Primeton(SH:688118)2023-07-31 16:00Financial Performance - The company achieved operating revenue of RMB 180.67 million in the first half of 2023, representing a 32.18% increase compared to the same period last year, driven by digital transformation and industry innovation opportunities [18]. - Basic earnings per share for the first half of 2023 were -0.341 yuan, compared to -0.299 yuan in the same period last year [18]. - The weighted average return on net assets decreased by 0.53 percentage points to -3.65% in the first half of 2023 [18]. - The net profit attributable to shareholders was -¥31,317,868.66, compared to -¥27,520,400.61 in the previous year, indicating a decline [20]. - The net cash flow from operating activities was -¥112,326,962.76, slightly improved from -¥115,215,043.98 year-on-year [20]. - Gross profit reached 76.93 million yuan, with a year-on-year growth of 53.19%, and the overall gross margin increased by 5.84 percentage points [63]. - The net profit for the first half of 2023 was a loss of RMB 8,893,917.05, an improvement from a loss of RMB 16,419,368.14 in the first half of 2022, indicating a reduction in losses by approximately 45.9% [163]. - The company reported a comprehensive income loss of RMB 16,419,368.14 during the reporting period [182]. Research and Development - Research and development expenses accounted for 26.82% of operating revenue, slightly down from 26.83% in the previous year [18]. - The company increased R&D investment to CNY 48.45 million, a 32.14% increase compared to the same period last year [51]. - The R&D team is composed of 86.09% with a bachelor's degree or higher, indicating a strong educational background [57]. - The company has mastered over 40 key core technologies and holds 41 authorized invention patents, 61 pending invention patents, and 278 software copyrights [41]. - The company has made significant advancements in low-code development platforms and data governance, focusing on customer digital transformation needs [41]. - Research and development expenses rose to ¥48,447,261.10, an increase of 32.2% from ¥36,664,447.33 in the previous year [158]. Market Position and Strategy - The company is positioned as a leading provider of software infrastructure solutions, focusing on sectors such as finance, communication, and energy [24]. - The company aims to leverage opportunities from the digital transformation initiatives in China to achieve rapid growth [29]. - The company has expanded its customer base by targeting industries such as military, transportation, and education, in addition to its existing strengths in finance, government, and energy [64]. - The company serves over a thousand large and medium-sized clients across key industries, including finance, telecommunications, and energy, establishing a strong brand presence [60]. - The company has successfully entered the financial sector, gaining trust from major banks and financial institutions, enhancing its reputation in high-performance and secure software solutions [60]. Risks and Compliance - The company has outlined various risks and countermeasures in its report, emphasizing the importance of understanding potential market fluctuations [4]. - The company continues to face risks related to core competitiveness, particularly in technology development and talent retention [72]. - The company emphasizes compliance with relevant laws and regulations regarding shareholding and reduction commitments [105]. - The company guarantees that related party transactions will be conducted on fair and market-based terms to protect the interests of all shareholders [113]. Shareholder and Capital Management - The company has not proposed any profit distribution or capital reserve transfer plans for this reporting period [6]. - The company plans to grant 5 million restricted stocks under the 2023 restricted stock incentive plan, accounting for 5.24% of the total share capital at the time of the announcement [95]. - The company will implement a three-year shareholder dividend return plan, balancing sustainable business development with shareholder returns [109]. - The company plans to distribute at least 10% of its distributable profits in cash each year, provided that it meets the necessary conditions for cash dividends [111]. Environmental and Social Responsibility - The company actively responds to the national "dual carbon" policy, emphasizing environmental protection and promoting energy conservation among employees [101]. - Specific carbon reduction measures include encouraging paper recycling, double-sided printing, water conservation, and energy-saving practices [101]. Financial Reporting and Transparency - The financial report for the first half of 2023 has not been audited, ensuring transparency in the reporting process [4]. - The company has taken responsibility for the accuracy and completeness of its IPO prospectus, ensuring no misleading statements or omissions [113]. - The company will ensure compliance with all legal and regulatory requirements in its operations and commitments [117].