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]

Financial Performance - The company reported a total revenue of 1.2 billion CNY for the fiscal year 2019, representing a year-over-year growth of 15%[21]. - The company's operating revenue for 2019 was CNY 434,114,198.37, a slight increase of 0.63% compared to CNY 431,398,215.91 in 2018[31]. - The net profit attributable to shareholders for 2019 was CNY 67,338,091.67, representing a significant decrease of 35.97% from CNY 105,166,343.17 in 2018[31]. - The net cash flow from operating activities for 2019 was CNY 15,613,509.98, down 60.02% from CNY 39,057,802.46 in 2018[31]. - The basic earnings per share for 2019 was CNY 0.3376, a decrease of 55.12% compared to CNY 0.7522 in 2018[31]. - The total assets at the end of 2019 were CNY 963,416,870.37, an increase of 5.45% from CNY 913,640,809.86 at the end of 2018[31]. - The company reported a net profit of CNY -4,098,498.00 in Q4 2019, contrasting with positive profits in the first three quarters[34]. - The weighted average return on equity for 2019 was 8.72%, down 5.90 percentage points from 14.62% in 2018[31]. - The company’s net assets attributable to shareholders increased by 6.66% to CNY 801,350,236.35 at the end of 2019[31]. - The company reported a positive profit for the reporting period, with net profit attributable to ordinary shareholders being positive, but no cash dividend distribution plan was proposed[195]. Research and Development - Investment in R&D increased by 30% year-over-year, focusing on edge computing and big data technologies[21]. - The company invested CNY 110.13 million in R&D, representing a 42.69% increase year-over-year, and accounting for 25.37% of total sales revenue[88]. - The company has a strong product design capability across various fields, including hardware design and software development, with a total of 352 R&D personnel, making up 70.40% of the workforce[78]. - The company actively invested in early R&D for network visualization systems aimed at 5G mobile networks, enhancing product advantages in system capacity and processing capabilities[79]. - The company aims to enhance its technical innovation capabilities and improve the innovation environment by upgrading its existing R&D technology platform[175]. Market Strategy and Expansion - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2021[21]. - The company is gradually strengthening its own production line to meet the growing market delivery demands and customer quality requirements[56]. - The company is focused on enhancing its market position and competitive advantage through comprehensive product specifications and technological solutions[175]. - The company plans to actively expand into multiple industry markets in China, focusing on clear positioning, leading technology, and extensive cooperation[179]. - The company aims to strengthen its marketing service network to cover key domestic regions with high market potential[179]. Risk Management - The company has detailed potential risk factors in its report, which investors should review[9]. - The company emphasizes the importance of investment risk awareness in its forward-looking statements[8]. - The company faces market competition risks due to increasing demand in information security and wireless networks, which may lead to intensified competition[184]. - The company has a risk of industry and technology changes, necessitating continuous monitoring of trends to avoid mismatches between products and market demands[185]. Corporate Governance - The board of directors and senior management guarantee the accuracy and completeness of the annual report[4]. - All directors attended the board meeting for the annual report review[5]. - The company has implemented strict procedures for related party transactions to ensure fairness and protect the interests of minority shareholders[195]. - The company has established measures to strengthen external supervision of related party transactions by independent directors[195]. Product Development and Innovation - The company continues to focus on the development and sales of intelligent system solutions, particularly in network visualization and embedded computing platforms[41]. - The company’s embedded and integrated computing platform products are designed for specific functions and applications, providing customizable solutions for various industries, including wireless networks and information security[51]. - The company is committed to developing a comprehensive series of products in the information technology field, including computing, networking, storage, and security[178]. - The company plans to continue investing in new product and technology development, including next-generation network visualization products and 5G mobile network technologies[173]. Dividend Policy - The company plans to distribute a cash dividend of 0.105 CNY per share (including tax) based on the total share capital on the equity distribution scheme registration date[7]. - The company distributed a cash dividend of 1.05 RMB per 10 shares, totaling approximately 21.1 million RMB, which is 31.34% of the net profit attributable to ordinary shareholders[191]. - The company will prioritize cash dividends, distributing at least 20% of the annual distributable profit in cash if conditions allow[189].

Financial Performance - Operating revenue for the period was ¥332,905,718.21, a decrease of 1.31% compared to the same period last year[18]. - Net profit attributable to shareholders of the listed company was ¥71,436,589.67, down 13.57% year-on-year[18]. - The net profit after deducting non-recurring gains and losses was ¥67,106,902.11, a decrease of 14.94% compared to the previous year[21]. - The weighted average return on net assets was 9.09%, a decrease of 2.84 percentage points from the previous year[21]. - Basic earnings per share were ¥0.3506, down 40.27% year-on-year[21]. - Diluted earnings per share were ¥0.3479, a decrease of 40.59% compared to the same period last year[21]. - The company reported a significant increase in other income by 90.82% to ¥19,803,314.58 from ¥10,378,023.42, mainly due to increased VAT refunds and government subsidies[33]. - The company reported a decrease in sales expenses to CNY 6,147,811.99 in Q3 2019 from CNY 3,757,965.59 in Q3 2018, indicating a rise of 63.4%[55]. - Net profit for Q3 2019 was CNY 17,420,436.73, down 51.4% from CNY 35,825,211.54 in Q3 2018[59]. - Total revenue for Q3 2019 was CNY 100,369,528.51, a decrease of 15.4% compared to CNY 118,750,136.06 in Q3 2018[63]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥982,316,455.59, an increase of 7.52% compared to the end of the previous year[18]. - Total liabilities were RMB 170,598,571.79, up from RMB 160,569,840.47, representing an increase of about 6.4%[45]. - Total current assets amounted to ¥737,697,839.67, with inventory valued at ¥175,716,466.37[86]. - Total non-current assets reached ¥175,942,970.19, including fixed assets of ¥135,077,941.23[86]. - Total liabilities reached ¥254,247,873.63, indicating a stable financial structure[98]. - The company reported long-term equity investments of ¥20,621,551.00, indicating strategic investments in other entities[96]. Cash Flow - The net cash flow from operating activities was -¥35,349,385.20, compared to -¥13,487,366.86 in the same period last year, indicating a worsening cash flow situation[18]. - Cash inflow from sales of goods and services was 276,444,934.91 RMB, down from 303,846,089.25 RMB, indicating a decline in revenue generation[79]. - Total cash inflow from operating activities was 311,000,403.67 RMB, while cash outflow was 346,349,788.87 RMB, resulting in a net cash outflow of 35,349,385.20 RMB[75]. - Cash inflow from investment activities totaled 28,451,491.64 RMB, significantly lower than 377,465,030.97 RMB in the previous period, reflecting reduced investment recovery[75]. - The net cash flow from investment activities was 332,537.63 RMB, an improvement from -2,961,998.68 RMB previously, indicating better investment performance[75]. Shareholder Information - The total number of shareholders is 14,401, with the top three shareholders holding a combined 37.38% of shares[30]. - Shareholders' equity reached RMB 811,717,883.80, compared to RMB 753,070,969.39, indicating a growth of approximately 7.8%[45]. - The company reported a capital reserve of ¥366,977,103.62, contributing to its equity structure[89]. - The company has a short-term loan of ¥15,000,000.00, reflecting its financing strategy[89]. Expenses - Research and development expenses increased by 35.31% to ¥76,996,120.86 from ¥56,903,252.81, attributed to a rise in the number of R&D personnel and their salaries[33]. - Sales expenses surged by 74.50% to ¥16,997,562.17 from ¥9,740,565.10, driven by increased market expansion efforts and higher salaries for sales personnel[33]. - The company experienced a significant reduction in management expenses, which fell to CNY 10,116,221.35 in Q3 2019 from CNY 12,286,766.92 in Q3 2018[67].

Financial Performance - The company's operating revenue for the first half of 2019 was ¥231,505,310.34, representing a 5.92% increase compared to ¥218,575,877.91 in the same period last year [24]. - The net profit attributable to shareholders for the same period was ¥52,226,414.16, which is a 13.33% increase from ¥46,083,016.94 year-on-year [24]. - The net profit after deducting non-recurring gains and losses was ¥47,916,596.21, up 11.35% from ¥43,031,406.68 in the previous year [24]. - The net cash flow from operating activities was ¥2,721,288.55, a significant recovery from a negative cash flow of -¥13,926,934.15 in the same period last year [24]. - The total assets at the end of the reporting period were ¥976,063,470.81, reflecting a 6.83% increase from ¥913,640,809.86 at the end of the previous year [24]. - The net assets attributable to shareholders increased by 9.39% to ¥821,859,108.78 from ¥751,345,032.86 at the end of the previous year [24]. - Basic earnings per share for the first half of 2019 were ¥0.3676, up 12.83% from ¥0.3258 in the same period last year [24]. - Diluted earnings per share were ¥0.3671, an increase of 12.06% compared to ¥0.3276 in the previous year [24]. - The weighted average return on net assets was 6.68%, a slight decrease of 0.11 percentage points from 6.79% in the same period last year [24]. Research and Development - The company's R&D investment accounted for 22.49% of its revenue, with 251 R&D personnel representing 66.40% of the total workforce [55]. - Research and development expenses amounted to CNY 52.08 million, representing a 42.02% increase year-on-year, accounting for 22.49% of operating revenue [66]. - The company is investing $10 million in research and development for new technologies in the upcoming year [110]. Market Position and Strategy - The company remains a leading provider of network visualization infrastructure and embedded computing platforms, focusing on information security, wireless networks, and cloud computing [33]. - Continuous investment in product innovation and market expansion is aimed at strengthening the company's core competitiveness and expanding its product range [45]. - The company emphasizes a dual-driven model of market orientation and technology leadership to enhance product competitiveness [42]. - The operational model remains unchanged, focusing on direct sales in domestic markets and leveraging foreign trade companies for international sales [44]. Risk Management - The company has detailed the potential risks in the report, which investors should be aware of [8]. - The report includes a forward-looking statement risk declaration, indicating that future plans do not constitute a commitment to investors [6]. - The company has not provided any guarantees that violate decision-making procedures [7]. - The report emphasizes the importance of accurate and complete financial reporting by the responsible personnel [5]. Shareholder Information - The company reported a profit distribution plan for the reporting period, which is none [6]. - The company does not plan to distribute profits or increase capital reserves in the current half-year period [83]. - The company has committed to not transferring or managing shares held prior to the IPO for a period of 36 months [84]. - The company will notify shareholders at least three trading days in advance before any reduction of shares held by major shareholders [95]. - The company has committed to long-term shareholding, with any reductions in shares post-lockup period not to exceed the total amount held on the last trading day of the previous year [95]. Financial Stability - The company has accumulated a series of domestically produced, self-controllable products and technology platforms, contributing to information security [50]. - The company continues to strengthen its supply chain management, improving operational efficiency and reducing costs [60]. - The company reported a significant increase in revenue, achieving a total of $500 million, representing a 25% year-over-year growth [104]. - The company’s total current assets as of June 30, 2019, amounted to RMB 783,502,682.89, an increase from RMB 737,697,839.67 at the end of 2018, representing a growth of approximately 6.3% [136]. Legal and Compliance - The company has implemented measures to ensure fair and just related party transactions [92]. - The company guarantees that its prospectus for the initial public offering does not contain false records or misleading statements, and will be liable for any significant omissions [100]. - There were no significant legal disputes or arbitration matters reported during the period [113]. Future Outlook - The company provided a positive outlook for the next quarter, projecting a revenue growth of 20% to $600 million [106]. - New product launches are expected to contribute an additional $50 million in revenue over the next six months [107]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of the fiscal year [108].

Financial Performance - Net profit attributable to shareholders increased by 32.54% to CNY 25,136,585.51 compared to the same period last year[12] - Operating revenue rose by 9.42% to CNY 108,403,935.96 compared to the same period last year[12] - Basic earnings per share decreased by 6.70% to CNY 0.1769 compared to the same period last year[12] - The weighted average return on equity increased by 0.44 percentage points to 3.29% compared to the previous year[12] - The company reported a net profit increase, with retained earnings rising to CNY 277.37 billion from CNY 251.91 billion, a growth of 10.1%[33] - Net profit for Q1 2019 reached CNY 24,076,797.01, compared to CNY 18,587,226.77 in Q1 2018, representing a growth of 29.5%[45] - The company reported a decrease in total profit to RMB 7,430,370.69, down 5.2% from RMB 7,841,754.83 in Q1 2018[48] Assets and Liabilities - Total assets increased by 4.35% to CNY 953,405,980.53 compared to the end of the previous year[12] - Non-current assets increased to CNY 185.26 billion from CNY 175.94 billion, a growth of 7.5%[31] - Total liabilities increased to CNY 171.02 billion from CNY 160.57 billion, a growth of 6.5%[33] - Current liabilities totaled CNY 162.56 billion, compared to CNY 159.44 billion, marking a 1.3% increase[31] - Total liabilities amounted to approximately $160.57 million, with current liabilities at $159.44 million, indicating a strong short-term financial position[70] - The company reported a deferred income of $1.13 million, which may indicate future revenue recognition[76] Cash Flow - Net cash flow from operating activities was CNY -429,477.09, a significant improvement from CNY -29,606,842.75 in the previous year[12] - The cash inflow from operating activities was CNY 108,319,375.90, an increase of 25.4% compared to CNY 86,363,920.93 in Q1 2018[61] - The net cash flow from operating activities was CNY 2,735,886.16, a significant improvement from a net outflow of CNY -28,479,935.76 in the same period last year[61] - Cash flow from financing activities increased by 703.46% from CNY 2,703,293.75 to CNY 21,719,767.91 mainly due to equity incentive payments and increased bank loans[23] - The net cash flow from financing activities was CNY 21,790,455.42, compared to CNY 2,740,812.51 in the previous year[64] Shareholder Information - The total number of shareholders at the end of the reporting period was 8,362[18] - The top shareholder, Shen Zhenyu, holds 19.20% of the shares, amounting to 27,403,543 shares[18] - Shareholders' equity rose to CNY 781.72 billion from CNY 751.35 billion, an increase of 4.0%[33] - Total equity increased to CNY 669,316,667.22 from CNY 658,077,169.30, marking a growth of 1.9%[39] Expenses - Sales expenses surged by 109.12% from CNY 2,635,914.23 to CNY 5,512,222.10 primarily due to increased salaries for sales personnel[23] - R&D expenses increased by 34.47% from CNY 19,936,897.02 to CNY 26,809,466.90 due to a rise in the number of R&D personnel[23] - R&D expenses in Q1 2019 amounted to CNY 26,809,466.90, an increase of 34.5% from CNY 19,936,897.02 in Q1 2018[43] Government and Other Income - Government subsidies recognized in the current period amounted to CNY 4,219,605.30[16] - The company reported a non-operating income of CNY 115,693.15 from various sources[16] - Other income rose by 143.09% from CNY 3,656,803.79 to CNY 8,889,205.84 primarily due to increased software VAT refunds and government project subsidies[23]