Group 1 - The London Metal Exchange (LME) reported various changes in registered and canceled warehouse receipts for different metals [1] - Copper registered warehouse receipts totaled 56,625 tons, with 36,450 tons canceled, resulting in a decrease of 775 tons [1] - Aluminum registered warehouse receipts amounted to 322,850 tons, with 14,050 tons canceled, leading to a decrease of 2,050 tons [1] - Nickel registered warehouse receipts reached 191,952 tons, with 12,264 tons canceled, showing a decrease of 1,410 tons [1] - Zinc registered warehouse receipts were at 89,075 tons, with 30,775 tons canceled, reflecting a decrease of 2,225 tons [1] - Lead registered warehouse receipts stood at 201,075 tons, with 72,175 tons canceled, indicating an increase of 1,275 tons [1] - Tin registered warehouse receipts totaled 1,430 tons, with 685 tons canceled, resulting in a decrease of 15 tons [1]

Financial Performance - Total revenue for 2024 is projected to be RMB 1,472,387,000, representing a slight increase from RMB 1,425,582,000 in 2023[12]. - The company reported a net loss attributable to shareholders of RMB 13,781,000 for 2024, compared to a net loss of RMB 72,906,000 in 2023[12]. - The total assets decreased to RMB 2,362,293,000 in 2024 from RMB 2,496,823,000 in 2023[12]. - The company achieved a record revenue of RMB 1,472.39 million in 2024, marking a historical high and maintaining its position in the top 100 of Beijing's software and information service industry for three consecutive years[22]. - The company reported a loss attributable to shareholders of RMB 13.78 million for the year[42]. - The gross profit for 2024 was RMB 377.97 million, a decrease of 5.28% year-on-year[42]. - The total profit reached RMB 5.12 million, a significant improvement of RMB 95.35 million compared to a loss of RMB 90.23 million in the previous year[28]. - The company reduced its attributable loss to RMB 13.78 million, a decrease of RMB 59.13 million year-on-year[28]. - The revenue from product and software development and services was RMB 434.42 million, a decrease of 0.25%, accounting for 29.50% of total revenue[44]. - Revenue from industry solutions was RMB 337.17 million, down 13.72%, representing 22.90% of total revenue[44]. - Operating and maintenance service revenue increased by 17.89% to RMB 687.97 million, making up 46.72% of total revenue[44]. Corporate Governance - The company’s board of directors includes members with extensive backgrounds in finance and management, enhancing governance and oversight[89][90]. - The company has five independent directors, meeting the minimum requirement set by the listing rules, with expertise in finance, law, auditing, and information technology[119]. - The independent directors actively participated in board and shareholder meetings, ensuring fair and objective decision-making[120]. - The governance structure includes a general meeting of shareholders, a party committee, a board of directors, a supervisory board, and a management team, ensuring effective checks and balances[140]. - The company has established comprehensive governance documents to regulate its operations and ensure compliance with laws and regulations[141]. - The board consists of 12 members, with 10 being independent directors, ensuring strong independent judgment[142]. - The audit committee is composed entirely of independent non-executive directors with legal and accounting qualifications[142]. - The company has established a Legal and Compliance Committee, which consists of 3 members, with a term ending on June 17, 2027[194]. - The company emphasizes the importance of board diversity and will disclose its diversity policy and review results annually[186]. Strategic Initiatives - The company plans to continue expanding its services in smart governance, smart healthcare, and digital transformation for enterprises[7]. - The company is focusing on enhancing its product capabilities through talent acquisition, optimization of the IPD development process, and organizational restructuring[23]. - The company aims to increase the proportion of software products and revenue from outside Beijing, striving to transform into a national company based in Beijing[23]. - The company is committed to advancing its "Hongtang" and "Hongsun" product series, while developing core technology frameworks for CCAF, "Hongti" large models, and "Hongpan" data platforms[23]. - The company is set to focus on six new reform directions in 2025, aiming for breakthroughs in product and regional expansion, as well as improvements in the proportion of software and data business[24]. Research and Development - The company has established a postdoctoral research workstation to promote independent innovation and research成果孵化[8]. - The company has been recognized as a national high-tech enterprise and has received multiple industry honors, including being listed among the "2024 Beijing Top 100 Enterprises"[9]. - The company has launched new products such as the "Red Zhi" large model and "Jing An Fu" which have been recognized in various industry honor lists[9]. - The company completed the development of its "Hongti" large model, which was recognized as a typical application case at the 2024 Global Digital Economy Conference[37]. Risk Management and Compliance - The company has faced various risk factors and uncertainties, which are addressed in the financial statements[78]. - The company has established a risk management and internal control system, ensuring adequate resources and training for accounting and financial reporting functions[172]. - The company has adhered to legal and regulatory requirements regarding related party transactions and information disclosure, preventing illegal transactions[122]. - The independent auditor found no issues indicating that the disclosed continuing connected transactions were not approved by the board of directors[110]. Shareholder Information - The company reported a final dividend of RMB 0.07 per share for the year ending December 31, 2024, totaling RMB 202.9 million, compared to no dividend in 2023[79]. - The company has not proposed an interim dividend for the reporting period[79]. - Major shareholder Beijing State-owned Assets Management Co., Ltd. holds 183,454,176 shares, representing 63.31% of the issued share capital[94]. - The top five customers account for approximately 31.67% of total revenue, with the largest customer contributing about 10.79%[94]. Legal Matters - The company is involved in a legal dispute regarding the acquisition of Rongtong Information, with a claim for RMB 335,995,436.60 in damages[96]. - The company has no major legal disputes or arbitrations other than the aforementioned case[96]. Management and Directors - Zhao Shujie appointed as non-executive director in December 2023, brings extensive management experience from Beijing Telecom Investment Co., Ltd. and China Unicom[54]. - Xin Shuangbai appointed as non-executive director in June 2023, currently leads strategic planning at Beijing Gehua Media Group, with a background in international finance and media operations[55]. - Jiang Wei serves as general manager of financial management at China Financial Electronic Group, with a strong background in financial management and auditing since 2022[56]. - The total compensation for the executive directors is as follows: Mr. Yu Donghui (Chairman) received RMB 110.85 million, and Mr. Zhang Yiqian (General Manager) received RMB 116.54 million[181]. - The annual compensation for senior management is within the range of RMB 1.5 million[182].

Summary of Capital Information Conference Call Company Overview - **Company**: Capital Information - **Year**: 2024 - **Revenue**: 1.472 billion (14.72亿元), up 3.28% year-on-year - **Net Profit**: Loss of 13.78 million (1,378万元), reduced loss by 59.13 million (5,913万元) - **Debt Ratio**: Decreased to 49.49%, down 2.34 percentage points - **Gross Margin**: Decreased from 27.99% to 25.67% due to increased R&D investment in livelihood projects, expected recovery in 2025 [2][3][9] Revenue Composition - **Revenue Breakdown**: - Operation and Maintenance Services: 46.7% - Product Software Development and Services: 29.5% - Industry Solutions: 22.9% [2][4][5] Future Growth Areas - **Focus Areas**: Big data and artificial intelligence (AI) business, enhancing independent innovation capabilities [2][6] - **AI Initiatives**: Participation in Beijing's AI infrastructure development, collaboration with local and national vendors, focusing on industry application model development, particularly in government and data processing sectors [2][7][11] New Third Board Listing - **Progress**: Actively advancing the listing on the New Third Board, specific listing date to be determined, management is confident in the process [2][8][17] Dividend Policy - **Dividend Strategy**: Despite net losses, the company maintains a high dividend policy to boost investor confidence, proposing annual dividends [2][14] Market Value Management - **Management Measures**: - Deepening reforms to enhance core competitiveness and profitability - Continuing the New Third Board listing process - Ensuring stable dividend policies while considering long-term interests [2][15][16] Impact of Bankruptcy - **Xiamen Rongtong Bankruptcy**: Positive financial impact due to prior continuous losses, sufficient impairment provisions made [2][18] R&D and Product Development - **2025 Product Development Plans**: Focus on AI-related products for government applications, industry products in smart governance, health, and continuous R&D investment [2][13] Financial Performance and Future Outlook - **2025 Revenue Goals**: The company is optimistic about achieving its revenue targets based on project reserves and ongoing developments [2][12][21] Conclusion - **Overall Sentiment**: The management expresses confidence in the company's future growth, strategic initiatives in AI, and commitment to shareholder returns despite current financial challenges [2][14][15]

Financial Performance - The company reported a loss attributable to owners of RMB 137.8 million for the year ended December 31, 2024[4]. - Operating revenue increased by 3.28% to RMB 1,472.39 million compared to the previous year[4]. - Basic loss per share was RMB 0.048, compared to a loss of RMB 0.025 per share in 2023[4]. - Operating revenue for the current period reached approximately $1.47 billion, an increase of 3.5% compared to the previous period's $1.43 billion[10]. - Operating profit for the current period was approximately $13.39 million, a significant recovery from a loss of approximately $90.42 million in the previous period[10]. - Net profit for the current period was approximately -$6.29 million, improving from a net loss of approximately -$62.09 million in the previous period[10]. - The total comprehensive income for the current period was approximately -$6.29 million, compared to -$62.09 million in the previous period[11]. - Total profit amounted to RMB 5.12 million, a significant improvement of RMB 95.35 million from a loss of RMB 90.23 million in the previous year[61]. - The attributable loss to shareholders was RMB 13.78 million, a reduction of RMB 59.13 million compared to the previous year's loss[56]. Assets and Liabilities - Total current assets decreased to RMB 1,501.36 million from RMB 1,592.40 million year-over-year[6]. - Total liabilities decreased to RMB 1,169.19 million from RMB 1,294.01 million year-over-year[7]. - Total assets decreased to RMB 2,362.29 million from RMB 2,496.82 million year-over-year[8]. - Shareholders' equity attributable to the parent company decreased to RMB 1,127.90 million from RMB 1,144.95 million year-over-year[8]. - Cash and cash equivalents decreased to RMB 723.37 million from RMB 814.10 million year-over-year[6]. - The group’s total assets decreased by 5.39% to RMB 2,362.29 million as of December 31, 2024[72]. - The group’s bank deposits and cash decreased by 11.14% to RMB 723.37 million compared to the previous year[72]. Dividends - The board proposed a final dividend of RMB 0.07 per share for the year ended December 31, 2024, compared to no dividend in 2023[4]. - The company proposed a cash dividend of RMB 0.07 per share, totaling RMB 20.29 million, pending shareholder approval[58]. - The company is obligated to withhold corporate income tax at a rate of 10% on dividends distributed to non-resident corporate shareholders listed on the H-share register[77]. - To qualify for the proposed final dividend, shareholders must submit the necessary transfer documents by June 25, 2025[79]. Taxation - The company obtained a high-tech enterprise certificate on October 26, 2023, allowing a reduced corporate income tax rate of 15% for three years[31]. - The company has no taxable profits for the year from its subsidiary, Shouxin Hong Kong[31]. - The company’s main tax rates include a corporate income tax rate of 25% and a value-added tax rate ranging from 5% to 13%[29]. - The company benefits from small and micro enterprise income tax incentives, with a reduced rate applicable until December 31, 2027[33]. Accounts Receivable and Payable - The total accounts receivable at the end of the period is $661,137,403.58, an increase from $656,305,725.61 at the end of the previous year[39]. - The provision for bad debts increased to $206,596,490.98, up from $192,943,781.91 year-over-year, reflecting a loss rate of 31.25%[40]. - The company made a provision of $51,361.59 for bad debts during the current period, bringing the ending balance to $52,370.78[38]. - The total accounts payable at the end of the period is RMB 575,719,949.40, up from RMB 398,969,828.62 at the end of the previous year[48]. - The electronic government sector accounts for 76.84% of the total accounts receivable, with a provision of $122,231,616.12 at a loss rate of 24.06%[42]. - The electronic commerce sector has a loss rate of 51.54%, with a provision of $73,123,224.66[42]. Governance and Compliance - The company has established a governance structure including a shareholders' meeting, party committee, board of directors, and supervisory board[12]. - The financial statements are prepared based on the going concern assumption and comply with relevant accounting standards[14]. - The company has complied with all provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules during the year and thereafter[80]. - The audit committee has reviewed the consolidated financial statements for the year ending December 31, 2024, including the accounting principles adopted by the group[83]. Business Operations - The company operates in the software industry, focusing on network application services and system integration[13]. - The company is actively expanding its digital infrastructure, securing orders from 27 first-level and 42 second-level municipal enterprises[62]. - The company completed the implementation of a zero-trust project for the government network security access platform, enhancing network security management capabilities[62]. - The company launched a medical insurance emergency settlement system, ensuring stable operation of the medical insurance information platform[63]. - The average daily transaction volume for medical insurance mobile payment reached over 40,000 transactions, with over 200 medical institutions connected[63]. - The group accumulated user data of nearly 4 million through the "Hongguozi" digital platform, enhancing data analysis capabilities[65]. - The group plans to strengthen its marketing system and brand development as part of its "industry, product, and regional" strategy[68]. Employee Information - The group has a total of 1,765 employees as of December 31, 2024, an increase from 1,624 in 2023, with R&D personnel numbering 1,284[69]. Risk Management - The board regularly reviews the risk management and internal control systems to ensure their effectiveness[85]. - There were no significant events after December 31, 2024, that would materially affect the group's operational and financial performance as of the announcement date[84]. Future Reporting - The 2024 annual report will be sent to shareholders and published on the stock exchange and the company's website for investor access[86].

CAP Capinfo Company Limited (a joint stock limited company incorporated in the People's Republic of China with limited liability) ( 於 中 攀 人 民 共 和 國 註 冊 成 立 之 設 份 有 限 公 司 ) (Stock Code 股份代號：1075) 0 2024 /Interim Report 中期報告 ● 目錄 7 企業管治 16 投資者參考資料 17 審閱報告 19 合併資產負債表 24 合併利潤表 27 合併現金流量表 29 合併股東權益變動表 33 財務報表附註 2 管理層討論與分析 87 釋義 2 首都信息發展股份有限公司 管理層討論與分析 業務回顧 2024年上半年，本集團勇於迎接改革深化提升對體制機制建設帶來的挑戰，堅定不移實施 公司「十四五」戰略規劃和公司改革方案，落實落細各項舉措，奮力實現全年目標任務。 截止2024年6月30日止6個月，本集團實現主營業務收入為人民幣533.55百萬元，較去年同 期增長12.52%。 報告期內，本集團不斷優化完善「一核、 ...

Financial Performance - The company reported a revenue increase of 11.56% year-on-year, reaching RMB 538.13 million for the six months ending June 30, 2024[2]. - The net profit attributable to shareholders decreased by 164.54% year-on-year, resulting in a loss of RMB 23.92 million[2]. - Basic loss per share was RMB 0.0825[6]. - Operating profit for the first half of 2024 was a loss of RMB 11.52 million, compared to a profit of RMB 47.32 million in the same period last year[5]. - The company reported a net loss of RMB 11.25 million for the first half of 2024, compared to a net profit of RMB 42.94 million in the same period last year[6]. - The gross profit for the first half of 2024 was RMB 157.68 million, a decrease of 21.94% year-on-year[33]. - The company reported a net loss attributable to ordinary shareholders of RMB -23,920,445.62 for the first half of 2024, resulting in a basic earnings per share of -0.0825[25]. - The company’s other income decreased by 44.11% to RMB 4.58 million, primarily due to reduced rental income from the Digital Beijing Building[33]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 2,435.93 million, a decrease from RMB 2,496.82 million at the end of 2023[4]. - Total liabilities decreased from RMB 1,294.01 million at the end of 2023 to RMB 1,234.34 million[4]. - The company’s accounts payable decreased to RMB 282,589,727.66 as of June 30, 2024, from RMB 398,969,828.62 at the end of 2023[20]. - The company’s bad debt provision as of June 30, 2024, was RMB 182,143,911.12, reflecting a decrease from RMB 192,943,781.91 at the end of 2023[18]. - Contract liabilities increased to RMB 405,764,410.04 as of June 30, 2024, compared to RMB 315,570,239.61 at the end of 2023[22]. Dividends - The company did not declare an interim dividend for the six months ending June 30, 2024, consistent with the previous year[2]. - The company did not declare a final dividend for the year ending December 31, 2023, following the approval at the annual general meeting on June 18, 2024[26]. Research and Development - The company incurred research and development expenses of RMB 51.57 million, up from RMB 42.65 million year-on-year[5]. Governance and Structure - The company has established a governance structure comprising a shareholders' meeting, party committee, board of directors, and supervisory board, with a three-tier organizational structure[7]. - The company has established 15 subsidiaries across various regions, including Beijing, Guangzhou, and Xinjiang, to enhance its operational reach[7]. - The company has a comprehensive organizational structure with four mature business units and five technical centers to support its operations[7]. Taxation - The company has a tax rate of 25% for corporate income tax, with specific subsidiaries having varying rates, such as 15% for the main company and certain subsidiaries[15][16]. - The company obtained high-tech enterprise certification on October 26, 2023, allowing a reduced corporate income tax rate of 15% for three years[17]. - The company has a tax refund policy for value-added tax exceeding 3% for software products sold, as per relevant regulations[16]. Operational Insights - The company operates in the software industry, focusing on network application services and system integration, with a consolidated financial reporting scope that includes 8 entities[7][8]. - The company’s operating revenue is heavily concentrated in Beijing, accounting for 98.32% of total revenue[33]. - The company signed contracts in various sectors, including a project for the Xinjiang government and upgrades for the Shanghai housing fund management platform[28]. - The company plans to enhance its core competitiveness and service capabilities in line with Beijing's strategy to build a global digital economy benchmark city[32]. Audit and Compliance - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2024, and believes they are prepared in accordance with applicable accounting standards[38]. - The company has complied with the relevant codes of conduct as per the Listing Rules during the six months ending June 30, 2024[39]. - No purchase, sale, or redemption of the company's listed securities occurred during the six months ending June 30, 2024[39]. Employee Information - The company’s employee count stood at 1,696 as of June 30, 2024, with employee costs amounting to approximately RMB 231.89 million during the reporting period[31].

Financial Performance - The company achieved a total revenue of RMB 1,425.58 million for the reporting period, representing a year-on-year increase of 0.18%[4] - The net loss attributable to shareholders was RMB 72.91 million, a significant reduction of 156.70% compared to the same period last year[4] - Gross profit decreased by 25.19% to RMB 399.04 million compared to the previous year[111] - The company reported a loss attributable to shareholders of RMB 72.91 million for the year[111] - The company's cash and cash equivalents decreased by 11.84% to RMB 814.10 million compared to the previous year[114] - The company reported a significant increase in user data, with a year-over-year growth of 25% in active users[197] - The revenue for the fiscal year reached $1.5 billion, representing a 15% increase compared to the previous year[197] - The company has set a future outlook with a revenue guidance of $1.8 billion for the next fiscal year, indicating a projected growth of 20%[197] Product Development and Innovation - The company successfully launched the medical insurance handling system, which is now operational and has connected over 110 key hospitals[4] - The "New Generation Housing Provident Fund Comprehensive Business Management Platform" was showcased at the Service Trade Fair, receiving significant attention[5] - The "Shouxin Tong" product was recognized as an excellent case in the 2023 digital application scenarios[5] - The company has developed and signed contracts for the V1.0 version of the digital file product and the project with the Tongzhou District Archives[5] - The company established "Beijing Digital Intelligence Pioneer Technology Co., Ltd." to develop a multi-level medical insurance digital service platform[155] - The company launched the "Shouxin Directory Blockchain Basic Service Platform" for practical application in the city[151] - Capital Information's cloud-native microservice enterprise infrastructure is being developed to provide higher performance technical services[175] - New product launches are expected to contribute an additional $200 million in revenue, with a focus on innovative technology solutions[197] Strategic Initiatives and Partnerships - The company is actively promoting joint research and has established a joint laboratory for smart city and data innovation with Beihang University[5] - The company was selected as a "Science and Technology Reform Enterprise" by the State-owned Assets Supervision and Administration Commission, indicating effective market expansion[4] - The company was selected as a member of the first batch of the Beijing General Artificial Intelligence Industry Innovation Partner Program[163] - The company joined the Beijing Artificial Intelligence Industry Alliance through its subsidiary, Shouxin Cloud[151] - A strategic acquisition is in progress, which is anticipated to enhance the company's technological capabilities and increase market competitiveness[197] Governance and Compliance - The company reported effective internal control management and compliance with accounting policies, ensuring accurate financial reporting[29] - The Audit Committee held two meetings in 2023, focusing on the review of financial policies and risk management systems[32] - The company established a Strategic Committee to research major investment proposals and other significant matters affecting development[61] - The company has implemented a policy for external auditors regarding non-audit services to maintain independence[40] - The company emphasizes compliance with legal and regulatory requirements in its governance structure and practices[95] - The board of directors has approved a new compliance strategy to ensure adherence to regulatory requirements, enhancing corporate governance[197] Human Resources and Diversity - Employee costs amounted to approximately RMB 507.46 million, an increase from RMB 491.84 million in 2022[109] - The company maintains a gender diversity policy, with women representing 34.73% of the total workforce[81] - The board consists of 2 female members and 10 male members, achieving a balance in gender diversity[101] - The company appointed new directors in 2023, including Yang Yongxin and Zhao Shujie, to enhance board diversity[73] - The company plans to continue monitoring the implementation of its diversity policy within the board[71] Risk Management - The company’s risk control measures have been deemed practical and strictly enforced, allowing for quick identification and response to operational risks[29] - The board's audit committee confirmed that the asset impairment provision reflects the overall operational status and asset conditions of the company[91] Awards and Recognition - The company has received numerous awards, including being recognized as one of China's top ten IT service enterprises and a leading brand in the internet sector[141] - Capital Information was awarded the first prize in the "Smart Security" innovation track at the 2023 Beijing Big Data Skills Competition[192] - The company was recognized as one of the "Top 100 Digital Economy Enterprises" in Beijing for 2023[185] - The company received the "Integrity Enterprise" title in the Beijing Software and Information Service Industry for 2023[151]

Financial Performance - The group achieved operating revenue of RMB 1,425.58 million in 2023, an increase of 0.18% compared to the same period last year[4]. - Gross profit decreased to RMB 399.04 million, down 25.19% year-on-year[4]. - The group reported a loss attributable to shareholders of RMB 72.91 million[4]. - Other income decreased by 21.58% year-on-year to RMB 15.69 million, primarily from property leasing income[2]. - The group's fair value change profit and loss for the year is RMB 1.53 million, with investment income for the year at RMB -6.51 million, a decrease of RMB 34.88 million compared to the same period last year[24]. - The group reported a net loss attributable to shareholders of RMB 72.91 million, with operating revenue increasing by 0.18% to RMB 1,425.58 million[33]. - The net profit for the current period is a loss of RMB 62,092,053.83, compared to a profit of RMB 140,704,648.43 in the previous period, indicating a decline of approximately 144.1%[41]. - The total comprehensive income for the current period is a loss of RMB 62,092,053.83, contrasting with a total comprehensive income of RMB 140,704,648.43 in the previous period[43]. - The company's total equity decreased to RMB 1,202,812,755.36 from RMB 1,321,286,961.16, reflecting a decline of about 9%[40]. - The company's total liabilities and equity decreased to RMB 2,496,823,399.03 from RMB 2,545,996,598.27, a reduction of approximately 1.9%[40]. Employee and Operational Metrics - The company has 1,624 employees as of December 31, 2023, down from 1,816 in 2022, with total employee costs amounting to approximately RMB 507.46 million[22]. - The integrated network platform operated with a backbone network availability of 99.999%, serving nearly 20,000 units[15]. - Operating costs increased significantly to RMB 1,026,537,902.00 from RMB 889,550,905.46, marking an increase of about 15.4%[41]. - The company has established a governance structure that includes a board of directors and various departments to enhance operational efficiency and market expansion[46]. Research and Development - The company is focusing on digital service innovation to enhance product development capabilities and operational efficiency in 2024[21]. - The company has launched 16 application systems for the new medical insurance information platform, which is now operational[11]. - Research and development expenses for the current period are RMB 134,576,665.42, slightly down from RMB 137,294,867.10 in the previous period, a decrease of about 2%[41]. Taxation and Financial Adjustments - The group’s income tax expense for the year was RMB -28.14 million, benefiting from a reduced tax rate of 15% as a high-tech enterprise[31]. - The company obtained high-tech enterprise certification, allowing a reduced corporate income tax rate of 15% for three years, effective from October 26, 2023[64]. - The company also received high-tech enterprise certification for cloud technology, with the same tax benefits effective from November 30, 2023[65]. - The company’s deferred tax expense for the current period was RMB 3,339,939.18, compared to RMB -31,482,100.52 in the previous period[117]. Asset Management and Impairments - The company recognized an asset impairment provision of RMB 58.80 million for a government network service project, which is expected to have no significant adverse impact on future operating performance[5]. - The impairment loss for assets this year was RMB 71.07 million, primarily due to provisions for held-for-sale assets and intangible assets[24]. - The company plans to complete the transfer of the government network service project asset group by June 30, 2024, with an estimated transfer amount confirmed by third-party evaluation[104]. Receivables and Bad Debts - The company reported a total receivables balance of RMB 656,305,725.61 at the end of the period, an increase from RMB 640,619,837.02 in the previous year, representing a growth of approximately 2.7%[79]. - The aging analysis of accounts receivable shows that the balance for 0-6 months increased to RMB 354,249,021.22 from RMB 326,206,862.30, indicating a growth of about 8.4% year-over-year[79]. - The company has a bad debt provision of RMB 192,943,781.91, which is an increase from RMB 188,592,816.88 in the previous year, reflecting a rise of approximately 1.9%[80]. - The expected credit loss rate for accounts receivable is reported at 28.96%[80]. - The total bad debt provision at the end of the period was RMB 31,046,863.65, related to the top five debtors[89]. Dividends and Shareholder Returns - The company did not recommend a final dividend for the year ended December 31, 2023, compared to a dividend of RMB 0.0175 per share in 2022[33]. - The company approved a final dividend of RMB 0.0175 per share for the year ended December 31, 2022, totaling RMB 50,716,506.59[121]. - The company will not propose a final dividend for the year ended December 31, 2023, due to operational challenges[128]. Legal and Compliance Matters - The company is involved in a legal dispute regarding the acquisition of Rongtong Information, with a property preservation measure of RMB 335,995,436.60 in place[123]. - The board has regularly reviewed the risk management and internal control systems to ensure their effectiveness and appropriateness[139]. - The 2023 annual report will be sent to shareholders and published on the Hong Kong Stock Exchange website and the company's website for investor access[140].

Financial Performance - For the first half of 2023, the company achieved a revenue of RMB 482.36 million, representing a year-on-year growth of 1.36%[4] - The net profit attributable to the company's owners for the same period was RMB 37.07 million, an increase of 8.22% compared to the previous year[4] - The gross profit for the first half of 2023 was RMB 201.98 million, which is a 15.98% increase year-on-year[10] - Total operating revenue for the first half of 2023 was approximately CNY 482.36 million, an increase from CNY 475.87 million in the same period last year, representing a growth of 1.03%[57] - Operating profit for the first half of 2023 was approximately ¥47.32 million, a slight decrease of 0.3% compared to ¥47.46 million in the same period last year[59] - Total profit increased to approximately ¥47.45 million, up 2.5% from ¥46.28 million year-on-year[59] - Basic earnings per share rose to ¥0.0128, compared to ¥0.0118 in the same period last year, reflecting a growth of 8.5%[60] - Total comprehensive income for the period was approximately ¥42.94 million, an increase of 9.5% compared to ¥39.33 million in the previous year[60] Revenue Breakdown - Software development and services generated revenue of RMB 277.79 million, accounting for 57.59% of total revenue, with a year-on-year increase of 5.39%[10] - Main business revenue for the first half of 2023 was RMB 474.16 million, compared to RMB 466.10 million in the first half of 2022, indicating a growth of about 1.27%[199] - The company's other business revenue for the first half of 2023 was RMB 8.20 million, down from RMB 9.78 million in the first half of 2022, representing a decline of about 16.06%[199] Costs and Expenses - Operating costs decreased to CNY 280.38 million from CNY 301.72 million, reflecting a reduction of 7.07%[57] - Research and development expenses increased to CNY 42.65 million, up from CNY 32.63 million, indicating a growth of 30.67%[57] - The company’s employee expenses for the reporting period were approximately RMB 210.72 million, with a total workforce of 1,622 employees[8] Assets and Liabilities - As of June 30, 2023, the company had total assets of RMB 2,488.14 million, a decrease of 2.20% from the end of the previous year[12] - Total current assets as of June 30, 2023, were CNY 1.68 billion, down from CNY 1.76 billion at the end of the previous year, a decrease of 4.58%[45] - Total current liabilities decreased to CNY 1.17 billion from CNY 1.21 billion, a reduction of 3.00%[48] - Total liabilities decreased to CNY 1.17 billion from CNY 1.22 billion, a decline of 3.99%[49] - Shareholders' equity totaled CNY 1.31 billion, slightly down from CNY 1.32 billion, a decrease of 0.43%[50] Corporate Governance - 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 in finance, law, and human resources[24] - The company has established several specialized committees under the board, including the audit committee, remuneration and assessment committee, nomination committee, and strategic committee, to enhance operational efficiency[22] - The audit committee evaluated the effectiveness of the internal control and risk management systems, confirming they are sufficient and effective as of June 30, 2023[35] - The company adheres to strict compliance with national laws and regulations, continuously improving its corporate governance practices[22] Strategic Focus - The company is focusing on digital transformation in various sectors, including public funds and human resource management, expanding its market presence in key regions[5] - The company plans to leverage opportunities from the new round of state-owned enterprise reforms and digital transformation initiatives in the second half of 2023[9] - The company plans to focus on expanding its market presence and enhancing its product offerings in the upcoming quarters[63] - The company is actively pursuing market expansion and new product development strategies[71] Compliance and Risk Management - The company has established a legal compliance committee that held one written meeting to review the 2023 work plan[32] - There were no incidents of insider information leakage or violations by directors, supervisors, or senior management during the reporting period[36] - The company plans to further enhance its insider information disclosure mechanisms in line with new regulations and business developments[36] Cash Flow and Investments - Cash flow from operating activities showed a net outflow of approximately ¥151.26 million, worsening from a net outflow of ¥62.81 million in the previous year[61] - Cash flow from investing activities resulted in a net outflow of approximately ¥98.85 million, an improvement from a net outflow of ¥196.76 million year-on-year[61] - The company invested RMB 118,864,129.68 in new assets during the first half of 2023, primarily in internal research and development, which accounted for RMB 114,454,483.56 of the total[157]

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)