KINGSUN(SZ:300235)2021-08-26 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥50,124,185.51, representing a 2.20% increase compared to ¥49,046,151.84 in the same period last year[19]. - The net profit attributable to shareholders decreased by 38.90% to ¥10,350,781.48 from ¥16,940,577.36 in the previous year[19]. - The net profit after deducting non-recurring gains and losses fell by 46.74% to ¥7,327,093.66 compared to ¥13,757,453.69 in the same period last year[19]. - Basic and diluted earnings per share both decreased by 40.00% to ¥0.06 from ¥0.10 in the same period last year[19]. - The weighted average return on equity dropped to 1.58%, down by 1.09% from 2.67% in the previous year[19]. - The company achieved operating revenue of 50.12 million yuan in the first half of 2021, representing a stable growth of 2.20% year-on-year[29]. - The net profit attributable to shareholders of the listed company was 10.35 million yuan, a decrease of 38.9% compared to the same period last year[29]. - The company reported a total profit of CNY 13,445,012.90, down 28.5% from CNY 18,763,619.78 in the previous year[159]. - The company’s total comprehensive income for the first half of 2021 was CNY 10,270,862.91, a decrease from CNY 16,906,113.27 in the previous year[160]. - The company reported a decrease in retained earnings by CNY 10,160,881.64 due to profit distribution[182]. Cash Flow and Investments - The net cash flow from operating activities was negative at -¥2,701,585.54, a decline of 574.16% from -¥400,736.52 in the previous year[19]. - The total cash inflow from investment activities was 141,317,141.66 CNY, while cash outflow was 170,559,438.97 CNY, resulting in a net cash flow from investment activities of -29,242,297.31 CNY[168]. - The company reported a cash balance of 278,336,166.37 CNY at the end of the first half of 2021, down from 319,510,759.17 CNY at the beginning of the period[168]. - The total cash outflow for operating activities was 77,402,216.92 CNY, compared to 65,767,035.10 CNY in the first half of 2020, reflecting increased operational expenses[168]. - The company incurred a net cash flow from financing activities of -9,230,709.95 CNY in the first half of 2021, compared to a positive cash flow of 4,304,082.70 CNY in the same period of 2020[168]. Assets and Liabilities - Total assets at the end of the reporting period were ¥670,001,821.75, a decrease of 1.28% from ¥678,658,437.04 at the end of the previous year[19]. - The total amount raised from fundraising was ¥22,799.72 million, with ¥586.13 million invested during the reporting period[67]. - The total liabilities and owner's equity at the end of the reporting period is CNY 650,456,593.47, indicating a solid financial position[181]. - Current liabilities decreased from CNY 29,241,996.53 to CNY 19,140,854.52, a reduction of about 34.7%[151]. - Non-current liabilities decreased from CNY 29,241,996.53 to CNY 404,373.76, a significant drop of approximately 98.6%[151]. Research and Development - Research and development investment surged by 81.71% to ¥14,030,058.10, up from ¥7,721,221.54 in the previous year, reflecting the company's commitment to innovation[55]. - The company continued to develop AI-based interactive proprietary courses to meet diverse learning needs of students[33]. - The company invested in talent acquisition and professional development to strengthen its workforce across key areas such as product, research, operations, and channels[33]. - Fangzhitech is focusing on expanding its product offerings beyond core subjects like English, Math, and Chinese, to include various disciplines such as Information Technology and Science, aiming for a balanced development across subjects[83]. - The company plans to enhance its research and development efforts, particularly in synchronous education services, to maintain its competitive edge in the rapidly evolving education technology landscape[84]. Market Strategy and Operations - The company enhanced its marketing channels by adopting a dual development model of direct sales and agency cooperation, focusing on major cities like Shenzhen, Guangzhou, and Beijing[31]. - The company has adopted a market strategy focusing on first-tier cities before expanding to second and third-tier cities and rural areas, aiming to capture higher market share[1]. - The company is focused on creating a comprehensive educational application ecosystem that connects various stakeholders, including teachers, students, and parents[46]. - The company plans to respond proactively to national policies that encourage online education and educational informationization, ensuring alignment with government directives[43]. - The company has established partnerships with leading firms like Huawei, Tencent, and Xiaomi to enhance digital education content operations and marketing[31]. Corporate Governance and Compliance - The company has not encountered any major changes in the feasibility of the adjusted projects[74]. - The company has not faced any environmental penalties and adheres strictly to environmental protection laws, indicating a commitment to corporate social responsibility[97]. - The company actively fulfills its corporate social responsibility, ensuring compliance with laws and regulations while creating value for shareholders[98]. - The company has made commitments to avoid conflicts of interest and ensure the protection of shareholder rights[101]. - The company has not reported any changes in accounting policies or prior period error corrections during this reporting period[185]. Shareholder Information - The total number of shareholders at the end of the reporting period was 20,788[134]. - The total number of shares before the change was 167,831,090, with 32.78% being restricted shares and 67.22% being unrestricted shares[129]. - The number of restricted shares decreased by 2,276,790, resulting in 52,744,639 restricted shares, which is 31.43% of the total[129]. - The number of unrestricted shares increased by 2,276,790, leading to a total of 115,086,451 unrestricted shares, which is 68.57% of the total[129]. - The company’s executives had a commitment to release 25% of their restricted shares annually, effective from January 1, 2021[130].