IReader Technology(SH:603533)2021-08-16 16:00Financial Performance - The company's operating revenue for the first half of the year reached ¥1,094,323,030.77, an increase of 11.64% compared to ¥980,200,686.68 in the same period last year [29]. - Net profit attributable to shareholders was ¥133,813,325.46, reflecting a growth of 21.10% from ¥110,497,809.05 year-on-year [29]. - The net cash flow from operating activities increased by 75.73% to ¥121,191,590.20, compared to ¥68,965,882.41 in the previous year [29]. - The company's total assets grew by 48.47% to ¥3,391,700,274.89 from ¥2,284,396,340.71 at the end of the previous year [29]. - The weighted average return on equity decreased by 2.50 percentage points to 6.10% from 8.60% in the same period last year [29]. - The company achieved a revenue of 1,094.32 million RMB in the first half of 2021, representing a year-on-year growth of 11.64% [45]. - The net profit attributable to shareholders was 133.81 million RMB, an increase of 21.10% compared to the same period last year [45]. - The company's total liabilities decreased by 34.23% to ¥31,355,672.20, which is 0.92% of total assets, mainly due to a reduction in taxes payable [60]. - The company's total liabilities decreased to ¥756,169,247.53 from ¥773,453,767.00, a reduction of 2.5% [167]. - Total equity increased significantly to ¥2,446,166,790.68 from ¥1,353,008,799.28, reflecting an increase of 80.9% [167]. Assets and Liabilities - The company's cash and cash equivalents at the end of the period amounted to ¥2,375,795,973.72, representing 70.05% of total assets, an increase of 83.97% compared to the previous year [58]. - Other receivables increased by 34.03% to ¥7,165,592.70, accounting for 0.21% of total assets, primarily due to an increase in deposits [58]. - Inventory rose by 47.55% to ¥941,531.60, maintaining a 0.03% share of total assets, attributed to the introduction of new product types [58]. - The company's long-term equity investments rose to RMB 253,557,051.20 from RMB 244,731,264.92, marking an increase of approximately 3.9% [152]. - The total current assets as of June 30, 2021, amounted to RMB 2,797,177,342.59, an increase from RMB 1,730,303,338.45 as of December 31, 2020, representing a growth of approximately 61.8% [152]. - The total assets of the company reached ¥3,202,336,038.21, compared to ¥2,126,462,566.28, representing a growth of 50.5% [167]. Research and Development - The company’s R&D expenses rose by 17.54% to 71.55 million RMB, reflecting increased investment in research and development [56]. - Research and development expenses increased to ¥84,096,429.43, up from ¥71,548,922.02, marking a rise of 17.5% [167]. Market and Competition - The company faces risks from regulatory changes in the digital reading industry, which could impact business stability [65]. - The company is exposed to intense market competition in the digital reading sector, which may affect its competitive position and performance [66]. - The average monthly active users on the digital reading platform maintained an industry-leading level, with plans to increase user acquisition through targeted advertising [48]. - The overseas reading business added over 1 million paid users, generating revenue of 148 million RMB, which is over 100% growth year-on-year [50]. Corporate Governance and Compliance - The company has confirmed that there are no non-operational fund occupations by controlling shareholders or related parties [9]. - The company has made commitments to avoid non-operating fund occupation and will ensure compliance with relevant laws and regulations [105]. - The controlling shareholders have pledged to prevent any competition with the company and will introduce any relevant business opportunities to the company [102]. - The company has not reported any violations or penalties against its directors, supervisors, or senior management during the reporting period [106]. - The company has established measures to ensure that its controlling shareholders do not interfere with its management activities [102]. Social Responsibility - The company provided job opportunities for 219 disabled individuals through its "Zhangyue Book Craftsman" project, enabling them to work remotely in e-book formatting and proofreading [91]. - The company has maintained and updated reading rooms in impoverished areas and minority communities as part of its social responsibility initiatives [91]. - The company donated 50 iReader e-book readers and 50 annual VIP reading cards, each containing access to 200,000 e-books for one year, to several primary schools in Jinggangshan [92]. - The company donated laptops to 30 students from impoverished families in Kangbao County and 30 students in Zhuozi County, aiming to support education in underprivileged areas [92]. - The company has focused on reducing carbon emissions by promoting digital reading services, which decreases the need for paper books and tree cutting [90]. Shareholder Information - The total number of ordinary shareholders reached 45,638 by the end of the reporting period [135]. - The top shareholder, Zhang Lingyun, holds 99,451,049 shares, representing 22.66% of the total shares [138]. - The second-largest shareholder, Cheng Xiangjun, owns 93,352,370 shares, accounting for 21.27% [138]. - Major shareholders include various investment funds, with significant increases in limited shares for several individuals and institutions [126]. - The company has maintained a stable shareholder structure with no significant changes in the top ten shareholders during the reporting period [135]. Future Outlook - The management provided a positive outlook for the second half of 2021, anticipating continued growth in user engagement and revenue [146]. - The company is focusing on expanding its market presence and enhancing its product offerings, although specific new products were not detailed in the report [146]. - The report indicates that the company is exploring strategic partnerships and potential acquisitions to bolster growth [146].