BEKEN(SH:603068)2022-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2022 was ¥371,194,101.29, a decrease of 28.80% compared to ¥521,324,829.28 in the same period last year[18]. - The net profit attributable to shareholders was -¥23,280,325.34, representing a decline of 170.67% from ¥32,943,671.98 in the previous year[18]. - The net cash flow from operating activities decreased by ¥213,988,680.06, a drop of 340.87% compared to ¥88,840,246.90 in the same period last year[18]. - Basic earnings per share were -¥0.15, down 168.18% from ¥0.22 in the same period last year[19]. - The weighted average return on equity decreased by 2.8 percentage points to -1.16% from 1.64% in the previous year[19]. - The decline in revenue was attributed to pandemic control measures affecting business expansion and logistics efficiency, along with a slowdown in downstream market demand[20]. - Operating costs also declined by 29.05%, amounting to ¥277.06 million, down from ¥390.50 million[40]. - The company reported a significant increase in financial expenses, with a net financial cost of CNY -23,894,951.97 in the first half of 2022, compared to CNY -4,457,828.08 in the same period of 2021[116]. - The company reported a total comprehensive income of CNY -10,128,432.11 for the first half of 2022, indicating a loss compared to the previous period[132]. Research and Development - The company continued to invest in R&D for new products, leading to increased R&D expenses despite the decline in revenue and profit[20]. - R&D expenses increased by 41.82% to ¥122.79 million, reflecting the company's commitment to product innovation and technology upgrades[34]. - The company achieved Wi-Fi 6 certification for its IoT chip, becoming the first in the world to do so, and maintained a leading position in the Wi-Fi MCU sector[33]. - The company has launched automotive-grade Bluetooth and Wi-Fi 6 chips, as well as high-precision satellite navigation chips, indicating a strategic shift towards automotive applications[26]. - The company has a workforce of 329 employees, with 88.45% being R&D personnel, emphasizing its focus on innovation[27]. Market Position and Strategy - The company has become a leading chip design firm in China, recognized as a "key integrated circuit design enterprise" by multiple government agencies[26]. - The company has a market share of 1st place in the national standard ETC chip market and maintains a leading position in the smart home Wi-Fi MCU chip shipments[26]. - The company aims to continuously enhance its market share and maintain rapid revenue growth by leveraging its competitive advantages and business layout[26]. - The company is considering strategic acquisitions to bolster its technology portfolio, with a budget of $100 million allocated for potential deals[75]. - Market expansion plans include entering two new international markets by Q3 2022, which are projected to increase overall market share by 5%[73]. Financial Position - The company's total assets increased by 2.12% to ¥2,382,102,569.88 from ¥2,332,606,162.08 at the end of the previous year[18]. - The net assets attributable to shareholders decreased by 1.94% to ¥1,987,072,401.42 from ¥2,026,440,778.09 at the end of the previous year[18]. - The company's total liabilities rose to CNY 394,378,074.45, compared to CNY 306,165,383.99, marking an increase of approximately 28.8%[110]. - The company's equity attributable to shareholders decreased to CNY 1,987,072,401.42 from CNY 2,026,440,778.09, a decline of approximately 1.9%[110]. - The total equity attributable to the parent company at the end of the reporting period is CNY 1,987,724,495.43, compared to CNY 1,988,391,374.13 at the end of the previous year, showing a slight decrease[129]. Cash Flow and Financing - The net cash flow from financing activities was 66,875,480.09 RMB, with cash inflow from borrowings amounting to 130,353,000.00 RMB[122]. - The company's short-term borrowings rose by 110.53% to ¥134.23 million, aimed at mitigating foreign exchange risks[41]. - The total cash and cash equivalents at the end of the period stood at 1,210,232,541.46 RMB, compared to 1,098,427,513.62 RMB at the end of the first half of 2021[122]. - The company plans to implement stock repurchase measures if the stock price falls below the net asset value per share for 20 consecutive trading days, with a total repurchase fund not less than 10% of the previous year's audited net profit[70]. Corporate Governance and Compliance - The company has established a comprehensive internal control system to ensure effective implementation and quality assurance[36]. - The company will ensure that any violations of commitments will lead to direct deductions from dividends or other payments to the responsible parties[63]. - The company has made commitments to protect the legitimate rights and interests of small investors in the capital market[68]. - The company has not faced any major litigation or arbitration matters that were not disclosed in temporary announcements[86]. - The company reported no violations or penalties involving its directors, supervisors, or senior management during the reporting period[87]. Shareholder Information - The company reported a total share count of 151,279,966, with 69.98% being unrestricted circulating shares[93]. - Beken Corporation holds 30,340,103 shares, representing 20.06% of the total shares[100]. - The company has not proposed any profit distribution or capital reserve transfer plans for the half-year period[54]. - The company has implemented a stock option and restricted stock incentive plan for 38 key personnel, aiming to align their interests with those of shareholders[139]. Legal Matters - The company is involved in a significant patent infringement lawsuit against Li Tong Technology Co., Ltd. and Shanghai Kaihuang Electronics Technology Co., Ltd., claiming damages of RMB 98,113,882[85]. - The company has withdrawn its lawsuit in a related case and received a civil ruling from the Shanghai Intellectual Property Court[85]. Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[135]. - The company provided guidance for the next quarter, expecting revenue to be between $800 million and $900 million, which would represent a growth of 10% to 20% compared to the same period last year[74].