Financial Performance - For the six months ended June 30, 2020, the company's revenue was approximately RMB 129,512,000, representing a growth of about 48.7% compared to the same period in 2019[54]. - The revenue from the data solutions business increased by approximately 64.9% compared to the first half of 2019[54]. - The gross profit for the reporting period was approximately RMB 37,750,000, remaining relatively stable compared to RMB 37,187,000 in the first half of 2019[54]. - The net loss for the reporting period was approximately RMB 5,207,000, compared to a net profit of RMB 4,026,000 in the first half of 2019[54]. - The company reported a basic and diluted loss per share of approximately RMB 1.30, compared to a basic and diluted earnings per share of RMB 1.34 in the first half of 2019[54]. - Revenue for the six months ended June 30, 2020, was approximately RMB 129,512,000, an increase of about 48.7% or approximately RMB 42,443,000 compared to the same period in 2019[69]. - Data solutions revenue was approximately RMB 85,121,000, representing a growth of about 64.9% or approximately RMB 33,501,000 compared to the same period in 2019[70]. - Gross profit was approximately RMB 37,750,000, remaining stable compared to approximately RMB 37,187,000 in the first half of 2019[72]. - Gross margin decreased to approximately 29.1% from 42.7% in the first half of 2019, primarily due to the impact of COVID-19 and low-margin data infrastructure services provided to a major client[73][76]. - The company incurred an operating loss of RMB 3,058 thousand, a significant decline from an operating profit of RMB 7,547 thousand in the previous year[148]. - Net loss attributable to owners of the company was RMB 5,207 thousand, compared to a profit of RMB 4,026 thousand in the same period last year[148]. - The company reported a loss of RMB (5,207,000) for the six months ended June 30, 2020, compared to a profit in the same period of the previous year[157]. - The total comprehensive income for the six months ended June 30, 2020, was RMB 4,587,000, which includes a profit of RMB 4,026,000 attributable to owners[157]. - The company reported a loss attributable to shareholders of RMB 5,207,000 for the six months ended June 30, 2020, compared to a profit of RMB 4,026,000 in 2019, indicating a significant decline in performance[200]. Expenses and Costs - Sales expenses increased by approximately 36.3% or about RMB 2,305,000, accounting for approximately 6.7% of revenue, consistent with the same period in 2019[77]. - Research and development expenses increased by approximately 69.9% to RMB 5,688,000, accounting for about 10.7% of revenue compared to 9.3% in the same period last year[78]. - Administrative expenses rose by approximately 26.6% or RMB 4,892,000, with a significant increase of 170.9% or RMB 14,708,000 after excluding one-time costs[79]. - Total expenses for the six months were RMB 137,498,000, a significant increase of 66.1% from RMB 82,733,000 in 2019[193]. Cash Flow and Financial Position - Net cash outflow from operating activities was approximately RMB 79,248,000, an increase of RMB 56,886,000 compared to the previous year, driven by reduced cash collections due to COVID-19[85]. - Net cash outflow from investing activities was approximately RMB 33,228,000, an increase of RMB 24,375,000, attributed to investments in fixed income products[88]. - Net cash inflow from financing activities was approximately RMB 4,018,000, a decrease from RMB 11,507,000 in the previous year due to the absence of new borrowings[89]. - The company's debt-to-asset ratio increased to approximately 35.1% from 31.9%, primarily due to an increase in bank and other borrowings[94]. - The company’s cash and cash equivalents dropped to RMB 70,032 thousand from RMB 178,452 thousand, a decrease of 60.8%[151]. - The net cash used in operating activities for the six months ended June 30, 2020, was RMB (79,248,000), compared to RMB (22,362,000) for the same period in 2019[163]. - The net cash used in investing activities for the six months ended June 30, 2020, was RMB (33,228,000), significantly higher than RMB (8,853,000) in 2019[163]. - The net cash generated from financing activities for the six months ended June 30, 2020, was RMB 4,018,000, down from RMB 11,507,000 in the previous year[163]. Market and Business Development - The company achieved nearly 100% repurchase rate from existing financial clients in the South China region during the reporting period[59]. - The company expanded its marketing cooperation with leading banks in North China, focusing on marketing consulting, operations, data analysis, and foundational data platforms[59]. - The company launched a new generation of its intelligent marketing platform, enhancing product performance and supporting more diverse data access[60]. - The company successfully signed a contract with Guosen Securities, aiding in the digital transformation of the securities industry[60]. - The company aims to expand its market coverage and establish benchmark cases in the credit card segment through partnerships with financial institutions[59]. - The company plans to expand its market share in the financial sector, particularly in the securities and insurance segments, leveraging project case studies for regulatory reporting and user behavior analysis[66]. - A partnership with Huawei Cloud was established to launch a financial marketing model on ModelArts, enhancing data analysis capabilities for banks[66]. - The company aims to accelerate the development of new products, including AI big data analysis products and automated machine learning applications, in collaboration with leading banks[67]. Human Resources and Governance - The company has expanded its team by nearly 100 employees during the reporting period, focusing on hiring key talents in artificial intelligence[63]. - The compensation policy includes competitive salaries, retirement plans, and performance-based bonuses for employees[105]. - The company employs a total of 522 staff across mainland China and Hong Kong as of June 30, 2020[105]. - The company has not faced significant issues regarding employee retention or labor disputes[105]. - The company’s governance structure includes a clear disclosure of shareholdings by directors and senior management[107]. - The company has not granted or agreed to grant any stock options under the stock option plan as of June 30, 2020, with a total of 40,000,000 shares available for issuance, representing 10% of the total issued shares[116]. - The board has confirmed compliance with all corporate governance codes during the reporting period[126]. Shareholder Information - The company’s major shareholders include Song Hongtao with a 49.02% stake and Wu Xiaohua with a 10.90% stake as of June 30, 2020[107]. - Mindas Touch Global Limited, owned by Song Hongtao, holds 196,080,000 shares, representing 49.02% of the company[111]. - Zhihua Holdings Limited, owned by Wu Xiaohua, holds 43,590,000 shares, representing 10.90% of the company[111]. - No other individuals, apart from directors and senior management, hold significant recorded interests in the company’s shares as of June 30, 2020[115]. Risk Management - The company faces various financial risks, including market risk (foreign exchange risk and cash flow interest rate risk), credit risk, and liquidity risk, with a focus on minimizing potential adverse impacts on financial performance[176]. - The company has established policies to manage credit risk associated with trade receivables and contract assets, ensuring credit is extended only to counterparties with adequate credit records[178]. - As of June 30, 2020, the company believes that the expected credit loss provisions for financial assets measured at amortized cost are negligible[180]. - The company maintains sufficient cash and cash equivalents to manage liquidity risk effectively, ensuring financial flexibility[181]. - The overall risk management approach is centered on the unpredictability of financial markets, aiming to mitigate potential adverse effects on the company's financial performance[176]. Investments and Acquisitions - The company has entered into an agreement to purchase Haina Property for RMB 62.0 million, with a construction area of 3,098 square meters[104]. - As of June 30, 2020, the company has paid RMB 40.0 million for the acquisition, with the remaining RMB 22.0 million delayed due to unmet conditions[104]. - The company made investments in intangible assets amounting to RMB (1,665,000) during the six months ended June 30, 2020[163]. Compliance and Regulations - The effective tax rate for subsidiaries in China was maintained at 15% due to their status as national high-tech enterprises[197]. - No related party transactions requiring disclosure under the listing rules occurred during the reporting period[117]. - The company has not issued any equity securities for cash during the reporting period[122]. - The board does not recommend the payment of an interim dividend for the reporting period[135].

Financial Performance - For the year ended December 31, 2019, the company's revenue was approximately RMB 257,915,000, representing a growth of about 39.0% compared to the previous year[14]. - The gross profit for the reporting period was approximately RMB 91,594,000, an increase of about 45.2%, with a stable gross profit margin of approximately 35.5%[14]. - The net profit for the period was approximately RMB 4,124,000, a decrease of about 81.8% due to expenses related to the company's listing[14]. - Adjusted net profit after listing expenses was approximately RMB 27,975,000, with a net profit margin of about 10.8%[14]. - Total revenue increased by 39.0% compared to the previous year, reaching approximately RMB 72,366,000[36]. - Revenue from data solutions business grew by 92.0% year-on-year, accounting for 64.5% of total revenue, up from 46.7%[31]. - Revenue generated from financial industry clients represented 65.0% of total revenue during the reporting period[31]. - Revenue from integrated hardware and software sales decreased by approximately 10.0% to RMB 54,742,000, as the company strategically focused on data solutions[56]. - Revenue from IT maintenance and support services was approximately RMB 36,733,000, a decrease of about 3.3% due to reduced customer demand[56]. - The company's revenue for the year was approximately RMB 257,915,000, representing a growth of about 39.0% or approximately RMB 72,366,000 compared to the previous year[56]. Business Development and Strategy - The data solutions business generated significant revenue growth of approximately 92.0% year-on-year[14]. - The company successfully listed on the Hong Kong Stock Exchange on December 13, 2019, enhancing its capital strength and brand recognition[25]. - The company aims to leverage big data and AI technologies to drive digital transformation in the financial sector[25]. - The company plans to enhance marketing and R&D investments to expand service coverage in banking and financial institutions[26]. - The company aims to seek acquisitions of target companies with appropriate technology, customer base, or operational models in the target markets[26]. - The company will develop three major regional markets: South China, North China, and East China, to accelerate local service delivery capabilities[47]. - The company is actively seeking strategic acquisitions to enhance its market position, focusing on tech startups with advanced R&D capabilities and companies with strong execution capabilities[51]. - The company has established long-term stable partnerships with clients, with revenue from repeat customers accounting for nearly 78.8% of total revenue[41]. - The company plans to increase marketing and R&D investments in 2020, targeting markets beyond banks, such as securities and insurance companies[41]. Research and Development - R&D expenses increased by approximately RMB 6,743,000 or 62.7% due to investments in innovative technology applications and AI talent development[39]. - The company launched the "Lingxi Intelligent Marketing Platform 4.0" and established a financial AI laboratory in collaboration with the University of Hong Kong[18]. - The company established a financial AI laboratory to explore cutting-edge technology applications and enhance data solutions[32]. - The company is focusing on the development of AI technologies, with a dedicated AI laboratory led by Ms. Shao Ping since March 2016[115]. - Research and development expenses increased by approximately 62.7% to about RMB 6,743,000, representing about 6.8% of total revenue, up from approximately 5.8% last year[59]. Financial Position - Net current assets rose to approximately RMB 135,688,000, reflecting an increase of about 736.4% year-on-year[39]. - Total assets increased to approximately RMB 373,676,000, representing a growth of about 104.8% compared to the previous year[39]. - Cash and cash equivalents as of December 31, 2019, were approximately RMB 178,452,000, an increase of about RMB 134,186,000 from December 31, 2018[70]. - Net cash inflow from operating activities was approximately RMB 27,449,000, an increase from RMB 15,575,000 last year, mainly due to an increase in trade and other payables[71]. - The debt-to-equity ratio decreased to approximately 31.9% from 80.5% last year, primarily due to an increase in total equity[81]. Corporate Governance and Compliance - The board of directors is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[195]. - The company has adopted the principles and code provisions of the Corporate Governance Code as the basis for its corporate governance practices[195]. - The audit committee has reviewed the consolidated financial statements and confirmed they are prepared in accordance with applicable accounting standards[189]. - There have been no significant non-compliance issues with relevant laws and regulations affecting the company's business and operations during the reporting period[192]. - The company has confirmed that all directors complied with the standard code of conduct regarding securities trading during the reporting period[198]. Market and Economic Conditions - Future financial performance remains uncertain due to the impact of the COVID-19 pandemic on global economic conditions[40]. - The impact of the COVID-19 pandemic on the company's financial performance remains uncertain, with potential delays in project progress and customer settlements[185]. - The company continues to monitor and assess the developments of the COVID-19 pandemic and its financial implications[185]. Employee and Management - The company has a strong management team with members holding advanced degrees in mathematics and management from prestigious universities[111][112]. - The company has expanded its management team to enhance its operational capabilities and strategic direction[106][108]. - The company has a diverse portfolio of experienced professionals in finance, technology, and consulting, contributing to its growth strategy[111][112]. - The company has proposed a stock option plan and a share award plan, pending shareholder approval, aimed at retaining and incentivizing employees[163]. - As of December 31, 2019, the company had a total of 428 employees in mainland China and Hong Kong, providing competitive salaries and benefits[160]. Shareholder Information - The controlling shareholder, Mr. Song Hongtao, holds a 49.02% stake in the company through Mindas Touch Global Limited[166]. - Major shareholders include Mindas Touch Global Limited with a 49.02% stake (196,080,000 shares) and Zhihua Holdings Limited with a 10.90% stake (43,590,000 shares)[170]. - The top five customers contributed 49.0% of total revenue, with the largest customer accounting for 18.9%[177]. - The top five suppliers accounted for 56.3% of total procurement, with the largest supplier representing 27.4%[178]. Environmental and Social Responsibility - The company emphasizes the importance of environmental protection and has implemented measures to reduce energy consumption and waste[125]. - The company made donations totaling HKD 1,000,000 during the reporting period[145].