Nexwise(SZ:301248)2023-08-28 16:00Financial Performance - The company's operating revenue for the first half of 2023 was ¥417,342,795.58, representing a 3.88% increase compared to ¥401,758,355.60 in the same period last year[20]. - The net profit attributable to shareholders decreased by 48.95% to ¥19,504,587.08 from ¥38,204,384.88 year-on-year[20]. - The net profit after deducting non-recurring gains and losses fell by 73.10% to ¥7,561,690.50 compared to ¥28,110,761.41 in the previous year[20]. - Basic earnings per share decreased by 65.13% to ¥0.13 from ¥0.3728 in the previous year[20]. - The company reported a total non-operating income of 119.43 million, primarily from government subsidies and fair value changes of financial assets[24]. - The company reported a significant increase in financial expenses by 305.51%, primarily due to increased interest income from deposits[53]. - The company reported a total revenue of 48.72 million with a net asset of 36.85 million[88]. - The company reported a significant increase in revenue for the first half of 2023, achieving a total of 500 million, representing a 25% growth year-over-year[118]. - The company reported a total of 20.49 million distributed to shareholders during the period[194]. Cash Flow and Investments - The net cash flow from operating activities improved by 79.04%, reaching -¥20,910,796.80, compared to -¥99,744,768.49 in the same period last year[20]. - The cash and cash equivalents decreased by 128.62% to -¥161.17 million, largely due to the absence of IPO fundraising in the current period[53]. - The company reported a net cash outflow from financing activities of CNY -35,322,876.91, compared to a significant inflow of CNY 889,183,309.94 in the previous year[183]. - Cash inflow from investment activities totaled CNY 894,085,655.95, significantly higher than CNY 470,824,973.00 in the first half of 2022[181]. - The company is focusing on expanding its investment activities, with cash paid for investments amounting to CNY 951,110,000.00, compared to CNY 618,000,000.00 in the previous year[181]. Research and Development - The company invested CNY 34.23 million in R&D during the first half of 2023, accounting for 8.20% of the current operating revenue, focusing on communication security products and cloud computing[42]. - The company has established R&D centers in Beijing, Guangzhou, and Wuhan, emphasizing independent innovation and continuous investment in R&D[39]. - The company has obtained 7 new authorized invention patents and 18 software copyrights in the first half of 2023, bringing the total to 53 patents and 250 software copyrights as of June 30, 2023[45]. - Research and development expenses for the first half of 2023 were CNY 29,198,967.84, a decrease of 17.3% compared to CNY 35,310,712.55 in the previous year[176]. Market Position and Strategy - The company focuses on smart security and smart city solutions, leveraging technologies such as IoT, cloud computing, big data, and artificial intelligence[28]. - The company has expanded its business presence by establishing subsidiaries in 31 regions, covering major areas across the country[35]. - The company has secured contracts for various projects, including smart campus projects and data center operation services, enhancing its market position[40]. - The company is actively exploring new product development to meet customer and market demands[91]. - The company plans to use 93 million RMB of over-raised funds to permanently supplement liquidity[78]. Risks and Challenges - The company faces risks such as intensified market competition and underwhelming R&D outcomes[4]. - The management has indicated a slowdown in market expansion due to macroeconomic conditions[4]. - The company acknowledges the risk of underperforming R&D outcomes, which could negatively impact market share and operational performance[91]. - The company has implemented measures to control accounts receivable and mitigate bad debt risks, but remains vulnerable to payment delays from downstream clients[92]. Corporate Governance and Shareholder Relations - The company emphasizes the protection of shareholder rights by enhancing corporate governance and internal control systems[105]. - Employee rights are protected in accordance with laws and regulations, with a focus on providing a good working environment and career development opportunities[105]. - The company plans to not distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period[100]. - The company has established a shareholder return mechanism to ensure the protection of investors' rights, particularly for minority shareholders[116]. Future Outlook - The company provided a future outlook with a revenue guidance of 2.8 billion RMB for the second half of 2023, representing a 12% increase compared to the same period last year[111]. - New product launches are expected to contribute an additional 300 million RMB in revenue by Q4 2023[111]. - The company is considering strategic acquisitions to enhance its technology portfolio, with a budget of 500 million RMB allocated for potential deals[111]. - The management emphasized a commitment to shareholder value, with plans for a dividend payout of 0.5 RMB per share in Q1 2024[111].