HZIS(600126)2023-04-28 16:00Land Lease and Subsidiary Operations - The company signed a land lease agreement with Hangang Group on June 29, 2020, for 206,674 square meters to build the Zhejiang Cloud Computing Data Center, with annual rent for the northern plot at ¥8,860,893.30 and the southern plot at ¥6,980,668.80, both subject to a 5% increase every five years[2] - As of the report date, the southern plot has not yet commenced construction, while the northern plot's lease term is 20 years starting from the project's official commencement[2] - The company's subsidiary, Zhejiang Cloud Computing Company, was established on September 18, 2020, to operate the data center project[2] - The company has signed multiple lease agreements with Hangang Group for various properties, including a factory lease for ¥1,821,204.00 annually for 19,742 square meters[2] Financial Performance - The total liabilities of the company amounted to ¥6,819,162,870.22, an increase from ¥4,728,400,452.31 in the previous period[14] - The total equity of the company decreased to ¥15,105,580,828.85 from ¥15,871,783,186.21[14] - The net profit for the reporting period was ¥517,180,509.02, down from ¥987,984,034.10 in the previous period, indicating a decline of approximately 47.6%[16] - Basic earnings per share decreased to ¥0.15 from ¥0.29, reflecting a significant drop in profitability[16] - The company reported a total comprehensive income of ¥517,180,509.02 for the period, down from ¥987,984,034.10, indicating a significant decrease in overall financial performance[16] - The total comprehensive income for the period was approximately CNY 78.09 million, compared to CNY 198.60 million in the previous period, indicating a decrease of about 60.7%[18] Cash Flow and Operating Activities - The net cash flow from operating activities was CNY 129.66 million, significantly up from CNY 37.76 million in the same period last year, representing an increase of approximately 243.5%[20] - Cash inflows from sales of goods and services amounted to CNY 529.85 million, down from CNY 2.59 billion, reflecting a decrease of about 79.5%[20] - The company received CNY 151.07 million in other cash related to operating activities, which is an increase of approximately 73.5% compared to CNY 86.85 million in the previous period[20] - Total cash outflows from operating activities were CNY 21.94 million, a decrease of about 57.5% from CNY 51.68 million in the previous period[20] Accounting Policies and Estimates - The company has established specific accounting policies and estimates for financial instruments, fixed asset depreciation, and revenue recognition, ensuring compliance with accounting standards[54] - The company has not made any significant changes to its accounting policies or estimates during the reporting period[117] - The company has a clear accounting policy for lease liabilities, confirming that it does not apply to its current operations[1] Taxation and Provisions - The company operates under a 20% income tax rate for its main entity, Zhejiang Lanbeisi Information Technology Co., and a 25% rate for other entities[1] - The company has a bad debt provision of ¥23,343,600.00 against a total accounts receivable of ¥389,060,000.00, representing a provision ratio of 6%[4] - The company has recognized a bad debt provision of 23,343,600.00 RMB, which is 6.0% of the total balance of 389,060,000.00 RMB for commercial acceptance bills[172] Industry and Market Conditions - The steel industry showed a "high opening and low closing" trend in the first half of 2022, with steel prices turning from rising to falling, leading to a significant decline in industry profitability[188] - The digital economy in China has maintained its position as the second largest in the world, with the total revenue of electronic information manufacturing, software, telecommunications, and internet industries exceeding RMB 10 trillion in the first half of 2022[188] - The company reported a significant decline in steel production and profitability due to adverse economic conditions affecting the supply chain and market demand[188] Governance and Risk Management - The company’s governance structure includes a board of directors that ensures the accuracy and completeness of financial reports[193] - The report indicates that the company is facing risks related to future developments, which are detailed in the management discussion section[194]