Financial Performance - The company's operating revenue for Q3 2022 was ¥201,712,838.12, a decrease of 14.13% compared to ¥181,525,300.03 in the same period last year[9]. - The net profit attributable to shareholders was -¥42,077,701.49, compared to -¥35,919,169.31 in the previous year, indicating a worsening performance[9]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥43,936,731.85, compared to -¥37,675,033.79 in the same period last year[9]. - The basic earnings per share for the reporting period was -¥0.0320, compared to -¥0.0407 in the same period last year[9]. - The diluted earnings per share for the reporting period was also -¥0.0320, consistent with the basic earnings per share[9]. - The total comprehensive income attributable to the parent company was -60,754,066.03 RMB, a decrease from -94,447,002.97 RMB in the same period last year[41]. - Basic and diluted earnings per share were both -0.0471 RMB, compared to -0.0841 RMB in the same period last year[41]. Assets and Liabilities - The total assets at the end of the reporting period were ¥3,613,814,450.29, a decrease of 20.76% from ¥4,560,308,765.21 at the end of the previous year[12]. - Total assets amounted to CNY 3,613,814,450.29, down from CNY 4,560,308,765.21, indicating a decrease of around 20.8%[30]. - Non-current assets totaled CNY 1,467,135,603.58, a decline from CNY 1,537,461,709.47, representing a decrease of about 4.5%[30]. - The total liabilities decreased to approximately $1.77 billion in Q3 2022 from $2.85 billion in the previous year, reflecting a reduction of about 37.8%[36]. - The total equity increased to approximately $1.84 billion in Q3 2022, up from $1.71 billion in the same period of 2021, representing a growth of about 7.5%[36]. Cash Flow - The net cash flow from operating activities for the year-to-date was -¥133,621,310.80, compared to -¥31,702,503.10 in the same period last year[9]. - The net cash flow from operating activities was -133,621,310.80 RMB, compared to -242,655,081.08 RMB in the previous year[44]. - Cash inflow from operating activities totaled 698,316,280.67 RMB, down from 832,257,328.69 RMB year-over-year[41]. - Cash outflow from operating activities was 831,937,591.47 RMB, a decrease from 1,074,912,409.77 RMB in the previous year[44]. - The net cash flow from investing activities was -139,771,602.43 RMB, compared to -16,249,202.53 RMB in the same period last year[44]. - The net cash flow from financing activities was -346,932,578.78 RMB, a significant drop from 24,799,672.48 RMB in the previous year[46]. - The ending balance of cash and cash equivalents was 602,597,165.95 RMB, down from 1,223,015,128.80 RMB at the beginning of the period[46]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 70,382[20]. Operational Insights - The company reported non-recurring gains of ¥1,859,030.36 for the reporting period, with a total of ¥82,583,523.38 for the year-to-date[19]. - The company has not disclosed any new product developments or market expansion strategies during this reporting period[28]. - The company plans to continue focusing on cost reduction strategies and enhancing operational efficiency in the upcoming quarters[36]. - Future outlook includes potential market expansion and new product development initiatives to drive revenue growth[36]. Cost Management - Total operating costs for Q3 2022 were approximately $609.67 million, down 25.8% from $821.92 million year-over-year[36]. - The company reported a significant reduction in research and development expenses, totaling approximately $135.31 million in Q3 2022, down 10.6% from $151.44 million in the same period last year[36].

Financial Performance - The company's operating revenue for the first half of 2022 was ¥426,547,881.81, a decrease of 20.32% compared to the same period last year[23]. - The net profit attributable to shareholders for the first half of 2022 was -¥19,840,849.10, showing a significant loss compared to -¥75,906,125.14 in the previous year[23]. - The basic earnings per share for the first half of 2022 was -¥0.0151, an improvement from -¥0.0861 in the same period last year[26]. - The weighted average return on net assets was -4.91% for the first half of 2022, reflecting a challenging financial environment[26]. - The company reported a net cash flow from operating activities of -¥114,686,729.35, indicating ongoing operational challenges[23]. - The company's operating revenue for the reporting period was ¥426,547,881.81, a decrease of 20.32% compared to ¥535,308,166.10 in the same period last year[48]. - The company's operating costs decreased by 30.72% to ¥195,592,015.44 from ¥282,307,894.94 year-on-year[48]. - The company achieved a significant increase in asset disposal income, which rose to ¥11,380,900.95, a 369,328.21% increase compared to ¥3,080.68 in the previous year[48]. - The company reported a net loss of ¥7,725,319,139.19, compared to a loss of ¥7,705,478,290.09 in the previous period[156]. - The total operating revenue for the first half of 2022 was CNY 426,547,881.81, a decrease of 20.3% compared to CNY 535,308,166.10 in the same period of 2021[163]. - The total operating costs for the first half of 2022 were CNY 425,807,634.68, down 25.5% from CNY 571,383,249.14 year-over-year[163]. - The net profit for the first half of 2022 was CNY 18,508,051.12, compared to a net loss of CNY 81,694,770.45 in the same period of 2021[167]. - The company reported an investment loss of CNY 23,853,008.47 for the first half of 2022, an improvement from a loss of CNY 93,992,922.52 in the previous year[167]. Assets and Liabilities - The net assets attributable to shareholders increased by 19.24% to ¥513,711,614.67 at the end of the reporting period[23]. - The total assets decreased by 19.26% to ¥3,682,039,073.14 compared to the previous year[23]. - Cash and cash equivalents decreased by 61.60% to ¥478,957,914.14, accounting for 13.01% of total assets[53]. - Short-term borrowings decreased by 37.44% to ¥289,231,432.75, representing 7.86% of total assets[53]. - Trade receivables decreased by 63.47% to ¥33,447,184.61, accounting for 0.91% of total assets[53]. - Other receivables decreased by 71.30% to ¥15,229,393.28, representing 0.41% of total assets[53]. - Contract liabilities decreased by 60.79% to ¥52,284,035.54, accounting for 1.42% of total assets[53]. - The company's total liabilities decreased significantly, with a notable reduction in current liabilities by 95.43% to ¥8,157,305.97[53]. - Total current assets decreased to ¥2,195,335,076.26 from ¥3,022,847,055.74, a decline of approximately 27.3%[151]. - Total liabilities decreased to ¥1,828,510,506.97 from ¥2,845,850,995.48, a decline of about 35.7%[156]. - Total equity increased to ¥1,853,528,566.17 from ¥1,714,457,769.73, an increase of approximately 8.1%[156]. - Non-current assets decreased to ¥1,486,703,996.88 from ¥1,537,461,709.47, a decline of about 3.3%[154]. - Long-term equity investments slightly decreased to ¥1,012,056,062.54 from ¥1,020,017,751.61, a decrease of approximately 0.8%[153]. - The company's total equity at the end of the period is 1,714,457,769.73, reflecting a decrease from the previous period[192]. Research and Development - Research and development expenses accounted for 20.45% of revenue as of June 2022, indicating a strong commitment to innovation[38]. - The company is committed to increasing investment in key technology research and development to strengthen its market position and industry influence[73]. - Research and development expenses for the first half of 2022 were CNY 90,376,627.26, a decrease of 12.6% from CNY 103,371,484.29 in the first half of 2021[163]. Market Strategy and Business Focus - The company focuses on security chips and special communications, with significant advancements in core technologies and product offerings[34]. - The integration circuit design sector is experiencing high domestic demand, with a notable trade deficit due to reliance on imports[33]. - The company aims to expand its market presence by developing 1-2 new business growth points in the special communications sector[34]. - The company has achieved important progress in the national secret security algorithm core, enhancing the competitiveness of its chip products[38]. - The company has been recognized for its brand influence and has established a strong customer base in the integrated circuit design and special communications fields[35]. - The company is actively involved in the formulation of industry technology standards and has filed 13 new patents, including 8 national defense patents[38]. - The company is in the market expansion phase for IoT security chips, focusing on high-performance security chips for vehicle networking applications[46]. - The company plans to continue focusing on the "security chip + special communication" dual-engine strategy to enhance core competitiveness and profitability[46]. - The company aims to enhance its position in the special wireless communication field through efficient collaboration with partners and innovation[46]. Legal and Compliance Issues - The company is facing risks related to business transformation, market competition, and litigation, which may impact future operations and profitability[73]. - The company is involved in significant litigation, with a total amount in dispute of approximately ¥492.99 million related to a sales contract dispute with Beijing Shenzhou Taiyue System Integration Co., Ltd.[111]. - Another ongoing litigation involves a sales contract dispute with Beijing Shenzhou Taiyue System Integration Co., Ltd., with a claim amount of approximately ¥158.76 million.[111]. - The company has a pending lawsuit regarding a sales contract dispute with Chongqing Xinwei Communication Technology Co., Ltd., amounting to approximately ¥5.27 million.[111]. - A court ruling has ordered Datang Chengdu Company to pay Beijing Disaiqi Zheng Technology Co., Ltd. approximately ¥225,384.68 plus overdue interest, with the case currently under appeal.[111]. - The company is pursuing a claim of approximately ¥31.11 million against Chengdu Airport Science and Technology Investment Group Co., Ltd. related to a dispute over equity transfer, with arbitration proceedings still pending.[111]. - The company is currently involved in three labor disputes, with one case concluded and two ongoing.[113]. Environmental and Social Responsibility - The company implemented an ISO 14001 environmental management system and organized annual employee training on environmental risk assessment[85]. - The company reduced electricity consumption by 68,160 kWh compared to the same period in 2021 through energy management initiatives[90]. - The company invested over 300,000 yuan in planting nearly 100 trees to enhance the green area of the park in April 2022[88]. - The company processed 1,877 tons of recycled water and collected 325 tons of rainwater, saving 2,202 tons of tap water in the first half of 2022[88]. - The company continues to fulfill its social responsibility by donating 150,000 yuan to support environmental improvement and aid for underprivileged families in Henan province[91]. Shareholder and Governance - The company appointed Liu Xin as the chairman and elected Hu Jun Tong as an independent director during the board meeting on January 27, 2022[80]. - The company has long-term commitments to avoid competition with its parent company and to maintain its independence[94]. - The company has not disclosed any environmental penalties during the reporting period[86]. - The total number of ordinary shareholders was 72,483[140]. - The largest shareholder, Telecom Science and Technology Research Institute, holds 22.47% of the shares, totaling 295,195,174 shares[140]. - The second-largest shareholder, China Information Communication Technology Group, holds 14.53% of the shares, totaling 190,839,694 shares[140]. - The company has a total of 6,583,350 shares held by the Agricultural Bank of China under the asset management plan[143]. - The company reported a total of 5,899,900 shares held by Wang Yan, a domestic individual shareholder[143]. - The company has a total of 2,800,000 shares held by Hong Yuanli, another domestic individual shareholder[143]. - The company has a total of 17,808,504 shares held by the China State-Owned Capital Structural Adjustment Fund Co., Ltd., with a lock-up period of 36 months[146]. - The company has a total of 7,777,757 shares held by Datang Telecom Technology Industry Holdings Co., Ltd., also with a 36-month lock-up period[146]. Financial Commitments and Transactions - The company has commitments regarding share lock-up periods, with shares acquired through non-public offerings not transferable for three years from December 28, 2021[100]. - The company has commitments to avoid competition with peers, established on June 23, 2020, with a long-term validity[100]. - The total amount of non-operating funds occupied by related parties is CNY 4,916,130.46, which has remained unchanged since May 2013[107]. - The company is actively working with its subsidiary to recover accounts receivable to repay the owed amounts[108]. - The company has committed to measures to fill the dilution of immediate returns from transactions, with a commitment date of December 16, 2021, and a long-term validity[103]. - The company reported a decrease in related party transactions for purchasing goods from Telecom Science and Technology Research Institute, totaling approximately ¥17.28 million this period compared to ¥22.13 million in the previous period[114]. - The company also reported a decrease in purchases from SMIC International Integrated Circuit Manufacturing Co., Ltd., with current purchases at approximately ¥20.27 million compared to ¥29.32 million previously[114]. - The company has written off debts totaling 621,290,093 RMB through debt-to-equity swaps with its subsidiaries, resulting in a significant restructuring of its equity holdings[124]. - The company completed the transfer of 78.8% equity in Guangzhou Youwan Entertainment Network Technology Co., Ltd. to a subsidiary of its controlling shareholder for a nominal price of 1 RMB[124]. - The company transferred assets related to the LC1860 chip and LC1881 chip technology for a total transaction amount of 33,646,000 RMB (excluding tax) to a subsidiary of its controlling shareholder[124].

Financial Performance - The company's operating revenue for Q1 2022 was ¥148,829,024.04, a decrease of 2.96% compared to ¥153,362,647.70 in the same period last year[6] - The net profit attributable to shareholders was -¥43,358,376.96, an improvement from -¥63,603,990.73 in the previous year[6] - Net profit for Q1 2022 was a loss of ¥38,410,245.97, compared to a loss of ¥109,253,170.07 in Q1 2021, indicating an improvement[34] - The company's operating profit for Q1 2022 was a loss of ¥34,836,027.64, an improvement from a loss of ¥115,570,618.12 in Q1 2021[31] - The basic and diluted earnings per share were both -¥0.0330, an improvement from -¥0.0721 in the same period last year[9] - The basic and diluted earnings per share for Q1 2022 were both -0.0330 CNY, compared to -0.0668 CNY in Q1 2021, indicating an improvement in earnings performance[36] Cash Flow - The net cash flow from operating activities was ¥13,349,962.11, a significant recovery from -¥98,243,139.55 in the same period last year[9] - Cash inflow from operating activities totaled 313,746,199.69 CNY in Q1 2022, up from 225,249,250.36 CNY in Q1 2021, representing an increase of approximately 39.2%[36] - The net cash flow from operating activities was 13,349,962.11 CNY in Q1 2022, a significant recovery from -114,117,034.12 CNY in Q1 2021[36] - Cash outflow from investing activities was 62,334,405.93 CNY in Q1 2022, compared to 8,821,602.10 CNY in Q1 2021, indicating increased investment activity[38] - The net cash flow from investing activities was -62,334,404.93 CNY in Q1 2022, worsening from -8,821,602.10 CNY in Q1 2021[38] - Cash inflow from financing activities was 52,730,000.00 CNY in Q1 2022, down from 252,687,820.00 CNY in Q1 2021, reflecting a decrease in financing activities[38] - The net cash flow from financing activities was -64,794,055.20 CNY in Q1 2022, compared to 19,728,601.64 CNY in Q1 2021, indicating a shift towards negative cash flow[38] Assets and Liabilities - The total assets at the end of the reporting period were ¥4,282,412,243.93, down 6.09% from ¥4,560,308,765.21 at the end of the previous year[9] - The company's current assets totaled approximately RMB 2.83 billion, down from RMB 3.02 billion, reflecting a decrease of about 7.9%[22] - The company's long-term equity investments were valued at approximately RMB 983.67 million, a decrease of about 3.6% from RMB 1.02 billion at the end of 2021[25] - The company reported a decrease in accounts payable to approximately RMB 871.38 million, down from RMB 887.08 million, a decline of about 1.9%[25] - Total liabilities decreased to ¥2,573,868,178.55 in Q1 2022 from ¥2,845,850,995.48 in Q1 2021, a reduction of approximately 9.5%[31] - The company's total liabilities were approximately RMB 2.83 billion, reflecting a decrease of about 5.5% from RMB 2.99 billion at the end of 2021[22] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 66,380[16] - The largest shareholder, Telecom Science and Technology Research Institute, holds 22.47% of the shares[16] Strategic Focus - The company plans to focus on market expansion and new product development as part of its future strategy[19] Other Financial Metrics - The company reported non-recurring gains of ¥11,635,846.08 from the disposal of non-current assets[10] - Research and development expenses for Q1 2022 were ¥52,184,184.13, slightly down from ¥52,247,623.53 in Q1 2021[31] - The company recorded a credit impairment loss of ¥30,231,728.30 in Q1 2022, compared to a loss of ¥-907,509.17 in Q1 2021[31] - The company did not conduct an audit for the financial statements of this quarter[6]

Financial Performance - In 2021, the company's operating revenue was approximately CNY 1.31 billion, a decrease of 19.40% compared to CNY 1.63 billion in 2020[28]. - The net profit attributable to shareholders was a loss of approximately CNY 50.95 million, significantly improved from a loss of CNY 1.32 billion in 2020, marking a 96.14% reduction in losses[28]. - The net cash flow from operating activities was negative CNY 296.84 million, a decline of 727.97% compared to a positive cash flow of CNY 47.27 million in 2020[28]. - The total assets increased by 16.83% to approximately CNY 4.56 billion at the end of 2021, compared to CNY 3.90 billion at the end of 2020[28]. - The basic earnings per share for 2021 was -CNY 0.0454, an improvement from -CNY 1.1755 in 2020[29]. - The company reported a quarterly operating revenue of CNY 540.57 million in Q4 2021, which was the highest among the four quarters[32]. - The net profit attributable to shareholders in Q4 2021 was CNY 43.50 million, a significant turnaround from a loss in the previous quarters[32]. - Non-recurring gains and losses for 2021 included CNY 412.40 million from the disposal of non-current assets[38]. - The company’s net assets attributable to shareholders improved to approximately CNY 430.80 million by the end of 2021, compared to a negative net asset position in 2020[28]. - The company reported a loss during the reporting period, resulting in no profit distribution or capital reserve increase proposal[165]. Corporate Governance - The company received a standard unqualified audit report from Lixin Certified Public Accountants[6]. - All board members attended the board meeting to approve the annual report[5]. - The company has established a governance structure that complies with the requirements of the Company Law and relevant regulations, ensuring equal treatment of all shareholders[115]. - The company has implemented measures to respect and protect the rights of stakeholders, promoting balanced interests among shareholders, employees, and society[118]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate reporting to prevent insider information leakage[118]. - The company has not engaged in any related party transactions that would harm the interests of shareholders during the reporting period[119]. - The company has a structured governance with a mix of executive and independent directors to ensure effective oversight[130]. - The company has maintained compliance with regulatory requirements regarding board member remuneration[146]. Market and Product Development - The company plans to continue focusing on market expansion and new product development to drive future growth[32]. - The market share of the security chip segment remains among the top in China, with the third-generation social security card chip achieving commercial shipments in multiple provinces[44]. - The company actively developed differentiated new products in the special communication sector, extending applications to emergency, oil and gas, and public security industries[47]. - The company’s integrated circuit design sector is benefiting from the rapid growth of downstream markets such as 5G communication and the Internet of Things[48]. - The company aims to expand its security chip and special communication business, focusing on innovative solutions for sectors like government, finance, and transportation[107]. - The special communication business will leverage opportunities in 5G applications to enhance market position and core competitiveness[107]. Risk Management - The company has detailed potential risks in the management discussion and analysis section of the report[9]. - The company faces risks related to market competition, with increasing digitalization and narrowing industry profit margins[111]. - The company is currently involved in multiple litigation cases, which may pose financial risks depending on the outcomes[112]. Employee and Management Information - The total remuneration for all directors, supervisors, and senior management personnel at the end of the reporting period amounted to 4.2026 million yuan[145]. - The company reported a total of 1,243 employees, with 80 in the parent company and 1,163 in major subsidiaries[157]. - The company has a total of 408 employees with a master's degree or higher, representing approximately 32.8% of the total workforce[157]. - The company has implemented a training plan aimed at enhancing employee skills and knowledge, utilizing a comprehensive training system[160]. Strategic Acquisitions and Investments - The company completed the acquisition of 95.001% of Datang Liancheng, enhancing its specialized communication business and creating synergies with existing operations[47]. - The company completed a major asset restructuring, enhancing profitability without discrepancies in disclosed information[88]. - The company has committed to ensuring the independence of the listed company, with a commitment date of December 16, 2021, and a long-term validity[197]. Future Outlook - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[135]. - The company plans to pursue strategic acquisitions to enhance its technology portfolio, targeting at least two acquisitions in the next 18 months[135]. - A new product line is set to launch in Q3 2023, expected to contribute an additional 5% to overall revenue[135].

Financial Performance - The company's operating revenue for Q3 2021 was ¥181,525,300.03, representing a decrease of 22.31% compared to the same period last year[7]. - The company reported a 36.44% decline in operating revenue year-to-date, primarily due to the exclusion of Jiangsu Security and NXP from the consolidated financial statements[17]. - Total operating revenue for the first three quarters of 2021 was ¥477,323,191.97, a decrease of 36.3% compared to ¥751,020,214.24 in the same period of 2020[31]. - Total operating costs for the first three quarters of 2021 were ¥547,512,642.14, down 44.8% from ¥993,617,019.37 in the previous year[34]. - Net profit for the third quarter of 2021 was a loss of ¥159,898,408.27, compared to a loss of ¥321,390,772.77 in the same quarter of 2020, indicating an improvement[34]. - The total comprehensive income for the third quarter of 2021 was -¥159,898,408.27, compared to -¥321,390,772.77 in the same quarter of 2020, showing a reduction in losses[38]. - Basic earnings per share for the first three quarters of 2021 were -0.1268 CNY, compared to -0.2884 CNY in 2020, showing an improvement[40]. Profitability and Cash Flow - The net profit attributable to shareholders was -¥35,919,169.31, with a year-to-date net profit of -¥111,825,294.45[7]. - Operating cash flow for the first three quarters of 2021 was -31,702,503.10 CNY, a decline from 77,347,818.87 CNY in the same period of 2020[40]. - Total cash inflow from operating activities was 614,990,864.00 CNY, down from 1,115,383,831.30 CNY year-over-year[40]. - Cash outflow from operating activities totaled 646,693,367.10 CNY, compared to 1,038,036,012.43 CNY in the previous year[40]. - The company incurred financial expenses of ¥50,986,385.17 in the third quarter of 2021, a decrease of 43.5% from ¥90,273,650.73 in the same quarter of 2020[34]. Assets and Liabilities - Total assets at the end of the reporting period were ¥2,961,501,952.60, down 5.70% from the end of the previous year[9]. - Current assets totaled CNY 1,284,644,971.19, slightly down from CNY 1,296,033,284.29, indicating a decrease of about 0.9%[25]. - Total liabilities amounted to ¥3,640,670,211.33, slightly down from ¥3,659,689,195.65 in the previous year[31]. - The company's total non-current liabilities were ¥439,173,671.78, down from ¥682,536,932.78 in the previous year[31]. - The total equity attributable to shareholders of the parent company was -¥1,423,698,308.48, worsening from -¥1,311,873,014.03 year-over-year[31]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 77,348[18]. - The largest shareholder, Telecom Science and Technology Research Institute Co., Ltd., held 17.15% of the shares[18]. Government Support and R&D - The company received government subsidies amounting to ¥839,512.78 during the reporting period[11]. - Research and development expenses for the first three quarters of 2021 were ¥65,012,779.31, a significant decrease of 63.0% from ¥175,812,312.90 in the same period of 2020[34]. - The company did not report any new product developments or market expansion strategies during this quarter[20]. - The company has not provided any updates on new product development or market expansion strategies during the reporting period[22]. Cash and Financing Activities - Cash and cash equivalents were CNY 262,634,246.34, down from CNY 307,122,862.85, representing a decline of approximately 14.5%[25]. - Cash inflow from financing activities was 1,071,946,920.00 CNY, compared to 1,880,475,607.11 CNY in the same period last year[42]. - Cash outflow from financing activities was 1,040,379,022.85 CNY, down from 2,339,658,974.16 CNY in 2020[42]. - The ending cash and cash equivalents balance for the first three quarters of 2021 was 249,757,117.47 CNY, compared to 398,593,591.57 CNY at the end of the same period in 2020[42].

Financial Performance - The company's operating revenue for the first half of 2021 was ¥295,797,891.94, a decrease of 42.83% compared to ¥517,365,446.86 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was -¥75,906,125.14, improving from -¥143,173,098.36 year-on-year[21]. - The net cash flow from operating activities was -¥82,211,008.53, compared to -¥18,325,129.94 in the previous year[21]. - Total assets decreased by 3.76% to ¥3,022,459,155.45 from ¥3,140,419,345.19 at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company were -¥1,387,779,139.17, compared to -¥1,311,873,014.03 at the end of the previous year[21]. - Basic earnings per share for the first half of 2021 were -¥0.0861, an improvement from -¥0.1623 in the same period last year[21]. - The company reported a significant increase in non-operating losses, with the net profit excluding non-recurring gains and losses at -¥90,992,434.66[21]. - The company reported a net profit decline due to significant investment losses from equity-method accounted subsidiaries still in the R&D phase[34]. - Financial expenses decreased by 37.99% to ¥37,693,297.80 from ¥60,784,694.38[39]. - R&D expenses decreased by 47.52% to ¥48,136,951.17 from ¥91,724,340.90[39]. Assets and Liabilities - Total current assets as of June 30, 2021, amounted to CNY 1,284,437,054.13, a slight decrease from CNY 1,296,033,284.29 at the end of 2020[196]. - Cash and cash equivalents decreased to CNY 225,028,850.53 from CNY 307,122,862.85 year-over-year[196]. - Accounts receivable stood at CNY 446,617,270.80, down from CNY 462,906,711.12 in the previous period[196]. - Long-term equity investments were reported at CNY 1,001,271,019.89, a decrease from CNY 1,104,721,061.14[196]. - Fixed assets decreased to CNY 385,087,754.87 from CNY 400,320,087.22[196]. - Inventory increased to CNY 252,087,725.15 from CNY 210,033,279.95[196]. - Other current assets increased slightly to CNY 31,980,550.83 from CNY 30,266,450.88[196]. - The total non-current assets were valued at CNY 1,448,332,174.76, reflecting a decrease from the previous period[196]. - Current liabilities increased to $3,058,182,444.44 from $2,977,152,262.87, an increase of approximately 2.72%[199]. - Non-current liabilities decreased to $603,884,014.57 from $682,536,932.78, a reduction of about 11.53%[199]. Market and Business Strategy - The market share for security chips remains among the top in the domestic market, with a stable market share for second-generation ID card chips[34]. - The company plans to issue shares to acquire equity in Datang Liancheng Information System Technology Co., Ltd., which is expected to optimize its main business structure and enhance sustainable operational capacity[35]. - The company is focusing on expanding its integrated circuit design and information communication security sectors, driven by increasing national emphasis on information security[28]. - The company aims to implement a "terminal + platform" industry solution model to promote collaborative development across its business sectors[34]. - The company is committed to continuous talent development, ensuring a clear career path for employees and fostering a strong corporate culture[33]. Legal and Regulatory Issues - The company faces market risks due to intensified competition in the telecommunications industry, impacting future operations and development[60]. - Operational risks have arisen from the pandemic and external market changes, potentially affecting business performance[61]. - Legal risks are present due to multiple ongoing lawsuits, with uncertain outcomes affecting financial stability[63]. - The company is at risk of delisting if the audited net assets remain negative at the end of 2021[64]. - The company is actively involved in multiple legal disputes, reflecting ongoing challenges in its operational environment[135]. Related Party Transactions - The total amount of related party transactions for the current period is CNY 17,819,285.87, a decrease of approximately 48.8% compared to the previous period's CNY 34,779,616.12[158]. - Sales of goods to related parties amounted to CNY 20,921,986.44, down 52.8% from CNY 44,346,998.89 in the previous period[161]. - The company incurred CNY 10,080,474.57 in other related transactions, which is an increase of approximately 5.2% compared to CNY 9,584,196.48 in the previous period[161]. - The company has a total of CNY 650,000,000.00 in related party debts, with CNY 247,000,000.00 incurred during the reporting period[165]. Environmental and Social Responsibility - The company achieved ISO 14001 environmental management system certification in June 2021, indicating a commitment to environmental risk management and energy consumption control[75]. - The company saved 2,848 tons of tap water in the first half of 2021, with 2,569 tons sourced from treated wastewater and 279 tons from rainwater collection[78]. - The company implemented low-carbon office practices and refined energy consumption management to reduce carbon emissions[80]. - The company allocated 150,000 yuan for poverty alleviation efforts in Henan Province, focusing on infrastructure and assistance for underprivileged families[81].

Financial Performance - Operating revenue for the reporting period was CNY 103,131,783.13, representing a decline of 40.40% year-on-year[12] - Net loss attributable to shareholders was CNY -63,603,990.73, compared to a loss of CNY -103,715,132.54 in the same period last year[12] - Basic and diluted earnings per share were both CNY -0.0721, compared to CNY -0.1176 in the previous year[14] - The company anticipates a potential cumulative net loss for the year due to ongoing structural adjustments and losses from certain joint ventures[31] - The company reported a net loss of -¥6,767,663,773.00, worsening from -¥6,704,059,782.27[39] - Net loss for Q1 2021 was ¥97,223,897.67, compared to a net loss of ¥114,690,278.06 in Q1 2020, showing an improvement of 15.3%[52] - The total comprehensive loss for Q1 2021 was -¥97,223,897.67, compared to -¥114,690,278.06 in Q1 2020, indicating a reduction in losses[52] Cash Flow - Net cash flow from operating activities was CNY -98,243,139.55, worsening from CNY -40,542,760.03 in the same period last year[12] - Net cash flow from operating activities decreased by ¥57,700,379.52, resulting in a net outflow of ¥98,243,139.55[30] - Net cash flow from investing activities decreased by ¥142,912,215.66, leading to a net outflow of ¥8,821,602.10[30] - Net cash flow from financing activities increased by ¥307,965,479.19, resulting in a net inflow of ¥51,310,636.11[30] - The company reported a cash outflow from investing activities of CNY 415,307.56, compared to CNY 2,449,424.56 in the previous year[68] - The company received cash inflows from operating activities totaling CNY 115,599,046.13 in Q1 2021, down from CNY 320,467,464.68 in Q1 2020, a decline of about 64%[63] - The cash outflow from operating activities was CNY 213,842,185.68 in Q1 2021, compared to CNY 361,010,224.71 in Q1 2020, showing a reduction in cash outflows[63] Assets and Liabilities - Total assets at the end of the reporting period were CNY 3,107,874,359.36, a decrease of 1.04% compared to the end of the previous year[12] - Non-current assets totaled ¥1,807,135,600.51, a decrease from ¥1,844,386,060.90[38] - Total liabilities reached ¥3,724,368,107.49, compared to ¥3,659,689,195.65 previously[39] - Current liabilities increased to ¥3,124,274,618.47 from ¥2,977,152,262.87, reflecting a significant rise[39] - Total liabilities included short-term borrowings of CNY 667,972,328.68, unchanged from the previous year[70] - The total equity attributable to shareholders was reported at -¥1,311,873,014.03, indicating a negative equity position[76] - Total liabilities amount to approximately $4.21 billion[81] - Total equity stands at approximately $1.93 billion[81] Shareholder Information - The total number of shareholders at the end of the reporting period was 113,217[20] - The largest shareholder, Telecom Science and Technology Research Institute, held 151,252,178 shares, accounting for 17.15% of total shares[20] - The second largest shareholder, Datang Telecom Technology Industry Holdings Co., Ltd., held 148,118,845 shares, representing 16.79%[20] Operational Adjustments - Operating revenue decreased by 40.40% to ¥103,131,783.13 from ¥173,036,013.51, primarily due to the company's exit from low-margin businesses[25] - Operating costs fell by 40.06% to ¥63,395,947.39 from ¥105,772,338.31, reflecting the same business adjustments[25] - R&D expenses decreased by 44.89% to ¥23,761,357.95 from ¥43,119,384.60, attributed to normal project progress and industry adjustments[26] - The company executed new leasing standards, resulting in an increase in right-of-use assets by ¥14,518,126.54[24] Other Financial Metrics - Non-operating income included government subsidies amounting to CNY 3,198,681.79[15] - The company reported a total of CNY 2,096,552.88 in non-recurring gains and losses after tax[17] - Accounts receivable increased by 73.47% to ¥27,174,350.25 from ¥15,664,986.55[21] - Contract assets rose by 130.20% to ¥2,681,851.73 from ¥1,165,019.17, mainly due to an increase in business settlements not reaching unconditional collection rights[24] - The company incurred financial expenses of CNY 9,446,677.34 in Q1 2021, up from CNY 5,854,529.09 in Q1 2020, marking an increase of approximately 61%[56] - The company reported an investment loss of ¥45,975,623.74 in Q1 2021, worsening from a loss of ¥11,956,540.60 in Q1 2020[50]

Financial Performance - The company's operating revenue for 2020 was CNY 1,207,211,485.29, a decrease of 15.62% compared to CNY 1,430,647,507.10 in 2019[23] - The net profit attributable to shareholders of the listed company was a loss of CNY 1,363,811,107.12, compared to a loss of CNY 899,323,157.29 in 2019[23] - The net cash flow from operating activities was CNY 29,700,506.12, down 88.87% from CNY 266,784,766.64 in 2019[23] - The total assets at the end of 2020 were CNY 3,140,419,345.19, a decrease of 45.57% from CNY 5,769,677,559.43 at the end of 2019[26] - The net assets attributable to shareholders of the listed company were CNY -1,311,873,014.03 at the end of 2020, compared to CNY 33,546,716.90 at the end of 2019[26] - The company's revenue excluding non-main business income was CNY 1,180,460,807.92[23] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY -1,404,623,182.55[23] - The company reported a basic earnings per share of -1.5461 CNY for 2020, compared to -1.0195 CNY in 2019, indicating a significant decline[27] - Total revenue for the fourth quarter of 2020 was 456,191,271.05 CNY, while the net profit attributable to shareholders was -1,109,379,465.42 CNY[28] - The company reported a net loss of approximately RMB 1.36 billion for 2020, with no profit distribution or capital reserve increase planned for the reporting period[102] Business Segments - The company focuses on three main business areas: integrated circuit design, information communication security, and 5G-enabled applications, leveraging its existing technology[36] - The integrated circuit design sector includes products such as second-generation ID card chips and financial payment chips, with a growing market demand[36] - The information communication security market is expected to expand as policies and regulations are implemented, despite lower-than-expected investments in 2020[36] - The 5G application sector is anticipated to enter a growth phase in the next 3-5 years as network construction progresses[36] - The integrated circuit design segment generated revenue of CNY 460.43 million, down 17.11% year-on-year, with a gross margin of 49.58%, an increase of 6.40 percentage points[48] - The information communication security segment's revenue was CNY 185.78 million, up 49.87% year-on-year, but the gross margin decreased by 6.44 percentage points to 12.57%[48] - The 5G-enabled applications segment reported revenue of CNY 534.25 million, a decrease of 26.99% year-on-year, with a gross margin of 24.41%, an increase of 6.89 percentage points[48] Risk Management and Future Outlook - The company has detailed risk descriptions related to its future development in the report[8] - The company emphasizes that forward-looking statements do not constitute substantive commitments to investors[7] - The company plans to continue focusing on the "big safety" strategy to enhance core business and product integration in 2021[44] - The company is actively developing differentiated new products to maintain market share in the information communication security sector[44] - The company faces risks including market competition, operational challenges due to external factors, and potential delisting due to negative net assets at the end of 2020[96][104] - The company is committed to improving asset quality through major asset restructuring to enhance profitability and ensure sustainable development[96] Legal and Compliance Issues - The company has engaged in significant litigation, with a total amount involved in disputes reaching 365,680,137.60 RMB related to a sales contract dispute[121] - The company is involved in multiple legal disputes, with a notable contract dispute amounting to ¥44,503,712.73 (approximately $6.9 million) against several defendants, with a court mediation scheduled for June 30, 2021[129] - The company is currently engaged in a trademark infringement case with a claim of ¥20,000,000.00 (approximately $3.1 million), which is under trial in Dongguan Intermediate People's Court[130] - The company has multiple ongoing trademark infringement disputes, with amounts ranging from ¥200,000.00 (approximately $31,000) to ¥500,000.00 (approximately $78,000), all pending in various courts in Guangzhou[132] - The company has initiated enforcement actions in response to non-compliance with arbitration rulings regarding payment obligations[137] - The company is actively pursuing legal avenues to protect its intellectual property rights and mitigate financial losses from competitors[170] Research and Development - Research and development expenses increased by 6.92% to 293,576,102.30 CNY, with total R&D investment accounting for 15.51% of operating revenue[57][58] Asset Management - The company’s overall asset scale has decreased due to the exclusion of subsidiaries from the consolidated financial statements[37] - The company’s total assets decreased significantly, with cash and cash equivalents down 30.27% to 307,122,862.85 CNY[65] - The company’s accounts receivable decreased by 54.46% to 462,906,711.12 CNY compared to the previous period[65] - The company’s total liabilities decreased by 44.07% for short-term borrowings, amounting to 667,972,328.68 CNY[65] - The company’s goodwill was significantly impaired during the reporting period, leading to a reduction in asset value[69] Corporate Governance - The company did not propose any profit distribution or capital reserve transfer to increase share capital during the reporting period[6] - The company has made long-term commitments to avoid competition with its parent company and to maintain its independence[103] - The company has a commitment to prevent dilution of immediate returns, with a commitment made on June 23, 2020, valid for the long term[108]

Financial Performance - Operating income for the period was CNY 751,020,214.24, representing a decrease of 12.92% year-on-year[18]. - Net profit attributable to shareholders of the listed company was CNY -254,431,641.70, showing an improvement from CNY -554,100,377.91 in the previous year[18]. - The company reported a net profit excluding non-recurring gains and losses of CNY -239,446,198.98, an improvement from CNY -598,959,078.00 in the previous year[18]. - The company's net profit for the reporting period was -28,312,258.95, a significant increase in loss compared to -14,985,442.72 from the previous period[26]. - The net loss attributable to shareholders was -193,816,759.60 RMB, compared to a profit of 33,546,716.90 RMB in the previous period[54]. - The net loss for Q3 2020 was ¥20,394,702.91, an improvement from a net loss of ¥110,318,911.47 in Q3 2019[68]. - The total comprehensive income for the quarter was a loss of $155.89 million, compared to a loss of $252.28 million year-over-year[65]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 5,442,996,491.41, a decrease of 5.66% compared to the end of the previous year[18]. - The total assets as of September 30, 2020, were ¥5,442,996,491.41, down from ¥5,769,677,559.43 at the end of 2019[47]. - Total liabilities remained relatively stable at 4,345,957,256.38 RMB compared to 4,344,422,560.02 RMB, showing a slight increase of 0.04%[53]. - The company's equity attributable to shareholders decreased significantly to -5,585,804,514.26 RMB from -5,321,545,128.04 RMB, indicating a worsening financial position[54]. - Total liabilities reached approximately ¥4.34 billion, reflecting a decrease of ¥30.39 million[87]. - Current liabilities totaled approximately ¥3.92 billion, a decrease of ¥30.39 million compared to the previous period[87]. Cash Flow - Net cash flow from operating activities for the year-to-date was CNY 77,347,818.87, an increase of 93.67% compared to the same period last year[18]. - The net cash flow from investing activities was ¥377,998,849.16, a significant increase of ¥506,730,174.53 compared to a negative cash flow of ¥128,731,325.37 in the same period last year[35]. - The company reported a net cash inflow from operating activities of ¥77,347,818.87 in Q3 2020, compared to ¥39,937,895.35 in Q3 2019, indicating a positive cash flow trend[73]. - The cash inflow from operating activities was 81,244,294.37 RMB, down from 194,065,532.96 RMB in the same period last year[75]. - The company reported a net cash flow from investing activities of 377,998,849.16 RMB, a substantial improvement from -128,731,325.37 RMB in the previous year[75]. Shareholder Information - The total number of shareholders at the end of the reporting period was 112,329, with the top ten shareholders holding a combined 36.56% of shares[26]. - The company confirmed an estimated liability of 74,078,986.57, reflecting a 69.32% increase compared to the previous period[30]. Expenses and Costs - Total operating costs amounted to approximately $372.14 million, a decrease from $399.72 million year-over-year[59]. - Research and development expenses increased to $84.09 million, up from $61.26 million, reflecting a growth of 37.1%[59]. - Sales expenses decreased to $24.40 million from $33.18 million, a reduction of 26.3% year-over-year[59]. - Management expenses were reported at $59.17 million, down from $74.74 million, reflecting a decrease of 20.8%[59]. - The company experienced a credit impairment loss of $6.35 million, compared to a loss of $1.74 million in the previous year[62]. Market and Strategic Outlook - The company plans to expand its market presence and enhance product development in response to changing market conditions[30]. - The company expects a potential loss in cumulative net profit for the year due to ongoing structural optimization and the impact of the pandemic[41].

Financial Performance - The company's operating revenue for the first half of 2020 was ¥517,365,446.86, a decrease of 10.56% compared to ¥578,422,914.02 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was -¥143,173,098.36, improving from -¥322,431,994.81 year-on-year[21]. - The net cash flow from operating activities was -¥18,325,129.94, a significant decline of 130.38% compared to ¥60,329,628.54 in the previous year[21]. - The total assets at the end of the reporting period were ¥5,758,991,666.05, a slight decrease of 0.19% from ¥5,769,677,559.43 at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company were -¥81,039,191.99, a decrease of 341.57% from ¥33,546,716.90 at the end of the previous year[21]. - Basic earnings per share for the first half of 2020 were -¥0.1623, compared to -¥0.3655 in the same period last year[24]. - The company reported a total revenue of approximately ¥1,000,000,000 for the first half of 2020, with a net loss of around ¥493,111,747.23[58]. - The company anticipates a potential cumulative net profit loss for the year due to the adverse effects of the COVID-19 pandemic on market and supply chain operations[58]. Operational Efficiency - The company's gross profit margin increased by 16.70 percentage points year-on-year, indicating improved profitability despite a decline in revenue[37]. - The company reduced its operating costs by 31.91% to ¥275,423,692.20, attributed to the exit from low-margin businesses[41]. - Research and development expenses decreased by 23.22% to ¥91,724,340.90, reflecting adjustments in response to industry conditions[41]. - The company achieved a 23% increase in contract amounts compared to the previous year, indicating strong future business prospects[37]. - The company maintained a leading position in the operator market for industry terminals, leveraging its advantages in intercom terminal products[37]. - The company is focusing on the 5G-enabled application sector, with significant growth expected in telecommunications support and big data applications[33]. Cash Flow and Investments - The company reported a net cash flow from investment activities of ¥236,474,489.85, a notable improvement compared to the previous year[41]. - The company reported non-recurring gains and losses of ¥13,882,892.02 from government subsidies related to normal business operations[25]. Risks and Challenges - The company has identified potential risks in its operations, which are detailed in the report[8]. - The company continues to face challenges related to business scale and profitability, exacerbated by the ongoing pandemic and market changes[40]. - The company faces market risks due to the overall economic downturn caused by the pandemic, impacting contract signing and payment collection[59]. - The company is addressing technology and product risks by focusing on market demand and accelerating product technology upgrades[60]. - The company has improved its asset-liability ratio through significant asset restructuring but still faces funding risks due to unmet financial expectations[61]. - The company is currently involved in multiple litigation cases, which pose a risk of financial loss depending on the outcomes[62]. Legal and Compliance Issues - The company is currently involved in a total of 10 ongoing legal disputes related to trademark rights and unfair competition, with claims ranging from 200,000.00 CNY to 1,000,000.00 CNY[86][90]. - The company is actively involved in legal proceedings related to trademark rights and unfair competition, with various claims pending[104]. - The company is pursuing enforcement of a payment obligation of 2,208,162.16 CNY against Fujian Yishidai Information Technology Co., Ltd., with the case currently in enforcement proceedings[135]. - The company has faced multiple legal challenges, indicating a significant focus on protecting its intellectual property rights[110]. Related Party Transactions - The company reported a total of 93,249,069.45 CNY in sales to related parties during the current period, a significant increase from 14,703,606.78 CNY in the previous period, reflecting a growth of approximately 532.5%[142]. - The company purchased goods worth 34,159,359.83 CNY from related parties in the current period, compared to only 1,153,372.42 CNY in the previous period, indicating a growth of approximately 2,868.5%[142]. - The total amount of other related transactions, including rent and utilities, reached 9,584,196.48 CNY in the current period, up from 5,838,832.71 CNY in the previous period, representing an increase of about 64.5%[145]. - The company has a total of 700 million CNY in related party debts, which includes 400 million CNY provided by a related party for operational support[149]. Environmental and Social Responsibility - The company allocated 150,000 RMB for poverty alleviation projects in Henan Province, improving infrastructure and assisting underprivileged families[156]. - The company processed 2,772 tons of reclaimed water and collected 311 tons of rainwater, saving 3,083 tons of tap water in the first half of 2020[161]. - The company has achieved ISO14001 environmental management system certification, focusing on environmental risk management[161]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 109,335[167]. - The top two shareholders hold 33.94% of the shares: Telecom Science and Technology Research Institute Co., Ltd. at 17.15% and Datang Telecom Technology Industry Holdings Co., Ltd. at 16.79%[167].