Financial Performance - In 2022, the company's operating revenue was approximately CNY 9.64 billion, a decrease of 6.87% compared to 2021[14]. - The net profit attributable to shareholders was CNY 45.33 million, down 40.02% from the previous year[14]. - The net cash flow from operating activities was negative CNY 479.43 million, a decline of 160.69% year-on-year[14]. - The basic earnings per share decreased by 49.83% to CNY 0.08 in 2022[15]. - The weighted average return on equity dropped to 1.84%, a decrease of 1.39 percentage points from 2021[15]. - The total assets at the end of 2022 were approximately CNY 10.28 billion, a decrease of 5.90% from the previous year[14]. - The company's total operating costs for 2022 were CNY 9,887,416,303.78, down from CNY 10,611,142,680.66 in 2021, reflecting a reduction of 6.81%[188]. - The net profit for 2022 was CNY 244,060,018.62, an increase of 20.43% compared to CNY 202,662,270.20 in 2021[189]. Shareholder Returns - The company plans to distribute a cash dividend of 0.21 yuan per 10 shares, totaling approximately 13,895,624.76 yuan, which represents 30.65% of the net profit attributable to shareholders for the year[2]. - The total cash dividends distributed in 2022 amounted to 25,384,389.10 yuan, representing 33.59% of the net profit attributable to shareholders[104]. - In 2021, the company distributed cash dividends of 0.5 yuan per 10 shares, totaling approximately 24.73 million yuan, and also increased capital stock by 3 shares for every 10 shares held[101]. Capital Structure - The company will increase its total share capital by 198,508,926 shares through capital reserve conversion, resulting in a new total of 860,205,343 shares[2]. - The company’s total share capital as of March 31, 2023, is 661,696,417 shares[2]. - Following a capital reserve conversion, the total share capital increased by 152,306,335 shares, resulting in a total of 659,994,117 shares[152]. - The company issued 13,125,000 restricted shares as part of its 2021 incentive plan, increasing the total share capital to 507,687,782 shares[150]. Research and Development - The total R&D investment amounted to ¥1,897,517,347.95, representing 19.68% of the total revenue, with capitalized R&D accounting for 4.74%[40]. - The company employed 6,025 R&D personnel, making up 53.36% of the total workforce[41]. - The company launched four new software products in 2022, including the Galaxy Kylin Desktop Operating System V10 SP1[21]. Market Position and Strategy - The Kylin Software subsidiary maintained the top market share in China's Linux market for 11 consecutive years[21]. - The company expanded its ecosystem with over 6600 partners and more than 1.8 million compatible products[21]. - The company aims to deepen its market expansion in the digital government, digital enterprise, and digital society sectors, leveraging its experience in government information systems[23]. - The company is focusing on the development of its data security products, including the "Water Dam" data leakage prevention system, which has been widely adopted and supports national encryption algorithms[22]. Governance and Compliance - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[2]. - The company has received a standard unqualified audit report from Zhongxinghua Accounting Firm[2]. - The governance structure of the company adheres to national laws and regulations, ensuring effective decision-making and operational coordination[68]. - The company has maintained a clean record regarding compliance and has not faced any penalties or corrective actions during the reporting period[133]. Employee Compensation and Incentives - The total pre-tax compensation for the chairman, Chen Zhihua, during the reporting period was 305.40 thousand yuan[73]. - The total pre-tax compensation for the general manager, Fu Xingbin, was 136.99 thousand yuan, with a stock incentive increase of 66,299 shares[73]. - The company has implemented a restricted stock incentive plan, granting 66,000 shares to former board member Liu Xin[74]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 13.8079 million yuan[81]. Financial Health and Assets - The company reported a decrease in cash and cash equivalents from CNY 3,276.64 million in 2021 to CNY 2,364.63 million in 2022, representing a decline of approximately 28%[181]. - The total current assets decreased from CNY 8,737.34 million in 2021 to CNY 7,397.52 million in 2022, a reduction of about 15%[181]. - The company’s total assets were CNY 5,336,660,329.29 in 2022, down from CNY 5,625,136,694.21 in 2021, a decrease of 5.14%[187]. - The company’s equity increased to ¥3,560,111,655.87 in 2022 from ¥3,312,422,711.80 in 2021, representing an increase of about 7.5%[183]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements in its annual report[2]. - The company has a comprehensive risk management framework in place, with dedicated personnel overseeing compliance and legal affairs[81]. - The company faces risks from emerging technologies and market competition, which may impact the software and information services industry[66].

Financial Performance - The company's operating revenue for Q1 2023 was CNY 1,218,348,749.10, representing a decrease of 20.07% compared to the same period last year[4]. - The net profit attributable to shareholders of the listed company was a loss of CNY 198,828,466.07, with a basic and diluted earnings per share of -0.31 yuan[4]. - Total revenue for Q1 2023 was CNY 1,218,348,749.10, a decrease of 20.0% compared to CNY 1,524,319,395.17 in Q1 2022[18]. - Operating profit for Q1 2023 was -201,962,374.62 RMB, compared to -123,749,970.88 RMB in Q1 2022, indicating a decline in profitability[20]. - Net profit for Q1 2023 was -201,692,562.56 RMB, worsening from -140,296,877.55 RMB in Q1 2022, reflecting a significant increase in losses[20]. - Total comprehensive income for Q1 2023 was -201,803,621.64 RMB, compared to -140,343,218.87 RMB in Q1 2022, reflecting a larger loss in comprehensive income[20]. - Basic earnings per share for Q1 2023 were -0.31 RMB, compared to -0.21 RMB in Q1 2022, indicating a decline in earnings per share[20]. Cash Flow and Liquidity - The net cash flow from operating activities was -CNY 1,174,642,125.49, indicating significant cash outflow during the quarter[4]. - Cash inflow from operating activities totaled 1,457,872,972.46 RMB in Q1 2023, compared to 1,367,116,728.83 RMB in Q1 2022, marking an increase of about 6.6%[22]. - Cash outflow from operating activities was 2,632,515,097.95 RMB in Q1 2023, down from 3,213,881,203.19 RMB in Q1 2022, indicating a reduction in cash outflow[22]. - The net cash flow from financing activities was $246,025,687.70, a decrease from $642,572,239.50 in the previous year[23]. - The total cash outflow from financing activities amounted to $104,671,514.28, compared to $362,180,691.71 in the same period last year[23]. - The net increase in cash and cash equivalents was -$953,465,351.57, an improvement from -$1,291,281,728.38 year-over-year[23]. - The ending balance of cash and cash equivalents was $1,359,437,064.38, down from $1,943,646,896.63 in the previous year[23]. - The beginning balance of cash and cash equivalents was $2,312,902,415.95, compared to $3,234,928,625.01 last year[23]. - The impact of exchange rate changes on cash and cash equivalents was -$92,549.23, compared to -$38,617.77 in the previous year[23]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 9,617,811,566.20, down 6.40% from the end of the previous year[5]. - Current assets decreased to CNY 6,774,987,136.89 from CNY 7,397,523,212.75, representing a decline of 8.4% year-over-year[16]. - Total liabilities decreased to CNY 6,240,629,861.13 from CNY 6,715,239,195.87, a reduction of 7.0%[17]. - Shareholders' equity decreased to CNY 3,377,181,705.07 from CNY 3,560,111,655.87, a decrease of 5.1%[17]. - The equity attributable to shareholders of the listed company decreased by 7.22% to CNY 2,312,106,908.42 compared to the end of the previous year[5]. - Accounts receivable decreased to CNY 2,354,005,250.29, a decline of 6.6% from CNY 2,521,534,932.55[16]. - Cash and cash equivalents dropped to CNY 1,411,166,987.52, down 40.3% from CNY 2,364,632,339.10[16]. - The company experienced a 40.32% decrease in cash and cash equivalents, primarily due to significant project payments made during the period[7]. Investments and Strategic Initiatives - The company plans to focus on major project investments despite a decrease in overall business volume[9]. - The company established a joint venture, China Logistics Group Digital Technology Co., with a registered capital of RMB 500 million, where the company contributed RMB 180 million for a 36% stake[13]. - The company plans to focus on new product development and market expansion strategies in the upcoming quarters[18]. Stock and Shareholder Information - The company adjusted the repurchase price for its 2021 restricted stock incentive plan to RMB 20.07 per share, with a total of 193,700 shares to be repurchased and canceled[14]. - The company granted 132,000 shares of reserved restricted stock to 5 eligible participants at a price of RMB 37.52 per share[14]. - The company completed the registration of 1,764,000 shares of reserved restricted stock granted to 62 participants[14]. - The company reported that the number of shares lent for securities lending does not exceed 2% of the total share capital[12]. Other Financial Metrics - The company reported a 35.77% decrease in non-operating income, mainly due to fewer government subsidies received compared to the previous period[9]. - Research and development expenses for Q1 2023 were 440,105,250.39 RMB, slightly down from 446,430,898.82 RMB in Q1 2022, showing a decrease of about 1.4%[19]. - Total operating costs for Q1 2023 were 1,568,480,753.32 RMB, down from 1,721,637,618.11 RMB in Q1 2022, representing a decrease of approximately 8.9%[19]. - Accounts receivable financing increased by 131.67%, attributed to a higher use of bank acceptance bills for settlements[7].

Financial Performance - The company's operating revenue for Q3 2022 was ¥1,970,848,842.16, representing a year-on-year increase of 12.07%[4] - The net profit attributable to shareholders of the listed company was -¥106,679,457.98 for Q3 2022, with a year-to-date net profit of -¥391,455,964.76[4] - The basic earnings per share for Q3 2022 was -¥0.22, and the diluted earnings per share was also -¥0.22[4] - Total operating revenue for Q3 2022 reached ¥5,582,329,585.47, an increase of 27.1% compared to ¥4,389,165,244.63 in the same period of 2021[18] - Total operating costs amounted to ¥6,352,975,146.73, up 23.2% from ¥5,156,846,560.52 year-on-year[18] - The net loss for Q3 2022 was ¥450,902,826.70, slightly improved from a net loss of ¥473,832,791.98 in Q3 2021[19] - The company reported a total comprehensive loss of ¥450,554,051.69 for Q3 2022, compared to a loss of ¥474,273,066.03 in the same quarter of the previous year[19] - Basic earnings per share for Q3 2022 were -¥0.79, compared to -¥0.92 in Q3 2021[20] Assets and Liabilities - Total assets at the end of Q3 2022 were ¥9,911,152,726.82, a decrease of 9.23% compared to the end of the previous year[4] - The equity attributable to shareholders of the listed company was ¥2,041,088,624.26, down 15.79% from the end of the previous year[4] - The company's total liabilities decreased to ¥7,054,395,900.03 from ¥7,606,705,740.27 in the previous year, reflecting a reduction of approximately 7.2%[17] - The total equity attributable to shareholders decreased to ¥2,041,088,624.26 from ¥2,423,845,664.08, a decline of about 15.7%[17] - As of September 30, 2022, the company's cash and cash equivalents decreased to ¥1,581,854,447.38 from ¥3,276,635,882.26 as of December 31, 2021, representing a decline of approximately 51.8%[15] - The company's inventory decreased to ¥2,194,284,383.14 from ¥2,576,429,840.13, a decline of approximately 14.8%[15] - Accounts receivable increased to ¥2,357,604,122.33, up from ¥2,094,388,230.78, reflecting a growth of about 12.6% year-over-year[15] Cash Flow - The company reported a net cash flow from operating activities of -¥2,003,745,787.76 year-to-date[4] - Operating cash flow for the first three quarters of 2022 was -2,003,745,787.76 CNY, compared to -1,855,210,153.17 CNY in the same period of 2021, indicating a decline in cash flow[21] - Total cash inflow from operating activities decreased to 5,813,379,561.94 CNY in 2022 from 6,803,569,652.68 CNY in 2021, a drop of approximately 14.5%[21] - Cash outflow from operating activities was 7,817,125,349.70 CNY in 2022, down from 8,658,779,805.85 CNY in 2021, reflecting a reduction of about 9.7%[21] - Investment activities generated a net cash flow of -632,277,178.99 CNY in 2022, compared to -263,034,706.60 CNY in 2021, indicating increased cash outflow[22] - Cash inflow from financing activities increased to 2,928,700,826.18 CNY in 2022, up from 2,700,480,014.69 CNY in 2021, representing an increase of approximately 8.5%[22] - The net cash flow from financing activities was 941,301,480.30 CNY in 2022, down from 1,360,233,555.94 CNY in 2021, showing a decrease of about 30.8%[22] - The ending cash and cash equivalents balance for 2022 was 1,540,285,941.58 CNY, compared to 1,737,162,679.02 CNY in 2021, reflecting a decrease of approximately 11.3%[22] Investments and Subsidiaries - The company plans to invest up to 389 million RMB in Easy Whale Technology, acquiring a maximum of 16.97 million RMB in registered capital[10] - The company has established a joint venture, Zhongzi Special Logistics, with a registered capital of 200 million RMB, in which the company holds a 25% stake[11] - The company has completed the first phase of capital raising for Zhongzi Special Logistics, with its contribution being 50 million RMB[11] - The company has invested 18 million RMB directly in Easy Whale Technology, with a total investment of 47.24 million RMB through its subsidiary[10] - The company has a total of 8,463,221 shares held by Hong Kong Central Clearing Limited, accounting for 1.28% of the total shares[9] - The company has a total of 3,706,700 shares held by Liu Kang, accounting for 0.56% of the total shares[9] - The company has a total of 3,440,390 shares held by the Basic Pension Insurance Fund, accounting for 0.52% of the total shares[9] - The company established a wholly-owned subsidiary in Shaoxing with a registered capital of ¥10,000,000[13] - The company acquired an 18% stake in the China Electric Innovation Institute for ¥2,034,000, increasing its total ownership to 37%[13] Research and Development - Research and development expenses for the first three quarters of 2022 were ¥1,427,739,230.86, nearly unchanged from ¥1,430,713,669.30 in the same period of 2021[18] Government Support - The company received government subsidies totaling ¥30,500,000 during the reporting period[14] Employee Compensation - The company reported a significant increase in employee compensation payments, totaling 2,420,645,991.21 CNY in 2022, compared to 1,974,448,660.32 CNY in 2021, an increase of about 22.6%[21] Accounting Standards - The company has not applied new accounting standards for the year 2022, as stated in the third quarter report[23] Future Outlook - Future outlook and strategic initiatives were not explicitly mentioned in the provided documents, suggesting a potential area for further inquiry in upcoming reports[19]

Financial Performance - The company's operating revenue for the first half of 2022 was CNY 3,611,480,743.31, representing a 37.29% increase compared to CNY 2,630,600,823.98 in the same period last year[17]. - The net profit attributable to shareholders of the listed company was a loss of CNY 284,776,506.78, an improvement from a loss of CNY 360,919,211.99 in the previous year[17]. - The net cash flow from operating activities was a negative CNY 2,180,657,844.84, compared to a negative CNY 1,952,359,333.88 in the same period last year[17]. - The total profit for the period was -285 million RMB, a reduction in losses by 78 million RMB compared to the previous year[31]. - The net profit attributable to shareholders was -285 million RMB, also a reduction in losses by 76 million RMB year-on-year[31]. - The net loss for the first half of 2022 was CNY 299,021,848.44, compared to a net loss of CNY 382,967,380.05 in the same period of 2021, indicating an improvement in financial performance[102]. - The company reported a total comprehensive income of -284,776,506.78 RMB for the first half of 2022, compared to -298,531,219.97 RMB in the previous year[113]. - The total comprehensive income for the period was -361,306,145.36 RMB, highlighting a loss compared to the previous year's figures[118]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 10,528,378,717.71, down 3.58% from CNY 10,919,128,452.07 at the end of the previous year[17]. - The total liabilities increased to CNY 4,637,725,982.81 in the first half of 2022, compared to CNY 4,084,292,927.11 in the same period of 2021, marking a rise of 13.5%[100]. - The total equity decreased to CNY 1,451,377,471.04 in the first half of 2022 from CNY 1,540,843,767.10 in the previous year, reflecting a decline of 5.8%[100]. - The total equity attributable to shareholders decreased to ¥2,133,745,540.38 from ¥2,423,845,664.08, a decline of approximately 11.99%[97]. - The total current assets decreased from CNY 8,737,344,347.21 to CNY 7,956,654,301.44, a reduction of approximately 8.93%[95]. - The total liabilities at the end of the period were not explicitly stated, but the significant changes in equity suggest a potential increase in financial leverage[121]. Cash Flow - The net cash flow from investment activities significantly decreased due to increased payments for investments and fixed assets[33]. - The company reported a total cash inflow from financing activities of approximately CNY 2.18 billion, compared to CNY 2.00 billion in the previous year, reflecting an increase of about 8.9%[108]. - The cash inflow from financing activities was 2,054,821,799.21 RMB, significantly higher than 1,338,984,515.05 RMB in the same period last year, marking a growth of approximately 53.5%[109]. - The cash flow from investing activities showed a net outflow of -136,270,658.69 RMB, an improvement from -168,497,959.73 RMB in the first half of 2021[109]. Research and Development - Research and development expenses for the first half of 2022 amounted to CNY 972,321,806.51, slightly up from CNY 945,604,543.71 in the previous year, showing a continued investment in innovation[102]. - The company’s software subsidiary, Kylin Software, maintained the top market share in China's Linux market for 11 consecutive years[25]. - The company is transitioning from project-based delivery to product-based delivery, leveraging its "PKS" technology system and developing multiple application software products[23]. Shareholder and Equity Information - The company has implemented a restricted stock incentive plan, approved by the State-owned Assets Supervision and Administration Commission, to enhance employee motivation[54]. - The total number of shares increased by 165,431,335, resulting in a new total of 659,994,117 shares[86]. - The company granted 13,125,000 restricted shares to 530 individuals, representing approximately 2.65% of the total shares before the grant[87]. - The shareholding structure shows that China Electronics Limited holds 29.47% of the shares, amounting to 194,472,780 shares[90]. Industry and Market Position - The company has established a strong brand advantage as a national leader in information security, receiving substantial government support[23]. - The overall industry outlook remains positive, with government policies accelerating digital transformation and providing growth opportunities[21]. - The company is expanding its railway communication products into countries along the "Belt and Road" initiative, ensuring stable sales and profits[26]. Compliance and Governance - The company has committed to maintaining independent financial and operational structures, ensuring no conflicts of interest with controlling shareholders[60]. - The company has undertaken measures to ensure compliance with environmental responsibilities, although specific details were not disclosed[59]. - The company has not reported any significant litigation or arbitration matters during the reporting period[66]. Financial Instruments and Accounting Policies - The company recognizes financial instruments, including cash, bonds, and receivables, at fair value upon initial recognition[141]. - The company applies a method for accounting for business combinations, distinguishing between those under common control and those not under common control[132]. - The company recognizes revenue when control of the goods is transferred to the customer, either at a point in time or over time based on specific criteria[189].

Financial Performance - The company's operating revenue for Q1 2022 was RMB 1,524,319,395.17, representing a year-on-year increase of 49.64%[4] - The net profit attributable to shareholders of the listed company was a loss of RMB 102,517,021.09, with a basic and diluted earnings per share of -0.21 yuan[4] - The company reported a net profit for Q1 2022 of RMB -140,296,877.55, compared to RMB -192,723,246.38 in Q1 2021, showing an improvement of 27.2%[20] - The company reported a total comprehensive loss of RMB -140,343,218.87 for Q1 2022, compared to RMB -192,841,229.58 in Q1 2021[21] - The total profit for Q1 2022 was RMB -122,361,241.10, compared to RMB -184,466,810.41 in Q1 2021, reflecting a 33.7% improvement[20] Cash Flow - The net cash flow from operating activities was a negative RMB 1,846,764,474.36, indicating significant cash outflow during the period[4] - Cash flow from operating activities showed a net outflow of RMB -1,846,764,474.36, worsening from RMB -1,345,768,255.31 in Q1 2021[22] - Total cash inflow from investment activities was 467,133.46, while cash outflow was 87,518,009.21, resulting in a net cash flow from investment activities of -87,050,875.75[23] - Cash inflow from financing activities totaled 1,004,752,931.21, with cash outflow of 362,180,691.71, leading to a net cash flow from financing activities of 642,572,239.50[23] - The net increase in cash and cash equivalents was -1,291,281,728.38, with a beginning balance of 3,234,928,625.01, resulting in an ending balance of 1,943,646,896.63[23] Assets and Liabilities - Total assets at the end of the reporting period were RMB 10,022,715,457.33, down 8.21% from the end of the previous year[4] - The total liabilities of the company as of March 31, 2022, were approximately 6.85 billion CNY, down from 7.61 billion CNY at the end of 2021, indicating a reduction of about 9.9%[18] - The company's total assets decreased to approximately 10.02 billion CNY from 10.92 billion CNY, a decline of about 8.2%[18] - The company's equity attributable to shareholders decreased by 4.04% to RMB 2,326,005,974.24 compared to the previous year[5] - The company's equity attributable to shareholders decreased to approximately 2.33 billion CNY from 2.42 billion CNY, reflecting a decrease of about 3.7%[18] Operational Costs and Income - The company reported a 59.86% increase in operating costs, primarily due to increased business volume[8] - Total operating costs increased to RMB 1,721,637,618.11, up 35.3% from RMB 1,270,349,036.15 in the same period last year[19] - Other income surged by 134.35%, mainly due to the recognition of more government subsidies during the period[8] - Other income increased to RMB 90,921,467.43, up from RMB 38,797,316.90 in Q1 2021[19] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 115,407[8] - The company reported a total of 149,584,446 shares held by China Electronics Limited, representing a significant portion of the unrestricted circulating shares[11] - The company has engaged in securities lending, with a maximum of 9,890,000 shares lent, accounting for 2% of the total share capital[12] - The company reported a balance of 3,366,500 shares in the securities lending program, which is 0.68% of the total share capital[12] Strategic Initiatives - The company plans to establish a partnership with China Education Electronics and other related parties, with an expected fund size of no less than 4.951 billion RMB, in which the company will contribute 200 million RMB[13] - The company plans to invest up to 389 million CNY in Easy Whale Technology, acquiring a maximum of 16.97 million CNY in registered capital at a price of 22.91 CNY per 1 CNY of registered capital[15] - The company aims to control the newly established partnership, Zhongruan Jintou, which will focus solely on investing in Easy Whale Technology[15] - The company has completed the procedures for purchasing liability insurance for its directors and senior management[13] - The company is in the process of granting restricted stock incentives as part of its 2021 incentive plan, with related registration procedures underway[13] Management Changes - The company has appointed Mr. Fu Xingbin as the new General Manager, replacing the acting General Manager role previously held[13] Miscellaneous - The company did not apply the new accounting standards for the current year, as indicated in the report[23] - The company has not disclosed any related party transactions or agreements that could affect shareholder interests[11] - The impact of exchange rate changes on cash and cash equivalents was -38,617.77, reflecting currency fluctuations[23]

Financial Performance - The company's operating revenue for 2021 was ¥10,351,588,212.51, representing a 39.73% increase compared to ¥7,408,151,562.49 in 2020[19]. - The net profit attributable to shareholders for 2021 was ¥75,581,762.59, a 10.77% increase from ¥68,230,406.29 in 2020[19]. - The net cash flow from operating activities reached ¥789,914,242.64, showing a significant increase of 336.99% compared to ¥180,761,933.42 in 2020[19]. - The total assets at the end of 2021 were ¥10,919,128,452.07, which is a 25.58% increase from ¥8,694,798,718.40 at the end of 2020[19]. - The total profit reached 230 million RMB, reflecting a growth of 24.92% compared to the previous year[38]. - The company reported a basic earnings per share of ¥0.15 for 2021, up 10.77% from ¥0.14 in 2020[20]. - The weighted average return on equity increased to 3.23% in 2021, up from 2.96% in 2020, reflecting a growth of 0.27 percentage points[20]. - The company’s total revenue for the software services industry reached ¥10,317,903,292.18, with a year-on-year increase of 39.92%[44]. - The gross profit margin for the software services industry decreased by 1.13 percentage points to 29.56%[44]. - The company reported a significant increase in financial expenses, totaling ¥35,541,618.13, up 486.09% year-on-year due to higher bank loan interest and leasing costs[50]. Investment and Capital Structure - The company plans to distribute a cash dividend of 0.5 yuan per 10 shares and to increase capital by issuing 3 additional shares for every 10 shares held, resulting in a total cash dividend of approximately 24.73 million yuan and a capital increase of 148.37 million shares[4]. - The total share capital as of April 15, 2022, is 494,562,782 shares, which will increase to a maximum of 660,286,617 shares after the proposed capital increase[4]. - The company has established a complete business chain covering operating systems, middleware, security products, and application systems, serving key sectors of the national economy[32]. - The company has approved multiple investment proposals, including increasing capital for subsidiaries and establishing new wholly-owned subsidiaries in various locations[112]. - The company plans to issue medium-term notes totaling no more than 2 billion RMB, with the relevant procedures currently in progress[129]. - The company has a cash dividend policy that stipulates at least 10% of the distributable profit will be distributed as cash dividends if the company is profitable[117]. Research and Development - Research and development expenses amounted to ¥1,846,561,279.39, representing 18.31% of total revenue[51]. - The number of R&D personnel is 5,947, accounting for 50.01% of the total workforce[52]. - R&D investment increased by 42.23% compared to 2020, primarily due to significant personnel investment in major business areas[53]. - The company has developed a total of 8 standard application products under the "1+7" model, which includes a network security and information support platform, enhancing project implementation in key industries such as taxation, finance, and government[28]. - The company is focusing on product transformation strategies and accelerating the implementation of core application products for key industries[34]. Strategic Focus and Market Position - The company aims to enhance its core competitiveness and deepen market-oriented structural reforms as part of its strategic plan for 2018-2022[26]. - The company is focusing on developing industry solutions and service-oriented businesses centered around cybersecurity and information technology[26]. - The company is actively exploring intelligent upgrades in patent examination and IT technology applications, enhancing its full industry chain layout[29]. - The company is benefiting from favorable policies and a growing market demand driven by the digital economy[35]. - The company is focusing on expanding its presence in the digital government and digital society sectors, enhancing its core competitiveness in digital business[83]. Governance and Compliance - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[5]. - The company has established a risk management and internal control system, which was reviewed and approved during the reporting period[112]. - The company’s governance practices are in compliance with the requirements set by the China Securities Regulatory Commission, with no significant discrepancies noted[86]. - The board of directors has been empowered to make strategic decisions, with a focus on risk prevention and management, aligning with regulatory requirements[85]. - The company has implemented measures to ensure the independence of its operations, with no reported conflicts of interest from controlling shareholders[86]. Future Outlook - The company anticipates challenges in 2022 due to global economic pressures but sees opportunities in the growing demand for domestic software solutions[72]. - The company plans to achieve a revenue of 12 billion yuan in 2022, with cost expenses controlled within a reasonable range[83]. - The company provided a positive outlook for the next quarter, projecting a revenue growth of 10% to 12%[93]. - New product launches are expected to contribute an additional 1 billion yuan in revenue over the next fiscal year[93]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[196].

Financial Performance - The company's operating revenue for Q3 2021 was ¥1,758,564,420.65, representing a year-on-year increase of 108.32%[4] - The net profit attributable to shareholders of the listed company was -¥96,343,638.10, with a year-to-date net profit of -¥457,262,850.09[4] - The basic earnings per share for the quarter was -¥0.19, with a year-to-date figure of -¥0.92[4] - The company reported a year-to-date increase of 96.14% in operating revenue, attributed to the recovery from pandemic-related project delays[8] - The net profit for Q3 2021 was -473,832,791.98 RMB, compared to -648,930,921.02 RMB in Q3 2020, indicating an improvement of approximately 27% year-over-year[23] - The total comprehensive income for Q3 2021 was -474,273,066.03 RMB, compared to -648,556,740.92 RMB in Q3 2020, reflecting a year-over-year improvement of about 27%[24] - The company incurred a total operating profit of -462,863,428.50 RMB in Q3 2021, an improvement from -655,559,259.49 RMB in Q3 2020[23] Assets and Liabilities - Total assets at the end of the reporting period were ¥10,234,035,765.09, an increase of 17.70% compared to the end of the previous year[5] - Total liabilities increased to ¥7,813,099,174.59 in Q3 2021 from ¥5,809,277,582.98 in Q3 2020, representing a growth of approximately 34.4%[20] - The company's total equity decreased to ¥2,420,936,590.50 in Q3 2021 from ¥2,885,521,135.42 in Q3 2020, a decline of about 16.1%[21] - Short-term borrowings rose significantly to ¥1,283,626,774.69 in Q3 2021 from ¥308,079,706.80 in Q3 2020, an increase of approximately 316.5%[20] Cash Flow - The company's cash flow from operating activities for the quarter was ¥97,149,180.71, while the year-to-date cash flow was -¥1,855,210,153.17[4] - Cash flow from operating activities for the first three quarters of 2021 was -1,855,210,153.17 RMB, worsening from -1,142,183,857.68 RMB in the same period of 2020[26] - The company reported cash inflow from operating activities totaling 6,803,569,652.68 RMB in Q3 2021, up from 3,300,575,740.95 RMB in Q3 2020[26] - Cash outflow from operating activities was 8,658,779,805.85 RMB in Q3 2021, compared to 4,442,759,598.63 RMB in Q3 2020, indicating a significant increase[26] - The company reported a net increase in cash and cash equivalents of -758,594,356.94 RMB for Q3 2021, compared to -1,189,840,341.82 RMB in Q3 2020[27] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 123,705[10] - The largest shareholder, China Electronics Corporation, holds 29.57% of the shares[10] - The company has engaged in financing and securities lending activities, with a maximum of 3,366,500 shares lent out, representing 0.68% of the total share capital[11] Investments and Subsidiaries - The company established wholly-owned subsidiaries in 13 cities with a registered capital of RMB 10 million each, with most registration procedures completed[12] - The company plans to set up a private equity investment fund with a total scale of RMB 516 million, with the company committing RMB 51.5 million[13] - The company signed an agreement to increase capital in Zhongdian Wensi Haohui Technology Co., Ltd. with an investment of RMB 500 million, acquiring an 8.74% stake post-increase[13] - The company is selling its entire 60% stake in Zhongsoft Zhitong through a public listing with a minimum price of 2 million RMB, and will no longer hold any equity in Zhongsoft Zhitong after the transaction[15] - The company, in collaboration with China Great Wall Technology Group, is acquiring a total of 27% equity in China Electric (Hainan) Joint Innovation Research Institute for 30.51 million RMB, with the company holding 18% and assuming 7 million RMB of unpaid capital obligations[15] Government Subsidies and Donations - The company received government subsidies amounting to ¥10,547,361.50 during the quarter, contributing to its non-operating income[6] - The company has received a total of 12.35 million RMB in government subsidies related to the "New Generation Qilin Operating System" project since the beginning of 2021[16] - The company has made a charitable donation of 2 million RMB for disaster relief in Henan Province, with the donation process completed[16] Research and Development - Research and development expenses amounted to ¥1,430,713,669.30 in the first three quarters of 2021, up from ¥941,845,507.65 in 2020, reflecting a growth of approximately 51.9%[22] Future Plans and Strategies - The company plans to continue expanding its market presence and investing in new technologies and products to drive future growth[22] - The company has indicated a focus on strategic acquisitions to enhance its competitive position in the market[22]

Financial Performance - Operating revenue for the period reached ¥1,018,634,530.44, representing a significant increase of 69.18% compared to ¥602,116,408.10 in the same period last year[4] - Net profit attributable to shareholders of the listed company was reported at -¥157,462,964.41, showing a slight improvement from -¥161,465,373.03 in the previous year[4] - The weighted average return on net assets was -7.05%, slightly better than -7.37% in the previous year[4] - The basic and diluted earnings per share were both -¥0.32, consistent with the previous year's figure of -¥0.33[4] - The company reported a significant increase in tax expenses by 419.43% to ¥8,256,435.97 from ¥1,589,528.61, largely due to prior year asset impairment losses[11] - The net profit for Q1 2021 was a loss of CNY 192,723,246.38, compared to a loss of CNY 199,063,979.53 in Q1 2020, showing an improvement of 3.4%[26] - The net loss attributable to shareholders was CNY -39,009,583.43, compared to a net loss of CNY -66,629,495.51 in the same period last year, representing a 41.5% improvement[29] Cash Flow - The net cash flow from operating activities was -¥1,345,768,255.31, compared to -¥994,650,364.52 in the same period last year, indicating a worsening cash flow situation[4] - The net cash flow from operating activities for the current period is -1,345,768,255.31 RMB, a decrease of 351,117,890.79 RMB compared to the previous year[12] - The company reported a net cash outflow from operating activities of CNY -1,345,768,255.31, worsening from CNY -994,650,364.52 in the previous year[31] - The cash outflow for purchasing goods and services in Q1 2021 was 678,803,670.49 RMB, which is a 36.1% increase compared to 498,446,610.27 RMB in Q1 2020[33] Assets and Liabilities - Total assets at the end of the reporting period amounted to ¥8,697,002,622.28, reflecting a slight increase of 0.03% compared to the end of the previous year[4] - Total liabilities reached RMB 5,954,322,716.49, compared to RMB 5,809,277,582.98 at the end of 2020, marking an increase of 2.5%[21] - The company's equity attributable to shareholders decreased to RMB 2,153,337,761.57 from RMB 2,310,895,112.59, a decline of 6.8%[21] - Current assets totaled RMB 7,178,913,633.93, a decrease from RMB 7,354,761,245.66 at the end of 2020, primarily due to a reduction in cash and cash equivalents[19] - Total current liabilities reached approximately ¥5.42 billion, indicating a significant portion of the company's obligations[38] Shareholder Information - The total number of shareholders at the end of the reporting period was 133,899, with the largest shareholder, China Electronics Corporation, holding 30.25% of the shares[7] - The total equity attributable to shareholders was approximately ¥2.31 billion, with minority interests of about ¥574.63 million[39] Investments and Subsidiaries - The company completed a capital increase for a subsidiary, raising its registered capital to 31,691.1764 million RMB[14] - The company and China Great Wall Technology Group jointly acquired 27% of the equity in a research institute for a total of 30.51 million RMB, with the company investing 20.34 million RMB for 18%[13] - The company established wholly-owned subsidiaries in various cities with registered capital ranging from 1 million to 50 million RMB[15] Research and Development - Research and development expenses grew by 45.98% to ¥404,380,751.23 from ¥277,008,549.80, reflecting increased investment in major project R&D[10] - Research and development expenses for Q1 2021 amounted to CNY 404,380,751.23, an increase of 46.0% from CNY 277,008,549.80 in Q1 2020[26] Government Subsidies and Other Income - The company received government subsidies amounting to ¥1,992,198.63, which are closely related to its normal business operations[5] - Other income increased by 66.56% to ¥38,797,316.90 from ¥23,293,093.62, mainly due to recognition of government subsidies[10] Financial Reporting Changes - The company has implemented new leasing standards effective from January 1, 2021, impacting financial reporting[40] - The company did not apply retrospective adjustments for prior comparative data under the new leasing standards[44]

Financial Performance - The company's operating revenue for 2020 was CNY 7,408,151,562.49, representing a 27.30% increase from CNY 5,819,592,183.30 in 2019[16]. - The net profit attributable to shareholders for 2020 was CNY 68,230,406.29, a 10.34% increase compared to CNY 61,834,735.64 in 2019[16]. - The total profit reached 184 million RMB, reflecting a year-on-year growth of 20.54%[35]. - The total comprehensive income for 2020 was CNY 163,826,941.48, compared to CNY 144,349,697.51 in 2019, marking an increase of 13.54%[172]. - The company reported a significant increase in revenue, achieving a total of 10 billion RMB for the fiscal year 2020, representing a year-over-year growth of 15%[131]. Cash Flow and Dividends - The company plans to distribute a cash dividend of 0.42 CNY per 10 shares, totaling 20,771,636.84 CNY, which accounts for 30.44% of the net profit attributable to shareholders for the year[4]. - The net cash flow from operating activities decreased by 81.72% to CNY 180,761,933.42 from CNY 988,769,136.49 in 2019[16]. - The company has retained undistributed profits of 20,403,424.84 CNY to be carried forward to the next year[4]. - The company maintains a profit distribution policy that ensures at least 10% of the distributable profit is allocated as cash dividends when conditions are met[73]. - The company has a clear and stable profit distribution policy that prioritizes cash dividends, ensuring investor returns while considering long-term interests[73]. Assets and Liabilities - The total assets at the end of 2020 were CNY 8,694,798,718.40, an increase of 28.93% from CNY 6,743,722,131.78 at the end of 2019[16]. - The company's total liabilities increased to CNY 5,809,277,582.98, compared to CNY 3,981,949,596.39 in 2019, marking a rise of about 46%[167]. - The total equity attributable to shareholders reached CNY 2,310,895,112.59, up from CNY 2,272,815,204.51, showing a growth of approximately 1.7%[167]. - Accounts receivable increased significantly to CNY 2,093,657,853.47 from CNY 1,343,252,731.07, reflecting a growth of approximately 55.8%[165]. - The inventory increased to CNY 1,709,879,060.51 from CNY 1,126,020,720.54, representing a growth of approximately 51.6%[165]. Business Operations and Strategy - The company established subsidiaries or branches in multiple provinces including Henan, Hubei, and Xinjiang, enhancing its national strategic layout and market expansion[23]. - The company’s core business segments include independent software products, industry solutions, and service-oriented businesses, focusing on information technology and software services[23]. - The company is focusing on digital transformation solutions, enhancing application maturity across various sectors[32]. - The company plans to focus on product transformation and aims to become a leading force in the national network security industry during the "14th Five-Year Plan" period[67]. - The company is actively exploring intelligent upgrades in patent examination and IT technology applications[32]. Research and Development - The total R&D expenditure amounted to ¥1,332,460,812.61, representing 17.99% of total revenue, with a year-over-year growth of 11.93%[48]. - The company plans to invest 500 million RMB in research and development for new technologies over the next two years[131]. - The company’s self-developed operating system, Galaxy Kirin V10, has achieved significant breakthroughs and is widely applied in various government and financial institutions[29]. - The company has developed and piloted 8 new technologies and solutions, including voice and facial recognition, expanding applications in various sectors[105]. - The company is focusing on developing core software products and industry solutions to support digital governance and infrastructure construction[68]. Governance and Compliance - The company has received a standard unqualified audit report from Zhongtianyun Accounting Firm[3]. - The company has confirmed that more than half of the directors can guarantee the authenticity, accuracy, and completeness of the annual report[5]. - The company has established a complete operational asset structure to ensure independent business activities[77]. - The company’s governance practices align with the requirements set by the China Securities Regulatory Commission, with no significant discrepancies noted[144]. - The company has not reported any major litigation or arbitration matters in the current year, indicating a stable legal environment[86]. Market and Competitive Position - The software and information technology services industry in China showed steady growth in 2020, recovering from the impacts of the COVID-19 pandemic[23]. - The company benefits from strong support from its controlling shareholder, China Electronics, in various aspects including policy and capital resources[27]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by 2023[131]. - The company has received multiple high-level certifications, including ISO9001 and ISO27001, enhancing its competitive position in the market[26]. - The company’s railway-specific products have increased market share and contributed to stable sales and profit performance[29]. Social Responsibility - The company has actively integrated social responsibility into its operations, enhancing its service capabilities and ensuring smooth operation of key systems[105]. - The company donated 900,000 yuan to combat COVID-19, including 15 air purification machines valued at 103,500 yuan to frontline medical staff[108]. - The company completed poverty alleviation purchases amounting to 1.03 million yuan in 2020, supporting impoverished regions such as Hubei and Xinjiang[108]. - The company has been recognized as an advanced collective in the fight against COVID-19, highlighting its commitment to social responsibility[105]. - The board of directors highlighted the commitment to sustainable practices, aiming for a 30% reduction in carbon emissions by 2025[131].