Forms Syntron(SZ:300468)2021-08-10 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥302,613,875.41, representing a 20.06% increase compared to ¥252,056,273.78 in the same period last year[21]. - The net profit attributable to shareholders was ¥29,321,843.20, up 15.12% from ¥25,469,634.48 year-on-year[21]. - The net profit after deducting non-recurring gains and losses was ¥27,290,223.58, reflecting a 19.62% increase from ¥22,813,363.49 in the previous year[21]. - The basic earnings per share increased to ¥0.10, an 11.11% rise from ¥0.09 in the same period last year[21]. - The total assets at the end of the reporting period were ¥1,249,743,168.28, a slight decrease of 0.16% from ¥1,251,771,470.81 at the end of the previous year[21]. - The net assets attributable to shareholders increased to ¥1,168,706,520.98, a 0.28% increase from ¥1,165,443,607.65 at the end of the previous year[21]. - The net cash flow from operating activities was negative at -¥86,932,574.82, compared to -¥81,737,750.45 in the same period last year, indicating a 6.36% decline[21]. - Operating costs increased by 20.97% to ¥173,756,382.74 from ¥143,639,969.82, resulting in a gross margin of 42.58%[40]. - Research and development expenses rose by 31.00% to ¥42,430,184.37, primarily due to increased investment in R&D[38]. - The company reported a total non-recurring gains and losses of ¥2,031,619.62 for the period[25]. Revenue Breakdown - Software development and maintenance revenue reached 283.44 million yuan, up 19.50% year-on-year[28]. - Domestic revenue was 115.93 million yuan, a significant increase of 49.29% compared to the previous year, while overseas revenue was 186.68 million yuan, growing by 7.04%[28]. - The company generated a total of 12.83 million yuan from consulting and product licensing services[28]. Strategic Initiatives - The company is actively investing in new technologies such as distributed architecture, microservices, blockchain, digital currency, AI, and 5G applications to enhance its capabilities[29]. - The company has participated in multiple central bank digital currency cross-border application studies, positioning itself as a core partner in the multi-currency digital currency construction services[29]. - The company established new subsidiaries in Beijing and Chengdu to support business expansion in northern and southwestern regions[30]. - The company aims to provide end-to-end comprehensive solutions for financial institutions, leveraging its extensive experience and technological capabilities[34]. Market Outlook - The IT solutions market for the banking sector in China is projected to grow at a compound annual growth rate of 24.5%, reaching 127.35 billion yuan by 2024[33]. - The company is focused on expanding its market presence, particularly in large commercial banks, as part of its growth strategy[84]. Risk Management - The company faces risks related to reliance on financial institutions and customer concentration, with a focus on diversifying new clients and business models[62]. - The company is conducting detailed risk assessments regarding international political and economic instability, as well as exchange rate fluctuations, to safeguard its overseas operations[66]. - The company acknowledges seasonal fluctuations in business performance, particularly in the banking sector, and is working to mitigate these effects[64]. - The ongoing COVID-19 pandemic poses risks, particularly with overseas subsidiaries not fully resuming operations, leading to potential negative impacts on overall business[67]. Governance and Compliance - The company has implemented measures to strengthen internal control processes and improve communication mechanisms[67]. - The company has appointed new board members and management personnel as of February 19, 2021, to enhance governance[72]. - The financial report for the first half of the year was not audited[135]. - The company will publicly disclose reasons for any failure to fulfill commitments and take corrective actions to minimize investor losses[88]. Shareholder Information - The company plans to distribute cash dividends of no less than 20% of the distributable profits for the year, provided that the cash flow meets operational and developmental needs[81]. - The company maintains a profit distribution policy that prioritizes cash dividends while ensuring sustainability and stability[80]. - The total number of ordinary shareholders at the end of the reporting period was 41,727[123]. - The largest shareholder, Yiqun Group Holdings Limited, holds 24.53% of the shares, totaling 69,280,501 shares[123]. Financial Position - The company reported a significant reduction in employee compensation payable, which decreased to ¥26,425,396.99 from ¥61,198,660.95, a drop of 56.8%[139]. - The total liabilities decreased to ¥81,036,647.30 from ¥86,327,863.16, marking a decline of 6.5%[139]. - The total cash and cash equivalents at the end of the period were 173,912,296.53 CNY, down from 214,976,754.74 CNY in the previous year[160]. - The company reported a total share count of 283,291,058 after the cancellation of 7,997 restricted shares, reducing the total by approximately 0.003%[115]. Future Plans - The company plans to enhance its capital reserves through retained earnings and other comprehensive income adjustments[165]. - The company is focusing on technological advancements and research and development for future growth[167]. - The company has outlined a strategy for potential mergers and acquisitions to enhance its market position[167]. - The future outlook remains positive with expected growth in user engagement and revenue streams[167].