SZZT(SZ:002197)2021-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2021 was CNY 526,332,486.25, representing a 7.93% increase compared to CNY 487,680,201.58 in the same period last year[23]. - The net profit attributable to shareholders was CNY 16,853,442.20, a significant increase of 49.18% from CNY 11,297,577.76 year-on-year[23]. - The net profit after deducting non-recurring gains and losses surged by 586.83% to CNY 2,027,157.87, compared to CNY 295,145.72 in the previous year[23]. - The basic earnings per share rose by 50.00% to CNY 0.03 from CNY 0.02 in the same period last year[23]. - The weighted average return on net assets increased to 0.69% from 0.47% year-on-year[23]. - The company reported a net cash flow from operating activities of CNY 84,886,406.52, a slight decrease of 0.41% compared to CNY 85,235,125.58 in the previous year[23]. - The company achieved operating revenue of 52,633.25 million CNY, a year-on-year increase of 7.93%[34]. - Net profit attributable to shareholders was 1,685.34 million CNY, up 49.18% compared to the same period last year[34]. - The company reported a revenue of 71.05 million yuan from its subsidiary Changsha Zhengtong Cloud, representing a 97.48% increase year-over-year, with a net profit of 11.73 million yuan, up 148.35%[75]. - The company reported a total of 8.92 million yuan in actual transactions with related parties for property management services, which is within the estimated range of 50 million yuan for the year 2021[108]. Risk Management - The company faces risks including macroeconomic uncertainty, intensified industry competition, cash flow risks, and depreciation of new fixed assets[5]. - The report includes a section on risk management and response strategies[5]. - The company emphasizes the importance of investor awareness regarding investment risks[5]. - The company faces increased risks from macroeconomic uncertainties, requiring enhanced emergency response measures and risk management strategies to ensure stable business operations[79]. - The company emphasizes cash flow management to mitigate risks associated with accounts receivable, particularly in light of potential customer credit issues[81]. Investments and Projects - The company has invested in three industrial parks and seven energy-efficient data centers in the Guangdong-Hong Kong-Macao Greater Bay Area and central regions, focusing on IDC and cloud computing services[31]. - The company aims to provide integrated solutions in IDC and cloud computing, leveraging its cloud platform to support various services including smart city applications and artificial intelligence[32]. - The company is committed to expanding its cloud services and enhancing its capabilities in smart city projects, integrating lighting technology with its existing services[32]. - The company is actively developing new financial technology products, including facial recognition payment terminals and smart POS systems, with a focus on reducing development cycles[39]. - The company is focusing on expanding its IDC and cloud computing services, with ongoing projects aimed at enhancing infrastructure for smart cities and related services[76]. Financial Technology and Market Trends - The "Blockchain-based Digital Currency Smart Payment Terminal Key Technology R&D Project" received funding from the Shenzhen Science and Technology Innovation Commission[39]. - The global POS terminal market is expected to see a shipment of approximately 130 million units in 2021, with significant growth anticipated in the coming years[43]. - The Chinese digital currency project is expected to drive substantial demand for payment terminals, leading to a market shift towards smart terminals that support digital currency[43]. - The company is expanding its "IDC+" business model, providing customized cloud service solutions to enhance profitability in smart city applications[38]. Corporate Governance and Compliance - The board of directors and management guarantee the accuracy and completeness of the financial report[4]. - The report indicates that all directors attended the board meeting to review the report[5]. - The financial report is signed and stamped by the legal representative and accounting personnel[11]. - The report is available for public inspection at the company's board office[11]. - The semi-annual financial report was not audited[103]. - The company did not experience any bankruptcy reorganization during the reporting period[104]. - There were no major litigation or arbitration matters during the reporting period[105]. - The company reported no penalties or rectification measures during the reporting period[107]. Shareholder and Equity Information - The company plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves[6]. - The company has implemented an employee stock ownership plan, transferring 7,802,746 shares, representing 1.51% of the total share capital, to the employee stock ownership plan account[89]. - The total number of shares is 515,156,948, with 84.45% being unrestricted shares[132]. - The largest shareholder, Zeng Shengqiang, holds 20.32% of shares, totaling 104,677,171 shares[134]. - The total equity attributable to shareholders increased to CNY 2,463,994,954.21 from CNY 2,417,099,818.38, reflecting a growth of about 1.9%[150]. Financial Position and Assets - The company's total assets increased by 2.24% to CNY 6,636,368,455.26 from CNY 6,490,824,824.60 at the end of the previous year[23]. - The company's total liabilities reached CNY 4,174,772,941.56, up from CNY 4,068,148,345.26, indicating an increase of approximately 2.6%[149]. - The company's cash and cash equivalents increased to ¥615,064,931.22 as of June 30, 2021, up from ¥540,915,371.29 at the end of 2020, representing a growth of approximately 13.8%[147]. - The company's inventory was valued at 150.18 million, representing 2.26% of total assets, with a slight increase from the previous year[57]. - The company's long-term borrowings stood at 2.09 billion, making up 31.55% of total liabilities, a slight decrease from 32.11%[59]. Social Responsibility and Environmental Commitment - The company actively fulfills its social responsibility while ensuring shareholder and creditor interests, emphasizing economic benefits, social contributions, and environmental friendliness[93]. - The company has obtained ISO14001 certification for its environmental management system, promoting energy conservation and environmental protection across all business sectors[96]. - The company supports rural revitalization by developing smart financial payment terminals and services to enhance financial services in rural areas[97].