Join-Cheer(SZ:002279)2023-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2023 was ¥1,089,235,036.11, a decrease of 9.03% compared to ¥1,197,366,363.82 in the same period last year[25]. - The net profit attributable to shareholders of the listed company was a loss of ¥68,330,235.23, compared to a loss of ¥29,639,339.64 in the previous year[25]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of ¥82,210,980.54, compared to a loss of ¥32,159,909.95 in the same period last year[25]. - The basic and diluted earnings per share were both -¥0.0789, compared to -¥0.0417 in the previous year[25]. - The total assets at the end of the reporting period were ¥2,511,180,784.29, a decrease of 9.39% from ¥2,766,240,446.84 at the end of the previous year[25]. - The net assets attributable to shareholders of the listed company were ¥1,695,552,077.55, a decrease of 3.33% from ¥1,753,343,888.67 at the end of the previous year[25]. - The weighted average return on net assets was -3.97%, compared to -3.28% in the previous year[25]. - The net cash flow from operating activities was -¥188,803,866.92, compared to -¥189,762,049.11 in the previous year[25]. - The company's revenue for the reporting period was ¥1,089,235,036.11, a decrease of 9.03% compared to ¥1,197,366,363.82 in the same period last year[61]. - The company's operating costs decreased by 11.97% to ¥809,419,572.15 from ¥919,514,550.26 year-on-year[61]. - The company’s net profit showed a loss of ¥246,307,612.68, worsening from a loss of ¥177,977,377.45 in the previous period[70]. Operational Developments - The company currently does not foresee significant operational risks but acknowledges potential macroeconomic and policy risks[6]. - The company is focusing on integrating data resources to support scientific decision-making for government clients[36]. - The company is enhancing its internal control management platform to meet the internal management needs of budget units[40]. - The management software business generated revenue of 316.96 million yuan, a year-on-year decrease of 3.77%[42]. - The company signed contracts for budget management integration projects with 9 provincial administrative units, enhancing fiscal management efficiency[43]. - The unified reporting system now supports 10 departments and 29 statistical businesses, covering nearly one million users nationwide[44]. - The company completed the acceptance of the comprehensive transportation development decision support information system for the Ministry of Transport[45]. - The company established deep cooperation with over 10 vocational colleges to promote industry-education integration projects[46]. - The electronic file system and element-based trial system have been deployed in various courts, including Shandong and Sichuan provinces[47]. - The company is advancing the digital transformation of fiscal supervision through the development of a new internal control management platform[44]. - The company is actively promoting the integration of financial and operational systems in the airport sector, collaborating with major airports[45]. Research and Development - The company has accumulated a total of 1,189 software copyrights and 49 patents, enhancing its competitive edge[56]. - The company has successfully developed new products and solutions, including a new generation internal control management platform and a comprehensive application platform for electronic vouchers[57]. - The company has initiated research on large models to enhance its core competitiveness in the legal AI field[41]. - The company is focusing on cost control measures, as evidenced by the reduction in total operating costs despite a decline in revenue[177]. - Research and development expenses increased to ¥149,570,735.62, up from ¥129,401,850.88, reflecting a focus on innovation[177]. - The company has allocated 72.50 million RMB for research and development in the first half of 2023, which is a significant investment aimed at innovation and technology advancement[195]. Strategic Initiatives - The company plans not to distribute cash dividends or issue bonus shares[7]. - The company plans to enhance its overseas marketing efforts and improve accounts receivable management in response to international market changes[72]. - The company is actively pursuing legal measures regarding the Shanghai Yitong case to recover losses, with ongoing litigation to safeguard its rights[99]. - The company aims to leverage opportunities in the digital economy and enhance project delivery management to mitigate macroeconomic and policy risks[93]. - The company has initiated a stock incentive plan, granting 8,294,433 restricted shares at a price of 2.50 yuan per share to 211 recipients[106]. - The company is focused on integrating existing and emerging technologies to enhance product competitiveness amid increasing industry competition driven by advancements in cloud computing, big data, IoT, and AI[94]. Shareholder and Financial Management - The company emphasizes the protection of shareholder and creditor rights, enhancing risk management and internal control systems to lower operational risks[113]. - The company has implemented a competitive and diversified compensation and benefits system to enhance employee satisfaction and well-being[114]. - The company maintains good communication with creditors and adheres strictly to contractual obligations to mitigate financial risks[113]. - The company has not engaged in any significant related party transactions during the reporting period[129]. - The company has a significant amount of undistributed profits, amounting to 10,084.1 million, which could be reinvested for future growth[199]. - The total owner's input and capital reduction were recorded at 0, suggesting no capital reduction activities during the period[199]. Legal and Compliance Issues - The company is involved in an administrative lawsuit against the Beijing Haidian District Taxation Bureau, claiming a refund of taxes amounting to ¥48.15 million (approximately $4.81 million) due to a tax notification issued by the tax authority[127]. - The company initiated arbitration against Hong Kong Yitong for the return of ¥200.47 million (approximately $20.05 million) related to a share transfer cash payment, which has since been withdrawn[127]. - During the reporting period, the company resolved non-major lawsuits with a total amount of ¥60.17 million (approximately $6.02 million), with settlements or victories amounting to ¥59.42 million (approximately $5.94 million)[127]. - The company has not reported any major litigation or arbitration matters that could impact its financial position[128]. Market Position and Future Outlook - The company has launched a new interactive experience component library to improve product usability[34]. - The company is continuously optimizing its new agile business development platform, the Nuwa platform, to enhance product functionality and security[34]. - The company has reported a significant increase in user data, with a growth rate of approximately 35% in active users compared to the previous year[198]. - The company plans to expand its market presence through strategic partnerships and potential acquisitions in key growth areas[198]. - The company is focusing on enhancing its digital transformation initiatives to improve operational efficiency and customer engagement[198].