ECC(SH:600850)2021-08-23 16:00Financial Performance - The company's operating revenue for the first half of 2021 was approximately ¥4.19 billion, representing a 32.24% increase compared to ¥3.17 billion in the same period last year[21]. - The net profit attributable to shareholders for the first half of 2021 was approximately ¥166 million, an increase of 8.59% from ¥152 million in the previous year[21]. - The basic earnings per share for the first half of 2021 were ¥0.389, an increase of 8.59% from ¥0.358 in the same period last year[23]. - The diluted earnings per share for the first half of 2021 were also ¥0.389, maintaining the same growth rate of 8.59%[26]. - The weighted average return on net assets for the first half of 2021 was 5.92%, slightly up from 5.80% in the previous year[26]. - The operating cost increased by 34.08% to approximately ¥3.56 billion from ¥2.66 billion in the previous year[41]. - Research and development expenses rose by 16.53% to approximately ¥154.09 million, up from ¥132.23 million in the prior year[41]. - The company reported a net cash flow from operating activities of approximately -¥754.08 million, compared to -¥531.53 million in the previous year[41]. - The company's total revenue for the first half of 2021 reached ¥4,193,278,281.88, a 32.2% increase from ¥3,171,035,108.75 in the same period of 2020[108]. - Operating costs for the first half of 2021 were ¥4,021,264,526.65, up 31.6% from ¥3,053,509,539.50 in the previous year[108]. - Net profit for the first half of 2021 was ¥163,915,335.59, compared to ¥146,070,145.95 in the first half of 2020, reflecting an increase of 12.2%[111]. Assets and Liabilities - The total assets at the end of the reporting period were approximately ¥7.89 billion, a decrease of 5.61% from ¥8.36 billion at the end of the previous year[21]. - The net assets attributable to shareholders at the end of the reporting period were approximately ¥2.78 billion, reflecting a 2.09% increase from ¥2.72 billion at the end of the previous year[21]. - The cash balance at the end of the period was ¥1,562,455,089.86, a decrease of 38.17% compared to the previous year[46]. - The long-term equity investment balance decreased to ¥0, a 100% reduction due to the sale of shares in Shanghai Qiming Software Co., Ltd.[46]. - Total liabilities decreased to ¥4,941,059,928.79 from ¥5,457,391,186.27, a reduction of about 9%[101]. - The company's total equity increased to ¥2,947,002,946.18 from ¥2,899,503,974.92, reflecting a growth of approximately 2%[101]. - The total liabilities at the end of the period were 2,608,628,624.39 RMB, indicating a stable financial position[140]. Investments and Subsidiaries - The company initiated a major asset restructuring project to acquire 100% equity of Shanghai Baifei Electronic Technology Co., Ltd., enhancing its capability to provide integrated digital solutions[40]. - The company successfully registered a subsidiary in Germany, establishing a foothold in the European market for international business expansion[39]. - The company established a wholly-owned subsidiary in Germany with an investment of EUR 180,000 (approximately RMB 138.79 million) to expand its business in Europe[51]. - The company increased its investment in its wholly-owned subsidiary in Hong Kong by USD 700,000 (approximately RMB 452.70 million), raising its registered capital from USD 500,000 to USD 1.2 million[51]. - The company has a total of 9 subsidiaries, with 100% ownership in Shanghai Huaxun Network System Co., Ltd. and 40% in Shanghai Huaxun Network Storage System Co., Ltd.[155]. Risk Management - There are no foreseeable major risks identified in the company's operations during this reporting period[7]. - The company faces risks from international environment changes, macroeconomic policies, and industry policy shifts that could significantly impact its operating performance[56]. - The company has not proposed any profit distribution or capital reserve transfer plan for the first half of 2021[65]. Corporate Governance and Compliance - The company has maintained a good integrity status with no records of dishonesty during the reporting period[74]. - The company has not disclosed any non-operational fund occupation by controlling shareholders or related parties during the reporting period[70]. - The company has not engaged in any significant guarantees during the reporting period[70]. - The company reported no significant litigation or arbitration matters during the reporting period[73]. - The company has not reported any changes in the status of its annual report's non-standard audit opinions[73]. Strategic Initiatives - The company is investing in a new data center in Songjiang District, aiming for a scale of 3,024 racks, enhancing its data center operations[33]. - The company plans to enhance its core capabilities and optimize its business structure to adapt to new market dynamics and maintain stable growth[59]. - The company is actively working on its second stock option incentive plan to motivate employees and align their interests with the company's growth[66]. - The company plans to focus on expanding its market presence and enhancing product development strategies in the upcoming quarters[136]. - The company aims to enhance its strategic initiatives through potential mergers and acquisitions in the upcoming quarters[143]. Accounting Policies and Financial Reporting - The financial statements were approved by the board of directors on August 22, 2021[154]. - The company has implemented specific accounting policies and estimates based on its operational characteristics, including methods for impairment of financial assets and revenue recognition[159]. - The group applies accounting treatment for business combinations under common control and non-common control[166]. - The company recognizes financial liabilities when the current obligations are discharged, including when new financial liabilities replace original ones with substantially different terms[179]. - The company employs fair value measurement for financial assets and liabilities, using market quotes when available, and valuation techniques when not[181].