CSBM(SZ:000158)2021-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥4,088,638,731.74, representing a 13.42% increase compared to ¥3,605,000,162.72 in the same period last year[24]. - The net profit attributable to shareholders of the listed company was -¥55,447,237.06, a 35.16% improvement from -¥85,516,062.88 in the previous year[24]. - The basic earnings per share improved to -¥0.0347, up 35.14% from -¥0.0535 in the same period last year[24]. - The total assets at the end of the reporting period were ¥14,192,948,846.23, a decrease of 4.72% from ¥14,895,395,761.91 at the end of the previous year[24]. - The net assets attributable to shareholders of the listed company were ¥5,962,404,954.75, down 0.89% from ¥6,015,987,716.81 at the end of the previous year[24]. - The net cash flow from operating activities was -¥374,233,407.05, a significant decline compared to ¥21,070,495.01 in the same period last year, reflecting a decrease of 1,876.10%[24]. - The weighted average return on net assets was -0.93%, an improvement from -1.46% in the previous year[24]. - The company reported a total non-operating income of 103,539,048.72 yuan, with significant losses from non-current asset disposal and other expenses[30]. Business Segments - The company's textile business achieved a revenue growth of 21.30% year-on-year, despite the impact of COVID-19, with a total profit reduction of 40.52%[33]. - The software business signed contracts worth 40% more than the same period last year, but revenue only grew by 4.23% due to project implementation timelines[33]. - The overall revenue of the textile industry in China increased by 20.3% year-on-year, with a profit total of 1,078.9 billion yuan, reflecting a 41.1% increase[35][37]. - The company increased its R&D investment significantly, with a rise of 37.5 million yuan compared to the previous year, impacting net profit[33]. - The textile industry saw an increase in production capacity utilization, with over half of the industrial sectors achieving a growth rate of over 10%[35]. - The company is focusing on developing differentiated functional fiber fabrics and color-spun products to enhance order acquisition capabilities[33]. - The software and information technology services sector is benefiting from policies promoting industrial internet and digital transformation, creating new market opportunities[34]. Customer and Market Engagement - The company maintains a direct sales model and emphasizes marketing through industry exhibitions and client engagement to enhance customer relationships[34]. - The company has established a broad and stable customer base, including major clients in the financial sector such as China Life and China Agricultural Bank, as well as in the judicial field and various industries like energy and transportation[39]. - The company has successfully implemented PPP projects in smart city construction, including the Guangzhou Electronic Government Cloud and the Changsha Wangcheng Smart City project, leveraging partnerships with industry giants like Huawei and Tencent[40]. - The company has developed an innovative ODR platform for online dispute resolution, integrating AI and big data to create a new model for social governance and conflict resolution, which is expected to have significant application prospects[40]. Innovation and Development - The company has extensive experience in big data applications across various sectors, including smart prison management and financial risk control, showcasing its deep research capabilities in data analysis[41]. - The company has a strong talent team with a stable management structure, which enhances its ability to capture market opportunities and ensures effective service delivery to clients[44]. - The company holds multiple important qualifications, including national software enterprise status and CMMI Level 5 certification, which provide a solid foundation for future development[45]. - The company has a robust innovation mechanism for new product development, focusing on low-carbon and sustainable technologies in the textile sector[46]. - The company has achieved various international certifications, including ISO9000 and GOTS, which enhance its management standards and global competitiveness[46]. - The company has a rich historical legacy in the textile industry, known for high-quality production and strong brand recognition[46]. Financial Position and Liabilities - Cash and cash equivalents decreased to ¥1,720,272,754.89, accounting for 12.12% of total assets, down from 15.70% last year, primarily due to increased procurement payments[83]. - Accounts receivable increased to ¥1,926,859,754.33, representing 13.58% of total assets, up from 12.05% last year, indicating improved sales performance[83]. - Inventory rose to ¥2,615,111,311.39, making up 18.43% of total assets, compared to 16.23% last year, attributed to increased product dispatch[83]. - Short-term borrowings increased to ¥2,932,172,124.27, representing 20.66% of total assets, up from 18.37% last year, due to additional short-term loans[83]. - Contract liabilities increased to ¥537,398,897.36, accounting for 3.79% of total liabilities, reflecting growth in customer prepayments[83]. - The company reported a significant decrease in investment amount to ¥40,372,940.88, down 81.33% from ¥216,287,270.61 in the same period last year[89]. - The company has ongoing investments in the cloud data center project, with a total investment of ¥705,737,763.98, and an expected return of ¥135,580,000.00[89]. Risk Management - The company has identified potential risks and corresponding countermeasures in its report, which can be found in the management discussion and analysis section[5]. - The company faced a risk of talent shortage in software business expansion, particularly in AI and big data analysis, and plans to recruit high-end talent through headhunting firms[101]. - The company has implemented risk management measures for foreign exchange derivative transactions to mitigate market, liquidity, and operational risks[96]. Shareholder Information - The total number of shares is 1,598,616,721, with 98.65% being unrestricted shares[155]. - The total number of common shareholders at the end of the reporting period was 201,062, with a significant shareholder, Shijiazhuang Changshan Textile Group Co., Ltd., holding 28.48% of shares[160]. - The company reported a total of 455,296,184 shares held by Shijiazhuang Changshan Textile Group Co., Ltd., which is pledged with 169,500,000 shares[160]. - The total shares held by Beijing Beiming Weiye Holdings Co., Ltd. amounted to 196,317,657, also pledged with 75,669,998 shares[160]. - The total number of shares held by the top ten unrestricted shareholders was 1,000,000,000, with no repurchase transactions during the reporting period[169]. Compliance and Governance - The financial report for the first half of 2021 was not audited[179]. - The company has achieved compliance with environmental standards, with all waste emissions meeting regulatory requirements during the reporting period[111]. - The company has not faced any major litigation or arbitration matters during the reporting period[122].