Westone(SZ:002268)2023-08-29 16:00Business Operations - The company operates in communication security, information security, and electronic information technology products development, production, and sales[1]. - The company is involved in various electronic information technology sectors, including wireless communication systems and microcomputer systems[1]. - The company has established a comprehensive data security capability supply system and ecosystem, focusing on data security services across various industries[190]. - The company is actively participating in data security governance projects in the government sector, utilizing AI technology for data management and protection[194]. - The company has developed a data security compliance service platform aimed at internet enterprises, providing encryption, desensitization, and compliance auditing services[192]. - The company aims to enhance data flow transparency and compliance through its encryption and de-identification services[192]. - The company has a focus on developing new technologies and products related to data security and privacy protection[190]. - The company plans to continue expanding its market presence and investing in new technologies to enhance its competitive edge in the cybersecurity sector[70]. Financial Reporting and Accounting - Financial statements are prepared based on the going concern principle and in accordance with the accounting standards issued by the Ministry of Finance[2]. - The company classifies financial assets based on the business model, with specific criteria for measuring at amortized cost or fair value[11]. - Financial liabilities are classified at initial recognition and are not subject to reclassification[11]. - The company recognizes its share of assets and liabilities in joint operations according to relevant accounting standards[8]. - The company has a structured approach to accounting for joint ventures and joint operations, ensuring compliance with accounting standards[8]. - The company’s financial instruments are initially recognized at fair value, with subsequent measurement depending on their classification[11]. - The company does not retroactively adjust previously recognized gains or losses when reclassifying financial assets[11]. - The company recognizes expected credit losses for financial assets measured at amortized cost and those measured at fair value through other comprehensive income[13]. - The company assesses expected credit losses based on past events, current conditions, and reasonable forecasts of future economic conditions[14]. - The company categorizes financial instruments into different groups based on common credit risk characteristics for loss assessment[14]. - Changes in the accounting treatment of equity investments are based on the level of control or influence exerted by the company over the investee[19]. Credit Risk and Impairment - The management estimates expected credit losses for accounts receivable and other receivables, impacting their carrying value[4]. - If the credit risk of a financial instrument has not significantly increased since initial recognition, the loss allowance is measured at an amount equal to 12-month expected credit losses[13]. - For financial instruments where credit risk has significantly increased but not yet resulted in a credit loss, the loss allowance is measured at the lifetime expected credit losses[13]. - The company assesses whether the credit risk has significantly increased by comparing the risk of default at the reporting date with that at initial recognition[13]. - The company recognizes impairment losses or gains in the current profit or loss based on changes in expected credit losses[13]. - Evidence of credit impairment includes significant financial difficulties of the issuer or debtor, contract violations, and potential bankruptcy[14]. - The company measures expected credit losses by the present value of the difference between contractual cash flows and expected cash flows[14]. - The company will reverse previously recognized impairment losses if the factors leading to impairment change and the asset's value exceeds its carrying amount[17]. - The company will directly write down the carrying amount of financial assets when it no longer expects to recover cash flows[14]. - The company has recognized an impairment provision of CNY 1,153,643,260.49, indicating a proactive approach to managing potential credit risks[75]. Financial Position and Performance - The company's total receivables at the end of the period amounted to CNY 1,181,403,553.64, with CNY 769,427,738.14 (approximately 65.1%) due within one year[45]. - The aging analysis of receivables shows that 76.00% of the receivables due within one year are CNY 43,239,018.96, while 21.45% of receivables over three years amount to CNY 12,208,616.00[48]. - The company reported a total of CNY 483,720,397.81 in commercial acceptance bills at the end of the period, down from CNY 607,746,922.91 at the beginning of the period, indicating a decrease of approximately 20.4%[40]. - The company’s cash and cash equivalents at the end of the period totaled CNY 8,318,661.89, down from CNY 10,554,987.36 at the beginning of the period, reflecting a decrease of approximately 21.0%[39]. - The company reported a cash balance of CNY 2,363,297,001.72 at the end of the period, up from CNY 2,111,850,455.98 at the beginning, indicating a growth of 11.9%[68]. - The total inventory value was CNY 8,552,277.22, with a notable increase in raw materials to CNY 101,237,645.01, representing a 25.5% increase[55]. - The total amount of other receivables decreased to CNY 52,012,555.05 from CNY 64,621,609.93, showing a reduction of 19.5%[78]. - The company’s total liabilities include lease liabilities, which are recognized when there is a present obligation that is likely to result in an outflow of economic benefits[28]. - The total assets reached CNY 513,995,210.68, with a significant increase in contract performance costs to CNY 250,488,124.86, reflecting a growth of 50.1% compared to the previous period[55]. - The total amount of contract performance costs at the end of the period is 50,091,554.53 CNY, with a decrease of 14,351,585.96 CNY during the period[84]. - The total balance of goodwill remained unchanged at ¥7,991.91 throughout the period[122]. - The total balance of accounts payable at the end of the period is ¥90,806,596.48, an increase from ¥37,601,051.69 at the beginning of the period[158]. - The company reported a total revenue of 14,391,709.60 CNY from government subsidies closely related to its normal business operations[188]. - The company recorded a total of 23,034,812.83 CNY in net income after tax impacts and minority interests[188]. Investments and Capital Expenditures - The company applies a cost method for long-term equity investments where it can exert control, and recognizes investment income based on declared dividends[18]. - For joint ventures and associates, the equity method is used, adjusting the investment value based on the share of net profits and other comprehensive income[18]. - The company’s investment in joint ventures and associates totaled CNY 88,987,496.72, with a decrease in investment income of CNY 2,337,302.63[59]. - The construction in progress balance was CNY 1,163,097,398.37, with a significant portion allocated to the Beijing cybersecurity production and R&D project[64]. - The company has capitalized interest of 19,283,814.32 CNY in the construction projects[92]. - The total amount of other payables at the end of the period is ¥40,054,000.30, an increase from ¥37,601,051.69 at the beginning[159]. Employee Compensation and Benefits - The total employee compensation payable at the end of the period was ¥10,195,195.00, slightly up from ¥10,121,438.70 at the beginning of the period[110]. - The total amount of employee compensation payable at the end of the period is ¥11,155,739.39, up from ¥10,228,435.61 at the beginning of the period[154]. - The company’s basic pension insurance payable at the end of the period is ¥114,271.64, slightly up from ¥103,754.60 at the beginning[132]. - The company’s unemployment insurance payable at the end of the period is ¥3,571.15, up from ¥3,242.31 at the beginning[132]. - The total balance of short-term employee benefits increased to ¥10,195,195.00 from ¥10,121,438.70[154]. Taxation and Deferred Taxes - The total deferred tax assets at the end of the period amounted to ¥1,297,306,407.84, an increase from ¥1,066,004,957.10 at the beginning of the period, representing a growth of approximately 22%[104]. - The total deferred tax liabilities at the end of the period were ¥62,280,076.48, with a corresponding deferred tax liability of ¥9,342,011.47[126]. - The company has reported a decrease in deductible input tax from 51,042,782.83 CNY at the beginning of the period to 46,539,895.02 CNY at the end[86]. - The company has a total of ¥46,689,920.70 in tax payable at the end of the period, compared to ¥80,110,660.62 at the beginning[158]. Dividends and Capital Management - The company plans to not distribute cash dividends or bonus shares, nor to increase capital from reserves[95]. - The total balance of dividends payable is ¥50,752,596.18, with no initial balance reported[158].