NETSUN(SZ:002095)2022-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2022 was ¥244,944,664.92, a decrease of 13.95% compared to ¥284,661,799.09 in the same period last year[21]. - The net profit attributable to shareholders was ¥11,667,822.72, reflecting a slight increase of 2.15% from ¥11,421,758.23 year-on-year[21]. - The net profit after deducting non-recurring gains and losses was ¥5,988,830.69, down 32.09% from ¥8,818,361.50 in the previous year[21]. - The net cash flow from operating activities was -¥130,952,556.65, a decline of 126.61% compared to -¥57,787,937.88 in the same period last year[21]. - Total assets at the end of the reporting period were ¥1,539,055,890.05, a decrease of 4.84% from ¥1,617,283,488.52 at the end of the previous year[21]. - The weighted average return on equity was 1.26%, slightly up from 1.23% in the previous year[21]. - The company's revenue from the internet services sector was approximately 35.76 million, a decrease of 9.93% compared to the same period last year, with a gross margin of 95.02%[42]. - Supply chain business revenue reached approximately 201.77 million, down 15.35% year-over-year, with a gross margin of 0.90%[42]. - The total profit for the software industry in the same period was CNY 3,747 billion, showing a year-on-year growth of 1.9%, reversing from a decline of 1.4% in the previous period[30]. - The company reported a total operating revenue of CNY 244.94 million, a decrease of 13.95% compared to the same period last year[38]. Cash Flow and Investments - The net cash flow from investing activities dropped by 97.27% to approximately 1.75 million, primarily due to a decrease in investment recoveries[44]. - The net cash flow from financing activities increased by 166.27% to approximately 27.84 million, attributed to higher financing obtained during the period[44]. - The company's cash and cash equivalents decreased by 181.80% to approximately -101.48 million compared to the previous year[45]. - The net cash flow from operating activities was negative at approximately -130.95 million, a significant decrease of 126.61% compared to the previous year[44]. - The company reported a financial expense of CNY -6,762,716.00, an improvement from CNY -10,968,921.63 in the same period last year[123]. - The net cash flow from financing activities was 27,836,928.37 CNY, a recovery from -42,006,155.74 CNY in the previous year, indicating improved financing conditions[130]. Operational Strategy - The company plans to focus on the bulk raw materials sector, leveraging big data and supply chain finance to provide digital trade services[29]. - The company aims to accelerate the construction of its industrial internet infrastructure and provide transformation services for traditional enterprises[35]. - The company plans to strengthen cooperation with traditional markets and regional industrial clusters to enhance marketing efforts for quality clients[60]. - The company remains committed to developing products and services that enhance operational efficiency for small and medium-sized enterprises[70]. - The company plans to enhance its market expansion strategies and invest in new product development to drive future growth[135]. - The company aims to explore potential mergers and acquisitions to strengthen its market position and expand its service offerings[135]. Shareholder Information - The company does not plan to distribute cash dividends or issue bonus shares[5]. - The total number of shares outstanding is 252,720,000, with 99.59% being unrestricted shares[98]. - The company reported a decrease of 26,684 shares in restricted shares, resulting in a total of 1,011,585 restricted shares after the change[98]. - The largest holder of restricted shares, Lü Gang, had 106,736 shares initially, with 26,684 shares unlocked, leaving him with 80,052 shares[99]. - The company has not engaged in any significant related party transactions during the reporting period[79]. Risk Management - The company acknowledges the risk of increased credit risk for small and medium-sized enterprises, which may negatively impact financial services and traditional e-commerce services[60]. - The company will enhance internal control measures and establish a more robust internal control system to mitigate risks[60]. Financial Reporting and Compliance - The company's financial report for the first half of 2022 was not audited[113]. - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance, ensuring a true and complete reflection of the company's financial status, operating results, and cash flows[154]. - The company has confirmed its ability to continue as a going concern for at least 12 months from the reporting date[152]. Market Conditions - The software and information technology services industry in China showed stable growth in early 2022, with software business revenue increasing rapidly[29]. - Software business revenue for January to May reached CNY 36,184 billion, a year-on-year increase of 10.6%, with a slight decline of 0.2 percentage points compared to January to April[30]. - The company expects a gradual recovery in revenue growth in the second half of 2022, targeting a 5% increase compared to the first half[138].