eGOVA(SZ:300075)2023-08-24 16:00Financial Assets and Liabilities - The company categorizes financial assets into three types: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in profit or loss[1]. - Debt instruments held by the company include cash, notes receivable, accounts receivable, contract assets, and long-term receivables, with interest income recognized using the effective interest method[3]. - Financial liabilities are primarily measured at amortized cost, including notes payable, accounts payable, and borrowings, with initial measurement at fair value less transaction costs[54]. - The company terminates recognition of financial liabilities when the current obligations are fully or partially discharged, with the difference between the carrying amount and the consideration paid recognized in profit or loss[57]. - The fair value of financial instruments is determined using observable inputs from active markets when available, or valuation techniques when not[58]. - Interest income is recognized using the effective interest method based on the carrying amount of financial assets[58]. Credit Risk and Expected Credit Losses - The company assesses expected credit losses based on historical data, current conditions, and forecasts of future economic conditions, applying a probability-weighted approach to calculate the present value of cash flow differences[9]. - The company evaluates credit risk for financial instruments at each reporting date, determining if there has been a significant increase in credit risk since initial recognition[10]. - The company assesses default probability based on historical credit loss models, adjusted with forward-looking information to reflect current macroeconomic conditions[46]. - The expected loss rate for defaults varies based on the type of counterparty, recourse methods, and collateral, calculated as a percentage of the risk exposure at default[46]. - The company categorizes receivables into several portfolios based on credit risk characteristics, including commercial and bank acceptance bills, to calculate expected credit losses[46][49]. - For other receivables, the company uses historical credit loss experience and current conditions to estimate expected credit losses over the next 12 months or the entire duration[49]. - The company conducts impairment tests for financial assets showing objective evidence of impairment, recognizing expected credit losses and adjusting provisions accordingly[50]. - The company incurred a credit impairment loss of ¥12,343,782.16, which is 8.36% of total revenue, mainly due to bad debt provisions[64]. Revenue and Profitability - The company's operating revenue for the reporting period was ¥738,217,385.43, representing a year-on-year increase of 3.90% compared to ¥710,528,126.06 in the same period last year[39]. - The gross profit margin for the system software business was 62.38%, with a year-on-year revenue increase of 31.95%[40]. - The gross profit margin for the smart city management sector was 43.18%, with a slight increase of 2.36% compared to the previous year[62]. - System software business revenue was ¥389,906,987.54, showing a significant year-on-year growth of 31.95%[62]. - The operating revenue from the northern region was ¥367,455,966.93, reflecting a substantial increase of 67.44% year-on-year[62]. - The company reported a net cash flow from operating activities of -¥109,568,329.73, an improvement of 30.52% compared to -¥157,688,915.91 in the previous year[39]. - The company did not report any significant changes in profit composition or sources during the reporting period[61]. Investments and Projects - The total investment during the reporting period was ¥30,000,000, marking a 31.87% increase compared to the same period last year[71]. - The total committed investment amount for the smart city comprehensive management service platform project is CNY 175.56 million, with a cumulative investment of CNY 136.79 million, achieving a progress rate of 77.92%[76]. - The total committed investment for the IoT-based smart drainage comprehensive supervision and operation integration platform is CNY 131.87 million, with a cumulative investment of CNY 55.12 million, achieving a progress rate of 41.80%[76]. - The total committed investment for the multi-network integrated social governance information platform project is CNY 122.58 million, with a cumulative investment of CNY 72.92 million, achieving a progress rate of 59.49%[78]. - The total committed investment for the supplementary working capital project is CNY 155.86 million, with a cumulative investment of CNY 155.86 million, achieving a 100% progress rate[78]. - The total committed investment for all projects amounts to CNY 585.86 million, with a cumulative investment of CNY 420.69 million[78]. - The company has achieved benefits of CNY 1,628.21 million from the smart city project and CNY 177.37 million from the IoT drainage project[76]. - The company has confirmed that all projects have not undergone significant changes in feasibility[76]. - There are no changes in the use of raised funds, and the remaining funds will continue to be used for committed investment projects[80]. - The company has not reported any issues or other situations regarding the use and disclosure of raised funds[80]. - The company has not experienced any significant changes in the feasibility of the projects or the expected benefits[78]. Research and Development - The company’s R&D investment increased by 5.99% to ¥60,365,752.04 from ¥56,952,321.22 year-on-year[39]. - The company has successfully constructed over 5,000 smart city-related projects, serving a population of over 550 million and covering more than 70% of the urban built-up area in China[29]. - The company holds 79 invention patents and over 400 software copyrights, showcasing its strong intellectual property portfolio[28]. - The company has obtained 6 new patents during the reporting period, further enhancing its technological innovation capabilities[36]. - The company has actively integrated new technologies such as IoT, big data, and AI into urban management, reflecting its commitment to innovation in smart city development[107]. Market Position and Competition - The company has been recognized as the top player in the smart city management sector for several consecutive years, indicating high market recognition[29]. - The company faces risks related to reliance on government procurement, as sales primarily come from government contracts, which may be affected by fiscal tightening[151]. - The company is experiencing intensified market competition in the smart city sector, which could impact market share and profit margins if it fails to maintain technological leadership[151]. Corporate Governance and Compliance - The company chairman and actual controller, Wu Qianghua, committed to not transferring, mortgaging, or pledging shares within 36 months from the date of the company's IPO[193]. - The company held its first extraordinary general meeting in 2023 with an investor participation rate of 24.27% on April 3, 2023[200]. - The second extraordinary general meeting in 2023 had a higher investor participation rate of 28.15% on June 15, 2023[200]. - The company has made commitments regarding stock option incentive plans, ensuring no financial assistance is provided to incentive objects[196]. - All commitments made by the company have been fulfilled without any violations during the reporting period[196]. - The company did not experience any changes in its board of directors, supervisors, or senior management during the reporting period[200]. - The company has maintained compliance with relevant laws and regulations to avoid conflicts of interest in related transactions[193]. - The company’s stock option incentive plan was implemented without any financial support to the incentive objects[196]. - The company’s commitment to avoid preferential treatment in transactions has been upheld[196]. - The company’s performance and commitments have been regularly disclosed in accordance with market regulations[193]. Assets and Financial Management - The company's cash and cash equivalents at the end of the reporting period amounted to approximately 591.39 million CNY, representing 12.11% of total assets, a decrease of 19.60% compared to the previous year[111]. - Accounts receivable increased to approximately 1.81 billion CNY, accounting for 36.99% of total assets, an increase of 4.41% year-on-year[111]. - The company reported a significant increase in trading financial assets to approximately 999.50 million CNY, representing 20.47% of total assets, an increase of 15.98% year-on-year[111]. - The company’s investment properties decreased to approximately 39.75 million CNY, accounting for 0.81% of total assets, a slight decrease from the previous year[111]. - The total amount of restricted assets at the end of the reporting period was ¥41,829,164.31, primarily due to bank financing collateral[70]. - The total amount of entrusted financial products managed by Zhongtai Securities is 1,000 million, with a guaranteed return of 2.00% and an actual return of 0.71 million, which has not been redeemed[179]. - The total amount of entrusted financial products managed by Huatai Securities is 2,000 million, with a guaranteed return of 5.10% and an actual return of 50.58 million, which has not been redeemed[179]. - The total amount of entrusted financial products managed by Minsheng Bank is 10,000 million, with a guaranteed return of 3.80% and an actual return of 296.71 million, which has not been redeemed[179]. - The total amount of entrusted financial products managed by CITIC Bank is 30,000 million, with a guaranteed return of 3.80% and an actual return of 1,065.04 million, which has not been redeemed[179]. - The total amount of entrusted financial products managed by Zhongtai Securities is 372.08 million, with a guaranteed return of 2.75% and an actual return of 2.58 million, which has not been redeemed[176]. - The total amount of entrusted financial products managed by Huatai Securities is 9,000 million, with a guaranteed return of 3.60% and an actual return of 160.67 million, which has not been redeemed[179]. - The total amount of entrusted financial products managed by Minsheng Bank is 30,000 million, with a guaranteed return of 4.20% and an actual return of 1,152.99 million, which has not been redeemed[179]. - The total amount of entrusted financial products managed by Zhongtai Securities is 387.23 million, with a guaranteed return of 2.75% and an actual return of 2.68 million, which has not been redeemed[176]. - The total amount of entrusted financial products managed by Zhongtai Securities is 270.47 million, with a guaranteed return of 2.75% and an actual return of 1.87 million, which has not been redeemed[176]. - The total amount of entrusted financial products managed by Zhongtai Securities is 36.56 million, with a guaranteed return of 2.00% and an actual return of 0.03 million, which has not been redeemed[176].