Financial Performance - The company's operating revenue for 2022 was ¥2,542,244,067, representing a 0.88% increase compared to ¥2,519,991,125.18 in 2021[22]. - The net loss attributable to shareholders for 2022 was ¥-336,342,720.02, an improvement from a loss of ¥-1,496,069,377.23 in 2021[22]. - The net cash flow from operating activities for 2022 was ¥-342,279,561.35, compared to ¥-98,893,763.56 in 2021[22]. - Total assets at the end of 2022 amounted to ¥4,314,204,935.76, a 7.25% increase from ¥4,022,653,661.49 at the end of 2021[22]. - The company's net assets attributable to shareholders at the end of 2022 were ¥1,459,120,285.28, recovering from a negative net asset position of ¥-1,445,837,025.70 in 2021[22]. - The company's basic earnings per share improved from -1.17 yuan/share in 2021 to -0.12 yuan/share in 2022, marking a significant recovery[23]. - Operating revenue for 2022 increased by 0.88% year-on-year, primarily due to growth in security system integration and operation services[23]. - Net profit attributable to shareholders increased due to gains from bankruptcy reorganization investments[23]. - The weighted average return on equity dropped significantly from 228.26% in 2021 to 20.84% in 2022, a decrease of 207.42 percentage points[23]. Operational Developments - The company completed its judicial reorganization process in 2022, resolving historical debt issues and laying a foundation for future high-quality development[34]. - The company plans to leverage its restructured financial position to pursue future growth opportunities and market expansion[34]. - The company achieved a total operating revenue of 2,542.24 million CNY in 2022, an increase of 22.25 million CNY compared to the previous year[36]. - The overseas security comprehensive operation business generated revenue of 1.538 billion CNY, benefiting from the positive impact of entry and exit policies[36]. - The Hong Kong subsidiary's revenue from intelligent solutions grew by approximately 100% in 2022, indicating a successful transition towards technology integration[38]. - The Thai subsidiary's revenue has recovered to 2019 levels, showing a growth of about 10% compared to that year[39]. - The smart manufacturing business reported revenue of 175 million CNY, primarily from three wholly-owned subsidiaries[40]. - The company is focusing on the development of smart solutions in various sectors, including smart homes and industrial IoT, to enhance market competitiveness[43]. Market and Industry Insights - The global smart manufacturing market size was $214.7 billion in 2020, projected to grow to $384.8 billion by 2025, with a compound annual growth rate of approximately 12.38%[52]. - The Chinese smart manufacturing industry has achieved a production value of 1.5 trillion yuan, supported by national policies and rapid growth[53]. - The global smart city technology investment is expected to reach $189.46 billion in 2023, with the Chinese market size projected to be $38.92 billion[55]. - The smart city market in China is expected to grow from 14.9 trillion yuan in 2020 to 25 trillion yuan by 2022, reflecting a year-on-year growth of 25.5%[115]. - The smart hardware industry in China is projected to reach a market size of 2 trillion yuan by 2026, with a compound annual growth rate of 20% from 2020 to 2026[113]. Risk Management and Compliance - The company has outlined various market risks, technical risks, and exchange rate risks in its report[8]. - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[5]. - The company has established a comprehensive internal control system covering governance, finance, investment, and operations, ensuring effective implementation through training and audits[179]. - There were no significant deficiencies in internal control during the reporting period, indicating a robust compliance framework[179]. - The company has implemented measures to ensure the independence of its operations from controlling shareholders, with no significant changes in competitive conditions reported[141]. Corporate Governance - The board of directors consists of 9 members, including 3 independent directors, complying with legal and regulatory requirements[139]. - The supervisory board is composed of 3 members, including 1 employee representative, adhering to legal and regulatory standards[140]. - The company has established performance evaluation mechanisms linking executive compensation to business performance, ensuring transparency in senior management appointments[140]. - The company has a structured remuneration management system for its directors and senior management, ensuring transparency and adherence to standards[154]. - The company has implemented a salary management principle that emphasizes fairness, incentive, value, competition, and economic principles to ensure a competitive compensation structure[169]. Strategic Initiatives - The company is exploring new business directions by integrating technology services, such as collaborating on life sensors and disinfection robots[69]. - The company aims to leverage the synergy between domestic and overseas operations to explore new market opportunities and maintain competitive advantages[75]. - The company plans to optimize resource allocation and improve management efficiency by closing underperforming subsidiaries and consolidating operations[124]. - A unified project risk management system is being implemented across subsidiaries to enhance project quality and risk control[126]. - The company is establishing four central units (procurement, marketing, technology, and product) to enhance management capabilities and core competitiveness[127]. Legal and Regulatory Matters - As of March 17, 2023, the company is facing 7,985 lawsuits related to securities false statements, with a total claim amount of approximately RMB 1.15 billion[132]. - The company’s controlling shareholder, Zhongheng Huizhi, is undergoing bankruptcy reorganization, which poses risks of changes in shareholder equity and control[133]. - The company’s stock has been under delisting risk warning since May 6, 2022, due to negative net assets reported at the end of 2021[136]. - The company has resolved significant historical debt issues at the parent company level, eliminating debt risks for the listed company, but still faces challenges with historical accounts receivable and supplier lawsuits[130]. Employee and Training Initiatives - The total number of employees at the parent company is 69, while the main subsidiaries employ 11,697, resulting in a total of 11,766 employees[167]. - The company has a training plan focusing on internal control management, risk control management, and information disclosure management to enhance operational efficiency[170]. - The company has a professional training program for security personnel, enhancing talent acquisition and industry recognition[70].

Financial Performance - The company's operating revenue for Q3 2022 was ¥591,267,877.86, representing a year-over-year increase of 0.65%[6]. - The net profit attributable to shareholders for Q3 2022 was -¥297,446,028.47, with a year-to-date net profit of -¥814,176,346.37, indicating a significant loss[6]. - Total operating revenue for the first three quarters of 2022 was CNY 1,790,324,827.50, a decrease of 6.57% compared to CNY 1,916,296,204.47 in the same period of 2021[41]. - The company reported a net loss of CNY 305,586,299.83 for the third quarter of 2022, compared to a loss of CNY 162,960,850.73 in the same quarter of 2021[44]. - The total comprehensive income for the third quarter of 2022 was -778,509,424.15 RMB, compared to -357,385,484.66 RMB in the previous year, reflecting a worsening financial position[50]. - Basic and diluted earnings per share for the third quarter of 2022 were both -0.63 RMB, compared to -0.25 RMB in the same quarter of 2021[50]. Assets and Liabilities - The total assets at the end of Q3 2022 were ¥3,841,355,368.42, a decrease of 4.51% compared to the end of the previous year[10]. - As of September 30, 2022, the company's total current assets amounted to RMB 2,338,414,091.90, a decrease of 5.2% from RMB 2,466,644,015.83 on December 31, 2021[35]. - The company's total liabilities reached CNY 6,064,989,519.24, compared to CNY 5,467,778,388.16 in the previous year, marking an increase of 10.91%[40]. - The company’s equity attributable to shareholders was reported at CNY -2,224,378,536.33, worsening from CNY -1,445,837,025.70 year-over-year[40]. - Non-current liabilities totaled CNY 639,255,145.98, a decrease from CNY 824,817,719.75 year-over-year[40]. Cash Flow - The company reported a net cash flow from operating activities of ¥28,054,265.56 for the year-to-date period[10]. - Cash flow from operating activities for the first nine months of 2022 was 28,054,265.56 RMB, a recovery from a negative cash flow of -116,928,269.23 RMB in the same period of 2021[56]. - Total cash inflow from operating activities for the first nine months of 2022 was 2,252,365,914.86 RMB, up from 2,126,383,810.63 RMB in the previous year[52]. - Cash outflow from operating activities for the first nine months of 2022 was 2,224,311,649.30 RMB, slightly down from 2,243,312,079.86 RMB in the same period of 2021[56]. - The cash and cash equivalents at the end of the third quarter of 2022 were 334,275,963.99 RMB, down from 367,117,287.97 RMB at the end of the same quarter in 2021[58]. Legal and Restructuring Issues - The company is currently facing 7,986 lawsuits related to securities false statements, with a total claim amount of RMB 1,542,273,222.52[22]. - The company entered a pre-restructuring process on July 1, 2022, and the pre-restructuring plan was approved by creditors on October 2, 2022[23]. - The company has significant debt risks, with overdue loans and bond principal amounts being high, leading to substantial repayment pressure[24]. - The company is at risk of being declared bankrupt if the restructuring fails, which would lead to termination of its stock listing[29]. - The company has not yet received a ruling from the court regarding its restructuring application, leaving the process in a state of uncertainty[27]. - The pre-restructuring creditors' meeting results do not guarantee the outcome of the formal restructuring process, which remains uncertain[31]. Operational Challenges - The company experienced a decline in gross margin due to the impact of the pandemic, leading to increased costs and expenses[14]. - The report indicates that the company is facing challenges related to litigation and increased financial costs, which have affected overall profitability[14]. - The company has not disclosed any new product developments or market expansion strategies in this report[19]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 52,920, with the largest shareholder holding 41.15% of the shares[16].

Financial Performance - The company reported a total revenue of RMB 500 million for the first half of 2022, representing a year-on-year increase of 15%[17]. - The company's operating revenue for the first half of the year was CNY 1,199,056,949.64, a decrease of 9.77% compared to the same period last year[24]. - The net profit attributable to shareholders was CNY -516,730,317.90, representing a decline of 226.75% year-over-year, primarily due to decreased gross profit and increased litigation compensation expenses[25]. - The net cash flow from operating activities increased by 232.53% to CNY 112,766,482.05, driven by an increase in client-held cash and collection of payments for previously advanced projects[25]. - The company's total operating revenue for the first half of 2022 was CNY 1,199,056,949.64, a decrease of approximately 9.7% compared to CNY 1,328,834,484.70 in the same period of 2021[190]. - The net loss for the first half of 2022 was CNY 516,647,845.55, compared to a net loss of CNY 158,142,411.94 in the first half of 2021, indicating a significant increase in losses[193]. - The total comprehensive income for the period was CNY -497,421,293.65, compared to CNY -181,662,425.04 in the previous year, showing a significant increase in comprehensive losses[195]. User and Market Growth - User data indicates an increase in active users by 20% compared to the same period last year, reaching 1.2 million active users[17]. - The company has set a revenue guidance of RMB 1.2 billion for the full year 2022, which reflects a growth target of 10%[17]. - New product launches in the security technology sector contributed to a 25% increase in sales volume during the reporting period[17]. - The company is expanding its market presence in Southeast Asia, with plans to open three new offices by the end of 2022[17]. Research and Development - Research and development expenses increased by 30% to RMB 50 million, focusing on advanced security solutions[17]. - Research and development expenses for the first half of 2022 were CNY 28,165,250.81, compared to CNY 31,267,818.90 in the same period of 2021[193]. Operational Risks and Challenges - The report highlights potential risks including market, technology, and exchange rate risks, which are detailed in the management discussion section[8]. - The company acknowledges market risks due to intensified competition in the security system integration and IoT product manufacturing sectors, which could affect its market position and share[65]. - The company is exposed to technological risks as it operates in a technology-intensive industry, where misjudgments in market trends or R&D directions could hinder its competitive edge[66]. - The company is facing operational risks due to the complexity and long project cycles in its smart city system integration business, which may be influenced by macroeconomic and regulatory changes[67]. - The company is experiencing litigation risks from a large number of ongoing lawsuits, which could increase operational costs and negatively impact financial results[71]. Debt and Financial Obligations - The company faces significant debt pressure with overdue loans and bonds amounting to a high principal, which may lead to increased financial costs and potential litigation risks if repayments are not made on time[68]. - The company has a total of 1,100,000,000 yuan in overdue bonds, with the reason for non-repayment being the company's inability to repay[160]. - The company is actively communicating with bondholders regarding the resolution plan for the overdue bonds[160]. - The company has signed debt settlement agreements totaling 556,506,000 yuan with bondholders as of December 31, 2019[161]. - The company's long-term credit rating is maintained at "C" by the rating agency, indicating a high level of credit risk[162]. Shareholder and Governance Matters - The board of directors has confirmed that all members attended the meeting and approved the report[6]. - The company held its first extraordinary general meeting of shareholders on January 27, 2022, where three proposals were approved, including the election of new directors and independent directors[80]. - The company did not propose any profit distribution or capital reserve transfer for the half-year period, with no dividends or stock bonuses declared[84]. - The company completed the election of its 11th board of directors and supervisory board on January 27, 2022, with new appointments including Zhang Min as a director and Wang Xu as the chairman of the supervisory board[83]. Subsidiaries and Investments - Major subsidiaries include Zhong'an Xian Technology Co., Ltd., which reported total assets of 3,060,933,629.41 RMB and a net loss of 24,600,314.70 RMB[56]. - The company has a significant investment in Zhong'an Xian (Shanghai) Investment Management Co., Ltd., which has total assets of 199,250,016.58 RMB and a net loss of 3,744.78 RMB[58]. - The company is involved in various sectors, including engineering installation and manufacturing, with a focus on security systems and smart technology[56]. Legal and Compliance Issues - As of the end of the reporting period, the company has received a total of 7,788 civil lawsuits related to securities false statements, with claims amounting to approximately RMB 595.8 million, indicating substantial legal exposure[71]. - The company has faced legal issues that have led to the freezing of shares held by Zhongheng Huizhi, affecting the distribution of compensation shares[100]. - The company has initiated a civil lawsuit to protect the rights of minority shareholders regarding compensation shares, with a court ruling confirming that 48,691,587 shares belong to registered shareholders[102]. Environmental and Social Responsibility - The company reported that there were no significant changes in its environmental protection measures during the reporting period[89]. - The company has not disclosed any significant related party transactions or changes in ongoing transactions during the reporting period[120].

Financial Performance - The company's operating revenue for 2021 was ¥2,519,991,125.18, a decrease of 16.40% compared to 2020[32]. - The net profit attributable to shareholders for 2021 was -¥1,496,069,377.23, representing a decline of 720.51% year-over-year[32]. - The net cash flow from operating activities decreased by 651.20% to -¥98,893,763.56 in 2021 compared to the previous year[32]. - The net assets attributable to shareholders dropped by 1,661.18% to -¥1,445,837,025.70 at the end of 2021[32]. - Basic and diluted earnings per share for 2021 were both -¥1.17, a decrease of 735.71% from the previous year[32]. - The weighted average return on equity increased by 309.67% to 228.26% in 2021, despite the net loss[33]. - The company reported a total asset value of ¥4,022,653,661.49 at the end of 2021, down 13.11% from 2020[32]. - The company experienced a significant increase in credit impairment losses and asset impairment losses compared to the previous year, impacting profitability[32]. Audit and Compliance - The company received an unqualified audit report from Dahua Accounting Firm, with emphasis on significant uncertainties regarding its ability to continue as a going concern[7]. - The company has no non-operating fund occupation by controlling shareholders or related parties[11]. - The company has no violations of decision-making procedures regarding external guarantees[11]. - The company’s financial report was declared to be true, accurate, and complete by its management team[8]. - The company has maintained transparent information disclosure practices, ensuring all shareholders have equal access to information[168]. - The company has not faced any penalties from securities regulatory agencies in the past three years[192]. Corporate Governance - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with legal requirements[166]. - The company has implemented a performance evaluation mechanism linking management compensation to business performance[166]. - The company held two shareholder meetings in 2021, adhering to legal and regulatory requirements for proper governance[175]. - The controlling shareholder has not interfered with the company's decision-making processes, maintaining operational independence[165]. - The company has a board of directors with a mix of experienced professionals from various sectors, enhancing its governance structure[180]. - The company has independent directors who attended all board meetings, ensuring compliance with governance standards[196]. Strategic Initiatives - The company plans to focus on improving operational efficiency and reducing costs in response to the financial challenges faced in 2021[32]. - The company is exploring new business opportunities and integrating technology services to enhance its operational capabilities[48]. - The company aims to expand its international business by providing comprehensive security solutions to governments, public facilities, and large enterprises in regions like Hong Kong, Macau, and Thailand[60]. - The company is committed to becoming a global leader in security operations and smart city system integration by leveraging its experience and advanced technologies[138]. - The company intends to strengthen cost control and operational efficiency, while exploring new business opportunities in electronic security and aviation sectors[140]. Research and Development - The company has developed 234 patented technologies, including 120 invention patents, showcasing its strong R&D capabilities[76]. - Research and development expenses increased by 6.20% to CNY 60.75 million, reflecting ongoing investment in innovation[85]. - The company is focusing on enhancing its research and development capabilities to keep pace with technological advancements in its industry[144]. Market and Business Environment - The global security services market is projected to grow from approximately $63.91 billion in 2021 to $122.66 billion by 2028, with a CAGR of 10.6% from 2022 to 2028[56]. - The company recognizes the ongoing impact of the COVID-19 pandemic on project timelines and cash flow, affecting the smart city system integration industry[137]. - The company reported that the demand for comprehensive security services has increased significantly due to complex security situations in regions along the "Belt and Road" initiative[133]. Financial Challenges - The company faces significant debt repayment pressure, with overdue loans and bonds posing risks to its financial stability[157]. - The controlling shareholder, Zhongheng Huizhi, has applied for bankruptcy reorganization due to significant liquidity issues and inability to repay debts, which may affect the company's actual control[161]. - The company has received a reorganization application from creditors, indicating a risk of bankruptcy if the court accepts the application[162]. - The company is currently involved in multiple legal proceedings, with a total of 4,830 cases related to securities false statements, amounting to approximately RMB 386.82 million in claims[158]. Operational Developments - The company launched several new products, including temperature measurement access control and disinfection robots, to adapt to pandemic conditions[48]. - The company upgraded its ERP system and emphasized operational management to improve service quality and reduce costs during the pandemic[48]. - The company has established deep cooperation with technology firms to enhance its smart security solutions and data interoperability[51]. - The intelligent transportation business utilizes IoT and big data technologies to improve traffic management and public safety, with successful projects in multiple cities[69]. Compensation and Remuneration - The total pre-tax compensation for the chairman and president, Wu Bowen, was CNY 700,800[178]. - The total pre-tax compensation for the executive vice president, Cha Lei, was CNY 901,200[178]. - The total pre-tax compensation for the board secretary, Li Kai, was CNY 633,000[178]. - The total pre-tax compensation for the supervisor, Li Shicheng, was CNY 467,700[178]. - The total pre-tax compensation for the independent director, Yu Yumia, was CNY 200,000[178]. - The total pre-tax compensation for the independent director, Lu Wei, was CNY 200,000[178]. - The total pre-tax compensation for the independent director, Xiang Yan, was CNY 0[178]. - The total remuneration for all directors, supervisors, and senior management personnel at the end of the reporting period amounted to 7.3615 million yuan[190].

Financial Performance - The company's operating revenue for Q1 2022 was ¥530,517,960.41, representing a decrease of 19.75% compared to the same period last year [6]. - The net profit attributable to shareholders of the listed company was -¥88,639,776.12, a decline of 40.62% year-on-year [6]. - Basic earnings per share were -¥0.07, reflecting a decrease of 40.00% compared to the previous year [8]. - The company's net profit for the first quarter of 2022 was -88,561,027.89 RMB, compared to -63,035,578.12 RMB in the same period of 2021, representing an increase in net loss of approximately 40.5% [36]. - Operating profit for the first quarter was -78,926,972.77 RMB, worsening from -48,602,335.96 RMB year-over-year [36]. - The total comprehensive income for the period was -87,798,774.72 RMB, compared to -66,097,482.19 RMB in the same quarter of the previous year [38]. Cash Flow and Liquidity - The net cash flow from operating activities increased by 146.69%, amounting to ¥27,382,800.95, primarily due to a reduction in cash paid for goods [6]. - The net cash flow from operating activities was $27.38 million, a significant improvement compared to a net outflow of $58.64 million in the previous period, indicating a recovery in operational efficiency [42]. - Cash outflows from operating activities totaled $780.74 million, down from $890.71 million, reflecting a reduction in operational costs [42]. - The cash and cash equivalents at the end of the period increased to $410.70 million from $324.84 million, showing a stronger liquidity position [42]. - Cash received from sales of goods and services was 770,301,168.73 RMB, up from 720,592,282.55 RMB, indicating an increase of approximately 6.5% [40]. - Cash received from investment activities rose to $40.31 million from $10.52 million, demonstrating enhanced investment returns [42]. Assets and Liabilities - Total assets at the end of the reporting period were ¥3,880,035,223.56, down 3.55% from the end of the previous year [8]. - Total liabilities decreased to RMB 5,412,958,724.95 from RMB 5,467,778,388.16, a reduction of 1.0% [32]. - Non-current assets totaled RMB 1,535,251,519.35, down from RMB 1,556,009,645.66, a decrease of 1.3% [30]. - The equity attributable to shareholders of the listed company decreased by 6.08% to -¥1,533,714,548.65 [8]. Legal and Regulatory Issues - The company is facing 4,830 civil lawsuits related to securities false statements, with a total claim amount of approximately 386.82 million RMB [18]. - Zhongheng Huizhi has applied for bankruptcy reorganization due to significant liquidity issues and inability to repay debts, with the application currently under review by the court [24]. - The company has received a notice from the China Securities Regulatory Commission regarding the conclusion of an investigation into its previous actions [18]. - The company is currently under a risk warning for potential delisting due to its financial condition [19]. - As of the end of 2021, the company's audited net assets were -1,445.84 million RMB, which may lead to a delisting risk if financial indicators do not improve in 2022 [19]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 57,785 [13]. - The actual controller of the company, Mr. Tu Guoshen, holds 527,977,838 shares through Zhongheng Huizhi, accounting for 41.15% of the total share capital [20]. - Zhongheng Huizhi has pledged 479,098,000 shares, and these shares are currently subject to judicial freezing, creating uncertainty regarding their release for debt repayment or refinancing [20]. - The company has not disclosed any related party relationships among its major shareholders, nor whether they are acting in concert [20]. Operational Efficiency - The company's cash flow management strategies are being evaluated to improve liquidity and operational efficiency moving forward [29]. - Research and development expenses decreased to 12,278,938.56 RMB from 16,440,266.16 RMB, a reduction of approximately 25.5% [36]. - Sales expenses increased to 12,343,526.18 RMB from 11,714,134.39 RMB, marking an increase of about 5.4% [36]. - Financial expenses increased to 48,387,988.90 RMB from 42,595,535.04 RMB, reflecting an increase of about 11.8% [36].

Financial Performance - The company's operating revenue for Q3 2021 was ¥587,461,719.77, a decrease of 47.01% compared to the same period last year[6] - The net profit attributable to shareholders was -¥160,116,954.99, representing a decline of 123.79% year-over-year[6] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥68,282,429.47, down 43.14% from the previous year[6] - The basic and diluted earnings per share for the current period were both -¥0.12, a decrease of 100.00% compared to the same period last year[10] - Net profit for the third quarter of 2021 was CNY -318,083,727.31, compared to CNY -256,904,739.59 in the same quarter of 2020, indicating a worsening of 24%[37] - Basic and diluted earnings per share for the third quarter were both CNY -0.25, compared to CNY -0.20 in the previous year[39] - The total comprehensive income for the third quarter was CNY -357,385,484.66, compared to CNY -272,906,351.41 in the same quarter of 2020[37] Assets and Liabilities - The total assets at the end of the reporting period were ¥4,608,898,989.22, a slight decrease of 0.45% from the end of the previous year[10] - As of September 30, 2021, the company's total assets amounted to RMB 4,608,898,989.22, a slight decrease from RMB 4,629,666,515.76 at the end of 2020[24] - The company's current liabilities totaled RMB 3,467,733,547.40, compared to RMB 3,396,038,718.75 in the previous year, indicating an increase in short-term financial obligations[30] - The company's total liabilities reached RMB 4,873,672,462.94, up from RMB 4,537,054,504.82, suggesting an increase in overall financial obligations[30] - The total liabilities and equity amounted to CNY 4,608,898,989.22, slightly down from CNY 4,629,666,515.76[33] - The company reported a total of 2,556,106,734.79 RMB in current assets, a decrease from 2,553,858,303.97 RMB[47] - The total liabilities were 4,200,000,000.00 RMB, reflecting a stable financial position[49] - Total liabilities amounted to 4,537,054,504.82, a decrease of 21,620,207.76 from the previous period[52] Cash Flow - The net cash flow from operating activities for the year-to-date was -¥116,928,269.23, a decrease of 138.28% year-over-year[6] - Cash flow from operating activities showed a net outflow of CNY -116,928,269.23, compared to CNY -49,071,030.18 in the same period of 2020[41] - Net cash flow from investment activities was -34,056,357.11 RMB, a significant decrease compared to 119,796,114.63 RMB in the previous period[43] - Cash inflow from financing activities totaled 857,513,186.57 RMB, up from 569,193,402.77 RMB year-over-year[43] - The net cash flow from financing activities improved to 139,186,007.95 RMB, compared to a negative flow of -28,081,850.75 RMB in the prior period[43] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 59,121[14] - The largest shareholder, Shenzhen Zhongheng Huizhi Investment Co., Ltd., held 41.15% of the shares, totaling 527,977,838 shares[14] Legal and Regulatory Issues - The company is currently involved in 2,346 civil lawsuits related to securities false statements, with total claims amounting to RMB 776,596,949.02[18] - The company reported a significant amount of overdue loans and bonds, facing substantial repayment pressure, which may negatively impact future operations and performance if not managed properly[22] Government Support - The company received government subsidies totaling ¥1,234,426.06 during the current period, which is a decrease compared to previous periods[12] Debt Management - The company is actively working on measures to mitigate debt risks, which may include restructuring and improving cash flow management[22] - The company's long-term borrowings increased to RMB 744,158,204.16 from RMB 625,870,459.57, indicating a rise in long-term debt obligations[30] Research and Development - Research and development expenses increased to CNY 42,961,224.72 from CNY 39,087,797.57, representing an increase of 7.2%[34] Other Income - Other income rose to CNY 6,951,660.22 from CNY 4,010,392.22, marking a growth of 73.5%[34] Accounting Changes - The company adopted new leasing standards effective January 1, 2021, adjusting financial statement items accordingly[52] - The company did not adjust comparative period data for the new leasing standards implementation[52]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥1,328,834,484.70, representing a 30.96% increase compared to ¥1,014,688,966.38 in the same period last year[27]. - The net profit attributable to shareholders of the listed company was -¥158,142,411.94, an improvement of 14.68% from -¥185,358,209.45 in the previous year[27]. - The net cash flow from operating activities was -¥85,089,380.04, which is a 32.28% improvement compared to -¥125,653,886.68 in the same period last year[27]. - The company reported a net profit excluding non-recurring gains and losses of -¥130,737,159.02, which is a 7.90% improvement from -¥141,945,808.84 in the same period last year[27]. - The company reported a net loss of ¥257,342,279.55 for the first half of 2021, compared to a loss of ¥135,303,229.49 in the same period of 2020[174]. - The total profit for the first half of 2021 was a loss of CNY 151,622,297.88, improving from a loss of CNY 179,323,019.18 in the same period of 2020[178]. - The total comprehensive income attributable to the parent company's owners for the first half of 2021 was CNY -181,662,425.04, compared to CNY -179,493,160.11 in the previous year[180]. Assets and Liabilities - Total assets as of the end of the reporting period were ¥4,617,929,934.67, showing a slight decrease of 0.25% from ¥4,629,666,515.76 at the end of the previous year[27]. - The company's total liabilities increased from CNY 4,537,054,504.82 to CNY 4,706,980,348.77, an increase of about 3.74%[169]. - The debt-to-asset ratio increased to 101.93%, up from 98.00%, mainly due to an increase in company liabilities[159]. - The company's equity attributable to shareholders decreased from CNY 92,612,010.94 to CNY -89,050,414.10, indicating a significant decline[169]. - Current liabilities totaled ¥1,997,575,874.30, an increase of 6.45% from ¥1,876,450,229.47 in the previous period[174]. - Non-current liabilities increased to ¥571,759,435.08, up from ¥533,908,404.06, indicating a growth of 7.09%[174]. Cash Flow - The net cash flow from operating activities for the first half of 2021 was -85,089,380.04 RMB, an improvement from -125,653,886.68 RMB in the same period of 2020[186]. - Cash inflow from financing activities increased significantly to 702,192,714.06 RMB from 344,023,370.85 RMB in the first half of 2020[186]. - The net cash flow from financing activities improved to 116,463,536.79 RMB compared to 88,231,122.94 RMB in the same period last year[186]. - The ending balance of cash and cash equivalents was 387,230,728.03 RMB, a decrease from 348,723,427.95 RMB year-over-year[186]. Research and Development - R&D expenses increased by 22.62% compared to the same period last year, primarily due to increased investment in research and development[46]. - Research and development expenses increased to ¥31,267,818.90, representing a rise of 22.06% from ¥25,499,315.48 in the first half of 2020[174]. Management and Strategy - The company plans to enhance its internal management and increase investment in technology research and development to improve operational performance[37]. - The company plans to enhance its market expansion strategies and invest in new product development to drive future growth[186]. - The company is actively exploring partnerships with local enterprises in Australia to secure more government bidding projects[37]. Shareholder and Equity Information - The largest shareholder, Shenzhen Zhongheng Huizhi Investment Co., Ltd., holds 527,977,838 shares, representing 41.15% of the total shares[128]. - The company has a total guarantee amount of RMB 1,080,363,503.27, which accounts for 1,166.55% of the company's net assets[121]. - The company has 60,521 common shareholders as of the end of the reporting period[127]. Legal and Compliance - The company has not reported any significant litigation or arbitration matters during the reporting period[101]. - The company has not disclosed any significant environmental or social responsibility updates during the reporting period[82]. - The company has not reported any progress on employee stock ownership plans or other incentive measures[79]. Other Financial Metrics - The basic and diluted earnings per share were both CNY -0.12, an improvement of 14.29% from CNY -0.14 in the same period last year[28]. - The company's cash interest coverage ratio improved to -3.56 from -3.19, reflecting a decrease in cash interest expenses[160]. - The company's EBITDA interest coverage ratio improved to -0.26 from -0.67, indicating an increase in operating profit[160].

Financial Performance - The net assets attributable to shareholders decreased by 71.37% compared to the end of the previous period, primarily due to losses in net profit during the current period[11]. - Operating revenue increased by 36.66% year-on-year, reaching approximately ¥661.07 million, attributed to the recovery of business activities as the impact of the pandemic lessened[11]. - The net profit attributable to shareholders was a loss of approximately ¥63.04 million, an improvement of 42.54% compared to the previous year's loss[11]. - Basic and diluted earnings per share improved by 44.44%, both reported at -¥0.05 per share, reflecting increased revenue and reduced penalty expenses[11]. - The company reported a net loss of RMB 2,458,815,118.49, compared to a loss of RMB 2,395,779,540.37 in the previous period[69]. - The total comprehensive income for Q1 2021 was -¥66,097,482.19, compared to -¥133,203,214.65 in Q1 2020[80]. - The net profit for Q1 2021 was -¥63,035,578.12, an improvement from -¥109,700,810.87 in Q1 2020[80]. - The net profit for Q1 2021 was -¥44,995,463.55, an improvement compared to -¥56,185,837.53 in Q1 2020[86]. Assets and Liabilities - The total assets at the end of the reporting period were approximately ¥4.58 billion, a decrease of 1.17% from the end of the previous year[11]. - The company reported a decrease in cash and cash equivalents by 11.04% to approximately ¥446.98 million, mainly due to increased procurement payments[20]. - The company’s total liabilities decreased by 10.06% in accounts payable to CNY 586,946,777.96 from CNY 652,615,296.47[23]. - Current assets totaled RMB 2,472,880,768.04, a decrease of 3.25% from RMB 2,556,106,734.79 as of December 31, 2020[64]. - Total liabilities amounted to RMB 4,549,017,544.81, slightly up from RMB 4,537,054,504.82, indicating a marginal increase of 0.03%[69]. - The total assets decreased to RMB 4,575,532,073.56 from RMB 4,629,666,515.76, a decline of 1.17%[67]. - The company’s long-term borrowings increased to ¥54,483,500.20 in Q1 2021 from ¥52,530,493.27 in Q1 2020[75]. - Current liabilities totaled approximately $3.40 billion, with a slight increase of $84,477.76 from the previous period[98]. Cash Flow - The net cash flow from operating activities improved by 74.05%, amounting to a loss of approximately ¥58.64 million, due to increased sales collections and temporary cash management for clients[11]. - The cash flow from operating activities for Q1 2021 was -¥58,644,653.41, compared to -¥225,976,663.50 in Q1 2020, indicating a significant reduction in cash outflow[89]. - The company reported cash inflows from operating activities totaling ¥96,013,457.32, compared to ¥42,013,967.26 in Q1 2020, indicating a year-over-year increase of approximately 128.5%[91]. - The cash outflows related to operating activities were ¥12,039,679.42, significantly lower than ¥47,750,227.02 in the previous year, marking a decrease of about 74.8%[91]. - The cash flow from investing activities for Q1 2021 was -¥17,526,687.11, compared to ¥28,990,030.35 in Q1 2020[89]. - The cash flow from financing activities for Q1 2021 was ¥11,360,313.59, a decrease from ¥136,451,467.32 in Q1 2020[89]. Shareholder Information - The company had a total of 60,900 shareholders at the end of the reporting period, with the largest shareholder holding 41.15% of the shares[19]. - Zhongheng Huizhi is required to compensate for unfulfilled profit commitments, with a total of 176,751,344 shares to be compensated due to unmet performance forecasts from 2014 to 2016[48]. - The controlling shareholder, Zhongheng Huizhi, voluntarily extended the lock-up period for its shares multiple times, with the latest extension set to December 31, 2021, covering a total of 527,977,838 shares[47]. - The company is closely monitoring the high proportion of pledged and frozen shares held by the controlling shareholder and is actively pursuing the resolution of compensation share matters[50]. Research and Development - R&D expenses surged by 55.70% to CNY 16,440,266.16, compared to CNY 10,558,913.96, driven by increased investment in R&D projects[23]. - Research and development expenses for Q1 2021 were ¥16,440,266.16, compared to ¥10,558,913.96 in Q1 2020, reflecting a 55.8% increase[78]. Legal Matters - The company has initiated legal proceedings to confirm that certain shares held in a special account belong to registered shareholders, not to Zhongheng Huizhi[36]. - The company has initiated legal proceedings to confirm that the shares held in a special account for compensation do not belong to Zhongheng Huizhi, but to the registered shareholders of the company[51]. - The company reported that the special account containing 48,691,587 shares for compensation has been frozen due to legal issues involving Zhongheng Huizhi, delaying the compensation process[51].

Financial Performance - The company's operating revenue for the period was approximately ¥3.01 billion, representing a 4.16% increase compared to the previous year[27]. - The net profit attributable to shareholders decreased by 372.72% year-on-year, amounting to approximately -¥182.34 million, primarily due to revenue declines in Australia, Hong Kong, and Macau caused by the pandemic[28]. - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 78.80%, totaling approximately -¥392.98 million[28]. - The net cash flow from operating activities decreased by 87.61%, amounting to approximately ¥17.94 million, mainly due to reduced sales collections[28]. - The net assets attributable to shareholders decreased by 70.44% year-on-year, totaling approximately ¥92.61 million, influenced by the pandemic's impact on business operations[28]. - Basic and diluted earnings per share dropped by 380.00%, resulting in -¥0.14 per share[31]. - The weighted average return on equity was -81.41%, a decline of 108.39% compared to the previous year[31]. - The company reported a non-recurring loss from the disposal of non-current assets amounting to approximately -¥104.63 million[33]. - The company achieved a total revenue of RMB 3.01 billion in 2020, representing a 4.16% increase compared to the previous year[82]. - The net profit attributable to shareholders was a loss of RMB 182.34 million, indicating significant challenges faced during the year[82]. Audit and Compliance - The company reported a standard unqualified audit opinion from Dahua Certified Public Accountants[8]. - The company’s financial report for 2020 is guaranteed to be true, accurate, and complete by the responsible persons including the CEO and accounting manager[8]. - The company’s board of directors was fully present at the board meeting[7]. - The company has not faced any risks of suspension or termination of listing during the reporting period[187]. - The company has not reported any significant changes in accounting policies or estimates during the reporting period[183]. Risks and Challenges - The company faced various risks including market, technology, and exchange rate risks, which are detailed in the report[11]. - The company recognizes potential risks, including exchange rate fluctuations that could impact export competitiveness and direct foreign exchange gains or losses[150]. - The company faces market risks due to intensified competition in the security system integration and IoT manufacturing sectors, which could affect its market position if not managed properly[151]. - The company acknowledges technology risks associated with rapid advancements in cloud computing, big data, and artificial intelligence, which may impact its competitive edge if it fails to keep pace with market demands[152]. - The company faces significant debt risk with overdue loans and bond principal amounts, which may lead to increased financial costs and operational impacts if not managed properly[154]. Business Operations and Strategy - The company operates in the integrated security services and smart hardware manufacturing sectors, providing comprehensive solutions across various industries including finance, healthcare, and transportation[40]. - The company has established significant subsidiaries in Hong Kong, Macau, Thailand, and Australia, expanding its market presence in "Belt and Road" countries[40]. - The company integrates high-quality project resources from its subsidiaries in mainland China, focusing on three key areas: "Smart Transportation," "Smart Healthcare," and "Network Information Security"[41]. - The smart hardware manufacturing segment develops and produces IoT sensors and smart home products, with strict quality control and partnerships with well-known brands like Huawei and Vanke[41]. - The smart transportation business utilizes IoT, cloud computing, and big data to enhance traffic management capabilities, with successful applications in multiple projects across various cities[42]. - The smart healthcare solutions include hospital information systems and safety systems, successfully implemented in several hospitals across different provinces[45]. - The network information security segment provides comprehensive solutions for institutions like government and banks, with successful applications in various security projects[46]. - The company has established a comprehensive public safety platform to enhance urban and rural safety management through various construction models[47]. - The international business focuses on security operations services in regions like Hong Kong, Macau, Australia, and Thailand, providing logistics and security solutions[51]. - The company is actively involved in the smart city system integration industry, benefiting from the "new infrastructure" initiatives launched in response to the COVID-19 pandemic[58]. Subsidiaries and Investments - The company has developed 244 patents, including 122 invention patents, and has registered 325 software copyrights as of December 31, 2020[68]. - The company's overseas assets amount to approximately ¥3.1 billion, accounting for 66.86% of total assets[64]. - The company holds a 100% stake in several subsidiaries, enhancing its control over operations and strategic direction[119]. - The overall performance of subsidiaries shows a mix of profitability and losses, reflecting varied market conditions and operational efficiencies[119]. - The company established Shenzhen Weikebo Design Consulting Co., Ltd. with an investment of ¥1,000,000, holding 100% of its shares[125]. Debt and Financial Management - The company is actively working on measures to mitigate debt risks and improve financial stability[154]. - The company has signed new debt settlement agreements with bondholders totaling RMB 311,004,000, all based on the first plan[191]. - The company received debt waiver letters involving a total of approximately RMB 417 million, including principal, unpaid interest, and penalties[191]. - The company has reached a settlement agreement regarding the execution of debts with related parties, ensuring continued guarantee responsibilities[188]. - The company is actively communicating with bondholders regarding the debt maturity disposal plan[190]. Shareholder and Governance Issues - The company has not distributed any cash dividends in the last three years, with a cumulative distributable profit of negative RMB 182.34 million for 2020[161]. - The cash dividend policy stipulates that the company should distribute at least 30% of the average distributable profit over the last three years when conditions are met[160]. - The company has committed to not transferring or managing shares for 36 months post the cash subscription of shares, ensuring stability in shareholding[165]. - The company has faced challenges in fulfilling profit forecasts, leading to potential compensation obligations[165]. - The company has committed to reducing and regulating related party transactions, adhering to market principles[165].

Financial Performance - Total assets decreased by 14.20% to CNY 4,648,036,829.87 compared to the end of the previous year[17]. - Net assets attributable to shareholders decreased by 87.09% to CNY 40,437,206.15 due to losses incurred during the period[19]. - Operating income increased by 10.06% to CNY 2,123,237,371.22 compared to the same period last year, driven by the disposal of investment properties[19]. - Net profit attributable to shareholders improved by 10.85% to CNY -256,904,739.59, influenced by pandemic subsidies and debt waivers from acquired companies[19]. - Net cash flow from operating activities decreased by 314.93% to CNY -49,071,030.18, primarily due to reduced sales collections and a decline in overseas security services[19]. - Basic earnings per share increased by 9.09% to CNY -0.20, reflecting the impact of pandemic subsidies and debt waivers[19]. - The weighted average return on net assets increased by 269.56 percentage points to -138.95% due to a decrease in net assets[19]. - Non-operating income and expenses totaled CNY -23,842,411.57 for the period, with significant contributions from government subsidies and debt restructuring gains[19]. - The company reported a net loss for the period increased to CNY -2,472,137,573.71 from CNY -2,215,232,834.12, indicating a worsening of approximately 11.6%[73]. - The net profit for Q3 2020 showed a loss of ¥181,111,732.42, worsening from a loss of ¥35,323,762.73 in Q3 2019[86]. - The comprehensive income total for Q3 2020 was -113,057,635.21 RMB, compared to -83,626,482.57 RMB in the previous year, showing a worsening financial position[100]. Shareholder Information - The company had a total of 65,129 shareholders at the end of the reporting period[22]. - The largest shareholder, Shenzhen Zhongheng Huizhi Investment Co., Ltd., held 41.15% of the shares, with a total of 527,977,838 shares frozen[22]. - The actual controller, Mr. Tu Guoshen, and his concerted actors hold a total of 533,877,223 shares, accounting for 41.61% of the total share capital of the company[35]. - The shares held by the controlling shareholder, Zhongheng Huizhi, have been judicially frozen, with 527,977,838 shares frozen, representing 98.89% of their total holdings[35]. - Zhongheng Huizhi's shares are subject to high pledge ratios and risks of further freezing or disposal due to ongoing litigation[35]. - The company is actively communicating with Zhongheng Huizhi to resolve the issues related to share freezing[35]. Asset and Liability Management - The company's total assets decreased by 88.14% in trading financial assets, dropping from ¥51,255,000 to ¥6,080,000 due to reduced purchases of financial products[26]. - Accounts receivable increased by 801.85%, rising from ¥552,608.59 to ¥4,983,695.33, primarily due to an increase in settlement of accounts receivable[26]. - The company disposed of real estate, resulting in a 65.74% decrease in investment properties, from ¥557,768,705.00 to ¥191,077,431.89[26]. - Long-term borrowings increased by 78.35%, rising from ¥354,825,833.98 to ¥632,817,270.73, due to new borrowings during the period[28]. - The company's total liabilities decreased to CNY 4,607,599,623.72 from CNY 5,103,805,780.90, representing a decrease of about 9.7%[73]. - The company's current liabilities totaled CNY 3,840,827,320.63, down from CNY 4,216,623,103.58 at the end of 2019, indicating a reduction of about 8.9%[73]. Cash Flow Analysis - The cash flow from operating activities decreased by 31.05%, from ¥1,005,301,311.43 to ¥693,186,160.25, primarily due to reduced procurement expenditures[30]. - Operating cash inflow for the first three quarters of 2020 was CNY 2,161,254,309.65, a decrease of 11.7% compared to CNY 2,448,396,379.16 in the same period of 2019[101]. - Net cash flow from operating activities was negative CNY 49,071,030.18, compared to a positive CNY 22,831,358.43 in the previous year[104]. - Cash inflow from investment activities was CNY 327,056,819.10, an increase of 27% from CNY 257,647,884.96 in the same period last year[104]. - Cash inflow from financing activities was CNY 569,193,402.77, a decrease of 18.5% from CNY 698,856,493.98 in the previous year[104]. Legal and Compliance Issues - The company has received a total of 1,031 civil lawsuits related to securities false statements, with the total claim amounting to RMB 468,855,240.71[36]. - The company has filed a civil lawsuit to confirm that the shares held in a special account for profit compensation do not belong to Zhongheng Huizhi, aiming to protect the rights of minority shareholders[40]. - The company has committed to not transferring shares for 36 months following the cash subscription of shares, ensuring compliance with regulations[45]. - The company is actively pursuing legal action to confirm that shares held in a special account for profit compensation do not belong to the controlling shareholder, aiming to protect the rights of minority shareholders[55]. Future Plans and Commitments - The company plans to expand its market presence and invest in new joint ventures, as indicated by a cash outflow of ¥30,000,000 for establishing a joint venture[30]. - The company has committed to resolving land ownership issues related to properties leased by its subsidiaries, ensuring no significant adverse impact on future operations[48]. - The company has decided to abandon plans to integrate certain subsidiaries into the listed company structure to avoid potential competition issues[56]. - The controlling shareholder has committed to ensuring that no competitive business activities occur outside of the acquired Thai Weian post-acquisition[52].