Financial Performance - The company's operating revenue for 2021 was ¥1,604,761,490.79, representing a 4.14% increase from ¥1,541,031,345.84 in 2020[24]. - The net profit attributable to shareholders for 2021 was ¥230,774,877.27, a decrease of 23.64% compared to ¥302,233,366.82 in 2020[24]. - The net profit attributable to shareholders, excluding non-recurring gains and losses, was CNY 175.06 million, a decrease of 35.95% compared to the previous year[27]. - The net cash flow from operating activities was CNY 153.92 million, down 54.42% year-on-year[27]. - Total revenue for the reporting period was CNY 1,604.76 million, representing a growth of 4.1% compared to the previous year[36]. - The net profit attributable to shareholders decreased to CNY 230.77 million, a reduction of CNY 71.46 million year-on-year[36]. - The diluted earnings per share was CNY 0.60, down 27.71% from CNY 0.83 in the previous year[27]. - The weighted average return on equity decreased to 11%, down 7.24 percentage points from the previous year[27]. Dividend Distribution - The company plans to distribute a cash dividend of ¥3 per 10 shares based on a total share capital of 405,890,000 shares as of December 31, 2021[7]. - The company has not implemented any capital reserve transfers or stock dividends in its profit distribution plan[7]. - The company plans to distribute cash dividends amounting to no less than 20% of the distributable profits for the year, as per the shareholder return mechanism approved in 2019[164]. - The company plans to distribute cash dividends of ¥121,767,000.00 for the fiscal year 2021, which represents 52.76% of the net profit attributable to shareholders[141]. Risk Management - There were no significant risks that materially affected the company's operations during the reporting period[9]. - The company has outlined potential risks in its management discussion and analysis section[9]. - The company acknowledges risks from economic downturns due to the pandemic and is prepared with online management and marketing strategies[99]. - The company is facing increased competition for high-end talent, leading to rising labor costs, and is implementing measures to attract and retain skilled professionals[99]. - The company is addressing potential budget cuts in government projects by diversifying into related sectors like social security and healthcare[102]. Research and Development - R&D investment for the year was CNY 378.45 million, an increase of 13.3% compared to the previous year[36]. - The total R&D investment amounted to ¥386,159,558.53, representing 24.06% of the operating revenue[75]. - The company employed 1,376 R&D personnel, accounting for 22.18% of the total workforce[76]. - The company has conducted 11 industry talent training sessions, training over 4,000 participants to enhance professional skills in the accounting and tax sectors[49]. Customer and Market Insights - The company achieved a B-end revenue of CNY 864.66 million, an increase of 4.9% year-on-year, with SaaS subscription service revenue accounting for 95.9% of B-end total revenue[36]. - The SaaS subscription service for small and medium enterprises has a customer retention rate of 85%, with a 69% increase in high-value customers[37]. - The SaaS service for tax agency clients achieved a 53% growth in paid users during the reporting period[37]. - The company aims to expand its innovative SaaS business by targeting lower-tier markets and continuously innovating products[37]. - The company is committed to providing comprehensive SaaS management tools and services to small and medium enterprises, enhancing their operational efficiency[47]. Governance and Compliance - The company emphasizes transparency and compliance in its governance structure, ensuring effective communication with shareholders and stakeholders[103]. - The company has established specialized committees under the board, including audit, nomination, compensation, and strategy committees[129]. - The company has not reported any significant changes in shareholder structure or voting rights during the reporting period[108]. - The company has maintained the independence of its operations, with no significant changes in competition or business overlap with controlling shareholders[106]. Shareholder Information - The company reported a total shareholding of 92,729,000 shares at the end of the reporting period, with no changes during the year[113]. - The total number of common shareholders at the end of the reporting period is 223,095,730 shares, representing 54.96% of the total shares[195]. - Zhang Zhenchao holds 92,300,000 shares, accounting for 22.74% of the total shares, making him the controlling shareholder[195]. - The company has a total of 223,095,730 shares with restricted trading conditions that will become tradable on June 30, 2024[197]. Internal Controls and Auditing - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[6]. - The audit report issued by Tianjian Accounting Firm was a standard unqualified opinion[6]. - The internal control audit report issued by Tianjian Accounting Firm confirmed the effectiveness of the financial reporting internal control as of December 31, 2021, with a standard unqualified opinion[146]. - The company has not reported any significant defects in internal controls related to financial or non-financial reporting[146]. Social Responsibility - The company has engaged in various social responsibility initiatives, including educational support in underdeveloped areas, benefiting over 11 rural schools[150]. - The company encourages employees to pursue external learning opportunities and provides funding for such educational endeavors[139].

Financial Performance - The company's operating revenue for Q3 2021 was ¥343,379,895.43, a decrease of 14.30% compared to the same period last year[7] - The net profit attributable to shareholders for Q3 2021 was ¥25,365,408.21, down 66.80% year-on-year[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥8,774,529.12, a decline of 88.14% compared to the same period last year[7] - The basic and diluted earnings per share for Q3 2021 were both ¥0.06, a decrease of 70.12% year-on-year[11] - Net profit for the third quarter of 2021 was ¥118,481,143.91, down from ¥165,170,654.37 in the same quarter of 2020, reflecting a decrease of approximately 28.3%[40] - Basic earnings per share for the third quarter of 2021 were ¥0.31, down from ¥0.45 in the same quarter of 2020, a decline of about 31.1%[43] Assets and Liabilities - The total assets at the end of Q3 2021 were ¥3,177,572,852.85, an increase of 13.81% compared to the end of the previous year[11] - Total current assets as of September 30, 2021, amount to ¥2,329,766,868.35, an increase from ¥2,014,488,764.06 at the end of 2020[29] - Total assets as of September 30, 2021, are ¥3,177,572,852.85, up from ¥2,792,097,899.85 at the end of 2020[29] - The total liabilities decreased from ¥1,016,190,190.63 in the previous period to ¥861,676,290.29, a reduction of about 15.3%[36] - Current liabilities totaled 919,127,450.86, with a notable component being employee compensation payable at 229,691,799.22[55] - Non-current liabilities were recorded at 97,062,739.77, reflecting a decrease of 7,721,486.61 from the previous period[55] Cash Flow - The company reported a net cash flow from operating activities of -¥178,406,476.20 for the year-to-date, reflecting a decrease of 285.93%[11] - Cash flow from operating activities for the first three quarters of 2021 was ¥942,690,066.32, compared to ¥990,171,480.84 in 2020, a decrease of approximately 4.8%[44] - The net cash flow from operating activities was -178,406,476.20 RMB, a decrease from 95,951,655.16 RMB in the previous period[46] - Cash inflow from investment activities totaled 773,958,513.87 RMB, compared to 619,210,218.88 RMB in the prior period[46] - The net cash flow from investment activities was -419,745,525.11 RMB, worsening from -181,518,817.00 RMB year-over-year[46] - Cash inflow from financing activities reached 1,045,941,792.17 RMB, significantly higher than 280,163,277.86 RMB in the previous period[48] - The net cash flow from financing activities was 422,161,704.27 RMB, recovering from -73,351,448.00 RMB in the prior year[48] Shareholder Information - Total number of common shareholders at the end of the reporting period is 16,697[21] - The largest shareholder, Ningbo Sichi Equity Investment Partnership, holds 223,095,730 shares, accounting for 54.96% of total shares[21] - The second largest shareholder, Zhang Zhenchao, holds 92,300,000 shares, representing 22.74% of total shares[21] Expenses and Investments - The company increased its investment in new product trials and development, leading to a rise in R&D and marketing expenses, which contributed to the decline in net profit[18] - The cash paid to employees increased to 914,800,542.07 RMB from 724,904,887.70 RMB, reflecting a growth in workforce costs[46] Government Support - The company received government subsidies amounting to ¥14,546,217.73 during the reporting period, contributing to its non-recurring gains[12] Accounting Changes - The company adopted new accounting standards for leases effective January 1, 2021, impacting the measurement of lease liabilities[57]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥683,822,893.24, representing a 13.34% increase compared to ¥603,312,125.66 in the same period last year[25]. - The net profit attributable to shareholders of the listed company was ¥93,430,472.57, up 4.62% from ¥89,307,660.52 in the previous year[25]. - Basic earnings per share for the first half of 2021 were ¥0.26, an increase of 8.33% from ¥0.24 in the same period last year[25]. - The company reported a net profit excluding non-recurring gains and losses of ¥68,793,445.37, which is a 3.94% increase from ¥66,184,474.45 in the same period last year[25]. - The diluted earnings per share also stood at ¥0.26, reflecting an 8.33% increase compared to the previous year[25]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion in Q2 2021, representing a 25% year-over-year growth[98]. - The company provided guidance for Q3 2021, expecting revenue to be between 1.6 billion and 1.8 billion, indicating a potential growth of 20% to 30%[100]. Cash Flow and Investments - The net cash flow from operating activities was -¥300,457,256.41, compared to -¥61,018,203.99 in the same period last year, indicating a significant decline[25]. - The company’s cash flow from investing activities was negative at ¥120,370,170.31, a significant decline from a positive cash flow of ¥12,234,833.99 in the previous year[59]. - The company’s cash flow from financing activities was positive at ¥472,993,122.83, compared to a negative cash flow of ¥73,194,711.88 in the same period last year[61]. - The company has increased its investment in financial products, resulting in trading financial assets rising by 243.53% to ¥121,542,261.67 from ¥35,380,000.00[62]. - Cash inflow from financing activities amounted to CNY 922,022,038.57, significantly higher than CNY 162,233,527.44 in the previous year[190]. Assets and Liabilities - The total assets at the end of the reporting period were ¥3,141,658,065.88, a 12.52% increase from ¥2,792,097,899.85 at the end of the previous year[25]. - Total liabilities decreased to CNY 851,020,812.08 from CNY 1,016,190,190.63, indicating a reduction of 16.3%[149]. - The company’s total liabilities to equity ratio improved to 0.37 from 0.57, indicating a stronger financial position[149]. - The total number of common shareholders at the end of the reporting period was 36,304[128]. Research and Development - Research and development expenses rose by 12.72% to ¥187,281,015.43, up from ¥166,151,488.43 in the prior year[59]. - The company is committed to continuous research and innovation, which is crucial for maintaining its leading position in the tax information technology sector[40]. - Research and development expenses for the first half of 2021 amounted to CNY 60,731,682.93, an increase of 11.5% compared to CNY 54,478,707.62 in the same period of 2020[170]. Market Position and Strategy - The company focuses on tax information technology, providing services to tax authorities, tax agents, small and medium enterprises, and large groups, aiming to improve tax collection efficiency[35]. - The company aims to transform tax personnel from operational roles to management roles through training and knowledge services, reflecting a shift in the industry[39]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2022[102]. - A strategic acquisition of a tech startup was announced, aimed at bolstering the company's capabilities in artificial intelligence[103]. Shareholder Information - The company has not disclosed any plans for profit distribution or capital reserve transfer to increase share capital during this reporting period[7]. - The board approved a share buyback program worth 200 million, intended to enhance shareholder value[106]. - The company is committed to maintaining a dividend payout ratio of 40% of net income, ensuring consistent returns to shareholders[107]. - The company plans to distribute cash dividends amounting to no less than 20% of the annual distributable profits for the years following its IPO[113]. Operational Efficiency - The company has established a comprehensive service system with over 1,800 service personnel across more than 200 service outlets[48]. - The customer renewal rate increased to over 83%, and the Net Promoter Score (NPS) continued to rise[50]. - The company has successfully implemented major tax information projects, including the National Golden Tax Phase III core project and the Natural Person Tax Management System, enhancing its brand reputation in the industry[41]. Challenges and Risks - The company faces high regional concentration risk, primarily operating in South and North China, which could impact future growth if market share is not expanded[75]. - There is uncertainty regarding sustained performance growth due to potential industry competition, market demand decline, and rising operational costs[75]. - The company’s tax system development is significantly influenced by national fiscal policies, which could adversely affect operational performance if policies change unfavorably[78].