Financial Performance - Operating revenue for the first nine months was ¥2,237,726,484.23, down 28.87% from ¥3,145,931,203.34 in the same period last year[7]. - Net profit attributable to shareholders of the listed company was -¥549,790,622.96, compared to -¥245,436,442.77 in the previous year[7]. - The company reported a net loss of RMB 648,930,921.02, a significant increase in losses compared to the previous year[14]. - Total operating revenue for Q3 2020 was ¥844,149,793.39, a decrease of 21.9% compared to ¥1,080,908,143.68 in Q3 2019[31]. - Net loss for Q3 2020 was ¥157,763,596.71, compared to a net loss of ¥42,219,068.54 in Q3 2019[32]. - The total comprehensive loss for Q3 2020 was ¥157,808,212.90, compared to a loss of ¥42,069,981.19 in Q3 2019[33]. - The total operating profit for the first three quarters of 2020 was a loss of approximately ¥245.95 million, compared to a loss of ¥139.43 million in the same period of 2019[36]. Assets and Liabilities - Total assets at the end of the reporting period amounted to ¥6,229,124,231.59, a decrease of 7.63% compared to the end of the previous year[7]. - Total current assets were approximately ¥5.03 billion, down from ¥5.47 billion at the end of 2019, reflecting a decrease of 8.1%[23]. - Cash and cash equivalents decreased by 46.81% from the beginning of the year, totaling RMB 1,361,388,386.86[12]. - Current liabilities increased from CNY 3,492,470,249.90 to CNY 3,797,762,501.24, an increase of approximately 8.7%[25]. - Total liabilities were ¥3,981,949,596.39, which is an increase of ¥10,752,224.85 compared to the last reporting period[48]. - Non-current liabilities decreased from CNY 489,479,346.49 to CNY 383,722,673.37, a reduction of about 21.6%[25]. Shareholder Information - Net assets attributable to shareholders of the listed company were ¥1,673,098,477.65, reflecting a decline of 26.39% year-on-year[7]. - The total number of shareholders at the end of the reporting period was 124,651, with the largest shareholder holding 30.00% of the shares[10]. - The top ten shareholders collectively held 64.69% of the total shares, indicating a concentrated ownership structure[10]. Cash Flow - The net cash flow from operating activities for the first nine months was -¥1,142,183,857.68, indicating a significant increase in cash outflow compared to -¥579,729,228.38 last year[7]. - Cash flow from operating activities for the first three quarters of 2020 was a net outflow of approximately ¥1.14 billion, compared to a net outflow of ¥579.73 million in the same period of 2019[40]. - The total cash outflow from operating activities was 2,005,672,108.84 RMB, compared to 1,942,923,652.96 RMB in the same period last year, marking an increase of about 3.2%[43]. Investments and Acquisitions - The company acquired 51% of the equity of its subsidiary Zhongruan Giant, completing the acquisition for RMB 3,519,100[17]. - The company and China Great Wall Technology Group jointly acquired a 27% stake in China Electronics Innovation Institute for a total of ¥30.51 million[20]. - The company reported an investment loss of ¥30,391,837.04 for the first three quarters of 2020[32]. Operational Changes - The company adopted new revenue recognition standards effective January 1, 2020, impacting the financial reporting[52]. - The company established wholly-owned subsidiaries in eight cities with registered capital of ¥30 million each in Jiangxi, Shenzhen, Hubei, and Fujian, and varying amounts in Henan, Anhui, Shanxi, and Shaoxing[18]. - The company plans to establish a branch in Ningxia, with the registration completed on August 24, 2020[19]. Research and Development - R&D expenses for Q3 2020 increased to ¥312,708,858.44, up from ¥294,845,061.96 in Q3 2019, reflecting a growth of 6.5%[31]. - Research and development expenses in Q3 2020 were approximately ¥111.26 million, down 21.7% from ¥142.08 million in Q3 2019[36].

Financial Performance - The company's operating revenue for the first half of 2020 was ¥1,393,576,690.84, a decrease of 32.52% compared to ¥2,065,023,059.66 in the same period last year[15]. - The net profit attributable to shareholders of the listed company was -¥409,712,763.82, compared to -¥208,954,757.15 in the previous year, indicating a worsening financial performance[15]. - The net cash flow from operating activities was -¥1,342,355,706.51, significantly lower than -¥559,816,090.91 in the same period last year[15]. - The total assets at the end of the reporting period were ¥5,557,406,442.69, down 17.59% from ¥6,743,722,131.78 at the end of the previous year[15]. - The net assets attributable to shareholders of the listed company decreased by 20.10% to ¥1,816,086,521.93 from ¥2,272,815,204.51 at the end of the previous year[15]. - The basic earnings per share for the first half of 2020 was -¥0.83, compared to -¥0.42 in the same period last year[16]. - The weighted average return on net assets was -20.30%, a decline from -9.97% in the previous year[16]. - The total profit amounted to -490 million RMB, an increase in loss of 248 million RMB compared to the previous year[27]. - The net profit attributable to the parent company was -410 million RMB, an increase in loss of 201 million RMB year-on-year[27]. - The total comprehensive income for the period was -490,748,528.02, compared to -236,731,846.70 in the same period last year, reflecting a worsening financial position[28]. Revenue Breakdown - Revenue from proprietary software products was 200 million RMB, down 16.20% year-on-year, with an average gross margin of 66.23%[24]. - Revenue from industry solutions was 689 million RMB, a decrease of 43.57% year-on-year, with an average gross margin of 14.11%[24]. - Revenue from service-oriented business was 489 million RMB, down 17.44% year-on-year, with an average gross margin of 44.53%[24]. - The company reported a revenue of 1.39 billion RMB, a decrease of 32.52% year-on-year[27]. Cash Flow and Liquidity - The cash flow from operating activities showed a notable decline, attributed to delayed project payments and increased procurement payments due to the pandemic[28]. - The company's cash and cash equivalents at the end of the period included restricted cash of 25,656,947.59, primarily for various guarantees[32]. - The total cash outflow from operating activities was 3,036,558,045.83 RMB, compared to 2,664,824,632.78 RMB in the previous year, reflecting an increase of approximately 14%[87]. - The company reported a cash and cash equivalents balance of 1,194,738,874.66 RMB at the end of the period, down from 977,192,335.52 RMB in the same period last year[87]. - The company paid 900,374,339.11 RMB to employees, which is an increase of approximately 25.4% compared to 717,432,483.82 RMB in the previous year[87]. Assets and Liabilities - Accounts receivable decreased by 49.99% to 830,250,783.02 from 1,660,255,196.41, indicating a significant reduction in outstanding payments[30]. - The company's total assets at the end of the reporting period amounted to 5,557,406,442.69, reflecting a slight increase of 0.88% compared to 5,509,149,930.42 from the previous year[30]. - The company's long-term borrowings decreased by 43.90% to 230,000,000.00 from 410,000,000.00, indicating a reduction in long-term debt obligations[30]. - Total liabilities decreased from CNY 3,981,949,596.39 to CNY 3,346,629,011.08, reflecting a reduction of approximately 16.0%[77]. Business Operations and Strategy - The company focuses on information security engineering, with a business model centered around project-based operations, including software sales, system integration, and maintenance services[19]. - The company has established a comprehensive self-owned software product chain, covering key sectors such as taxation, e-government, and finance[19]. - The company aims to expand its market presence in the digital city sector and improve its big data platform maturity[25]. - The company is developing a new generation of unified regulatory reporting platforms to establish new growth points in regulatory business over the next three to five years[26]. - The company has maintained a leading market position in the national information security field, with significant application prospects[21]. Risks and Challenges - The impact of COVID-19 has delayed project bidding processes, affecting business progress in the first half of 2020[20]. - The company has outlined potential risks in its operational discussion and analysis section, urging investors to pay attention[5]. - The company anticipates a significant decline in cumulative net profit for the year due to ongoing investments in key business projects and delays caused by the pandemic[41]. - The company expects to face continued challenges in project execution timelines due to the pandemic's impact[41]. Shareholder and Capital Structure - The total number of ordinary shareholders reached 101,070 by the end of the reporting period[66]. - The top ten shareholders hold a total of 148,353,446 shares, representing 30.00% of the total shares[67]. - The company did not issue any preferred shares during the reporting period[69]. - The company has not disclosed any related party transactions or agreements among shareholders[68]. Accounting and Financial Reporting - The company will implement the new revenue recognition standards starting from January 1, 2020, as mandated by the Ministry of Finance[60]. - The new revenue standards will unify the previous revenue and construction contract standards into a single model, changing the revenue recognition criteria from risk and reward transfer to control transfer[61]. - The implementation of the new revenue standards is not expected to have a significant impact on the company's operating results[62]. - The financial statements are prepared in accordance with the accounting standards for enterprises, ensuring a true and complete reflection of the company's financial status[104].

Financial Performance - Net profit attributable to shareholders decreased by 40.21% to CNY 602,116,408.10 compared to the same period last year[4] - The company reported a net loss of CNY -161,465,373.03 for the quarter[4] - The net profit for Q1 2020 was a loss of RMB 199,063,979.53, compared to a loss of RMB 126,953,000.73 in the previous year, reflecting a significant increase in losses[13] - The company reported a gross profit margin of -34.7% in Q1 2020, compared to -13.0% in Q1 2019[26] - Basic and diluted earnings per share for Q1 2020 were both -¥0.33, compared to -¥0.21 in Q1 2019[27] - The total comprehensive loss for Q1 2020 was ¥199,063,979.53, compared to a total comprehensive loss of ¥124,709,295.42 in Q1 2019[27] - Net loss for Q1 2020 was ¥199,063,979.53, compared to a net loss of ¥126,953,000.73 in Q1 2019[27] Cash Flow - Net cash flow from operating activities was negative at CNY -994,650,364.52, indicating a significant decline in cash generation[4] - The cash flow from operating activities showed a net outflow of RMB 994,650,364.52, worsening from a net outflow of RMB 455,467,104.86 in the previous year[15] - Cash inflow from operating activities totaled $363.12 million, a decrease of 2.3% compared to $370.68 million in Q1 2019[35] - Cash outflow from operating activities increased to $828.62 million, up 16.2% from $713.18 million in Q1 2019[35] - Net cash flow from operating activities was -$465.50 million, worsening from -$342.49 million in Q1 2019[35] Assets and Liabilities - Total assets decreased by 13.23% to CNY 5,851,824,557.10 compared to the end of the previous year[4] - Cash and cash equivalents decreased by 40.25% to CNY 1,529,252,921.24 compared to the end of the previous year[10] - Accounts receivable decreased by 39.28% to CNY 815,667,344.11 compared to the end of the previous year[10] - The company's current assets totaled CNY 4,604,077,844.55, down from CNY 5,473,237,735.68 at the end of 2019, indicating a decrease of about 15.9%[19] - Total liabilities decreased to CNY 3,358,422,885.09 from CNY 3,981,949,596.39, a decline of about 15.6%[21] - The company's equity attributable to shareholders was CNY 2,064,345,685.72, down from CNY 2,272,815,204.51, indicating a decrease of approximately 9.2%[21] - The total assets of the company were approximately ¥6.74 billion, showing a decline of ¥79.04 million compared to the previous total[39] Operational Metrics - The company's operating revenue for Q1 2020 was RMB 602,116,408.10, a decrease of 40.21% compared to RMB 1,007,082,826.38 in the same period last year[13] - Total operating revenue for Q1 2020 was ¥602,116,408.10, a decrease of 40.1% compared to ¥1,007,082,826.38 in Q1 2019[26] - Total operating costs for Q1 2020 were ¥811,512,334.87, down 27.9% from ¥1,125,936,490.35 in Q1 2019[26] - The company reported a decrease in cash inflow from sales of goods and services, totaling ¥576,438,632.07, down from ¥855,838,668.07 in Q1 2019[32] Strategic Developments - The company plans to acquire 51% of the equity of its subsidiary Zhongsoft Giant for a total price of RMB 3,519,100, indicating ongoing strategic investments[17] - The company is undergoing a capital increase for its subsidiary Qilin Software, with an additional registered capital of RMB 438,000,000, which will enhance its operational capacity[17] - The company anticipates continued losses for the cumulative net profit attributable to shareholders for the year, primarily due to significant investments in key business projects[17] - The company has not disclosed any new product developments or market expansion strategies in this report[9] Changes in Accounting Standards - The company has implemented new revenue and lease standards starting from 2020, impacting financial reporting[37] - The company implemented new revenue recognition standards starting January 1, 2020, affecting the financial reporting[44] - The company reported a retained earnings adjustment of approximately ¥5.37 million due to the new accounting standards[43]

Financial Performance - The company's operating revenue for 2019 was RMB 5,819,592,183.30, representing a 26.15% increase compared to RMB 4,613,161,359.60 in 2018[15] - The net profit attributable to shareholders of the listed company decreased by 47.45% to RMB 61,834,735.64 from RMB 117,670,636.27 in the previous year[15] - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 48,098,060.94, an increase of 7.08% from RMB 44,919,448.43 in 2018[15] - Basic earnings per share decreased by 47.45% to CNY 0.13 in 2019 from CNY 0.24 in 2018[16] - The weighted average return on equity dropped by 2.68 percentage points to 2.77% in 2019 compared to 5.45% in 2018[16] - The total profit reached 153 million yuan, up 16.33% compared to the previous year[31] - Net profit attributable to the parent company was 61.83 million yuan, a decrease of 47.45% year-on-year[31] - The company reported a net profit attributable to shareholders of CNY 307.27 million in Q4 2019, recovering from losses in the previous three quarters[18] - The company achieved an operating revenue of 5.82 billion yuan, a year-on-year increase of 26.15%[31] Cash Flow and Assets - The net cash flow from operating activities surged by 648.22% to RMB 988,769,136.49, compared to RMB 132,149,878.79 in 2018[15] - Cash and cash equivalents rose by 66.52% to ¥2,559,392,305.93, attributed to better sales collection and higher advance payments[44] - The total assets of the company increased by 18.09% to RMB 6,743,722,131.78 at the end of 2019, up from RMB 5,710,849,324.19 at the end of 2018[15] - The company's cash flow from operating activities was significantly higher than the cash flow from investing and financing activities, indicating strong operational performance[172] - The total cash and cash equivalents at the end of 2019 amounted to CNY 888,387,962.22, up from CNY 710,096,765.63 at the end of 2018, representing an increase of approximately 25.1%[172] Research and Development - R&D expenses rose by 19.62% to ¥1,162,909,703.87 from ¥972,208,472.40, reflecting the company's commitment to innovation[32] - Total R&D expenditure for the year reached ¥1,190,490,748.86, representing an 18.20% increase compared to 2018[42] - R&D expenses accounted for 20.46% of total operating revenue, with 4,252 R&D personnel making up 54.03% of the total workforce[41] - The company is investing 100 million RMB in research and development for new technologies in artificial intelligence[124] Dividend Policy - The company plans to distribute a cash dividend of RMB 0.40 per 10 shares, totaling RMB 19,782,511.28, which represents a cash dividend payout ratio of 31.99%[4] - The company distributed cash dividends of 0.7 RMB per 10 shares for the fiscal year 2018, totaling 34,619,394.74 RMB, which accounted for 31.24% of the net profit attributable to shareholders[67] - The company maintains a cash dividend policy of distributing at least 10% of the annual distributable profit to shareholders, provided that the company is profitable and has positive retained earnings[67] Market and Industry Outlook - The software and information technology services industry is expected to grow at an average annual rate of over 13% during the 13th Five-Year Plan period[22] - The company is focusing on the "Xin Chuang" project, enhancing its capabilities in software products and industry solutions[22] - The company is actively developing new industry information solutions leveraging cloud computing and big data technologies[28] - The company plans to focus on integrating new technologies such as cloud computing, big data, and artificial intelligence to enhance its core competitiveness[62] Corporate Governance and Compliance - The company has received a standard unqualified audit report from Zhongtianyun Accounting Firm[3] - The company has described the risks it faces in the annual report, urging investors to pay attention to these risks[6] - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[6] - The company has not faced any risks of suspension or termination of its listing during the reporting period[85] Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 85,366, down from 95,355 at the end of the previous month[110] - China Electronics Information Industry Group Co., Ltd. holds 30.00% of the shares, totaling 148,353,446 shares, with a decrease of 74,836,800 shares during the reporting period[111] - The top ten shareholders include China Electronics and CITIC Securities, with CITIC holding 60,000,000 shares, representing 12.13%[111] Strategic Initiatives - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region by 2022[124] - A strategic acquisition of a local tech firm was completed, valued at 300 million RMB, aimed at enhancing technological capabilities[124] - The company signed a strategic cooperation agreement with the Wuhu Municipal Government, allowing the withdrawal of a lawsuit against its subsidiary, Zhongruan Information Service Co., Ltd.[101] Social Responsibility - The company actively engaged in social responsibility initiatives, including donations to support poverty alleviation efforts in Xinjiang[105] - The company donated a total of 40,000 yuan for poverty alleviation and 810,000 yuan to support poverty alleviation efforts in western and impoverished areas of Tianjin[107]

Financial Performance - Operating revenue for the first nine months was RMB 3,145,931,203.34, representing an increase of 23.81% year-on-year[5] - Net profit attributable to shareholders was a loss of RMB 245,436,442.77, compared to a loss of RMB 237,419,286.54 in the same period last year[5] - The weighted average return on equity was -11.87%, an increase of 0.11 percentage points compared to -11.98% in the previous year[5] - The total non-operating income and expenses for the first nine months amounted to RMB 7,491,420.48[7] - The basic earnings per share for the reporting period was -RMB 0.50, compared to -RMB 0.48 in the same period last year[5] - Total revenue for Q3 2019 reached ¥1,080,908,143.68, an increase from ¥1,010,347,381.91 in Q3 2018, representing a growth of approximately 6.8%[29] - Net profit for the first three quarters of 2019 was ¥10,717,169.30, a significant decrease from ¥183,376,107.55 in the same period of 2018, reflecting a decline of approximately 94.2%[28] - The total comprehensive income for Q3 2019 was approximately -¥42.07 million, compared to -¥31.98 million in Q3 2018, showing a worsening financial position[32] - The company reported a net profit of CNY 3,015,258.19 for the first nine months of 2019, compared to a net loss of -CNY 138,052,857.43 in the same period of 2018[36] - The total comprehensive income for the first nine months of 2019 was CNY 3,015,258.19, a recovery from a loss of -CNY 138,052,857.43 in the previous year[36] Assets and Liabilities - Total assets at the end of the reporting period were RMB 5,500,003,861.57, a decrease of 3.54% compared to the end of the previous year[5] - Total liabilities increased to ¥3,219,072,554.25, up from ¥3,104,300,749.82, marking an increase of approximately 3.7%[25] - The company’s total equity decreased to ¥2,280,931,307.32 from ¥2,597,751,213.57, a decline of approximately 12.2%[25] - Total assets as of September 30, 2019, amounted to ¥3,192,590,819.24, down from ¥3,368,175,101.28 at the end of 2018, a decrease of about 5.2%[28] - Total current liabilities reached CNY 2,708,832,749.76, reflecting the company's ongoing operational obligations[44] - Total liabilities amounted to approximately ¥3.10 billion[45] - Total equity attributable to shareholders reached approximately ¥2.21 billion[45] - Total assets were reported at approximately ¥5.70 billion[45] Cash Flow - The company reported a net cash flow from operating activities of -RMB 579,729,228.38 for the first nine months[5] - Cash and cash equivalents decreased by 36.11% to ¥981,992,198.91 from the beginning of the year, primarily due to increased operating expenses[12] - The net cash flow from investing activities was -¥34,168,009.53, an improvement of ¥18,757,333.77 compared to the previous year[16] - Operating cash inflow for the first nine months of 2019 was CNY 3,834,447,316.38, compared to CNY 2,784,422,173.58 in the previous year, indicating a growth of around 38%[38] - Cash flow from financing activities generated a net inflow of CNY 54,707,856.63 in the first nine months of 2019, contrasting with a net outflow of -CNY 43,184,450.26 in the same period of 2018[39] - Cash outflow from investing activities totaled CNY 150,309,058.17, compared to CNY 40,727,668.92 in the previous year, indicating a significant increase in investment spending[41] Shareholder Information - The total number of shareholders at the end of the reporting period was 79,728[8] - The largest shareholder, China Electronics Corporation, held 42.13% of the shares, totaling 208,353,446 shares[10] Operational Changes - The company changed its measurement method for investment properties to fair value, effective January 1, 2019[6] - The company established a wholly-owned subsidiary in Tianjin with a registered capital of ¥50 million, focusing on independent security and military-civilian cooperation projects[18] - The company plans to acquire all minority shareholder equity of its subsidiary for a total price of ¥1.2 million, making it a wholly-owned subsidiary[18] - The company’s subsidiary, Changcheng Software, increased its registered capital from ¥167,174,305 to ¥250,000,000 using undistributed profits of ¥82,825,695[19] - The company has adopted new financial instrument standards effective January 1, 2019, impacting financial reporting[45] Expenses - Total operating costs for Q3 2019 were ¥1,161,884,493.76, compared to ¥1,053,184,659.12 in Q3 2018, indicating an increase of about 10.3%[29] - The company incurred a total operating expense of CNY 4,414,176,544.76 in the first nine months of 2019, compared to CNY 3,321,510,093.96 in the same period of 2018, reflecting an increase of approximately 33%[38] - Research and development expenses for Q3 2019 amounted to approximately ¥294.85 million, up from ¥254.60 million in Q3 2018, reflecting a 15.8% increase[30] - The company’s management expenses for Q3 2019 were approximately ¥109.79 million, an increase from ¥84.63 million in Q3 2018, marking a 29.7% rise[30]

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].