Financial Performance - The company's operating revenue for the first half of 2019 was CNY 2,065,023,059.66, representing a year-on-year increase of 34.91% compared to CNY 1,530,668,735.98 in the same period last year[14]. - The net profit attributable to shareholders of the listed company was CNY -208,954,757.15, with a net profit margin indicating a loss[14]. - The net cash flow from operating activities was CNY -559,816,090.91, reflecting a decrease in cash flow compared to the previous year[14]. - The total assets at the end of the reporting period were CNY 5,509,149,930.42, down 3.38% from the previous year[14]. - The net assets attributable to shareholders of the listed company decreased by 11.04% to CNY 1,962,035,582.39 compared to the previous year[14]. - The basic earnings per share for the first half of 2019 was CNY -0.42, indicating a loss per share[15]. - The weighted average return on net assets was -9.97%, showing an increase of 1.28 percentage points compared to the previous year[15]. - The total profit amounted to -242 million yuan, a reduction in loss of 54.18 million yuan year-on-year[23]. - The net profit attributable to the parent company was -209 million yuan, a reduction in loss of 15.36 million yuan year-on-year[23]. - The net loss for the first half of 2019 was CNY 258,465,533.90, an improvement from a loss of CNY 310,407,912.85 in the same period of 2018[91]. Revenue Breakdown - Revenue from proprietary software products reached 238 million yuan, up 33.14% year-on-year, with an average gross margin of 66.15%, an increase of 4.10 percentage points[23]. - Revenue from industry solutions was 1.22 billion yuan, a year-on-year increase of 45.39%, with an average gross margin of 11.11%, a decrease of 3.17 percentage points[23]. - Revenue from service-oriented business was 589 million yuan, up 18.65% year-on-year, with an average gross margin of 60.74%, a decrease of 4.27 percentage points[23]. - The company reported a significant increase in revenue for Zhongsoft System, with a year-on-year growth of 447.04% attributed to high-tech business and self-security project income[39]. - Zhongbiao Software's revenue increased by 340.87%, with operating profit rising by CNY 67.05 million and net profit increasing by CNY 68.18 million[39]. - Tianjin Qilin's revenue grew by 153.01%, with operating profit increasing by CNY 20.69 million and net profit rising by CNY 14.19 million, driven by rapid growth in domestic operating system business[39]. Cash Flow and Liquidity - The cash and cash equivalents at the end of the reporting period were approximately ¥998 million, a decrease of 35.08% from ¥1.54 billion at the end of the previous period[32]. - The total cash inflow from operating activities for the first half of 2019 was CNY 2,105,008,541.87, an increase of 33.8% compared to CNY 1,571,839,386.47 in the same period of 2018[95]. - The net cash outflow from operating activities was CNY -559,816,090.91, an improvement from CNY -638,908,309.42 in the first half of 2018[95]. - The total cash and cash equivalents at the end of the period stood at CNY 977,192,335.52, compared to CNY 910,620,511.92 at the end of the same period last year[96]. - The cash outflow from investment activities was CNY 22,864,142.98, a decrease from CNY 48,951,852.65 in the first half of 2018, indicating a reduction in investment spending[96]. Assets and Liabilities - Total assets decreased from ¥5,702,051,963.39 to ¥5,509,149,930.42, a decline of approximately 3.39%[84]. - Total liabilities increased from ¥3,104,300,749.82 to ¥3,185,098,642.91, an increase of about 2.61%[85]. - Shareholders' equity decreased from ¥2,597,751,213.57 to ¥2,324,051,287.51, a decline of approximately 10.51%[85]. - The company reported a decrease in undistributed profits from ¥703,004,533.14 to ¥459,443,695.17, a decline of about 34.6%[85]. - The total amount of guarantees provided by the company, excluding those to subsidiaries, was RMB 270 million, accounting for 11.62% of the company's net assets[59]. Research and Development - Research and development expenses rose by 21.10% to approximately ¥564 million from ¥466 million, reflecting the company's commitment to innovation[29]. - Research and development expenses for the first half of 2019 amounted to CNY 564,015,371.88, compared to CNY 465,740,078.20 in 2018, reflecting a rise of approximately 21%[91]. - The company is actively exploring new technologies and applications in the intellectual property sector, enhancing its service capabilities for key industries[26]. Corporate Governance and Compliance - The company has not disclosed any plans for profit distribution or capital reserve transfer to increase share capital during the reporting period[3]. - There were no non-operating fund occupations by controlling shareholders or related parties reported[4]. - The company has not faced any violations in decision-making procedures for providing guarantees[4]. - The company has ongoing litigation involving a contract dispute with the Wuhu City Yijiang District People's Government, which was resolved in July 2019 when the court allowed the withdrawal of the lawsuit[49]. - The company has committed to not engaging in competitive businesses during its control period over China Software, ensuring priority for China Software in any relevant business opportunities[46]. Accounting Policies and Changes - The company changed its accounting policy for investment properties from a cost model to a fair value model to better reflect the true value of its investment properties[61]. - The fair value of investment properties increased from RMB 34.68 million to RMB 42.03 million after the accounting policy change[62]. - Deferred tax liabilities increased from RMB 0 to RMB 690,900 following the adjustment of financial statements[63]. - The company aims to enhance financial information accuracy through the new accounting policy for investment properties[61]. - The financial statements are prepared based on the assumption of going concern, with no significant issues affecting the company's ability to continue operations for at least 12 months from the reporting date[114]. Market Position and Strategy - The software and information technology service industry is expected to maintain an average annual growth rate of over 13% during the 13th Five-Year Plan period[20]. - The company has established a complete independent security software industry chain, including operating systems, middleware, and security products[22]. - The company is supported by its controlling shareholder, China Electronics, in various aspects including policy and capital resources[22]. - The company is focusing on national layout optimization and talent introduction to address long-standing issues of market competition and industry fragmentation[42]. Shareholder Information - The company’s total number of ordinary shareholders as of the end of the reporting period was 77,878[72]. - The largest shareholder, China Electronics Corporation, holds 223,190,246 shares, representing 45.13% of total shares[73].

Financial Performance - Operating revenue for the first quarter was CNY 1,007,082,826.38, representing an increase of 78.18% year-on-year[4] - Net profit attributable to shareholders was CNY -103,474,066.85, showing a slight improvement from CNY -107,931,003.54 in the same period last year[4] - The weighted average return on equity increased by 0.43 percentage points to -4.83% compared to -5.26% in the previous year[4] - The basic earnings per share for the first quarter was CNY -0.21, slightly better than CNY -0.22 in the same period last year[4] - Total operating revenue for Q1 2019 reached ¥1,007,082,826.38, a significant increase of 77.9% compared to ¥565,220,865.05 in Q1 2018[28] - Net profit for Q1 2019 was -¥127,232,537.39, an improvement from -¥152,370,606.94 in Q1 2018[29] - The total comprehensive income for Q1 2019 was -¥127,296,651.39, compared to -¥152,346,964.30 in Q1 2018, showing a reduction in losses[29] Assets and Liabilities - Total assets at the end of the reporting period were CNY 5,619,934,624.32, a decrease of 1.24% compared to the end of the previous year[4] - The company reported a significant decrease in construction in progress, down 100% to CNY 0 due to completion of projects[10] - Long-term borrowings increased by 57.69% to CNY 410,000,000.00, attributed to new bank loans obtained during the period[10] - Total liabilities increased to ¥3,160,419,039.08 from ¥3,103,609,851.66, representing a growth of approximately 1.02% year-over-year[24] - The total equity attributable to shareholders decreased to ¥2,092,642,973.44 from ¥2,196,168,331.49, a decline of about 4.73%[24] - Total assets decreased to approximately ¥5.62 billion from ¥5.69 billion at the end of 2018, reflecting a decline of 1.2%[23] - Current liabilities totaled approximately ¥2.62 billion, down 3.1% from ¥2.71 billion at the end of 2018[23] Cash Flow - Cash flow from operating activities was CNY -455,467,104.86, an improvement from CNY -572,918,740.62 in the previous year[4] - The net cash flow from operating activities was -¥455,467,104.86, an improvement of ¥117,451,635.76 compared to -¥572,918,740.62 in the previous year[15] - Cash flow from financing activities generated a net inflow of CNY 101,530,011.61, a significant recovery from CNY -34,316,962.96 in Q1 2018[33] - The ending cash and cash equivalents balance was CNY 1,148,267,233.73, down from CNY 1,654,850,577.62 at the beginning of the period[33] Shareholder Information - The number of shareholders at the end of the reporting period was 66,729, with the largest shareholder holding 45.13% of the shares[7] - The company anticipates a potential net loss attributable to shareholders for the current reporting period due to significant investments in key business projects[20] Government Support and Subsidies - The company received government subsidies amounting to CNY 2,543,222.43, which are closely related to its normal business operations[5] - The company experienced a decrease in non-operating income, which fell by 65.41% year-over-year, primarily due to reduced government support funds recognized[13] Investments and Subsidiaries - The company plans to establish a wholly-owned subsidiary in Changsha, Hunan, with a registered capital of ¥50 million, focusing on military-civilian integration projects[17] - The company intends to increase the registered capital of its subsidiary Beijing Changrongfa Technology Development Co., Ltd. by ¥99 million, raising its total capital to ¥100 million[17] - Investment income decreased significantly to ¥10,794.95, a drop of 99.85% compared to the previous year due to the disposal of a subsidiary[11] Operational Costs - Operating costs increased to ¥724,888,477.19, reflecting a rise of ¥390,367,614.08 or 116.69% year-over-year[11] - Total operating costs for Q1 2019 were ¥1,157,081,790.05, up 56.7% from ¥738,327,657.92 in Q1 2018[28] Research and Development - Research and development expenses increased to ¥249,622,629.29 in Q1 2019, compared to ¥226,899,982.83 in Q1 2018, reflecting a growth of 10%[28] Financial Adjustments - The company has implemented new financial instrument standards effective January 1, 2019, impacting the classification of financial assets[42] - The company has made adjustments to financial reporting in accordance with new accounting standards, affecting the presentation of certain financial items[42]

Financial Performance - The company's operating revenue for 2018 was CNY 4,613,161,359.60, a decrease of 6.67% compared to CNY 4,942,995,517.06 in 2017[18]. - The net profit attributable to shareholders of the listed company was CNY 110,809,179.59, an increase of 47.95% from CNY 74,898,371.62 in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 43,998,271.18, a decrease of 4.87% compared to CNY 46,248,428.38 in 2017[18]. - The net cash flow from operating activities was CNY 132,149,878.79, an increase of 113.35% from CNY 61,939,613.74 in 2017[18]. - The total assets at the end of 2018 were CNY 5,690,422,088.29, an increase of 7.95% from CNY 5,271,271,196.23 at the end of 2017[18]. - The net assets attributable to shareholders of the listed company were CNY 2,196,168,331.49, an increase of 4.24% from CNY 2,106,814,169.03 in 2017[18]. - Basic earnings per share increased by 47.95% to CNY 0.22 in 2018 from CNY 0.15 in 2017[19]. - The weighted average return on equity rose by 1.56 percentage points to 5.16% in 2018 compared to 3.60% in 2017[19]. - The total profit reached 122 million RMB, an increase of 71.02% year-on-year[32]. - The company reported a significant change in profit due to the subsidiary Anren Co., which is no longer consolidated and is now accounted for using the equity method, resulting in substantial investment income[46]. Revenue Breakdown - Revenue from proprietary software products was 572 million RMB, down 39.52% year-on-year, primarily due to the exclusion of a subsidiary from consolidation[32]. - Industry solutions generated revenue of 2.584 billion RMB, a slight decline of 1.08% year-on-year[32]. - Service-oriented business revenue increased by 4.99% year-on-year, totaling 1.421 billion RMB[32]. - The company's revenue from software services was approximately CNY 4.58 billion, with a gross margin of 38.76%, reflecting a year-over-year decrease of 6.81% in revenue and 8.05% in cost[37]. Research and Development - Total R&D expenditure amounted to CNY 1.01 billion, representing 21.83% of total revenue, with 50.08% of the company's workforce engaged in R&D activities[42]. - The average gross margin for proprietary software products was 68.09%, up 0.22 percentage points year-on-year[32]. - The company is focusing on enhancing core competitiveness through technological innovation and collaboration[26]. - The company is committed to optimizing its business structure and enhancing operational quality and efficiency through various innovative strategies[60]. Market Position and Strategy - The company operates in a software and information technology services industry projected to grow at an average annual rate of over 13% during the 13th Five-Year Plan period[23]. - The company has established a comprehensive software industry chain, including operating systems, middleware, and security products, serving key sectors such as finance and energy[23]. - The company is expanding its market presence in key sectors such as electronic government and modern digital cities[28]. - The company anticipates a high growth rate in the industry for 2019, driven by national strategies in big data and artificial intelligence[58]. Financial Management and Governance - The company has improved its corporate governance by revising its articles of association and establishing a risk management committee, enhancing risk management capabilities[122]. - The company has disclosed its internal control self-assessment report, which was evaluated according to the Basic Norms for Internal Control[127]. - The company has undergone an internal control audit by Zhongtianyun Accounting Firm, which issued an audit report confirming the effectiveness of internal controls[128]. - The company has maintained a clear separation of powers among its governance structures, ensuring effective decision-making and operational coordination[122]. Shareholder Information - The proposed cash dividend is CNY 0.70 per 10 shares, totaling CNY 34,619,394.74, which accounts for 31.24% of the net profit attributable to shareholders[5]. - The total number of ordinary shareholders increased from 62,207 to 85,061 during the reporting period[94]. - The largest shareholder, China Electronics Corporation, holds 223,190,246 shares, accounting for 45.13% of the total shares[95]. - The company has no controlling shareholder or actual controller situation[101]. Legal and Compliance Issues - The company is involved in a significant lawsuit regarding a contract dispute with a subsidiary, with the amount in question totaling approximately 7.63 million RMB[76]. - The company has received a court execution notice demanding payment of 7,625,727 RMB, which includes project payments and legal fees[77]. - The company has submitted an application to suspend the execution of the payment as it disputes the existence of a contractual relationship with the claimant[77]. Employee and Management Information - The total number of employees in the parent company is 2,742, while the total number of employees in major subsidiaries is 3,927, resulting in a combined total of 6,669 employees[118]. - The number of R&D personnel is 3,340, accounting for a significant portion of the workforce[118]. - The total remuneration for all directors, supervisors, and senior management personnel is 9.1704 million yuan[116]. - The company has implemented a basic salary plus performance bonus system for senior management, which is evaluated based on company performance[116]. Accounting Policies and Financial Reporting - The financial statements comply with the requirements of the Accounting Standards for Business Enterprises, reflecting the company's financial position as of December 31, 2018[169]. - The company includes all subsidiaries in its consolidated financial statements, ensuring uniform accounting policies across entities[172]. - The company recognizes financial instruments as either financial assets or financial liabilities upon entering into a contract[178]. - The company confirms its financial statements are prepared based on actual transactions and events, ensuring accuracy and completeness[169].

Financial Performance - Operating revenue for the first nine months was CNY 2,541,016,117.89, a decrease of 14.35% year-on-year[9] - Net profit attributable to shareholders was a loss of CNY 239,642,576.20, compared to a loss of CNY 206,830,753.49 in the same period last year[9] - The weighted average return on net assets decreased by 1.50 percentage points to -12.12%[9] - Basic and diluted earnings per share were both CNY -0.48, compared to CNY -0.42 in the same period last year[9] - Total operating revenue for Q3 2018 was approximately CNY 1.01 billion, a slight decrease of 0.11% compared to CNY 1.02 billion in Q3 2017[32] - Net profit for Q3 2018 was a loss of approximately CNY 32.37 million, compared to a loss of CNY 105.30 million in Q3 2017, showing an improvement[33] - The company’s net profit attributable to shareholders decreased to CNY 348,051,317.26 from CNY 610,443,781.43, a drop of about 43%[27] - The total comprehensive income for Q3 2018 was ¥4,437,528, compared to a loss of ¥8,289,455 in the same period last year[38] Assets and Liabilities - Total assets decreased by 10.60% to CNY 4,712,687,713.46 compared to the end of the previous year[9] - The company's total assets amounted to CNY 4,712,687,713.46, a decrease from CNY 5,271,271,196.23 at the beginning of the year, representing a decline of approximately 10.6%[27] - The total liabilities of the company were CNY 2,544,375,610.87 as of September 30, 2018, down from CNY 2,747,741,662.40 at the beginning of the year, indicating a decrease of about 7.4%[27] - Total assets as of the end of Q3 2018 were approximately CNY 2.90 billion, down from CNY 3.13 billion at the end of Q3 2017[30] - Total liabilities as of the end of Q3 2018 were approximately CNY 1.45 billion, a decrease from CNY 1.52 billion at the end of Q3 2017[30] - The company's total equity decreased to approximately CNY 1.45 billion in Q3 2018 from CNY 1.61 billion in Q3 2017[30] Cash Flow - The company reported a net cash flow from operating activities of CNY -537,087,920.38 for the first nine months[9] - Cash flow from operating activities for the first nine months of 2018 was ¥2,606,473,222, down from ¥3,243,812,742 in the same period last year[40] - The net cash flow from operating activities was -537,087,920.38 CNY for Q3 2018, compared to -706,656,639.08 CNY in the previous year, indicating an improvement of approximately 24%[41] - Total cash inflow from operating activities was 2,784,422,173.58 CNY, while cash outflow was 3,321,510,093.96 CNY, resulting in a net cash flow deficit[41] - The company reported a total cash inflow from financing activities of 181,197,373.50 CNY, significantly lower than 837,056,636.37 CNY in the same period last year, marking a decline of approximately 78%[42] - The cash flow from financing activities showed a net outflow of -43,184,450.26 CNY, compared to -13,775,573.86 CNY in the previous year, indicating a worsening of approximately 213%[42] Shareholder Information - The total number of shareholders was 87,694 at the end of the reporting period[12] - The largest shareholder, China Electronics Corporation, holds 45.13% of the shares[12] Government Support and Investments - The company received government subsidies amounting to CNY 7,533,222.88 during the reporting period[11] - The company established a wholly-owned subsidiary, Hangzhou Wentu Siryun Technology Co., Ltd., with an investment of ¥10 million in August 2018[17] - The company sold 39% equity in Beijing Fujitsu System Engineering Co., Ltd. for ¥3.29 million in July 2018[17] - The company plans to acquire 20% equity in Beijing Changrongfa Technology Development Co., Ltd. for ¥1, currently processing related business procedures[18] Changes in Assets - Cash and cash equivalents decreased by 38.97% to ¥1,024,135,770.51 from the beginning of the year, primarily due to increased procurement payments[15] - Prepayments increased by 35.90% to ¥268,164,136.69, attributed to higher project payments made during the period[15] - Other current assets surged by 827.11% to ¥9,639,637.49, mainly due to an increase in input tax credits[15] - Investment properties rose by 57.87% to ¥32,519,680.80, as a subsidiary converted self-use buildings to rental properties[15] - Construction in progress decreased by 57.20% to ¥3,268,114.16, due to the completion of projects by a subsidiary[15] - Unallocated profits fell by 42.98% to ¥348,051,317.26, primarily due to dividend distributions and operational losses during the period[16] Research and Development - Research and development expenses for Q3 2018 were approximately CNY 254.60 million, a decrease of 4.99% from CNY 265.61 million in Q3 2017[33] - Research and development expenses for Q3 2018 amounted to ¥113,166,098, up 24% from ¥91,282,678 in Q3 2017[36]

Financial Performance - The company's operating revenue for the first half of 2018 was approximately ¥1.53 billion, a decrease of 21.44% compared to ¥1.95 billion in the same period last year[19]. - The net profit attributable to shareholders was a loss of approximately ¥226.26 million, compared to a loss of ¥169.15 million in the previous year[19]. - The net cash flow from operating activities was a negative ¥638.91 million, slightly improved from a negative ¥687.34 million in the same period last year[19]. - The total assets decreased by 12.54% to approximately ¥4.61 billion from ¥5.27 billion at the end of the previous year[19]. - The net assets attributable to shareholders decreased by 11.81% to approximately ¥1.86 billion from ¥2.11 billion at the end of the previous year[19]. - The basic earnings per share for the first half of 2018 was -¥0.46, compared to -¥0.34 in the same period last year[20]. - The weighted average return on net assets was -11.37%, a decrease of 2.80 percentage points from -8.57% in the previous year[20]. - The total profit for the period was -298 million RMB, an increase in loss of 67 million RMB year-on-year[31]. - The net profit attributable to the parent company was -226 million RMB, an increase in loss of 57 million RMB year-on-year[31]. - The company reported a comprehensive loss of CNY 298,475,011.78 for the current period[111]. Revenue Breakdown - Revenue from proprietary software products was 179 million RMB, a year-on-year decrease of 62.09%[32]. - Revenue from industry solutions was 839 million RMB, a year-on-year decrease of 18.60%[32]. - Revenue from service-oriented business was 496 million RMB, a year-on-year increase of 14.59%[32]. - Total operating revenue for the first half of 2018 was CNY 1,530,668,735.98, a decrease of 21.4% compared to CNY 1,948,369,795.38 in the same period of 2017[98]. Cash Flow and Liquidity - Cash flow from operating activities was -¥638.91 million, slightly improved from -¥687.34 million in the previous year[39]. - The cash and cash equivalents decreased by 45.18% to approximately ¥919.97 million from ¥1.68 billion at the end of the previous period[42]. - The company reported a net cash flow from operating activities of negative CNY 214,792,574.13, compared to negative CNY 113,030,485.35 in the prior period[107]. - The ending balance of cash and cash equivalents was CNY 409,642,137.99, down from CNY 480,292,381.25[107]. Investments and Subsidiaries - The company has invested ¥24.5 million in external equity investments during the reporting period, an increase of ¥24.5 million compared to the same period last year[45]. - The company completed the liquidation of its wholly-owned subsidiary Ningbo Zhongruan Information Service Co., Ltd. on May 29, 2018, which did not impact the overall production and performance[52]. - The company’s subsidiary Tianjin Qilin reported a net profit of 1.5938 million RMB for the first half of 2018[51]. - The company’s subsidiary Guangzhou Zhongruan reported a net loss of 10.8591 million RMB for the first half of 2018[51]. Legal Matters - The company is involved in a major lawsuit with Wuhu Yijiang District People's Government regarding contract disputes, with updates available on the Shanghai Stock Exchange website[58]. - The company has faced a legal judgment requiring it to pay 7,625,727 RMB to Tibet Yuxuan Environmental Technology Co., Ltd. for project payments and related fees[61]. - The company has ongoing litigation matters that are being closely monitored and addressed[59]. Risks and Challenges - The company faces risks from emerging technologies and market competition, which may impact the traditional software and information service industry[54]. - The company forecasts a continued net loss for the cumulative net profit attributable to shareholders for the next reporting period due to significant investments in key business projects[53]. Accounting and Financial Reporting - The financial statements are prepared based on the going concern principle, indicating no significant issues affecting the company's ability to continue operations for at least 12 months[124]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the financial statements reflect a true and complete picture of its financial status[126]. - The company includes all subsidiaries in its consolidated financial statements, ensuring comprehensive financial reporting[132]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 43,198[78]. - The largest shareholder, China Electronics Corporation, holds 223,190,246 shares, accounting for 45.13% of the total shares[80]. - The company reported a profit distribution of CNY -49,165,303.09, which includes allocations to surplus reserves and distributions to owners[113].

Financial Performance - Net profit attributable to shareholders was CNY -107,931,003.54, a decrease from CNY -88,721,944.60 in the same period last year[5] - Operating revenue fell by 31.65% to CNY 565,220,865.05 from CNY 826,896,522.55 year-on-year[5] - The weighted average return on net assets decreased by 0.87 percentage points to -5.26%[5] - The company’s basic and diluted earnings per share were both CNY -0.22, compared to CNY -0.18 in the previous year[5] - The company expects a cumulative net profit attributable to shareholders to remain in a loss position due to significant investments in key business projects[23] - Net profit for Q1 2018 was a loss of ¥152,370,606.94, compared to a loss of ¥161,377,627.54 in Q1 2017, showing an improvement of 6.2%[34] - Basic and diluted earnings per share for Q1 2018 were both -¥0.22, compared to -¥0.18 in Q1 2017[35] - The total comprehensive loss for Q1 2018 was ¥152,346,964.30, compared to a loss of ¥161,353,874.83 in Q1 2017[35] Assets and Liabilities - Total assets decreased by 10.75% to CNY 4,704,466,054.05 compared to the end of the previous year[5] - The company's total liabilities decreased from CNY 2,747,741,662.40 to CNY 2,331,712,101.59, reflecting a reduction of about 15.14%[28] - The total equity of the company as of March 31, 2018, was CNY 2,372,753,952.46, down from CNY 2,523,529,533.83, indicating a decrease of approximately 5.95%[28] - The company's total assets were ¥2,991,679,960.45, down from ¥3,131,336,655.04 in the previous quarter[34] Cash Flow - Cash flow from operating activities was CNY -572,918,740.62, an improvement from CNY -899,027,837.01 in the previous year[5] - The net cash flow from operating activities was -CNY 572,918,740.62, an improvement from -CNY 899,027,837.01 in the same period last year[38] - The total cash inflow from operating activities was CNY 685,601,143.41, down 13.6% from CNY 793,220,866.54 in the previous year[37] - The total cash outflow from operating activities was CNY 1,258,519,884.03, down 25.7% from CNY 1,692,248,703.55 in the previous year[38] - The cash flow from investment activities showed a net outflow of -CNY 9,513,860.68, compared to -CNY 42,512,899.91 in the previous year, indicating a significant reduction in investment losses[38] - The company reported a net cash outflow of -CNY 34,316,962.96 from financing activities, a decrease from a net inflow of CNY 190,232,099.32 in the same period last year[38] Shareholder Information - The number of shareholders reached 48,123, with the largest shareholder holding 45.13% of the shares[9] Government Support - The company received government subsidies amounting to CNY 8,335,561.46, closely related to its normal business operations[5] Investment and Restructuring - Investment income increased by 129.90% to ¥7,023,303.14 compared to the previous period[12] - The company disposed of assets worth ¥677.59 million to establish a new subsidiary focused on mobile payment services[17] - The company is undergoing restructuring, including the acquisition of a subsidiary for ¥1 and increasing its registered capital from ¥300,000 to ¥5,000,000[17] - The company plans to transfer 92% of its stake in a subsidiary through public listing at a nominal price of ¥1[18] Tax and Expenses - The company reported a significant increase in income tax expenses by 232.59% to ¥2,783,076.03 due to higher tax provisions[12]

Financial Performance - The company's operating revenue for 2017 was CNY 4,942,995,517.06, representing a 9.12% increase from CNY 4,529,778,511.92 in 2016[19] - The net profit attributable to shareholders for 2017 was CNY 74,898,371.62, a decrease of 26.79% compared to CNY 102,306,766.53 in 2016[19] - The total profit for the year was 71.1985 million RMB, down 40.76% year-on-year[38] - The company achieved total revenue of 4.943 billion RMB, a year-on-year increase of 9.12%[44] - The company reported a net profit attributable to shareholders of 748.98 million RMB, a decrease of 26.79% year-on-year[44] - The company's operating profit was 30.24 million RMB, compared to a loss of 91.11 million RMB in the previous year[46] - The company reported a net profit margin of approximately 1.5% for the year, down from 2.0% in the previous year[195] Cash Flow and Assets - The net cash flow from operating activities was CNY 61,939,613.74, which is a 16.26% increase from CNY 53,278,235.74 in 2016[19] - The total assets at the end of 2017 were CNY 5,271,271,196.23, showing an 11.67% decrease from CNY 5,967,906,666.14 at the end of 2016[19] - The company's cash and cash equivalents at the end of the reporting period were ¥28,809,114.94, primarily restricted due to guarantees and government subsidies[61] - The total current assets decreased from CNY 4,770,685,237.67 to CNY 4,074,963,554.37, reflecting a decline of about 14.6%[187] - The cash and cash equivalents decreased from CNY 2,004,534,645.28 to CNY 1,678,041,052.74, a reduction of approximately 16.2%[187] Investments and R&D - Long-term equity investments increased by 215.6745 million RMB, a growth rate of 190.16% compared to the beginning of the year[30] - R&D expenditure increased by 10.52% year-on-year, totaling 1.074 billion RMB[46] - The company invested a total of ¥1.07 billion in R&D, accounting for 21.73% of total revenue, with a year-on-year increase of 10.52%[56] - The company has a total of 3,595 R&D personnel, indicating a strong focus on innovation and development[154] Dividends and Profit Distribution - The company plans to distribute a cash dividend of CNY 0.46 per 10 shares, totaling CNY 22,749,887.97, which accounts for 30.37% of the net profit attributable to shareholders[4] - The company has committed to a stable and continuous profit distribution policy, prioritizing cash dividends[90] - The company plans to distribute at least 10% of the available profit as cash dividends annually when profitable and with positive retained earnings[90] Shareholder Information - The largest shareholder, China Electronics Corporation, holds 223,190,246 shares, representing 45.13% of the total shares[131] - The total number of ordinary shareholders at the end of the reporting period was 43,198, down from 46,136 at the end of the previous month[131] - There were no changes in the shareholding of the top ten shareholders during the reporting period[132] Governance and Compliance - The company is committed to maintaining compliance with regulatory requirements and enhancing corporate governance practices[145] - The company's governance structure complies with the requirements of the Company Law and the regulations issued by the China Securities Regulatory Commission[159] - The audit report confirmed that the financial statements fairly reflect the company's financial position as of December 31, 2017[169] Legal Matters - The company is currently involved in a significant lawsuit regarding a contract dispute, with potential liabilities amounting to CNY 7,210.734 million[101] - The company received an execution notice from the court requiring payment of CNY 7,625,727, including project payments and related fees, due to a contract dispute with a third party[102] - The company is actively seeking legal remedies regarding the execution notice it received, indicating a proactive approach to protect its interests[102] Market and Industry Outlook - The software and information technology service industry is expected to grow at an average annual rate of over 13% during the "13th Five-Year Plan" period[28] - The company is focusing on new technologies and business models to enhance operational quality and efficiency[37] - The company has become a core service provider in the national information security field, with its products widely applied[84]

Financial Performance - Operating revenue increased by 21.64% to CNY 2,966,820,665.02 for the first nine months compared to the same period last year[9]. - Net profit attributable to shareholders was a loss of CNY 206,830,753.49, compared to a loss of CNY 140,951,233.44 in the same period last year[9]. - The company reported a total comprehensive loss of -336,861,782.39 RMB for the quarter, an increase of 140,092,208.43 RMB year-on-year[15]. - The company’s net profit for Q3 2017 was -336,435,954.41 RMB, a decrease of 138,496,255.18 RMB compared to the previous year[14]. - Total operating revenue for Q3 2017 reached ¥1,018,450,869.64, a 21.1% increase from ¥841,028,777.64 in Q3 2016[38]. - Net loss for Q3 2017 was ¥105,302,307.23, compared to a net loss of ¥112,805,059.72 in Q3 2016, showing a slight improvement[40]. - Operating profit for the first nine months of 2017 was -¥359,335,129.64, slightly worse than -¥344,771,013.22 in the same period of 2016[38]. - The company reported a total profit loss of ¥99,931,609.28 for Q3 2017, an improvement from a loss of ¥113,751,677.51 in Q3 2016[40]. Assets and Liabilities - Total assets decreased by 11.14% to CNY 5,303,051,010.13 compared to the end of the previous year[9]. - Net assets attributable to shareholders decreased by 11.55% to CNY 1,825,599,422.46 compared to the end of the previous year[9]. - Total liabilities decreased to CNY 2,786,340,515.54 from CNY 3,059,595,450.80[32]. - Current liabilities amounted to CNY 2,259,289,364.21, down from CNY 2,601,275,089.84[32]. - Long-term borrowings increased to CNY 350,000,000.00 from CNY 270,000,000.00[32]. - Non-current assets totaled CNY 1,226,502,663.50, an increase from CNY 1,197,221,428.47[31]. - The company's total current assets decreased to approximately CNY 4.08 billion, down 14.5% from the beginning of the year[30]. Cash Flow - Cash flow from operating activities showed an improvement, with a net outflow of CNY 706,656,639.08 compared to CNY 919,202,583.98 in the same period last year[9]. - Operating cash inflow for the first nine months of 2017 was CNY 3,525,093,268.68, an increase of 27% compared to CNY 2,778,919,440.80 in the same period last year[45]. - Total cash outflow from operating activities was CNY 4,231,749,907.76, an increase from CNY 3,698,122,024.78 year-over-year[45]. - Net cash flow from operating activities was -CNY 706,656,639.08, an improvement from -CNY 919,202,583.98 year-over-year[45]. - Cash inflow from financing activities was CNY 837,056,636.37, compared to CNY 706,397,848.00 in the same period last year, reflecting a 18.5% increase[46]. Shareholder Information - The number of shareholders at the end of the reporting period was 44,800[11]. - The largest shareholder, China Electronics Corporation, holds 45.13% of the shares[11]. - The company’s controlling shareholder, China Electronics, plans to transfer 223,190,246 shares, representing 45.13% of the total share capital, to its wholly-owned subsidiary[25]. Investments and Subsidiaries - The company plans to liquidate its wholly-owned subsidiary, Ningbo Zhongruan Information Service Co., Ltd., and is currently processing the relevant procedures[16]. - A restructuring plan for the subsidiary Beijing Changcheng Software Information Technology Co., Ltd. has been proposed, which includes a capital increase from 3 million RMB to 50 million RMB[16]. - The company participated in a capital increase for Wuhan Dameng Database Co., Ltd., raising its registered capital from 36.37 million RMB to 43 million RMB[17]. - The company’s subsidiary, Nanjing Zhongruan Software and Technology Service Co., Ltd., will increase its registered capital to CNY 10 million, with the company maintaining a 70% stake[18]. - The company’s subsidiary, Sichuan Zhongruan Technology Co., Ltd., will increase its registered capital to CNY 66.67 million, with the company's stake decreasing to 20.97%[19]. Other Financial Indicators - Significant changes in financial indicators included a 41.15% decrease in cash and cash equivalents[13]. - Development expenditures increased by 373.85% to CNY 59,142,632.67 compared to the beginning of the year[13]. - Financial expenses rose significantly by 152.50% year-on-year, totaling 17,092,799.09 RMB, mainly due to increased bank loan interest[15]. - The company's undistributed profits decreased by 41.49% year-on-year, amounting to 335,660,386.38 RMB, primarily due to dividend distributions and operating losses[14]. - The company experienced a significant decline in investment income, reporting -3,225,248.53 RMB, a decrease of 2,013,886.48 RMB compared to the previous year[15].

Financial Performance - The company's operating revenue for the first half of 2017 was CNY 1,948,369,795.38, representing a year-on-year increase of 21.93% compared to CNY 1,597,974,095.33 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was a loss of CNY 169,146,397.16, compared to a loss of CNY 54,099,525.60 in the previous year, indicating a significant decline in profitability[20]. - The company's total assets decreased by 3.98% to CNY 5,730,133,854.98 from CNY 5,967,906,666.14 at the end of the previous year[20]. - The basic earnings per share for the first half of 2017 was -CNY 0.34, compared to -CNY 0.11 in the same period last year[21]. - The total profit was -232 million RMB, with a year-on-year loss increase of 139 million RMB[33]. - The net profit attributable to the parent company was -169 million RMB, a decrease of 115 million RMB year-on-year[33]. - The total comprehensive income for the current period was a loss of RMB 231,531,440.87, compared to a loss of RMB 84,041,585.88 in the previous period[104]. - The company reported a total equity decrease of CNY 519,483,000 compared to the previous period, indicating financial challenges[123]. Revenue Breakdown - The revenue from the company's proprietary software products was CNY 471,754,185.82, an increase of 19.63% year-on-year, with an average gross margin of 61.23%[26]. - The revenue from industry solutions reached CNY 1,031,085,376.68, marking a substantial increase of 62.74% year-on-year, although the average gross margin decreased to 11.39%[26]. - The service business revenue fell by 22.05% to CNY 432,889,477.33, with an average gross margin of 64.79%[26]. - The tax service segment is expected to see revenue growth in the second half of the year due to the completion of service contracts[37]. Cash Flow and Liquidity - The company's net cash flow from operating activities was a negative CNY 687,342,703.08, indicating ongoing cash flow challenges[20]. - Cash and cash equivalents decreased significantly by 33.10% to approximately ¥1.34 billion, down from ¥2.00 billion[45]. - The company reported a net cash inflow from financing activities of approximately ¥91.18 million, a significant improvement compared to a net outflow of -¥206.92 million in the previous year[40]. - The ending cash and cash equivalents balance was CNY 1,311,976,195.07, compared to CNY 1,039,772,428.25 in the previous period[111]. Investments and Acquisitions - The company acquired 6.3 million shares (63% of total equity) of Aifushi (Suzhou) Special Equipment Co., Ltd. for 1 yuan, becoming its controlling shareholder[49]. - The company has a total of 154.65 million RMB in overseas assets, accounting for 2.70% of total assets[29]. - The company participated in a capital increase for Wuhan Dameng, raising its registered capital from 36.37 million yuan to 43 million yuan, maintaining a 33.42% stake post-increase[75]. Management and Organizational Changes - The company appointed new senior management, including Chen Zhihua as General Manager and several others as Senior Vice Presidents[91]. - The board of directors was restructured, with significant changes in leadership positions, including the election of Zhou Jinjun as Chairman[92]. Risks and Challenges - The decline in profit was attributed to delays in government projects and increased investment in key business areas[42]. - The company faces risks including the impact of new technologies on traditional software and insufficient high-end talent reserves[63]. - A lawsuit from the Wuhu Municipal Government claims CNY 40.466459 million in damages related to a service outsourcing project, with court proceedings scheduled for September 27, 2017[63]. Accounting and Financial Reporting - The financial statements are prepared in accordance with the enterprise accounting standards, ensuring compliance and accuracy in reporting[131]. - The company recognizes revenue from software sales when the risks and rewards of ownership have transferred to the buyer[186]. - The company applies a straight-line method for operating lease expenses over the lease term[194]. - The company recognizes impairment losses for available-for-sale financial assets when there is objective evidence of a decline in fair value, with losses transferred from equity to profit or loss[150].

Financial Performance - Total revenue for Q1 2017 was CNY 826,896,522.55, representing a 15.34% increase compared to CNY 716,905,006.09 in the same period last year[6] - Net profit attributable to shareholders was CNY -88,721,944.60, a decrease from CNY -43,914,000.76 year-on-year[6] - The net profit for the period was RMB -161,377,627.54, a decline of 124.67% compared to the previous year's net profit of RMB -71,855,292.87[12] - Net loss for Q1 2017 was CNY 161,377,627.54, compared to a net loss of CNY 71,855,292.87 in Q1 2016, representing a significant increase in losses[33] - Total comprehensive income for Q1 2017 was a loss of CNY 15.99 million, compared to a profit of CNY 15.99 million in the same period last year[37] Cash Flow - The net cash flow from operating activities was CNY -899,027,837.01, compared to CNY -545,204,862.45 in the previous year, indicating a worsening cash flow situation[6] - Cash flow from operating activities showed a net outflow of CNY 899.03 million, worsening from a net outflow of CNY 545.20 million in the same period last year[40] - Net cash flow from operating activities was -CNY 126,860,895.01, worsening from -CNY 97,092,661.01 year-over-year[42] - Cash inflow from investment activities totaled CNY 6,275,834.49, significantly up from CNY 2,310,696.00 in the same period last year[42] - The net increase in cash and cash equivalents was -CNY 125,974,682.24, compared to -CNY 178,654,723.03 in Q1 2016[43] Assets and Liabilities - Total assets decreased by 8.15% to CNY 5,481,714,961.20 from CNY 5,967,906,666.14 at the end of the previous year[6] - The company's cash and cash equivalents decreased by 37.56% from the beginning of the year, totaling RMB 1,251,604,082.49[11] - Total liabilities decreased to CNY 1,646,734,395.49 from CNY 1,738,578,623.74 at the start of the year, indicating a reduction in financial obligations[32] - The company's current liabilities totaled approximately 2.20 billion yuan, down from 2.60 billion yuan at the beginning of the year[27] - The company reported a significant increase in inventory, rising to approximately 1.03 billion yuan from 972.5 million yuan at the beginning of the year[26] Shareholder Information - The total number of shareholders was 44,733 at the end of the reporting period[10] - The largest shareholder, China Electronics Corporation, held 45.13% of the shares, totaling 223,190,246 shares[10] - The total equity attributable to shareholders of the parent company was CNY 1,975,312,300.38, down from CNY 2,064,015,242.81 at the beginning of the year[32] Operational Metrics - Operating costs increased by 34.34% year-on-year, amounting to RMB 562,580,913.92, leading to a decrease in gross margin compared to the previous year[12] - The weighted average return on net assets was -4.39%, down 2.14 percentage points from -2.25% in the previous year[6] - Basic and diluted earnings per share were both CNY -0.18, compared to CNY -0.09 in the same period last year[6] - The company reported an operating profit of CNY -182,517,022.53 for Q1 2017, worsening from CNY -134,527,905.39 in the previous year[33] Investments and Subsidiaries - The company is in the process of selling 90% of its stake in 天津中软软件系统有限公司, with a transaction price of RMB 165,940[16] - The company plans to reduce the registered capital of its subsidiary, 中软科技创业投资有限公司, from RMB 50 million to RMB 50,000, while maintaining the same shareholding ratios[15] - The company approved an increase in registered capital for 南京中软软件与技术服务有限公司 by RMB 9 million from retained earnings, raising the total to RMB 10 million[15] - The company is in the process of liquidating its subsidiaries Chengdu Xindian Technology Co., Ltd. and Chengdu Xindong Technology Co., Ltd.[5] - The company is also liquidating its subsidiary Zhongruan Gong'an[7] Legal Matters - The company received a lawsuit notification regarding a contract dispute, which is currently pending trial[20]