Star-net(002396)2022-09-23 16:00Financial Performance - The company's operating revenue for the first half of 2020 was ¥3,384,248,804.19, representing a 1.74% increase compared to ¥3,326,532,778.67 in the same period last year[27]. - The net profit attributable to shareholders for the first half of 2020 was ¥65,674,579.71, a decrease of 57.69% from ¥155,208,377.42 in the previous year[27]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥46,988,360.88, down 59.69% from ¥116,573,390.06 year-on-year[27]. - Basic earnings per share for the first half of 2020 were ¥0.1126, down 57.69% from ¥0.2661 in the previous year[27]. - The comprehensive gross profit margin declined due to an uneven product sales structure influenced by the pandemic[45]. - The total profit for the first half of 2020 was approximately ¥11.28 million, down from ¥147.03 million in the same period of 2019, a decline of 92.34%[183]. - The net profit of the subsidiary Ruijie Networks Co., Ltd. was a loss of CNY 103,465,802.59, contributing to a negative impact on the company's overall net profit[78]. Cash Flow and Assets - The net cash flow from operating activities was -¥943,123,656.42, a decline of 27.86% compared to -¥737,612,839.74 in the same period last year[27]. - Cash and cash equivalents decreased by 8.19% to CNY 1,496,285,783.31, compared to CNY 2,054,034,852.46 in the previous year[62]. - The company's total assets at the end of the reporting period were ¥8,017,422,868.80, an increase of 4.79% from ¥7,650,633,765.03 at the end of the previous year[27]. - The company's current assets totaled CNY 6,069,468,100.53, compared to CNY 5,978,336,958.89 at the end of 2019, indicating an increase of about 1.5%[163]. - The total liabilities increased to CNY 4,500,000,000.00, reflecting a growth of approximately 10% compared to the previous period[161]. Investments and Research - Research and development investment rose by 2.23% to ¥503,239,381.80, up from ¥492,283,369.42 year-on-year[51]. - The company applied for 69 patents in the first half of 2020, including 48 invention patents, enhancing its technological leadership with a total of 1,990 patents by the end of the reporting period[41]. - The company is increasing investment in research and development to keep pace with technological advancements and meet evolving customer demands[82]. Market and Sales - Revenue from enterprise-level network equipment increased by 19.69% to ¥1,886,481,348.63, compared to ¥1,576,132,837.91 in the previous year[56]. - Revenue from international markets increased by 28.76% to ¥710,386,891.86, up from ¥551,714,315.74 year-on-year[57]. - The company experienced a slight increase in sales revenue due to the growth in data center switches and video conferencing systems during the pandemic[45]. Risks and Challenges - The company is facing risks from macroeconomic fluctuations, particularly due to the impact of COVID-19 and ongoing US-China trade tensions, which may create uncertainties for future development[81]. - The company acknowledges the risk of intensified competition in the industry and aims to maintain its market position through differentiated industry application solutions[82]. - The company is dependent on external suppliers for key components, such as chips from Broadcom and Qualcomm, which poses a supply chain risk[83]. Corporate Actions - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[8]. - The company has completed the acquisition of 45% equity in StarNet Wisdom, with the transfer of ownership finalized on July 31, 2020[121]. - The company is in the process of spinning off its subsidiary, Ruijie Networks, for an initial public offering on the Shenzhen Stock Exchange[121].