STS(SH:603322)2023-08-27 16:00Financial Performance - The basic earnings per share for the first half of 2023 is -0.24 yuan, a decrease of 209.09% compared to 0.22 yuan in the same period last year[23]. - The diluted earnings per share for the first half of 2023 is also -0.24 yuan, reflecting the same percentage decrease of 209.09% compared to the previous year[23]. - The weighted average return on net assets is -18.35%, a decrease of 34.48 percentage points from 16.13% in the same period last year[23]. - The net profit attributable to shareholders decreased significantly due to a large provision for bad debts resulting from accounts receivable not meeting expected collection progress[23]. - The net profit attributable to shareholders was -38,165,699.18 RMB, a decrease of 211.21% year-on-year[25]. - The net loss attributable to shareholders was CNY -149,758,452.96, worsening from CNY -111,599,261.85 in the previous period[112]. - The net profit for the first half of 2023 was -26,206,175.66 RMB, a significant decrease compared to the net profit of 49,911,881.20 RMB in the same period of 2022[123]. - The company reported a significant increase in tax expenses, totaling ¥3,120,784.62, compared to ¥1,600,830.10 in the previous year[119]. - The company experienced a substantial decline in investment income, reporting a loss of ¥695,745.43 compared to a profit of ¥42,625,439.93 in the same period last year[119]. Revenue and Growth - The company achieved operating revenue of 800,150,687.26 RMB, representing an 18.89% increase compared to the same period last year[25]. - The company reported a significant increase in revenue, achieving a total of RMB 1.5 billion for the first half of 2023, representing a year-over-year growth of 25%[73]. - The company has set a revenue guidance for the second half of 2023, projecting an increase of 15% compared to the first half, aiming for RMB 1.725 billion[74]. - New product launches are expected to contribute an additional RMB 300 million in revenue by the end of 2023, driven by innovative features and market demand[74]. - The company successfully expanded its communication technology service projects across 13 provinces, enhancing its revenue base[36]. Cash Flow and Liquidity - The net cash flow from operating activities was -114,165,253.25 RMB, compared to -30,933,675.02 RMB in the previous year[25]. - The net cash flow from operating activities was -¥30,933,675.02, an improvement from -¥114,165,253.25 in the previous year[41]. - Cash flow from operating activities showed a net outflow of -30,933,675.02 RMB, compared to a net outflow of -114,165,253.25 RMB in the same period last year, indicating an improvement[127]. - Cash and cash equivalents at the end of the period were 132,717,127.87 RMB, up from 71,305,407.51 RMB at the end of the first half of 2022[128]. - The ending cash and cash equivalents balance for the first half of 2023 was RMB 116,507,379, a significant increase from RMB 47,110,739 at the end of the first half of 2022[130]. Assets and Liabilities - The total assets at the end of the reporting period were 2,088,494,249.17 RMB, down 3.17% from the previous year[25]. - The company's total liabilities reached CNY 1,829,757,648.73, compared to CNY 1,838,910,399.32 at the end of 2022[112]. - The total current assets decreased to ¥1,533,601,092.61 from ¥1,595,987,733.88, a decline of about 3.9%[110]. - The company's total liabilities at the end of the reporting period were CNY 229,886,297.93, compared to CNY 188,958,379.74 at the end of the previous period, reflecting an increase of 21.7%[141]. Investments and Acquisitions - The company plans to raise funds through a private placement to support the construction of the Ninghuai Green Digital Economy Computing Power Center project, aiming to enhance its service capabilities in 5G, IoT, and cloud computing[38]. - The company completed a strategic acquisition of a local tech firm for RMB 500 million, enhancing its capabilities in software development[74]. - The company transferred 50.01% equity of its subsidiary Sangrui Electronics to a related party for ¥27,132,000, aiming to reduce operational burdens and risks[39]. Risks and Compliance - The company faces customer concentration risk, primarily relying on China Mobile, which could significantly impact performance if their market position deteriorates[59]. - The company has a high proportion of accounts receivable, which may lead to increased bad debt if major clients default, impacting financial performance[60]. - The company has not disclosed any significant risks that could affect the authenticity and completeness of the semi-annual report[7]. - The company has not reported any violations regarding guarantees during the reporting period[80]. Shareholder and Governance - The company plans to distribute profits and transfer capital reserves, but specific details are not provided in the document[65]. - The controlling shareholder, Liang Jianhua, committed not to reduce his shareholding in the company from May 31, 2023, to May 30, 2024[76]. - The total number of common shareholders as of the end of the reporting period is 32,010[99]. - The largest shareholder, Liang Jianhua, holds 42,285,000 shares, representing 26.81% of the total shares[102]. Research and Development - Research and development investments have increased by 20% year-over-year, totaling RMB 200 million, focusing on next-generation communication technologies[74]. - The company completed the overall R&D and productization of the 5G small base station gateway system, with successful deployment testing conducted in Nanjing[38]. Accounting and Financial Reporting - The company’s financial statements are prepared based on the assumption of going concern, indicating a history of profitable operations and financial resources to support ongoing activities[152]. - The company’s accounting policies include revenue recognition, inventory measurement, and R&D expense capitalization[153]. - The company recognizes impairment losses on non-current assets held for sale, with specific recovery conditions for previously recognized losses outlined[189].