Appo(SH:688007)2020-08-26 16:00Financial Performance - The company's operating revenue for the first half of 2020 was ¥716,025,207.34, a decrease of 16.09% compared to the same period last year[22]. - The net profit attributable to shareholders was ¥14,327,442.96, down 78.48% year-on-year[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥30,232,495.13, a decline of 172.67% compared to the previous year[22]. - Basic and diluted earnings per share decreased by 82.35% to ¥0.03[25]. - The company faced significant impacts from the COVID-19 pandemic, leading to declines in cinema services and sales[25]. - Operating revenue decreased by 16.09% year-on-year to ¥716,025,207.34, primarily due to the impact of COVID-19, which led to cinema closures and a decline in service and sales business[99]. - The company anticipates a significant decline in performance compared to the same period last year due to the impact of the pandemic on the cinema service industry[119]. Cash Flow and Assets - The net cash flow from operating activities turned positive at ¥63,006,061.80, compared to -¥14,543,413.52 in the same period last year[22]. - Total assets at the end of the reporting period were ¥3,082,777,641.24, a decrease of 0.54% from the end of the previous year[22]. - The company has overseas assets amounting to ¥409,708,787.31, which represents 13.29% of total assets[61]. - Cash flow from financing activities turned negative, with a net outflow of ¥115,291,912.69, primarily due to a reduction in new loans and a decrease in high-interest long-term loans[99]. Research and Development - The R&D investment accounted for 12.19% of operating revenue, an increase of 1.72 percentage points year-on-year[25]. - The company invested a total of ¥87,295,450.75 in R&D during the reporting period, which accounts for 12.19% of its operating revenue[51]. - The company has a comprehensive R&D, procurement, sales, production, and service system, primarily focusing on independent R&D and production[32]. - The company has a strong patent portfolio across multiple countries, ensuring protection of its core technologies in the laser display industry[42]. - The company has accumulated a total of 996 authorized patents globally, including 747 domestic and 249 overseas patents[50]. - The company is leveraging patent protection and technology upgrades to drive product innovation and maintain a competitive edge in the industry[80]. Business Strategy and Market Position - The company plans to enhance its business strategies to recover from the pandemic's effects and improve profitability[25]. - The main business involves the research, production, and sales of laser display core components and complete machines, with a focus on laser cinema services[32]. - The company has established a unique cinema service model, "Laser as a Service," which alleviates financial pressure on cinemas by charging service fees based on usage time[36]. - The TO C market for laser displays is in a rapid growth phase, with the company leading in the development of home laser television products[41]. - The company expects the home laser display market to see lower prices and improved performance in the coming years, making it more accessible to consumers[41]. - The company is a leader in the laser projection industry, participating in the formulation of international standards for laser display technology[46]. Operational Efficiency and Cost Management - The company has enhanced its operational efficiency through information technology improvements, including the implementation of a CRM system[77]. - Sales expenses decreased by 16.10% year-on-year to ¥50,833,894.50, attributed to cost control measures during the pandemic, including reduced salaries, travel, and marketing expenses[100]. - Management expenses increased by 32.39% year-on-year to ¥77,813,657.09, mainly due to increased share-based payments and litigation-related service fees[100]. - R&D expenses decreased by 2.26% year-on-year to ¥87,295,450.75, remaining stable with slight increases in depreciation but a decrease in material and third-party service costs[100]. Investment and Shareholder Commitments - The company has not proposed any profit distribution or capital reserve transfer plans for the half-year period[121]. - No dividends or stock bonuses were declared for every 10 shares during the reporting period[123]. - The company has committed to shareholding restrictions for major shareholders and management, extending for 12 months post-IPO[124]. - The company has established a profit distribution policy commitment for the long term[132]. - The company will ensure compliance with all relevant laws and regulations regarding shareholder obligations and responsibilities[138]. - The company will implement measures to compensate investors for losses resulting from any false statements in the prospectus, ensuring accountability[192]. Future Outlook and Risks - The company is facing risks related to technology innovation, including potential funding limitations and the inability to achieve large-scale industrialization of new technologies[84]. - The company is expanding its overseas business, but faces risks due to ongoing global economic instability and the impact of the COVID-19 pandemic[87]. - The company is facing increased investment risks due to the potential underperformance of its investments[119].