STS(SH:603322)2019-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2019 was ¥565,484,049.12, representing a 2.56% increase compared to ¥551,354,180.23 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was -¥48,917,741.64, a significant decrease of 1,913.62% from ¥2,697,248.34 in the previous year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥55,489,138.77, down 6,367.88% from ¥885,293.43 in the same period last year[20]. - The net cash flow from operating activities was -¥262,641,088.48, compared to -¥171,965,369.88 in the previous year, indicating a worsening cash flow situation[20]. - The basic earnings per share for the reporting period is -0.41 CNY, a decrease of 1,466.67% compared to the same period last year[21]. - The weighted average return on net assets decreased by 11.17 percentage points to -10.62%[21]. - The company reported a significant increase in intangible assets by 50.84% to CNY 76,911,617.88, mainly due to the inclusion of Haopu Environmental in the consolidated scope[42]. - The company reported a net loss of 51,905,408.38 RMB for the first half of 2019, compared to a net loss of 7,232,693.82 RMB in the same period last year, indicating a significant increase in losses[105]. - The comprehensive income for the period is RMB -51,905,408.38, reflecting a loss in overall financial performance[128]. Assets and Liabilities - Total assets decreased by 3.34%, amounting to ¥2,137,949,764.99 compared to ¥2,211,725,174.08 at the end of the previous year[20]. - The net assets attributable to shareholders at the end of the reporting period were ¥428,624,395.51, a decrease of 12.29% from ¥488,672,137.15 at the end of the previous year[20]. - The company's cash and cash equivalents decreased by 58.58% to approximately 189.90 million CNY due to payments of due liabilities[28]. - The company's total liabilities decreased to CNY 1,491,517,075.48 from CNY 1,538,135,073.13, a reduction of about 3.03%[93]. - The company's total owner's equity at the end of the reporting period is RMB 405,568,533.55, showing an increase from the previous period[130]. Revenue Streams and Business Operations - The company is expanding its business into IoT solutions, smart hardware manufacturing, and new energy services, diversifying its revenue streams[25]. - The company experienced a significant loss due to insufficient client budgets and investment releases in the communication technology service industry, leading to reduced revenue in regions like Guangdong, Guangxi, and Sichuan[21]. - The company successfully won bids for communication network construction projects in 15 provinces and maintenance projects in 7 provinces, ranking among the top bidders[31]. - The company operates in the communication technology service industry, focusing on manufacturing communication terminal equipment and software development[139]. - The company has a diverse range of services, including telecommunications, engineering, and technology solutions, contributing to its revenue streams[144]. Research and Development - R&D expenses increased by 23.84% to CNY 34.97 million, driven by the consolidation of three subsidiaries[35]. - The company is committed to adjusting its R&D direction in line with new information technology trends to ensure market relevance and competitiveness[52]. - The company maintains a focus on research and development, particularly in battery manufacturing and renewable energy solutions[144]. Risks and Challenges - The company has detailed potential risks in the report, which investors should review in the section discussing operational conditions[6]. - The company faces risks related to customer concentration, particularly dependence on China Mobile, which could significantly impact operational performance if their market position deteriorates[51]. - High accounts receivable ratios pose a risk of bad debts, with potential losses if major clients default, prompting the company to enhance dynamic management of receivables[51]. - Risks associated with mergers and acquisitions include integration challenges and the potential failure to achieve expected synergies, which the company aims to address through comprehensive management strategies[53]. Shareholder and Capital Management - The company did not propose any profit distribution or capital reserve transfer to increase share capital during the reporting period[4]. - The company has committed to repurchase shares if the stock price falls below the net asset value per share within three years of listing[57]. - The total amount used for share repurchase in a single fiscal year shall not exceed 30% of the audited net profit attributable to the parent company from the previous fiscal year[57]. - The company will ensure that the shareholding structure remains compliant with listing conditions after implementing stock price stabilization measures[57]. - The company has established labor contracts with all employees and ensures timely payment of wages and social insurance contributions[59]. Financial Reporting and Compliance - The financial statements are prepared based on the principle of going concern, indicating sustained profitability and financial resources[146]. - The company adheres to the accounting policies and estimates as per the relevant accounting standards, ensuring accurate financial reporting[147]. - The company has incorporated all controlled subsidiaries into its consolidated financial statements, reflecting a comprehensive view of its financial health[154]. - The company must disclose the accounting treatment for acquiring control of an investee through multiple transactions in the consolidated financial statements[155]. Future Outlook - The company plans to continue expanding its market presence and investing in new product development[116]. - The company has set a performance guidance for the next quarter, aiming for a revenue growth of approximately 10%[116].