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].

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 1,014,688,966.38, a decrease of 21.25% compared to CNY 1,288,432,884.75 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2020 was a loss of CNY 185,358,209.45, showing an improvement of 4.48% from a loss of CNY 194,060,900.56 in the previous year[23]. - The net cash flow from operating activities was a negative CNY 125,653,886.68, a decline of 232.29% compared to a positive cash flow of CNY 94,986,175.31 in the same period last year[23]. - The total assets at the end of the reporting period were CNY 4,912,573,463.12, down 9.31% from CNY 5,417,149,338.46 at the end of the previous year[23]. - The net assets attributable to shareholders decreased by 57.28% to CNY 133,850,397.45 from CNY 313,343,557.56 at the end of the previous year[23]. - The basic earnings per share for the first half of 2020 was -CNY 0.14, a slight improvement from -CNY 0.15 in the same period last year, reflecting a 6.67% increase[24]. - The weighted average return on net assets was -84.00%, an increase of 81.01 percentage points from -165.01% in the previous year[24]. - The company achieved operating revenue of 1.01 billion yuan, a decrease of 21.25% compared to the same period last year, primarily due to project delays caused by the pandemic[43]. - The net profit attributable to shareholders, excluding non-recurring gains and losses, decreased by 52.49% compared to the same period in 2019, primarily due to an increase in non-recurring gains and losses during the reporting period[25]. - The net cash flow from operating activities decreased by 232.29% compared to the same period in 2019, mainly due to reduced sales collections and a decline in overseas security service revenue[25]. - The basic earnings per share, excluding non-recurring gains and losses, decreased by 57.14% compared to the same period in 2019, mainly due to the decline in net profit excluding non-recurring gains and losses[25]. - The company reported a net loss of ¥185,358,209.45 for the period, compared to a net loss of ¥196,315,275.77 in the previous period, indicating an improvement of approximately 4.9%[181]. Revenue Breakdown - The international security comprehensive operation business generated revenue of 746 million yuan, significantly impacted by the pandemic, particularly in cash escort services in Hong Kong and Macau[36]. - The domestic smart city system integration business achieved revenue of 195 million yuan, affected by delays in bidding and construction due to the pandemic[38]. - The domestic smart security product manufacturing business generated revenue of 57 million yuan, with ongoing R&D investments in various security technology fields[42]. Operating Costs and Expenses - In the first half of 2020, operating costs decreased by 18.65% compared to the same period last year, primarily due to project delays caused by the pandemic[44]. - Sales expenses fell by 14.86% year-on-year, mainly due to reduced travel, entertainment, and advertising expenditures during the reporting period[44]. - Management expenses decreased by 7.75% compared to the previous year, attributed to personnel restructuring and cost-saving measures[44]. - Research and development expenses declined by 18.43% year-on-year, primarily due to reduced investment in R&D during the reporting period[44]. Cash Flow and Liquidity - The net cash flow from investment activities decreased by 433.94% year-on-year, primarily due to investments in establishing a joint venture[46]. - The net cash flow from financing activities increased by 265.51% compared to the previous year, mainly due to a reduction in cash used for debt repayment[46]. - As of the end of the reporting period, cash and cash equivalents amounted to ¥447,546,917.45, a decrease of 21.83% from the previous year[47]. - The company reported a total current assets of approximately CNY 2.46 billion as of June 30, 2020, down from CNY 2.93 billion at the end of 2019, representing a decrease of about 16%[163]. - Cash and cash equivalents decreased to approximately CNY 447.55 million from CNY 572.51 million, a decline of about 22%[163]. Debt and Liabilities - The total liabilities of the company as of June 30, 2020, amounted to approximately CNY 4.14 billion, slightly down from CNY 4.22 billion at the end of 2019[166]. - The company’s long-term borrowings increased to approximately CNY 434.78 million from CNY 354.83 million, reflecting a rise of about 22%[166]. - The debt-to-asset ratio increased to 97.28%, reflecting a 3.06% rise compared to the previous year[151]. - The company has signed debt settlement agreements totaling RMB 556,506,000 with bondholders, with RMB 164,000 under Plan A and RMB 556,342,000 under Plan B[99]. - The company is actively working to resolve existing debt issues and plans to accelerate asset sales to improve liquidity and ensure the repayment of the "16 Zhong'anxiao" bonds[158]. Shareholder and Equity Information - The actual controller holds 533,877,223 shares, accounting for 41.61% of the total share capital, with 479,098,000 shares pledged and subject to judicial freezing due to debt defaults[98]. - The company has not proposed any profit distribution or capital reserve increase plans for the half-year period[77]. - The total equity attributable to shareholders dropped from ¥313,343,557.56 to ¥133,850,397.45, a decline of about 57.3%[168]. - The company has committed to ensuring the independence of its operations post-restructuring, covering aspects such as personnel, assets, and finances[80]. Legal and Regulatory Issues - The company is under investigation by the China Securities Regulatory Commission for alleged violations of securities laws, with a total of 876 civil lawsuits related to securities false statements amounting to RMB 412,913,491.9972[121]. - The company is currently facing significant investor lawsuits, which could increase operational costs and negatively impact financial results[74]. - The company has initiated legal proceedings 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[88]. Future Outlook and Strategy - The company is focusing on enhancing its competitive edge by integrating system integration and smart manufacturing, while exploring product transformation and upgrades with 5G and AIOT technologies[42]. - The company is actively monitoring the high proportion of pledged and frozen shares held by the controlling shareholder and is urging them to take effective measures to resolve the compensation issues[88]. - The company has made commitments to avoid competition with its own subsidiaries for two years following major asset restructuring[80].

Financial Performance - The company’s operating revenue for 2019 was approximately ¥2.89 billion, a decrease of 20.20% compared to ¥3.63 billion in 2018[22]. - Net profit attributable to shareholders increased by 103.38% to approximately ¥66.86 million, primarily due to increased debt restructuring gains[23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses improved by 87.59%, reaching approximately -¥219.79 million, driven by reduced asset impairment losses[23]. - Operating cash flow net amount increased by 208.69% to approximately ¥144.76 million, attributed to improved cash recovery efforts[23]. - Net assets attributable to shareholders grew by 45.99% to approximately ¥313.34 million, mainly due to debt restructuring gains[23]. - Basic and diluted earnings per share increased by 103.25% to ¥0.05, reflecting the impact of debt restructuring gains[24]. - The weighted average return on equity rose by 195.10% to 26.98%, driven by increased net profit from debt restructuring[27]. - The company achieved an operating revenue of CNY 2.89 billion in 2019, a decrease of 20.20% compared to the previous year[73]. - The net profit attributable to shareholders was CNY 66.86 million, reflecting the company's efforts to maintain operational capability amid challenges[73]. - The company's asset-liability ratio decreased by 2 percentage points compared to the previous year, indicating improved financial stability[67]. Risk Factors - The audit report issued by Dahua Certified Public Accountants was unqualified but included emphasis on significant uncertainties related to going concern[5]. - The company reported significant market, technical, and exchange rate risks in its operations, which are detailed in the report[8]. - The company emphasizes the importance of reading the detailed risk disclosures in the report to understand potential challenges[8]. - The company faces currency exchange risks due to foreign currency transactions in its international operations, which could impact its profitability[140]. - The company may encounter market risks due to intensified competition in its core business areas, which could affect its market share and operational expansion[141]. - The company recognizes technology risks associated with rapid advancements in cloud computing, big data, and artificial intelligence, which could impact its competitive edge if not addressed[144]. - The company is actively working to mitigate debt risks, as it faces significant repayment pressures and potential negative impacts on its operations if not managed effectively[146]. Business Operations - The company operates in the integrated smart systems, security operations, and smart hardware manufacturing sectors, providing comprehensive solutions across various industries[35]. - The company has integrated high-quality project resources from its subsidiaries in mainland China, focusing on three key areas: smart transportation, smart healthcare, and network information security[36]. - The smart transportation segment utilizes IoT, cloud computing, big data, and mobile internet technologies, enhancing traffic management capabilities and improving public safety and convenience[36]. - The smart healthcare solutions include hospital information systems, purification systems, and safety systems, successfully implemented in various hospitals and medical facilities[39]. - The network information security division provides comprehensive solutions for government and financial institutions, utilizing advanced data analysis and threat management systems[39]. - The international business segment focuses on security operations services across regions such as Hong Kong, Macau, Australia, and Thailand, providing logistics and security technology services[45]. - The security logistics business includes armed transport and management of cash and valuables, ensuring safety through stringent operational qualifications and protocols[45]. - The smart hardware manufacturing segment develops IoT sensors and smart home products, maintaining high product quality and establishing partnerships with major brands like Huawei and Vanke[40]. - The company has successfully applied its solutions in various projects, including smart city initiatives and public safety systems, demonstrating its capability in system integration[40]. Corporate Governance - The company did not meet the profit distribution conditions as per its articles of association for the year 2019, and thus proposed no profit distribution or capital reserve transfer to shareholders[6]. - The company has a cash dividend policy that requires positive distributable profits and operating cash flow, with a minimum of 30% of the average distributable profits over the last three years to be distributed as cash dividends[150]. - The company has faced significant litigation risks, including potential investor lawsuits and debt repayment issues, which could increase operational costs and impact financial results[147]. - The company has committed to maintaining the independence of its operations post-restructuring, ensuring no misuse of funds by controlling shareholders[159]. - The company has not proposed any cash profit distribution plans despite having positive profits available for distribution, indicating a focus on reinvestment or other uses of retained earnings[155]. - The company has a history of not distributing dividends for the past three years, reflecting a challenging financial environment[152]. - The company has made commitments to avoid related party transactions that could harm shareholder interests, adhering to market principles and fair pricing[159]. - The company is under investigation by the China Securities Regulatory Commission, which may lead to further financial and operational implications[147]. Research and Development - The company invested CNY 61,206,367.93 in research and development, accounting for 2.11% of total operating income[88]. - The number of R&D personnel is 290, representing 2.29% of the total workforce[91]. - The company has accumulated 248 patents, including 117 invention patents, and has developed multiple proprietary technologies and products[61]. Subsidiaries and Acquisitions - The company has a 100% ownership in several subsidiaries, including Zhong'an Xian Technology Co., Ltd., which reported total assets of approximately RMB 3.65 billion and a net loss of RMB 26.71 million[109]. - The company established several wholly-owned subsidiaries in Shanghai during the reporting period, including Shanghai Anjin Business Management Co., Ltd.[115]. - The company plans to transfer 41.18% equity of Zhong'an Xian Daming Technology Co., Ltd. to Tianfeng Securities after a three-year period following a capital increase of RMB 70 million[115]. - The company acquired 100% of Shanghai Lingxiao Enterprise Development Co., Ltd. for RMB 11,175,750, expanding its business scope to include construction decoration and property management[120]. - The company acquired 100% of Shenzhen Haoting Electronics Co., Ltd. for RMB 1.6 million, enhancing its capabilities in electronic product development and sales[120]. Market Outlook - The global private security service market was approximately $331 billion in 2018, with a projected growth rate of 6% until 2022[57]. - The smart city construction in China has progressed from 7.7% to 80% in cities at the starting and growing stages over two years, indicating significant growth potential[123]. - The company aims to enhance its industry competitiveness and solidify its position in integrated security operations and smart city system integration, focusing on core businesses such as intelligent transportation, smart healthcare, and cybersecurity[129]. - The company plans to deepen its domestic business while exploring international markets, particularly along the "Belt and Road" initiative, maintaining stable growth in international operations despite cash flow challenges[132]. - The company will strengthen its market share in security logistics, security technology, and manpower security, while enhancing operational efficiency through business informationization[133]. - The company is observing the ongoing impact of the pandemic on the security industry, particularly in overseas markets where the situation remains uncertain[128]. Legal and Compliance Issues - The company has ongoing significant litigation and arbitration matters, with details disclosed in multiple announcements throughout 2019[179]. - The company received multiple administrative penalty decisions from the China Securities Regulatory Commission on May 30, 2019[180]. - The company failed to fully repay the "16 Zhong'an Xian" bonds due on November 11, 2019, and is in active communication with bondholders regarding a resolution[182]. - The company has been listed as a dishonest executor due to a loan dispute with Huaxia Bank, but this is not expected to have a significant impact[182].

Financial Performance - The net profit attributable to shareholders was -CNY 109,700,810.87, a decrease of 10.59% compared to -CNY 99,195,559.00 in the same period last year[11]. - Operating revenue declined by 20.07% to CNY 483,727,966.28, mainly due to slow project development impacted by the pandemic[11]. - Total operating revenue decreased by 20.07% to ¥483,727,966.28 compared to ¥605,153,578.14 in the same period last year, primarily due to the impact of the pandemic on business operations[19]. - The company reported a total net profit of 3.7836 million CNY for the years 2015-2017, achieving only 28.86% of the cumulative performance commitment, resulting in a shortfall of 9.3252 million CNY[44]. - The net profit of Thailand Wei'an for the years 2016-2018 was 25.91788 million THB, which is 4.19377 million THB below the cumulative performance commitment, achieving 86.07% of the target[45]. Asset and Liability Changes - Total assets decreased by 4.71% to CNY 5,161,749,433.15 from CNY 5,417,149,338.46 at the end of the previous year[11]. - The company's total assets amounted to 5.1617 billion CNY, a decrease from 5.4171 billion CNY as of December 31, 2019[55]. - The total equity attributable to shareholders decreased from ¥313,343,557.56 to ¥180,140,342.91, representing a decline of about 42.5%[60]. - The total current liabilities increased from ¥2,176,153,093.39 to ¥2,195,212,966.59, reflecting a growth of approximately 0.9%[65]. - The company's current assets totaled 2.6994 billion CNY, down from 2.9317 billion CNY at the end of 2019[55]. Cash Flow and Management - The net cash flow from operating activities decreased by 450.83% to -CNY 225,976,663.50, attributed to reduced sales collections due to the pandemic[11]. - Cash received from sales and services dropped by 27.08% to ¥640,118,936.86 from ¥877,807,740.43, mainly due to decreased sales collections[19]. - The company reported cash inflows from operating activities totaling CNY 658,309,513.26, a decrease of 30.3% compared to CNY 944,087,851.15 in Q1 2019[80]. - The ending balance of cash and cash equivalents was CNY 336,098,262.53, down from CNY 393,636,713.28 at the beginning of the period[84]. - The company is focused on maintaining a strong cash position to support future growth initiatives and potential acquisitions[100]. Shareholder and Equity Information - The total number of shareholders at the end of the reporting period was 70,560, with the largest shareholder holding 41.15% of the shares[12]. - 中恒汇志's major shareholder's shares have been frozen, affecting 98.89% of their holdings, but this has not yet impacted the company's control or operations[23]. - 中恒汇志 committed to compensate for the profit shortfall of 中安消技术有限公司, with a total of 176,751,344 shares required for compensation due to unmet performance targets from 2014 to 2016[41]. - The original shareholders of Shenzhen Keso need to compensate the company with a total cash amount of 36.038 million CNY, of which 2.8602 million CNY has already been compensated, leaving a balance of 33.1778 million CNY[44]. - The original shareholders of Thailand Wei'an are required to provide a cash compensation of 181.0981 million THB to the company[47]. Operational Adjustments and Commitments - The company has engaged a professional institution to conduct asset impairment testing as part of the profit compensation agreement[43]. - 中恒汇志 pledged to avoid competition with 中安消's main business for two years post-major asset restructuring, ensuring no conflicts of interest[33]. - 中恒汇志's commitment to not occupy 中安消技术's funds and to comply with legal regulations was reaffirmed[33]. - The company is actively adjusting its financial statements in accordance with new revenue and leasing standards, which has affected various asset and liability accounts[87]. - The company is actively pursuing legal action to protect the rights of minority shareholders regarding the compensation shares[43].