Financial Performance - The company's operating revenue for Q3 2021 was ¥165,143,185.43, representing an increase of 18.11% year-over-year[7] - Net profit attributable to shareholders for the same period was ¥29,470,804.14, reflecting a year-over-year increase of 9.19%[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥11,305,096.68, showing a decrease of 58.11% compared to the previous year[7] - The total revenue for the first three quarters of 2021 reached ¥501,168,666.80, a significant increase of 62.0% compared to ¥309,279,492.37 in the same period of 2020[32] - The net profit for the first three quarters of 2021 was ¥41,665,084.91, compared to ¥2,902,532.32 in 2020, indicating a substantial growth[39] - The total operating costs for the first three quarters of 2021 were ¥475,698,070.19, up from ¥300,988,998.47 in 2020, reflecting a 58.0% increase[35] Assets and Liabilities - The total assets at the end of the reporting period reached ¥1,625,012,074.52, marking a 39.06% increase from the end of the previous year[9] - The total assets increased to ¥1,625,012,074.52, up from ¥1,168,528,095.24, representing an increase of 38.9%[31] - The total liabilities rose to ¥421,202,897.66, compared to ¥356,820,026.98 in the previous year, marking an increase of 17.9%[31] - The company's total assets as of the end of the reporting period were CNY 885,743,769.06, reflecting a slight decrease in current assets[49] - Current liabilities reached $352,949,697.48, remaining unchanged from the previous period[52] Shareholder Equity - The equity attributable to shareholders increased to ¥1,204,446,530.53, up 47.75% year-over-year[9] - The equity attributable to shareholders of the parent company increased to ¥1,204,446,530.53 from ¥815,167,930.73, reflecting a growth of 47.7%[31] - Shareholders' equity totaled $811,708,068.26, reflecting no change from the previous reporting period[53] Cash Flow - The company reported a significant increase in cash flow from operating activities, with a year-to-date cash flow of -¥23,801,524.73, an improvement of 71.47% compared to the previous year[7] - Cash inflow from operating activities totaled CNY 576,626,008.60, compared to CNY 336,969,749.48 in the previous period[43] - Net cash flow from operating activities was negative CNY 23,801,524.73, an improvement from negative CNY 83,432,166.59 in the previous period[46] - Cash inflow from financing activities was CNY 514,627,891.19, significantly higher than CNY 41,152,217.00 in the previous period[46] - Cash and cash equivalents at the end of the period reached CNY 381,005,139.40, up from CNY 119,492,787.93 in the previous period[46] Investments - The company reported a 999.44% increase in investment income, attributed to the revaluation of investments from the transfer of equity in a subsidiary[12] - The company reported an investment income of ¥18,151,389.40 for the first three quarters of 2021, compared to ¥1,650,962.13 in 2020, indicating a significant increase[35] - The company received CNY 345,614,789.60 from investment activities, a significant increase from CNY 3,652,217.00 in the previous period[46] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 13,447[13] - The company’s major shareholders include Shen Zhenyu with a 17.07% stake and Hu Deyong with a 9.14% stake, both of whom have pledged a portion of their shares[16] Research and Development - Research and development expenses for the first three quarters of 2021 amounted to ¥98,326,188.41, an increase from ¥79,135,677.88 in 2020, showing a growth of 24.2%[35] Corporate Actions - The company completed a non-public offering of A-shares, issuing 28,932,436 shares at a price of RMB 11.99 per share, raising a total of RMB 346,899,907.64[20] - The company won bids for 40% of the basic function equipment and advanced function equipment, and 50% of the advanced function card equipment in the China Mobile procurement, with an estimated total bid amount of approximately RMB 16,329,000[22] - The company transferred 26.67% equity in Nanjing Yunji Information Technology Co., Ltd. for RMB 8 million, reducing its holding to 28.15%[21] Compliance and Standards - The company has implemented new leasing standards affecting financial statements, with adjustments noted in current assets[49] - The company has implemented new leasing standards effective January 1, 2021, impacting financial statement adjustments[55] Management and Strategy - The company continues to focus on long-term growth strategies and market expansion initiatives[54] - The board of directors announced the financial results on October 27, 2021[56]

Financial Performance - The company's operating revenue for Q3 2021 was ¥165,143,185.43, representing an increase of 18.11% year-over-year[6]. - The net profit attributable to shareholders for the same period was ¥29,470,804.14, reflecting a year-over-year increase of 9.19%[6]. - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 58.11% to ¥11,305,096.68[6]. - The company reported a significant increase in net profit for the year-to-date period, up 578.89% to ¥45,043,495.46[6]. - Total operating revenue for the first three quarters of 2021 reached ¥501,168,666.80, a significant increase of 62.0% compared to ¥309,279,492.37 in the same period of 2020[32]. - Net profit for the third quarter of 2021 was ¥41,665,084.91, compared to ¥2,902,532.32 in the same quarter of 2020, indicating a substantial increase[36]. - Total comprehensive income attributable to the parent company was CNY 45,043,495.46, an increase of 6,634,844.88 compared to the previous period[38]. - Basic earnings per share (EPS) was CNY 0.1983, up from CNY 0.0345 in the previous period[38]. Assets and Liabilities - The total assets at the end of the reporting period reached ¥1,625,012,074.52, an increase of 39.06% compared to the end of the previous year[8]. - The company's total assets increased to ¥1,625,012,074.52 in Q3 2021 from ¥1,168,528,095.24 in Q3 2020, representing a growth of 38.9%[31]. - Total liabilities rose to ¥421,202,897.66 in Q3 2021, compared to ¥356,820,026.98 in Q3 2020, marking an increase of 18.0%[31]. - The company's equity attributable to shareholders increased by 47.75% to ¥1,204,446,530.53[8]. - The company's equity attributable to shareholders increased to ¥1,204,446,530.53 in Q3 2021 from ¥815,167,930.73 in Q3 2020, a growth of 47.7%[31]. Cash Flow - The cash flow from operating activities showed a net outflow of ¥23,801,524.73, a decrease of 71.47% compared to the previous year[6]. - Net cash flow from operating activities was negative CNY 23,801,524.73, an improvement from negative CNY 83,432,166.59 in the previous period[43]. - Cash received from sales of goods and services was CNY 563,787,060.84, compared to CNY 322,916,199.10 in the previous period, representing a significant increase[43]. - The ending cash and cash equivalents balance was CNY 381,005,139.40, up from CNY 119,492,787.93 in the previous period[45]. - The company reported a net increase in cash and cash equivalents of CNY 227,068,469.67 during the period[45]. Investments and Financing - The company successfully issued 28,932,436 new shares at a price of RMB 11.99 per share, raising a total of RMB 346,899,907.64, with net proceeds of RMB 342,055,605.68 after deducting issuance costs[19]. - The company transferred 26.67% equity of Nanjing Yunji Information Technology Co., Ltd. for RMB 8 million, resulting in an estimated gain of approximately RMB 16,389,200[20]. - The company secured a total bid amount of approximately RMB 16,329,000 from China Mobile for the procurement of aggregation and diversion equipment, with a winning share of 40% in two packages and 50% in one package[21]. - The company is actively progressing with its fundraising projects, utilizing RMB 65,111,083.68 to replace pre-invested self-raised funds[19]. - The company received CNY 345,614,789.60 from investment activities, indicating strong capital inflow[45]. Research and Development - Research and development expenses for the third quarter of 2021 were ¥98,326,188.41, up from ¥79,135,677.88 in the same quarter of 2020, reflecting a 24.2% increase[36]. Market Strategy - The increase in revenue was primarily driven by the acceptance of network visualization and 5G projects, as well as rapid growth in the intelligent system platform business[11]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[32]. - The company plans to continue expanding its market presence and investing in new technologies[41].

Financial Performance - The company's operating revenue for the first half of 2021 reached ¥336,025,481.37, representing a 98.29% increase compared to ¥169,463,176.15 in the same period last year [30]. - The net profit attributable to shareholders was ¥15,572,691.32, a significant recovery from a loss of ¥20,354,697.17 in the previous year [30]. - The net cash flow from operating activities was ¥36,167,725.81, compared to a negative cash flow of ¥29,487,864.31 in the same period last year [30]. - The company's total assets increased by 5.08% to ¥1,227,846,965.36 from ¥1,168,528,095.24 at the end of the previous year [30]. - The net assets attributable to shareholders rose to ¥831,101,835.90, reflecting a 1.95% increase from ¥815,167,930.73 at the end of the previous year [30]. - Basic earnings per share improved to ¥0.0783, compared to a loss of ¥0.1018 per share in the same period last year [30]. - The weighted average return on net assets increased by 4.46 percentage points to 1.89% from -2.57% in the previous year [30]. - The gross profit margin stood at 41.45%, showing a stable slight increase [83]. - The company achieved a revenue of 336.03 million RMB, representing a year-on-year increase of 98.29% [83]. - The net profit attributable to shareholders was 15.57 million RMB, marking a turnaround from loss to profit [83]. Shareholder Information - The company announced a cash dividend of 0.5 yuan per 10 shares (including tax) to all shareholders, with no stock bonus or capital increase planned [6]. - The company has not disclosed any significant changes in shareholder structure or stock movements during the reporting period [11]. - The total number of ordinary shareholders at the end of the reporting period was 14,648 [141]. - The largest shareholder, Shen Zhenyu, held 38,913,031 shares, representing 19.55% of the total shares, with 10 million shares pledged [143]. - The second-largest shareholder, Hu Deyong, held 20,846,266 shares, representing 10.47% of the total shares, with 6.63 million shares pledged [143]. - The company reported a significant reduction in shares held by management, with Qin Fang's shares decreasing by 71,155 due to equity incentive buybacks [149]. Risk Management - The company has detailed potential risks in the report, advising investors to review the discussion and analysis section for risk factors [8]. - The report includes a forward-looking statement risk declaration, indicating that future plans and strategies do not constitute a commitment to investors [7]. - There are no violations of decision-making procedures regarding external guarantees [8]. - The company has not engaged in any non-operational fund occupation by controlling shareholders or related parties [8]. - The company has not faced any issues with a majority of directors being unable to guarantee the report's authenticity [8]. Research and Development - The company's R&D investment accounted for 21.24% of revenue, with a total of 5 patents and 15 software copyrights granted during the reporting period [87]. - R&D expenses increased by 32.38% year-on-year to ¥71,367,768.43, reflecting a return to normal after pandemic-related policies in 2020 [90]. - The company is actively engaged in R&D in network visualization and domestic information technology, maintaining its technological leadership [87]. - The company is actively investing in R&D for new-generation network visualization infrastructure products and domestic information technology platforms to meet the demands of 5G network upgrades and information security [86]. Market Position and Strategy - The company continues to focus on intelligent system solutions, primarily in network visualization and intelligent system platform businesses, with no significant changes in its main operations during the reporting period [34]. - The company aims to enhance its product offerings and market presence in the fields of information security and industrial internet [34]. - The company is a pioneer in the network visualization field, leading in both technology and market share [55]. - The network visualization industry is experiencing rapid growth, with procurement peaks typically occurring in the fourth quarter of each year [54]. - The company maintains a competitive advantage in the smart systems sector with a comprehensive technology system and strong market share [62]. Financial Position - The company held cash and cash equivalents of ¥230,643,594.37, representing 18.78% of total assets, an increase of 48.75% from the previous year [91]. - Total current assets increased to CNY 920,604,442.98 as of June 30, 2021, up from CNY 885,743,769.06 at the end of 2020, representing a growth of approximately 3.1% [158]. - Total liabilities rose to CNY 396,446,321.11, up from CNY 356,820,026.98, indicating an increase of approximately 11.1% [163]. - Total equity attributable to shareholders increased to CNY 831,101,835.90 from CNY 815,167,930.73, a growth of about 1.5% [163]. - The company reported a total guarantee amount of RMB 15,000,000, which accounts for 1.80% of the company's net assets [130]. Corporate Governance - The board of directors confirmed that all members attended the meeting, ensuring the accuracy and completeness of the semi-annual report [5]. - The company has established a governance structure to ensure fair and just related party transactions, protecting the interests of the company and minority shareholders [114]. - The company has implemented strict measures for related party transactions according to its articles of association and management regulations [111]. - The actual controllers of the company, including Shen Zhenyu, Hu Deyong, and Wang Xiang, have committed to not engage in any business that competes with the company's main operations, both directly and indirectly [115]. - The company has committed to notifying it of any competitive business opportunities obtained from third parties by its actual controllers [115].

Financial Performance - Operating revenue for the reporting period reached approximately CNY 118.59 million, an increase of 117.89% year-on-year[10] - Net profit attributable to shareholders was approximately -CNY 19.69 million, an improvement of 19.35% compared to the same period last year[10] - The company anticipates significant growth in operating revenue and a substantial improvement in net profit for the first half of the year, driven by the gradual acceptance of 5G network visualization projects and a surge in domestic intelligent computing and networking business[22] - The company reported a net profit of ¥193,911,971.87, down from ¥210,859,939.99, indicating a decrease of about 8.00%[37] - The company reported a significant increase in cash outflow for employee payments, which rose to CNY 52,875,411.15 in Q1 2021 from CNY 31,071,207.55 in Q1 2020, marking an increase of about 70%[56] Cash Flow - The net cash flow from operating activities was approximately -CNY 83.25 million, a decline of 348.45% year-on-year[10] - The net cash flow from operating activities was negative at ¥-83,246,689.68, worsening from ¥-18,563,259.42, primarily due to increased procurement expenditures and year-end employee bonuses[19] - The net cash flow from investing activities was also negative at ¥-60,031,263.37, compared to a positive flow of ¥95,886,531.43, mainly due to no redemption of structured deposits and payments for stock repurchases[19] - The net cash flow from financing activities improved to ¥76,646,153.10 from ¥-3,010,994.73, primarily due to increased bank borrowings[19] - The total cash outflow from operating activities in Q1 2021 was CNY 231,877,636.27, compared to CNY 126,211,181.50 in Q1 2020, indicating a significant increase of about 83.7%[56] Assets and Liabilities - Total assets at the end of the reporting period were approximately CNY 1.16 billion, a decrease of 0.65% compared to the end of the previous year[10] - Total liabilities increased to ¥367,612,965.24 from ¥356,820,026.98, representing a growth of approximately 0.22%[32] - Current assets totaled ¥834,409,003.34, slightly down from ¥836,711,675.91, indicating a decrease of about 0.28%[36] - Total non-current assets amounted to ¥349,942,100.44, up from ¥345,020,078.45, which is an increase of around 1.00%[36] - Total liabilities reached $356,820,026.98, a decrease of $2,433,812.53 from the last reporting period[67] Shareholder Information - The number of shareholders at the end of the reporting period was 13,049[14] - Total equity attributable to shareholders decreased to ¥798,167,987.63 from ¥815,167,930.73, a decline of approximately 2.08%[32] - Shareholders' equity totaled $811,708,068.26, remaining unchanged from the previous period[67] Expenses - Operating costs rose to ¥74,164,730.26, reflecting an increase of 118.65% from ¥33,919,362.28, consistent with the revenue growth trend[19] - Research and development expenses increased by 35.33% to ¥41,637,043.57 from ¥30,766,850.74, primarily due to higher personnel costs and technology development expenses[19] - Sales expenses rose to ¥9,130,258.37 in Q1 2021, up from ¥4,676,356.04 in Q1 2020, marking an increase of 95%[42] Borrowings - Short-term borrowings increased by 56.11% to CNY 140.50 million, primarily due to new bank loans[16] - Long-term borrowings amounted to ¥913,000.00, all due within one year[19] - Long-term borrowings were recorded at $913,000.00, remaining stable compared to the previous period[67] Other Financial Metrics - The weighted average return on equity increased by 0.64 percentage points to -2.45%[10] - Basic earnings per share for Q1 2021 were -¥0.0990, compared to -¥0.1228 in Q1 2020[44] - Investment income surged by 714.84% to ¥1,740,766.11 from ¥213,631.86, mainly attributed to recognized investment income from joint ventures[19]

Financial Performance - Operating revenue for the period was CNY 118,594,347.19, representing a significant increase of 117.89% year-on-year[8]. - Net profit attributable to shareholders was CNY -19,693,965.38, an improvement of 19.35% compared to the same period last year[8]. - The company’s basic earnings per share improved by 19.38% to CNY -0.0990[8]. - Investment income surged by 714.84% to ¥1,740,766.11, primarily due to recognized investment income from affiliated companies[18]. Cash Flow - The net cash flow from operating activities was CNY -83,246,689.68, a decline of 348.45% compared to the previous year[8]. - Net cash flow from operating activities decreased to -¥83,246,689.68, attributed to increased procurement expenses and year-end employee bonuses[18]. - Net cash flow from investing activities fell to -¥60,031,263.37, mainly due to no redemption of structured deposits and payment for stock repurchases[18]. - Net cash flow from financing activities increased to ¥76,646,153.10, primarily due to increased bank borrowings[18]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,160,934,018.84, a decrease of 0.65% compared to the end of the previous year[8]. - The company reported a significant increase in prepayments, rising by 127.65% to CNY 18,343,638.56, primarily due to land auction payments[16]. - The company’s short-term borrowings increased by 56.11% to CNY 140,500,000.00, mainly due to new bank loans[16]. Shareholder Information - The number of shareholders at the end of the reporting period was 13,049, with the largest shareholder holding 19.37% of the shares[12]. Expenses - Sales expenses increased by 95.24% to ¥9,130,258.37, primarily due to increased personnel salaries and marketing expenses[18]. - R&D expenses rose by 35.33% to ¥41,637,043.57, mainly driven by higher personnel salaries and technology development costs[18]. Government Support and Future Outlook - The company received government subsidies amounting to CNY 172,974.85 during the period[9]. - The company expects significant revenue growth in the first half of the year, driven by the gradual acceptance of its 5G network visualization project and substantial growth in domestic intelligent computing and networking businesses[19].

Financial Performance - The company's revenue for 2020 was CNY 533,124,549.14, representing a 22.81% increase compared to CNY 434,114,198.37 in 2019[26]. - The net profit attributable to shareholders for 2020 was CNY 36,395,234.29, a decrease of 45.95% from CNY 67,338,091.67 in 2019[26]. - The net cash flow from operating activities for 2020 was CNY -79,431,924.85, indicating a significant decline compared to CNY 15,613,509.98 in 2019[26]. - The total assets at the end of 2020 were CNY 1,168,528,095.24, which is a 21.29% increase from CNY 963,416,870.37 in 2019[26]. - The net assets attributable to shareholders at the end of 2020 were CNY 815,167,930.73, reflecting a 1.72% increase from CNY 801,350,236.35 in 2019[26]. - The basic earnings per share for 2020 were CNY 0.1838, down 45.56% from CNY 0.3376 in 2019[26]. - The diluted earnings per share for 2020 were CNY 0.1806, a decrease of 45.96% compared to CNY 0.3342 in 2019[26]. - The weighted average return on equity for 2020 was 4.49%, a decrease of 4.23 percentage points from 8.72% in 2019[26]. - The company reported a net profit excluding non-recurring items of CNY 30,905,632.87 for 2020, down 49.22% from CNY 60,858,548.36 in 2019[26]. Shareholder Returns - The company did not distribute cash dividends, issue bonus shares, or increase capital from reserves for the fiscal year 2020[7]. - The company has established a shareholder return plan for 2020-2022, committing to distribute at least 20% of the annual distributable profits as cash dividends[193]. - In 2020, the company did not distribute any cash dividends, issue bonus shares, or increase capital from reserves, despite a net profit of approximately CNY 36.40 million[194]. - The cash dividend for 2019 was CNY 1.05 per 10 shares, amounting to a total cash distribution of approximately CNY 21.10 million, which was 31.34% of the net profit[194]. - The company’s cash distribution policy prioritizes cash dividends after reserving statutory and surplus reserves[193]. - The company has not engaged in any share buybacks that would count towards cash dividends[195]. Audit and Compliance - The company received a standard unqualified audit report from Zhonghua Certified Public Accountants[6]. - The board of directors confirmed that all members attended the board meeting, ensuring accountability for the report's accuracy[5]. - The financial report is guaranteed to be true, accurate, and complete by the responsible executives[6]. - The company has not violated decision-making procedures for external guarantees[9]. Operational Insights - The company has detailed risk factors related to its operations in the board report[9]. - The report includes a comprehensive discussion and analysis of the company's operational conditions and potential risks[9]. - The company emphasizes that forward-looking statements do not constitute substantive commitments to investors, highlighting investment risks[8]. - There are no non-operational fund occupations by controlling shareholders or related parties[9]. - The company has not indicated any significant changes in shareholder structure or stock variations during the reporting period[12]. Market and Industry Trends - The global market for switches is projected to reach $27.8 billion, enterprise routers $3.3 billion, and wireless products $11.3 billion by 2020, indicating stable growth in the data communication sector[45]. - The network security industry in China reached a scale of approximately 156.36 billion yuan in 2019, growing by 17.1% from 2018, with an expected growth rate of 8.85% in 2020[45]. - The increasing importance of information security and big data is expected to drive rapid growth in the information security industry, particularly in government sectors[57]. - The smart systems market is experiencing significant growth driven by trends such as new infrastructure, post-pandemic recovery, carbon neutrality, and information security[62]. - The implementation of SDN/NFV technologies is expected to enhance the capabilities of 5G network deployment and management[144]. Research and Development - The company's R&D investment reached 112.47 million yuan, accounting for 21.10% of total revenue[84]. - The number of R&D personnel increased to 361, representing 65.64% of the total workforce[75]. - The company has made substantial investments in the development of 5G-related products, including front-end access systems and security protection systems for mobile networks[85]. - The company is focused on building a smart manufacturing production capacity and improving management in production quality and response speed[179]. Strategic Initiatives - The company aims to provide integrated hardware and software solutions that combine domestic and intelligent technologies, focusing on three main categories: intelligent computing, intelligent networking, and smart IoT[44]. - The company is actively expanding its product offerings in the field of intelligent systems, including the development of autonomous AI integrated machines and intelligent inspection robots[86]. - The company has established deep partnerships with domestic chip manufacturers, developing a series of competitive products and technology platforms in the IT infrastructure market[48]. - The company plans to enhance its marketing service network and attract high-end market talent to create a collaborative market environment[182]. Challenges and Risks - The company recognizes the risk of intensified market competition due to the growing demand in information security and industrial internet sectors[185]. - The company faces potential risks from rapid industry and technology changes, which could lead to mismatches between products and market demands[186]. - The company emphasizes the importance of maintaining core technical personnel to ensure sustainable development amidst increasing competition for talent[190].

Financial Performance - Net profit attributable to shareholders decreased by 90.71% to CNY 6,634,844.88 year-on-year [8]. - Operating revenue declined by 7.10% to CNY 309,279,492.37 for the first nine months of the year [8]. - The weighted average return on equity decreased by 8.26 percentage points to 0.83% [8]. - Basic earnings per share dropped by 90.16% to CNY 0.0345 [8]. - Other income decreased by 78.66%, from 19,803,314.58 to 4,225,303.24, primarily due to a reduction in software product refunds [22]. Cash Flow and Liquidity - Cash flow from operating activities showed a net outflow of CNY 83,432,166.59, worsening from a net outflow of CNY 35,349,385.20 in the same period last year [8]. - Net cash flow from operating activities decreased significantly, resulting in a net outflow of 83,432,166.59 compared to -35,349,385.20 in the previous year [22]. - Cash and cash equivalents increased by 74.06%, reaching 128,526,709.82 from 73,842,084.03, primarily due to the redemption of structured deposits during the reporting period [16]. Assets and Liabilities - Total assets increased by 12.30% to CNY 1,081,906,909.70 compared to the end of the previous year [8]. - Accounts receivable decreased by 32.10%, from 89,066,033.37 to 60,476,015.27, mainly due to the maturity of notes receivable [20]. - Inventory decreased by 44.13%, from 3,295,815.26 to 1,841,243.78, attributed to increased procurement of raw materials for orders [20]. - Short-term borrowings increased by 150.00%, from 15,000,000.00 to 37,500,000.00, primarily due to new bank loans [20]. - Accounts payable increased by 99.71%, from 63,804,070.17 to 127,426,230.18, mainly due to increased material procurement for stock [20]. - The company reported a significant increase in deferred income by 41.67%, from 1,200,000.00 to 1,700,000.00, mainly due to government subsidies received [20]. Shareholder Information - The total number of shareholders reached 17,213 by the end of the reporting period [12]. - Major shareholder Shen Zhenyu holds 19.36% of the shares, with 3,340,000 shares pledged [12]. Corporate Strategy and Developments - The company has not disclosed any new product developments or market expansion strategies in this report [8]. - The company plans to raise up to RMB 600 million through a non-public offering of A-shares, approved by the board and the supervisory board [23]. - The company received approval from the China Securities Regulatory Commission for the non-public issuance of shares on August 25, 2020 [23]. Non-Recurring Items - Non-recurring gains and losses amounted to CNY 4,832.79 for the third quarter [10].

Financial Performance - Operating revenue decreased by 7.10% to CNY 309,279,492.37 for the first nine months compared to the same period last year[11] - Net profit attributable to shareholders decreased by 90.71% to CNY 6,634,844.88 for the first nine months compared to the same period last year[11] - Basic earnings per share decreased by 90.16% to CNY 0.0345 compared to the same period last year[11] - The weighted average return on equity decreased by 8.26 percentage points to 0.83% compared to the same period last year[11] - The company reported a significant decrease in other income by 78.66% to ¥4,225,303.24, mainly due to a reduction in software product refunds[23] - The company anticipates a potential loss in cumulative net profit compared to the previous year, with no specific details provided[25] Cash Flow - Cash flow from operating activities showed a negative net amount of CNY -83,432,166.59 for the first nine months[11] - The net cash flow from operating activities decreased significantly by 136.00% to -¥83,432,166.59, primarily due to increased procurement payments[23] - The company reported a net cash outflow from operating activities of CNY -83,432,166.59 for the first three quarters of 2020, compared to CNY -35,349,385.20 in the same period of 2019[56] - The company incurred total cash outflows from operating activities of 439,954,311.33 RMB, compared to 381,759,797.64 RMB in the previous year, indicating increased operational expenses[62] Assets and Liabilities - Total assets increased by 12.30% to CNY 1,081,906,909.70 compared to the end of the previous year[11] - Current assets increased to ¥842,783,759.91 as of September 30, 2020, up from ¥752,314,698.18 on December 31, 2019, representing an increase of approximately 12.5%[30] - Total liabilities amounted to ¥288,170,635.10, up from ¥164,470,387.61, reflecting a growth of about 75.2%[35] - Current liabilities increased to ¥284,640,635.10 from ¥158,689,387.61, representing an increase of approximately 79.3%[35] - The company reported a significant increase in intangible assets, rising to ¥2,772,735.93 from ¥1,500,692.33, an increase of about 84.8%[33] Shareholder Information - The total number of shareholders as of the reporting period was 17,213[15] - The largest shareholder, Shen Zhenyu, holds 19.36% of the shares, totaling 38,913,031 shares[15] Investment and Financing Activities - The company plans to raise up to ¥600 million through a non-public offering of A-shares, which has been approved by the China Securities Regulatory Commission[24] - Total cash inflow from investment activities was 275,478,684.93 RMB, while cash outflow was 133,337,213.25 RMB, resulting in a net cash flow of 142,141,471.68 RMB from investment activities[59] - The company reported a total cash inflow from financing activities of 41,152,217.00 RMB, with cash outflow amounting to 53,927,648.19 RMB, leading to a net cash flow of -12,775,431.19 RMB from financing activities[59] Market and Product Development - The company has not disclosed any new product developments or market expansion strategies in this report[11] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[42]

Financial Performance - The company reported a total revenue of 500 million CNY for the first half of 2020, representing a year-over-year increase of 15%[2]. - The company's operating revenue for the first half of 2020 was ¥169,463,176.15, a decrease of 26.80% compared to ¥231,505,310.34 in the same period last year[28]. - The net profit attributable to shareholders for the first half of 2020 was -¥20,354,697.17, representing a decline of 138.97% from a profit of ¥52,226,414.16 in the previous year[28]. - The net cash flow from operating activities was -¥29,487,864.31, a significant drop compared to ¥2,721,288.55 in the same period last year, marking a decrease of 1,183.60%[28]. - The company achieved operating revenue of CNY 169.46 million, a year-on-year decrease of 26.80% due to delays in revenue recognition and downstream project commencement caused by the pandemic[81]. - The net profit attributable to shareholders was CNY -20.35 million, a year-on-year decline of 138.97%[81]. - The company reported a net profit of -22,724,518.98 RMB for the current period, compared to a net profit of 49,417,673.39 RMB in the same period last year, indicating a significant decline[188]. - The company's operating profit was -22,556,995.11 RMB, a stark contrast to the operating profit of 59,934,702.64 RMB reported in the previous year[188]. Research and Development - Research and development expenses increased by 25% to 50 million CNY, focusing on 5G technology and advanced telecommunications solutions[2]. - R&D expenses amounted to CNY 53.91 million, representing 31.81% of operating revenue, indicating a continued commitment to innovation[83]. - Research and development expenses for the first half of 2020 were RMB 53,911,981.38, slightly up from RMB 52,076,760.90 in the same period of 2019[183]. - The company is focusing on integrating various hardware and software into a unified system to meet specific customer needs[28]. - The company continues to invest in R&D for next-generation network visualization products and domestic information technology platforms to align with major market trends[83]. Market Strategy and Expansion - The company expects a revenue growth forecast of 10% for the second half of 2020, driven by new product launches and market expansion strategies[2]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by the end of 2021[2]. - The company has introduced two new products in the telecommunications sector, which are expected to contribute an additional 100 million CNY in revenue by year-end[2]. - The company is focusing on the embedded and integrated computing business, driven by the national strategy of domestic autonomous informationization, which is crucial for national information security[59]. - The company is enhancing its own production lines to meet increasing market delivery and quality demands[52]. Financial Position and Assets - The total assets at the end of the reporting period were ¥1,002,124,720.56, an increase of 4.02% from ¥963,416,870.37 at the end of the previous year[28]. - The net assets attributable to shareholders decreased by 4.54% to ¥764,930,189.18 from ¥801,350,236.35 at the end of the previous year[28]. - Cash and cash equivalents decreased by 71.19% to ¥83,969,774.70, accounting for 8.38% of total assets[88]. - Inventory increased by 63.82% to ¥279,952,723.07, representing 27.94% of total assets, primarily due to increased raw material purchases[88]. - Total current assets amounted to ¥772,996,773.60, compared to ¥752,314,698.18 at the end of 2019, showing an increase of about 2.3%[167]. Risks and Challenges - The board has identified potential risks related to supply chain disruptions due to global events, which may impact future performance[2]. - The company expects significant fluctuations in performance compared to the previous year due to substantial losses in the first half of the year, despite a gradual market recovery[99]. - The company reported a decrease in sales expenses to 8,148,405.69 RMB from 8,664,206.77 RMB in the previous year, a reduction of about 5.9%[192]. Shareholder and Corporate Governance - The controlling shareholders committed not to transfer or entrust the management of their shares for 36 months from the date of the company's IPO, which started on June 7, 2017, and will end on June 6, 2022[104]. - The company has implemented measures to regulate related party transactions, ensuring fairness and protecting the interests of minority shareholders[111]. - The company has committed to avoiding any direct or indirect competition with its main business operations, ensuring no substantial competition arises from controlled entities[112]. - The company announced a stock option incentive plan, granting 3.984 million stock options in June 2020[131]. - The company has not reported any major changes in the integrity status of its controlling shareholders or actual controllers during the reporting period[129].

Financial Performance - Operating revenue for the period was ¥54,429,446.84, representing a year-on-year decrease of 49.79%[11] - Net profit attributable to shareholders was a loss of ¥24,418,998.36, a decline of 197.15% compared to the same period last year[11] - Basic earnings per share were -¥0.1228, a decrease of 169.42% year-on-year[11] - The overall gross profit margin decreased significantly due to the decline in revenue from the network visualization business[11] - The company experienced a substantial increase in period expenses, contributing to the significant decline in net profit attributable to shareholders[11] - The report period was impacted by the pandemic, causing delays in project implementation and sales delivery in the downstream market[11] - Total operating revenue for Q1 2020 was ¥54,429,446.84, a decrease of 49.8% compared to ¥108,403,935.96 in Q1 2019[45] - Net profit for Q1 2020 was a loss of ¥26,176,110.79, compared to a profit of ¥24,076,797.01 in Q1 2019[47] - The company reported a total comprehensive loss of ¥26,176,110.79 for Q1 2020, compared to a comprehensive income of ¥24,076,797.01 in Q1 2019[47] Cash Flow - Cash flow from operating activities was -¥18,563,259.42, compared to -¥429,477.09 in the same period last year[11] - The net cash flow from operating activities was negative at ¥-18,563,259.42, compared to ¥-429,477.09 in the previous year, mainly due to increased cash payments for notes payable and procurement[22] - Cash inflows from operating activities totaled 107,647,922.08 RMB, down from 113,046,859.90 RMB year-over-year[60] - The total cash outflow from operating activities was 119,177,583.77 RMB, up from 105,583,489.74 RMB year-over-year[60] - The net cash flow from investment activities was 95,886,531.43 RMB, compared to -10,263,865.07 RMB in the prior year[60] - The company received cash from financing activities totaling 24,906,092.92 RMB, while cash outflows from financing activities were 3,510,432.23 RMB[65] Assets and Liabilities - Total assets at the end of the reporting period were ¥931,427,312.93, a decrease of 3.32% compared to the end of the previous year[11] - Cash and cash equivalents increased by 100.37% to ¥147,954,361.31 from ¥73,842,084.03 due to the redemption of structured deposits[20] - Other current assets decreased by 58.81% to ¥73,930,249.53 from ¥179,500,894.64, primarily due to the redemption of structured deposits[20] - The company’s total liabilities decreased by 44.18% for notes payable, dropping to ¥11,443,984.49 from ¥20,503,394.48, due to the maturity of accepted bills[20] - Total liabilities decreased to CNY 157,011,136.93 from CNY 164,470,387.61, a reduction of 4.1%[34] - Current liabilities decreased to CNY 152,147,136.93, down 4.3% from CNY 158,689,387.61[32] - The total equity attributable to shareholders decreased to CNY 778,577,042.01 from CNY 801,350,236.35, a decline of 2.8%[34] Investment and Income - Embedded and integrated computing business revenue increased year-on-year, leading to a significant change in revenue structure[11] - The company reported a 109.86% increase in investment income to ¥213,631.86 from ¥101,798.24, driven by increased income from joint ventures[20] - The company experienced a credit impairment loss of ¥1,789,305.03 in Q1 2020, compared to a loss of ¥91,102.08 in Q1 2019[45] - The company reported a significant increase in investment income to ¥213,631.86 in Q1 2020, compared to ¥101,798.24 in Q1 2019[45] Future Outlook - The company anticipates significant uncertainty in performance for the year, influenced by ongoing impacts from the pandemic and opportunities arising from 5G construction and new infrastructure projects[23] - The company has not provided specific guidance for future performance due to the unpredictable nature of market conditions and ongoing pandemic effects[23] Changes in Accounting Standards - The company implemented new revenue and leasing standards starting January 1, 2020, affecting the financial statements[74] - The company has implemented new revenue recognition standards effective January 1, 2020, impacting retained earnings and financial statement items[80]