RocKontrol(SH:688051)2022-08-19 16:00Financial Performance - The company's operating revenue for the first half of 2022 was CNY 137.96 million, a decrease of 53.24% compared to CNY 295.06 million in the same period last year[18]. - The net profit attributable to shareholders of the listed company was a loss of CNY 58.99 million, a decline of 570.52% from a profit of CNY 12.54 million in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 78.86 million, compared to a profit of CNY 1.82 million in the same period last year, representing a decrease of 4,441.07%[18]. - The net cash flow from operating activities was a negative CNY 149.56 million, worsening from a negative CNY 100.00 million in the previous year[18]. - The net assets attributable to shareholders of the listed company at the end of the reporting period were CNY 1,255.79 million, down 5.08% from CNY 1,322.99 million at the end of the previous year[18]. - Total assets decreased by 9.03% to CNY 1,690.44 million from CNY 1,858.20 million at the end of the previous year[18]. - The company's basic earnings per share decreased by 575.00% to -0.76 CNY compared to the same period last year[19]. - The net profit attributable to shareholders decreased by 570.52% due to a decline in operating income caused by the pandemic[20]. - The weighted average return on net assets dropped by 5.41 percentage points to -4.57%[19]. Research and Development - Research and development expenses accounted for 49.20% of operating income, an increase of 24.44 percentage points[19]. - The company has a strong commitment to research and development, being involved in various national and industry standards committees[28]. - The company has developed 5 core technologies in AI algorithm and system research and development, with the newly added "Integrated Air Quality Forecasting and Early Warning Technology" during the reporting period[31]. - A total of 82 AI models have been developed and optimized, including new models for high-altitude object detection, climbing detection, and integrated air quality forecasting[32]. - The company has obtained 3 invention patents and has 28 invention patents pending, along with 74 software copyrights based on its core technologies[33]. - The "Integrated Air Quality Forecasting and Early Warning Technology" can predict time series and spatial distribution of conventional meteorological and pollutant concentration data[33]. - The AI cloud platform has 6 core technologies, with "Strategy Engine Technology" and "Video Segment Event Technology" being newly added during the reporting period[35]. - The "Cloud Service Interface Technology" enables high concurrency and performance through lightweight coroutine-based microservices[36]. - The "Resource Dynamic Scheduling Technology" allows for dynamic scaling of model service deployment instances based on current computing resource usage[36]. - The company has developed a new "Strategy Engine Technology" based on AI models, which improves operational review rates and coverage by filtering unnecessary entities for AI event review[37]. - The "Video Segment Event Technology" allows for caching live stream data before decoding, enabling efficient tracking of event entities and providing video evidence for AI events[37]. - The company has accumulated 12 software copyrights based on its core technologies, all of which are independently developed[38]. - The company has developed 9 core technologies, including "time series indexing technology" which achieves data compression occupying only 1/5 to 1/10 of traditional relational databases[47]. - The "SQL optimization technology" significantly accelerates time series data queries and writing performance, achieving 2-5 times the performance of traditional relational databases[48]. - The "pre-computed aggregation query optimization algorithm" improves performance by up to 30 times by avoiding unnecessary IO and CPU overhead during aggregation queries[49]. - The "high-performance gateway technology" supports concurrent access for up to one million devices, enhancing data processing efficiency[52]. - The "distributed computing engine" shows real-time performance 1.35 times better than Spark and 2.02 times better than MapReduce under the same conditions[52]. - The "full-link monitoring technology" enables real-time monitoring of service dependencies and alerts, improving platform operational efficiency[53]. - The company has obtained 6 software copyrights and has 4 patents pending based on its core technologies[49]. - The company has developed 7 core technologies, with the "Blockchain Cross-Chain Subsystem" being a new addition during the reporting period[56]. - The high-performance gateway technology can handle concurrent access from up to 1 million devices, as verified by CNAS performance testing[56]. - The distributed computing engine shows real-time performance 1.35 times faster than Spark and 2.02 times faster than MapReduce under the same conditions[56]. - The company has developed a "Ransomware Prevention Technology" that protects enterprise data by monitoring file operations and ensuring only authorized actions are executed[44]. - The "National Secret Algorithm FPGA Acceleration Technology" implements high-speed processing of national encryption algorithms, ensuring secure and efficient data handling[45]. - The "Commercial Password Service Middleware Technology" simplifies interface calls and system management, facilitating compliance with security requirements in data transmission[46]. - The company has a total of 3 core technologies in its commercial password service security platform, all of which are independently developed[46]. - The company has established a comprehensive R&D system and has been recognized with CMMI Level 5 certification, indicating advanced software maturity and project management capabilities[85]. Market and Business Strategy - The company is focusing on the Internet of Things (IoT) technology and has established a comprehensive data service platform[25]. - The company aims to leverage its core technologies to enhance its offerings in smart environmental protection and smart city applications[25]. - The company is actively participating in pilot projects for data asset evaluation initiated by the Beijing Economic and Information Technology Bureau[27]. - The company has been recognized as a key player in the development of carbon emission monitoring and management systems[26]. - The company is involved in the development of various national and international standards related to software engineering and information technology[30]. - The company has participated in the compilation of multiple industry standards, enhancing its position in the environmental monitoring sector[31]. - The company is actively working on building a comprehensive industrial IoT platform to empower the networking, digitization, and intelligence of the industrial sector[61]. - The company is focusing on expanding its market presence through new product developments and strategic partnerships in the smart city and industrial IoT sectors[74]. - The company is advancing the development of a server password machine, with 40% of the basic functionality completed[71]. - The company is integrating IoT, GIS, and mobile internet technologies into its environmental monitoring solutions, enhancing management efficiency[72]. - The company is focusing on expanding its market presence through innovative product offerings and strategic partnerships in the low-carbon technology sector[76]. - The company is currently in the early stages of its dual-carbon business, which may impact short-term profits but is not expected to have a substantial long-term effect on overall operations[99]. - The company is enhancing market research efforts to better understand customer needs and industry dynamics, aiming to mitigate risks associated with its business transformation[98]. - The company acknowledges the competitive pressure from major tech firms in the IoT sector and is focusing on niche applications to strengthen its market position[101]. Environmental and Sustainability Initiatives - The company has implemented a green and low-carbon corporate culture, promoting energy conservation and environmental protection among employees[126]. - The company has not been classified as a key pollutant discharge unit and has not faced any environmental penalties during the reporting period[123]. - The company has developed carbon neutrality and carbon peak application scenario products that have passed relevant certifications, contributing to environmental monitoring and governance[125]. - The company has established multiple classified waste disposal points within its premises to promote waste sorting and environmental awareness[125]. - The company achieved a PUE value of ≤1.5 for its data center, which is designed to meet national A-level standards and international TIA3+ standards[128]. - The company implemented energy-saving measures that resulted in a 25%-30% reduction in air conditioning electricity consumption in data centers[129]. - The company encourages employees to adopt carpooling and green energy transportation methods to reduce travel carbon footprints[130]. - The company has adopted water-saving hardware and direct drinking water machines to minimize plastic and carbon emissions from employee drinking needs[130]. - The company has replaced traditional water-cooled chillers with high-efficiency natural cooling screw chillers, achieving over 20% energy savings and 95% water savings[128]. - The company promotes a paperless office environment through the use of OA processes, significantly reducing the consumption of paper and ink cartridges[130]. - The company has established a carbon accounting platform to provide low-carbon smart services to millions of enterprises[127]. - The company has implemented a comprehensive energy monitoring system for its fleet of over 100 vehicles to manage energy resources effectively[129]. - The company emphasizes the importance of continuous innovation and integration of technology in its operations to achieve long-term carbon reduction goals[131]. Shareholder and Corporate Governance - The lock-up period for shareholders will automatically extend by 6 months if the stock price closes below the issue price for 20 consecutive trading days within 6 months post-listing[136]. - Shareholders can only transfer a maximum of 25% of their total shares held annually during their tenure as directors or senior management[137]. - The company commits to comply with relevant laws and regulations regarding share transfer and reduction, ensuring adherence to the Shanghai Stock Exchange rules[138]. - If the stock price falls below the issue price at the end of the 6-month period, the lock-up period for shareholders will also be extended by 6 months[136]. - Shareholders are prohibited from transferring or entrusting the management of their shares for 12 months post-listing[137]. - Any reduction in shareholding after the lock-up period must not be below the issue price, with adjustments made for any dividends or capital increases[138]. - The company will not repurchase shares held by shareholders prior to the IPO during the lock-up period[137]. - Shareholders must adhere to the commitment of not transferring shares for 2 years after the lock-up period expires[138]. - The company will adjust the issue price in case of any rights issues or stock dividends[136]. - Shareholders are required to comply with the Shanghai Stock Exchange's regulations on share transfer regardless of any changes in their positions[138]. - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of its IPO[140]. - If the stock price falls below the issue price for 20 consecutive trading days within 6 months post-IPO, the lock-up period will be extended by 6 months[140]. - The company will comply with all relevant laws and regulations regarding shareholder share transfers[142]. - Shareholders are restricted from transferring shares for 12 months following the IPO[142]. - The company plans to maintain its commitment to not repurchase shares held prior to the IPO[141]. - The company has established a five-year commitment for employees under the equity incentive plan[142]. - The company will adhere to the Shanghai Stock Exchange's rules regarding share transfers[142]. - The company has outlined specific conditions under which the lock-up period may be extended[140]. - Shareholders are required to comply with the regulations set forth by the China Securities Regulatory Commission[142]. Legal and Compliance Issues - The company received a qualified opinion from Deloitte Huayong regarding its 2021 financial report due to a real estate transaction involving a payment of RMB 50 million, which was not completed as per the contract terms[162]. - The company has received RMB 20 million and RMB 30 million back from the seller after terminating the real estate contract, totaling RMB 50 million[162]. - The company is currently involved in a significant lawsuit with a claim amount of RMB 5,288,597, which is under appeal in a higher court[165]. - Total guarantees provided by the company to subsidiaries amounted to CNY 49.98 million during the reporting period[172]. - The total balance of guarantees to subsidiaries at the end of the reporting period was CNY 117.56 million[172]. - The total amount of guarantees (including those to subsidiaries) was CNY 117.56 million, which accounts for 8.89% of the company's net assets[173]. Investment and Fundraising - The total amount of raised funds is RMB 888,017,209.31, with a net amount of RMB 864,368,781.00 after deducting issuance costs[175]. - As of the reporting period, the cumulative investment of raised funds reached RMB 636,418,340.77, representing 73.63% of the committed investment total[175]. - The AI environmental project received RMB 400,000,000.00, with 88.97% of the funds utilized by the end of the reporting period[175]. - The urban artificial intelligence project had a total investment of RMB 70,000,000.00, with 100.35% of the funds utilized, resulting in the completion of 44 patents and 78 software copyrights[175]. - The cloud chain database project had a total investment of RMB 15,000,000.00, with 100.97% of the funds utilized, and it has completed the application for 3 patents and 7 software copyrights[175]. - The environmental intelligent sensor upgrade project had a total investment of RMB 15,000,000.00, with 100.71% of the funds utilized, resulting in the development of 8 products[175]. - The company plans to temporarily use RMB 10,000,000.00 of idle raised funds to supplement working capital, with a usage period not exceeding 12 months[178]. - The IoT cloud data center construction project (Phase I) has a total investment of approximately RMB 48,460,000.00, but the company decided to use part of the remaining raised funds for working capital due to market demand factors[177]. - The cumulative investment progress of the urban new infrastructure project is 43.66%, with RMB 61,123,815.03 utilized as of 2023[176]. - The company has applied for a total of 44 patents and 78 software copyrights in the urban artificial intelligence project, indicating significant R&D achievements[175]. - The company approved the use of up to RMB 250 million of temporarily idle raised funds for cash management, focusing on high-security and liquid financial products[181]. - The company postponed the completion of the "Urban Artificial Intelligence Software R&D and Industrialization Project" and "Cloud Chain Database Sharing and Exchange Platform Upgrade R&D Project" to June 30, 2022[182]. Shareholder Structure and Changes - The company reported a total of 77,334,000 shares outstanding, with 69.19% being restricted shares[186]. - As of June 30, 2022, the total number of ordinary shareholders was 5,065[188]. - The top shareholder, Shanghai Baiyu Information Technology Co., Ltd., held 24,463,099 shares, representing 31.63% of the total shares[190]. - The company completed the fundraising projects for the "Urban Artificial Intelligence Software R&D and Industrialization Project" and "Cloud Chain Database Sharing and Exchange Platform Upgrade R&D Project" during the reporting period[182]. - The company reported a decrease of 390,446 restricted shares, bringing the total restricted shares to 53,505,158[186]. - The company’s first public offering restricted shares became tradable on March 21, 2022, with 787,246 shares released, accounting for 1.02% of the total shares[187]. - The company plans to use surplus funds from completed projects to supplement working capital[182]. - The company’s cash management strategy includes the use of safe and liquid financial products such as time deposits and large certificates of deposit[181]. - The company reported a total of 8,952,485 shares held by the management partnership, representing 11.58% of the total shares[191]. - Li Wei directly holds 15.63% of the company's shares and is a significant shareholder of Baidu Information, which holds 90% of the shares[192]. - The top ten unrestricted shareholders include Wu Wei with 1,591,978 shares, Su Xiang with 898,968 shares, and Jin Guoxin with 896,931 shares[193]. - The company has a total of 24,463,099 restricted shares held by Shanghai Baiyu Information Technology Co., Ltd., which will become tradable on March 20, 2023[193]. - The company has terminated the 2021 restricted stock incentive plan due to a negative audit opinion on internal controls for the previous fiscal year[197]. - The company will not implement stock incentives as it does not meet the necessary conditions outlined in the stock incentive management regulations[197]. - The company has a total of 12,089,574 restricted shares held by Li Wei, which will also become tradable on March 20, 2023[193]. - The company has a significant shareholder structure with Baidu Information and Gongqingcheng Huayun holding 31.63% and 11.58% of the shares, respectively[192]. - The company has not received any declarations of related party relationships or concerted actions among other shareholders[192]. - The company’s board has decided to cancel all unvested restricted stocks associated with the terminated incentive plan[198]. - No changes in controlling shareholders or actual controllers during the reporting period[199]. - No implementation or changes regarding depositary receipt arrangements during the reporting period[199]. - No special voting rights arrangements in place during the reporting period[200]. - No changes in the number of voting rights associated with special voting shares compared to ordinary shares during the reporting period[200]. - No other arrangements related to special voting rights during the reporting period[200]. - No changes in the arrangements for voting rights discrepancies during the reporting period[200].