FJR(SH:688272)2022-08-19 16:00Financial Performance - The company reported a net loss of CNY 43.24 million for the reporting period, with a net profit attributable to shareholders of CNY -47.41 million, marking a decline of CNY 78.38 million year-over-year [4]. - Revenue for the reporting period was CNY 27.85 million, a decrease of CNY 126.39 million, representing a decline of 81.95% compared to the same period last year [4]. - The cumulative undistributed profits as of June 30, 2022, amounted to CNY 63.25 million, indicating that the company has not yet achieved profitability during the reporting period [4]. - The net profit attributable to shareholders for the reporting period was -¥43,244,717.68, representing a decline of 239.03% from ¥31,103,568.15 in the previous year [20]. - The basic earnings per share for the first half of 2022 was -¥0.57, down 204.28% from ¥0.55 in the same period last year [20]. - The net cash flow from operating activities decreased by 874.38%, amounting to -¥54,638,214.87 compared to ¥7,055,698.19 in the previous year [20]. - The company's net assets attributable to shareholders decreased by 7.50%, from ¥678,640,099.62 at the end of the previous year to ¥627,719,381.94 [20]. - The gross profit margin for the main business decreased from 46.79% in the first half of 2021 to 33.75% in the first half of 2022 [110]. - The company reported a significant increase in financial expenses, with a change of -203.66% due to increased interest income from normal bank deposits [119]. Market Challenges - The company faces risks related to ongoing losses and performance declines, influenced by macroeconomic factors, industry competition, and the impact of the COVID-19 pandemic [5]. - Military product revenue decreased by 86.77% year-on-year, primarily due to a significant reduction in orders for non-refrigerated cores and thermal imaging devices [22]. - Civilian product revenue also saw a decline of 77.20%, largely due to order delays caused by the pandemic affecting target customers [22]. - The company’s military product revenue showed a downward trend due to the pandemic, with total military business income for the first half of 2022 at CNY 10.12 million, down from CNY 76.49 million in the same period of 2021 [106]. - The company’s civilian product revenue for the first half of 2022 was CNY 17.72 million, a significant drop from CNY 77.74 million in the previous year, indicating challenges in market expansion [108]. - The company is facing risks related to the reliance on external procurement for core components, which could increase costs by approximately 20-35% compared to self-sourced components [108]. - The ongoing COVID-19 pandemic has negatively affected the company's production and business operations due to strict control measures [114]. Research and Development - The company is committed to continuous investment in product research and development, market promotion, and sales to mitigate potential losses and achieve revenue growth [5]. - Research and development expenses accounted for 102.20% of operating revenue, an increase of 89.93 percentage points compared to 12.27% in the previous year [21]. - The company achieved a total R&D investment of ¥28,459,087.58, representing a 50.44% increase compared to ¥18,917,274.81 in the same period last year [64]. - The number of R&D personnel increased to 140, representing 44.30% of the total workforce, up from 41.09% in the previous year [89]. - The total compensation for R&D personnel was 1,557.93 million RMB, with an average salary of 14.16 million RMB per person [89]. - The company has developed advanced core technologies, including multi-point temperature mapping and low-power large-area sensor driving technology, which significantly enhance infrared product performance [56]. - The company has developed advanced infrared imaging technology that automates parts of the production process, improving efficiency and product quality [59]. - The company is focusing on integrated innovation in product development, enhancing its core competitiveness through advanced technology and design capabilities [87]. Product Development and Technology - The company has developed multiple core technologies in the infrared thermal imaging sector, achieving performance levels that are domestically advanced or close to international standards [32]. - The company has successfully integrated various technologies, including detector drive control and optical gas imaging, enhancing its product offerings in both military and civilian sectors [32]. - The core component of the company's products is the detector, which converts optical signals into electrical signals, significantly impacting system performance [46]. - The lens focuses infrared radiation onto the detector's focal plane, fundamentally affecting the intensity of radiation received and image clarity, thus being a critical component of the infrared thermal imaging products [46]. - The thermal imaging system includes complex functionalities such as multi-spectral imaging and temperature measurement, indicating a high level of product sophistication [39]. - The company has developed advanced infrared lenses and control circuits, which are essential for achieving the desired imaging quality and operational reliability under various environmental conditions [45]. - The company is focusing on infrared thermal imaging products and overall solutions, emphasizing customized design and continuous tracking to meet diverse customer needs [49]. - The company is advancing towards the integration of AI technologies in its product offerings, enhancing capabilities in target identification and classification [70]. Financial Management and Investments - The company has committed to a total investment of 500 million RMB for its projects, with an adjusted total investment of 369.84 million RMB [185]. - The company has reported a total of 428.64 million RMB in raised funds, with a net amount of 369.84 million RMB after deducting issuance costs [185]. - The company has utilized 5 million RMB of idle raised funds to temporarily supplement working capital [191]. - The company plans to use up to 300 million RMB of idle raised funds for cash management, focusing on safe and liquid investment products [193]. - The company has a project for optical research and development with a total investment of approximately 267.81 million RMB, with a progress rate of 26.39% as of the reporting period [186]. - The company has a project for industrial testing product research and development with a total investment of approximately 97.64 million RMB, with a progress rate of 8.42% [186]. - The company has a project for the construction of a research and development center with a total investment of approximately 79.00 million RMB, with a progress rate of 7.45% [186]. Corporate Governance and Compliance - The company has established a complete quality management system in accordance with ISO9001 standards, covering the entire product lifecycle from R&D to after-sales [95]. - The company has a stable core management team, with most members having served since the company's inception, providing a solid foundation for sustainable development [93]. - The company is focused on enhancing internal management and governance structures to improve operational efficiency and mitigate business risks [100]. - The company has committed to ensuring that the prospectus for its initial public offering (IPO) does not contain any false records, misleading statements, or significant omissions, and will bear legal responsibility for its accuracy and completeness [157]. - The company will ensure compliance with regulations regarding share reduction and will announce any planned reductions three trading days in advance [149]. - The company has confirmed that there are no major litigation or arbitration matters during the reporting period [179]. - The company has disclosed that there are no significant non-operating fund occupations by controlling shareholders and related parties during the reporting period [178]. Environmental Responsibility - The company actively implements environmental protection measures, including the use of energy-efficient equipment to reduce carbon emissions [140]. - The company adheres to environmental regulations, ensuring that wastewater and solid waste management meet legal standards [139]. - The company has established a comprehensive environmental management system to support its commitment to sustainability [137]. - The company emphasizes green manufacturing and operational practices to minimize environmental impact [139].