RAISECOM(SH:603803)2021-08-30 16:00Financial Performance - The company achieved operating revenue of RMB 792,952,961.75, an increase of 14.52% compared to the same period last year[19]. - The net profit attributable to shareholders was RMB -772,258,145.15, a decrease of 6,858.50% compared to the same period last year[19]. - The net cash flow from operating activities was RMB -243,230,799.68, representing a decline of 51.07% compared to the previous year[19]. - The total assets at the end of the reporting period were RMB 2,995,045,124.12, a decrease of 18.70% from the end of the previous year[19]. - The net assets attributable to shareholders decreased by 30.15% to RMB 1,875,803,153.29 compared to the end of the previous year[19]. - Basic earnings per share were RMB -1.83, a decrease of 6,200.00% compared to the same period last year[20]. - The weighted average return on equity was -33.52%, a decrease of 33.95 percentage points compared to the same period last year[20]. - The company reported a significant increase in non-operating losses, impacting overall profitability[22]. - The company reported a total of 1,485,375.05 in non-recurring gains, after accounting for various losses and tax impacts[25]. - The company reported a net profit increase of 176.46% in its wholly-owned subsidiary Shenzhen Ruisi, with revenue of RMB 187.59 million[77]. - The subsidiary Beilin Xintong reported a net loss of RMB 26.31 million, despite a revenue of RMB 0.30 million, indicating increased expenses[77]. Assets and Liabilities - The company's total liabilities increased to CNY 1,121,609,524.18 from CNY 1,000,358,049.10, marking an increase of about 12.1%[137]. - The company's equity attributable to shareholders decreased to CNY 1,875,803,153.29 from CNY 2,685,663,311.79, a decrease of about 30.2%[137]. - The company's accounts receivable amounted to RMB 854.75 million, representing 34.75% of current assets, with a provision for bad debts of RMB 279.75 million[81]. - The company recognized an inventory impairment provision of RMB 332.81 million for the specialized network communication business, with total impairment provisions amounting to RMB 769.92 million, leading to a net profit reduction of RMB 755.34 million attributable to shareholders[48]. - The total amount of guarantees provided by the company, including those to subsidiaries, is RMB 150,000,000.00, which accounts for 8.01% of the company's net assets[117]. Market and Product Development - The company achieved a net increase of 783,000 fixed internet broadband access users, reaching a total of 14.23 million users with access rates of 1000 Mbps and above, representing a year-on-year growth of 433.7%[30]. - The company launched high-density 10G PON OLT devices and various smart gateway devices to meet the demand for high-performance broadband services in homes, enterprises, and schools[34]. - The company is actively involved in the development of next-generation OTN technology standards and has independently developed core technologies for next-generation OTN solutions[32]. - The company is focusing on the integration of 5G and cloud networks, enhancing its capabilities in high-value areas such as industrial internet and cloud network solutions[31]. - The company aims to support the digital transformation of various industries through the promotion of 5G applications and solutions, aligning with government initiatives[29]. - The company has established a joint venture, Haijing Water Internet Technology (Hainan) Co., Ltd., to provide communication equipment and solutions for the water resources market[58]. Research and Development - The company holds a total of 394 patents, including 313 invention patents, 46 utility model patents, and 35 design patents, along with 34 software copyrights[37]. - The company's R&D expenses increased by 6.77% to RMB 123,093,708.48, mainly due to increased personnel costs in R&D[63]. - The company has successfully developed a 5G/F5G industrial edge computing gateway, integrating various technologies to meet the digitalization needs of the oil and petrochemical industry and smart manufacturing[36]. - The company is actively expanding its market share in the cloud-network integration sector by providing integrated solutions for small and medium-sized enterprises[35]. - The company has launched a cloud security brand "RAIZSEC" and introduced SASE SDWAN solutions to enhance its offerings in the SDWAN market[35]. Risk Management - The company has recognized an impairment provision of RMB 279.75 million for accounts receivable and RMB 157.36 million for other receivables related to the specialized communication business[45]. - The company is committed to monitoring and managing risks associated with accounts receivable and inventory to mitigate potential financial impacts[82]. - The company faces intensified market competition due to rapid technological advancements and cost control measures by operators[78]. - The company anticipates performance volatility risks due to rapid equipment updates and reliance on imported components[79]. - The company has disclosed potential risks related to the inability to recover receivables, advance payments, and inventory liquidation due to the subsidiary's litigation[118]. Corporate Governance - The company held its annual general meeting on May 13, 2021, where 13 ordinary resolutions were approved by shareholders representing more than half of the voting rights[87]. - There were changes in senior management, with Song Xianjian appointed as the Deputy General Manager[90]. - No profit distribution or capital reserve fund transfer plans were proposed for the half-year period[91]. - The company has implemented a stock option incentive plan, with adjustments made to the exercise price and the number of options granted[92]. - The company has committed to not engaging in any competitive business activities that may harm its interests or those of its shareholders, ensuring strict compliance with this commitment since April 27, 2015[103]. Environmental and Social Responsibility - The company actively promotes energy conservation and environmental protection, implementing measures to reduce carbon emissions and enhance resource efficiency[99]. - The company has established an energy management department to oversee energy allocation and usage, aiming for effective energy conservation[100]. - The company has received the "Urban Sewage Discharge Permit" and ensures wastewater treatment meets discharge standards[98]. - The company is committed to green development and has established a long-term mechanism for sustainable practices[96]. Financial Reporting and Compliance - The company’s financial statements are prepared based on the going concern assumption, indicating no significant doubts about its ability to continue operations for the next 12 months[174]. - The company adheres to the accounting standards, ensuring that its financial statements accurately reflect its financial position and operating results[176]. - The company recognizes financial assets and liabilities at fair value upon initial recognition, with specific methods for subsequent measurement based on their classification[187]. - The company assesses credit risk for financial instruments at each reporting date to determine if there has been a significant increase in credit risk since initial recognition[195]. - The company categorizes inputs used in valuation techniques into three levels, with Level 1 being quoted prices in active markets for identical assets or liabilities[192].