I. [Company Announcements and Financial Highlights](index=1&type=section&id=I.%20Company%20Announcements%20and%20Financial%20Highlights) 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](index=1&type=section&id=1.1%20Interim%20Results%20Announcement) 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](index=6&type=chunk) - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement[73](index=73&type=chunk) [1.2 Group Financial Highlights](index=1&type=section&id=1.2%20Group%20Financial%20Highlights) 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](index=68&type=chunk) II. [Consolidated Financial Statements](index=2&type=section&id=II.%20Consolidated%20Financial%20Statements) This section presents the consolidated balance sheet and income statement, detailing the Group's financial position and performance [2.1 Consolidated Balance Sheet](index=2&type=section&id=2.1%20Consolidated%20Balance%20Sheet) 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](index=4&type=section&id=2.2%20Consolidated%20Income%20Statement) 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](index=6&type=section&id=III.%20Company%20Profile%20and%20Governance) This section details the company's fundamental information, corporate structure, and adherence to governance standards [1. Company Overview](index=6&type=section&id=1.%20Company%20Overview) 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](index=71&type=chunk)[23](index=23&type=chunk) - The company primarily operates in the software industry, including network application services and system integration, with a broad business scope[77](index=77&type=chunk) [3.1.1 Company Registration and Listing Information](index=6&type=section&id=3.1.1%20Company%20Registration%20and%20Listing%20Information) 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](index=71&type=chunk) - The H-shares issued by the company are listed on the Hong Kong Stock Exchange[71](index=71&type=chunk) [3.1.2 Corporate Governance Structure and Organizational Framework](index=6&type=section&id=3.1.2%20Corporate%20Governance%20Structure%20and%20Organizational%20Framework) 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](index=9&type=chunk) - 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](index=9&type=chunk) - 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](index=9&type=chunk) [3.1.3 Consolidated Entities](index=6&type=section&id=3.1.3%20Consolidated%20Entities) 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](index=26&type=chunk) - 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](index=26&type=chunk) [Corporate Governance](index=20&type=section&id=Corporate%20Governance) 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](index=139&type=chunk) - 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](index=129&type=chunk) [3.2.1 Securities Dealing Code for Directors and Supervisors](index=20&type=section&id=3.2.1%20Securities%20Dealing%20Code%20for%20Directors%20and%20Supervisors) 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](index=65&type=chunk) - 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](index=65&type=chunk) [Audit Committee Review](index=20&type=section&id=Audit%20Committee) 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](index=129&type=chunk) - 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](index=129&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=20&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) 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](index=66&type=chunk) [3.2.4 Board Members](index=20&type=section&id=3.2.4%20Board%20Members) 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](index=67&type=chunk) - The company's non-executive directors are Mr. Zhou Weihua, Mr. Shan Yuhu, Mr. Feng Jianxun, Ms. Yan Yi, and Mr. Xin Shuangbai[67](index=67&type=chunk) - The company's independent non-executive directors are Mr. Gong Zhiqiang, Mr. Zhang Weixiong, Mr. Yang Xiaohui, and Mr. Su Zhongxing[67](index=67&type=chunk) IV. [Significant Accounting Policies and Taxation](index=7&type=section&id=IV.%20Significant%20Accounting%20Policies%20and%20Taxation) 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](index=7&type=section&id=2.%20Basis%20of%20Preparation%20of%20Financial%20Statements) 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](index=10&type=chunk) - The Group's accounting is based on the accrual basis, and except for certain financial instruments, all are measured at historical cost[27](index=27&type=chunk) - These financial statements are presented on a going concern basis[78](index=78&type=chunk) [3. Changes in Significant Accounting Policies and Estimates](index=7&type=section&id=3.%20Changes%20in%20Significant%20Accounting%20Policies%20and%20Estimates) 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](index=28&type=chunk)[104](index=104&type=chunk) - 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](index=106&type=chunk) - There were no significant changes in accounting estimates during the reporting period[14](index=14&type=chunk) [(1) Changes in Significant Accounting Policies](index=7&type=section&id=%281%29%20Changes%20in%20Significant%20Accounting%20Policies) 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](index=28&type=chunk)[104](index=104&type=chunk) - 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](index=104&type=chunk) [(2) Changes in Significant Accounting Estimates](index=9&type=section&id=%282%29%20Changes%20in%20Significant%20Accounting%20Estimates) No significant changes in accounting estimates occurred during the reporting period - There were no significant changes in accounting estimates during the reporting period[14](index=14&type=chunk) [4.2.3 Impact of Changes in Accounting Policies](index=8&type=section&id=4.2.3%20Impact%20of%20Changes%20in%20Accounting%20Policies) 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](index=106&type=chunk) [4. Segment Reporting](index=9&type=section&id=4.%20Segment%20Reporting) 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](index=107&type=chunk) - 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](index=107&type=chunk) [5. Taxation](index=10&type=section&id=5.%20Taxation) 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](index=109&type=chunk) - 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](index=16&type=chunk)[87](index=87&type=chunk)[113](index=113&type=chunk)[34](index=34&type=chunk) - 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](index=33&type=chunk) - The Parking Management Company enjoyed national small and micro-enterprise income tax benefits in this period[17](index=17&type=chunk)[88](index=88&type=chunk) [(1) Principal Tax Types and Rates](index=10&type=section&id=%281%29%20Principal%20Tax%20Types%20and%20Rates) 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](index=11&type=section&id=%282%29%20Tax%20Incentives%20and%20Approvals) 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](index=16&type=chunk)[87](index=87&type=chunk)[113](index=113&type=chunk)[34](index=34&type=chunk) - 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](index=33&type=chunk) - 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](index=32&type=chunk) - The Parking Management Company enjoyed national small and micro-enterprise income tax benefits in this period[17](index=17&type=chunk)[88](index=88&type=chunk) V. [Financial Data Details](index=12&type=section&id=V.%20Financial%20Data%20Details) 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](index=12&type=section&id=6.%20Accounts%20Receivable) 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](index=12&type=section&id=%281%29%20Accounts%20Receivable%20Aging%20Analysis) 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](index=13&type=section&id=8.%20Accounts%20Payable) 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](index=13&type=section&id=%282%29%20Accounts%20Payable%20Aging%20Disclosure) 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](index=13&type=section&id=9.%20Contract%20Liabilities) 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](index=14&type=section&id=10.%20Retained%20Earnings) 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](index=14&type=section&id=11.%20Operating%20Revenue%20and%20Operating%20Costs) 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)](index=15&type=section&id=%281%29%20Main%20Business%20%28by%20Segment%29) 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)](index=15&type=section&id=%282%29%20Other%20Businesses%20%28by%20Segment%29) 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](index=15&type=section&id=%283%29%20Revenue%20Recognition%20Timing) 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](index=15&type=section&id=12.%20Income%20Tax%20Expense) 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](index=16&type=section&id=13.%20Earnings%20Per%20Share) 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](index=96&type=chunk) [14. Dividends](index=16&type=section&id=14.%20Dividends) 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](index=60&type=chunk) - The Board did not recommend the payment of an interim dividend for the six months ended June 30, 2023[68](index=68&type=chunk) VI. [Operating Review and Outlook](index=17&type=section&id=VI.%20Operating%20Review%20and%20Outlook) This section provides a comprehensive review of the Group's business performance, human resources, financial position, and future strategic outlook [Business Review](index=17&type=section&id=Business%20Review) 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](index=131&type=chunk) - 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](index=131&type=chunk) - 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](index=101&type=chunk) [6.1.1 Overall Operating Performance](index=17&type=section&id=6.1.1%20Overall%20Operating%20Performance) 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](index=17&type=section&id=6.1.2%20Digital%20Government%20Sector) 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](index=62&type=chunk) - 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](index=62&type=chunk) [6.1.3 Digital Enterprise Sector](index=17&type=section&id=6.1.3%20Digital%20Enterprise%20Sector) 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](index=44&type=chunk) - Signed projects with municipal state-owned enterprises including Bank of Beijing, Beijing Rural Commercial Bank, and Xianglong Assets[44](index=44&type=chunk) [6.1.4 Digital Healthcare Sector](index=18&type=section&id=6.1.4%20Digital%20Healthcare%20Sector) 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](index=132&type=chunk) - The medical insurance mobile payment system was launched, enabling online payment for appointment registration and in-clinic fees at **26** hospitals[132](index=132&type=chunk) - Promoted the construction of credit-based medical treatment platforms in **29** hospitals in Haidian District and completed HIS system upgrades for Chaoyang Hospital[132](index=132&type=chunk) [6.1.5 Digital Governance Sector](index=18&type=section&id=6.1.5%20Digital%20Governance%20Sector) 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](index=133&type=chunk) - 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](index=133&type=chunk) [Product Research and Development](index=18&type=section&id=Product%20Research%20and%20Development) 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](index=122&type=chunk) - 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](index=122&type=chunk) - 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](index=122&type=chunk) [Human Resources](index=18&type=section&id=Human%20Resources) 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](index=46&type=chunk) - 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](index=46&type=chunk) - 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](index=46&type=chunk) [Financial Review](index=18&type=section&id=Financial%20Review) 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](index=48&type=chunk) - **81.32%** of the Group's projects are with government clients[125](index=125&type=chunk) - Currently, **97.11%** of the Group's operating revenue is concentrated in the Beijing area[125](index=125&type=chunk) [6.3.1 Revenue Composition and Business Distribution](index=19&type=section&id=6.3.1%20Revenue%20Composition%20and%20Business%20Distribution) 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](index=125&type=chunk) - Currently, **97.11%** of the Group's operating revenue is concentrated in the Beijing area[125](index=125&type=chunk) [6.3.2 Assets, Equity, and Liquidity](index=19&type=section&id=6.3.2%20Assets%2C%20Equity%2C%20and%20Liquidity) 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](index=19&type=section&id=6.3.3%20Bank%20Deposits%20and%20Cash) 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](index=126&type=chunk) - 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](index=126&type=chunk) - No bank structured deposits were purchased as of the end of this period[126](index=126&type=chunk) [6.3.4 Performance of Associates](index=19&type=section&id=6.3.4%20Performance%20of%20Associates) 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](index=50&type=chunk) [Capital Expenditure, Liquidity, and Financial Resources](index=19&type=section&id=Capital%20Expenditure%2C%20Liquidity%2C%20and%20Financial%20Resources) 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](index=49&type=chunk) - The Group's current ratio (total current assets to total current liabilities) was **1.44**, largely consistent with the prior year[49](index=49&type=chunk) [Equity Investments](index=19&type=section&id=Equity%20Investments) 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](index=42&type=chunk) - Currently, the case is still under trial[42](index=42&type=chunk) [Future Outlook](index=18&type=section&id=Future%20Outlook) 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](index=135&type=chunk) - Further deepen reform and development, focus on core businesses, strengthen risk prevention and control, and achieve high-quality corporate development[135](index=135&type=chunk)

Financial Performance - In 2022, the total revenue of Capital Information Development Co., Ltd. was RMB 1,422,953,000, a slight decrease of 0.3% compared to RMB 1,426,774,000 in 2021[11] - The net profit attributable to shareholders for 2022 was RMB 128,492,000, representing a significant increase of 600.5% from RMB 18,346,000 in 2021[11] - Basic earnings per share for 2022 remained stable at RMB 4.4, unchanged from 2020 and 2021[11] - The company achieved a revenue of RMB 1,422.95 million in 2022, a decrease of 0.27% compared to the previous year[30] - The profit attributable to the company's owners was RMB 128.49 million, representing a growth of 1.85% after excluding goodwill impairment effects[30] - Gross profit for the year was RMB 533.40 million, representing an increase of 4.67% year-on-year[38] - The company’s software development and services revenue reached RMB 678.31 million, an increase of 8.61%, accounting for 47.67% of total revenue[40] - The company reported a final dividend of RMB 1.75 per share for the year ended December 31, 2022, totaling RMB 507.2 million, compared to RMB 84 million in 2021[91] Assets and Liabilities - The total assets of the company increased to RMB 2,540,643,000 in 2022, up from RMB 2,378,501,000 in 2021, reflecting a growth of 6.8%[11] - The company's net asset value rose to RMB 1,321,218,000 in 2022, an increase of 11.2% from RMB 1,188,752,000 in 2021[11] - The current ratio for 2022 was 1.45, indicating a slight decrease from 1.61 in 2021, suggesting a tighter liquidity position[11] - Total assets increased by 6.82% to RMB 2,540.64 million as of December 31, 2022[41] - The company’s equity attributable to owners rose by 10.54% to RMB 1,262.57 million[41] Business Operations and Strategy - Capital Information has established three advanced technology laboratories focusing on AI, big data, and blockchain[7] - The company aims to expand its services in various sectors, including government, healthcare, and finance, leveraging its extensive experience in e-government services[6] - The company is focused on advancing its "one core, two platforms, and four domains" business layout to enhance operational capabilities[25] - The company is committed to continuous digital transformation and improving management systems to enhance business development quality[27] - The company has undertaken multiple large-scale information technology application projects in Beijing and nationwide, leveraging its extensive experience in information services[89] Recognition and Awards - The company has been recognized as one of the top ten leading IT service enterprises in China, highlighting its strong market position[8] - The company was recognized as one of the "Top 100 Digital Economy Enterprises in Beijing" in 2022[28] - The company was awarded the "2022 ICT Industry Enterprise Award" and the "2022 Beijing Software Core Competitiveness Enterprise" title[26] Research and Development - The company plans to strengthen its research team and continue developing core technologies and innovative products to ensure rapid business growth[36] - The company is investing in R&D, allocating $I million towards developing new technologies and products[7] Partnerships and Collaborations - The company entered into an ecological partnership with Alibaba Cloud to enhance its service capabilities[20] - The company has established partnerships with 180 hospitals for commercial insurance settlement agreements[34] Corporate Governance - The board of directors presented the audited consolidated financial statements for the year ended December 31, 2022[88] - The company has established five professional committees under the board, including the Audit Committee and the Strategy Committee, to support efficient decision-making[129] - The independent directors have actively participated in board and shareholder meetings, ensuring that resolutions are made independently, fairly, and objectively[128] - The company has adhered to legal and regulatory requirements regarding related party transactions, ensuring compliance and transparency in disclosures[131] Risk Management - The company has implemented effective risk control measures and is capable of accurately identifying and responding to operational risks[183] - The management team has been actively monitoring operational risks and the effectiveness of the internal control system[152] Employee and Compensation - The company’s employee costs amounted to approximately RMB 491.84 million, up from RMB 450.21 million in 2021[37] - The total compensation for the executive directors ranges from RMB 116.37 million to RMB 145.78 million, with the chairman receiving RMB 137.77 million[192] Future Outlook - Future outlook remains positive, with management expressing confidence in achieving long-term growth targets[10]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 CAPINFO COMPANY LIMITED* 首都信息發展股份有限公司 （於中華人民共和國註冊成立之股份有限公司） （股份代號：1075） 截至2022年12月31日止年度之綜合業績 • 本公司擁有人應佔溢利為人民幣128.49百萬元。 • 營業收入減少0.27%至人民幣1,422.95百萬元。 • 每股基本盈利為每股人民幣4.4分，2021年為每股人民幣0.6分。 • 董事會建議派付截至2022年12月31日止年度之末期股息每股人民幣1.75分（2021 年：每股人民幣0.29分），合共約人民幣50.72百萬元，有待股東於即將舉行的股東 週年大會上批准 首都信息發展股份有限公司（「本公司」）董事會（「董事會」）欣然宣佈本公司及其附屬公司 （統稱「本集團」）截至2022年12月31日止年度綜合財務業績及財務狀況，連同2021年同期 之比較數字。該等財務業績及財務狀況已經執業會計師致同會計師事務所（特 ...

Financial Performance - For the first half of 2022, the group achieved operating revenue of RMB 475.87 million, an increase of 11.35% compared to the same period last year[12]. - The gross profit for the same period was RMB 174.15 million, reflecting a growth of 10.74% year-on-year[12]. - The net profit attributable to shareholders was RMB 34.25 million, showing a slight increase of 0.12% compared to the previous year[12]. - The group’s software development and services revenue was RMB 263.58 million, up 3% year-on-year, accounting for 56.55% of total revenue[12]. - The system integration revenue surged by 87.70% to RMB 76.59 million, representing 16.43% of total revenue[12]. - Operating profit for the first half of 2022 reached CNY 47.46 million, up from CNY 45.21 million year-on-year, reflecting a growth of 5.0%[53]. - The total profit for the first half of 2022 was CNY 46.28 million, an increase of 8.5% from CNY 43.86 million in the same period last year[53]. - The company reported a total comprehensive income of 34,249,022.09 RMB during the first half of the year[60]. - The company reported a net profit attributable to shareholders of RMB 34,249,022.09 for the first half of 2022[120]. - Basic and diluted earnings per share remained unchanged at RMB 0.0118 for both the first half of 2022 and 2021[162]. Assets and Liabilities - The group’s total assets as of June 30, 2022, were RMB 2,298.32 million, a decrease of 8.71% from the previous year[14]. - The company’s total assets decreased to CNY 2,298,323,343.95 from CNY 2,378,501,521.95, a decline of 3.36%[51]. - Total current assets amounted to CNY 1,629,553,262.37, a decrease of 12.74% from CNY 1,867,672,756.56 as of December 31, 2021[45]. - Total non-current assets increased to CNY 668,770,081.58 from CNY 510,828,765.39, reflecting a growth of 30.88%[47]. - Total liabilities decreased to CNY 1,078,454,168.06 from CNY 1,189,748,534.87, a decline of 9.35%[50]. - The total amount of confirmed capital commitments as of June 30, 2022, was RMB 87,834,580.39, an increase from RMB 62,824,726.12 at the end of 2021[156]. Cash Flow - Cash flow from operating activities showed a net outflow of CNY 62.81 million, an improvement from a net outflow of CNY 110.89 million in the same period last year[56]. - Total cash inflow from operating activities was CNY 690.35 million, compared to CNY 655.00 million in the previous year, marking an increase of 5.4%[56]. - Cash and cash equivalents decreased to CNY 748,495,870.41 from CNY 1,059,765,313.71, representing a decline of 29.25%[45]. - The ending balance of cash and cash equivalents was 741,275,142.63 RMB, down from 877,870,388.09 RMB year-over-year[58]. - Cash outflow from investment activities was CNY 196.76 million, compared to an inflow of CNY 175.67 million in the same period last year, indicating a shift in investment strategy[56]. - The net cash flow from financing activities was -39,558,941.26 RMB, compared to -13,426,017.32 RMB in the same period last year, indicating a significant increase in cash outflows[58]. Governance and Compliance - The company has established a comprehensive and transparent management system, strictly adhering to the corporate governance code as per the Listing Rules[18]. - The board of directors consists of 12 members, including 3 executive directors, 5 non-executive directors, and 4 independent non-executive directors, ensuring a diverse professional background[20]. - The company has implemented an effective internal control management system to enhance operational efficiency[19]. - All directors confirmed compliance with the trading standards set forth in the company's securities trading code during the reporting period[23]. - The company has provided directors with liability insurance to mitigate potential legal responsibilities[22]. - The audit committee has established a work plan for 2022 to ensure ongoing financial oversight and risk management[24]. Research and Development - Research and development expenses increased to CNY 32.63 million, compared to CNY 30.19 million in the same period last year, representing an increase of 8.1%[52]. Related Party Transactions - The company reported related party procurement of 54.98 million RMB for network security systems and services in the first half of 2022, a decrease of 45% from 100.03 million RMB in the same period of 2021[137]. - The company provided related party sales of 306.83 million RMB for network systems and technical services to Beijing Guozi Company in the first half of 2022, significantly up from 38.49 million RMB in the same period of 2021, representing an increase of 694%[138]. - The accounts receivable from Beijing Guozi Company amounted to 3,391,796.21 RMB as of June 30, 2022, with a bad debt provision of 161,133.63 RMB, compared to 505,456.58 RMB with a bad debt provision of 23,030.26 RMB at the end of 2021[146]. Market Position and Strategy - The company operates in the software industry, focusing on network application services and system integration[66]. - The company aims to enhance its service offerings through new technology developments[170]. - The company has ongoing investigations related to suspected contract fraud by original shareholders of an acquired company[161].

Goodwill Impairment - The goodwill impairment for Rongtong Information was recognized at RMB 107.7984 million due to market saturation in the tobacco industry and the impact of regional COVID-19 lockdowns [2]. - The recoverable amount of the goodwill and related asset group was assessed at RMB 22.99 million, while the book value was RMB 130.9184 million, resulting in a significant impairment [4]. - The assessment method used for goodwill impairment was consistent with previous years, employing a discounted cash flow approach based on a five-year net cash flow forecast [4]. - The impairment of goodwill does not affect other information disclosed in the 2021 annual report and performance announcement [8]. Revenue and Growth Projections - Rongtong Information's operating revenue decreased by approximately 52% compared to the previous year, leading to a downward adjustment in projected sales growth rates for 2022 to 2026, estimated at 10%-24% [5]. Business Strategy and Development - The company is actively seeking new business growth points, focusing on digital transformation and the application of digital currency technologies [8]. - The external environment for Rongtong Information's core business is becoming increasingly complex, posing challenges for business development [3]. - The company has a strong market recognition and technical accumulation in the tobacco and corporate financial information sectors, which it believes will help navigate current challenges [8]. - The company plans to expand its government and enterprise customer base to enhance performance and achieve higher quality development [8]. - The company continues to monitor industry trends and explore new business types in the tobacco industry funding supervision sector [8].

Financial Performance - Total revenue for 2021 reached RMB 1,426,774,000, representing a 1.1% increase from RMB 1,410,565,000 in 2020[21] - The net profit attributable to shareholders for 2021 was RMB 18,346,000, a significant decrease of 85.6% compared to RMB 127,490,000 in 2020[21] - Earnings per share for 2021 dropped to RMB 0.6 from RMB 4.4 in 2020, reflecting a decline of 86.4%[21] - Total assets as of 2021 amounted to RMB 2,378,501,000, down from RMB 2,503,124,000 in 2020, indicating a decrease of 5%[21] - The company achieved a revenue of RMB 1,426.77 million, representing a year-on-year growth of 1.15%[41] - The profit attributable to the owners of the company was RMB 18.35 million, and after excluding goodwill impairment, it was RMB 126.15 million[41] - The company achieved operating revenue of RMB 1,426.77 million, a year-on-year increase of 1.15%[64] - Gross profit reached RMB 509.61 million, reflecting a growth of 3.21% compared to the previous year[64] - The company reported other income of RMB 18.15 million, a 10.64% increase year-on-year, primarily from property leasing[65] - Software development and services revenue was RMB 624.53 million, up 5.16% and accounting for 43.77% of total revenue[66] - Total assets decreased by 4.98% to RMB 2,378.50 million, while equity attributable to shareholders fell by 3.3% to RMB 1,142.22 million[68] - Cash and cash equivalents increased by 24.91% to RMB 1,059.77 million[69] Corporate Governance - The company has a diverse board with members holding advanced degrees in management, finance, and law, enhancing its governance structure[82][90][92] - The company’s independent directors include professionals with backgrounds in law, finance, and engineering, contributing to strategic oversight[92][96][98] - The company’s supervisory board includes Ms. Yu Nan, appointed in June 2021, who has a strong background in auditing and compliance[101] - The company emphasizes the importance of compliance and risk management, as evidenced by the qualifications of its board members[92][103] - The company is focused on enhancing its governance framework through the appointment of experienced professionals in key roles[82][90] - The board's composition reflects a commitment to diversity in expertise, with members from various sectors including finance, law, and engineering[92][96] - The company aims to leverage the expertise of its directors to drive strategic initiatives and ensure robust oversight[82][90] - The independent auditor confirmed that there were no issues regarding the approval of related party transactions by the board of directors and compliance with the company's pricing policy[173] - The independent non-executive directors confirmed that the nomination and remuneration processes for directors complied with relevant laws and regulations[186] - The company has a total of 4 independent non-executive directors, meeting the minimum requirement set by the listing rules[180] - The independent auditor's reappointment was approved by the audit committee, ensuring compliance with legal and regulatory requirements[187] - The supervisory board confirmed that the financial reports accurately reflect the company's financial status and operational results, adhering to relevant laws and regulations[194] - The company maintained compliance with legal and regulatory requirements in information disclosure and related transactions, ensuring fair and timely information dissemination[196] - The internal control system was deemed effective, with no major incidents reported during the year, and risk management focused on strategic transformation and customer satisfaction[197] - The company adopted the corporate governance code as per the listing rules, continuously improving governance practices[199] - The supervisory board monitored the execution of shareholder meeting resolutions, confirming that management acted in accordance with these decisions[195] - The supervisory board will enhance supervision quality and maintain the interests of the company, shareholders, and employees in the coming year[197] Business Operations and Strategy - The company has over 1,800 employees and operates 6 subsidiaries and 3 associated companies, covering multiple sectors including government and healthcare[18] - The company has established three advanced technology laboratories focusing on AI, big data, and blockchain[18] - The company aims to enhance its position as a leading smart city and data industry operator, leveraging its extensive experience in e-government services[18] - The company has received numerous awards, including recognition as one of China's top IT service providers and a leading brand in the internet sector[18] - The company is actively involved in major national and local information technology projects, contributing to significant events such as the Beijing Olympics and the APEC summit[18] - The company has obtained qualifications for providing cloud services to government departments and has been recognized as a national high-tech enterprise[38][39] - The company completed the construction of the first district-level macroeconomic analysis platform in Beijing and upgraded the 12345 citizen service hotline project[38] - The company has launched several new products, including the CAPINFO EA4.0 and various cloud-based platforms, enhancing its core competitiveness in smart governance and healthcare[44] - The company is actively expanding into the digital transformation market for enterprises and has achieved a target of switching 18.4 million insured individuals to the new Beijing medical insurance platform[44] - The company has established itself as a vice-chairman unit in several industry alliances, enhancing its influence in the digital economy sector[45] - The company is focused on risk prevention and control, optimizing management mechanisms to ensure stable operations of major systems[45] - The company is preparing for the Beijing Winter Olympics, ensuring all venue coverage and emergency plans are in place[43] - The company successfully developed the "CAPINFO EA" and IoT management platforms, enhancing its technological capabilities[48] - The "首信通" product was successfully implemented in over 40 units in Beijing, benefiting more than 30,000 users[48] - The company secured the qualification as a municipal-level government cloud service provider in Beijing, expanding its business coverage[51] - The integrated network platform connected over 15,000 users, with plans for further expansion in key areas[53] - The company signed over 40 projects with provincial and ministerial departments in the human resources management sector, ensuring stable operations[54] - The new medical insurance information platform successfully transitioned 18.4 million insured individuals to hospital settlement services[56] - The company is advancing its "智慧治理" initiatives, including the intelligent upgrade of the 12345 hotline and the development of smart building projects[57] - The company is accelerating its entry into the enterprise digital transformation market, completing the localization of 16 enterprise cloud systems[58] - The company is focused on providing comprehensive digital information infrastructure services, aiming to enhance risk control capabilities and lead high-quality development[189] Related Party Transactions - The company has established management systems for related party transactions, ensuring compliance and oversight[144] - The total revenue from related party transactions amounted to RMB 9.90 million for network system services provided by Beijing Shouxin Network Technology Co., Ltd.[145] - The company incurred expenses of RMB 5.84 million for purchasing network security systems and services from Beijing Digital Certification Co., Ltd.[145] - The company has a continuous related party transaction with Shouxin Technology, providing network system and maintenance services, with an annual transaction cap of RMB 6.3 million from 2019 to 2021[148] - The company signed a network system service agreement with Wangchuang Company, with an annual transaction cap of RMB 5.0 million from 2019 to 2021[149] - The total combined transaction cap for related party transactions between the company, Shouxin Technology, and Wangchuang Company is RMB 11.3 million for the years 2019 to 2021[152] - The company has a continuous related party transaction with Digital Certification Company for network security system development, with an annual transaction cap of RMB 10.0 million from 2020 to 2022[153] - The company has a separate agreement with Digital Certification Company for network security systems and services, with an annual transaction cap of RMB 15.0 million from 2020 to 2022[156] - The company has a continuous related party transaction with Beijing Guozi Company, which holds approximately 63.31% of the company's issued share capital[162] - The agreements with related parties have been publicly disclosed in accordance with listing rules[148] - The board of directors has determined that all related party transactions are conducted on normal commercial terms and are in the overall interest of shareholders[150] Shareholder Information - The major shareholder, Beijing State-owned Assets Management Co., Ltd., holds 1,834,541,756 shares, representing 63.31% of the issued share capital[138] - The top five suppliers accounted for less than 30% of the total procurement, while the top five customers contributed approximately 25.10% of total revenue, with the largest customer accounting for about 11.84%[138] - The company reported a final dividend of RMB 0.29 per share for the year ended December 31, 2021, down from RMB 1.98 per share in 2020, totaling RMB 84 million compared to RMB 573.8 million in the previous year[120] - The company has maintained a continuous cash dividend policy since 2008, with total dividends amounting to RMB 553.88 million (including tax) to date[188] - The company has not proposed any interim dividends for the reporting period[120] - The company has not engaged in any guarantees or fund occupation by controlling shareholders during the reporting period[184]

Financial Performance - For the first half of 2021, the company achieved a revenue of RMB 427.37 million, representing a year-on-year growth of 1.58%[3] - The net profit attributable to the company's owners for the same period was RMB 34.21 million, an increase of 17.90% compared to the previous year[3] - Gross profit for the same period was RMB 157.25 million, a decrease of 4.84% year-on-year[12] - Other income amounted to RMB 8.85 million, an increase of 18.14%, primarily from property leasing income from the Digital Beijing Building, accounting for 2.07% of total revenue[12] - Revenue from software development and services was RMB 255.91 million, an increase of 42.51%, making up 59.88% of total revenue[12] - Revenue from data processing services was RMB 116.38 million, a decrease of 10.73%, accounting for 27.23% of total revenue[12] - Total operating revenue for the first half of 2021 was RMB 427,369,174.41, a slight increase of 1.53% compared to RMB 420,727,978.28 in the same period of 2020[45] - Operating profit for the first half of 2021 reached RMB 45,205,962.98, up 17.9% from RMB 38,424,406.81 in the previous year[46] - Net profit attributable to the parent company was RMB 34,208,609.55, representing a 17.5% increase from RMB 29,016,151.20 in the same period last year[46] Assets and Liabilities - Total assets as of June 30, 2021, were RMB 2,517.71 million, an increase of 5.34% year-on-year[13] - Cash and cash equivalents were RMB 896.56 million, an increase of 40.91% compared to the previous year[13] - Total liabilities as of June 30, 2021, amounted to RMB 1,294,653,603.57, an increase from RMB 1,259,321,434.50 at the end of 2020[44] - Current liabilities totaled RMB 1,242,957,744.37, showing a slight increase from RMB 1,206,085,861.54 at the end of 2020[44] - The total equity attributable to shareholders was RMB 1,158,081,037.66, down from RMB 1,181,219,319.93 at the end of 2020[44] - The company reported a significant increase in lease liabilities, rising from RMB 26,451,390.24 at the end of 2020 to RMB 29,175,235.07 by June 30, 2021, an increase of approximately 10.3%[106] Cash Flow - Operating cash flow for the first half of 2021 was -110,889,399.46 RMB, a decrease from 35,773,106.50 RMB in the same period last year[49] - Cash inflow from operating activities totaled 655,002,199.51 RMB, compared to 591,713,405.76 RMB in the previous year, representing an increase of approximately 10.7%[49] - Cash outflow from operating activities increased to 765,891,598.97 RMB, up from 555,940,299.26 RMB, indicating a rise of about 37.7%[49] - Net cash flow from investment activities improved to 175,674,491.52 RMB, compared to -248,313,439.89 RMB in the same period last year[49] - The company reported a net decrease in cash flow from financing activities of -13,426,017.32 RMB, compared to -12,462,767.66 RMB in the previous year[52] Research and Development - The company is advancing new technology innovations, including a blockchain infrastructure platform and a big data management platform[9] - Research and development expenses for the first half of 2021 were RMB 30,185,614.61, up from RMB 25,601,082.24 in the same period of 2020, indicating a focus on innovation[45] Legal and Compliance - The company is currently involved in legal proceedings regarding a suspected contract fraud case related to a previous acquisition, which remains unresolved[39] - The company has filed a lawsuit against the original shareholders of Rongtong Information, seeking to annul a share transfer agreement signed in July 2014[141] - The company is involved in ongoing litigation regarding a contract dispute with Xiamen Ruitailong, with the court ruling in favor of the company[140] - The company continues to focus on protecting shareholder interests through legal actions against perceived fraudulent activities[141] Related Party Transactions - The group engaged in related party transactions with joint ventures and associates, including Beijing Digital Certification Co., Ltd. and Beijing Cultural Sports Technology Co., Ltd.[117] - The group reported related party sales of network systems and services to Digital Certification and its subsidiaries totaling RMB 114,500, compared to RMB 89,600 in the same period last year, reflecting a year-on-year increase of approximately 28%[124] - The group’s related party transactions included hardware and related services procurement from Beijing Software and Information Service Exchange, amounting to RMB 1,900 in the first half of 2021[122] Employee and Management - As of June 30, 2021, the company employed 1,703 staff, with employee costs amounting to approximately RMB 196.53 million[10] - Short-term benefits paid to key management personnel amounted to RMB 1,959,919.34, an increase from RMB 1,826,891.36 in the same period of 2020[129] Market Expansion and Strategy - The company aims to expand its market presence in "Smart Government," "Smart Medical," "Smart Operations," and "Smart Enterprises" sectors across the country[11] - The company plans to enhance its core competitiveness by promoting new technologies and product innovations in the second half of 2021[11] Taxation - The company has maintained a consistent tax rate of 15% for its main entity, benefiting from high-tech enterprise certification[71] - The deferred income tax expense for the first half of 2021 was RMB -11,086,172.63, compared to RMB -1,846,974.87 in the same period of 2020, indicating a significant change in tax liabilities[115]

Financial Performance - The company achieved a revenue of RMB 1,410.57 million in 2020, representing a year-on-year growth of 5.95%[20] - Net profit attributable to the owners of the parent company was RMB 127.49 million, maintaining stable performance despite challenges[20] - The total assets of the company reached RMB 2,503.12 million in 2020, an increase from RMB 2,314.58 million in 2019[10] - The company maintained a current ratio of 1.60 in 2020, indicating good short-term financial health[10] - The company’s earnings per share remained stable at RMB 4.4, consistent with the previous year[10] - The company’s dividend per share for the year was RMB 1.98, reflecting a commitment to returning value to shareholders[10] - Gross profit for the year was RMB 493.79 million, an increase of 8.34% compared to the previous year[51] - The company reported a total dividend distribution of RMB 573.8 million for the year ended December 31, 2020, maintaining the same amount as in 2019[78] - The company did not recommend a mid-term dividend distribution during the reporting period, consistent with 2019[79] Business Strategy and Innovation - The company has established a "one core, two platforms, four domains" innovative business structure focusing on big data and AI[9] - The company plans to enhance its capabilities in emerging technologies such as blockchain and artificial intelligence to become a leading operator in smart city and data industries[9] - The company is focusing on the integration of big data and AI to drive core business development, aiming to enhance service capabilities in smart governance, healthcare, operations, and enterprises[28] - The company aims to become a leading operator in smart cities and data industries, with a focus on high-quality development during the "14th Five-Year Plan" period[28] - The company is actively promoting blockchain technology development, establishing a blockchain service platform for urban management[25] - The company has successfully developed and launched the "Health Treasure" application service system, enhancing access control across various public venues[30] Awards and Recognition - The company has received multiple accolades, including being recognized as one of China's top 100 internet companies and a leading brand in cloud computing services[8] - The company won multiple awards, including being recognized as one of the top 100 enterprises in Beijing's software and information service industry in 2020[27] - The company received multiple awards for its contributions during the pandemic, including the "Outstanding Contribution Award" and "Smart Epidemic Prevention Leadership Award"[35] - The company was recognized as a "High-tech Enterprise" by the Zhongguancun High-tech Committee, enhancing its credibility in the industry[36] Operational Achievements - The company has successfully built a broadband cluster network in key areas for the Winter Olympics, ensuring communication support for the event[20] - The company has expanded its cloud services to over ten municipal state-owned enterprises, creating an integrated cloud service solution[25] - The company successfully completed the emergency engineering project for an additional 300 beds at Beijing Ditan Hospital, receiving high praise for its efforts[36] - The "Smart Government Services" sector achieved first place in provincial government website performance evaluation for the 14th consecutive year[41] - The healthcare system supported real-time settlement for 25 million insured individuals and over 26 million medical accounts[42] - The "Smart Medical Health" system has been upgraded to support cross-regional medical settlements in the Beijing-Tianjin-Hebei area[42] - The company signed over ten provincial and ministerial projects in 2020, indicating strong national expansion efforts[41] Research and Development - The company is investing heavily in R&D, with a budget allocation of 150 million for new technologies[62] - The company obtained 5 patents and registered 380 software copyrights during the reporting period[47] - New product launches are expected to contribute an additional 300 million in revenue over the next year[62] Market and Customer Engagement - The company reported a significant increase in user data, with a year-over-year growth of 25% in active users[62] - Customer satisfaction ratings have improved, with a reported increase of 18% in positive feedback from users[62] - A new marketing strategy has been implemented, aiming to increase brand awareness by 30% in the next year[62] Corporate Governance - The company has established five professional committees under the board to enhance decision-making efficiency in strategic, financial, and legal matters[142] - The company has adopted the corporate governance code as per the listing rules, ensuring adherence to all governance standards[158] - The board of directors consists of 12 members, including 3 executive directors, 5 non-executive directors, and 4 independent non-executive directors[168] - The company has a diverse board composition, with members from various professional backgrounds including finance, law, and management[168] - The company has implemented a series of governance documents to ensure compliance and effective operation of the board and committees[160] Risk Management - The company has implemented a comprehensive risk control system, enhancing its ability to manage significant risks and improve operational standards[26] - The company has focused on enhancing its internal control and risk management systems, aligning with strategic transformation and regulatory requirements[156] - The company has established effective internal control management and internal audit procedures, successfully identifying and responding to operational risks[193] Related Party Transactions - The company reported a continuous related party transaction with Beijing Shouxin Technology, providing network system and maintenance services, with an annual transaction limit of RMB 6.3 million for 2019-2021[104] - The company has a continuous related party transaction with Digital Certification Company, with an annual transaction limit of RMB 10.0 million for 2020-2022, focusing on the development of network security systems and products[112] - The company’s board has confirmed that all related party transactions were conducted on normal commercial terms and are in the best interest of shareholders[108] Future Outlook - The company has outlined a future outlook with a projected revenue growth of 20% for the next fiscal year[62] - Market expansion plans include entering three new international markets by the end of the next fiscal year[62] - The company is considering strategic acquisitions to enhance its market position, targeting firms with complementary technologies[62]

Financial Performance - For the first half of 2020, the company achieved revenue of RMB 420.73 million, a year-on-year increase of 1.81%[3] - The profit attributable to the company's owners was RMB 29.02 million, a decrease of 13.08% compared to the same period last year, primarily due to losses from joint ventures[3] - Excluding the impact of joint ventures, the profit attributable to the company's owners would be approximately RMB 33.07 million, representing a year-on-year increase of 24.04%[3] - Gross profit for the same period was RMB 165.25 million, reflecting a growth of 1.67% year-on-year[20] - Other income amounted to RMB 7.49 million, a decrease of 1.27% year-on-year, mainly from property leasing income[23] - Revenue from software development and services was RMB 179.57 million, an increase of 27.85%, accounting for 42.68% of total revenue[23] - Revenue from data processing services was RMB 130.37 million, a decrease of 1.27%, representing 30.99% of total revenue[23] - Total operating revenue for the first half of 2020 was RMB 420,727,978.28, an increase of 1.12% compared to RMB 413,251,783.14 in the same period last year[75] - The total profit for the first half of 2020 was RMB 38,161,676.21, a decrease of 7.2% compared to RMB 41,136,836.52 in the same period last year[78] - The total comprehensive income for the first half of 2020 was RMB 31,047,587.93, down from RMB 34,497,790.37 in the previous year[80] Assets and Liabilities - Total assets as of June 30, 2020, were RMB 2,390.13 million, an increase of 4.73% year-on-year[25] - Cash and cash equivalents, including bank deposits, were RMB 636.26 million, a decrease of 5.91% compared to the previous year[25] - Total liabilities reached RMB 1,268,067,240.33, up from RMB 1,166,185,498.38, marking an increase of around 8.74%[73] - The company's equity attributable to shareholders decreased to RMB 1,077,274,066.56 from RMB 1,105,640,019.96, a decline of about 2.57%[73] - The inventory increased to RMB 421,490,197.23 from RMB 327,227,019.14, showing a growth of approximately 28.83%[70] - The company reported a significant increase in contract liabilities, which rose to RMB 605,801,463.35 from RMB 465,215,366.56, representing an increase of about 30.16%[73] Cash Flow - The company reported a net cash flow from operating activities of RMB 35,773,106.50, a significant improvement from a negative cash flow of RMB -113,234,499.41 in the same period last year[82] - Cash flow from investing activities showed a net outflow of RMB -248,313,439.89, worsening from RMB -49,694,020.78 in the same period last year[82] - The total cash outflow related to leases for the period was RMB 21,867,447.35[157] Employee and Operational Metrics - The group employed 1,765 staff members as of June 30, 2020, with employee costs amounting to approximately RMB 167.57 million during the reporting period[18] - Research and development expenses increased to RMB 25,601,082.24, up 10.0% from RMB 23,307,025.94 in the previous year[75] Governance and Compliance - The company has established a governance structure including a shareholders' meeting, board of directors, and supervisory board to ensure effective management[94] - The company has established a set of policies and procedures to comply with insider information disclosure responsibilities, with no incidents of insider information leakage reported during the period[51] - The internal control and risk management system was deemed sufficient and effective as of June 30, 2020, to protect shareholder investments[50] Market and Strategic Initiatives - The company plans to strengthen its "three platforms" business and accelerate new infrastructure construction in the second half of the year[19] - The company is actively expanding its market presence outside Beijing, winning projects in Hebei Province and other regions[7] - The company is focusing on developing a big data platform and ensuring the stable operation of its integrated network platform[19] Legal and Regulatory Matters - The company has ongoing litigation regarding a suspected contract fraud involving a previous acquisition, which may impact future operations, though the exact effects remain uncertain[68] Related Party Transactions - The group has multiple related parties, including Beijing Aiyuhua Maternal and Child Hospital Co., Ltd. and Beijing Anxin Tianxing Technology Co., Ltd., which share the same ultimate controlling party[198] - The group maintains relationships with various entities such as Beijing Software and Information Service Exchange Co., Ltd. and Beijing National Aquatics Center Co., Ltd., all under the same ultimate controlling party[200]

Business Structure and Operations - Capital Information Development Co., Ltd. has established a "three platforms + five domains" innovative business structure, focusing on big data service platforms, integrated government networks, and cloud solutions[12]. - The company has 1,787 employees and operates through 6 subsidiaries, 3 affiliated companies, and 9 branches, covering multiple sectors including government, healthcare, and finance[14]. - The company is recognized as a key software enterprise in national planning, emphasizing its role in the development of smart city services[12]. - The company has established AI, blockchain, and big data research centers to drive innovation in technology[12]. - The company has expanded its business into five key areas, including smart government services and smart city management, with multiple upgrade projects supporting performance growth[37]. Financial Performance - The company's revenue for 2019 reached RMB 1,331,357,000, representing a growth of approximately 18.5% compared to 2018[18]. - The total comprehensive income attributable to the owners of the company for 2019 was RMB 127,648,000, an increase of 105.5% from RMB 62,169,000 in 2018[18]. - Basic earnings per share for 2019 was RMB 4.4, up from RMB 2.1 in 2018, marking a growth of 109.5%[18]. - The total assets of the company as of 2019 amounted to RMB 2,314,581,000, an increase of 4.7% from RMB 2,210,348,000 in 2018[18]. - The net asset value for 2019 was RMB 1,148,396,000, reflecting a growth of 10.3% compared to RMB 1,041,136,000 in 2018[18]. - The current ratio for 2019 improved to 1.56 from 1.47 in 2018, indicating better short-term financial health[18]. - The company declared a final dividend of RMB 1.98 per share for 2019, an increase from RMB 0.97 in 2018[18]. - The net debt to equity ratio remained at 0% for 2019, indicating no reliance on debt financing[18]. - The company achieved a revenue of RMB 1.331 billion in 2019, representing a year-on-year growth of 17.66%[34]. - Net profit attributable to the parent company reached RMB 128 million, a significant increase of 105.32% compared to the previous year[34]. - Gross profit for the same period was RMB 455.77 million, an increase of 17.40% year-on-year[64]. - Shareholders' profit attributable to the company was RMB 127.65 million, up 105.32% from the previous year[64]. Innovation and Technology Development - The company is committed to developing smart healthcare solutions, focusing on medical institution information systems and insurance settlement platforms[14]. - The company has made significant advancements in the development of its "Big Data Platform," enhancing its underlying architecture and resource management capabilities[50]. - The "Shouxin Cloud" platform business experienced breakthrough development, providing services to over 100 government units[50]. - The company has launched a credit medical settlement platform, the first of its kind in the city, facilitating connections among various medical and financial institutions[37]. - The company has developed a core product, the "Shouxin Anke Government and People's Livelihood Big Data Platform," establishing a healthcare big data platform and a 12345 big data platform with independent intellectual property rights[34]. Market Expansion and Strategic Growth - The company is focusing on market expansion and new technology development to drive future growth[19]. - Strategic acquisitions are being considered to enhance the company's competitive position in the market[19]. - The company is actively expanding its market presence, aiming for national market penetration and industry recognition[41]. - The company plans to enhance competitiveness and innovation while focusing on high-quality development across its business platforms[61]. Governance and Management - The company appointed several non-executive directors with extensive backgrounds in engineering and finance, enhancing its governance structure[80][81][84][90]. - The board includes independent directors with significant experience in finance and law, which strengthens oversight and strategic decision-making[89][90][94]. - The management team has a strong academic foundation, with multiple members holding advanced degrees in management, finance, and engineering, which supports informed decision-making[80][81][89]. - The company is committed to enhancing its technological capabilities, as evidenced by the expertise of its directors in telecommunications and semiconductor industries[80][90]. - The board's composition reflects a balance of technical and financial expertise, which is crucial for navigating the complexities of the market[89][94]. Related Party Transactions and Legal Matters - The company has established a management system for related party transactions, with significant transactions including network system services amounting to RMB 11.3 million and office rental expenses of RMB 5.9 million[135]. - The company has ongoing litigation regarding a request for the enforcement of a share transfer agreement, with claims totaling approximately RMB 22,201,510.82[132]. - The company is currently under investigation for potential contract fraud related to a previous acquisition, with the case still ongoing[129]. - The company has reported no significant legal disputes or arbitrations other than those disclosed[128]. - The company has engaged in a lease agreement with Integrated Circuit Park for office space totaling 982.53 square meters, with an annual rent and air conditioning service fee of approximately RMB 2.9 million[162]. Awards and Recognition - Capital Information has received numerous awards, including recognition as one of China's top ten IT service enterprises and a leading brand in internet services[14]. - The company received multiple honors, including being recognized as one of China's top ten innovative enterprises in IT services[43]. - The company successfully completed the information technology service guarantee for the 70th anniversary of the founding of the People's Republic of China, receiving recognition from multiple government agencies[35].