首都信息(01075) - 2023 - 中期业绩

I. Company Announcements and Financial Highlights This section provides an overview of the company's interim results and key financial performance indicators for the reporting period 1.1 Interim Results Announcement The Board announced the interim results for the six months ended June 30, 2023 - The company's Board of Directors announced the interim results for the six months ended June 30, 2023[6] - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement[73] 1.2 Group Financial Highlights Operating revenue grew 1.36% to RMB 482.36 million, profit attributable to owners rose 8.22% to RMB 37.07 million, and no interim dividend was proposed Group Financial Highlights for H1 2023 | Metric | H1 2023 | | :--- | :--- | | Operating Revenue | RMB 482.36 million | | Profit Attributable to Owners of the Company | RMB 37.07 million | | Basic Earnings Per Share | RMB 0.0128 | | Y-o-Y Growth (Operating Revenue) | 1.36% | | Y-o-Y Growth (Profit Attributable to Owners of the Company) | 8.22% | - The Board did not recommend the payment of an interim dividend for the six months ended June 30, 2023[68] II. Consolidated Financial Statements This section presents the consolidated balance sheet and income statement, detailing the Group's financial position and performance 2.1 Consolidated Balance Sheet Total assets decreased by 2.20% to RMB 2,488.14 million, with current assets at RMB 1,680.97 million and total equity at RMB 1,313.79 million Key Consolidated Balance Sheet Data (As of June 30, 2023) | Item | June 30, 2023 (RMB) | December 31, 2022 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 2,488,144,752.11 | 2,544,087,160.53 | -2.20% | | Total Current Assets | 1,680,971,082.46 | 1,761,995,277.73 | -4.59% | | Total Non-current Assets | 807,173,669.65 | 782,091,882.80 | +3.21% | | Total Liabilities | 1,174,355,178.48 | 1,222,727,827.95 | -3.80% | | Total Equity Attributable to Owners of the Parent Company | 1,249,283,549.21 | 1,262,727,877.78 | -1.06% | | Total Shareholders' Equity | 1,313,789,573.63 | 1,321,359,332.58 | -0.57% | 2.2 Consolidated Income Statement Total operating revenue increased by 1.36% to RMB 482.36 million, and net profit attributable to owners grew 8.22% to RMB 37.07 million Key Consolidated Income Statement Data (January-June 2023) | Item | Jan-Jun 2023 (RMB) | Jan-Jun 2022 (RMB) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 482,364,292.15 | 475,874,384.65 | +1.36% | | Operating Costs | 280,383,491.79 | 301,723,993.36 | -7.07% | | Operating Profit | 47,316,031.76 | 47,461,936.39 | -0.31% | | Total Profit | 47,448,307.21 | 46,281,542.29 | +2.52% | | Income Tax Expense | 4,508,517.78 | 6,947,638.21 | -35.09% | | Net Profit | 42,939,789.43 | 39,333,904.08 | +9.17% | | Net Profit Attributable to Owners of the Parent Company | 37,065,219.81 | 34,249,022.09 | +8.22% | | Basic Earnings Per Share | 0.0128 | 0.0118 | +8.47% | III. Company Profile and Governance This section details the company's fundamental information, corporate structure, and adherence to governance standards 1. Company Overview An H-share listed company in Beijing, operating in network application services and system integration, with a robust governance structure and 7 consolidated entities - The company is a joint-stock limited company registered in Beijing, with H-shares listed on the Hong Kong Stock Exchange[71][23] - The company primarily operates in the software industry, including network application services and system integration, with a broad business scope[77] 3.1.1 Company Registration and Listing Information Established on July 14, 2000, the company's H-shares are listed on the Hong Kong Stock Exchange - The company was established on July 14, 2000, with the approval of the Beijing Municipal People's Government, and its Unified Social Credit Code is 911100006336972074[71] - The H-shares issued by the company are listed on the Hong Kong Stock Exchange[71] 3.1.2 Corporate Governance Structure and Organizational Framework The company has a comprehensive governance structure and an organizational framework covering business, technology, and management - The company has established a corporate governance structure comprising the Shareholders' Meeting, Party Committee, Board of Directors, and Supervisory Committee[9] - The organizational framework includes business front-end (four business units, two key departments, and regional expansion), technology mid-platform (five centers, two departments), and management back-end (fourteen functional departments)[9] - The company has thirteen branches located in Beijing, Guangzhou, Chongqing, Xiong'an New Area of Hebei, Shanghai, Hubei, Jilin, and Inner Mongolia Autonomous Region[9] 3.1.3 Consolidated Entities A total of 7 entities, including the company and its key subsidiaries, are included in the financial statement consolidation scope - A total of 7 entities were included in the scope of consolidation for the financial statements in this period[26] - The consolidated entities include the company, Capital Info Hong Kong, Capital Info Technology, Parking Management Company, Rongtong Information, Capital Info Medical Alliance, and Cloud Technology[26] Corporate Governance The company complied with Listing Rules, and the Audit Committee reviewed interim financial statements, confirming adherence to standards - The company consistently complied with the Code Provisions set out in Appendix 14 of the Listing Rules for the six months ended June 30, 2023[139] - The Audit Committee reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2023, and considered them to be prepared in accordance with applicable accounting standards, the Listing Rules, and other relevant legal requirements[129] 3.2.1 Securities Dealing Code for Directors and Supervisors The company's code for directors' securities transactions meets or exceeds HKEX Listing Rules standards - The company's adopted code for directors' securities transactions is no less stringent than the Model Code set out in Appendix 10 of the HKEX Listing Rules[65] - All directors and supervisors confirmed their compliance with the standards stipulated in the company's Securities Dealing Code and the HKEX Model Code for the six months ended June 30, 2023[65] Audit Committee Review The Audit Committee discussed audit, internal control, risk management, and financial reporting, reviewing interim financial statements for compliance - The Audit Committee discussed matters related to audit, internal control, risk management, and financial reporting with the company's senior management[129] - The Audit Committee reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2023, and deemed them compliant with applicable accounting standards and legal requirements[129] Purchase, Sale or Redemption of Listed Securities Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the reporting period - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended June 30, 2023[66] 3.2.4 Board Members The Board comprises executive, non-executive, and independent non-executive directors - The company's executive directors are Mr. Yu Donghui, Mr. Zhang Yiqian, and Mr. Yang Yongxin[67] - The company's non-executive directors are Mr. Zhou Weihua, Mr. Shan Yuhu, Mr. Feng Jianxun, Ms. Yan Yi, and Mr. Xin Shuangbai[67] - The company's independent non-executive directors are Mr. Gong Zhiqiang, Mr. Zhang Weixiong, Mr. Yang Xiaohui, and Mr. Su Zhongxing[67] IV. Significant Accounting Policies and Taxation This section outlines the basis of financial statement preparation, changes in accounting policies, segment reporting, and applicable tax regulations 2. Basis of Preparation of Financial Statements Financial statements are prepared under Accounting Standards for Business Enterprises, based on accrual and going concern principles - These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises, their application guidance, interpretations, and other relevant regulations issued by the Ministry of Finance[10] - The Group's accounting is based on the accrual basis, and except for certain financial instruments, all are measured at historical cost[27] - These financial statements are presented on a going concern basis[78] 3. Changes in Significant Accounting Policies and Estimates Interpretation No. 16 led to accounting policy adjustments impacting retained earnings and net profit; no significant estimate changes occurred - The Ministry of Finance issued Interpretation No. 16 of Accounting Standards for Business Enterprises in November 2022, effective from January 1, 2023[28][104] - Changes in accounting policies resulted in a decrease in net profit of RMB 0.3083 million for January-June 2023 and RMB 0.0725 million for January-June 2022[106] - There were no significant changes in accounting estimates during the reporting period[14] (1) Changes in Significant Accounting Policies Interpretation No. 16 specifies deferred income tax recognition, requiring adjustments to opening retained earnings for certain transactions - The Ministry of Finance issued Interpretation No. 16 of Accounting Standards for Business Enterprises in November 2022, which specifies the recognition method for deferred income tax assets and liabilities in certain single transactions[28][104] - For transactions occurring between the beginning of the earliest period presented in the financial statements and the effective date of this interpretation, enterprises should adjust opening retained earnings and other related financial statement items[104] (2) Changes in Significant Accounting Estimates No significant changes in accounting estimates occurred during the reporting period - There were no significant changes in accounting estimates during the reporting period[14] 4.2.3 Impact of Changes in Accounting Policies Accounting policy changes reduced net profit by RMB 0.3083 million in H1 2023 and RMB 0.0725 million in H1 2022 Impact of Accounting Policy Changes on Consolidated Balance Sheet as of June 30, 2023, and Consolidated Income Statement for Jan-Jun 2023 | Consolidated Balance Sheet Item | Impact Amount (RMB) | | :--- | :--- | | Deferred Income Tax Assets | 1,576,896.16 | | Deferred Income Tax Liabilities | 1,744,673.39 | | Surplus Reserve | 14,053.61 | | Retained Earnings | -133,072.76 | | Non-controlling Interests | -48,758.08 | | Consolidated Income Statement Item (Jan-Jun 2023) | | | Income Tax Expense | 308,313.34 | | Net Profit | -308,313.34 | | Of which: Net Profit Attributable to Owners of the Parent Company | -279,154.82 | | Non-controlling Interests' Share of Profit or Loss | -29,158.52 | - Changes in accounting policies resulted in a decrease in net profit of RMB 0.3083 million for January-June 2023 and RMB 0.0725 million for January-June 2022[106] 4. Segment Reporting As the Group operates in a single geographical region with domestic revenue and assets, segment data disclosure is not required - The Group does not have multiple operations that significantly impact its operating results[107] - The Group operates in only one geographical region, with revenue primarily from mainland China and its major assets also located domestically, thus segment data disclosure is not required[107] 5. Taxation Main taxes include VAT, urban maintenance and construction tax, and corporate income tax, with various subsidiaries enjoying preferential rates - The company's principal tax types include Value-Added Tax, Urban Maintenance and Construction Tax, and Corporate Income Tax[109] - Capital Info Technology, Rongtong Information, Capital Info Medical Alliance, and Cloud Technology all enjoy a corporate income tax rate of 15% as high-tech enterprises[16][87][113][34] - After being approved and listed as an income tax preferential enterprise, the company is subject to corporate income tax at a reduced rate of 10%[33] - The Parking Management Company enjoyed national small and micro-enterprise income tax benefits in this period[17][88] (1) Principal Tax Types and Rates The company's main taxes are VAT, urban maintenance and construction tax, and corporate income tax, with varying statutory rates Principal Tax Types and Rates | Tax Type | Tax Base | Statutory Tax Rate (%) | | :--- | :--- | :--- | | Value-Added Tax | Taxable Revenue | 5, 6, 9, 13 | | Urban Maintenance and Construction Tax | Amount of Turnover Tax Payable | 7 | | Corporate Income Tax | Taxable Income | 25 | (2) Tax Incentives and Approvals Several subsidiaries benefit from high-tech enterprise tax rates, and the parent company and Parking Management Company also receive incentives - Capital Info Technology, Rongtong Information, Capital Info Medical Alliance, and Cloud Technology have all obtained high-tech enterprise certificates, enjoying a corporate income tax rate of 15%[16][87][113][34] - After being approved and listed as an income tax preferential enterprise, the company is subject to corporate income tax at a reduced rate of 10%[33] - Rongtong Information, for sales of self-developed software products, is subject to VAT at a 13% rate, with a "collect first, refund later" policy for the portion of actual VAT burden exceeding 3%[32] - The Parking Management Company enjoyed national small and micro-enterprise income tax benefits in this period[17][88] V. Financial Data Details This section provides detailed financial information on accounts receivable, accounts payable, contract liabilities, retained earnings, operating revenue and costs, income tax, earnings per share, and dividends 6. Accounts Receivable Net accounts receivable significantly decreased to RMB 304.69 million, with a shift towards older aging categories Change in Net Accounts Receivable | Item | June 30, 2023 (RMB) | December 31, 2022 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Accounts Receivable | 304,689,041.85 | 452,027,020.14 | -32.59% | (1) Accounts Receivable Aging Analysis The aging analysis shows a decrease in short-term receivables and an increase in long-term receivables compared to year-end 2022 Accounts Receivable Aging Analysis (June 30, 2023 vs December 31, 2022) | Aging | June 30, 2023 Amount (RMB) | June 30, 2023 Proportion (%) | December 31, 2022 Amount (RMB) | December 31, 2022 Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | 0-6 Months | 82,001,791.88 | 16.36 | 326,206,862.30 | 50.91 | | 6 Months to 1 Year | 128,748,468.56 | 25.68 | 17,791,051.96 | 2.78 | | 1 to 2 Years | 101,486,810.00 | 20.25 | 134,761,287.00 | 21.04 | | 2 to 3 Years | 73,036,804.88 | 14.57 | 47,849,420.79 | 7.47 | | Over 3 Years | 116,005,083.00 | 23.14 | 114,011,214.97 | 17.80 | | Subtotal | 501,278,958.32 | 100.00 | 640,619,837.02 | 100.00 | | Less: Provision for Impairment | 196,589,916.47 | - | 188,592,816.88 | - | | Total | 304,689,041.85 | - | 452,027,020.14 | - | 8. Accounts Payable Total accounts payable was RMB 348.36 million, stable year-on-year, but with a notable increase in payables over 3 years Change in Total Accounts Payable | Item | June 30, 2023 (RMB) | December 31, 2022 (RMB) | | :--- | :--- | :--- | | Trade Payables | 348,363,729.14 | 348,072,086.81 | | Total | 348,363,729.14 | 348,072,086.81 | (2) Accounts Payable Aging Disclosure The aging analysis indicates a decrease in short-term obligations and a significant increase in long-term accounts payable Accounts Payable Aging Analysis (June 30, 2023 vs December 31, 2022) | Aging | June 30, 2023 (RMB) | December 31, 2022 (RMB) | | :--- | :--- | :--- | | Within 1 Year | 127,105,955.06 | 160,571,264.40 | | 1 to 2 Years | 85,373,883.17 | 71,198,150.09 | | 2 to 3 Years | 46,510,794.09 | 70,537,113.22 | | Over 3 Years | 89,373,096.82 | 45,765,559.10 | | Total | 348,363,729.14 | 348,072,086.81 | 9. Contract Liabilities Contract liabilities increased to RMB 364.17 million as of June 30, 2023, up from RMB 335.63 million at year-end 2022 Change in Contract Liabilities | Item | June 30, 2023 (RMB) | December 31, 2022 (RMB) | | :--- | :--- | :--- | | Project Collections | 364,174,664.07 | 335,630,190.76 | 10. Retained Earnings Period-end retained earnings were RMB 539.10 million, reflecting RMB 37.07 million net profit and an approved RMB 50.72 million dividend for 2022 Changes in Retained Earnings (Jan-Jun 2023) | Item | Amount (RMB) | | :--- | :--- | | Retained Earnings at End of Prior Period Before Adjustment | 552,609,587.82 | | Total Adjustment to Opening Retained Earnings | 146,082.06 | | Opening Retained Earnings After Adjustment | 552,755,669.88 | | Add: Net Profit Attributable to Shareholders for the Period | 37,065,219.81 | | Less: Dividends Payable on Ordinary Shares | 50,716,506.59 | | Retained Earnings at End of Period | 539,104,383.10 | 11. Operating Revenue and Operating Costs Main business revenue grew 1.75% to RMB 474.16 million, while other business revenue decreased by 16.10% to RMB 8.20 million Overview of Operating Revenue and Operating Costs (Jan-Jun 2023 vs Jan-Jun 2022) | Item | Jan-Jun 2023 Revenue (RMB) | Jan-Jun 2023 Costs (RMB) | Jan-Jun 2022 Revenue (RMB) | Jan-Jun 2022 Costs (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 474,161,441.70 | 278,573,204.43 | 466,098,028.24 | 299,776,002.00 | | Other Businesses | 8,202,850.45 | 1,810,287.36 | 9,776,356.41 | 1,947,991.36 | (1) Main Business (by Segment) Software development and services, system integration, data processing, and information professional services are the primary business segments Main Business Revenue and Cost Composition (Jan-Jun 2023 vs Jan-Jun 2022) | Business Segment | Jan-Jun 2023 Operating Revenue (RMB) | Jan-Jun 2023 Operating Costs (RMB) | Jan-Jun 2022 Operating Revenue (RMB) | Jan-Jun 2022 Operating Costs (RMB) | 2023 Revenue Share (%) | 2023 Y-o-Y Revenue Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Software Development and Services | 277,787,735.50 | 157,598,834.47 | 263,581,256.69 | 161,005,375.42 | 57.59% | +5.39% | | System Integration | 61,994,722.26 | 43,755,874.97 | 76,592,117.74 | 57,110,486.94 | 12.85% | -19.06% | | Data Processing Services | 112,817,710.02 | 66,355,622.14 | 116,075,320.02 | 76,666,692.19 | 23.39% | -2.81% | | Information Professional Services | 21,561,273.92 | 10,862,872.85 | 9,849,333.79 | 4,993,447.45 | 4.47% | +118.91% | (2) Other Businesses (by Segment) Other business revenue primarily consists of rental income from investment properties Other Business Revenue (Jan-Jun 2023 vs Jan-Jun 2022) | Item | Jan-Jun 2023 Revenue (RMB) | Jan-Jun 2023 Costs (RMB) | Jan-Jun 2022 Revenue (RMB) | Jan-Jun 2022 Costs (RMB) | | :--- | :--- | :--- | :--- | :--- | | Rental Income from Investment Properties | 8,202,850.45 | 1,810,287.36 | 9,776,356.41 | 1,947,991.36 | (3) Revenue Recognition Timing Revenue is recognized both at a point in time and over a period of time Revenue Recognition Timing (Jan-Jun 2023) | Revenue Recognition Method | Amount (RMB) | | :--- | :--- | | Recognized at a Point in Time | 107,607,300.33 | | Recognized Over a Period of Time | 374,756,991.82 | 12. Income Tax Expense Income tax expense decreased by 35.09% to RMB 4.51 million in H1 2023 compared to the prior year Change in Income Tax Expense (Jan-Jun 2023 vs Jan-Jun 2022) | Item | Jan-Jun 2023 (RMB) | Jan-Jun 2022 (RMB) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 4,508,517.78 | 6,947,638.21 | -35.09% | 13. Earnings Per Share Basic earnings per share increased to RMB 0.0128 in H1 2023 from RMB 0.0118 in the prior year Basic Earnings Per Share (Jan-Jun 2023 vs Jan-Jun 2022) | Item | Jan-Jun 2023 (RMB) | Jan-Jun 2022 (RMB) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share | 0.0128 | 0.0118 | +8.47% | - Basic earnings per share is calculated by dividing the consolidated net profit attributable to ordinary shareholders of the company by the weighted average number of ordinary shares outstanding[96] 14. Dividends A final dividend of RMB 0.0175 per share for 2022 was approved, totaling RMB 50.72 million; no interim dividend was recommended for H1 2023 - The company approved a final dividend of RMB 0.0175 per share (pre-tax) for the year ended December 31, 2022, totaling RMB 50.72 million[60] - The Board did not recommend the payment of an interim dividend for the six months ended June 30, 2023[68] VI. Operating Review and Outlook This section provides a comprehensive review of the Group's business performance, human resources, financial position, and future strategic outlook Business Review The Group advanced productization and national expansion, was recognized as a "Sci-Tech Reform Demonstration Enterprise," and progressed in four digital sectors - In H1 2023, the Group confronted challenges from a changing external environment and tighter government IT spending, steadfastly advancing productization, pursuing national industry expansion, and steadily implementing various reform measures[131] - In May 2023, the company was selected for the "Sci-Tech Reform Demonstration Enterprise" list by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC)[131] - During the reporting period, the Group continuously enhanced the secure and stable operation of major government and public welfare systems, advancing industry expansion in four key areas centered on "creating value for customers"[101] 6.1.1 Overall Operating Performance In H1 2023, the Group achieved positive growth in main business revenue, gross profit, and profit attributable to owners of the company Overall Operating Performance for H1 2023 | Metric | H1 2023 (RMB million) | Y-o-Y Growth | | :--- | :--- | :--- | | Main Business Revenue | 482.36 | 1.36% | | Gross Profit | 201.98 | 15.98% | | Profit Attributable to Owners of the Company | 37.07 | 8.22% | 6.1.2 Digital Government Sector The company strengthened core client relationships and expanded its national market presence in provident fund and personnel management - In the provident fund industry, the company further consolidated core clients in Beijing, Shanghai, Guangzhou, Chongqing, and actively promoted the "New Generation" provident fund product[62] - In the personnel management industry, a national market layout for personnel management business was initially established, with new key provincial and ministerial-level clients signed, including the All-China Federation of Trade Unions, Liaoning, Jilin, Hebei, and Shanxi[62] 6.1.3 Digital Enterprise Sector Completed preliminary acceptance of the SASAC investor supervision platform and secured projects with municipal state-owned enterprises - Completed the preliminary acceptance of the Municipal SASAC investor supervision platform, forming the "Enterprise Online Control" business module based on this project[44] - Signed projects with municipal state-owned enterprises including Bank of Beijing, Beijing Rural Commercial Bank, and Xianglong Assets[44] 6.1.4 Digital Healthcare Sector Beijing's medical insurance platform passed national acceptance, mobile payment systems launched, and hospital IT infrastructure was advanced - Beijing's medical insurance information platform passed acceptance by the National Healthcare Security Administration and continues to operate stably[132] - The medical insurance mobile payment system was launched, enabling online payment for appointment registration and in-clinic fees at 26 hospitals[132] - Promoted the construction of credit-based medical treatment platforms in 29 hospitals in Haidian District and completed HIS system upgrades for Chaoyang Hospital[132] 6.1.5 Digital Governance Sector The company secured a "Shu Zheng Cu" improvement project and completed final acceptance for "12345 hotline" projects in several districts - Obtained the "Shu Zheng Cu" (疏解整治促提升 - relieve, rectify, promote, improve) enhancement project from the Municipal Development and Reform Commission[133] - Completed final acceptance for "12345 hotline" projects in Changping District and Xicheng District, and signed business contracts with Songzhuang, Tiantongyuan South, and other sub-districts[133] Product Research and Development The Group accelerated productization, developing common components and industry-specific products, and enhancing its cloud-native microservice framework - The Group accelerated its productization process, advancing the research and development of common components and industry-specific products[122] - Continuously improved the cloud-native microservice software development framework, applying it to software products such as medical insurance mobile payment, "12345 hotline" response, "Three Major and One Important" decision-making supervision, and provident fund systems[122] - In response to market demand, planned and designed three industry software products—provident fund system, personnel system, and "12345 hotline" response system—and expanded the national market through product replication[122] Human Resources As of June 30, 2023, the Group had 1,622 employees with RMB 210.72 million in expenses, advancing salary reforms and a customer-centric marketing approach - As of June 30, 2023, the Group had 1,622 employees, with employee expenses of approximately RMB 210.72 million for the period[46] - During the reporting period, the Group steadily advanced salary and performance appraisal reforms, adjusted fixed-to-variable pay ratios, and focused on incentivizing core talent[46] - Further strengthened the customer-centric marketing philosophy, promoted the formation of efficient front-mid-back office collaboration mechanisms, and continuously enhanced customer service capabilities[46] Financial Review Main businesses include software development and data processing; government clients are 81.32%, Beijing revenue is 97.11%; assets and equity decreased, current ratio stable - The main businesses are categorized into software development and services, data processing services, system integration, and information professional services[48] - 81.32% of the Group's projects are with government clients[125] - Currently, 97.11% of the Group's operating revenue is concentrated in the Beijing area[125] 6.3.1 Revenue Composition and Business Distribution Software development and services lead revenue; government clients are 81.32%, and 97.11% of revenue is from Beijing Main Business Revenue Composition (H1 2023) | Business Segment | Revenue Share (%) | | :--- | :--- | | Software Development and Services | 57.59% | | Data Processing Services | 23.39% | | System Integration | 12.85% | | Information Professional Services | 4.47% | - 81.32% of the Group's projects are with government clients[125] - Currently, 97.11% of the Group's operating revenue is concentrated in the Beijing area[125] 6.3.2 Assets, Equity, and Liquidity Total assets and equity attributable to owners decreased, while the current ratio remained stable Assets, Equity, and Liquidity Indicators (As of June 30, 2023) | Metric | June 30, 2023 (RMB million) | Change from Prior Year-End | | :--- | :--- | :--- | | Total Assets | 2,488.14 | -2.20% | | Equity Attributable to Owners of the Company | 1,249.28 | -1.06% | | Current Ratio | 1.44 | Basic持平 | 6.3.3 Bank Deposits and Cash Bank deposits and cash totaled RMB 720.51 million, a 3.74% decrease, with no structured deposits purchased - The Group's bank deposits, bank balances, and cash amounted to RMB 720.51 million, a 3.74% decrease from the prior year[126] - Additionally, long-term large-denomination bank certificates of deposit and their interest, totaling RMB 104.88 million, are presented under other non-current assets[126] - No bank structured deposits were purchased as of the end of this period[126] 6.3.4 Performance of Associates In H1 2023, the Group's share of results from associates was RMB 2.32 million - In H1 2023, the Group's share of results from associates was RMB 2.32 million[50] Capital Expenditure, Liquidity, and Financial Resources During the reporting period, the Group had no pledged assets, and its current ratio remained largely consistent with the prior year - As of June 30, 2023, the Group had no pledged assets for the six months ended[49] - The Group's current ratio (total current assets to total current liabilities) was 1.44, largely consistent with the prior year[49] Equity Investments A lawsuit was refiled on April 3, 2023, against former shareholders of Rongtong Information for inflating performance; the case is ongoing - On April 3, 2023, the company refiled a lawsuit with the Beijing No. 1 Intermediate People's Court to legally pursue the former shareholders of Rongtong Information for inflating performance during the assessment period[42] - Currently, the case is still under trial[42] Future Outlook The Group will seize opportunities from SOE reform and digital transformation to deepen development, focus on core businesses, and strengthen risk control - In the second half of the year, the Group will seize opportunities from the new round of SOE reform and enhancement, Beijing's new era development, and enterprise digital transformation[135] - Further deepen reform and development, focus on core businesses, strengthen risk prevention and control, and achieve high-quality corporate development[135]