 25, 2021, where all proposed resolutions were approved[88]. - There were no significant lawsuits or arbitration matters reported during the reporting period[98]. - The company did not implement any employee stock ownership plans or other incentive measures during the reporting period[93].