Financial Performance - The company's operating revenue for Q3 2021 was ¥311,920,828.29, representing a decrease of 4.59% compared to the same period last year[3]. - The net profit attributable to shareholders was a loss of ¥2,544,648.63, a decline of 112.11% year-on-year[3]. - Total operating revenue for the first three quarters of 2021 was ¥838,877,412.63, a decrease from ¥883,479,486.69 in the same period of 2020, representing a decline of approximately 5.05%[19]. - Total operating costs for the first three quarters of 2021 were ¥862,123,571.71, down from ¥898,267,748.14 in 2020, indicating a decrease of about 4.02%[19]. - The net profit for the first three quarters of 2021 was a loss of ¥9,083,616.25, compared to a loss of ¥10,025,532.10 in the same period of 2020, showing an improvement of approximately 9.39%[20]. - The company’s total comprehensive income for the first three quarters of 2021 was a loss of ¥9,083,616.25, compared to a loss of ¥10,025,532.10 in 2020, indicating an improvement in overall financial performance[21]. Cash Flow - The net cash flow from operating activities for the year-to-date was -¥67,252,621.14, indicating a negative cash flow situation[3]. - The cash flow from operating activities for the first three quarters of 2021 was a net outflow of ¥67,252,621.14, worsening from a net outflow of ¥35,392,096.17 in 2020[26]. - The company reported a net cash outflow from investing activities of ¥104,660,439.98 in the first three quarters of 2021, compared to a net outflow of ¥13,432,760.17 in 2020[26]. - Cash inflow from financing activities totaled ¥410,931,596.05 in the first three quarters of 2021, a decrease from ¥457,388,744.81 in the same period of 2020[26]. - The net cash flow from financing activities was $111,747,076.26, a significant improvement compared to the previous year's negative cash flow of $25,110,691.47[27]. - The total cash and cash equivalents at the end of the period amounted to $159,045,359.53, up from $126,222,159.14 in the same period last year[27]. - The cash outflow from financing activities totaled $299,184,519.79, a decrease from $482,499,436.28 year-over-year[27]. - The net increase in cash and cash equivalents for the period was a decrease of $60,377,861.97, compared to a decrease of $74,338,426.12 in the same period last year[27]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,064,953,983.36, an increase of 6.45% from the end of the previous year[4]. - The equity attributable to shareholders increased by 29.06% to ¥1,057,820,808.45 compared to the end of the previous year[4]. - The company's current assets totaled RMB 1,297,276,820.61, up from RMB 1,183,411,470.65 in the previous year, indicating an increase of about 9.6%[14]. - The company's total liabilities decreased to RMB 993,063,280.73 from RMB 1,096,084,258.83, a reduction of approximately 9.4%[16]. - The total equity increased to RMB 1,071,890,702.62 from RMB 843,836,470.57, indicating a growth of about 27%[16]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 15,311[8]. - The top shareholder, Xu Aimin, holds 22.98% of the shares, totaling 36,905,021 shares[9]. Inventory and Receivables - The company reported a significant increase in inventory, which rose to RMB 168,872,166.93 from RMB 132,008,671.37, an increase of approximately 27.7%[13]. - Accounts receivable rose to RMB 631,791,275.91, compared to RMB 585,722,863.32 in the previous year, marking an increase of about 7.9%[13]. Borrowings - The short-term borrowings decreased to RMB 224,026,246.18 from RMB 296,065,166.07, a decline of about 24.3%[15]. - The company’s long-term borrowings also decreased to RMB 130,100,000.00 from RMB 164,100,000.00, reflecting a reduction of approximately 20.7%[16]. Earnings Per Share - The basic earnings per share for the period was -¥0.0167, down 110.81% year-on-year[3]. - Basic and diluted earnings per share for the first three quarters of 2021 were ¥0.0073, down from ¥0.0469 in 2020, reflecting a decline of approximately 84.5%[21]. Government Subsidies - The company received government subsidies amounting to ¥7,847,949.25 during the reporting period[5]. Credit Risk - The company incurred a credit impairment loss of ¥5,655,942.98 in the first three quarters of 2021, compared to a loss of ¥2,471,857.92 in 2020, indicating a significant increase in credit risk[20].

Financial Performance - The company reported a significant increase in revenue for the first half of 2021, with total revenue reaching 1.2 billion RMB, representing a year-on-year growth of 25%[11]. - The company reported a revenue of ¥526,956,584.34 for the first half of 2021, a decrease of 5.32% compared to ¥556,558,261.13 in the same period last year[19]. - The net profit attributable to shareholders was ¥3,576,277.54, a significant improvement from a loss of ¥14,630,749.67 in the previous year[19]. - The company achieved a basic earnings per share of ¥0.0263, compared to a loss of ¥0.1076 per share in the same period last year[20]. - The weighted average return on equity was 0.44%, recovering from -1.83% in the previous year[20]. - The company reported a net loss of CNY 2,960,308.76 for the first half of 2021, significantly improved from a net loss of CNY 27,739,961.62 in the same period last year[136]. - Basic and diluted earnings per share for the first half of 2021 were CNY 0.0263, compared to a loss per share of CNY 0.1076 in the previous year[137]. Market Expansion and Strategy - The company has provided a positive outlook for the second half of 2021, projecting a revenue growth of 20% to 30% based on current market trends and demand[11]. - The company is expanding its market presence, targeting a 10% increase in market share in the telecommunications sector by the end of 2021[11]. - Strategic acquisitions are planned, with a focus on integrating smaller tech firms to enhance technological capabilities and product offerings[11]. - The company plans to enhance its market presence by optimizing product structure and strengthening its operations in both domestic and overseas markets[31]. - The company is expanding its market presence in traditional operators, industry segments, and overseas markets[43]. - The company is actively expanding its procurement framework for various telecommunications equipment, including optical cables and distribution boxes, to enhance operational capabilities[99]. Research and Development - The company is investing heavily in R&D, allocating 15% of its revenue to develop new technologies and improve existing products[11]. - The company is focusing on 5G product development, with significant investments in research and development to meet market demands[40]. - Research and development expenses were ¥24,435,678.25, down 7.80% from ¥26,503,694.19 in the previous year[54]. - The company applied for 3 invention patents during the reporting period, focusing on new product development in optical cable communication[46]. Risks and Challenges - The company has identified potential risks, including supply chain disruptions and regulatory changes, which may impact future performance[11]. - The company faces litigation involving a claim of 2.46 million yuan related to a procurement agreement, which was dismissed in the second instance by the Nanjing Intermediate Court[85]. - The company is currently involved in multiple legal disputes, with total claims amounting to 6.8624 million yuan from various parties[85]. - The company faces risks including market competition risk, industry downstream customer concentration risk, and overseas market risk[61][62][64]. Financial Position - The company’s total assets decreased by 3.12% to ¥1,879,394,070.84 from ¥1,939,920,729.40 at the end of the previous year[19]. - The company’s net assets attributable to shareholders were ¥815,767,474.14, down 0.47% from ¥819,651,331.24 at the end of the previous year[19]. - The company’s total current assets as of June 30, 2021, amount to RMB 1,120,448,436.93, a decrease from RMB 1,183,411,470.65 at the end of 2020[125]. - Total liabilities decreased to CNY 1,045,978,043.67 from CNY 1,096,084,258.83, reflecting a reduction of about 4.6%[127]. - The company's total equity as of June 30, 2021, was CNY 833,416,027.17, down from CNY 843,836,470.57, indicating a decrease of approximately 1.2%[128]. Shareholder Information - The board has approved a profit distribution plan, proposing a dividend payout of 0.5 RMB per share for shareholders[11]. - The company reported a profit distribution of 7,208,000.00, indicating a reduction in retained earnings for the period[152]. - The top shareholder, Xu Aimin, holds 34,971,428 shares, representing 25.71% of the total shares, with 10,550,000 shares pledged[113]. Environmental and Legal Compliance - The company strictly adheres to national environmental protection laws and regulations, with no violations or administrative penalties reported during the reporting period[76]. - There are no significant litigation or arbitration matters reported for the company during the reporting period[83]. - The company has not reported any non-operating fund occupation by major shareholders or related parties[82]. Procurement and Contracts - The company has established multiple procurement framework agreements for various equipment and services, including ODF racks and MODF racks, with contracts running from May 1, 2021, to April 30, 2022[99]. - The company signed a procurement contract for UPS input/output screens and communication distribution screens amounting to ¥15.03 million on May 17, 2021[104]. - The total amount of the top ten sales contracts reached ¥32.04 million as of June 30, 2021[105].

Financial Performance - Operating revenue increased by 14.90% to CNY 220,526,389.51 compared to the same period last year[5] - Net profit attributable to shareholders was a loss of CNY 6,479,717.43, an improvement from a loss of CNY 13,629,825.58 in the previous year[5] - Net loss for Q1 2021 was CNY 10,018,159.48, an improvement from a net loss of CNY 21,808,347.96 in Q1 2020[27] - The company's gross profit margin decreased to -8.0% in Q1 2021 from -8.5% in Q1 2020[26] - Basic and diluted earnings per share for Q1 2021 were both CNY -0.0476, an improvement from CNY -0.1002 in Q1 2020[28] - The company’s basic and diluted earnings per share were both negative CNY 0.0371 in Q1 2021, an improvement from negative CNY 0.0892 in Q1 2020[31] - Total comprehensive loss for the period was CNY 5,046,554.98, compared to a total comprehensive loss of CNY 12,137,281.76 in the same period last year[31] Cash Flow and Liquidity - Net cash flow from operating activities improved to a loss of CNY 77,269,913.00 from a loss of CNY 209,895,446.42 in the previous year[5] - The net cash flow from operating activities was -76,194,793.59, an improvement from -104,358,870.11 in the previous year, indicating a reduction in cash outflow[37] - Cash and cash equivalents decreased by 47.81% to CNY 132,094,957.75 due to increased payments to suppliers and loan repayments[13] - Cash and cash equivalents at the end of Q1 2021 stood at CNY 90,133,011.43, compared to CNY 69,632,188.70 at the end of Q1 2020, marking a 29.4% increase[34] - The cash flow from investment activities was -14,677,470.49, worsening from -6,907,763.16 year-over-year, indicating increased cash outflow for investments[37] - The total cash outflow from operating activities was 291,148,026.80, down from 333,158,543.73, indicating a decrease of about 12.6%[37] Assets and Liabilities - Total assets decreased by 6.56% to CNY 1,812,609,157.52 compared to the end of the previous year[5] - Total liabilities decreased to CNY 612,590,515.48 in Q1 2021 from CNY 730,315,845.21 in Q1 2020[26] - Total current assets decreased to ¥1,045,455,245.94 from ¥1,183,411,470.65 as of December 31, 2020, representing a decline of approximately 11.6%[16] - Total non-current assets increased to ¥767,153,911.58 from ¥756,509,258.75, showing a growth of about 1.8%[17] - The total equity attributable to shareholders decreased to ¥813,171,613.81 from ¥819,651,331.24, a decrease of approximately 0.4%[19] - The company reported a significant increase of 92.63% in notes payable, totaling CNY 39,783,440.49, due to the issuance of bank acceptance bills[14] Shareholder Information - The number of shareholders reached 16,794, with the top ten shareholders holding a total of 83,000,000 shares, representing 61.43% of total shares[10] Expenses and Investments - Research and development expenses increased to CNY 11,230,894.54 in Q1 2021, up 19.3% from CNY 9,412,519.59 in Q1 2020[26] - The company incurred interest expenses of CNY 2,584,675.01 in Q1 2021, down from CNY 6,407,765.81 in Q1 2020, indicating a reduction of 59.6%[30] - The cash paid for investments was 12,500,000.00, significantly higher than 400,000.00 in the same period last year, indicating a substantial increase in investment activity[37] Other Income and Receivables - Other income increased by 48.22% to CNY 8,157,763.14 due to an increase in government subsidies received[14] - The company reported a significant increase in other income to CNY 8,157,763.14 in Q1 2021, compared to CNY 5,503,778.14 in Q1 2020[26] - The company reported a significant increase in other receivables, rising to ¥128,463,785.67 from ¥122,974,099.27, an increase of approximately 4.0%[16]

Financial Performance - Operating revenue decreased by 9.80% to CNY 728,542,720.32 for the first nine months compared to the same period last year[6] - Net profit attributable to shareholders decreased by 136.54% to a loss of CNY 22,209,873.66 for the first nine months compared to the same period last year[6] - The company's net profit for the first nine months of 2018 was CNY 728,542,720.32, down 9.8% from CNY 807,695,255.32 in the same period last year[26] - The total profit for the first nine months of 2018 was a loss of ¥28,338,424.61, compared to a profit of ¥44,296,589.39 in the same period last year[31] - The net profit for Q3 2018 was a loss of ¥18,021,594.18, compared to a profit of ¥15,267,326.58 in Q3 2017, indicating a significant decline[28] Assets and Liabilities - Total assets increased by 38.13% to CNY 2,083,769,878.61 compared to the end of the previous year[6] - The total assets increased to ¥2,083,769,878.61, up from ¥1,508,579,531.48 at the beginning of the year[19] - Total liabilities rose to CNY 945,280,159.90, compared to CNY 607,762,936.63 at the beginning of the year, marking an increase of 55.5%[24] - The company's cash and cash equivalents decreased to CNY 88,722,739.34 from CNY 200,725,512.08 at the beginning of the year, a decline of 55.8%[23] Cash Flow - Cash flow from operating activities showed a net outflow of CNY 231,231,283.82 for the first nine months[6] - The net cash flow from operating activities was -¥231,231,283.82, slightly worse than the previous year's -¥224,627,276.22[35] - The cash flow from operating activities showed a net outflow of -¥62,847,347.62, an improvement from -¥258,459,590.36 in the previous year[38] Inventory and Receivables - Inventory increased by 76.31% to CNY 258,060,651.23 due to unsold sales during the reporting period[14] - Accounts receivable increased to CNY 765,301,305.09 from CNY 684,451,602.84 at the beginning of the year, reflecting a growth of 11.8%[23] - Inventory levels rose to CNY 130,827,189.04, up 47.7% from CNY 88,536,680.27 at the beginning of the year[23] Expenses and Financials - Financial expenses increased by 267.57% to ¥9,528,885.39, attributed to the expansion of bank borrowings and rising interest costs[15] - Research and development expenses for the first nine months of 2018 were CNY 41,116,466.70, an increase of 14.3% compared to CNY 35,886,312.49 in the same period last year[26] - The company's operating costs for Q3 2018 were ¥156,380,119.13, a decrease of 8% from ¥169,867,263.49 in Q3 2017[31] Shareholder Information - The number of shareholders reached 17,188, indicating a broadening of the shareholder base[10] Government Support - The company received government subsidies totaling CNY 1,271,994.79 during the reporting period[9] - Other income decreased by 83.49% to ¥967,650.53, primarily due to a reduction in government subsidies[15] Future Outlook - The company anticipates a potential loss in net profit by the end of the next reporting period, mainly due to a slowdown in telecom operators' investment and increased production costs[16]

Important Notice [Important Notice](index=3&type=section&id=%E4%B8%80%E3%80%81%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The board, supervisory board, and senior management affirm the report's truthfulness and completeness, noting it remains unaudited - The Board, Supervisory Board, and senior management guarantee the quarterly report's truthfulness, accuracy, and completeness, free from misstatements or omissions[8](index=8&type=chunk) - The company's 2018 first-quarter report is unaudited[5](index=5&type=chunk) Company Profile [Key Financial Data](index=3&type=section&id=2.1%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) In Q1 2018, the company's performance significantly declined, with operating revenue down 5.27% and net profit attributable to shareholders plummeting 69.28% due to lower product prices and gross margins, resulting in negative and expanding operating cash flow 2018 First Quarter Key Financial Data | Indicator | Current Period | Prior Year Period | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 269,139,935.03 | 284,111,152.79 | -5.27% | | Net Profit Attributable to Shareholders (RMB) | 8,325,626.21 | 27,104,211.19 | -69.28% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (RMB) | 7,589,646.97 | 26,976,878.07 | -71.87% | | Net Cash Flow from Operating Activities (RMB) | -129,939,762.50 | -108,439,604.71 | Not Applicable | | Basic Earnings Per Share (RMB/share) | 0.0612 | 0.2657 | -76.97% | | Weighted Average Return on Net Assets (%) | 0.95% | 5.73% | Decrease of 4.78 percentage points | - Non-recurring gains and losses totaled **RMB 735,979.24** for the period, primarily from entrusted investments and government subsidies[9](index=9&type=chunk)[10](index=10&type=chunk) [Shareholder Information](index=5&type=section&id=2.2%20%E6%88%AA%E6%AD%A2%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E6%B5%81%E9%80%9A%E8%82%A1%E4%B8%9C%EF%BC%88%E6%88%96%E6%97%A0%E9%99%90%E5%94%AE%E6%9D%A1%E4%BB%B6%E8%82%A1%E4%B8%9C%EF%BC%89%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of Q1 2018, the company had 17,546 shareholders, with the top ten holding over 60% of restricted shares, led by Xu Aimin at 25.22% - At the end of the reporting period, the company had **17,546 shareholders**[12](index=12&type=chunk) Top Five Shareholders' Holdings | Shareholder Name | Number of Shares Held | Percentage of Total Share Capital (%) | Share Nature | | :--- | :--- | :--- | :--- | | Xu Aimin | 34,971,428 | 25.22 | Domestic Natural Person | | Shanghai Financial Development Investment Fund (Limited Partnership) | 16,558,441 | 11.94 | Domestic Non-State-Owned Legal Person | | Wang Xiaofu | 11,127,273 | 8.02 | Domestic Natural Person | | Zhang Fan | 8,742,857 | 6.30 | Domestic Natural Person | | Lu Zhongming | 7,153,247 | 5.16 | Domestic Natural Person | Significant Events [Analysis of Significant Changes in Key Financial Indicators](index=6&type=section&id=3.1%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Significant changes occurred across financial statements, with non-current assets and construction in progress surging, net profit declining 69.28% due to margin erosion, and cash flows shifting in investing and financing activities Significant Changes in Key Accounting Statement Items | Statement Item | Period-End Balance/Current Period Amount (RMB) | Year-Beginning Balance/Prior Year Period (RMB) | Change Rate (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Other Non-current Assets | 70,000,000.00 | 231,900.00 | 30085.42% | Due to payment for equity acquisition | | Construction in Progress | 30,244,018.41 | 1,549,209.59 | 1852.22% | Due to construction of third-phase factory auxiliary projects | | Other Current Assets | 1,576,281.99 | 85,952,188.48 | -98.17% | Due to decrease in wealth management product purchases | | Net Profit Attributable to Shareholders | 8,325,626.21 | 27,104,211.19 | -69.28% | Due to decrease in product prices and gross margin | | Net Cash Flow from Investing Activities | -9,229,891.90 | 14,284,796.13 | -164.61% | Due to increased external investments | | Net Cash Flow from Financing Activities | 48,539,444.44 | -42,125,503.78 | Not Applicable | Due to increased bank borrowings | [Other Significant Matters](index=7&type=section&id=3.2%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D%E5%92%8C%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88%E7%9A%84%E5%88%86%E6%9E%90%E8%AF%B4%E6%98%8E) The company reported no significant event progress, no overdue unfulfilled commitments, and no profit warnings for the period - The company has no significant matters requiring explanation[15](index=15&type=chunk) - The company has no overdue unfulfilled commitments[15](index=15&type=chunk) - The company has not predicted a potential loss or significant change in cumulative net profit from the beginning of the year to the end of the next reporting period[16](index=16&type=chunk) Appendix [Financial Statements](index=8&type=section&id=4.1%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's unaudited consolidated and parent company financial statements for Q1 2018, including the balance sheet, income statement, and cash flow statement [Consolidated Balance Sheet](index=8&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of March 31, 2018, the company's total assets were RMB 1.529 billion, a 1.36% increase from the beginning of the year, with total liabilities at RMB 645 million and owner's equity attributable to the parent company at RMB 884 million Consolidated Balance Sheet Key Items (2018-03-31) | Item | Period-End Balance (RMB) | Year-Beginning Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 1,529,072,085.73 | 1,508,579,531.48 | | Total Liabilities | 644,847,487.68 | 632,680,559.64 | | Total Owner's Equity Attributable to Parent Company | 884,224,598.05 | 875,898,971.84 | [Consolidated Income Statement](index=12&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In Q1 2018, the company's total operating revenue was RMB 269.14 million, a 5.27% year-on-year decrease, and net profit attributable to parent company shareholders was RMB 8.33 million, a significant 69.28% year-on-year decline Consolidated Income Statement Key Items (January-March 2018) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 269,139,935.03 | 284,111,152.79 | | Operating Profit | 9,735,643.18 | 32,604,789.05 | | Total Profit | 10,081,626.20 | 32,754,592.72 | | Net Profit Attributable to Parent Company Shareholders | 8,325,626.21 | 27,104,211.19 | [Consolidated Cash Flow Statement](index=15&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In Q1 2018, net cash flow from operating activities was negative RMB 130 million, with net outflow from investing activities at RMB 9.23 million due to increased investments, and net inflow from financing activities at RMB 48.54 million primarily from bank borrowings, resulting in an ending cash and cash equivalents balance of RMB 87.48 million Consolidated Cash Flow Statement Key Items (January-March 2018) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -129,939,762.50 | -108,439,604.71 | | Net Cash Flow from Investing Activities | -9,229,891.90 | 14,284,796.13 | | Net Cash Flow from Financing Activities | 48,539,444.44 | -42,125,503.78 | | Period-End Cash and Cash Equivalents Balance | 87,481,903.54 | 64,360,845.78 | [Audit Report](index=18&type=section&id=4.2%20%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This quarterly report is unaudited, therefore an audit report is not applicable - The audit report is not applicable (√ Not Applicable)[38](index=38&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2018 was ¥501,699,760.66, a decrease of 8.08% compared to ¥545,820,723.46 in the same period last year[22]. - The net profit attributable to shareholders of the listed company was -¥5,588,934.35, representing a decline of 112.28% from ¥45,511,759.63 in the previous year[22]. - The basic earnings per share for the first half of 2018 was -¥0.0403, a decrease of 109.53% from ¥0.4227 in the same period last year[23]. - The weighted average return on net assets was -0.64%, a decrease of 9.08 percentage points from 8.44% in the previous year[23]. - The company experienced a net loss attributable to shareholders of ¥5,588,934.35, compared to a profit of ¥45,511,759.63 in the previous period[104]. - Operating profit turned negative at -¥1,553,338.70 compared to a profit of ¥47,987,480.13 in the previous period[103]. - Net profit decreased significantly to -¥2,403,420.74 from ¥45,511,759.63, indicating a decline of approximately 105.28% year-over-year[104]. - The company reported a significant increase in financial expenses to ¥5,477,079.46 from ¥2,264,428.51, an increase of approximately 142.00% year-over-year[103]. Cash Flow - The net cash flow from operating activities was -¥198,120,336.96, compared to -¥165,868,407.00 in the same period last year, indicating a worsening cash flow situation[22]. - The net cash flow from investing activities was CNY -190.58 million, attributed to increased investments in acquisitions and subsidiary facilities[39]. - The net cash flow from financing activities was CNY 291.07 million, an increase of 6.72% compared to the previous year[38]. - Cash and cash equivalents decreased by 38.81% to ¥131,727,721.14 from ¥215,276,301.16 due to increased external investment payments during the reporting period[43]. - The ending cash and cash equivalents balance was CNY 80,878,983.93, a decrease from CNY 306,563,945.22 in the previous period[110]. - Total cash outflow from operating activities was CNY 814,481,835.85, up from CNY 640,975,138.37 in the previous period[109]. Assets and Liabilities - The total assets increased by 29.29% to ¥1,950,402,372.97 from ¥1,508,579,531.48 at the end of the previous year[22]. - The net assets attributable to shareholders decreased by 1.99% to ¥858,426,918.42 from ¥875,898,971.84 at the end of the previous year[22]. - Total liabilities amounted to CNY 1,001,849,153.95, compared to CNY 632,680,559.64, marking a significant rise[99]. - Current liabilities totaled CNY 995,530,601.99, up from CNY 629,471,546.40, indicating a significant increase in short-term obligations[98]. - The company's equity attributable to shareholders decreased to CNY 858,426,918.42 from CNY 875,898,971.84, a decline of about 2%[99]. Investments and Subsidiaries - The company added 4 new subsidiaries during the reporting period, resulting in an increase in product variety and changes in profit composition[41]. - The company increased its investment in active product research and development, focusing on expanding IoT technology applications[36]. - The company operates in the communication equipment manufacturing industry, focusing on the R&D, manufacturing, and sales of wireless communication devices and related products[131]. Shareholder Information - The largest shareholder, Xu Aimin, holds 34,971,428 shares, accounting for 25.22% of the total shares[82]. - The second largest shareholder, Shanghai Financial Development Investment Fund, holds 16,558,441 shares, representing 11.94% of the total shares[82]. - The company had a total of 138,670,000 shares, with 104,670,000 shares under limited sale conditions before the change, which decreased to 37,641,428 shares after the change, representing a reduction of 67,028,572 shares[77]. - The unlimited sale shares increased from 34,000,000 to 101,028,572 shares, reflecting an increase of 67,028,572 shares, which is a 197.7% increase[77]. - The company reported that there were no changes in the number of shares held by the top ten shareholders during the reporting period[82]. Risks and Challenges - The company faced risks including declining gross margins, market competition, and uncertainties in technology research and development[7]. - The company faces increased operational pressure due to reduced capital expenditure from telecom operators and intensified price competition in the industry[36]. - The company faces risks related to product price fluctuations and declining gross margins due to increased competition and procurement policies from major telecom operators[50]. Compliance and Regulations - The company has confirmed compliance with environmental regulations and is not listed as a key pollutant discharger by the Nanjing Environmental Protection Bureau[70]. - There were no significant non-operating fund occupation issues by controlling shareholders or related parties[7]. - The company has not reported any major related party transactions or significant changes in its equity incentive plans during the reporting period[63]. Accounting Policies - The company adheres to the enterprise accounting standards, ensuring that financial statements reflect its financial status and operating results accurately[135]. - The company recognizes revenue when the ownership risks and rewards of goods are transferred to the buyer, with domestic sales confirmed upon customer receipt and export sales confirmed upon customs clearance[194]. - The company uses the aging analysis method to assess bad debt provisions for accounts receivable, with specific percentages applied based on the aging of receivables[164].

Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB, representing a year-over-year growth of 15%[19]. - In 2020, the company's operating revenue reached ¥1,161,584,254.40, a year-on-year increase of 0.70% compared to ¥1,153,549,656.06 in 2019[26]. - The net profit attributable to shareholders was ¥31,770,455.65, representing a significant increase of 34.29% from ¥23,657,423.47 in 2019[26]. - The basic earnings per share for 2020 was ¥0.2336, up 34.95% from ¥0.1731 in 2019[27]. - The company reported a net cash flow from operating activities of ¥70,099,214.69, a 62.72% increase from ¥43,080,733.09 in 2019[26]. - The company aims to achieve a gross margin of 30% in the upcoming fiscal year, up from 28% in the previous year[19]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[19]. Dividend Policy - The company plans to distribute a cash dividend of 0.53 CNY per 10 shares, totaling 7.208 million CNY based on a total share capital of 136 million shares as of December 31, 2020[7]. - In 2020, the company distributed cash dividends of 0.53 RMB per 10 shares, totaling 7,208,000 RMB, which accounted for 22.69% of the net profit attributable to ordinary shareholders[109]. - The company has revised its profit distribution policy to prioritize cash dividends, with a minimum of 80% cash distribution for mature companies without major capital expenditures[107]. - The company has adhered to its three-year dividend return plan established in 2015 without any revisions during the reporting period[107]. Audit and Compliance - The company has received a standard unqualified audit report from Yongtuo Accounting Firm[6]. - The board of directors and senior management confirm the accuracy and completeness of the annual report, assuming legal responsibility for any misrepresentation[4]. - The company has not faced any non-standard audit opinions from its accounting firm[117]. - The company has not reported any instances of funds being occupied or overdue receivables during the reporting period[117]. Risks and Challenges - The company faces risks including uncertainties in industrial investment scale and progress, market risks, technology research and development risks, and fluctuations in raw material prices[11]. - The company’s future plans and strategies are subject to risks and do not constitute actual commitments to investors[8]. - The company is exposed to market competition risks due to the high number of manufacturers and aggressive pricing strategies in the telecom equipment sector[97]. - The company is at risk of declining gross margins due to intense competition and potential price reductions from telecom operators[102]. Market Expansion and Strategy - The company is expanding its market presence by entering the Southeast Asian market, targeting a 5% market share within the next two years[19]. - The company has initiated a strategic acquisition of a local tech firm, which is anticipated to enhance its technological capabilities and market reach[19]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[172]. - The company is exploring partnerships with international firms to enhance its global supply chain efficiency, aiming for a 15% reduction in operational costs[174]. Research and Development - Investment in R&D has increased by 25%, focusing on AI and cloud computing technologies to drive future growth[19]. - The company is focusing on R&D projects related to 5G wireless network coverage and WiFi6+5G wireless network devices to enhance its core product offerings[51]. - Investment in R&D for new technologies increased by 30%, focusing on advanced communication solutions and materials[173]. - The company has launched two new products in the smart technology sector, which are anticipated to contribute an additional 200 million in revenue over the next year[173]. Corporate Governance - The company has not identified any significant deficiencies in internal control during the reporting period, and an internal control self-assessment report has been disclosed[192]. - The company actively participates in decision-making through independent directors, who provide professional advice to protect shareholder interests[188]. - The company’s governance structure complies with relevant regulations, ensuring the protection of shareholder rights and effective internal control systems[187]. Employee and Management - The total number of employees in the parent company and major subsidiaries is 1,346, with 645 in the parent company and 701 in subsidiaries[182]. - The company emphasizes a salary policy that aligns employee remuneration with company performance and ensures fairness and competitiveness[183]. - The company has implemented a training plan focusing on enhancing employee skills and capabilities through various training methods[184]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 3.5922 million yuan[178]. Legal Matters - The company is involved in significant litigation, with claims amounting to 246,000 RMB and 297,200 RMB in two separate cases, both currently under appeal[122]. - The company has faced a total of 686,240 RMB in claims related to another lawsuit, which is also in the appeals process[122]. - The company has no significant integrity issues, with no unfulfilled court judgments or large overdue debts during the reporting period[124]. Community Engagement - The company has invested a total of ¥131 million in poverty alleviation efforts, including ¥100 million for educational resources in impoverished areas[146][148]. - The company has actively participated in social welfare initiatives, including donations to local charities and educational institutions, reinforcing its community engagement[149]. - The company established Huamai Hope School in Guizhou and donated essential teaching materials, including educational technology[150].

Financial Performance - Operating revenue for the first nine months reached CNY 883,479,486.69, representing a year-on-year increase of 9.67%[7] - Net profit attributable to shareholders of the listed company was CNY 6,384,380.53, compared to a loss of CNY 2,503,484.78 in the same period last year[7] - Basic and diluted earnings per share were both CNY 0.0469, compared to a loss of CNY 0.0182 per share in the same period last year[7] - Net profit for Q3 2020 was CNY 17,714,429.52, an increase of 13.0% from CNY 15,711,013.94 in Q3 2019[28] - The net profit for Q3 2020 was ¥6.13 million, compared to a net loss of ¥3.08 million in Q3 2019, indicating a significant turnaround[32] - The total comprehensive income attributable to the parent company for Q3 2020 was ¥21.02 million, compared to ¥10.85 million in Q3 2019, reflecting a growth of 93.5%[30] Cash Flow - The net cash flow from operating activities for the first nine months was negative CNY 35,392,096.17, a decrease of 313.27% compared to the previous year[7] - The company's cash flow from operating activities decreased by 313.27%, resulting in a net cash outflow of ¥35,392,096.17 compared to a net inflow of ¥16,595,159.59 in the previous period[20] - Cash inflow from operating activities for the first three quarters of 2020 was CNY 939,935,500.37, down 18.2% from CNY 1,149,401,669.02 in the same period of 2019[34] - The net cash flow from operating activities for Q3 2020 was negative CNY 35,392,096.17, compared to a positive CNY 16,595,159.59 in Q3 2019[34] - Cash outflow from investment activities for the first three quarters of 2020 was CNY 27,183,940.98, a decrease of 91.6% from CNY 321,864,142.84 in the same period of 2019[34] - The net cash flow from investment activities for the parent company in Q3 2020 was negative CNY 7,762,174.35, compared to negative CNY 40,337,869.56 in Q3 2019[37] Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,167,901,372.10, a decrease of 3.13% compared to the end of the previous year[7] - The company's total assets decreased from ¥2,238,048,196.20 at the end of 2019 to ¥2,167,901,372.10 as of September 30, 2020, reflecting a decline of approximately 3.15%[21] - The total liabilities decreased from ¥1,318,707,254.94 to ¥1,296,248,071.67, a reduction of about 1.70%[21] - The company's total liabilities reached CNY 1,318,707,254.94, with current liabilities accounting for CNY 934,050,292.73[40] - Total current assets amounted to CNY 1,325,467,270.52 as of Q3 2020, reflecting a stable liquidity position[39] Shareholder Information - The total number of shareholders at the end of the reporting period was 19,270[10] - The largest shareholder, Xu Aimin, held 25.71% of the shares, totaling 34,971,428 shares[10] Investment and Expenses - Investment income dropped by 115.97%, with a loss of ¥76,738.67 compared to a gain of ¥480,515.05 in the same period last year[20] - Research and development expenses for Q3 2020 were CNY 15,997,282.57, up 38.5% from CNY 11,547,617.38 in Q3 2019[27] - The company reported a 67.11% decrease in employee compensation payable, from ¥17,701,794.76 to ¥5,821,614.32[20] - The company's inventory increased from ¥204,252,602.67 to ¥215,517,198.60, reflecting a growth of approximately 5.87%[19] Future Outlook - The company plans to expand its market presence and invest in new technologies to drive future growth[32] - The company is implementing new revenue recognition standards effective January 1, 2020, which may impact financial reporting[42]

Financial Performance - The company reported a significant increase in revenue for the first half of 2020, with total revenue reaching 500 million RMB, representing a 20% year-over-year growth[11]. - The company's operating revenue for the first half of 2020 was ¥556,558,261.13, representing a 25.52% increase compared to ¥443,395,049.70 in the same period last year[18]. - The net profit attributable to shareholders was -¥14,630,749.67, a decrease of 9.56% from -¥13,354,347.89 in the previous year[18]. - The net cash flow from operating activities was -¥74,452,301.48, a significant decline from ¥2,782,243.50 in the same period last year, marking a decrease of 2,775.98%[18]. - The company achieved a gross profit margin of approximately 20.3% in the first half of 2020, down from 24.1% in the previous year[133]. - The net loss for the first half of 2020 was RMB 27,739,961.62, compared to a net loss of RMB 17,937,438.17 in the first half of 2019, representing an increase in loss of 54.5%[134]. - The total comprehensive loss for the first half of 2020 was RMB 27,739,961.62, compared to a loss of RMB 17,937,438.17 in the same period last year[135]. Market Expansion and Strategy - User data indicates that the company has expanded its customer base by 15%, now serving over 1 million active users[11]. - The company has set a future outlook with a revenue target of 1 billion RMB for the full year 2020, indicating a 25% growth compared to the previous year[11]. - The company is actively pursuing market expansion strategies, targeting new regions in Southeast Asia, aiming for a 30% increase in market penetration by the end of 2021[11]. - The company is focusing on expanding its market presence in the 5G and IoT sectors, leveraging the growing demand for digital infrastructure[26]. - The company is currently involved in significant litigation matters, with claims amounting to 30,746,000 RMB and 48,866,000 RMB in separate cases[68][72]. Research and Development - The company has allocated 10% of its revenue towards research and development, focusing on innovative technologies in the telecommunications sector[11]. - The company is actively pursuing new product development and technological advancements to enhance its competitive edge in the telecommunications market[22]. - The company added 15 new patents during the reporting period, including 5 invention patents[36]. - Research and development expenses rose by 5.43% to 26,503,694.19 CNY as the company increased its R&D investment[40]. Financial Position - The total assets at the end of the reporting period were ¥2,159,658,247.49, down 3.50% from ¥2,238,048,196.20 at the end of the previous year[18]. - The company experienced a decrease in net assets attributable to shareholders, which stood at ¥785,760,204.39, down 2.69% from ¥807,504,558.33 at the end of the previous year[18]. - The weighted average return on net assets was -1.83% for the reporting period, slightly lower than -1.72% in the previous year[19]. - Total liabilities decreased from ¥1,318,707,254.94 in December 2019 to ¥1,305,850,381.90 in June 2020, a decline of about 1.3%[127]. - Total equity decreased from ¥919,340,941.26 in December 2019 to ¥853,807,865.59 in June 2020, a decline of approximately 7.1%[127]. Risks and Challenges - The company faces risks including market competition and raw material price fluctuations, which could impact future profitability[5]. - The company operates in a highly competitive communication equipment manufacturing industry, with significant risks of declining gross margins due to price competition and procurement policies from major telecom operators like China Mobile and China Telecom[53]. - The company is exposed to risks from fluctuations in raw material prices, which could affect operating costs and profitability[51]. - Future risks include potential misalignment in technology development with market needs, which could weaken the company's competitive position and market share[56]. Procurement and Contracts - The company has established a nationwide sales and service network covering all 31 provinces and regions[31]. - The company signed multiple procurement framework agreements for 2020, including a significant contract for 5G BBU integrated cabinets, which will remain effective until all obligations are fulfilled[80]. - The company is actively involved in the procurement of 5G front-haul passive coarse wave division equipment, with a framework agreement effective from March 31, 2020, to March 31, 2021, highlighting its commitment to 5G technology[82]. - The company has ongoing contracts for passive device procurement, with agreements remaining effective until all obligations are fulfilled and payments settled[85]. Shareholder Information - As of June 30, 2020, the company had a total of 136 million shares outstanding, with 34.97 million shares converted from restricted to unrestricted status[109]. - The top shareholder, Xu Aimin, holds 34,971,428 shares, representing 25.71% of the total shares[115]. - The second-largest shareholder, Wang Xiaofu, owns 11,127,273 shares, accounting for 8.18%[115]. - The total number of common shareholders reached 21,566 by the end of the reporting period[113]. Compliance and Governance - There are no reported instances of non-operational fund occupation by controlling shareholders, ensuring financial integrity[5]. - The company has not faced any environmental violations or penalties during the reporting period, adhering strictly to national environmental protection laws[103]. - The company has no strategic investors or major shareholder changes during the reporting period[118]. - The company’s financial statements are prepared based on the going concern assumption, indicating no significant issues affecting its ability to continue operations for at least 12 months[171].

Financial Performance - Operating revenue for the first quarter was CNY 191,927,890.07, representing a decrease of 8.90% year-on-year[5]. - The net profit attributable to shareholders of the listed company was negative CNY 13,629,825.58, compared to negative CNY 8,864,637.30 in the previous year[5]. - The weighted average return on equity was negative 1.70%, down from negative 1.14% year-on-year[5]. - The company reported a decrease in net profit from CNY 144,413,027.10 at the end of 2019 to CNY 130,783,201.52, a decline of about 9.5%[19]. - Net loss for Q1 2020 was ¥21,808,347.96, compared to a net loss of ¥12,270,892.95 in Q1 2019, representing an increase in loss of 77.5%[27]. - The company's gross profit margin decreased to -9.5% in Q1 2020 from -1.3% in Q1 2019[25]. - The company’s total comprehensive income for the period was -12,137,281.76 RMB, compared to -10,311,009.01 RMB in the previous year[29]. Cash Flow - Net cash flow from operating activities was negative CNY 209,895,446.42, worsening from negative CNY 115,274,409.17 in the same period last year[5]. - Total cash inflow from operating activities was 214,248,149.54 RMB, down 66.5% from 640,405,409.08 RMB in the same period last year[31]. - The company’s cash outflow from operating activities totaled 424,143,595.96 RMB, down 43.7% from 755,679,818.25 RMB in Q1 2019[32]. - The company incurred a net cash outflow from investing activities of -14,636,286.32 RMB, compared to -108,460,560.02 RMB in Q1 2019, showing a significant improvement[32]. - Cash inflow from financing activities was 240,367,942.64 RMB, a decrease of 25.7% from 323,000,000.00 RMB in Q1 2019[32]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,241,016,739.37, a slight increase of 0.13% compared to the end of the previous year[5]. - The total liabilities of the company were CNY 1,343,370,760.53, up from CNY 1,318,707,254.94 at the end of 2019[19]. - Short-term borrowings increased by 30.75% to CNY 403,900,000.00, attributed to increased bank loans[13]. - The company's equity decreased from CNY 919,340,941.26 at the end of 2019 to CNY 897,645,978.84, reflecting a decline of about 2.3%[19]. - Current liabilities totaled CNY 934,050,292.73, reflecting the company's short-term financial obligations[38]. Shareholder Information - The number of shareholders at the end of the reporting period was 23,226[9]. - Basic and diluted earnings per share for Q1 2020 were both -¥0.1002, compared to -¥0.0652 in Q1 2019[27]. - The company’s basic and diluted earnings per share were both -0.0892 RMB, compared to -0.0758 RMB in Q1 2019, reflecting a decrease of 17.8%[29]. Inventory and Receivables - Accounts receivable increased from CNY 699,506,315.79 at the end of 2019 to CNY 836,665,874.54, indicating a growth of about 19.6%[17]. - Inventory increased from CNY 204,252,602.67 at the end of 2019 to CNY 219,262,857.56, representing a growth of approximately 7.3%[17]. Financial Strategy and Changes - The company did not report any significant new product developments or market expansion strategies during this quarter[11]. - The company is implementing new revenue recognition standards effective January 1, 2020, which may impact future financial reporting[39]. - The company has a long-term investment of CNY 1,176,728.97, which may indicate strategic growth initiatives[37].