Financial Performance - The company's revenue for Q3 2021 was ¥1,230,202,112.38, a decrease of 40.63% compared to the same period last year[4]. - Net profit attributable to shareholders was ¥194,937,733.39, down 61.23% year-over-year[4]. - The net profit excluding non-recurring gains and losses was ¥223,564,048.50, a decrease of 42.89% compared to the same period last year[4]. - Basic earnings per share were ¥0.43, reflecting a decline of 61.26% year-over-year[5]. - Diluted earnings per share were ¥0.42, down 61.47% compared to the previous year[5]. - Total operating revenue for the first three quarters of 2021 was CNY 4,140,078,819.87, a decrease of 19.3% compared to CNY 5,128,237,726.45 in the same period of 2020[15]. - Net profit attributable to shareholders of the parent company for Q3 2021 was CNY 615,440,191.56, a decrease of 44.0% compared to CNY 1,100,082,610.16 in Q3 2020[16]. - Basic earnings per share for Q3 2021 was CNY 1.36, down from CNY 2.44 in Q3 2020[17]. - Other income for the first three quarters of 2021 was CNY 140,396,982.18, a decrease of 42.3% compared to CNY 243,301,992.80 in 2020[16]. - Investment income for the first three quarters of 2021 was CNY 27,760,393.19, down from CNY 51,053,671.45 in the same period of 2020[16]. Assets and Liabilities - Total assets at the end of the reporting period were ¥10,420,576,863.70, an increase of 5.39% from the end of the previous year[5]. - The company's current assets totaled RMB 6,693,741,414.09, slightly up from RMB 6,588,233,604.96 year-over-year, indicating a growth of about 1.6%[12]. - Total liabilities rose to RMB 2,070,305,302.78 from RMB 1,850,742,778.52, which is an increase of approximately 11.9%[13]. - The total assets amounted to 9,887,854,603.52 RMB, a decrease from 9,919,502,646.29 RMB[20]. - Total liabilities increased to 1,882,390,821.29 RMB from 1,850,742,778.52 RMB, reflecting a rise in financial obligations[22]. Cash Flow - The cash flow from operating activities for the year-to-date was ¥181,464,918.97, an increase of 19.35% compared to the previous year[5]. - Cash flow from operating activities for the first three quarters of 2021 was CNY 181,464,918.97, an increase of 19.4% compared to CNY 152,038,761.68 in the same period of 2020[18]. - The company reported a net cash flow from operating activities of CNY 4,920,451,358.73 for the first three quarters of 2021, down from CNY 5,493,525,989.26 in 2020[18]. - Cash flow from investment activities for Q3 2021 was -439,292,029.62 RMB, compared to -444,849,575.84 RMB in the same period last year, indicating a slight improvement[19]. - The net cash flow from financing activities was -93,704,881.07 RMB, compared to a positive cash flow of 81,780,012.34 RMB in the same quarter last year[19]. Equity - Shareholders' equity attributable to the parent company was ¥8,350,269,558.88, up 3.90% from the end of the previous year[5]. - The equity attributable to shareholders increased to RMB 8,350,269,558.88 from RMB 8,037,109,890.20, showing a growth of about 3.9%[14]. - The total equity attributable to shareholders reached approximately $8.04 billion[23]. - The total liabilities and equity amounted to approximately $9.89 billion[23]. - The undistributed profits stood at approximately $5.88 billion[23]. Investments and Expenses - Research and development expenses for the first three quarters of 2021 were CNY 1,283,140,110.39, slightly down from CNY 1,289,326,234.98 in 2020[15]. - Total cash inflow from investment activities for the first three quarters of 2021 was CNY 3,552,477,674.12, a decrease of 47.4% compared to CNY 6,738,636,872.60 in 2020[18]. - The company received cash from investments totaling 3,686,431,772.45 RMB, down from 5,865,789,066.16 RMB year-over-year[19]. Accounting Changes - The company adopted the revised accounting standards for leases effective January 1, 2021, impacting the recognition of lease liabilities and right-of-use assets[24]. - The company confirmed lease liabilities based on remaining lease payments and incremental borrowing rates as of January 1, 2021[24]. - The company applied the new lease accounting policy consistently across all contracts[24]. - The adjustments to the carrying amount of right-of-use assets were made based on prepaid rent[24].

Financial Performance - The company reported a significant increase in revenue for the first half of 2021, with a year-on-year growth of 30%[12]. - The company's operating revenue for the first half of 2021 was approximately CNY 2.91 billion, a decrease of 4.78% compared to the same period last year[18]. - The net profit attributable to shareholders for the same period was approximately CNY 420.50 million, down 29.60% year-on-year[18]. - The net profit after deducting non-recurring gains and losses was approximately CNY 278.40 million, a decline of 49.96% compared to the previous year[18]. - The basic earnings per share for the first half of 2021 was CNY 0.93, down 29.55% year-on-year[19]. - The comprehensive gross margin for the first half of 2021 was 48.94%, a decrease of 2.69 percentage points year-on-year, with a net profit margin of 14.45%, down 5.10 percentage points year-on-year[40]. - The company achieved a revenue of 2.91 billion CNY in the first half of 2021, a decrease of 4.78% compared to 3.06 billion CNY in the same period of 2020[40]. - The company reported a net loss of approximately ¥364.84 million for the first half of 2021[137]. - The total comprehensive income for the first half of 2021 was ¥404,713,287.67, a decrease of 34.69% from ¥620,601,218.40 in the same period of 2020[123]. User Growth and Market Expansion - User data showed a rise in active users, reaching 5 million by the end of June 2021, up from 3.5 million in the same period last year, indicating a growth rate of approximately 42.9%[12]. - The company is expanding its market presence in Southeast Asia, targeting a 15% market share by the end of 2022[12]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[135]. - Market expansion efforts include entering three new international markets, expected to increase customer base by 20%[110]. Research and Development - The company has allocated 20% of its annual budget towards research and development to foster innovation and maintain competitive advantage[12]. - R&D expenses for the first half of 2021 were 899 million CNY, an increase of 7.68% from 835 million CNY in the first half of 2020, accounting for 30.88% of total revenue[40]. - The company has applied for and authorized over 5,900 patents, reflecting its strong commitment to innovation and R&D investment[35]. - The company is investing heavily in R&D, with a budget allocation of $5 billion for new technologies and product development in the upcoming fiscal year[110]. Strategic Acquisitions and Partnerships - A strategic acquisition of a smaller tech firm was completed, aimed at bolstering the company's R&D capabilities in AI and IoT technologies[12]. - The company has established partnerships with major global brands, including Samsung, Google, and Amazon, serving millions of users worldwide[23]. - The company has established strategic partnerships with several well-known ODM clients, successfully entering the supply chain of first-tier terminal brands[48]. - The company completed two strategic acquisitions in the last quarter, enhancing its technological capabilities and market presence[110]. Financial Position and Assets - The company's total assets at the end of the reporting period were approximately CNY 9.95 billion, an increase of 0.62% from the end of the previous year[18]. - The company's overall financial condition is strong, with a current ratio of 3.81 and a debt-to-asset ratio of 20.31% as of June 30, 2021[40]. - The company's total liabilities amounted to CNY 2,381,279,964.87, up from CNY 1,746,203,446.39 at the end of 2020[120]. - The total equity attributable to shareholders was CNY 8,082,108,653.55 as of June 30, 2021, down from CNY 8,202,077,789.91 at the end of 2020[120]. Risks and Challenges - The management highlighted potential risks related to supply chain disruptions, particularly in semiconductor availability, which could impact production timelines[5]. - The company faces industry risks due to cyclical fluctuations in the semiconductor industry, which may affect demand for chips[61]. - The competitive landscape is intensifying, with potential profit margin compression due to increased competition from both domestic and international players[61]. - The pandemic has disrupted the global manufacturing and supply chain of the semiconductor industry, leading to weakened market demand and potential adverse effects on future operations[62]. Corporate Governance and Compliance - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period, reflecting good governance practices[84]. - There are no significant lawsuits or arbitration matters reported during the reporting period, indicating a stable legal environment for the company[86]. - The company has not faced any significant regulatory penalties or compliance issues during the reporting period, maintaining a good integrity status[87]. - The company has committed to ensuring that all directors and senior management will faithfully and diligently perform their duties to protect the legitimate rights and interests of the company and all shareholders[83]. Future Outlook - Future outlook indicates a projected revenue growth of 15% year-over-year for the next quarter, driven by new product launches and market expansion strategies[110]. - New product lines are anticipated to launch in Q1 2024, with expected sales contributing an additional $2 billion in revenue[110]. - The company has revised its earnings guidance upwards, now forecasting EPS of $3.50 for the next quarter, up from previous estimates[110]. - Customer satisfaction ratings have improved, with a reported increase of 10% in positive feedback from users[110].

Financial Performance - Operating income rose by 5.07% to CNY 1,418,941,884.80 year-on-year[4] - Net profit attributable to shareholders decreased by 23.51% to CNY 156,577,213.23 compared to the same period last year[4] - Basic earnings per share decreased by 20.45% to CNY 0.35[4] - The weighted average return on equity decreased by 1.2 percentage points to 1.92%[4] - Total operating revenue for Q1 2021 was approximately ¥1.42 billion, an increase of 5.06% compared to ¥1.35 billion in Q1 2020[22] - Net profit for Q1 2021 was approximately ¥156.58 million, a decrease of 23.5% from ¥204.71 million in Q1 2020[23] - Operating profit for Q1 2021 was approximately ¥180.47 million, a decrease of 24.59% from ¥239.32 million in Q1 2020[22] - The total profit for Q1 2021 was approximately ¥180.10 million, compared to ¥239.29 million in Q1 2020[23] Cash Flow - Net cash flow from operating activities improved significantly, with a net amount of CNY 152,184,571.10, a 162.68% increase from the previous year[4] - Cash inflow from operating activities totaled CNY 1,750,985,761.80, an increase from CNY 1,429,858,493.04 year-over-year[26] - The net cash flow from operating activities was CNY 152,184,571.10, a significant improvement from a negative CNY 242,797,126.15 in the previous year[27] - Cash outflow from investing activities was CNY 1,323,925,325.09, compared to CNY 3,073,015,777.85 in the same quarter of 2020[27] - The net cash flow from investing activities was negative CNY 968,348,382.86, an improvement from negative CNY 1,097,578,930.34 year-over-year[27] - Cash inflow from financing activities was CNY 193,752,155.43, compared to CNY 31,408,573.80 in the same period of 2020[27] - The net cash flow from financing activities was CNY 189,649,255.12, up from CNY 27,057,528.43 in the previous year[27] Assets and Liabilities - Total assets increased by 4.67% to CNY 10,349,459,643.35 compared to the end of the previous year[4] - The company’s total liabilities increased to approximately $2.02 billion as of March 31, 2021, compared to $1.80 billion as of December 31, 2020, indicating a rise of about 12.4%[17] - Total liabilities increased to ¥2,104,882,175.52 from ¥1,850,742,778.52, representing a growth of approximately 13.7% year-over-year[18] - Total current assets increased to approximately $696.58 million as of March 31, 2021, compared to $658.82 million as of December 31, 2020, reflecting a growth of about 5.0%[16] - Total current assets amounted to ¥6,341,690,476.81, compared to ¥6,010,465,196.19, reflecting an increase of approximately 5.5%[20] - The company’s total equity stood at approximately ¥8.04 billion, reflecting a stable financial position[33] Shareholder Information - The company reported a total of 206,296,376 shareholders at the end of the reporting period[6] - The top shareholder, Zhang Fan, holds 45.06% of the shares, amounting to 93,000,000 shares[6] Government Support and Subsidies - The company received government subsidies amounting to CNY 8,001,245.19 related to normal business operations[5] Future Outlook and Strategic Plans - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[4] - Future outlook remains positive with strategic plans for market expansion and potential mergers and acquisitions being discussed[30] - The company is focusing on expanding its market presence and enhancing its product offerings through ongoing research and development initiatives[30]

Financial Performance - The company's operating revenue for 2020 was approximately CNY 6.69 billion, an increase of 3.31% compared to CNY 6.47 billion in 2019[16]. - The net profit attributable to shareholders decreased by 28.40% to CNY 1.66 billion from CNY 2.32 billion in 2019[16]. - The net cash flow from operating activities fell by 57.93% to CNY 1.21 billion, down from CNY 2.88 billion in 2019[16]. - The total assets at the end of 2020 were CNY 9.89 billion, a 25.98% increase from CNY 7.85 billion in 2019[18]. - The basic earnings per share for 2020 was CNY 3.67, a decrease of 29.01% from CNY 5.17 in 2019[19]. - The weighted average return on equity dropped to 23.06%, down 20.87 percentage points from 43.93% in 2019[19]. - The gross profit margin for 2020 was 52.27%, a decrease of 8.12 percentage points year-on-year, while the operating profit margin was 24.54%, down 14.45 percentage points year-on-year[39]. - Net profit attributable to the parent company was 1.659 billion RMB, reflecting a decline of 28.40% year-on-year due to intensified market competition and increased R&D expenditures[39]. - The company achieved a total revenue of 6.687 billion RMB in 2020, representing a growth of 3.31% compared to 6.473 billion RMB in 2019[39]. R&D and Innovation - R&D expenditure for 2020 was 1.754 billion RMB, an increase of 62.55% from 1.079 billion RMB in 2019, accounting for 26.23% of total revenue, up 9.56 percentage points from 16.67% in 2019[39]. - The company has over 5,600 patents, with a compound annual growth rate of 72% over the past six years[34]. - The company’s R&D investment has consistently exceeded 15% of revenue over the past three years, reflecting a strong commitment to innovation[78]. - The company successfully mass-produced its first active noise-canceling audio codec chip in 2020, marking its entry into the high-value acoustic chip market[85]. - The company aims to enhance its competitive edge in the smart mobile terminal market by leveraging biometric and human-computer interaction technologies[80]. Market and Industry Trends - The global automotive semiconductor market revenue was approximately $31.9 billion in 2020, projected to reach about $42.8 billion by 2024, indicating significant growth opportunities for domestic automotive chip development[27]. - The global smartphone market is expected to recover and exceed 2019 levels in 2021, with a projected CAGR of 3.6% from 2020 to 2025[78]. - The global IoT device count is projected to reach 41.6 billion by 2025, driven by investments in new infrastructure and consumer demand for connected devices[4]. - The demand for smart audio amplifiers surged due to the increasing need for high-quality audio performance in smartphones, with more mid-to-high-end models adopting stereo solutions[30]. - The automotive semiconductor market is facing a supply-demand imbalance, with increasing demand for automotive electronics as the industry shifts towards smart and connected vehicles[78]. Corporate Governance and Compliance - The company has received a standard unqualified audit report from Dahua Certified Public Accountants[2]. - The board of directors and senior management have confirmed the accuracy and completeness of the financial report[2]. - The company has implemented a robust internal control system, continuously improving its effectiveness through self-assessment and evaluation[195]. - The company’s governance structure complies with the requirements of the Company Law and the Securities Law, ensuring the protection of shareholder interests[193]. - The company strictly adhered to information disclosure requirements, ensuring timely and accurate reporting through designated channels[194]. Shareholder Returns and Dividends - The company plans to distribute a cash dividend of RMB 0.45 per share (including tax) based on the total share capital after deducting shares held in the repurchase account[3]. - The cash dividend distribution plan for 2020 was approved, with a cash dividend of RMB 0.45 per share, totaling approximately RMB 249.94 million[97][101]. - The net profit attributable to ordinary shareholders for 2020 was RMB 1.66 billion, with a cash dividend payout ratio of 15.06%[100]. - The company has committed to not competing with its expanded product lines and business scope, ensuring no conflicts of interest arise from family members or associated entities[106]. Risks and Challenges - The company has not identified any significant risk events during the reporting period, and potential risks and countermeasures are detailed in the report[5]. - The company faces industry risks due to cyclical fluctuations in the semiconductor industry, which could impact growth if macroeconomic conditions worsen[89]. - The COVID-19 pandemic has disrupted global manufacturing and supply chains, posing challenges to the company's operations and market demand[91]. - The company is exposed to market competition risks, with increasing competition from both international and domestic players potentially leading to reduced profit margins[90]. Employee and Management - The company has a global employee count exceeding 2,200, with over 90% in R&D roles and 50% holding master's degrees or higher[35]. - The company has 2,056 technical personnel, representing a significant portion of its workforce[188]. - The company has implemented a differentiated compensation strategy based on the value contribution of different positions and levels[189]. - The company has optimized its overall compensation system to enhance employee motivation and control labor costs[189]. Strategic Initiatives - The company aims to build a comprehensive platform around "physical perception, data processing, wireless transmission, and data security" to enhance its product offerings in smart terminals, IoT, and automotive electronics[25]. - The company plans to continue focusing on the smart terminal, IoT, and automotive electronics markets while accelerating international expansion through acquisitions[37]. - The company is committed to expanding its presence in the overseas market while strengthening strategic partnerships with mobile terminal brand clients[80]. - The company plans to launch new products and optimize product costs to improve profitability in the future[56].

Financial Performance - The company reported a significant increase in revenue for the first half of 2020, with a year-on-year growth of 25%[11]. - The company's operating revenue for the first half of the year reached ¥3,056,096,472.31, representing a 5.87% increase compared to ¥2,886,715,291.61 in the same period last year[16]. - Net profit attributable to shareholders decreased by 41.26% to ¥597,323,329.62 from ¥1,016,840,592.76 year-on-year[16]. - The gross profit margin for the first half of 2020 was 51.63%, a decrease of 10.10 percentage points year-on-year, while the net profit margin was 19.55%, down 15.68 percentage points year-on-year[35]. - The company reported a total profit for the first half of 2020 of CNY 583.10 million, down from CNY 1.17 billion in the same period of 2019, indicating a decline of about 50.2%[122]. - The company's total comprehensive income for the first half of 2020 was CNY 620.60 million, down from CNY 1.02 billion in the same period of 2019, a decline of about 39.2%[119]. Research and Development - Research and development expenses increased by 18%, reflecting the company's commitment to innovation and product enhancement[11]. - Research and development expenses reached 835 million yuan, an increase of 82.30% from 458 million yuan in the first half of 2019, accounting for 27.31% of total revenue[35]. - The company maintains a high R&D investment level, with R&D expenses accounting for no less than 15% of revenue over the past three years, resulting in over 4,600 patents filed and granted[30]. - The company has established a global R&D network with 18 centers across four continents, enhancing its innovation capabilities and product development[32]. Market Expansion and Strategy - The company provided a positive outlook for the second half of 2020, projecting a revenue growth of 20% to 30%[11]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2021[11]. - The company is actively pursuing international acquisitions to integrate top-tier R&D capabilities and patent resources, aiming to enhance its global market presence[32]. - The company aims to become a comprehensive IC design company focusing on "physical perception, information processing, wireless transmission, and security" in its strategic development[21]. Product Development - New product development includes the launch of an advanced fingerprint recognition chip, expected to enhance user experience and security features[11]. - The company is focusing on the development of ultra-thin under-display fingerprint technology, which is becoming the preferred solution for high-end 5G flagship models despite cost challenges[25]. - The company has launched next-generation voice products with improved echo cancellation and noise reduction capabilities[40]. - The company is focusing on expanding its IoT product offerings, with several products already in commercial use, including heart rate and blood oxygen monitoring sensors[41]. Financial Position and Assets - The company's total assets increased by 7.58% to ¥8,443,663,691.86 compared to ¥7,848,782,537.70 at the end of the previous year[16]. - The net assets attributable to shareholders rose by 6.45% to ¥6,855,078,078.21 from ¥6,439,424,033.10 at the end of last year[16]. - Cash and cash equivalents decreased by 35.67% to approximately CNY 2.26 billion, primarily due to acquisition payments[49]. - Inventory increased by 120.75% to approximately CNY 808.49 million, mainly due to the addition of new product lines from acquisitions[49]. Risks and Challenges - The company reported no significant risks during the reporting period, ensuring a stable operational environment[11]. - The semiconductor industry faces cyclical fluctuations, and the company is exposed to risks related to market competition and potential profit margin compression due to increasing domestic and international competition[60]. - The company is actively identifying and mitigating risks associated with the global pandemic, which has disrupted supply chains and manufacturing processes[60]. - The company has faced challenges in maintaining its technological edge, emphasizing the importance of continuous innovation in the rapidly evolving integrated circuit design sector[61]. Corporate Governance - The company has conducted three shareholder meetings during the reporting period, with all resolutions passed, demonstrating effective corporate governance[63]. - The company’s independent directors provided independent opinions on the adjustments and cancellations related to the stock option plans[80]. - The integrity status of the company and its controlling shareholders remains good, with no significant debts or court judgments unmet during the reporting period[78]. Shareholder Information - The largest shareholder, Zhang Fan, held 206,296,376 shares, representing 45.13% of the total shares, with 1,870,000 shares pledged[101]. - The company has a total of 195,000 restricted shares held by Sun Xiaoqian, which will be repurchased due to her departure[103]. - The company has no new strategic investors or general corporations becoming top ten shareholders during the reporting period[104]. Legal Matters - The company has ongoing significant litigation matters, including patent infringement disputes against Shanghai Silicom Microelectronics Technology Co., Ltd. and Shenzhen Dingxin Unlimited Technology Co., Ltd.[75]. - The company has received civil rulings dismissing multiple patent infringement lawsuits against it, indicating a favorable legal outcome[76]. Accounting and Financial Reporting - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the financial statements reflect the true financial condition and operating results[144]. - The company prepares consolidated financial statements based on its own and subsidiaries' financial reports, reflecting the overall financial position, operating results, and cash flows of the entire corporate group[153]. - The company recognizes foreign currency transactions at the spot exchange rate on the transaction date for accounting purposes[161].

Financial Performance - The company's operating revenue for 2019 was CNY 6,473,254,534.50, representing a 73.95% increase compared to CNY 3,721,291,685.55 in 2018[21]. - The net profit attributable to shareholders for 2019 was CNY 2,317,356,706.02, a significant increase of 212.10% from CNY 742,498,646.02 in the previous year[21]. - The basic earnings per share for 2019 reached CNY 5.17, which is a 213.33% increase compared to CNY 1.65 in 2018[22]. - The total assets of the company as of the end of 2019 were CNY 7,848,782,537.70, reflecting a 46.84% increase from CNY 5,345,221,338.17 in 2018[21]. - The cash flow from operating activities for 2019 was CNY 2,880,029,629.51, up 133.75% from CNY 1,232,098,069.07 in 2018[21]. - The gross profit margin for 2019 was 60.40%, an increase of 8.21% year-on-year, while the operating profit margin reached 38.99%, up 18.94% year-on-year[49]. - The company achieved a total revenue of 6.473 billion yuan in 2019, a 73.95% increase from 3.721 billion yuan in 2018, driven primarily by the large-scale commercialization of under-display optical fingerprint chips[49]. R&D and Innovation - Research and development expenses for 2019 amounted to 1.079 billion yuan, a 28.76% increase from 838 million yuan in 2018, representing 16.67% of total revenue[49]. - The company has applied for and authorized over 3,900 patents by the end of 2019, with a compound annual growth rate of 70% over the past six years[42]. - The company has established a global R&D presence with 17 centers across four continents, enhancing its innovation capabilities and product development[43]. - The company is committed to high-intensity R&D investment, focusing on innovation and internationalization through mergers and acquisitions to enhance its product offerings[101]. - The company has developed a complete ToF hardware and software solution for 3D facial recognition, set to launch in 2020[103]. Market Strategy and Growth - The company aims to become a comprehensive IC design firm, focusing on "physical perception, information processing, wireless transmission, and security" to build an IoT comprehensive platform[30]. - The integrated circuit industry in China is projected to reach a market size of ¥785.6 billion in 2020, with an expected growth rate of 20.3%[32]. - The global market for IoT devices is projected to grow to 1.25 trillion units by 2030, with a compound annual growth rate (CAGR) exceeding 12%[38]. - The company is focusing on expanding its presence in the IoT and automotive electronics markets, leveraging its strengths in human-machine interaction technologies[35]. - The company aims to leverage the Internet of Things (IoT) as a new development avenue over the next decade, creating an IoT comprehensive platform and ecosystem[100]. Corporate Governance and Risk Management - The company received a standard unqualified audit report from Dahua Certified Public Accountants[4]. - There are no significant risk events reported during the fiscal year, and potential risks have been detailed in the report[7]. - The company has not engaged in non-operational fund occupation by controlling shareholders or related parties[7]. - The company emphasizes the accuracy and completeness of the financial report, with key management personnel taking responsibility[8]. - The company has established a credit management system to mitigate credit risk associated with accounts receivable from customers[113]. Shareholder and Dividend Policy - The company plans to distribute a cash dividend of RMB 0.8 per share for the 2019 fiscal year, subject to shareholder approval[5]. - The cash dividend distribution plan for 2019 includes a cash dividend of RMB 8.00 per 10 shares, with a total cash distribution amounting to RMB 364.59 million, representing 15.73% of the net profit attributable to ordinary shareholders[121]. - The company emphasizes the importance of maintaining a clear and transparent dividend policy that aligns with shareholder interests, particularly for small and medium investors[119]. - The company is committed to ensuring that the rights and interests of minority shareholders are fully protected during the dividend distribution process[119]. Employee and Incentive Plans - The company completed the repurchase and cancellation of 566,890 restricted shares from 39 incentive recipients as part of the 2017 stock incentive plan[145]. - The company approved the stock option and restricted stock incentive plan at the annual general meeting on May 6, 2019, allowing for the grant of 2,232,341.5 stock options at an exercise price of RMB 105.33 per share and 800,000 restricted stocks at a grant price of RMB 52.67 per share[147]. - The incentive plan was designed to align the interests of employees with those of shareholders, promoting sustainable development of the company[147]. - The company’s independent directors provided independent opinions on the incentive plan, confirming its alignment with the company's sustainable development[149]. Financial Management and Investments - The company has engaged in cash asset management, with a total of ¥500,000,000 in directed asset management and ¥6,940,000,000 in structured deposits[159]. - The company has invested ¥4,430,000,000 in wealth management products, with a remaining balance of ¥750,000,000[159]. - The average annualized return rate across the financial products was approximately 4.14%[162]. - The company has diversified its investments across multiple banks, including China Construction Bank and CITIC Bank[163]. - The company plans to continue utilizing idle funds for financial investments in the future[161].