SNC Net(SH:605398)2021-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2021 was RMB 242,601,439.49, representing a 1.25% increase compared to RMB 239,608,267.83 in the same period last year[19]. - The net profit attributable to shareholders decreased by 36.92% to RMB 32,789,092.78 from RMB 51,978,558.45 year-on-year[19]. - The net profit after deducting non-recurring gains and losses fell by 39.77% to RMB 26,981,602.14 compared to RMB 44,797,151.31 in the previous year[20]. - The net cash flow from operating activities was negative at RMB -52,578,049.04, worsening from RMB -43,630,185.05 in the same period last year[20]. - Basic and diluted earnings per share decreased by 50.00% to RMB 0.58 from RMB 1.16 in the same period last year[21]. - Operating profit decreased by 33.83% to RMB 37,838,768.87, while net profit attributable to shareholders fell by 36.92% to RMB 32,789,092.78, primarily due to increased R&D investments[40]. - The company reported a decrease in other income by 72.55%, primarily due to last year's receipt of compensation for breach of contract[47]. - The company reported a total comprehensive income of ¥32,789,092.78 during the first half of 2021[139]. Assets and Liabilities - The net assets attributable to shareholders increased by 126.17% to RMB 939,654,315.55 from RMB 415,458,791.23 at the end of the previous year[20]. - Total assets rose by 71.21% to RMB 1,134,961,192.10 from RMB 662,921,377.11 at the end of the previous year[20]. - Total liabilities decreased to CNY 195,087,462.74 from CNY 247,279,050.61, a reduction of approximately 21.1%[121]. - The company’s total assets increased significantly, with cash and cash equivalents being a major contributor due to the IPO proceeds[49]. - The company’s fixed assets increased by 52.35% to 2,659,000.07, primarily due to the purchase of new fixed assets[49]. - The company’s capital reserve increased by 763.89% to 565,837,239.93, mainly due to the premium from the initial public offering[51]. Research and Development - The company attributed the decline in profits primarily to increased R&D investments during the reporting period[22]. - R&D expenses totaled RMB 39,492,000, an increase of RMB 15,244,800 compared to the previous year, accounting for 16.28% of operating revenue, up by 6.16 percentage points[41]. - Research and development expenses increased to CNY 39,491,984.35, representing a 63.06% rise from CNY 24,247,205.03 in the first half of 2020[127]. - The company holds a total of 71 patents and 119 software copyrights as of June 2021, reflecting its commitment to innovation and technology development[42]. Market and Business Strategy - The IT data center operation management market in China is expected to reach CNY 294.12 billion in 2021, with a compound annual growth rate of 17.59% projected until 2023[30]. - The company focuses on IT data center operation services and products, aiming to enhance IT operational intelligence and support digital transformation[31]. - The company aims to optimize and upgrade its "Zn series" products and technologies to enhance its competitive edge in the industry[30]. - The company is committed to building a domestic ecosystem and expanding its multi-faceted effects through continuous R&D and potential investment collaborations[30]. - The company has established a comprehensive service model that significantly enhances customer retention, with a focus on a "service + product" approach[38]. Financing Activities - The net cash flow from financing activities increased by 485,483,006.78, compared to a net outflow of -22,757,099.58 in the previous year[45]. - Cash and cash equivalents at the end of the period amounted to 635,600,891.12, representing 56.00% of total assets, an increase of 77.87% from the previous year[49]. - The company received cash inflow from financing activities of ¥540,661,156.15, a significant increase compared to ¥39,000,000.00 in the same period last year[133]. Shareholder Commitments and Governance - The actual controllers and shareholders have committed to not transferring shares for 36 months post-IPO[73]. - Shareholders have agreed to comply with relevant laws and regulations regarding share lock-up[74]. - The company will ensure compliance with laws and regulations regarding related party transactions and will not use such transactions to harm the interests of the company and its shareholders[81]. - The company has committed to long-term and stable shareholding in Shanghai Xinjun Network, with any share reduction after the lock-up period limited to 25% of the held shares annually for the first two years[85]. Compliance and Legal Matters - The company is not listed as a key pollutant discharge unit and has not faced any environmental penalties[69]. - The company has complied with national environmental laws and regulations without any violations during the reporting period[69]. - There were no significant lawsuits or arbitration matters during the reporting period[94]. - The company reported no non-compliance issues or penalties involving its directors, supervisors, or actual controllers[95]. Accounting Policies and Financial Reporting - The company adheres to the accounting standards issued by the Ministry of Finance, ensuring that the financial statements accurately reflect the financial position as of June 30, 2021, and the operating results for the first half of 2021[157]. - The company uses Renminbi as its functional currency for accounting purposes[160]. - The consolidated financial statements include all subsidiaries under the company's control, reflecting the overall financial status and cash flows of the entire corporate group[163]. - The company recognizes expected credit losses for long-term receivables and other debt investments, although specific methods are not applicable in this context[20].