Financial Performance - Operating revenue for the first nine months was CNY 281,468,869.58, a decrease of 38.38% year-on-year[7] - Net profit attributable to shareholders was a loss of CNY 143,697,902.23, improving from a loss of CNY 170,202,182.92 in the same period last year[7] - The weighted average return on equity was -0.2206%[7] - The company reported a net cash flow from operating activities of -CNY 83,706,203.81 for the first nine months[7] - The company reported a net loss for the first three quarters of 2020, with total revenue of ¥281,468,869.58, down 38.4% from ¥456,775,459.82 in the same period of 2019[25] - The total comprehensive income for Q3 2020 was -¥25,446,176.59, an improvement from -¥55,218,937.93 in the same quarter of the previous year[27] - The net profit for Q3 2020 was -11,062,368.65 CNY, compared to -1,407,483.07 CNY in Q3 2019, indicating a significant decline in profitability[30] Assets and Liabilities - Total assets decreased by 8.87% to CNY 2,192,904,854.05 compared to the end of the previous year[7] - Total liabilities decreased to ¥1,617,289,485.82 from ¥1,687,197,140.40, indicating improved financial stability[19] - The company's total assets decreased to ¥2,192,904,854.05 from ¥2,406,342,115.43, reflecting a contraction in the asset base[19] - Total current assets decreased to ¥1,736,329,576.09 from ¥1,922,603,776.87, indicating a decline in liquidity[17] - Total liabilities amounted to CNY 1,880,314,138.94, with current liabilities at CNY 705,176,003.60 and non-current liabilities at CNY 1,175,138,135.34[44] - The company’s total non-current liabilities included estimated liabilities of CNY 1,175,138,135.34, indicating long-term financial commitments[44] Shareholder Information - Net assets attributable to shareholders decreased by 19.80% to CNY 580,017,294.91 compared to the end of the previous year[7] - The total number of shareholders at the end of the reporting period was 28,502[12] - The largest shareholder, Yiyang Group, held 32.89% of the shares, with 64,459,419 shares frozen[12] Cash Flow and Investments - The company reported an investment cash outflow of 6,727,790.79 CNY in the first three quarters of 2020, compared to 1,273,375.71 CNY in 2019, indicating increased investment activity[33] - The net cash flow from investing activities was negative at -¥543,302.87 for the first three quarters of 2020, compared to -¥531,343.86 in 2019, indicating continued investment in growth despite cash outflows[36] - Cash received from sales of goods and services in the first three quarters of 2020 was 299,379,544.19 CNY, compared to 582,644,477.84 CNY in 2019, representing a decline of about 48.7%[32] Operational Efficiency - Operating costs decreased by 49.97% to CNY 65,898,203.29, reflecting the drop in operating revenue[14] - The company incurred a total of 20,620,999.94 CNY in tax payments during the first three quarters of 2020, down from 42,068,494.76 CNY in 2019[33] - The cash flow from operating activities included 76,276,443.22 CNY received from other operating activities in the first three quarters of 2020, a significant increase from 3,185,717.51 CNY in 2019[32] Research and Development - Development expenses surged by 106.36% to ¥10,931,233.69 from ¥5,297,187.77 year-on-year, reflecting higher R&D investments[15] - Research and development expenses for Q3 2020 amounted to ¥23,449,553.27, a significant decrease of 56.6% compared to ¥54,098,537.01 in Q3 2019[25] - The company's R&D expenses in Q3 2020 were ¥5,679,036.76, down from ¥12,597,980.06 in Q3 2019, reflecting a 55.1% decrease[28] Inventory Management - The company reported a significant reduction in inventory to ¥145,877,220.44 from ¥157,863,278.67, suggesting improved inventory management[18] - The company’s total inventory as of September 30, 2020, was ¥131,734,349.32, a decrease of 10% from ¥146,158,835.49 at the end of 2019[22]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥183.59 million, a decrease of 44.95% compared to ¥333.48 million in the same period last year[23]. - The net profit attributable to shareholders of the listed company was -¥118.21 million, slightly worse than -¥115.21 million in the previous year[23]. - The net cash flow from operating activities was -¥86.16 million, an improvement from -¥149.41 million in the same period last year[23]. - The total assets decreased by 7.49% to ¥2.23 billion from ¥2.41 billion at the end of the previous year[23]. - The net assets attributable to shareholders of the listed company decreased by 16.34% to ¥605.03 million from ¥723.24 million at the end of the previous year[23]. - The company reported a revenue of CNY 183.59 million for the first half of 2020, a decrease of 44.95% compared to the same period last year[35]. - The net loss attributable to shareholders was CNY 118.21 million, with a net loss of CNY 121.23 million after excluding non-recurring gains and losses[35]. - The company reported a significant decrease in accounts payable, with a 76.58% reduction in tax payables year-on-year[41]. - The company reported a total comprehensive loss of approximately ¥118.56 million for the first half of 2020, compared to a loss of ¥115.56 million in the same period of 2019[102]. Operational Challenges - The company faced non-operating fund occupation by the controlling shareholder amounting to ¥708.70 million during the reporting period[6]. - The company is under investigation by the China Securities Regulatory Commission, which may lead to significant legal risks[10]. - The company is experiencing operational risks due to the freezing of multiple bank accounts related to debt litigation, affecting new contract signings[10]. - The company is taking legal measures to protect its rights and is working on restoring its R&D capabilities after significant personnel losses[10]. - The company faced significant operational challenges due to the debt litigation of its controlling shareholder, resulting in multiple bank accounts being frozen[34]. - The company is actively addressing issues related to the restructuring of its controlling shareholder, with a commitment of 300 million yuan in restructuring funds already received[56]. - The company has experienced operational challenges due to delays in salary payments and the loss of key personnel, but the situation is expected to improve with the finalization of the restructuring plan[57]. - The company is focused on resolving current issues to protect the interests of shareholders and ensure business continuity[58]. Legal and Regulatory Issues - The company is currently under investigation by the China Securities Regulatory Commission, and it is cooperating fully with the investigation[65]. - The company is involved in multiple ongoing lawsuits, with a total potential liability of approximately ¥50 million related to financial loan contract disputes[62]. - A lawsuit involving a loan contract dispute with a potential liability of ¥8.5 million is currently pending[62]. - The company faces a financial loan contract dispute with a potential liability of ¥40 million, which is still under review[63]. - A lawsuit regarding a financing lease contract has a potential liability of ¥32.8 million, with the case currently in mediation[62]. - The company has a total of ¥5,055.29 million in liabilities from a contract dispute, with a 100% joint liability for repayment[63]. - There is an ongoing lawsuit with a potential liability of ¥9,700 million related to a private loan dispute, currently in the second instance[63]. - The company has been listed as a dishonest executor by the Yinchuan Intermediate People's Court due to failure to fulfill joint repayment obligations[66]. - The company has successfully been removed from the dishonest executor list as of June 20, 2020[66]. Shareholder and Capital Structure - The company has not proposed any profit distribution or capital reserve transfer to increase share capital during the reporting period[4]. - The company raised CNY 1,095.87 million from a private placement, with a subscription amount of CNY 1,100 million from Yiyang Group[68]. - The maximum number of shares issued in the private placement was adjusted to 67,608,684 shares[68]. - The company’s employee stock ownership plan involved a subscription amount of CNY 11,432,986 from Yiyang Xintong[68]. - The company completed the employee stock ownership plan by purchasing 599,600 shares, accounting for 0.106% of the total share capital, at an average price of RMB 15.106 per share, totaling RMB 9,057,538.36[69]. - The total number of ordinary shareholders as of the end of the reporting period is 31,186[80]. - The top shareholder, Yiyang Group, holds 207,573,483 shares, accounting for 32.89% of total shares, with 64,459,419 shares frozen[81]. Research and Development - The company's management expenses decreased by 25.30% to CNY 134.97 million, while sales expenses fell by 40.69% to CNY 26.41 million[35]. - Research and development expenses were CNY 99.31 million, down 23.20% year-on-year[35]. - The company obtained 5 new software copyright certificates and 11 invention patent certificates during the reporting period[34]. - The company aims to enhance its core competitiveness in OSS, cloud security, big data, and artificial intelligence despite the challenging environment[29]. - The company is a strategic partner of major telecom operators in China, focusing on the development of next-generation OSS solutions for 5G network management[30]. Financial Position - The company's cash and cash equivalents as of June 30, 2020, amount to ¥1,110,728,294.25, a decrease from ¥1,239,143,722.99 at the end of 2019[89]. - Accounts receivable decreased to ¥365,786,779.25 from ¥404,973,057.12 year-over-year[89]. - Inventory increased to ¥171,592,800.29 from ¥157,863,278.67 year-over-year[89]. - The total current assets as of June 30, 2020, are ¥1,762,077,333.46, down from ¥1,922,603,776.87 at the end of 2019[89]. - The company has a long-term equity investment valued at ¥2,328,993.61 as of June 30, 2020[89]. - The company reported a net cash outflow from investment activities of 332,244.84 RMB in the first half of 2020, compared to a net outflow of 287,584.86 RMB in the same period of 2019, indicating increased investment expenditures[108]. - The total equity attributable to the parent company at the end of the previous year was CNY 631,052,069.00[114]. - The total equity at the end of the current period was CNY 631,052,069.00, with a total accumulated loss of CNY 3,204,158,282.50[120]. Governance and Compliance - The company held two extraordinary general meetings in 2020, with all procedures and resolutions compliant with relevant laws and regulations[52]. - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance, ensuring compliance and accuracy[130]. - The company has established a governance structure including a shareholders' meeting, board of directors, and supervisory board, along with 25 subsidiaries[126]. - The company has undergone significant changes in its board of directors, with multiple resignations and elections during the reporting period[86]. Future Outlook - The company plans to focus on cost reduction strategies and improving operational efficiency in the upcoming quarters to mitigate losses[98]. - The competitive landscape is intensifying with the rapid development of the 5G market, leading to potential price wars and market share challenges[48].

Financial Performance - In 2019, the company achieved a net profit of CNY 1,502.22 million, with a net profit attributable to shareholders of CNY 1,502.87 million[5]. - The company's operating revenue for 2019 was CNY 733.96 million, a decrease of 41.46% compared to CNY 1,253.76 million in 2018[23]. - The net profit attributable to shareholders was CNY 1,502.87 million, while the net profit after deducting non-recurring gains and losses was CNY -279.53 million[38]. - The basic earnings per share for 2019 were CNY 2.38, a significant improvement from negative CNY 2.34 in 2018[24]. - The company reported a net profit of -280 million RMB after deducting extraordinary gains and losses for the year 2019[147]. - The company reported a comprehensive income total of -CNY 1,168,610,227.95 for the reporting period[188]. Cash Flow and Liquidity - The net cash flow from operating activities was negative CNY 129.70 million, worsening from negative CNY 18.65 million in the previous year[23]. - The company's cash flow situation remains critical, with ongoing financial difficulties impacting employee morale and project delivery capabilities[30]. - The net cash flow from operating activities for 2019 was a negative RMB 129,695,451.92, compared to a negative RMB 18,647,443.30 in 2018, indicating a significant decline in operational performance[169]. - The company experienced a decrease in cash flow from operating activities, which may impact future investment and expansion plans[171]. - The overall financial health of the company appears to be under pressure, with negative cash flows in both operating and investing activities[170]. Assets and Liabilities - The total assets at the end of 2019 were CNY 2,406.34 million, down 11.22% from CNY 2,710.33 million at the end of 2018[23]. - The company recognized a provision for liabilities of 1.175 billion yuan, which accounted for 48.84% of total assets, reflecting a significant decrease of 60.59% compared to the previous period[57]. - The anticipated credit loss for the guarantee contracts was measured based on various factors, confirming an expected liability of 612 million yuan[57]. - The total liabilities at the end of the reporting period were CNY 3,087,197,669.12, reflecting an increase from CNY 1,612,702,390.68 in the previous year[183]. Operational Challenges - The company faced severe operational challenges due to the freezing of multiple bank accounts, leading to a significant decline in revenue from traditional telecom operations and a halt in new business opportunities, particularly in the 5G sector[30]. - The company has ongoing major litigation matters, including contract disputes involving multiple parties, disclosed in previous announcements[87]. - The company is currently under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws[149]. - The company faced disciplinary actions from the Shanghai Stock Exchange due to violations in information disclosure and internal controls, resulting in a 10-year disqualification for the actual controller from holding senior positions[126]. Strategic Focus and Future Outlook - The company plans to focus on the traditional telecommunications market and leverage 5G network construction as a breakthrough to capture new market opportunities[196]. - The company aims to enhance its unified basic technology platform by increasing R&D investment and optimizing existing technology applications[197]. - The company is focusing on expanding its market share in sectors like smart cities, intelligent transportation, and smart healthcare through innovative applications of AI and microservices[66]. - The company has not provided specific guidance for future performance due to the ongoing restructuring and operational challenges[6]. Research and Development - Research and development expenses totaled CNY 277.60 million, representing 38.66% of operating revenue[50]. - The company achieved significant technological advancements, including the completion of 44 software copyright certificates and 23 invention patents during the reporting period, showcasing its commitment to innovation[37]. - The company is developing a smart city platform and healthcare data-sharing platforms, collaborating with hospitals and research institutions to accumulate key technological capabilities in medical big data and AI[33]. Governance and Management - The company has established a governance structure including a shareholders' meeting, board of directors, and supervisory board[192]. - The company has maintained a consistent leadership structure, with key executives serving since 2017, ensuring stability in management[120]. - The company has a structured remuneration policy for its directors and senior management based on performance and company objectives[124]. - The company is actively cooperating with the China Securities Regulatory Commission's investigation and is working to improve its operating conditions[86].

Financial Performance - Operating revenue for the first quarter was CNY 42,976,438.68, a decrease of 77.72% year-on-year[7]. - Net loss attributable to shareholders was CNY -90,723,511.25, compared to a net loss of CNY -42,619,352.67 in the same period last year[7]. - Basic and diluted earnings per share were both CNY -0.14, compared to CNY -0.07 in the same period last year[7]. - Total operating revenue for Q1 2020 was ¥42,976,438.68, a decrease of 77.7% compared to ¥192,933,832.51 in Q1 2019[26]. - Net loss for Q1 2020 was ¥90,941,878.48, compared to a net loss of ¥43,004,964.76 in Q1 2019, representing a 111.1% increase in losses[27]. - The company reported a total profit loss of ¥91,980,070.93 in Q1 2020, compared to a loss of ¥39,086,186.91 in Q1 2019[26]. - The company’s total comprehensive loss for Q1 2020 was ¥90,941,878.48, compared to a comprehensive loss of ¥43,004,964.76 in Q1 2019[27]. Assets and Liabilities - Total assets decreased by 5.70% to CNY 2,269,170,952.64 compared to the end of the previous year[7]. - The company's total assets amounted to approximately CNY 2.27 billion, a decrease from CNY 2.41 billion as of December 31, 2019, representing a decline of about 5.5%[19]. - Total liabilities as of March 31, 2020, amounted to ¥1,638,802,419.85, a decrease of 2.1% from ¥1,685,031,704.16 on December 31, 2019[21]. - Total current liabilities increased to ¥777,368,727.44 from ¥705,176,003.60, marking a rise of 10.2%[24]. - The company's current liabilities totaled CNY 529.98 million, slightly up from CNY 512.06 million, marking an increase of approximately 3.5%[20]. - Total assets amounted to CNY 2,406,342,115.43 as of January 1, 2020[38]. - Total liabilities reached CNY 1,685,031,704.16, with current liabilities at CNY 512,059,005.06[39]. Cash Flow - Cash flow from operating activities was CNY -91,796,264.60, compared to CNY -81,727,713.71 in the previous year[7]. - In Q1 2020, the company's operating cash inflow was CNY 76,891,438.86, a decrease of 67.4% compared to CNY 235,917,173.92 in Q1 2019[30]. - The net cash flow from operating activities was -CNY 91,796,264.60, compared to -CNY 81,727,713.71 in the same period last year[30]. - The total cash outflow from operating activities was CNY 168,687,703.46, down 47.3% from CNY 317,644,887.63 in Q1 2019[31]. - The company experienced a significant reduction in cash flow from operating activities, indicating potential challenges in revenue generation[30]. - The company is facing liquidity challenges, as indicated by the negative cash flow and significant decrease in cash reserves compared to the previous year[31]. Shareholder Information - The total number of shareholders was 34,234, with the largest shareholder, Yiyang Group, holding 32.89% of shares[11]. - Yiyang Group's shares are subject to a freeze of 64,459,419 shares[11]. - The company has expressed uncertainty regarding the accuracy of financial data due to the pending restructuring of its controlling shareholder, Yiyang Group[6]. Employee and Operational Challenges - The company anticipates a slow revenue growth in the next reporting period due to financial constraints affecting project delivery and employee morale[15]. - The company is facing challenges with user trust and project acceptance due to changes in restructuring processes, which may delay revenue recognition[15]. - The company reported a significant increase in employee compensation liabilities, rising to CNY 15.27 million from CNY 4.14 million, an increase of approximately 269%[20]. - The company is currently not in compliance with certain commitments, which may impact future operations[15]. Inventory and Receivables - Accounts receivable increased to CNY 416.09 million from CNY 404.97 million, reflecting a growth of about 2.7%[19]. - The company has seen a decrease in inventory from CNY 157.86 million to CNY 179.18 million, indicating a change of about 13.5%[19]. - Inventory rose to ¥161,811,565.42 from ¥146,158,835.49, indicating an increase of 10.7%[23].

Financial Performance - Operating revenue for the first nine months was CNY 456,775,459.82, a decline of 36.32% year-on-year[6] - Net profit attributable to shareholders was CNY -170,202,182.92, showing a significant loss compared to the previous year's loss of CNY -458,135,808.53[6] - Total operating revenue for Q3 2019 was ¥123,298,825.49, a decrease from ¥230,528,168.58 in Q3 2018, representing a decline of approximately 46.5%[30] - Total operating revenue for the first three quarters of 2019 was ¥456,775,459.82, down from ¥717,307,428.40 in the same period of 2018, a decline of approximately 36.3%[30] - Revenue for Q3 2019 was approximately ¥70.04 million, a decrease from ¥170.95 million in Q3 2018, representing a decline of about 59%[35] - Net loss for Q3 2019 was ¥55,218,937.93, an improvement from a net loss of ¥76,729,651.95 in Q3 2018, reflecting a decrease in losses of approximately 28.1%[31] - Total profit (loss) for Q3 2019 was -¥55,375,324.94, an improvement from -¥77,015,283.50 in Q3 2018, marking a reduction in losses of approximately 28.1%[31] - The company reported a total profit loss of ¥1.56 million in Q3 2019, compared to a profit of ¥6.79 million in Q3 2018[36] Cash Flow and Liquidity - Cash flow from operating activities improved to CNY -164,202,482.63 from CNY -177,893,216.17 in the same period last year[6] - Cash flow from operating activities for the first three quarters of 2019 was ¥588.56 million, down from ¥816.51 million in the same period of 2018, a decrease of about 28%[38] - Total cash inflow from operating activities was ¥410,094,991.87, down 53.8% from ¥888,909,404.05 year-on-year[41] - Cash outflow from operating activities totaled ¥402,144,951.22, a reduction of 54.2% compared to ¥876,982,751.62 in 2018[41] - Cash and cash equivalents at the end of the period stood at ¥24,294,620.51, up from ¥13,047,655.48 at the end of the same period in 2018[42] - The total cash and cash equivalents decreased by ¥165,416,930.78 in the first three quarters of 2019, compared to a decrease of ¥213,004,669.34 in the same period of 2018[39] Assets and Liabilities - Total assets decreased by 7.75% to CNY 2,500,168,403.10 compared to the end of the previous year[6] - Total liabilities reached ¥3,638,446,142.37, compared to ¥3,501,590,092.44 at the end of 2018, indicating an increase of about 3.91%[27] - The company's total equity was reported at ¥725,839,667.91, up from ¥652,234,426.17 in the previous year, reflecting a growth of approximately 11.32%[28] - The company reported a total equity of CNY -773,756,289.07, indicating a negative equity position[45] - The company’s total equity and liabilities combined also totaled approximately $4.15 billion[49] Expenses and Cost Management - Sales expenses decreased by 45.69% to CNY 64,754,776.49 due to a halt in new business investments[12] - Management expenses were reduced by 25.92% to CNY 258,751,478.99 as a result of staff cuts in unprofitable departments[12] - Total operating costs for Q3 2019 were ¥181,260,034.68, compared to ¥282,029,914.64 in Q3 2018, indicating a reduction of about 35.7%[30] - Research and development expenses for Q3 2019 were ¥54,098,537.01, slightly up from ¥53,788,766.85 in Q3 2018, indicating a year-over-year increase of about 0.6%[30] Shareholder Information - The total number of shareholders reached 37,111, indicating a stable shareholder base despite financial challenges[9] - Basic and diluted earnings per share for Q3 2019 were both -¥0.0871, compared to -¥0.1214 in Q3 2018, showing a reduction in loss per share[33] Strategic Initiatives - The company is focusing on developing new profit growth points through new businesses and technologies, including a next-generation network operation support system based on SDN/NFV and AI, enhancing OSS system capabilities[14] - The company has launched several new products in IT operations, including OneITOM and AI intelligent early warning systems, aimed at improving fault operation and maintenance levels[15] - The company is participating in the planning work for the next-generation network management pilot project OSS 4.0 with China Mobile, aiming to enhance its core competitiveness and sustainable development capabilities[15] Legal and Operational Challenges - The company faced a significant impact on revenue due to multiple bank accounts being frozen, affecting new project signings in key industries[11] - The company is actively addressing the impact of its controlling shareholder's debt disputes through legal means to minimize potential losses[16] - The company is committed to ensuring normal production operations and completing its operational plans despite ongoing challenges[15]

Financial Performance - Operating revenue for the first nine months was ¥456,775,459.82, representing a decline of 36.32% compared to ¥717,307,428.40 in the same period last year[6]. - Total operating revenue for Q3 2019 was ¥123,298,825.49, a decrease from ¥230,528,168.58 in Q3 2018, representing a decline of approximately 46.5%[30]. - Total operating revenue for the first three quarters of 2019 was ¥456,775,459.82, down from ¥717,307,428.40 in the same period of 2018, a decline of about 36.3%[30]. - Operating revenue for Q3 2019 was approximately ¥70.04 million, a decrease from ¥170.95 million in Q3 2018, representing a decline of about 59%[35]. - Total profit (loss) for Q3 2019 was -¥55,375,324.94, an improvement from -¥77,015,283.50 in Q3 2018, marking a reduction in losses of approximately 28.1%[31]. - Net profit attributable to shareholders was -¥170,202,182.92, showing a significant improvement from -¥458,135,808.53 year-on-year[6]. - Net loss for Q3 2019 was ¥55,218,937.93, an improvement from a net loss of ¥76,729,651.95 in Q3 2018, reflecting a decrease in losses of approximately 28.1%[31]. - Total comprehensive loss for Q3 2019 was -¥55,218,937.93, compared to -¥76,729,651.95 in Q3 2018, indicating a decrease in comprehensive losses of approximately 28.1%[32]. Cash Flow - Cash flow from operating activities for the period was -¥164,202,482.63, slightly better than -¥177,893,216.17 in the previous year[6]. - Cash inflow from operating activities for the first three quarters of 2019 was approximately ¥588.56 million, compared to ¥816.51 million in the same period of 2018, a decrease of about 28%[38]. - Total cash inflow from operating activities was ¥410,094,991.87, down 53.8% from ¥888,909,404.05 in the previous year[41]. - Cash outflow from operating activities totaled ¥402,144,951.22, a reduction of 54.2% compared to ¥876,982,751.62 in 2018[41]. - The cash outflow from operating activities for the first three quarters of 2019 was approximately ¥752.76 million, compared to ¥994.40 million in the same period of 2018, a decrease of about 24%[38]. - Cash flow from financing activities resulted in a net outflow of -¥20,050,508.33, consistent with the previous year's outflow[42]. - The company reported a cash outflow of ¥183,134,000.57 related to other operating activities, down from ¥449,965,803.03 in the previous year[41]. Assets and Liabilities - Total assets decreased by 7.75% from the end of the previous year, amounting to ¥2,500,168,403.10[6]. - The total assets of the company as of September 30, 2019, were approximately ¥2.50 billion, down from ¥2.71 billion at the end of 2018, indicating a decrease of about 7.8%[22]. - Total liabilities reached ¥3,638,446,142.37, compared to ¥3,501,590,092.44 at the end of 2018, indicating an increase of about 3.91%[28]. - The company's total equity was reported at ¥725,839,667.91, up from ¥652,234,426.17 in the previous year, reflecting a growth of approximately 11.29%[28]. - The company reported a total equity of CNY -773,756,289.07, indicating a negative equity position[45]. - The company’s financial position reflects a significant reliance on non-current liabilities, which constitute about 85% of total liabilities[48]. Expenses - Sales expenses decreased by 45.69% to ¥64,754,776.49, reflecting a halt in new business investments to secure traditional business operations[12]. - Management expenses were reduced by 25.92% to ¥258,751,478.99 due to staff cuts and consolidation of unprofitable departments[12]. - Research and development expenses for Q3 2019 were ¥54,098,537.01, slightly up from ¥53,788,766.85 in Q3 2018, indicating a year-over-year increase of about 0.6%[30]. - Selling expenses for the first three quarters of 2019 were approximately ¥29.51 million, down from ¥82.69 million in the same period of 2018, a decrease of about 64%[35]. Strategic Initiatives - The company is focusing on developing new profit growth points through new businesses and technologies, particularly in the traditional communication industry, leveraging SDN/NFV technologies and AI for next-generation network operations[14]. - The company has launched several new products, including OneITOM and AI intelligent early warning systems, aimed at enhancing operational efficiency and fault management[15]. - The company is actively participating in the planning of the next-generation network management pilot project for China Mobile, contributing to the development of OSS 4.0 standards[15]. - The company faced a significant impact on revenue due to multiple bank accounts being frozen, affecting new project signings in key industries[11]. - The company is currently in the process of filing claims with the bankruptcy administrator of Yiyang Group to resolve related issues during its bankruptcy restructuring[13]. - The company is cooperating with the China Securities Regulatory Commission in an ongoing investigation regarding suspected violations of information disclosure laws[16]. Shareholder Information - The total number of shareholders was 37,111, with the largest shareholder holding 32.89% of the shares[9].

Financial Performance - The company's operating revenue for the first half of 2019 was approximately ¥333.48 million, a decrease of 31.49% compared to ¥486.78 million in the same period last year[21]. - The net profit attributable to shareholders for the first half of 2019 was a loss of approximately ¥115.21 million, an improvement from a loss of ¥381.50 million in the same period last year[21]. - The net cash flow from operating activities for the first half of 2019 was a negative ¥149.41 million, compared to a negative ¥92.07 million in the same period last year[21]. - The total assets at the end of the reporting period were approximately ¥2.58 billion, a decrease of 4.83% from ¥2.71 billion at the end of the previous year[21]. - The company reported a net asset attributable to shareholders of approximately -¥885.53 million, compared to -¥770.32 million at the end of the previous year[21]. - The company's total assets at the end of the reporting period amounted to 1,680,807,929.85 yuan, with significant portions frozen due to legal issues[45]. - The company reported a decrease in tax payable from 26,808,674.54 yuan to 12,888,121.32 yuan, reflecting a 51.93% decline[44]. - The net profit of Beijing Yiyang Xintong Technology Co., Ltd. was -5,845.29 million yuan, indicating ongoing financial challenges[47]. - The company reported a significant increase in other income, totaling CNY 20,189,257.90 for the first half of 2019, compared to CNY 4,941,732.58 in the same period of 2018[101]. - The company reported a total of ¥276,035,304.00 in undistributed profits, which is a critical indicator of its profitability[123]. Operational Challenges - The company faced significant impacts on its business due to the freezing of its basic account, leading to a sharp decline in new project signings in smart city, smart transportation, and healthcare informatization sectors[27]. - The company is facing significant challenges due to multiple bank account freezes, impacting its ability to secure new projects in transportation and healthcare sectors[36]. - The company is currently facing operational challenges due to the freezing of its basic accounts, which has adversely affected its smart city, smart transportation, and medical information projects[56]. - The company has faced risks related to ongoing litigation affecting its operations, with multiple accounts frozen, impacting new contract signings[49]. - The company is facing significant operational impacts due to multiple bank account freezes and ongoing investigations, which may affect its ability to continue as a going concern[134]. Legal and Regulatory Issues - The company is under investigation by the China Securities Regulatory Commission, which poses a risk of stock suspension[49]. - The company is actively cooperating with the China Securities Regulatory Commission in an ongoing investigation related to information disclosure violations[58]. - The company has been involved in litigation with various parties, including a claim of 4,600 million that is currently in the execution phase[65]. - The company has established a dedicated team to address legal disputes arising from guarantee issues and is actively communicating with its controlling shareholder to resolve financial disputes[36]. - The controlling shareholder, Yiyang Group, is undergoing bankruptcy reorganization and has committed to resolving its financial difficulties to protect the company's interests[36]. Shareholder and Equity Information - The controlling shareholder, Yiyang Group Co., Ltd., holds 207,573,483 shares, accounting for 32.89% of the total shares, with 64,459,419 shares frozen[87]. - The total equity attributable to the parent company at the end of the first half of 2019 was CNY 631,052,069.00, compared to CNY 631,052,069.00 at the end of the first half of 2018, indicating no change year-over-year[120]. - The total equity, including minority interests, was CNY -889,313,045.00, indicating a negative equity position[120]. - The company has a lock-up period of 36 months for 64,459,419 shares held by Yiyang Group Co., Ltd.[88]. - The company has not proposed any profit distribution or capital reserve increase for the first half of 2019, maintaining a zero dividend policy[52]. Research and Development - The company is focusing on expanding its market presence in AI, big data, and cloud services to create new profit growth points[36]. - R&D expenses decreased by 13.90% to ¥129,305,693.16, primarily due to salary adjustments for R&D personnel[41]. - The company participated in the "International AIOps Challenge" and won first place among 141 teams, showcasing its innovation capabilities in AI and 5G[32]. - The company is actively involved in the development of next-generation network operation support systems for 5G, enhancing its OSS system's cloud, automation, and intelligence capabilities[31]. - The company is investing in cloud computing, next-generation network management, and AI technology to drive innovation and enhance core competitiveness[134]. Financial Management and Strategy - The company has established a dedicated team to address issues related to the audit report and is urging Yiyang Group to formulate a repayment plan to mitigate adverse impacts on its operations[56]. - The company is focusing on developing new profit growth points by leveraging new technologies and businesses, including the deployment of next-generation network operation support systems based on SDN/NFV and AI[56]. - The overall financial performance reflects a need for strategic adjustments to improve cash flow and operational metrics moving forward[111]. - The financial report indicates a need for strategic reassessment due to the significant losses reported[120]. - The company is expected to focus on improving its financial health in the upcoming quarters[120]. Employee and Workforce Management - The company has reported a significant risk of talent loss due to decreased employee morale amid financial difficulties[49]. - The company is implementing measures to ensure the stability of its workforce and improve personnel capabilities amid operational challenges[135]. - The employee stock ownership plan purchased 599,600 shares, accounting for 0.106% of the total share capital, at an average price of RMB 15.106 per share, totaling RMB 9,057,538.36[68]. Accounting and Financial Reporting - The company has not made any changes to accounting policies or estimates compared to the previous accounting period[78]. - The company approved the implementation of new financial instrument standards starting from January 1, 2019[80]. - The company has not reported any changes in the number of shares held by directors, supervisors, and senior management during the reporting period[90]. - There were no significant changes in the financial condition or operating results due to the revised financial statement format[79]. - The company has not reported any new product launches or technological advancements during this period[120].

Financial Performance - Operating revenue for the first quarter was CNY 192,933,832.51, a decline of 6.85% year-on-year[7] - Net profit attributable to shareholders was a loss of CNY 42,619,352.67, improving from a loss of CNY 116,079,728.11 in the same period last year[7] - Basic and diluted earnings per share were both -0.0675 CNY, compared to -0.1839 CNY in the previous year[7] - Total operating revenue for Q1 2019 was ¥192,933,832.51, a decrease of 6.5% compared to ¥207,131,655.38 in Q1 2018[23] - Net profit for Q1 2019 was a loss of ¥43,004,964.76, an improvement from a loss of ¥116,186,748.80 in Q1 2018[24] - Basic and diluted earnings per share for Q1 2019 were both -¥0.0675, compared to -¥0.1839 in Q1 2018[25] - Total comprehensive income for Q1 2019 was CNY 35,269,000.60, compared to CNY 31,668,569.80 in Q1 2018, representing an increase of approximately 11.3%[26] Assets and Liabilities - Total assets decreased by 1.80% to CNY 2,661,593,031.61 compared to the end of the previous year[7] - As of March 31, 2019, total current assets amounted to ¥2,078,552,152.09, a decrease from ¥2,125,823,843.63 on December 31, 2018, representing a decline of approximately 2.2%[15] - The company's cash and cash equivalents decreased to ¥1,249,564,237.55 from ¥1,314,235,233.83, reflecting a reduction of about 4.9%[15] - Accounts receivable stood at ¥491,743,380.39, slightly down from ¥500,563,472.59, indicating a decrease of approximately 1.6%[15] - Inventory increased to ¥201,535,743.58 from ¥180,709,639.17, marking an increase of about 11.5%[15] - Total liabilities decreased to ¥3,478,354,285.44 from ¥3,484,087,438.17, a reduction of approximately 0.2%[17] - The company's total assets were reported at ¥2,661,593,031.61, down from ¥2,710,331,149.10, reflecting a decrease of about 1.8%[17] - The total equity attributable to shareholders decreased to -¥812,941,191.18 from -¥770,321,838.51, indicating a decline of approximately 5.5%[17] - Non-current assets totaled ¥583,040,879.52, slightly down from ¥584,507,305.47, a decrease of about 0.3%[16] - The total assets increased to ¥4,229,467,019.70 in Q1 2019 from ¥4,153,824,518.61 in Q1 2018, marking a growth of 1.8%[22] - Total liabilities rose to ¥3,541,963,592.93 in Q1 2019, up from ¥3,501,590,092.44 in Q1 2018, indicating an increase of 1.2%[22] - Owner's equity increased to ¥687,503,426.77 in Q1 2019 from ¥652,234,426.17 in Q1 2018, reflecting a growth of 5.4%[22] Expenses - Research and development expenses decreased by 39.22% to CNY 66,619,818.77 due to a reduction in the number of R&D personnel[12] - Selling expenses were reduced by 37.85% to CNY 29,433,834.42 as the company adjusted its operational strategy[12] - Management expenses decreased by 21.67% to CNY 82,229,682.94, as no performance bonuses were issued during the reporting period[12] - Research and development expenses decreased to ¥66,619,818.77 in Q1 2019 from ¥109,604,969.57 in Q1 2018, a reduction of 39.2%[23] - The company reported a significant decrease in sales expenses, which fell to ¥29,433,834.42 from ¥47,358,821.31, a decline of 37.8%[23] Cash Flow - The company reported a net cash flow from operating activities of -CNY 81,727,713.71, an improvement from -CNY 109,534,534.57 in the previous year[7] - Cash inflow from operating activities in Q1 2019 was CNY 235,917,173.92, down from CNY 336,082,444.90 in Q1 2018, a decrease of about 29.7%[29] - Net cash outflow from operating activities was CNY -81,727,713.71 in Q1 2019, improving from CNY -109,534,534.57 in Q1 2018[29] - Cash and cash equivalents at the end of Q1 2019 totaled CNY 245,644,881.08, compared to CNY 237,530,025.07 at the end of Q1 2018, an increase of approximately 3.7%[30] - Cash outflow from investing activities was CNY -673,169.99 in Q1 2019, compared to CNY -2,955,220.37 in Q1 2018, indicating a significant reduction in investment losses[29] - Cash outflow from financing activities was CNY -20,050,508.33 in Q1 2019, reflecting a decrease in financing costs compared to the previous year[30] - Operating cash inflow for the parent company was CNY 222,564,276.19 in Q1 2019, down from CNY 244,036,747.95 in Q1 2018, a decline of about 8.8%[31] - Net cash flow from operating activities for the parent company was CNY 15,366,601.42 in Q1 2019, a decrease from CNY 82,175,650.30 in Q1 2018[31] - Total cash outflow for the parent company's investing activities was CNY -252,103.00 in Q1 2019, significantly lower than CNY -2,574,873.00 in Q1 2018[32] - The company reported a net increase in cash and cash equivalents of CNY 15,114,498.42 in Q1 2019, compared to CNY 59,550,268.97 in Q1 2018, indicating a decrease in cash generation capacity[32] Shareholder Information - The total number of shareholders was 41,898, with the largest shareholder holding 32.89% of the shares[11] - The company reported a total of ¥1,410,500,904.71 in capital reserves, unchanged from the previous period[17] - Non-operating income for the period was CNY 38,617.73, offset by a loss from the disposal of non-current assets of CNY 19,406.30[8]

Financial Performance - The company reported a net profit of -1,474.95 million RMB for 2018, a decrease from -2,482.91 million RMB in 2017, indicating an improvement of 40.5% year-over-year[5]. - Total revenue for 2018 was 1,253.76 million RMB, down 7.11% from 1,349.69 million RMB in 2017[23]. - The company's net cash flow from operating activities was -18.65 million RMB, a significant improvement from -1,343.23 million RMB in 2017[23]. - The company's net assets attributable to shareholders were -770.32 million RMB at the end of 2018, a decline of 209.26% from 705.03 million RMB at the end of 2017[23]. - Basic earnings per share for 2018 were -2.3366 RMB, an improvement from -3.9346 RMB in 2017[24]. - The company reported a significant non-operating loss of approximately -1.39 billion in 2018, compared to -1.66 billion in 2017[29]. - The net profit attributable to shareholders was CNY -1,474.50 million, an increase of 40.61% year-on-year[43]. - The company reported a net loss of -¥3,087,197,669.12 in retained earnings, compared to -¥1,612,702,390.68 previously[165]. - The company reported a net loss of 1.475 billion RMB for the period, with a year-end net asset value of -774 million RMB[199]. Operational Challenges - The company faced non-operating fund occupation by the controlling shareholder amounting to 588 million RMB[7]. - The company is currently taking legal measures to protect its rights and interests amid debt disputes involving the controlling shareholder[8]. - The company faced significant operational challenges due to account freezes, impacting traditional business expansion and new project contracts[38]. - The company is actively working to resolve legal disputes and improve cash flow to ensure normal business operations[32]. - The company faces significant risks due to the freezing of multiple accounts, which has impacted normal bidding and resulted in a decrease in new contract amounts[75]. - Due to litigation matters, multiple bank accounts and subsidiary equity have been frozen, significantly impacting the company's operations[199]. Strategic Initiatives - The company aims to stabilize its market position in the telecommunications sector while exploring new profit growth points through big data, AI, cloud computing, and IoT applications[31]. - The company plans to leverage the commercial rollout of 5G to enhance its market position and drive the development of new applications in ultra-high definition, vehicle networking, and smart healthcare[65]. - The company is committed to expanding its applications in non-telecom sectors such as smart cities, intelligent transportation, and smart healthcare, utilizing AI and microservices[71]. - The company plans to maintain healthy, stable, and sustainable development in 2019, assuming no significant changes in the internal and external economic environment[43]. - The company plans to strengthen its traditional communication market while exploring new profit growth points through new business and technology[199]. Research and Development - Research and development expenses increased by 10.59% to CNY 264.94 million, while management and sales expenses decreased by 14.62% and 20.99%, respectively[53]. - The company achieved CMMI Level 5 certification and added 103 software copyrights and 11 new patent applications during the reporting period[36]. - The company is focusing on enhancing its core competitiveness through continuous investment in new technologies and product development, particularly in the areas of security and big data[39]. - The company has made progress in AI and big data applications in non-telecom sectors, establishing partnerships with hospitals and research institutions to accumulate key technology capabilities[36]. - The company plans to continue focusing on cost reduction and efficiency improvements in the upcoming periods to enhance profitability[171]. Legal and Regulatory Issues - The company is currently under investigation by the China Securities Regulatory Commission, which may lead to a risk of suspension of its stock listing if significant violations are confirmed[89]. - The company has initiated judicial reorganization to protect its assets and restore liquidity, with a shareholder meeting approving the application for reorganization on October 15, 2018[91]. - The controlling shareholder, Yiyang Group, has been declared bankrupt and has applied to the court to remove its status as a dishonest executor[95]. - The company has been involved in multiple litigation cases, including financing contract disputes and financial loan contract disputes, with announcements made in June, September, and November 2018[93]. Shareholder and Management Structure - The total number of ordinary shareholders at the end of the reporting period is 43,415, an increase from 41,898 in the previous month[110]. - The top ten shareholders hold a total of 207,573,483 shares, representing 32.89% of the company, with 64,459,419 shares frozen[113]. - The actual controller of the company is Deng Wei, who is also the chairman and CEO[118]. - The total pre-tax compensation for the board members and senior management during the reporting period amounted to 2,097.76 million CNY[123]. - The company has maintained a consistent management team since March 2017, with several members serving until March 2020[124]. Financial Health and Liabilities - The company recognized a total estimated liability of ¥2,981,977,591.40, a 79.32% increase from the previous period[61]. - The company incurred a total of ¥14.03 billion in extraordinary expenses related to legal liabilities, significantly impacting profits[59]. - The company reported a total of CNY 1,410,500,904.71 in capital reserves, which is a critical component of its equity structure[187]. - The total equity attributable to the parent company at the end of the period is CNY 631,052,069.00, with a decrease of CNY 2,524,476,707.84 during the year[183]. - The comprehensive income for the period shows a total loss of CNY 2,482,908,647.95, significantly impacting the overall equity[185].

Financial Performance - Revenue for the period was CNY 717,307,428.40, a decline of 17.36% year-on-year[6] - Net profit attributable to shareholders was CNY -458,135,808.53, showing a significant loss compared to CNY -61,240,864.01 in the same period last year[6] - The weighted average return on net assets was -95.54%, a decrease of 93.62 percentage points compared to the previous year[7] - The company reported a net loss of CNY 2.07 billion in retained earnings, compared to a loss of CNY 1.61 billion at the beginning of the year[21] - Net profit for Q3 2018 was a loss of CNY 76,729,651.95, compared to a loss of CNY 86,518,411.56 in Q3 2017, indicating an improvement in performance[29] - The net profit attributable to the parent company for Q3 2018 was -76,637,075.28 CNY, compared to -86,572,720.50 CNY in the same period last year, indicating an improvement of approximately 11.2%[30] - The total comprehensive income attributable to the parent company for Q3 2018 was -76,729,651.95 CNY, showing a decrease from -86,518,411.56 CNY year-over-year[30] Cash Flow - The net cash flow from operating activities was CNY -177,893,216.17, an improvement from CNY -539,148,171.31 year-on-year[6] - The net cash flow from financing activities was CNY -20,050,508.33, a decrease from CNY -400,154,291.78 year-on-year[12] - Operating cash inflow for the first nine months of 2018 was CNY 888,909,404.05, a slight decrease from CNY 905,256,234.11 in the same period last year[40] - Net cash flow from operating activities was CNY 11,926,652.43, a significant improvement compared to a net outflow of CNY -733,431,104.51 in the previous year[40] - Total cash outflow from operating activities reached CNY 876,982,751.62, down from CNY 1,638,687,338.62 year-on-year[40] - Cash inflow from financing activities was CNY 50,000,000.00, primarily from loans, while cash outflow was CNY 20,050,508.33[37] Assets and Liabilities - Total assets decreased by 9.13% to CNY 2,709,935,833.28 compared to the end of the previous year[6] - The company's total liabilities increased to CNY 2.46 billion from CNY 2.28 billion at the beginning of the year, indicating worsening financial health[21] - The company's equity attributable to shareholders decreased significantly to CNY 250.4 million from CNY 708.6 million at the beginning of the year, reflecting substantial losses[21] - Total assets as of September 30, 2018, amounted to CNY 4,242,157,379.84, up from CNY 4,107,224,130.92 at the beginning of the year, reflecting a growth of 3.3%[24] - Total liabilities increased to CNY 2,557,857,433.72 from CNY 2,282,830,082.44, representing a rise of 12.0%[25] - The company’s total equity decreased to CNY 1,684,299,946.12 from CNY 1,824,394,048.48, reflecting a decline of 7.7%[25] Legal and Regulatory Issues - The company faced multiple legal lawsuits affecting its operations and new contract signings, leading to a decline in employee morale and efficiency[12] - The company is under investigation by the China Securities Regulatory Commission for alleged violations of securities laws, and is actively cooperating with the investigation[13] - The company has initiated legal action against the controlling shareholder to protect the interests of the company and minority shareholders, with the controlling shareholder promising to repay the deducted funds[15] - The company faced a court-ordered deduction of funds amounting to CNY 48.8 million due to a lawsuit, resulting in an additional expense of CNY 25.8 million in the current period[13] Shareholder Information - The number of shareholders at the end of the reporting period was 44,760[9] - The top shareholder, Yiyang Group Co., Ltd., held 32.89% of the shares, with 207,573,483 shares frozen[9] Research and Development - Research and development expenses for the first nine months of 2018 were CNY 15,109,885.32, up from CNY 11,912,356.68 in the same period last year, indicating a focus on innovation[29] Other Financial Metrics - The company recognized an estimated compensation of CNY 232 million related to litigation, significantly impacting the current period's profit[12] - The company confirmed a receivable of CNY 477 million from Beijing Wuzhou Botong Technology Co., which is under special review, and the controlling shareholder has acknowledged borrowing funds from the company[14] - The company plans to evaluate a stem cell project as collateral for the repayment of the CNY 477 million owed by the controlling shareholder[14]