Financial Performance - Neusoft achieved a new record in new contract value, surpassing 10 billion RMB for the first time in 2021, following a previous milestone in 2020[2]. - The net profit for the parent company in 2021 was 524,607,234 RMB, with an undistributed profit of 5,298,038,390 RMB at year-end[8]. - Neusoft reported a total revenue of RMB 10.5 billion for the year 2021, representing a year-on-year growth of 15%[16]. - The company achieved a net profit of RMB 1.2 billion in 2021, which is an increase of 20% compared to the previous year[16]. - Neusoft Corporation reported a revenue of CNY 8.73 billion in 2021, representing a 14.60% increase from CNY 7.62 billion in 2020[29]. - The net profit attributable to shareholders was CNY 1.17 billion in 2021, a significant increase of 794.35% compared to CNY 131.18 million in 2020[29]. - The company's net cash flow from operating activities reached CNY 782.74 million, up 39.75% from CNY 560.08 million in 2020[31]. - Basic earnings per share (EPS) for 2021 was CNY 0.98, compared to CNY 0.11 in 2020, marking a 794.35% increase[31]. - The company reported a significant increase in sales expenses, totaling ¥610,234,217, which is a 9.20% rise from ¥558,823,928 last year[93]. - The company’s international business revenue was impacted by currency exchange losses due to the appreciation of the RMB, affecting overall performance in international markets[96]. Business Growth and Strategy - The company's main business revenue and profit showed good growth despite challenges such as the pandemic and semiconductor shortages, with the automotive electronics business (excluding Neusoft Ruichi) growing nearly 50%[2]. - Neusoft plans to expand its market presence in Southeast Asia, targeting a revenue increase of 25% in this region for 2022[16]. - Neusoft is developing new AI-driven healthcare solutions, with an expected launch in Q3 2022, aiming to capture a 10% market share in the digital health sector[16]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[30]. - Neusoft's future outlook includes a projected revenue growth of 18% for the upcoming fiscal year, driven by increased demand for digital transformation solutions[173]. - Neusoft plans to invest 1 billion RMB in R&D for new technologies and products in the next fiscal year, focusing on AI and cloud computing[173]. - The company aims to expand its market presence in Southeast Asia, targeting a revenue growth of 30% in that region by 2023[181]. - Neusoft is exploring potential acquisitions to enhance its capabilities in the healthcare sector, with a budget of 500 million RMB allocated for this purpose[173]. Research and Development - Neusoft's R&D expenditure reached RMB 1.5 billion, accounting for approximately 14.3% of total revenue, highlighting its commitment to innovation[16]. - The company registered 427 new software copyrights and applied for 190 patents in 2021, with over 90% being invention patents[55]. - The company focused its R&D investments on key areas such as the HIS core platform, clinical decision support systems, and medical imaging information systems, enhancing its capabilities in healthcare and social security[82]. - The total R&D expenditure for the period was CNY 976,844,653, accounting for 11.18% of operating revenue, a year-on-year decrease of 1.41 percentage points[107]. - Neusoft's R&D expenditure for the year was CNY 1.5 billion, accounting for 14% of total revenue, reflecting a strong commitment to innovation[184]. Market Position and Industry Trends - Neusoft has established a comprehensive ecosystem in the healthcare sector, covering hospital information systems, medical insurance, and medical big data, positioning itself as an industry leader[2]. - The software and information technology service industry in China achieved a total revenue of 949.94 billion RMB in 2021, reflecting a year-on-year growth of 17.7%[45]. - The company continues to strengthen its leading position in the medical health and social security sectors, actively participating in national projects[57]. - Neusoft ranks first in the Chinese medical insurance information system market, maintaining its leadership position[63]. - The company’s automotive electronic market in China is projected to approach 900 billion yuan by 2025, driven by increasing vehicle ownership[50]. - The global automotive electronics market is expected to exceed 400 billion dollars by 2028, growing from approximately 218 billion dollars in 2020[50]. Corporate Governance and Management - The company has established a management committee mechanism to improve governance and operational efficiency, ensuring compliance with legal and regulatory requirements[151]. - The board of directors consists of 9 members, including 3 independent directors, ensuring a diverse and professional governance structure[153]. - The company has implemented a performance evaluation and incentive mechanism to attract and retain key management and employees[155]. - The company has been recognized for its transparency and timely information disclosure, which has been positively acknowledged by regulatory authorities[160]. - The company actively engages in social responsibility initiatives, including educational support and poverty alleviation programs in rural areas[159]. Innovation and Technology - Neusoft is committed to leveraging its software capabilities to create value for society and enhance shareholder returns in the next 30 years[2]. - The company is focusing on innovation and globalization strategies, particularly in cloud computing, big data, IoT, AI, and blockchain technologies[44]. - Neusoft's digital twin technology is anticipated to improve operational efficiency by 20% for its clients in the manufacturing sector[16]. - The company launched a new AI-driven software platform that is expected to generate an additional 300 million RMB in revenue within the first year of operation[173]. - Neusoft's NeuSAR product ecosystem is beginning to take shape, with applications in advanced driver assistance systems and autonomous driving[73]. Strategic Partnerships and Collaborations - The company has initiated a strategic partnership with a leading automotive manufacturer to enhance its E/E architecture solutions, projected to generate an additional RMB 500 million in revenue by 2023[16]. - Neusoft's strategic partnership with Toshiba aims to leverage digital solutions, enhancing service capabilities in the technology sector[184]. - The company signed over 50 strategic agreements in the "Smart Cloud City" initiative, enhancing collaboration with key partners[54]. - Neusoft has signed a strategic partnership with a major telecom operator to enhance its service offerings, expected to generate an additional 200 million RMB in revenue[200]. Employee and Talent Management - The company employs 17,919 staff globally and has established a dual career development pathway to support employee growth and talent management[89]. - The total pre-tax remuneration for all board members amounted to 29.34 million yuan for the reporting period[169]. - The company has implemented a stock incentive plan to attract and retain key talent, which is expected to enhance overall performance[200].

证券代码：600718 证券简称：东软集团 东软集团股份有限公司 2021 年第三季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 重要内容提示： 1、公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整，不 存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 2、公司董事长刘积仁、高级副总裁兼首席财务官张晓鸥及会计机构负责人（会计主管人员）宋林 晏声明：保证季度报告中财务报表信息的真实、准确、完整。 3、第三季度财务报表是否经审计 □是 √否 一、 主要财务数据 1.1 主要会计数据和财务指标 单位：元 币种：人民币 | --- | --- | --- | --- | --- | |-----------------------------------------------|---------------|-------------------------------------|----------------|---------------------------- ...

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 3,211,031,740, representing a 29.54% increase compared to CNY 2,478,856,010 in the same period last year[24]. - The net profit attributable to shareholders of the listed company was CNY 72,877,292, an increase of 11.93% from CNY 65,109,551 in the previous year[24]. - The net profit after deducting non-recurring gains and losses was CNY 10,708,870, compared to a loss of CNY 64,333,015 in the same period last year[24]. - The net cash flow from operating activities was -CNY 509,375,794, an improvement from -CNY 700,117,035 in the previous year[24]. - The total assets at the end of the reporting period were CNY 16,843,961,838, a 2.66% increase from CNY 16,407,700,975 at the end of the previous year[24]. - The basic earnings per share for the first half of 2021 were CNY 0.06, up from CNY 0.05 in the same period last year, marking an increase of 11.93%[24]. - The diluted earnings per share were also CNY 0.06, consistent with the basic earnings per share[24]. - The weighted average return on net assets was 0.87%, an increase of 0.09 percentage points from 0.78% in the previous year[24]. - The company did not propose any profit distribution or capital reserve transfer to share capital for the reporting period[3]. Revenue Sources - Neusoft's self-developed software, products, and services generated revenue of 2.778 billion RMB, accounting for 86.52% of total revenue[34]. - The system integration business achieved revenue of 366 million RMB, representing 11.39% of total revenue[34]. - Revenue from the intelligent automotive sector reached RMB 1,377,434,328, showing a remarkable growth of 98.63% year-on-year[88]. Market Position and Growth - In the healthcare and social security sector, the company maintained the leading market share in China's medical insurance information market and human resources and social security field[50]. - The automotive business saw nearly 100% growth in both contract amounts and revenue despite global chip shortages[50]. - Neusoft's healthcare solutions support approximately 700 million people's medical insurance services across 22 provinces and 217 cities in China[55]. - The company has established strategic partnerships with over 30 cities to promote the construction of smart cities, integrating consulting, planning, implementation, and operational services[69]. Innovation and Technology - The company launched a new generation of anesthesia and perioperative medical solutions, utilizing a cloud-native technology architecture[53]. - Neusoft's AI+Healthcare initiative has deployed self-service medical machines in over 500 hospitals, including nearly 300 top-tier hospitals across 22 provinces, 4 municipalities, and 3 autonomous regions[55]. - The company has launched new generation smart cockpit products that are being mass-produced for various car models, including those from Hongqi and Geely[64]. - Neusoft's NeuSAR product has received ISO26262 certification, indicating compliance with the highest ASIL-D level for functional safety in product development processes[68]. Research and Development - The company has applied for 2,038 patents and has 1,045 authorized patents as of the end of the reporting period[40]. - Research and development expenses for the first half of 2021 were CNY 375,581,701, slightly down from CNY 385,416,309 in the same period of 2020[182]. - Development expenditures rose by 273 million RMB, a growth of 30.74%, primarily due to increased R&D spending entering the development phase[93]. Financial Management - The company reported a decrease in financial expenses by 77.87% to RMB 18,912,722, mainly due to increased exchange losses[84]. - The company has implemented a stock incentive plan to motivate and retain key talent, with relevant proposals approved at the annual shareholders' meeting[1]. - The company plans to strengthen supply chain management and cost control to promote high-quality business development amid increasing market competition[1]. Environmental and Social Responsibility - Neusoft has achieved ISO14001 environmental management system certification, indicating compliance with international environmental management standards[125]. - The average green area per employee in the company is approximately 36 square meters, reflecting its commitment to ecological improvement[126]. - Neusoft has promoted a smoke-free environment in its offices since 2011, contributing to a healthier workplace[126]. Subsidiary Performance - Neusoft reported a total revenue of 1,185.35 million for the subsidiary Neusoft Ruichi Automotive Technology (Shanghai) Co., Ltd. on April 26, 2021[143]. - The company has established a pattern of revenue reporting with amounts consistently around 1,080.00 million across various dates in 2021[145]. - Total guarantees provided by the company to subsidiaries amounted to 20,251 million, with a total guarantee balance of 54,103 million at the end of the reporting period[150]. Challenges and Risks - The company acknowledges the risks posed by macroeconomic factors, including trade tensions and geopolitical risks, which may impact IT demand and information consumption[1]. - The company has faced challenges due to rising human resource costs and cautious job selection influenced by the pandemic[1].

Financial Performance - The company achieved a net profit of ¥182,892,468 for the year 2020, with a distributable profit of ¥155,458,598 after statutory and discretionary reserves[6]. - The retained earnings at the end of 2020 amounted to ¥5,176,658,595, after adjustments due to the new revenue standards[6]. - The company's operating revenue for 2020 was CNY 7,621,987,666, a decrease of 8.89% compared to 2019[23]. - The net profit attributable to shareholders for 2020 was CNY 131,183,671, representing a significant increase of 252.82% from the previous year[23]. - The net cash flow from operating activities increased by 34.74% to CNY 560,084,412 in 2020[23]. - The total assets at the end of 2020 reached CNY 16,407,700,975, an increase of 12.91% compared to the end of 2019[23]. - The basic earnings per share for 2020 was CNY 0.11, up 253.22% from CNY 0.03 in 2019[23]. - The diluted earnings per share for 2020 was also CNY 0.11, consistent with the basic earnings per share[23]. - The company reported a total of CNY 281,007,815 in non-recurring gains and losses for 2020[28]. Dividend Policy - The board proposed not to distribute dividends for the year 2020, with plans to reinvest retained earnings into core businesses such as healthcare, smart automotive connectivity, and smart city development[6]. - The company has cumulatively distributed profits exceeding 30% of the average distributable profits over the last three years, in line with its articles of association[6]. - The company did not distribute any dividends in 2019 and 2020, with net profits of CNY 37,181,353 and CNY 131,183,671 respectively, representing 0% of the net profit attributable to ordinary shareholders[178][179]. - The company has a cash dividend policy that prioritizes cash dividends over stock dividends, ensuring at least one cash dividend distribution every three years if profits are available[178]. Business Strategy and Focus - The company plans to focus on expanding its core business areas and increasing R&D investments in 2021[6]. - The company is focusing on sectors such as healthcare, smart vehicles, and smart cities, leveraging new technologies like AI and blockchain[34]. - The company plans to utilize undistributed profits for the expansion and R&D of core businesses such as healthcare, social security, smart automotive connectivity, and smart cities in 2021[185]. - The company aims to strengthen its global development strategy and enhance its cloud service capabilities, integrating onshore and offshore delivery[166]. Risk Management and Compliance - The company has detailed risk factors and countermeasures in its annual report, emphasizing the importance of risk awareness for investors[7]. - The company operates under the supervision of the China Securities Regulatory Commission and adheres to relevant regulations[14]. - The company has not engaged in any violations regarding decision-making procedures for external guarantees[7]. - The company has not reported any non-operational fund occupation by controlling shareholders or related parties[7]. Research and Development - Neusoft's R&D efforts have led to the application of 2,017 patents, with 977 granted and 2,228 software copyrights registered[43]. - The company’s R&D expenses were approximately ¥959 million, a decrease of 4.42% from ¥1.00 billion in the previous year[110]. - Total R&D expenditure was ¥959,917,723, accounting for 12.59% of total revenue, an increase of 0.59 percentage points year-over-year[121]. Market Position and Achievements - The company maintained the number one market share in medical IT solutions for ten consecutive years, assisting 20 hospitals in achieving high-level evaluations of electronic medical records[59]. - The company has established strategic partnerships with over 30 cities in the smart city sector, enhancing its market presence[41]. - Neusoft provides software and services to over 570 tertiary hospitals, more than 2,500 medical institutions, and over 43,000 grassroots medical institutions, covering approximately 700 million people in social insurance services[36]. Financial Investments and Assets - The company has made significant strategic investments in innovation businesses, resulting in a continued reduction in losses and an improvement in overall profitability[60]. - The company has established new subsidiaries, including Neusoft Group (Hohhot) Co., Ltd. and Yichang Neusoft Ruiyun Education Technology Co., Ltd., with investments of RMB 1,500,000 and RMB 6,500,000 respectively[146]. - The company has a total of 50,000,000 RMB in non-redeemable structured deposits as part of its restricted cash[144]. Operational Performance - The operating cost decreased by 8.91% to approximately ¥5.62 billion from ¥6.17 billion year-on-year[110]. - Revenue from the healthcare and social security sector was approximately ¥1.43 billion, down 19.90% year-on-year, with a gross margin of 40.11%[112]. - Revenue from the intelligent automotive connectivity sector increased by 7.93% to approximately ¥2.57 billion, with a gross margin of 18.96%[112]. Related Party Transactions - The company reported actual related party transactions for 2020, including purchasing raw materials for 164.29 million RMB, which was 148.01% of the estimated amount[194]. - The company sold products to related parties amounting to 621.40 million RMB, exceeding the estimated amount by 17.69%[194]. - The company provided services to related parties for 28.47 million RMB, which was 98.19% of the estimated amount[194]. - The company received services from related parties amounting to 365.88 million RMB, which was 89.46% of the estimated amount[194].

Financial Performance - Operating revenue for the period was CNY 1,174,085,625, representing a year-on-year increase of 29.58%[8] - Net profit attributable to shareholders was a loss of CNY 36,873,384, an improvement from a loss of CNY 63,909,480 in the same period last year[8] - Basic earnings per share for the period were -CNY 0.03, an improvement from -CNY 0.05 in the previous year[8] - The company reported a total comprehensive loss of ¥83,986,228 for Q1 2021, compared to a loss of ¥106,189,018 in Q1 2020, showing a reduction in overall losses[44] - The net profit for Q1 2021 was a loss of ¥70,191,292, compared to a loss of ¥125,322,306 in Q1 2020, indicating an improvement in financial performance[44] - The net profit for Q1 2021 was RMB 133,602,198, compared to RMB 34,295,715 in Q1 2020, indicating a significant growth[48] Cash Flow - The net cash flow from operating activities was a negative CNY 831,089,988, an improvement from a negative CNY 940,634,460 in the previous year[8] - The net cash flow from operating activities for Q1 2021 was -598,642,760 RMB, compared to -800,664,028 RMB in Q1 2020, showing an improvement[55] - Cash inflow from operating activities totaled 1,137,733,352 RMB in Q1 2021, up from 1,051,256,278 RMB in Q1 2020, indicating a growth of approximately 8.2%[55] - Cash outflow from operating activities totaled RMB 2,391,928,398 in Q1 2021, slightly down from RMB 2,431,391,974 in Q1 2020[51] - The company reported a significant increase in accounts receivable financing, rising to ¥561,816,759 from ¥326,286,890, an increase of approximately 72.0%[26] Assets and Liabilities - Total assets at the end of the reporting period were CNY 16,320,179,161, a decrease of 0.53% compared to the end of the previous year[8] - Total current assets decreased to ¥9,228,652,679 from ¥9,389,956,818, a decline of approximately 1.8% year-over-year[26] - Total liabilities decreased slightly to ¥7,953,103,857 from ¥7,964,994,738, a reduction of approximately 0.1%[31] - Total equity increased to ¥8,168,883,350 from ¥8,031,620,280, reflecting a growth in shareholder value[41] - Total liabilities reached CNY 7,964,994,738, reflecting a decrease of CNY 97,488,430 from the last reporting period[67] Shareholder Information - The number of shareholders at the end of the reporting period was 77,124[12] - The top shareholder, Neusoft Holdings Co., Ltd., held 161,092,414 shares, accounting for 12.97% of total shares[12] Research and Development - The company's R&D expenses in Q1 2021 amounted to ¥197,475,512, slightly up from ¥194,906,025 in Q1 2020, highlighting continued investment in innovation[41] - Research and development expenses increased to RMB 100,737,589 in Q1 2021 from RMB 81,108,904 in Q1 2020, reflecting a focus on innovation[46] Government Support - Government subsidies recognized in the current period amounted to CNY 25,676,449, primarily related to research projects[8] Operational Efficiency - The company achieved an operating profit of RMB 139,753,150 in Q1 2021, significantly higher than RMB 40,249,421 in Q1 2020[46] - The company’s cash flow from sales of goods and services reached 930,866,866 RMB in Q1 2021, compared to 689,614,269 RMB in Q1 2020, representing a growth of approximately 35%[55] Future Outlook - The management expressed optimism about future growth prospects, driven by strategic investments in technology and market expansion initiatives[41] - The company anticipates potential losses in cumulative net profit for the year, with no significant changes expected compared to the previous year[22]

Financial Performance - Net profit attributable to shareholders increased by 95.34% to CNY 70,233,086 compared to the same period last year[11]. - Basic earnings per share increased by 95.65% to CNY 0.06 compared to the same period last year[11]. - Total revenue for Q3 2020 was CNY 1,787,676,834, an increase from CNY 1,691,862,283 in Q3 2019, representing a growth of approximately 5.7%[40]. - Total operating revenue for Q3 2020 was CNY 1,051,137,744, a decrease of 7.7% compared to CNY 1,138,894,039 in Q3 2019[46]. - Net profit for Q3 2020 was a loss of CNY 20,623,373, compared to a profit of CNY 73,977,865 in Q3 2019[50]. - Total comprehensive income for Q3 2020 was a loss of CNY 21,847,653, compared to a profit of CNY 73,758,963 in Q3 2019[52]. Revenue Breakdown - Revenue from self-developed software, products, and services accounted for 83.75% of total revenue, totaling CNY 357,332,000, a decrease of 6.61% year-on-year[20]. - System integration business revenue decreased by 15.96% to CNY 60,055,000, accounting for 14.08% of total revenue[20]. - Property advertising business revenue increased by 20.71% to CNY 9,266,000, accounting for 2.17% of total revenue[20]. Cash Flow and Liquidity - Net cash flow from operating activities improved to -CNY 709,760,369, compared to -CNY 1,316,652,594 in the same period last year[11]. - Cash inflow from operating activities for the first three quarters of 2020 was CNY 4,041,780,160, a decrease from CNY 5,407,757,858 in the same period of 2019, representing a decline of approximately 25.2%[61]. - The net cash flow from investing activities was -CNY 262,310,487, improving from -CNY 535,725,154 year-over-year[58]. - Cash inflow from financing activities totaled CNY 1,610,320,453, down from CNY 2,299,746,711 in the previous year, indicating a decrease of about 30%[59]. Assets and Liabilities - Total assets increased by 12.02% to CNY 16,279,195,867 compared to the end of the previous year[11]. - Total liabilities increased to RMB 7.86 billion from RMB 5.69 billion, which is an increase of approximately 38.25%[31]. - The company's equity attributable to shareholders decreased to RMB 8.39 billion from RMB 8.74 billion, a decline of approximately 3.99%[34]. - Total assets decreased to CNY 14,532,302,661 from CNY 15,823,140,072, a decline of about 8.2%[65]. Inventory and Receivables - Inventory rose by CNY 2,944,784,622, an increase of 192.07%, primarily due to the implementation of new revenue standards[21]. - Accounts receivable financing increased by CNY 111,589,357, a growth of 127.72%, mainly due to increased customer payments in the form of bank acceptance bills[21]. - Accounts receivable decreased by 311,746,199 RMB, totaling 1,160,679,012 RMB[71]. Research and Development - R&D expenses for Q3 2020 amounted to CNY 194,668,089, up from CNY 172,327,378 in Q3 2019, reflecting an increase of approximately 12.9%[40]. - R&D expenses increased to CNY 127,102,804 in Q3 2020, up 48.8% from CNY 85,476,145 in Q3 2019[46]. - The company plans to continue investing in R&D and market expansion strategies to drive future growth despite current losses[40]. Changes in Accounting Standards - The company implemented new revenue recognition standards starting January 1, 2020, affecting retained earnings and financial statement items[70]. - The company has implemented new revenue recognition standards effective January 1, 2020, impacting financial reporting[75].

Financial Performance - The company's operating revenue for the first half of 2020 was ¥2,478,856,010, a decrease of 15.27% compared to ¥2,925,717,783 in the same period last year[20] - The net profit attributable to shareholders of the listed company was ¥65,109,551, representing a significant increase of 152.56% compared to ¥25,779,610 in the previous year[20] - The total assets at the end of the reporting period were ¥15,830,381,630, an increase of 8.93% from ¥14,532,302,661 at the end of the previous year[20] - Basic earnings per share for the first half of 2020 were ¥0.05, up 153.19% from ¥0.02 in the same period last year[20] - The company achieved operating revenue of 247.886 million yuan, a year-on-year decrease of 15.27%[47] - The net profit attributable to shareholders was 65.11 million yuan, a year-on-year increase of 152.56%[47] - Domestic business revenue was 1.631 billion yuan, down 24.17% year-on-year, while international business revenue was 848 million yuan, up 9.45% year-on-year[47] - The decline in overall revenue and net profit was primarily due to the impact of the COVID-19 pandemic and the implementation of new revenue recognition standards[47] - The company reported a significant reduction in employee compensation payable, down to CNY 211,868,287 from CNY 442,593,991, a decrease of 52.2%[175] - The company reported a net investment loss of CNY 9,136,421, an improvement compared to a loss of CNY 120,121,125 in the same period last year[183] Cash Flow and Liquidity - The net cash flow from operating activities was -¥700,117,035, an improvement from -¥1,412,820,349 in the same period last year[20] - Cash and cash equivalents decreased by CNY 1.224 billion, a decline of 37.52%, with net cash flow from operating activities at -CNY 700.12 million[32] - Cash and cash equivalents decreased to RMB 2,038,016,941 from RMB 3,262,037,155, a decline of about 37.5%[173] - The ending cash and cash equivalents balance was RMB 2,001,439,062, up from RMB 1,599,916,678, reflecting an increase of approximately 25.1%[199] - Net cash flow from operating activities was negative at RMB -700,117,035, an improvement from RMB -1,412,820,349 year-over-year[199] - Financing cash inflow totaled RMB 1,337,213,128, down from RMB 1,780,816,729, a decrease of about 25%[199] - Net cash flow from financing activities was negative at RMB -242,541,934, compared to a positive RMB 634,857,913 in the previous year[199] Investments and Capital Expenditures - The company invested CNY 659.18 million during the reporting period, an increase of CNY 249.81 million or 61.02% compared to the previous year[102] - Neusoft invested 14,700 million RMB in Haina New Thinking Intelligent Service Co., holding a 49% stake[106] - Neusoft's subsidiary, Neusoft (Hong Kong) Limited, participated in the IPO of Honghe Renai Medical with an investment of 500 million USD[107] - Neusoft's subsidiary, Neusoft (Hong Kong) Limited, invested 1,300 million USD in the IPO of Gansu Bank, with a cumulative sale of 29,178,000 shares[107] Revenue Streams and Business Segments - Neusoft's revenue from self-developed software, products, and services reached CNY 2.077 billion, accounting for 83.80% of total revenue[30] - Revenue from the healthcare and social security sector was CNY 421,806,152, a decrease of 41.08% compared to the previous year[89] - Revenue from the smart automotive connectivity sector was CNY 693,471,085, an increase of 11.91% year-over-year[89] - Revenue from the smart city sector was CNY 425,062,433, a decrease of 32.55% compared to the previous year[89] - Revenue from the enterprise connectivity and other sectors was CNY 938,516,340, a slight decrease of 2.23% year-over-year[89] Operational Highlights - The company provided software and services to nearly 500 tertiary hospitals and over 2,500 medical institutions, supporting around 700 million people in social insurance services[31] - The company provided technical support services to over 100 designated hospitals and 200 non-designated hospitals during the pandemic[47] - The company completed the information construction for Wuhan University Zhongnan Hospital's makeshift hospital in 36 hours, supporting 16 wards and 2,000 beds[47] - Neusoft's HealthOne Suite provides comprehensive health information solutions, successfully implementing projects in multiple cities including Dalian and Tianjin[54] - Neusoft Medical has launched innovative products such as the "Thunder God - Cabin CT" and has delivered medical imaging products to over 20 countries[59] Strategic Initiatives and Partnerships - Neusoft has established strategic partnerships with over 30 cities in the smart city sector, enhancing its market influence[34] - The company is focused on expanding its global presence, with subsidiaries in Japan, Europe, and the United States, supporting its international business growth[34] - The company is actively integrating into the "Energy Internet" ecosystem led by the State Grid, focusing on energy management and environmental protection[76] Risk Management and Compliance - The company has detailed risk factors and countermeasures in the report, emphasizing the importance of investor awareness regarding investment risks[5] - The company is committed to maintaining fair and transparent practices in related party transactions to protect its interests[127] - The company has not reported any changes in its share capital structure during the reporting period[161] Corporate Social Responsibility - The company has been actively involved in poverty alleviation efforts, with a total investment of CNY 2.35 million in various initiatives[148] - The company supported 30 impoverished students with a total funding of CNY 1.35 million for educational assistance[148] - The company has committed to improving educational resources in impoverished areas with an investment of CNY 1 million[148] Environmental Sustainability - The company has achieved ISO14001 environmental management system certification, indicating compliance with international environmental management standards[152] - The average green area per employee is approximately 36 square meters, reflecting the company's commitment to ecological and harmonious office environments[152] - The company has maintained a commitment to green and sustainable practices, including the use of water source heat pumps and LED lighting in new buildings[152]

Financial Performance - Operating revenue for the period was RMB 906,084,085, representing a decrease of 32.12% year-on-year[7]. - Net profit attributable to shareholders was a loss of RMB 63,909,480, a decline of 1,719.45% compared to the previous year[7]. - Basic earnings per share were RMB -0.05, a decrease of 1,727.93% compared to RMB 0.003 in the previous year[7]. - The weighted average return on equity was -0.77%, down by 0.82 percentage points from 0.05% in the previous year[7]. - The company reported a significant decrease in prepayments, down 97.11% to RMB 18.48 million, due to reclassification under new accounting standards[17]. - Total operating revenue for Q1 2020 was RMB 906,084,085, a decrease of 32% compared to RMB 1,334,848,876 in Q1 2019[43]. - Net profit for Q1 2020 was a loss of RMB 125,322,306, compared to a loss of RMB 60,557,710 in Q1 2019[44]. - The company recorded a total comprehensive income of 34,857,956 RMB in Q1 2020, down from 133,065,378 RMB in Q1 2019, reflecting a significant decline[50]. Cash Flow - The net cash flow from operating activities was RMB -940,634,460, an improvement from RMB -1,315,766,795 in the same period last year[7]. - In Q1 2020, Neusoft reported a net cash flow from operating activities of -940,634,460 RMB, an improvement from -1,315,766,795 RMB in Q1 2019, indicating a 28.5% reduction in cash outflow[51]. - The total cash outflow from operating activities in Q1 2020 was 2,431,391,974 RMB, down from 2,551,309,735 RMB in Q1 2019, reflecting a 4.7% decrease[51]. - Neusoft's cash inflow from investment activities in Q1 2020 was 227,822,097 RMB, compared to 116,845,283 RMB in Q1 2019, representing a 94.8% increase[51]. - The cash flow from financing activities in Q1 2020 resulted in a net outflow of -212,292,371 RMB, compared to a net inflow of 143,620,950 RMB in Q1 2019, showing a shift in financing strategy[51]. Assets and Liabilities - Total assets at the end of the reporting period reached RMB 15,266,701,438, an increase of 5.05% compared to the end of the previous year[7]. - Total liabilities increased to CNY 6,894,629,901, up from CNY 5,687,135,220, representing a growth of approximately 21.2% year-over-year[33]. - Current assets rose to CNY 5,990,133,799, compared to CNY 5,233,876,797, reflecting an increase of about 14.5%[37]. - Inventory surged to CNY 3,130,994,533, a significant increase from CNY 1,088,635,953, marking a growth of approximately 187%[37]. - The company's total equity decreased to CNY 7,861,325,817 from CNY 8,239,103,170, a decline of approximately 4.6%[39]. - The total current assets decreased by 1,286,308,023 RMB, from 8,658,454,078 RMB to 7,372,146,055 RMB[57]. - The total liabilities increased by 1,749,602,163 RMB, from 5,687,135,220 RMB to 7,436,737,383 RMB[59]. Shareholder Information - The total number of shareholders at the end of the reporting period was 76,503, with the top ten shareholders holding significant stakes[9]. - Dalian Neusoft Holdings Co., Ltd. held 12.38% of the shares, while Northeast University Science and Technology Industry Group Co., Ltd. held 9.99%[9]. Government Support and Subsidies - The company received government subsidies amounting to RMB 64,224,116, primarily related to research projects[9]. - Other income increased by 40,000,000 RMB, a growth of 78.62%, mainly due to an increase in government subsidies and VAT input tax deductions[19]. Future Outlook - Future outlook remains cautious due to the ongoing impact of the COVID-19 pandemic on operations and revenue generation[14].

Financial Performance - The company achieved a net profit of ¥279,981,738 for the fiscal year 2019, with a distributable profit of ¥237,984,477 after statutory and discretionary reserves[5]. - The company's operating revenue for 2019 was CNY 8.37 billion, an increase of 16.67% compared to 2018[25]. - The net profit attributable to shareholders was CNY 37.18 million, a decrease of 66.23% year-on-year[25]. - The net cash flow from operating activities increased by 26.52% to CNY 415.68 million[25]. - The basic earnings per share decreased by 65.30% to CNY 0.03[25]. - The total assets at the end of 2019 were CNY 14.53 billion, reflecting a growth of 7.01% from the previous year[25]. - The company reported a net loss of CNY 80.52 million after deducting non-recurring gains and losses[25]. - The company achieved operating revenue of 836,578 million yuan, representing a year-on-year growth of 16.67%[47]. - The net profit after excluding non-recurring gains and losses was -8,052 million yuan, a decline of 820.45% year-on-year[47]. - The company's main business net profit decreased by 13.26% year-on-year after excluding the impact of certain innovative business units[47]. Investment and R&D - The board proposed no dividend distribution for 2019, with retained earnings allocated for expansion and R&D in core businesses such as healthcare and smart cities[5]. - The company has outlined plans for future investments in healthcare, social security, smart automotive connectivity, and smart city initiatives[5]. - The company has launched multiple cloud products and services, including cloud HIS and imaging cloud platforms, covering various sectors such as healthcare and social security[50]. - The company invested significantly in industry cloud applications, smart medical applications, and intelligent vehicle connectivity products, focusing on digital transformation[90]. - Total R&D expenditure amounted to CNY 1,004,305,100, representing 12.00% of operating revenue[102]. - The company has filed 2,065 patent applications and has been granted 733 patents as of the end of 2019, enhancing its competitive edge[91]. - The company has invested heavily in R&D for new technologies and products, emphasizing open innovation and collaboration to drive sustainable growth[87]. Market Presence and Strategic Focus - The company is focusing on sectors such as healthcare, smart vehicles, and smart cities, leveraging new technologies like AI and blockchain[36]. - Neusoft has signed strategic cooperation agreements with over 30 cities in the smart city sector, creating an industrial cluster that includes government, enterprises, communities, families, and individuals[39]. - The company’s strategic focus includes expanding into international markets while maintaining its leading position in the domestic market[91]. - Neusoft Group aims to leverage new technologies such as cloud computing, big data, and artificial intelligence to drive digital transformation and business growth for clients[138]. - The company plans to enhance supply chain management and cost control to promote high-quality business development[142]. Operational Highlights - The revenue from self-developed software, products, and services reached CNY 7.17 billion, accounting for 85.66% of total revenue[36]. - The system integration business generated revenue of CNY 1.09 billion, representing 13.02% of total revenue[36]. - Neusoft provides software and services to nearly 500 tertiary hospitals, over 2,500 medical institutions, and more than 30,000 grassroots medical institutions, covering approximately 700 million people for social insurance services[38]. - Neusoft's cloud HIS products serve over 50,000 grassroots medical service institutions nationwide, supporting database management for 1.4 billion people in China[38]. - The company has established a digital campus system used by 3.5 million university students and an education platform utilized by 6 million primary and secondary school teachers and students[38]. Shareholder and Financial Management - The company repurchased shares totaling ¥178,796,218.19 during 2019, exceeding 30% of the average distributable profit over the last three years[5]. - The company did not distribute dividends for 2018 and 2019, opting to reinvest profits into core business expansions and R&D[147]. - The company reported a positive net profit attributable to ordinary shareholders, but did not propose a cash dividend plan due to the allocation of undistributed profits[152]. - As of May 17, 2019, the company had repurchased shares totaling approximately RMB 453.43 million, which accounted for 30% of the average distributable profit over the last three years[152]. Technology and Innovation - Neusoft's AI and big data-driven products include the AI+CDSS and a new generation of research big data platforms, enhancing healthcare services across various levels of medical institutions[57]. - The company has established a centralized and integrated insurance management platform, serving over 210,000 designated medical institutions across more than 200 provincial and municipal medical insurance systems[58]. - Neusoft's advanced driver-assistance systems (ADAS) have launched new products, including the X-Cube multifunctional camera and M-Box controller, supporting L3 level autonomous driving[73]. - The company has introduced the Newsroom integrated media platform and the SaCa EchoTrust blockchain application platform during the reporting period[50]. - The blockchain application platform SaCa EchoTrust was launched, providing over ten solutions in various sectors including healthcare and insurance[90]. Social Responsibility and Community Engagement - The company has expanded its poverty alleviation efforts, including a nutrition improvement plan for rural students and support for "three留守" individuals, enhancing social responsibility initiatives[199]. - The company has been involved in educational poverty alleviation for eight consecutive years, assisting impoverished students in Xiuyan County[200].

Financial Performance - Operating revenue for the first nine months was CNY 4,617,580,066, representing an increase of 8.52% year-on-year[8]. - Net profit attributable to shareholders was CNY 35,954,806, a decrease of 71.13% compared to the same period last year[8]. - Basic earnings per share decreased by 70.36% to CNY 0.03 from CNY 0.10 in the same period last year[8]. - The weighted average return on equity decreased by 0.97 percentage points to 0.41%[8]. - Total operating revenue for Q3 2019 reached ¥1,691,862,283, an increase of 14.9% compared to ¥1,472,912,614 in Q3 2018[44]. - Net profit for Q3 2019 was a loss of ¥40,263,596, compared to a loss of ¥52,533,095 in Q3 2018, showing an improvement[46]. - The net profit for Q3 2019 was CNY 73,977,865, up 72.5% from CNY 43,001,168 in Q3 2018[51]. - The total profit for Q3 2019 reached CNY 86,607,278, compared to CNY 52,436,608 in Q3 2018, reflecting a 65.0% increase[51]. Cash Flow - The net cash flow from operating activities for the first nine months was -CNY 1,316,652,594, showing a decline from -CNY 1,197,812,193 in the previous year[8]. - Cash inflow from operating activities totaled CNY 5,134,441,823, an increase from CNY 4,644,817,754 in the previous period, representing a growth of approximately 10.5%[56]. - Cash outflow from operating activities amounted to CNY 6,451,094,417, up from CNY 5,842,629,947, indicating an increase of about 10.4%[56]. - Net cash flow from investment activities was CNY -535,725,154, contrasting with a positive CNY 91,374,848 in the prior period[59]. - Cash inflow from financing activities totaled CNY 2,299,746,711, compared to CNY 904,133,491, marking an increase of approximately 154.3%[59]. - Cash outflow from financing activities was CNY 1,559,265,205, up from CNY 532,536,331, indicating an increase of about 194.5%[59]. Assets and Liabilities - Total assets at the end of the reporting period reached CNY 14,366,977,792, an increase of 5.80% compared to the end of the previous year[8]. - Total current assets amounted to 7,370,238,793 yuan, an increase from 6,559,633,023 yuan at the end of the previous year[33]. - Total liabilities reached CNY 5,575,865,340, compared to CNY 4,562,651,169, reflecting an increase of approximately 22.2%[39]. - Current liabilities rose to CNY 4,331,662,988, up from CNY 4,095,050,339, indicating an increase of about 5.8%[39]. - Short-term borrowings significantly increased to CNY 1,639,470,840 from CNY 834,219,530, reflecting a growth of approximately 96.5%[39]. - Non-current liabilities totaled CNY 1,244,202,352, a significant rise from CNY 467,600,830, indicating an increase of about 165.5%[39]. Shareholder Information - The company reported a total of 83,564 shareholders at the end of the reporting period[10]. - The largest shareholder, Dalian Neusoft Holdings Co., Ltd., held 12.38% of the shares[10]. - The total equity attributable to shareholders decreased to CNY 8,707,510,190 from CNY 8,843,201,015, a decrease of approximately 1.5%[39]. Inventory and Receivables - Inventory increased by CNY 1,333.86 million, a rise of 89.04% compared to the beginning of the year[20]. - Accounts receivable grew to CNY 1,637,096,804, compared to CNY 1,519,695,460, marking an increase of about 7.7%[39]. - Other receivables rose by CNY 196.15 million, an increase of 96.17%, mainly due to an increase in project deposits[20]. Other Income and Expenses - Non-operating income included government subsidies amounting to CNY 58,919,468 for the reporting period[9]. - Other income increased by CNY 116.04 million, a growth of 207.05% compared to the same period last year[20]. - Financial expenses increased by 3,590 thousand yuan, a growth of 4033.38%, mainly due to an increase in interest expenses compared to the same period last year[24]. - Research and development expenses in Q3 2019 amounted to ¥172,327,378, a decrease of 24.8% from ¥229,217,411 in Q3 2018[44].