Feitian(SZ:300386)2021-07-26 16:00Financial Performance - The company's operating revenue for the first half of 2021 was CNY 316,616,895.51, a decrease of 10.10% compared to CNY 352,177,301.54 in the same period last year[24]. - The net profit attributable to shareholders was a loss of CNY 25,982,799.98, representing a decline of 201.58% from a profit of CNY 25,579,290.78 in the previous year[24]. - The net cash flow from operating activities was a negative CNY 171,545,896.09, worsening by 45.27% compared to a negative CNY 118,087,007.45 in the same period last year[24]. - The total assets at the end of the reporting period were CNY 2,034,339,248.34, a decrease of 0.70% from CNY 2,048,682,223.97 at the end of the previous year[24]. - The net assets attributable to shareholders decreased by 1.98% to CNY 1,840,000,006.81 from CNY 1,877,244,632.20 at the end of the previous year[24]. - The company reported a total of CNY 347,995,892.81 in trading financial assets, reflecting a 3.33% increase due to additional investments in financial products during the period[57]. - The company reported a total revenue of 190.78 million yuan for the first half of 2021, with a net profit of 49.8 million yuan[72]. - The company reported a total of CNY 54,134,379.60 in contract liabilities, which represents 2.66% of total assets[57]. - The company reported a total of 418,044,000 shares, with 180,272,350 shares subject to restrictions, representing 43.12% of total shares before the change[122]. Research and Development - The company plans to enhance research and development efforts to address increasing competition, despite the associated risks and rising costs[6]. - The company aims to conduct detailed market research prior to R&D activities to improve market judgment capabilities and manage development efficiency[6]. - Research and development expenses increased by 7.10% to CNY 43.69 million, primarily due to higher material and service costs[45]. - The company plans to enhance R&D and industrialization in the information security field, focusing on new scenarios such as 5G and blockchain[33]. - The company reported a strong focus on R&D, with numerous patents filed in 2020 and 2021, indicating a commitment to innovation and market leadership[38]. Market and Product Performance - The company faces risks related to market saturation for its USB Key and OTP products, leading to a decline in demand and pricing pressure[5]. - The company's USB Key products generated revenue of 125.94 million yuan, accounting for 39.78% of total revenue, a year-on-year decrease of 9.58%[31]. - Revenue from smart terminal systems reached 77.70 million yuan, representing 24.54% of total revenue, with a year-on-year increase of 48.46%[31]. - Chip products from the subsidiary Hongsi Electronics generated revenue of 42.02 million yuan, accounting for 13.27% of total revenue, an increase of 14.25% year-on-year[32]. - The revenue from USBKey and dynamic token products decreased, contributing to a gross profit decline of CNY 19.68 million[47]. - The smart terminal revenue grew by 48.46% year-on-year, indicating a shift towards new business growth[47]. Assets and Liabilities - Cash and cash equivalents decreased by 19.56% to CNY 370,649,473.55, primarily due to reduced net cash flow from operating activities and increased investment in financial products[57]. - Accounts receivable increased by 2.35% to CNY 150,285,229.02, mainly due to an increase in receivables from bank clients[57]. - Inventory rose by 4.24% to CNY 442,124,623.61, attributed to an increase in both finished goods and goods in transit[57]. - The company's total liabilities increased from CNY 141,297,625.62 to CNY 177,153,355.63, reflecting an increase of approximately 25.4%[143]. - The company's equity attributable to shareholders decreased from CNY 1,877,244,632.20 to CNY 1,840,000,006.81, a decline of about 2%[144]. Shareholder Information - The largest shareholder, Huang Yu, holds 30.31% of the shares, totaling 126,700,046 shares, after a decrease of 4,434,200 shares[127]. - The second-largest shareholder, Li Wei, holds 12.70% of the shares, totaling 53,084,761 shares, with a decrease of 2,124,650 shares[127]. - The company has 44,267 common shareholders at the end of the reporting period[127]. - A total of 4,434,200 restricted shares were released during the reporting period, reducing the restricted shares to 175,838,150, which is 42.06% of total shares[122]. Corporate Governance and Compliance - The company will not distribute cash dividends or issue bonus shares for the reporting period[9]. - The semi-annual financial report was not audited[101]. - The company did not experience any bankruptcy reorganization during the reporting period[103]. - There were no significant litigation or arbitration matters during the reporting period[104]. - The company reported no penalties or rectification situations during the reporting period[106]. - There were no related party transactions during the reporting period[107]. Strategic Initiatives - The company plans to maintain its existing product market while developing new products and expanding into new markets to foster growth[78]. - The company is actively pursuing new strategies for market expansion, particularly in the fields of digital security and smart devices[39]. - The company aims to expand its market presence by leveraging its patented technologies in various applications, including mobile devices and cloud services[39]. - The company plans to continue investing in R&D to maintain its competitive edge and drive future growth through innovative product offerings[39].