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

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

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

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

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

Financial Performance - The company's operating revenue for 2016 was CNY 4,529,778,511.92, representing a 24.77% increase compared to CNY 3,630,392,092.90 in 2015[20] - The net profit attributable to shareholders for 2016 was CNY 102,306,766.53, a significant increase of 73.15% from CNY 59,086,506.74 in 2015[20] - The basic earnings per share for 2016 was CNY 0.21, up 73.15% from CNY 0.12 in 2015[21] - The weighted average return on equity increased to 5.07% in 2016, up by 2.02 percentage points from 3.05% in 2015[21] - The company reported a significant quarterly net profit of CNY 243,257,999.97 in Q4 2016, contrasting with losses in the first three quarters[23] - The company achieved a revenue of 4.53 billion RMB, representing a year-on-year growth of 24.77%[46] - The net profit attributable to shareholders increased by 73.15% to 102.31 million RMB[46] - Revenue from proprietary software products reached 1.24 billion RMB, up 59% year-on-year[46] Cash Flow and Assets - The net cash flow from operating activities decreased by 87.38% to CNY 53,278,235.74 from CNY 422,086,550.49 in the previous year[20] - The company's total assets at the end of 2016 were CNY 5,967,906,666.14, an 8.06% increase from CNY 5,523,025,679.88 at the end of 2015[20] - The company's cash and cash equivalents at the end of the period amounted to ¥43,824,423.75, primarily restricted due to various guarantees[64] - The company's total assets reached ¥238,447,613.14, with significant portions under restriction due to various borrowings[65] - The ending cash and cash equivalents balance was ¥1,972,227,792.09, a decrease from ¥2,051,430,155.20 at the beginning of the year[170] Investments and R&D - The company’s R&D expenditure increased by 26.55% to 971.77 million RMB[46] - The company's total R&D investment amounted to approximately ¥971.77 million, representing 21.45% of total revenue, with a year-on-year increase of 25.65%[59][60] - The company reported a net loss from investment activities of approximately ¥204.59 million, a decrease of 249.61% compared to the previous year[61] - The company has made significant progress in its self-controlled projects, with all major projects passing acceptance tests in 2016[38] Dividends and Profit Distribution - The company plans to distribute a cash dividend of CNY 0.63 per 10 shares, totaling CNY 31,157,455.27, which accounts for 30.45% of the net profit attributable to shareholders[3] - The cash dividend policy stipulates that at least 10% of the distributable profit will be distributed as cash dividends if the company is profitable[87] - In 2015, the company distributed cash dividends of 0.36 RMB per 10 shares, totaling 17,804,260.15 RMB, which accounted for 30.13% of the net profit attributable to shareholders[88] Market Position and Industry Outlook - The company operates in the software and information technology services industry, which is expected to grow at an average annual rate of over 13% during the "13th Five-Year Plan" period[28] - The company is recognized as a leading IT service provider in China, supported by its status as a core enterprise in the China Electronics Corporation's software sector[32] - The software and information technology services industry in China saw a revenue growth of 14.9% year-on-year, reaching ¥4.85 trillion[66] Corporate Governance and Compliance - The company has maintained compliance with corporate governance regulations, ensuring clear separation of powers among decision-making, supervisory, and execution bodies[143] - The company has not faced any penalties from securities regulatory authorities in the past three years[138] - There were no significant lawsuits or arbitration matters during the reporting period, indicating a stable legal environment for the company[97] Shareholder Information - The company’s controlling shareholder, China Electronics, strictly adhered to the lock-up commitment during the period, resulting in 9,850,546 shares becoming tradable on December 19, 2016[91] - Shareholder Wen Xitang increased his holdings by 2,783,080 shares, raising his ownership from 4.76% to 5.32% of the total issued shares[98] - The total number of ordinary shareholders at the end of the reporting period was 44,160, down from 46,161 at the end of the previous month[120] Employee and Management Structure - The number of R&D personnel was 4,036, accounting for 52.06% of the total workforce[59] - The company has a total of 759,630 RMB in compensation for all directors and senior management during the reporting period[128] - The company has implemented a salary structure based on basic salary plus performance pay for senior management, which is determined by the board based on various factors[138] Risk Management - The company faces risks from emerging technologies and market competition, which may impact its operations[85] - The company has a general risk reserve reported at 56,271,000 RMB, indicating a stable position in risk management[179]

Financial Performance - Operating revenue increased by 32.87% to CNY 2,439,002,872.97 for the period from January to September[5] - Net profit attributable to shareholders was a loss of CNY 140,951,233.44, slightly worse than the loss of CNY 135,735,434.74 in the same period last year[5] - The weighted average return on net assets decreased by 0.08 percentage points to -7.42%[5] - Basic and diluted earnings per share were both CNY -0.29, compared to CNY -0.27 in the same period last year[5] - The company reported a net loss of ¥141,633,538.70 for the third quarter, compared to a loss of ¥92,723,112.11 in the same period last year[32] - The net loss for Q3 2016 was ¥112.81 million, compared to a net loss of ¥64.61 million in Q3 2015, indicating a deterioration of approximately 74.6%[33] - The total comprehensive loss for Q3 2016 was ¥112.73 million, compared to a loss of ¥64.58 million in Q3 2015, reflecting an increase of approximately 74.5%[33] - The company's operating profit for the first nine months of 2016 was a loss of ¥35.42 million, an improvement from a loss of ¥51.27 million in the same period last year[35] Assets and Liabilities - Total assets decreased by 3.22% to CNY 5,345,118,447.57 compared to the end of the previous year[5] - The company's current assets totaled CNY 4,260,421,834.62, down from CNY 4,409,275,808.90 at the start of the year, indicating a decline of approximately 3.37%[22] - Total liabilities stood at CNY 2,753,278,649.35, slightly up from CNY 2,709,547,380.10, indicating a marginal increase of about 1.6%[25] - The company's total equity decreased to ¥1,466,454,808.02 from ¥1,508,243,871.09 at the beginning of the year, a decline of 2.8%[28] - Cash and cash equivalents decreased to CNY 1,224,045,703.77 from CNY 2,068,546,987.95, representing a decline of about 40.7%[22] - Cash and cash equivalents dropped significantly to ¥189,652,359.93 from ¥463,873,655.10 at the beginning of the year, a decrease of 59.1%[27] Cash Flow - The net cash flow from operating activities was negative RMB 919,202,583.98, worsening from negative RMB 459,552,923.12 in the previous year[13] - Operating cash inflow for the first nine months of 2016 was CNY 2,778,919,440.80, an increase of 25.6% compared to CNY 2,213,015,601.95 in the same period last year[38] - Cash inflow from financing activities totaled CNY 706,397,848.00, up from CNY 412,430,144.10 in the previous year, indicating a 71.3% increase[41] - The parent company reported a net cash flow from operating activities of -CNY 195,121,351.36, an improvement from -CNY 290,031,443.07 year-on-year[43] Expenses - The company reported a significant increase in sales expenses, which rose by 88.88% to RMB 236,245,762.62 from RMB 125,075,307.64 year-on-year[10] - The company reported a significant increase in management expenses, which rose by 32.78% to RMB 1,039,392,348.20 from RMB 782,771,007.30 year-on-year[10] - The company's operating costs for Q3 2016 were ¥261.61 million, up from ¥204.32 million in Q3 2015, marking an increase of about 28%[35] Shareholder Information - The total number of shareholders reached 39,387 by the end of the reporting period[8] - The largest shareholder, China Electronics Corporation, holds 45.13% of the shares[8] Investments and Future Plans - The company completed capital increases for subsidiaries, with Shanghai Zhongruan's registered capital increasing to RMB 10 million and Sichuan Zhongruan's to RMB 50 million[15][16] - The company plans to purchase a property in Xi'an for RMB 17,286,301, with the first payment of RMB 6,914,520 already made[18] - The company plans to focus on new product development and market expansion strategies in the upcoming quarters[30]

Financial Performance - The company achieved operating revenue of CNY 1,597,974,095.33, representing a year-on-year increase of 30.47%[14] - The net profit attributable to shareholders was a loss of CNY 54,099,525.60, an improvement of CNY 2,290,66 compared to the previous year[19] - The company reported a total loss of CNY 9,284,940.00 for the period, which is an increase of CNY 1,828,840.00 compared to the previous year[19] - The net loss attributable to the parent company for the first half of 2016 was CNY 54,099,525.60, compared to a net loss of CNY 77,006,145.38 in the same period last year[98] - The comprehensive loss for the first half of 2016 was CNY -84,041,585.88, compared to CNY -107,367,231.51 in the same period last year[99] - The company reported a total profit of ¥15,823,124.35, compared to a total loss of ¥20,317,579.87 in the previous period[101] Cash Flow and Liquidity - The net cash flow from operating activities was negative at CNY -741,882,319.91, indicating increased operational expenditures[21] - The company’s cash flow was significantly impacted by loan repayments and operational expenditures, leading to a substantial decrease in cash reserves[25] - Cash flow from operating activities showed a net outflow of ¥741,882,319.91, worsening from a net outflow of ¥452,660,605.67 in the previous period[104] - The company’s cash and cash equivalents decreased to CNY 286,539,912.18 from CNY 463,873,655.10 at the beginning of the year, representing a decline of 38.2%[94] - The ending cash and cash equivalents balance was ¥286,539,912.18, up from ¥249,796,680.50 in the previous period[108] Assets and Liabilities - Total assets decreased by 10.66% to CNY 4,934,457,520.06 compared to the end of the previous year[14] - The total liabilities decreased to RMB 2,226,964,763.16, down 17.76% from RMB 2,709,547,380.10[92] - The total equity attributable to shareholders of the parent company was RMB 1,906,153,335.00, a decline of 3.56% from RMB 1,976,976,085.28[92] - The total equity at the end of the period is CNY 2,207,263,496.18, down from CNY 2,324,195,560.60, representing a decrease of approximately 5.0%[113] Research and Development - Research and development expenses increased by 35.19% to CNY 447,710,156.91, reflecting a focus on major project investments[21] - R&D expenses totaled ¥447,710,156.91, accounting for 28.02% of operating revenue and 23.49% of net assets, with a year-on-year growth of 35.19%[23] - The company’s R&D spending is primarily focused on core software, information security, and tax-related services[23] Shareholder Information - The total number of shareholders at the end of the reporting period was 42,832[81] - The largest shareholder, China Electronics Corporation, held 223,190,246 shares, representing 45.13% of the total shares, with 9,850,546 shares under lock-up[82] - The second-largest shareholder, Jun Kang Life Insurance, increased its holdings by 17,725,060 shares, holding a total of 17,725,060 shares, which is 3.58% of the total[82] Corporate Governance - The financial report was approved by the board on August 26, 2016, ensuring compliance with corporate governance[120] - The company’s board of directors underwent changes, with several new members elected and others resigning due to work-related reasons[85] Related Party Transactions - The company has ongoing related party transactions with China Electronics Information Industry Group, with expected sales of CNY 15 million and actual sales of CNY 642,340 in the first half of 2016[61] - The company is actively managing its financial relationships with related parties to optimize funding and reduce operational costs[62] Investment and Capital Management - The company has invested in various financial products, including wealth management and fixed-income products, to optimize its financial returns[40] - The company plans to distribute a cash dividend of 0.36 RMB per 10 shares, totaling 17.80 million RMB, which represents 30.13% of the net profit attributable to shareholders for the year[49] Accounting Policies - The accounting policies followed are in accordance with the enterprise accounting standards, ensuring transparency and accuracy in financial reporting[125] - The company has not made any significant changes to its accounting policies or estimates during the reporting period[186] Market Position and Strategy - The company has established itself as a leading comprehensive IT service provider in China, with a complete software industry chain including operating systems, databases, middleware, and security products[35] - The company is actively developing new service businesses such as mobile payments and smart city solutions[35]

Financial Performance - Operating revenue increased by 50.01% to CNY 716,905,006.09 year-on-year[7] - Net profit attributable to shareholders was a loss of CNY 43,914,000.76, an improvement from a loss of CNY 53,869,480.26 in the same period last year[7] - Basic and diluted earnings per share were both CNY -0.09, an improvement from CNY -0.11 in the previous year[7] - The company reported a total comprehensive loss of CNY 71,813,197.87 for Q1 2016, compared to a loss of CNY 76,445,798.85 in the same period last year[30] - The net profit for Q1 2016 reached CNY 15.99 million, compared to a net loss of CNY 12.98 million in Q1 2015, indicating a turnaround in profitability[33] Cash Flow and Liquidity - Net cash flow from operating activities was negative at CNY -545,204,862.45, compared to CNY -232,780,077.41 in the previous year[7] - The company reported a net cash outflow from investing activities of CNY -30.02 million, compared to CNY -4.16 million in the same period last year, suggesting higher investment expenditures[36] - The company incurred total operating costs of CNY 285.19 million, which is an increase from CNY 184.47 million in the previous year, reflecting higher operational expenses[33] - The company received tax refunds amounting to CNY 27.72 million, compared to CNY 12.49 million in the same period last year, contributing positively to cash flow[35] - The company reported a net cash decrease of RMB -178,654,723.03 for the period, slightly better than the previous decrease of RMB -184,594,764.68[39] Assets and Liabilities - Total assets decreased by 9.50% to CNY 4,998,239,747.01 compared to the end of the previous year[7] - The company's cash and cash equivalents decreased to CNY 1,452,325,685.76 from CNY 2,068,546,987.95, representing a decline of about 29.7%[21][23] - The total current liabilities decreased from CNY 2,448,010,860.49 to CNY 2,027,131,102.42, a reduction of approximately 17.2%[22][23] - The total liabilities decreased to CNY 1,099,010,522.33 from CNY 1,334,757,222.66, a reduction of 17.6%[26] - The total equity attributable to shareholders decreased from CNY 1,976,976,085.28 to CNY 1,933,095,760.52, a decline of about 2.2%[23] Shareholder Information - The number of shareholders reached 45,765 by the end of the reporting period[10] - The largest shareholder, China Electronics Corporation, holds 45.13% of the shares[10] Operational Expenses - The operating cost for Q1 2016 was RMB 418,781,784.56, reflecting a 38.79% increase from RMB 301,745,213.71 year-on-year[11] - The company’s sales expenses increased by 80.66%, reaching RMB 70,249,588.84 compared to RMB 38,884,571.09 last year[11] - The company’s management expenses rose by 37.35%, totaling RMB 345,038,971.56 compared to RMB 251,216,708.11 in the same period last year[11] Investment and Future Outlook - The company plans to purchase a property in Xi'an for RMB 17,286,301, with a total area of 4,020.07 square meters at a unit price of RMB 4,300 per square meter[12] - The company forecasts that the cumulative net profit attributable to shareholders may still be a loss, primarily due to significant ongoing investments in key business projects[17] - The company has maintained its commitment to long-term investments despite the potential for short-term losses, indicating a focus on future growth[17]

Financial Performance - The company's operating revenue for 2015 was CNY 3,630,392,092.90, representing a 12.31% increase compared to CNY 3,232,501,718.08 in 2014[22] - The net profit attributable to shareholders for 2015 was CNY 59,086,506.74, a significant increase of 76.16% from CNY 33,541,548.97 in 2014[22] - The net cash flow from operating activities reached CNY 422,086,550.49, up 76.77% from CNY 238,781,289.35 in the previous year[22] - The total assets at the end of 2015 were CNY 5,523,025,679.88, marking a 24.75% increase from CNY 4,427,301,923.86 at the end of 2014[23] - The basic earnings per share for 2015 was CNY 0.12, a 76.16% increase compared to CNY 0.07 in 2014[24] - The weighted average return on equity for 2015 was 3.05%, an increase of 1.29 percentage points from 1.76% in 2014[24] - The company reported a net loss of CNY 31,720,818.72 after deducting non-recurring gains and losses, compared to a loss of CNY 2,118,340.11 in 2014[22] - The total equity attributable to shareholders at the end of 2015 was CNY 1,976,976,085.28, a 3.36% increase from CNY 1,912,632,479.88 at the end of 2014[23] Cash Management - The company reported a significant increase in cash and cash equivalents, rising to ¥2,068,546,987.95, a 44.53% increase compared to the previous period[33] - The company’s total revenue for 2015 reached approximately CNY 3.60 billion, a 36.48% increase compared to the previous year[51] - The net cash flow from operating activities increased by 76.77% to CNY 422.09 million, driven by higher sales collections and the acquisition of a subsidiary[56] - The company reported a remaining undistributed profit of 76,019,947.55 RMB to be carried over to the next year after the 2014 profit distribution[104] Investments and Acquisitions - The company invested CNY 171.24 million in external equity investments during the reporting period, an increase of CNY 151.24 million compared to the previous year[67] - The acquisition of Mai Puhongxin by the company's subsidiary contributed CNY 24.76 million to the net profit attributable to shareholders of the listed company during the reporting period[69] - The company sold its stake in Sichuan Zhongruan for CNY 30.8 million, resulting in an investment gain of CNY 23.28 million, which accounted for 21.14% of the company's total profit[75] - The company’s subsidiary, Zhongruan Information Services, completed the sale of its investment in Shanglin Real Estate, receiving a total of CNY 54.93 million in transfer payments[77] Research and Development - R&D expenditure increased by 12.32% to 767.90 million RMB, reflecting the company's commitment to innovation and project development[47] - The company’s R&D personnel comprised 51.98% of the total workforce, with 3,697 employees dedicated to R&D[54] - The company’s R&D investment ratio was 21.15% in 2015, reflecting a commitment to innovation[96] Market Position and Strategy - The company is positioned as a leading IT service provider in China, with a comprehensive software industry chain including operating systems, databases, and security products[31] - The company is actively expanding into new service areas such as mobile payments and smart city solutions, reflecting its commitment to innovation[34] - The company has formed strategic partnerships with major manufacturers like DELL, HP, and Lenovo to enhance its OEM market presence[39] - The company completed the implementation of the "Golden Tax" Phase III project in 14 provinces, enhancing its position in the tax industry[41] Risk Management - The company faced various risks as outlined in the management discussion and analysis section of the annual report, which investors should pay attention to[8] - The company faced risks from emerging technologies and market competition, which could impact its traditional software and information services[100] - The company aims to upgrade traditional software through new technologies and optimize human resources to address market changes[100] Shareholder Information - The company distributed cash dividends of 0.21 RMB per 10 shares, totaling 10,385,818.42 RMB, which accounted for 30.96% of the net profit attributable to shareholders for the year 2014[104] - The company plans to distribute cash dividends of at least 10% of the distributable profit, contingent on profitability and positive retained earnings[102] - The company’s profit distribution policy allows for mid-term distributions under certain conditions, ensuring flexibility in capital allocation[102] Governance and Management - The company appointed Da Xin Accounting Firm (Special General Partnership) for the 2015 financial report audit, with an audit fee of 770,000 RMB and an internal control audit fee of 230,000 RMB[111] - The company has established a comprehensive performance evaluation system for senior management, linking remuneration directly to operational performance[162] - The independent directors did not raise any objections to the board's proposals during the reporting period, indicating a consensus on governance matters[170] - The company conducted an internal control self-assessment and found no significant deficiencies in its internal controls[174]