Leascend(SZ:300051)2022-08-15 16:00Financial Performance - The company's operating revenue for the first half of 2022 was ¥90,006,174.90, a decrease of 8.52% compared to ¥98,390,276.31 in the same period last year[21]. - The net loss attributable to shareholders was ¥13,791,146.09, representing a significant increase of 550.52% from a loss of ¥2,120,034.81 in the previous year[21]. - The basic and diluted earnings per share were both -¥0.04, reflecting a 300% decline from -¥0.01 in the same period last year[21]. - The total assets at the end of the reporting period were ¥605,138,354.77, down 6.77% from ¥649,083,117.39 at the end of the previous year[21]. - The net assets attributable to shareholders decreased by 5.91% to ¥211,822,134.44 from ¥225,122,083.55 at the end of the previous year[21]. - The weighted average return on equity was -6.31%, a decrease of 5.44% compared to -0.87% in the previous year[21]. - The total profit was -12.7633 million yuan, and the net profit attributable to the parent company was -13.7911 million yuan, representing decreases of 492.08% and 550.52% year-on-year, respectively[44]. - The company's total comprehensive income for the first half of 2022 was a loss of ¥13,663,713.98, compared to a loss of ¥3,097,934.19 in the first half of 2021[189]. Cash Flow and Investments - The net cash flow from operating activities improved to ¥24,850,044.03, a substantial increase of 445.67% compared to ¥4,554,035.02 in the same period last year[21]. - The cash flow from investment activities improved by 80.54%, mainly due to reduced engineering payments by the subsidiary[53]. - The company experienced a 76.40% decrease in cash flow from financing activities, attributed to reduced interest-free loans and bank loan balances[53]. - The company reported a significant increase in cash received from operating activities, with CNY 49,444,154.46 in the first half of 2022, up from CNY 48,721,056.99 in 2021[196]. - The ending cash and cash equivalents balance decreased to CNY 28,981,228.55 from CNY 51,502,539.75 year-over-year[195]. Operational Highlights - The company has nearly 40,000 enterprise email domains as of June 30, 2022, primarily serving small and medium-sized enterprises[37]. - The company registered a total of 399,235 domain names, with a membership count of 37,091, holding a 1.6% market share in gTLD[37]. - The company has developed 7,555 websites for clients, with 5,413 active customers in its website construction business[38]. - The gaming segment, operated through a subsidiary, generated 98.35% of its total revenue from two main web game products in the first half of 2022[39]. - The company focuses on SaaS model services, providing integrated internet services to enhance brand image and security for its clients[32]. Market and Industry Context - The software and information technology service industry in China saw a revenue of CNY 4,626.6 billion in the first half of 2022, representing a year-on-year growth of 10.9%[31]. - The gaming industry in China experienced a revenue decline of 1.80% in the first half of 2022, indicating a shift towards a more competitive environment[33]. - The company faces various operational risks, particularly in its wholly-owned subsidiary, Shenzhen Daoxi Technology Co., Ltd., which focuses on online game development[5]. Strategic Initiatives - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company plans to closely monitor regulatory policies affecting its gaming business to ensure compliance and mitigate risks[47]. - The company aims to enhance its technological capabilities through ongoing R&D initiatives[81]. - The company has committed to investing 21,516 million in various projects, with 10,285 million allocated for acquisitions[81]. - The company is exploring potential mergers and acquisitions to strengthen its competitive position in the market[200]. Shareholder and Governance Matters - The company did not experience any administrative penalties related to environmental issues during the reporting period[116]. - The company held its annual general meeting with a participation rate of 36.14% on May 9, 2022[110]. - The company has not implemented any stock incentive plans or employee stock ownership plans during the reporting period[113]. - The company has completed the transfer of shares as per the share and debt transfer agreement signed on September 28, 2021[123]. - The company has committed to strictly adhere to market principles and fair pricing in all transactions with related parties[123]. Risks and Compliance - The company faces significant market competition risks in the software operation service industry, necessitating increased R&D investment and improved user experience to maintain market position[97]. - The company is actively monitoring regulatory changes in the domain business to mitigate risks from policy shifts affecting its operations[100]. - The company is adapting its business model to comply with stricter regulations in the mobile communication resale business, which may impact growth rates[101].