LONGSHINE(SZ:300682)2022-12-04 09:38Financial Performance - In the first half of 2020, Langxin Technology achieved revenue of 858 million CNY, a year-on-year increase of 8.1% [4] - The net profit attributable to shareholders was 81.57 million CNY, a year-on-year decrease of 82.97% due to a one-time investment gain of 499 million CNY from a major asset restructuring in the previous year [4] - The net profit excluding non-recurring gains and losses was 86.89 million CNY, a year-on-year increase of 274.84% [4] Revenue Breakdown - Software service revenue reached 315 million CNY, a year-on-year increase of 100.85%, accounting for 36.66% of total revenue [4] - Operating service revenue was 339 million CNY, a year-on-year increase of 91.32%, accounting for 39.47% of total revenue [4] - Smart terminal sales revenue was 203 million CNY, a year-on-year decrease of 53.80%, accounting for 23.64% of total revenue [4] Business Growth Insights - The operating service business grew by 91% year-on-year, with a stable growth rate of approximately 20% for the mobile payment cloud platform and internet TV services [5] - The software business saw a significant increase in orders, with a year-on-year growth of over 35% in the core electric information business [9] - The company is collaborating with Ant Group in various digital life services, which are expected to have substantial growth potential [6][10] Cash Flow and Operational Challenges - The net operating cash flow was -380 million CNY in the first half of 2020, primarily due to delayed software business payments and increased costs from business and R&D investments [11] - The company expects a positive cash flow in Q2 2020, with significant cash inflows already observed in July [11] Future Outlook - The company anticipates faster growth in life payment services due to increased user payment frequency in the summer [6] - The smart terminal market is expected to recover in the second half of the year, with new procurement opportunities emerging [10] - The company is confident in achieving its annual targets if the domestic pandemic situation remains stable [12]