EmbedWay(SH:603496)2021-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2021 reached ¥336,025,481.37, representing a 98.29% increase compared to ¥169,463,176.15 in the same period last year [30]. - The net profit attributable to shareholders was ¥15,572,691.32, a significant recovery from a loss of ¥20,354,697.17 in the previous year [30]. - The net cash flow from operating activities was ¥36,167,725.81, compared to a negative cash flow of ¥29,487,864.31 in the same period last year [30]. - The company's total assets increased by 5.08% to ¥1,227,846,965.36 from ¥1,168,528,095.24 at the end of the previous year [30]. - The net assets attributable to shareholders rose to ¥831,101,835.90, reflecting a 1.95% increase from ¥815,167,930.73 at the end of the previous year [30]. - Basic earnings per share improved to ¥0.0783, compared to a loss of ¥0.1018 per share in the same period last year [30]. - The weighted average return on net assets increased by 4.46 percentage points to 1.89% from -2.57% in the previous year [30]. - The gross profit margin stood at 41.45%, showing a stable slight increase [83]. - The company achieved a revenue of 336.03 million RMB, representing a year-on-year increase of 98.29% [83]. - The net profit attributable to shareholders was 15.57 million RMB, marking a turnaround from loss to profit [83]. Shareholder Information - The company announced a cash dividend of 0.5 yuan per 10 shares (including tax) to all shareholders, with no stock bonus or capital increase planned [6]. - The company has not disclosed any significant changes in shareholder structure or stock movements during the reporting period [11]. - The total number of ordinary shareholders at the end of the reporting period was 14,648 [141]. - The largest shareholder, Shen Zhenyu, held 38,913,031 shares, representing 19.55% of the total shares, with 10 million shares pledged [143]. - The second-largest shareholder, Hu Deyong, held 20,846,266 shares, representing 10.47% of the total shares, with 6.63 million shares pledged [143]. - The company reported a significant reduction in shares held by management, with Qin Fang's shares decreasing by 71,155 due to equity incentive buybacks [149]. Risk Management - The company has detailed potential risks in the report, advising investors to review the discussion and analysis section for risk factors [8]. - The report includes a forward-looking statement risk declaration, indicating that future plans and strategies do not constitute a commitment to investors [7]. - There are no violations of decision-making procedures regarding external guarantees [8]. - The company has not engaged in any non-operational fund occupation by controlling shareholders or related parties [8]. - The company has not faced any issues with a majority of directors being unable to guarantee the report's authenticity [8]. Research and Development - The company's R&D investment accounted for 21.24% of revenue, with a total of 5 patents and 15 software copyrights granted during the reporting period [87]. - R&D expenses increased by 32.38% year-on-year to ¥71,367,768.43, reflecting a return to normal after pandemic-related policies in 2020 [90]. - The company is actively engaged in R&D in network visualization and domestic information technology, maintaining its technological leadership [87]. - The company is actively investing in R&D for new-generation network visualization infrastructure products and domestic information technology platforms to meet the demands of 5G network upgrades and information security [86]. Market Position and Strategy - The company continues to focus on intelligent system solutions, primarily in network visualization and intelligent system platform businesses, with no significant changes in its main operations during the reporting period [34]. - The company aims to enhance its product offerings and market presence in the fields of information security and industrial internet [34]. - The company is a pioneer in the network visualization field, leading in both technology and market share [55]. - The network visualization industry is experiencing rapid growth, with procurement peaks typically occurring in the fourth quarter of each year [54]. - The company maintains a competitive advantage in the smart systems sector with a comprehensive technology system and strong market share [62]. Financial Position - The company held cash and cash equivalents of ¥230,643,594.37, representing 18.78% of total assets, an increase of 48.75% from the previous year [91]. - Total current assets increased to CNY 920,604,442.98 as of June 30, 2021, up from CNY 885,743,769.06 at the end of 2020, representing a growth of approximately 3.1% [158]. - Total liabilities rose to CNY 396,446,321.11, up from CNY 356,820,026.98, indicating an increase of approximately 11.1% [163]. - Total equity attributable to shareholders increased to CNY 831,101,835.90 from CNY 815,167,930.73, a growth of about 1.5% [163]. - The company reported a total guarantee amount of RMB 15,000,000, which accounts for 1.80% of the company's net assets [130]. Corporate Governance - The board of directors confirmed that all members attended the meeting, ensuring the accuracy and completeness of the semi-annual report [5]. - The company has established a governance structure to ensure fair and just related party transactions, protecting the interests of the company and minority shareholders [114]. - The company has implemented strict measures for related party transactions according to its articles of association and management regulations [111]. - The actual controllers of the company, including Shen Zhenyu, Hu Deyong, and Wang Xiang, have committed to not engage in any business that competes with the company's main operations, both directly and indirectly [115]. - The company has committed to notifying it of any competitive business opportunities obtained from third parties by its actual controllers [115].