Financial Performance - The company's operating revenue for the current period is CNY 25,181,290.41, a decrease of 23.71% compared to the same period last year[28]. - The net profit attributable to shareholders of the listed company improved to CNY -1,625,574.04, a 51.53% increase from CNY -3,353,641.32 in the previous year[28]. - The total assets at the end of the current period are CNY 242,376,514.24, down 6.48% from CNY 259,170,771.33 at the end of the previous year[30]. - The total liabilities decreased by 26.32% to CNY 28,468,583.30 from CNY 38,637,266.35 year-on-year[30]. - The net cash flow from operating activities for the current period is CNY 7,537,906.13, a significant improvement of 178.21% compared to CNY -9,637,944.19 in the previous year[31]. - The company's main business revenue for the first half of 2022 was ¥25,181,290.41, a year-on-year decrease of 23.71%[40]. - The net profit for the same period was -¥1,625,574.04, an increase of 51.53% year-on-year, with a basic earnings per share of -¥0.03[40]. - The company's operating revenue for the current period is CNY 25,181,290.41, a decrease of 23.71% compared to the same period last year[49]. - The gross profit margin for the current period is 28.64%, slightly down from 29.45% in the previous year[49]. - The company reported a total of 8,393 ordinary shareholders as of the end of the reporting period[88]. Cash Flow and Investments - The company increased its cash holdings to ¥27,010,304.01, a significant increase of 3,414.34% compared to the previous year[46]. - The accounts receivable decreased by ¥1,706.72 million, a reduction of 25.53%, due to enhanced collection efforts[47]. - The investment activities generated a net cash flow of ¥23,703,823.25, an increase of 34.85% compared to the previous period[64]. - The company incurred a cash outflow of 5,000,000.00 for dividend payments in the first half of 2022[123]. - The total cash inflow from investment activities was 189,603,823.25 in the first half of 2022, compared to 176,372,000.85 in the same period of 2021, reflecting an increase of approximately 7.5%[123]. Research and Development - The company has made significant investments in R&D for technologies such as digital twins, software security, and big data analytics, enhancing product functionality and performance[13]. - The company is actively developing new products, including a smart operation and maintenance platform for substations and a digital management solution for warehouse operations[39]. - The company is focusing on the integration of artificial intelligence and IoT technologies in its research and development efforts[43]. - Research and development expenses decreased by 19.50% to CNY 6,032,950.07, attributed to fewer completed contracts during the reporting period[51]. - The company has established a comprehensive product service system integrating intelligent auxiliary monitoring solutions, technical services, and software development[40]. Client Dependency and Market Risks - The company relies heavily on a few clients, with the top five clients accounting for 96.87% of total sales, and the largest client, State Grid Corporation, contributing 67.67%[14]. - The company faces market risks due to fluctuations in the power industry, which could impact business performance[13]. - The company is actively managing contract and accounts receivable collections to mitigate risks associated with high receivables[14]. - The company plans to invest in R&D and new product development to mitigate risks associated with customer dependency and enhance market expansion[74]. Corporate Governance and Compliance - The company has revised its governance and internal control systems to improve operational standards and compliance[7]. - The company has established a standardized corporate governance structure to prevent improper control by major shareholders, who hold 50.58% of the shares[75][76]. - The company has committed to avoiding competition with peers since September 2015, and all shareholders, directors, supervisors, and senior management have fulfilled this commitment during the reporting period[84]. - The company has also committed to reducing and avoiding related party transactions since September 2015, with no related party transactions occurring during the reporting period[84]. Shareholder Information - The controlling shareholder, Zheng Sanli, holds 48.78% of the company's shares, while he and his spouse, Yang Lin, collectively own 50.58%[94]. - The total number of shares held by the top ten shareholders is 36,765,911, representing 73.52% of the total shares[92]. - The company raised a net amount of 87,346,226.42 CNY from public offerings, with 5,962,958.23 CNY utilized during the reporting period[100]. - The company has committed to stabilizing its stock price and filling the dilution of immediate returns, which is also being fulfilled[84]. Operational Challenges - The company has implemented measures to ensure business continuity amid the ongoing COVID-19 pandemic[14]. - The company operates in a seasonal business environment, with higher revenue typically recognized in the second half of the year due to project completion timelines[134]. - The smart substation multidimensional inspection and control platform project has entered the product development phase, but has not generated expected revenue due to delays in finding suitable premises[101]. - The R&D center construction project is also in the formal R&D phase, with no expected revenue generated, and is facing delays due to the same location issues[101]. Financial Reporting and Accounting - The financial statements are prepared based on the going concern principle, reflecting the company's financial position as of June 30, 2022, and its operating results for the first half of 2022[139]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring that the financial reports are true and complete[139]. - The company confirmed no changes in accounting policies or estimates compared to the previous year's financial statements[133]. - The company has not engaged in any securities issuance, repurchase, or repayment activities during the reporting period[133].

Certification and Recognition - In January 2021, the company received the CMMI Level 3 certification, enhancing its core competitiveness[6] - The company was re-certified as a national high-tech enterprise in October 2020, which provides a 15% corporate income tax rate benefit[14] - The company enjoyed a reduced corporate income tax rate of 15% due to its status as a national high-tech enterprise[108] Financial Performance - The company's operating revenue for 2021 was approximately RMB 90.79 million, a decrease of 0.68% compared to RMB 91.41 million in 2020[29] - The net profit attributable to shareholders for 2021 was approximately RMB 8.01 million, representing a decline of 48.20% from RMB 15.47 million in 2020[29] - The gross profit margin decreased to 32.60% in 2021 from 40.81% in 2020[29] - Total assets at the end of 2021 were approximately RMB 259.17 million, down 5.71% from RMB 274.86 million at the beginning of the year[30] - Total liabilities decreased by 26.18% to approximately RMB 38.64 million at the end of 2021 from RMB 52.34 million at the beginning of the year[30] - The company's weighted average return on equity was 3.54% in 2021, down from 9.07% in 2020[29] - The cash flow from operating activities for 2021 was approximately RMB 12.62 million, a decrease of 2.31% from RMB 12.92 million in 2020[32] - Total revenue for 2021 was approximately ¥90.79 million, a decrease of 0.90% compared to the preliminary report[36] - Net profit attributable to shareholders was approximately ¥8.01 million, showing a slight decrease of 0.05% from the preliminary report[36] Customer Dependency - The company relies heavily on its largest customer, with sales to the State Grid Corporation accounting for 77.95% of total sales in 2021[15] - The company relies heavily on a single customer, with sales to the top five customers accounting for 92.29% of total sales in 2021[110] - The first major customer, State Grid Corporation, accounted for 77.95% of sales in 2021, indicating significant customer dependency[110] Market and Operational Risks - The company faces market risks due to fluctuations in the electric power industry, which can directly impact business performance[14] - The company recognizes market risks associated with fluctuations in government investment and macroeconomic conditions affecting the power industry[106] - The company has faced risks related to the COVID-19 pandemic, affecting both upstream and downstream customers and suppliers[112] Research and Development - The company continues to invest significantly in R&D for technologies such as big data and intelligent analysis to enhance product functionality[14] - The company plans to continue investing in artificial intelligence and IoT research, aligning with the national strategy to build a "Ubiquitous Power Internet of Things" by 2024[50] - R&D expenses rose by 49.58% to approximately 13.38 million, reflecting an increase in ongoing projects and outsourced R&D for non-core technologies[60] - The company has developed a smart operation and maintenance management platform for renewable energy power stations, focusing on comprehensive equipment information perception and intelligent diagnosis, which has been recognized in the industry and is currently in pilot testing[48] - The company is developing a multidimensional inspection control system for substations, integrating AI image recognition technology to improve operational efficiency[103] Human Resources and Talent Management - The company emphasizes the need for skilled professionals as it expands, facing potential talent shortages in the future[15] - The company has implemented measures to enhance talent retention, including competitive compensation and career development plans[111] - The company has established a comprehensive human resources management system to ensure employee rights and welfare[97] - The company experienced a net increase in employees, ending the period with 105 employees, up from 92 at the beginning[151] Governance and Compliance - The company has established a standardized corporate governance structure to mitigate risks associated with controlling shareholders[111] - The company has established a comprehensive governance structure, ensuring compliance with relevant laws and regulations[167] - The supervisory board reported no violations of laws or regulations by the company’s directors and management during the reporting period[180] - The company has established an investor relations program to enhance communication with investors and protect their legal rights[189] Financial Management and Investments - The company has engaged in financial investments, including a bank wealth management product purchase of up to 200 million yuan in April 2021[119] - The company also approved the use of idle fundraising to purchase bank wealth management products, with an investment of up to 70 million yuan in August 2021[120] - The company raised a total of CNY 99,800,000 through public issuance, with CNY 10,882,640.02 utilized during the reporting period[135] Operational Efficiency - The company has implemented strict operational standards in product development and project management to enhance business management and team efficiency[48] - The company has effectively utilized various recruitment methods to meet staffing needs, ensuring operational continuity[154] - The company has established a complete procurement, production, sales, and R&D system, demonstrating its capability for independent market operations[181] Shareholder Information - The largest shareholder, Zheng Sanli, holds 48.78% of the shares, making him the controlling shareholder of the company[132] - Zheng Sanli and Yang Lin, who are husband and wife, collectively own 50.58% of the company's shares[133] - The top ten shareholders hold a total of 73.85% of the shares, with the largest shareholder holding 24,390,000 shares[131] Audit and Financial Reporting - The audit report for the company was issued without any reservations, confirming that the financial statements fairly reflect the company's financial position as of December 31, 2021[191] - Management is responsible for preparing financial statements in accordance with accounting standards to ensure fair representation[200] - Governance is responsible for overseeing the financial reporting process of the company[200]

Financial Performance - Operating revenue for the first quarter of 2022 was CNY 10,100,779.43, down 5.41% from CNY 10,678,502.82 in the same period of 2021[15] - Net profit attributable to shareholders for the first quarter of 2022 was CNY 749,413.88, an increase of 180.67% compared to CNY 267,013.22 in the first quarter of 2021[15] - The total operating profit for Q1 2022 was CNY 701,327.02, up from CNY 326,443.77 in Q1 2021, indicating a growth of approximately 115%[39] - The basic earnings per share for the first quarter of 2022 was CNY 0.01, doubling from CNY 0.005 in the same period last year[15] - The total revenue from sales of goods and services received in Q1 2022 was CNY 19,591,164.99, compared to CNY 15,380,655.20 in Q1 2021, reflecting an increase of about 27%[42] Cash Flow and Liquidity - The net cash flow from operating activities improved by 95.38%, reaching CNY -357,080.82, compared to CNY -7,723,332.33 in the previous year[15] - Cash and cash equivalents as of March 31, 2022, amounted to CNY 25,929,516.11, compared to CNY 768,574.63 at the end of 2021, indicating significant liquidity improvement[34] - Cash flow from operating activities showed a net outflow of CNY -357,080.82 in Q1 2022, an improvement from CNY -7,723,332.33 in Q1 2021[43] - Cash flow from investing activities generated a net inflow of CNY 26,094,297.30 in Q1 2022, compared to CNY 6,818,472.09 in Q1 2021, reflecting a substantial increase[43] - The total cash and cash equivalents at the end of Q1 2022 amounted to CNY 25,841,962.03, a significant rise from CNY 642,615.88 at the end of Q1 2021[44] Assets and Liabilities - Total assets as of March 31, 2022, were CNY 253,863,627.77, a decrease of 2.05% compared to CNY 259,170,771.33 at the end of 2021[15] - The company's asset-liability ratio remained low at 12.83% for both the parent and consolidated entities, down from 14.91% at the end of 2021[15] - Total liabilities decreased to CNY 32,580,708.91 from CNY 38,637,266.35, reflecting a reduction of approximately 15.7%[36] - The company's equity attributable to shareholders increased slightly to CNY 221,282,918.86 from CNY 220,533,504.98, indicating a growth of about 0.3%[36] Shareholder Information - The number of shareholders holding more than 5% of shares increased, with the total number of shareholders reaching 8,573[21] - The company reported a total of 36,884,309 shares held by the top ten shareholders, representing 73.77% of total shares[24] - The largest shareholder, Zheng Sanli, holds 24,390,000 shares, accounting for 48.78% of total shares[24] Investment and Financial Products - The company utilized idle funds to purchase low-risk financial products totaling CNY 51,300,000 from various banks, with a redemption of CNY 72,500,000 during the reporting period[28] - As of the end of the reporting period, the balance of financial products held by the company was CNY 74,000,000[28] - The company also purchased low-risk financial products totaling CNY 57,200,000 using raised funds, with a redemption of CNY 60,700,000 during the reporting period[29] - The balance of financial products purchased with raised funds at the end of the reporting period was CNY 53,700,000[29] Legal and Compliance - There were no significant legal disputes or external guarantees reported during the period[27] - The company has committed to avoiding competition with its shareholders, directors, and senior management since September 2015[29] - The company has no reported instances of asset seizure, freezing, or pledging during the reporting period[27] - There were no significant related party transactions or other major events affecting the company's operations during the reporting period[27] - The company has committed to reducing related party transactions, with no such transactions reported during the period[30] - There were no profit distribution or capital reserve conversion plans proposed during the reporting period[31] - The financial statements for the reporting period were not audited, which may impact the reliability of the reported figures[33] Research and Development - Research and development expenses rose to CNY 2,609,085.83 in Q1 2022, compared to CNY 1,473,657.06 in Q1 2021, marking an increase of about 77%[39] Cost Management - The company reported a significant increase in gross margin for system integration projects due to better cost control, contributing to the rise in net profit[17] - The company plans to continue focusing on project cost control and enhancing revenue recognition in system integration services to improve profitability[17] - Total operating costs for Q1 2022 were CNY 11,284,903.22, down from CNY 12,097,415.86 in Q1 2021, reflecting a reduction of 6.7%[38] Financial Expenses - The company incurred financial expenses of CNY 45,087.13 in Q1 2022, a notable increase from CNY 1,001.79 in Q1 2021[39] - Non-recurring gains and losses amounted to CNY 380,627.68, with a net amount of CNY 323,533.53 after tax impacts[19] - The company reported investment income of CNY 1,394,297.30 in Q1 2022, up from CNY 635,781.45 in Q1 2021, representing a growth of approximately 119%[39]