LZRJ(SH:688588)2021-08-25 16:00Financial Performance - The company reported a total revenue of RMB 100 million for the first half of 2021, representing a year-on-year increase of 20%[13]. - The company's operating revenue for the first half of 2021 was ¥322,539,594.25, representing a year-on-year increase of 15.04% compared to ¥280,360,073.90 in the same period last year[19]. - Net profit attributable to shareholders was ¥73,561,478.39, a 3.00% increase from ¥71,422,090.04 in the previous year[21]. - The net profit after deducting non-recurring gains and losses was ¥66,016,022.63, up 4.91% from ¥62,924,089.29 year-on-year[21]. - The company's cash flow from operating activities was ¥30,243,607.35, reflecting a 3.77% increase compared to ¥29,143,595.02 in the same period last year[19]. - The gross profit margin for the first half of 2021 was reported at 45%, an improvement from 40% in the same period last year[13]. - The company's total assets at the end of the reporting period were ¥1,351,239,117.78, an increase of 3.64% from ¥1,303,729,531.21 at the end of the previous year[19]. - The company's total liabilities decreased to ¥77,422,679.01 from ¥102,262,227.45, a reduction of about 24.3%[157]. - The company's equity totaled ¥1,217,173,192.97, an increase from ¥1,144,131,264.38, reflecting a growth of 6.4%[162]. Research and Development - Investment in research and development increased by 30% compared to the previous year, focusing on artificial intelligence and cloud computing technologies[13]. - The company's R&D expenditure as a percentage of operating revenue was 9.68%, an increase of 0.22 percentage points compared to 9.46% in the previous year[20]. - Research and development expenses totaled approximately ¥31.21 million, representing a 17.73% increase compared to the previous period, with R&D expenses accounting for 9.68% of operating revenue[46]. - The number of R&D personnel increased to 256, representing 16.19% of the total workforce, up from 15.14% in the previous period[56]. - Total compensation for R&D personnel reached ¥29,255,629.19, compared to ¥24,693,913.99 in the prior period[56]. Market Expansion and Strategy - The company expects a revenue growth of 25% for the second half of 2021, driven by new product launches and market expansion strategies[13]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2022[13]. - A strategic acquisition of a local software firm is anticipated to enhance the company's product offerings and customer base[13]. - The company aims to leverage its experience in the Japanese market to enhance domestic software solutions for the securities industry[30]. - The company is focused on the domestic application software solutions market, capitalizing on the booming digitalization needs in the securities industry[76]. Technology and Innovation - The company has developed a low-code development platform, LCoder, which reduces project failure rates and lowers the technical skill requirements for developers[36]. - The company’s automated testing platform significantly enhances software project development efficiency and quality[36]. - The company has established a stable procurement model for software products and electronic devices, ensuring sufficient supply to meet project demands[34]. - The company has developed a self-service rule engine middleware that supports various rule types, enhancing user experience and decision-making efficiency[37]. - The AI platform integrates data mining and distributed computing frameworks, providing real-time data analysis with millisecond-level latency for high-timeliness data processing[37]. Client Base and Partnerships - The company has accumulated a client base of over 70 securities companies in the domestic market, including major firms like Guotai Junan and Huatai Securities[33]. - The company has established a stable partnership with major Japanese financial institutions, developing numerous core business systems for them[29]. - The company successfully expanded its client base, adding notable clients such as TDC Software Co., Ltd. and Nomura International[71]. Risks and Challenges - The company has identified potential risks related to market competition and regulatory changes, which are detailed in the risk factors section of the report[4]. - The company faces risks related to reliance on the Japanese market and major clients, which could impact its operational performance[79][80]. - There is a risk of talent loss as the company relies heavily on skilled technical personnel for product development and innovation[83]. - The company anticipates increased competition in the software development industry as it transitions to cloud and mobile solutions, necessitating enhanced capabilities in product development and customer service[84]. Shareholder and Governance - The company held its annual general meeting on May 18, 2021, where all 12 proposals were approved without any dissenting votes[104]. - There are no plans for profit distribution or capital reserve transfer for the half-year period, with no dividends or stock bonuses proposed[106]. - The company has implemented a restricted stock incentive plan, which was approved during the annual general meeting on May 18, 2021[107]. - The company has established a system for managing related party transactions to ensure fairness and protect the rights of all shareholders[125]. - There were no significant lawsuits or arbitration matters during the reporting period[127]. Environmental and Social Responsibility - The company has not been listed as a key pollutant unit and has maintained a strong focus on environmental protection, producing no industrial waste during the reporting period[110]. - There were no administrative penalties related to environmental issues during the reporting period[111].