Financial Performance - The company's operating revenue for the first half of 2019 was ¥156,676,026.13, a decrease of 27.31% compared to ¥215,527,047.23 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was -¥15,331,759.09, representing a decline of 386.87% from a profit of ¥5,344,527.63 in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥15,839,335.77, a decrease of 421.16% compared to ¥4,931,980.18 in the same period last year[18]. - The basic earnings per share for the reporting period was -¥0.031, a decrease of 381.82% from ¥0.011 in the same period last year[19]. - The diluted earnings per share also stood at -¥0.031, reflecting the same decline of 381.82% compared to the previous year[19]. - The weighted average return on net assets was -4.33%, a decrease of 5.84 percentage points from 1.51% in the previous year[19]. - The company achieved operating revenue of ¥156,676,026.13, a decrease of 27.31% compared to the same period last year[28]. - The net profit attributable to the parent company was a loss of ¥15,331,759.09, primarily due to the decline in sales revenue[28]. - The company reported a significant increase in other income by 292.59% to ¥2,521,648.30, mainly due to increased VAT software refunds[30]. - The company reported a net loss of approximately ¥15.33 million for the period, highlighting challenges in profitability[90]. Cash Flow and Assets - The net cash flow from operating activities was -¥3,772,912.29, showing an improvement from -¥40,198,036.29 in the previous year[18]. - The total assets at the end of the reporting period were ¥563,314,122.03, an increase of 3.45% from ¥544,506,667.29 at the end of the previous year[18]. - The company's total assets showed a significant increase in accounts receivable, which rose by 63.78% to ¥69,066,589.96, accounting for 12.26% of total assets[36]. - Prepayments increased by 118.60% to ¥23,790,595.60, attributed to higher purchases of raw materials and increased payments to joint ventures[36]. - The intangible assets increased by 52.75% to ¥26,099,610.49, primarily due to internal R&D expenditures being capitalized[37]. - The company's total liabilities as of June 30, 2019, were RMB 334,555,167.50, compared to RMB 353,027,052.03 at the end of 2018, reflecting a decrease of approximately 5.2%[69]. - The company's current assets totaled RMB 357,157,208.60, compared to RMB 350,965,797.44 at the end of 2018, reflecting a growth of approximately 1.7%[68]. - The total current assets increased to CNY 332,692,593.04 from CNY 313,189,673.87, reflecting a growth of approximately 6.3%[72]. Research and Development - Research and development expenses increased by 93.31% to ¥21,850,404.82, reflecting a focus on innovation[30]. - R&D expenses increased by 93.31% to ¥21,850,404.82 compared to ¥11,303,010.26 in the same period last year[34]. - The company plans to enhance its competitive advantage through various measures in R&D innovation and market expansion[26]. - New product development initiatives are underway, focusing on innovation to capture market share[90]. Market Position and Strategy - The company’s core business includes the development and sales of smart control products, commercial terminal products, and smart interconnected products[23]. - The company has successfully applied its smart manufacturing solutions in multiple Nike and Adidas garment factories, positioning it for future growth[23]. - The company is exploring effective market promotion methods and establishing scalable sales channels for its smart interconnected products[43]. - The company plans to focus on expanding its market presence and enhancing product development in the upcoming quarters[104]. - The company aims to transition from a traditional identity verification product supplier to an innovative technology enterprise in smart identity recognition applications[43]. Financial Stability and Liabilities - The total liabilities decreased by approximately ¥338.20 million, indicating improved financial stability[97]. - The total equity attributable to shareholders decreased to CNY 337,871,040.77 from CNY 362,816,320.44, a decrease of about 6.9%[73]. - The company has a capital reserve of CNY 148.15 million and an undistributed profit of CNY 41.40 million[107]. - The company reported a deferred income of CNY 23,064,487.61, which is a significant component of its non-current liabilities[73]. Governance and Compliance - The company has renewed its contract with Zhongzheng Zhonghuan Accounting Firm for the 2019 financial report audit[47]. - No major litigation or arbitration matters during the reporting period[48]. - The company and its controlling shareholders maintained good integrity status, with no significant debts overdue[48]. - The company has not disclosed any environmental information as it does not fall under key pollutant discharge units[54]. - There were no significant accounting policy changes or errors requiring restatement during the reporting period[54]. Future Outlook - Future guidance indicates a cautious outlook, with expectations of gradual recovery in profitability[90]. - The company plans to enhance its market expansion strategies to improve revenue streams in the upcoming quarters[90]. - The company is committed to maintaining a strong capital structure while pursuing growth opportunities through potential mergers and acquisitions[104].

Financial Performance - Operating revenue increased by 4.42% to CNY 96,037,960.56 year-on-year[9] - Net profit attributable to shareholders was a loss of CNY 2,226,764.92, an improvement from a loss of CNY 4,782,493.70 in the same period last year[9] - Operating profit for Q1 2019 was CNY 797,720.17, a significant improvement from a loss of CNY 3,194,489.37 in Q1 2018[29] - Net profit for Q1 2019 was CNY 793,166.46, compared to a net loss of CNY 3,204,314.05 in Q1 2018[29] - The company reported a significant increase in income tax expenses by 91.36% to ¥3,019,931.38, attributed to higher income tax from its subsidiary[14] Cash Flow - Cash flow from operating activities turned positive with a net amount of CNY 9,371,856.43, compared to a negative cash flow of CNY 29,527,811.43 in the previous year[9] - Net cash flow from operating activities improved to ¥9,371,856.43, a significant recovery from -¥29,527,811.43 in the previous year[15] - The cash flow from operating activities for Q1 2019 was CNY 9,371,856.43, a recovery from a negative cash flow of CNY -29,527,811.43 in Q1 2018[34] - The total cash inflow from operating activities was CNY 106,762,635.27, compared to CNY 112,102,734.48 in Q1 2018[34] - The total cash outflow from operating activities was CNY 97,390,778.84, down from CNY 141,630,545.91 in Q1 2018[34] Assets and Liabilities - Total assets decreased by 4.02% to CNY 522,597,452.84 compared to the end of the previous year[9] - Total liabilities amounted to CNY 184,126,542.53, with current liabilities at CNY 176,506,542.53[41] - Current liabilities decreased to ¥157,324,093.00 from ¥176,506,542.53, indicating improved liquidity management[23] - Total assets as of March 31, 2019, were CNY 630,346,705.36, a marginal increase from CNY 628,448,077.12 at the end of 2018[26] - Total liabilities as of March 31, 2019, were CNY 275,143,897.10, compared to CNY 265,631,756.68 at the end of 2018[26] Shareholder Information - The total number of shareholders reached 42,036 at the end of the reporting period[12] - Shareholders' equity decreased to CNY 355,202,808.26 from CNY 362,816,320.44 at the end of 2018[27] Investment and Expenses - Research and development expenses for Q1 2019 were CNY 3,085,513.23, slightly decreased from CNY 3,391,676.33 in Q1 2018[31] - Financial expenses increased by 84.86% to ¥1,089,107.26 due to new bank credit business fees[14] - The company recorded an asset impairment loss of CNY -2,476,049.80 in Q1 2019, contrasting with a gain of CNY 1,382,994.97 in Q1 2018[31] Other Financial Metrics - The weighted average return on net assets improved to -0.62% from -1.38% year-on-year[9] - Cash and cash equivalents as of March 31, 2019, were CNY 38,533,983.53, down from CNY 63,424,724.71 at the end of 2018[25] - Inventory as of March 31, 2019, was CNY 65,258,555.44, slightly up from CNY 64,669,703.65 at the end of 2018[25] - The company’s total assets as of Q1 2019 amounted to CNY 544,506,667.29, unchanged from the previous reporting period, indicating stability in asset management[40]

Financial Performance - The company achieved a net profit attributable to shareholders of RMB 11,011,621.73 in 2018, a significant recovery from a loss of RMB 59,447,198.15 in 2017[4] - Operating revenue for 2018 was RMB 397,762,506.41, representing a year-on-year increase of 16.35% compared to RMB 341,860,367.45 in 2017[19] - The net cash flow from operating activities was RMB 30,066,009.39, recovering from a negative cash flow of RMB -43,866,852.22 in the previous year[19] - Basic earnings per share improved to RMB 0.02 in 2018, compared to a loss of RMB -0.12 per share in 2017[21] - The weighted average return on equity was 3.09% in 2018, recovering from -15.63% in 2017[21] - The company reported a net loss of RMB 322,866,317.27, improving from a loss of RMB 333,877,939.00 at the beginning of the year[143] - The company achieved operating revenue of ¥397,762,506.41, representing a growth of 16.35% compared to the previous reporting period[41] - Net profit attributable to the parent company was ¥11,011,621.73, marking a turnaround from loss to profit, primarily driven by increased sales of smart control products[41] Assets and Liabilities - The company's total assets increased by 4.45% to RMB 544,506,667.29 at the end of 2018, up from RMB 521,303,110.83 in 2017[20] - The net assets attributable to shareholders rose to RMB 361,566,157.25, reflecting a 3.14% increase from RMB 350,554,535.52 in 2017[20] - Total liabilities increased to ¥265,631,756.68 from ¥141,703,363.96, indicating a significant rise in financial obligations[150] - Total assets at the end of the period amounted to ¥151,754,989.51, with net assets of ¥101,517,658.86[60] - Short-term borrowings surged to RMB 45,000,000.00 from RMB 15,000,000.00, indicating a rise of 200%[143] Research and Development - The company has invested significantly in R&D, with R&D expenses decreasing by 26.41% to ¥39,385,530.45, indicating a focus on efficiency[43] - Research and development expenses were ¥39,385,530.45, down 26.4% from ¥53,520,028.13 in the previous year, indicating a potential shift in investment strategy[150] - The company has applied for 19 invention patents and received acceptance in 2018, further strengthening its intellectual property portfolio in identity verification technology[33] Market and Product Development - The smart control products segment is ranked first in the industry for sewing machine numerical control systems, with the company holding over 100 patents and participating in the formulation of more than 20 national and industry standards[32] - The commercial terminal products segment has developed advanced identity verification technologies, including multi-biometric recognition and computer vision applications, with significant breakthroughs in user verification applications[30] - The company has developed various smart payment terminal devices, including interactive terminals and comprehensive service terminals, enhancing its product offerings in the electric power sector[35] - The company has established a complete solution for electric power clients, including smart terminals and operational services, maintaining a strong market share in the electric payment sector[40] Risks and Challenges - The company has identified various risks including management, market, talent, technology, and policy risks, which are detailed in the report[6] - The company faces risks from a slowdown in the smart control product market and increased competition in the identity verification sector, prompting a shift towards innovative technology[73] - The company anticipates a decrease in investment in self-service terminal devices due to changes in the State Grid Corporation's procurement strategy, impacting traditional business performance[74] Corporate Governance - The company has appointed Zhongshun Zhonghuan Accounting Firm as the auditor for the fiscal year 2018, with a remuneration of RMB 450,000[83] - The company has maintained a good integrity status, with no significant debts or court judgments unfulfilled during the reporting period[84] - The company has not engaged in any cash asset management or entrusted loan activities during the reporting period[90] - The company strictly adheres to the requirements of the Company Law and the Securities Law, ensuring compliance in governance and information disclosure[119] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 40,070, down from 42,036 in the previous month[97] - The largest shareholder, Zhang Xueyang, holds 60,000,000 shares, representing 12.19% of the total shares[98] - The employee stock ownership plan holds 6,300,000 shares, which is 1.28% of the total shares[98] Cash Flow - Operating cash inflow from sales of goods and services increased to ¥317,585,259.49 from ¥264,005,074.32, representing a growth of approximately 20.3%[156] - Net cash flow from operating activities improved to ¥30,066,009.39 compared to a negative cash flow of ¥43,866,852.22 in the previous period[156] - The total cash and cash equivalents at the end of the period rose to ¥92,034,323.02 from ¥38,429,267.49, an increase of approximately 139.5%[157] Compliance and Legal Matters - There are no significant litigation or arbitration matters reported for the year[83] - The company has not experienced any changes in its ordinary share capital structure during the reporting period[95] - The company has not disclosed any significant changes in its shareholder structure or asset and liability structure during the reporting period[96]

[Important Notice](index=3&type=section&id=I.%20Important%20Notice) [Important Notice](index=3&type=section&id=I.%20Important%20Notice) The Board, Supervisory Board, and senior management guarantee the report's truthfulness and completeness; this quarterly report is unaudited - All directors, supervisors, and senior executives guarantee the truthfulness, accuracy, and completeness of the report[5](index=5&type=chunk) - Company head Zhang Xueyang, chief accountant Li Xuejun, and head of accounting Wang Ping guarantee the truthfulness, accuracy, and completeness of the financial statements[5](index=5&type=chunk) - This company's third-quarter report is unaudited[5](index=5&type=chunk) [Company Overview](index=3&type=section&id=II.%20Company%20Overview) [Major Financial Data](index=3&type=section&id=2.1%20Major%20Financial%20Data) As of Q3 2018, total assets increased, revenue grew significantly, and the company achieved profitability, with improved operating cash flow Major Financial Data for Q1-Q3 2018 | Metric | Current Period End / Year-to-Date | Prior Year End / Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets (CNY) | 549,604,276.50 | 521,303,110.83 | 5.43% | | Net Assets Attributable to Shareholders (CNY) | 354,703,913.83 | 350,554,535.52 | 1.18% | | Operating Revenue (CNY) | 295,148,118.40 | 247,826,090.45 | 19.09% | | Net Profit Attributable to Shareholders (CNY) | 4,149,378.31 | -11,182,540.98 | N/A | | Net Cash Flow from Operating Activities (CNY) | -15,368,284.83 | -56,227,766.17 | N/A | - Year-to-date (January-September), the company's non-recurring gains and losses totaled **CNY 2.12 million**, primarily from government subsidies[6](index=6&type=chunk) [Shareholder Information](index=4&type=section&id=2.2%20Shareholder%20Information) As of report end, the company had **28,547** shareholders, with its largest shareholder holding **12.19%** and certain top shareholders having related party relationships - As of the report period end, the company had **28,547** common shareholders[7](index=7&type=chunk) - The largest shareholder, Zhang Xueyang, holds **60,000,000** shares, accounting for **12.19%** of the total share capital[7](index=7&type=chunk) - Among the top ten shareholders, Zhang Xueyang and Luo Jianfeng have an in-law relationship[8](index=8&type=chunk) [Preferred Shareholder Information](index=5&type=section&id=2.3%20Preferred%20Shareholder%20Information) The company had no preferred shareholders during the reporting period - As of the report period end, the company had no preferred shareholders[8](index=8&type=chunk) [Significant Events](index=5&type=section&id=III.%20Significant%20Events) [Analysis of Major Changes in Financial Statement Items and Indicators](index=5&type=section&id=3.1%20Analysis%20of%20Major%20Financial%20Changes) Significant financial changes include increased assets and liabilities from new borrowings, shifts in expenses and income due to capitalization and reclassification, and improved operating and financing cash flows Major Balance Sheet Changes | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Cash and Bank Balances | 59.92 | New bank borrowings and increased customer collections | | Prepayments | 221.52 | Increased raw material purchases for ID card readers | | Other Current Assets | -88.26 | All bank wealth management products redeemed | | Short-term Borrowings | 240.00 | New bank borrowings | Major Income Statement Changes | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | R&D Expenses | -41.73 | Partial R&D projects entered development phase, expenditures capitalized | | Financial Expenses | 20049.87 | Increased loan interest expenses | | Investment Income | -119.14 | Increased losses from associates | | Non-operating Income | -98.26 | Government grants reclassified to other income | | Income Tax Expense | 4581.45 | Impact of deferred income tax | Major Cash Flow Statement Changes | Item | Change | Primary Reason | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | Improved by 72.67% | Increased sales and customer collections | | Net Cash Flow from Investing Activities | Decreased by 154.94% | Net decrease in purchase and redemption of wealth management products | | Net Cash Flow from Financing Activities | Increased by 198.60% | New bank borrowings | [Progress of Significant Events](index=7&type=section&id=3.2%20Progress%20of%20Significant%20Events) The bankruptcy liquidation of Shanghai Jinglun Communication Technology Co., Ltd., a subsidiary resolved for dissolution in 2008, is ongoing, awaiting final court ruling - The bankruptcy liquidation process for Shanghai Jinglun Communication Technology Co., Ltd., a subsidiary resolved for dissolution by the company in 2008, is ongoing, awaiting final court ruling[11](index=11&type=chunk) [Appendix](index=8&type=section&id=IV.%20Appendix) [Financial Statements](index=8&type=section&id=4.1%20Financial%20Statements) This appendix presents the company's unaudited Q3 2018 financial statements, covering consolidated and parent company balance sheets, income statements, and cash flow statements [Consolidated Balance Sheet](index=8&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2018, consolidated total assets were **CNY 550 million**, liabilities **CNY 196 million**, and parent equity **CNY 355 million** Consolidated Balance Sheet Key Data (2018-09-30) | Item | Period-End Balance (CNY) | | :--- | :--- | | Total Assets | 549,604,276.50 | | Total Liabilities | 196,086,395.16 | | Total Equity Attributable to Parent Company Owners | 354,703,913.83 | [Parent Company Balance Sheet](index=11&type=section&id=Parent%20Company%20Balance%20Sheet) As of September 30, 2018, parent company total assets were **CNY 613 million**, liabilities **CNY 252 million**, and total owner's equity **CNY 361 million** Parent Company Balance Sheet Key Data (2018-09-30) | Item | Period-End Balance (CNY) | | :--- | :--- | | Total Assets | 613,169,139.26 | | Total Liabilities | 252,126,865.44 | | Total Owner's Equity (or Shareholder's Equity) | 361,042,273.82 | [Consolidated Income Statement](index=13&type=section&id=Consolidated%20Income%20Statement) From January to September 2018, total operating revenue was **CNY 295.15 million**, with net profit attributable to parent company owners at **CNY 4.15 million** and basic EPS of **CNY 0.01** Consolidated Income Statement Key Data (Jan-Sep 2018) | Item | Amount (CNY) | | :--- | :--- | | Total Operating Revenue | 295,148,118.40 | | Operating Profit | 9,929,884.62 | | Net Profit Attributable to Parent Company Owners | 4,149,378.31 | | Basic Earnings Per Share (CNY/share) | 0.01 | [Parent Company Income Statement](index=16&type=section&id=Parent%20Company%20Income%20Statement) From January to September 2018, the parent company's operating revenue was **CNY 121 million**, with a net loss of **CNY 12.93 million** Parent Company Income Statement Key Data (Jan-Sep 2018) | Item | Amount (CNY) | | :--- | :--- | | Operating Revenue | 120,824,217.68 | | Operating Profit | -12,940,270.37 | | Net Profit | -12,932,814.25 | [Consolidated Cash Flow Statement](index=18&type=section&id=Consolidated%20Cash%20Flow%20Statement) From January to September 2018, net cash flow from operating activities was **-CNY 15.37 million**, investing activities **-CNY 4.68 million**, and financing activities **CNY 33.83 million**, with period-end cash equivalents at **CNY 52.21 million** Consolidated Cash Flow Statement Key Data (Jan-Sep 2018) | Item | Amount (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | -15,368,284.83 | | Net Cash Flow from Investing Activities | -4,681,982.74 | | Net Cash Flow from Financing Activities | 33,832,281.94 | | Cash and Cash Equivalents at Period End | 52,211,759.94 | [Parent Company Cash Flow Statement](index=20&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) From January to September 2018, parent company net cash flow from operating activities was **-CNY 27.39 million**, investing activities **-CNY 3.84 million**, and financing activities **CNY 38.52 million**, with period-end cash equivalents at **CNY 27.66 million** Parent Company Cash Flow Statement Key Data (Jan-Sep 2018) | Item | Amount (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | -27,386,623.67 | | Net Cash Flow from Investing Activities | -3,843,676.39 | | Net Cash Flow from Financing Activities | 38,523,923.83 | | Cash and Cash Equivalents at Period End | 27,664,767.20 | [Audit Report](index=21&type=section&id=4.2%20Audit%20Report) This quarterly report is unaudited - This financial report is unaudited[34](index=34&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2018 was ¥215,527,047.23, representing a 29.34% increase compared to ¥166,631,485.24 in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2018 was ¥5,344,527.63, a significant recovery from a loss of ¥8,848,659.06 in the previous year[18]. - The basic earnings per share for the first half of 2018 was ¥0.011, recovering from a loss of ¥0.018 in the same period last year[19]. - The weighted average return on equity increased to 1.51%, up 3.69 percentage points from -2.18% in the previous year[19]. - The company achieved operating revenue of 215,527,047.23 RMB, an increase of 29.34% compared to the same period last year, primarily due to increased sales of intelligent control products[27]. - Net profit attributable to the parent company was 5,344,527.63 RMB, a turnaround from a loss in the previous year, driven by significant sales growth in intelligent control products and effective cost control[27]. - Operating costs rose to 158,435,915.64 RMB, reflecting a 26.09% increase, corresponding to the rise in sales revenue[29]. - The company reported a net loss of RMB 328.53 million, slightly improved from a loss of RMB 333.88 million in the previous period[73]. - The total comprehensive income for the current period was ¥5,344,527.63, contrasting with a comprehensive loss of ¥8,848,659.06 in the previous period[81]. Cash Flow and Financial Position - The net cash flow from operating activities was -¥40,198,036.29, worsening from -¥26,774,375.09 in the same period last year[18]. - The company reported a net cash flow from operating activities of -40,198,036.29 RMB, a decline of 50.14% year-on-year, mainly due to increased payments to suppliers[35]. - Cash flow from operating activities showed a net outflow of ¥40,198,036.29, worsening from a net outflow of ¥26,774,375.09 in the previous period[88]. - The company reported a net increase in cash and cash equivalents of -11,445,263.55 RMB, compared to -44,039,266.08 RMB in the previous period, showing an improvement in cash management[92]. - The total cash inflow from operating activities was 88,901,838.99 RMB, down from 93,689,606.80 RMB in the previous period, reflecting a decline in sales revenue[92]. - The total cash and cash equivalents at the end of the period amounted to CNY 38,743,725.36, a decrease from CNY 44,499,539.67 at the beginning of the period, representing a decline of approximately 13.0%[197]. Assets and Liabilities - The total assets at the end of the reporting period were ¥552,825,140.17, an increase of 6.05% from ¥521,303,110.83 at the end of the previous year[18]. - The total liabilities increased to RMB 198.11 million from RMB 171.93 million, marking a growth of about 15.3%[72]. - Accounts receivable increased by 66.51% to 66,405,682.00, representing 12.01% of total assets, due to increased customer payments via notes[37]. - Short-term borrowings rose by 300.00% to 60,000,000.00, making up 10.85% of total assets, mainly due to new bank loans[37]. - The total equity attributable to shareholders increased to RMB 355.90 million from RMB 350.55 million, a rise of approximately 1.0%[73]. Market and Product Development - The company focuses on the development and sales of intelligent control products, commercial terminal products, and intelligent interconnection products[21]. - The company continues to lead in the domestic identity verification terminal market, driven by the ongoing implementation of real-name systems[22]. - The company plans to leverage its competitive advantage in high-performance general servo products, aiming to establish a new volume product following the success of its flat sewing machine[27]. - The company is actively expanding its market presence in Vietnam and Taiwan by establishing and improving demonstration lines for intelligent factory system integration[27]. - The company aims to transition from traditional identity verification product supplier to a developer of integrated biometric identification systems[42]. Risks and Challenges - The company faces risks from rising raw material costs and component shortages, which could impact gross margins and timely deliveries[41]. - The company anticipates challenges from rising material costs and intensified market competition, necessitating ongoing technological investment and cost management[42]. - The OLED project faces significant limitations due to unstable supply and pricing of raw materials and equipment, which are critical for the company's development and the industry's growth[43]. Corporate Governance and Shareholder Information - The total number of common stock shareholders at the end of the reporting period is 24,461[64]. - The largest shareholder, Zhang Xueyang, holds 60,000,000 shares, representing 12.19% of the total shares[65]. - The company has not experienced any changes in its share capital structure during the reporting period[62]. - There are no significant changes in the board of directors or senior management during the reporting period[67]. - The company has not issued any convertible bonds or preferred shares during the reporting period[60][69]. Accounting Policies and Financial Reporting - The financial statements are prepared based on the going concern principle, ensuring the company's ability to continue operations in the foreseeable future[108]. - The company's accounting policies comply with the requirements of enterprise accounting standards, ensuring transparency and accuracy in financial reporting[109]. - The company recognizes impairment losses for financial assets when there is objective evidence of impairment, including significant financial difficulties of the issuer or debtor, or a significant decline in the fair value of equity investments[129]. - The company recognizes investment income based on its share of the investee's net profit and other comprehensive income, adjusting the carrying amount of the investment accordingly[151]. Government Grants and Subsidies - The company has received government subsidies totaling 315,836.84 RMB, which are closely related to its normal business operations[23]. - Asset-related government grants are recognized as deferred income and allocated to profit or loss over the asset's useful life[183]. - Income-related government grants are recognized as deferred income when intended to compensate future expenses or losses, and directly in profit or loss when compensating for already incurred expenses[185].

Financial Performance - Operating revenue for the first quarter was ¥91,972,185.07, representing a growth of 16.66% year-on-year[6] - Net profit attributable to shareholders of the listed company was a loss of ¥4,782,493.70, an improvement from a loss of ¥6,291,680.53 in the same period last year[6] - Basic earnings per share for the quarter was -¥0.010, compared to -¥0.013 in the previous year[6] - Total operating revenue for Q1 2018 was CNY 91,972,185.07, an increase of 16.3% compared to CNY 78,837,399.27 in the same period last year[24] - The net loss for Q1 2018 was CNY 4,782,493.70, an improvement from a net loss of CNY 6,291,680.53 in Q1 2017[24] - Operating revenue for Q1 2018 was CNY 23,377,965.20, a decrease of 23.4% from CNY 30,451,473.49 in the same period last year[28] - Net profit for Q1 2018 was a loss of CNY 7,664,845.51, compared to a loss of CNY 4,604,608.51 in Q1 2017, representing a 66.5% increase in losses[28] Assets and Liabilities - Total assets at the end of the reporting period reached ¥560,151,672.48, an increase of 7.45% compared to the end of the previous year[6] - The total assets increased to ¥560,151,672.48, up from ¥521,303,110.83 at the beginning of the year[19] - The total liabilities rose to ¥215,565,663.15, compared to ¥171,934,607.80 at the beginning of the year[19] - The company's total assets as of March 31, 2018, were CNY 556,090,079.50, compared to CNY 515,678,452.03 at the beginning of the year, reflecting a growth of 7.8%[22] - The total liabilities as of March 31, 2018, were CNY 189,779,836.94, up from CNY 141,703,363.96 at the start of the year, indicating a growth of 33.9%[22] Cash Flow - The company reported a net cash flow from operating activities of -¥29,527,811.43, which is not comparable to the previous year due to different reporting periods[6] - Operating cash flow showed a negative net amount of ¥-29,527,811.43, a decline of 127.78% compared to the previous year, attributed to increased procurement payments[13] - Cash flow from operating activities for Q1 2018 showed a net outflow of CNY 29,527,811.43, worsening from a net outflow of CNY 12,963,458.05 in the previous year[29] - Cash inflow from sales of goods and services was CNY 102,887,455.57, up 10.0% from CNY 93,549,710.19 in Q1 2017[29] - Total cash outflow from operating activities was CNY 141,630,545.91, an increase of 19.7% compared to CNY 118,239,427.16 in the same period last year[29] - Investment activities resulted in a net cash outflow of CNY 8,212,129.13, an improvement from a net outflow of CNY 30,501,462.82 in Q1 2017[30] - Financing activities generated a net cash inflow of CNY 39,387,217.58, compared to a net outflow of CNY 20,705,524.19 in the previous year[30] Shareholder Information - The total number of shareholders at the end of the reporting period was 25,451[9] - The largest shareholder, Zhang Xueyang, holds 60,000,000 shares, accounting for 12.19% of the total shares[9] Other Information - The company has not disclosed any new product or technology developments in this report[6] - There are no significant mergers or acquisitions reported during this quarter[6] - Future outlook and performance guidance were not explicitly detailed in the report[6] - The company did not report any new product launches or technological advancements during this quarter[28] - The company did not apply for an audit report for this period[33]

Financial Performance - In 2017, the company achieved a revenue of ¥341,860,367.45, representing a 1.80% increase compared to ¥335,811,133.36 in 2016[20] - The net profit attributable to shareholders was a loss of ¥59,447,198.15, a significant decline of 626.34% from a profit of ¥11,294,422.03 in 2016[20] - The cash flow from operating activities was negative at ¥43,866,852.22, a decrease of 223.90% compared to a positive cash flow of ¥35,404,463.70 in 2016[20] - The basic earnings per share were reported at -¥0.12, a decrease of 700% from ¥0.02 in 2016[22] - The weighted average return on equity was -15.63%, down from 2.79% in the previous year, a decline of 18.42 percentage points[22] - The company proposed no profit distribution for 2017 due to the negative net profit situation[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥65,339,391.13, compared to -¥2,132,312.25 in 2016[20] - The company reported a total equity attributable to shareholders of ¥350,554,535.52, a decrease of 14.50% from ¥410,001,733.67 in 2016[21] - The company reported a net loss of approximately ¥59.45 million in 2017, compared to a profit of ¥11.29 million in 2016, indicating a significant decline in performance[83] Cash Flow and Investment - The cash flow from operating activities showed a significant negative figure of -¥12.96 million in Q1, -¥13.81 million in Q2, and -¥29.45 million in Q3, with a positive cash flow of ¥12.36 million in Q4[24] - The net cash flow from operating activities turned negative at -¥43,866,852.22, a decline of 223.90% compared to a positive cash flow of ¥35,404,463.70 last year[45] - The net cash flow from investment activities improved by 127.99% to ¥2,765,206.55, compared to a negative cash flow of -¥9,879,465.71 last year[45] - The net cash flow from financing activities was -¥28,458,961.03, a decrease of 340.42%, primarily due to increased repayment of short-term bank loans[57] - The company reported an investment income of ¥2,090,254.59, a substantial increase of 243.41% from a loss of -¥1,457,506.26 in the previous year[45] Research and Development - The company has accumulated nearly 100 patents and has participated in the formulation of over 20 national and industry standards, showcasing its strong R&D capabilities[33] - Research and development expenses rose significantly by 58.62% to ¥52,632,484.46, up from ¥33,182,473.86 in the previous year[45] - The company has developed a light-enhancing film for OLED panels that can improve light output efficiency by 50% or more, surpassing industry standards, and has applied for ten invention patents related to this technology[37][42] - The company plans to continue investing in artificial intelligence applications, particularly in computer vision and biometric recognition[66] Market Position and Strategy - The company focuses on the development and sales of intelligent control products, commercial terminal products, and smart interconnected products, with a strong emphasis on automation solutions for the sewing industry[30] - The company has achieved significant market presence in the identity verification terminal industry, maintaining a leading position in production and sales[31] - The company is actively responding to the "Made in China 2025" initiative, focusing on the integration of information technology with traditional industries[32] - The company aims for over 30% growth in 2018, focusing on high-end servo control products and expanding into the high-end market, particularly in Taiwan and overseas[74] Risks and Challenges - The company has outlined various risks including management, market, talent, technology, and policy risks in its report[7] - The company anticipates risks from rising raw material prices and component shortages, which could impact gross margins and delivery timelines[76] - The company is facing intense competition in the state grid procurement projects, with project sizes heavily influenced by national policies, highlighting the need for new business directions[78] - The OLED project is constrained by unstable supply and pricing of raw materials and equipment, which are primarily imported, affecting technological progress[78] Corporate Governance and Compliance - The company has implemented an employee stock ownership plan, which was approved in early 2015, and the stock transfer was completed by April 2015[94] - The company maintains a strict governance structure, ensuring compliance with laws and regulations, and has not experienced any significant discrepancies in governance practices[130] - The audit report confirms that the financial statements fairly reflect the company's financial position and operating results for the year ended December 31, 2017[142] - The company has not faced any insider trading issues or regulatory penalties related to insider information during the reporting period[133] Shareholder Information - The total number of common stock shareholders at the end of the reporting period was 23,144, down from 25,451 at the end of the previous month, indicating a decrease of approximately 9.06%[105] - Zhang Xueyang holds 60,000,000 shares, representing 12.19% of the total shares, with no changes during the reporting period[107] - The top ten shareholders collectively hold a significant portion of the company's equity, with the largest shareholder holding over 12%[107] Employee and Human Resources - The total number of employees in the parent company and major subsidiaries is 608, with 71 in the parent company and 537 in subsidiaries[125] - The company emphasizes a salary payment philosophy based on job value and performance contribution, aiming for alignment between responsibility and benefits[126] - The company has established a comprehensive training management system to enhance human resource competitiveness[127]

Financial Performance - Operating revenue for the first nine months was CNY 247,826,090.45, representing a decrease of 7.35% year-on-year[6] - Net profit attributable to shareholders of the listed company was a loss of CNY 11,182,540.98, a decline of 501.33% compared to the same period last year[6] - The net loss for the first nine months was CNY 15,685,556.27, compared to a loss of CNY 9,280,455.89 in the previous year, indicating a worsening financial performance[24] - The company reported a gross profit margin of approximately -4.6% for the first nine months, compared to -3.3% in the previous year[24] - The company reported a significant increase in management expenses, which rose to ¥11,246,452.14 in Q3 2017 from ¥8,668,385.62 in Q3 2016, an increase of 29.9%[28] Assets and Liabilities - Total assets at the end of the reporting period were CNY 547,457,587.96, a decrease of 5.31% compared to the end of the previous year[6] - Total liabilities decreased to CNY 149,824,427.76 from CNY 169,331,484.21, a reduction of 11.5%[20] - Total equity attributable to shareholders decreased to CNY 398,819,192.69 from CNY 410,001,733.67, a decline of 2.7%[20] - Cash and cash equivalents decreased by 73.21% to ¥32,349,431.76 from ¥120,734,427.63 due to repayment of bank loans and increased payments[11] - Cash and cash equivalents decreased to CNY 14,639,913.99 from CNY 61,710,619.29 at the beginning of the year, a decline of 76.3%[22] Cash Flow - The net cash flow from operating activities for the first nine months was a negative CNY 56,227,766.17, an improvement of 4.11% year-on-year[6] - Cash inflow from operating activities for the first nine months of 2017 was CNY 289,180,456.16, an increase of 14.23% compared to CNY 253,160,140.94 in the same period last year[32] - The net cash flow from investment activities was positive CNY 8,521,477.54, compared to CNY 8,976,129.70 in the same period last year[33] - Cash inflow from financing activities was CNY 9,000,000.00, down from CNY 42,000,000.00 in the previous year, representing a decrease of 78.57%[33] - Total cash outflow from operating activities was CNY 345,408,222.33, an increase of 10.77% compared to CNY 311,798,908.50 in the previous year[32] Shareholder Information - The total number of shareholders at the end of the reporting period was 26,988[10] - The largest shareholder, Zhang Xueyang, held 60,000,000 shares, accounting for 12.19% of the total shares[10] Operational Changes - The company plans to focus on improving operational efficiency and exploring new market opportunities to enhance future performance[24] - The company is awaiting final court decisions regarding the bankruptcy of a subsidiary, which may impact future operations[13] Other Financial Metrics - Basic and diluted earnings per share were both CNY -0.02, a decrease of 300.00% compared to the previous year[7] - The weighted average return on net assets decreased by 3.47 percentage points to -2.77%[7] - Non-recurring gains and losses for the reporting period included government subsidies of CNY 631,300.00[8] - Financial expenses decreased by 98.81% to ¥9,828.73 from ¥826,734.59, due to reduced interest expenses compared to the same period last year[12] - Investment income improved by 62.19% to -¥1,318,503.25 from -¥3,487,450.74, as losses from joint ventures decreased[12]

Financial Performance - The company's operating revenue for the first half of 2017 was ¥166,631,485.24, a decrease of 15.51% compared to ¥197,229,554.94 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was -¥8,848,659.06, a decline of 561.53% from ¥1,917,260.70 in the previous year[21]. - The total operating revenue for the first half of 2017 was ¥166,631,485.24, a decrease of 15.5% compared to ¥197,229,554.94 in the same period last year[74]. - The net profit for the first half of 2017 was a loss of ¥8,848,659.06, compared to a profit of ¥1,917,260.70 in the previous year, representing a significant decline[75]. - The total profit for the first half of 2017 was a loss of ¥8,718,538.67, compared to a profit of ¥3,059,286.37 in the same period last year[74]. Cash Flow - The net cash flow from operating activities was -¥26,774,375.09, compared to -¥34,798,852.96 in the same period last year[21]. - Cash flow from operating activities showed a net outflow of ¥26,774,375.09, an improvement from a net outflow of ¥34,798,852.96 in the previous year[80]. - Total cash inflow from operating activities was 93,689,606.80 RMB, while cash outflow was 96,873,996.72 RMB, resulting in a cash flow deficit from operations[84]. - The company experienced a net decrease in cash and cash equivalents of -44,039,266.08 RMB during the first half of 2017, compared to -43,567,091.59 RMB in the same period last year[84]. Assets and Liabilities - The total assets at the end of the reporting period were ¥550,477,135.73, down 4.79% from ¥578,147,185.39 at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company decreased by 2.16% to ¥401,153,074.61 from ¥410,001,733.67 at the end of the previous year[21]. - Total liabilities decreased from ¥169,331,484.21 to ¥150,510,093.61, a reduction of about 11.1%[67]. - Owner's equity decreased from ¥408,815,701.18 to ¥399,967,042.12, a decline of approximately 2.1%[68]. Inventory and Receivables - Inventory rose from 122,641,590.77 RMB to 144,773,642.70 RMB, indicating a growth in stock levels[66]. - Accounts receivable increased from 72,475,293.29 RMB to 80,299,779.09 RMB during the reporting period[66]. - Other receivables increased by 46.78% to 1,385,350.68, mainly due to new equipment purchase deposits[40]. - Prepayments rose by 39.72% to 47,661,564.70, attributed to increased procurement of raw materials for ID card readers[40]. Research and Development - Research and development expenses increased by 6.27% to ¥12,387,648.44, reflecting the company's commitment to innovation[33]. - The company has developed a core technology system in embedded operating systems, hardware, and software design, positioning itself as a leader in the domestic identity verification equipment industry[27]. Strategic Initiatives - The company is actively responding to the "Made in China 2025" initiative by focusing on smart interconnectivity and cloud services[28]. - The company has established over 30 technical service centers in China and set up overseas marketing service points in countries like Vietnam, India, and Turkey[26]. - The company has formed strategic partnerships with leading domestic sewing machinery enterprises, enhancing its market presence[26]. Risk Management - The company faced risks from rising raw material prices and potential customer defaults, prompting a strategy to strengthen supplier relationships and focus on high-margin products[45]. - The report includes a risk statement regarding forward-looking statements, emphasizing the potential risks involved[7]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 31,216[58]. - The largest shareholder, Zhang Xueyang, held 60,000,000 shares, representing 12.19% of the total shares[60]. Accounting Policies - The company adheres to the Chinese Accounting Standards, ensuring that its financial reports accurately reflect its financial position and performance[103]. - The financial statements are prepared based on the going concern principle, ensuring that the company will continue its operations in the foreseeable future[102]. Share-Based Payments - The company implemented an equity incentive plan by granting employees restricted stock, recognizing the increase in equity instruments on the issuance date[200]. - For cash-settled share-based payments, the fair value of the liability is measured based on the company's obligation, recognized as a cost or expense at the grant date[200].

精伦电子股份有限公司 2017 年第一季度报告 | 办公地址： | | 武汉市东湖开发区光谷大道 70 号 | 邮政编码： | 430223 | | --- | --- | --- | --- | --- | | 电 | 话： | 027-87921111-3221 | 传 真： | 027-87467166 | | 一、 | 重要提示 3 | | --- | --- | | 二、 | 公司基本情况 3 | | 三、 | 重要事项 5 | | 四、 | 附录 8 | 公司代码：600355 公司简称：精伦电子 | | 单位：元 币种：人民币 | | | --- | --- | --- | | 项目 | 本期金额 | 说明 | | 非流动资产处置损益 | 264.96 | | | 越权审批，或无正式批准文件，或偶发性的税收返还、减免 | | | | 计入当期损益的政府补助，但与公司正常经营业务密切相关，符合国家政策 | 214,205.58 | | | 规定、按照一定标准定额或定量持续享受的政府补助除外 | | | 3 / 19 单位：元 币种：人民币 本报告期末 上年度末 本报告期末比上 年度末增减(%) 总 ...