证券代码：603533 证券简称：掌阅科技 公告编号：2023-018 掌阅科技股份有限公司 关于召开 2022 年度业绩说明会的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 投资者可于 2023 年 4 月 17 日至 4 月 21 日 16:00 前登录上证路演中心网 站首页点击"提问预征集"栏目或通过公司邮箱 ir@zhangyue.com 进行提问。公 司将在 2022 年度业绩说明会上对投资者普遍关注的问题进行回答。 三、参加人员 一、说明会类型 本次业绩说明会以网络互动方式召开，公司将针对 2022 年度的经营成果及 财务指标的具体情况与投资者进行互动交流和沟通，在信息披露允许的范围内就 投资者普遍关注的问题进行回答。 二、说明会召开的时间、地点 1、会议召开时间：2023 年 4 月 24 日下午 16:00–17:00 2、会议召开地点：上海证券交易所上证路演中心 1 会议召开时间：2023 年 4 月 24 日（星期一）下午 16:00–17:00 召开地点：上海证券交易所上证路演中心 ...

Financial Performance - The company's operating revenue for Q3 2022 was ¥677,764,587.01, representing a year-on-year increase of 34.89%[5] - The net profit attributable to shareholders for Q3 2022 was a loss of ¥1,430,787.39, a decrease of 109.58% compared to the same period last year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses for Q3 2022 was a loss of ¥914,820.30, down 106.15% year-on-year[9] - The basic earnings per share for Q3 2022 was -¥0.003, reflecting a decrease of 110.00% compared to the previous year[9] - The net profit for the third quarter of 2022 was CNY 36,769,313.66, a decrease from CNY 151,165,133.83 in the same period of 2021, representing a decline of approximately 75.7%[39] - The total comprehensive income for the third quarter of 2022 was CNY 38,190,785.60, compared to CNY 151,203,866.37 in the previous year, indicating a decrease of about 74.7%[39] - The operating profit for the third quarter of 2022 was CNY 36,961,108.24, down from CNY 181,592,945.13 in the same quarter of 2021, reflecting a decline of approximately 79.7%[39] - Basic earnings per share for the third quarter of 2022 were CNY 0.09, down from CNY 0.35 in the same quarter of 2021[39] Assets and Liabilities - The total assets at the end of Q3 2022 were ¥3,336,881,160.09, a decrease of 3.36% from the end of the previous year[9] - The total assets as of September 30, 2022, were ¥3,336,881,160.09, a decrease from ¥3,452,833,458.53 at the end of the previous period[32] - The total liabilities decreased from ¥899,021,916.61 to ¥760,804,295.97[29] - The company’s total liabilities decreased to CNY 1,261,209,481.07 at the end of the third quarter of 2022, compared to CNY 1,283,736,511.81 at the beginning of the year[45] Cash Flow - The company's cash flow from operating activities for the year-to-date was ¥2,091,284.78, down 98.40% year-on-year[9] - Cash flow from operating activities for the first three quarters of 2022 was CNY 1,920,618,698.24, an increase from CNY 1,768,973,139.43 in the same period of 2021[43] - The cash flow from investing activities showed a net outflow of CNY 3,798,480.35 in the third quarter of 2022, compared to a net outflow of CNY 516,468,241.32 in the same period of 2021[43] - The company reported a decrease in cash and cash equivalents at the end of the third quarter of 2022, totaling CNY 1,261,209,481.07, compared to CNY 1,245,303,456.31 at the end of the same period in 2021[45] - The company reported a foreign exchange impact on cash and cash equivalents of CNY 562,358.46 in the third quarter of 2022[45] Shareholder Information - The company reported a total of 42,092 common shareholders at the end of the reporting period[15] - The top three shareholders held a combined 54.20% of the company's shares, with Zhang Lingyun holding 22.66% and Cheng Xiangjun holding 21.27%[15] Expenses and Investments - The company experienced significant marketing and organizational development expenses, impacting profitability[13] - Sales expenses, management expenses, and R&D expenses increased by 142.98%, 45.75%, and 17.37% respectively compared to the same period last year[22] - The company’s net profit for the first three quarters was impacted by increased short-term investments in marketing and technology infrastructure[22] - The long-term equity investment increased from ¥241,351,983.33 to ¥255,675,480.12[27] Business Strategy - The company is focusing on transforming its business model to a digital reading platform driven by free reading[22] - The company aims to continue enhancing its marketing efforts and organizational structure for long-term growth[22] Revenue Growth - The company's revenue for the first three quarters increased by 16.68% year-on-year, reaching ¥1,863,054,898.75[33] - In Q3 alone, revenue grew by 34.89% compared to the same period last year[22] - The company received government subsidies amounting to ¥409,609.98 during the reporting period[10] - The company received CNY 1,898,040,321.87 in cash from sales of goods and services during the first three quarters of 2022, an increase from CNY 1,745,434,821.77 in the same period of 2021[41]

Financial Performance - The company's operating revenue for the first half of 2022 was CNY 1,185,290,311.74, representing an increase of 8.31% compared to CNY 1,094,323,030.77 in the same period last year[32]. - Net profit attributable to shareholders decreased by 70.32% to CNY 39,716,109.41 from CNY 133,813,325.46 year-on-year[32]. - The net cash flow from operating activities dropped by 58.72% to CNY 50,028,097.77 compared to CNY 121,191,590.20 in the previous year[32]. - Basic earnings per share fell by 70.97% to CNY 0.09 from CNY 0.31 in the same period last year[32]. - The company reported a decrease in the weighted average return on equity by 4.55 percentage points to 1.55% compared to 6.10% in the previous year[32]. - The total comprehensive income for the first half of 2022 was approximately ¥37.95 million, compared to ¥135.44 million in the previous year, reflecting a significant decline[140]. - The company reported a net profit of approximately ¥1.16 million for the current period, compared to ¥100.81 million in the previous year, indicating a substantial decline[144]. Revenue and Costs - Total operating revenue for the first half of 2022 reached ¥1,185,290,311.74, an increase of 8.3% compared to ¥1,094,323,030.77 in the same period of 2021[131]. - Total operating costs for the first half of 2022 were ¥1,164,853,567.11, up from ¥950,349,960.58 in the first half of 2021[131]. - Sales expenses increased by 144.36% to 648,856,893.19 CNY, driven by intensified marketing efforts[51]. - The company reported a significant increase in other receivables, rising to CNY 10,065,353.84 from CNY 7,003,064.61, a growth of approximately 43.9%[112]. Investments and Assets - The company made a new equity investment of 1.47 million RMB during the reporting period, a decrease of 94.49% compared to 26.66 million RMB in the same period last year[60]. - The total assets of the company reached CNY 3,470,757,057.33, compared to CNY 3,452,833,458.53 at the beginning of the period, indicating a slight increase[114]. - The company's cash and cash equivalents were reported at CNY 2,209,041,628.12, a decrease from CNY 2,254,274,469.38[112]. - The total current assets as of June 30, 2022, amounted to CNY 2,809,111,675.97, an increase from CNY 2,734,507,546.24 at the beginning of the period[112]. Corporate Governance and Compliance - The board of directors confirmed the authenticity, accuracy, and completeness of the semi-annual report, with no significant omissions or misleading statements[5]. - The report has not been audited, and the responsible persons have confirmed the financial report's authenticity and accuracy[7]. - The company has made commitments to ensure that any necessary related party transactions are conducted fairly and transparently[87]. - The actual controllers have pledged to prevent any non-operational occupation of the company's funds or assets[88]. Market and Industry Context - The digital reading industry in China saw a revenue scale of CNY 415.7 billion in 2021, with an overall growth rate of 18.23%[42]. - The number of digital reading users in China reached 506 million in 2021, with a growth rate of 2.43%[42]. - The company faces risks from regulatory adjustments in the digital reading industry, which could impact business stability and operations[63]. - Increased competition in the digital reading market poses a risk to the company's market position and operational performance[64]. Social Responsibility and Environmental Commitment - The company is committed to reducing carbon emissions by promoting digital reading, which decreases the need for paper books[76]. - The company has maintained and updated reading rooms in impoverished areas and implemented training programs for disabled individuals to help them gain employment[77]. Shareholder Information - The total number of common shareholders was 44,066[102]. - The top two shareholders, Zhang Lingyun and Cheng Xiangjun, collectively held 192,803,419 shares, accounting for 43.93% of the company's total equity[104]. - The company reported a profit distribution of CNY -17,555,873.40 to shareholders, indicating a loss in profit allocation for the period[169].

掌阅科技股份有限公司 2022 年第一季度报告 单位：元 币种：人民币 证券代码：603533 证券简称：掌阅科技 掌阅科技股份有限公司 2022 年第一季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 重要内容提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整，不存 在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人成湘均、主管会计工作负责人张维聪及会计机构负责人（会计主管人员）朱丹保证季 度报告中财务报表信息的真实、准确、完整。 第一季度财务报表是否经审计 □是 √否 一、 主要财务数据 (一)主要会计数据和财务指标 | --- | --- | --- | |-----------------------------------------------|----------------|-------------------------------------| | 项目 | 本报告期 | 本报告期比上年同期增减 变动幅度 (%) | | 营业收入 | ...

Financial Performance - The company's operating revenue for Q3 2021 was ¥502,464,470.33, a decrease of 2.40% compared to the same period last year[7] - The net profit attributable to shareholders of the listed company was ¥14,929,714.17, down 73.16% year-on-year[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥14,873,026.26, a decrease of 72.19% compared to the same period last year[7] - In the first three quarters of 2021, the company achieved operating revenue of CNY 1,596.79 million, a year-on-year increase of 6.81%[21] - The net profit attributable to shareholders was CNY 148.74 million, a year-on-year decrease of 10.46%[21] - Net profit for the first three quarters of 2021 was RMB 151,165,133.83, slightly down from RMB 156,695,198.59 in the same period of 2020, indicating a decrease of around 3.2%[35] - Total comprehensive income for the first three quarters of 2021 was RMB 151,203,866.37, compared to RMB 156,682,543.93 in 2020, indicating a decrease of around 3.5%[38] Assets and Liabilities - The total assets at the end of the reporting period were ¥3,563,468,417.53, an increase of 55.99% compared to the end of the previous year[10] - As of September 30, 2021, the company's total assets amounted to CNY 3,563.47 million, up from CNY 2,284.40 million at the end of 2020[24] - The company's total liabilities as of September 30, 2021, were CNY 1,001.48 million, compared to CNY 836.59 million at the end of 2020[29] - The total assets increased to $2.30 billion, reflecting an increase of $12.61 million compared to the previous year[49] - The total liabilities rose to $850.99 million, an increase of $14.39 million year-over-year[51] Shareholder Equity - The equity attributable to shareholders of the listed company was ¥2,545,636,450.86, up 76.94% year-on-year[10] - The total equity attributable to shareholders reached CNY 2,545.64 million, up from CNY 1,438.67 million at the end of 2020[29] - The company's equity attributable to shareholders was $1.44 billion, slightly down from $1.44 billion in the previous year[51] Earnings Per Share - The basic earnings per share for the reporting period was ¥0.03, a decrease of 78.57% compared to the same period last year[10] - The diluted earnings per share for the reporting period was also ¥0.03, reflecting the same percentage decrease of 78.57%[10] - Basic earnings per share for the third quarter of 2021 were RMB 0.35, down from RMB 0.41 in the same quarter of 2020, reflecting a decrease of approximately 14.6%[38] Cash Flow - The net cash flow from operating activities for the year-to-date was ¥130,955,872.29, down 46.78% compared to the same period last year[10] - Cash flow from operating activities for the first three quarters of 2021 was RMB 130,955,872.29, compared to RMB 246,074,403.89 in the same period of 2020, showing a decline of about 46.8%[42] - The company reported a total cash inflow from operating activities of RMB 1,768,973,139.43 for the first three quarters of 2021, compared to RMB 1,599,503,028.10 in 2020, representing an increase of approximately 10.6%[42] - The net cash flow from investing activities was -$516.47 million, a decrease from -$646.46 million year-over-year[44] - The net cash flow from financing activities was $999.27 million, compared to a negative $61.02 million in the previous year[44] Investment and Expenses - The company increased its investment in personnel and R&D, which contributed to the decline in net profit[13] - Research and development expenses increased to RMB 128,297,576.84 in the first three quarters of 2021, up from RMB 111,393,273.54 in 2020, marking a rise of approximately 15.2%[33] - The company reported a decrease in prepaid expenses by approximately $1.86 million[47] Shareholder Information - The top ten shareholders collectively hold 43.93% of the company's shares, with Zhang Lingyun and Cheng Xiangjun being acting in concert[14] - The cash received from minority shareholders' investments was $4.27 million[44] - The cash paid for dividends and interest was $43.89 million, compared to $60.15 million in the previous year[44]

Financial Performance - The company's operating revenue for the first half of the year reached ¥1,094,323,030.77, an increase of 11.64% compared to ¥980,200,686.68 in the same period last year [29]. - Net profit attributable to shareholders was ¥133,813,325.46, reflecting a growth of 21.10% from ¥110,497,809.05 year-on-year [29]. - The net cash flow from operating activities increased by 75.73% to ¥121,191,590.20, compared to ¥68,965,882.41 in the previous year [29]. - The company's total assets grew by 48.47% to ¥3,391,700,274.89 from ¥2,284,396,340.71 at the end of the previous year [29]. - The weighted average return on equity decreased by 2.50 percentage points to 6.10% from 8.60% in the same period last year [29]. - The company achieved a revenue of 1,094.32 million RMB in the first half of 2021, representing a year-on-year growth of 11.64% [45]. - The net profit attributable to shareholders was 133.81 million RMB, an increase of 21.10% compared to the same period last year [45]. - The company's total liabilities decreased by 34.23% to ¥31,355,672.20, which is 0.92% of total assets, mainly due to a reduction in taxes payable [60]. - The company's total liabilities decreased to ¥756,169,247.53 from ¥773,453,767.00, a reduction of 2.5% [167]. - Total equity increased significantly to ¥2,446,166,790.68 from ¥1,353,008,799.28, reflecting an increase of 80.9% [167]. Assets and Liabilities - The company's cash and cash equivalents at the end of the period amounted to ¥2,375,795,973.72, representing 70.05% of total assets, an increase of 83.97% compared to the previous year [58]. - Other receivables increased by 34.03% to ¥7,165,592.70, accounting for 0.21% of total assets, primarily due to an increase in deposits [58]. - Inventory rose by 47.55% to ¥941,531.60, maintaining a 0.03% share of total assets, attributed to the introduction of new product types [58]. - The company's long-term equity investments rose to RMB 253,557,051.20 from RMB 244,731,264.92, marking an increase of approximately 3.9% [152]. - The total current assets as of June 30, 2021, amounted to RMB 2,797,177,342.59, an increase from RMB 1,730,303,338.45 as of December 31, 2020, representing a growth of approximately 61.8% [152]. - The total assets of the company reached ¥3,202,336,038.21, compared to ¥2,126,462,566.28, representing a growth of 50.5% [167]. Research and Development - The company’s R&D expenses rose by 17.54% to 71.55 million RMB, reflecting increased investment in research and development [56]. - Research and development expenses increased to ¥84,096,429.43, up from ¥71,548,922.02, marking a rise of 17.5% [167]. Market and Competition - The company faces risks from regulatory changes in the digital reading industry, which could impact business stability [65]. - The company is exposed to intense market competition in the digital reading sector, which may affect its competitive position and performance [66]. - The average monthly active users on the digital reading platform maintained an industry-leading level, with plans to increase user acquisition through targeted advertising [48]. - The overseas reading business added over 1 million paid users, generating revenue of 148 million RMB, which is over 100% growth year-on-year [50]. Corporate Governance and Compliance - The company has confirmed that there are no non-operational fund occupations by controlling shareholders or related parties [9]. - The company has made commitments to avoid non-operating fund occupation and will ensure compliance with relevant laws and regulations [105]. - The controlling shareholders have pledged to prevent any competition with the company and will introduce any relevant business opportunities to the company [102]. - The company has not reported any violations or penalties against its directors, supervisors, or senior management during the reporting period [106]. - The company has established measures to ensure that its controlling shareholders do not interfere with its management activities [102]. Social Responsibility - The company provided job opportunities for 219 disabled individuals through its "Zhangyue Book Craftsman" project, enabling them to work remotely in e-book formatting and proofreading [91]. - The company has maintained and updated reading rooms in impoverished areas and minority communities as part of its social responsibility initiatives [91]. - The company donated 50 iReader e-book readers and 50 annual VIP reading cards, each containing access to 200,000 e-books for one year, to several primary schools in Jinggangshan [92]. - The company donated laptops to 30 students from impoverished families in Kangbao County and 30 students in Zhuozi County, aiming to support education in underprivileged areas [92]. - The company has focused on reducing carbon emissions by promoting digital reading services, which decreases the need for paper books and tree cutting [90]. Shareholder Information - The total number of ordinary shareholders reached 45,638 by the end of the reporting period [135]. - The top shareholder, Zhang Lingyun, holds 99,451,049 shares, representing 22.66% of the total shares [138]. - The second-largest shareholder, Cheng Xiangjun, owns 93,352,370 shares, accounting for 21.27% [138]. - Major shareholders include various investment funds, with significant increases in limited shares for several individuals and institutions [126]. - The company has maintained a stable shareholder structure with no significant changes in the top ten shareholders during the reporting period [135]. Future Outlook - The management provided a positive outlook for the second half of 2021, anticipating continued growth in user engagement and revenue [146]. - The company is focusing on expanding its market presence and enhancing its product offerings, although specific new products were not detailed in the report [146]. - The report indicates that the company is exploring strategic partnerships and potential acquisitions to bolster growth [146].

Financial Performance - Operating revenue for the period was CNY 553,989,673.08, representing a 12.77% increase year-on-year[11] - Net profit attributable to shareholders increased by 14.71% to CNY 63,345,053.86 compared to the same period last year[11] - Basic earnings per share rose by 7.14% to CNY 0.15 per share[11] - Total revenue for Q1 2021 reached ¥553,989,673.08, an increase of 12.8% compared to ¥491,237,835.90 in Q1 2020[45] - Operating profit for Q1 2021 was ¥77,443,757.93, up from ¥63,843,537.88 in Q1 2020, reflecting a growth of 21.3%[45] - Net profit for Q1 2021 was ¥62,944,277.53, compared to ¥55,794,680.00 in Q1 2020, representing an increase of 12.9%[47] - Total comprehensive income for the first quarter of 2021 was ¥47,637,374.27, compared to ¥46,522,945.97 in the same period of 2020, reflecting a year-over-year increase[55] Assets and Liabilities - Total assets increased by 48.22% to CNY 3,385,895,826.28 compared to the end of the previous year[11] - Cash and cash equivalents increased to ¥2,285,909,573.09 from ¥1,291,384,613.59, a growth of 77.01% due to the arrival of funds from a private placement[21] - Total assets increased to ¥3,200,394,789.76 as of March 31, 2021, up from ¥2,126,462,566.28 at the end of December 2020, representing a growth of approximately 50.5%[39] - Total liabilities decreased slightly to ¥763,776,411.39 from ¥773,453,767.00, a reduction of approximately 1.7%[39] - Non-current liabilities totaled ¥34,782,085.29, up from ¥18,300,705.47, indicating a growth of approximately 90%[39] - The total liabilities rose from ¥836,591,829.35 to ¥850,985,665.96, an increase of ¥14,393,836.61[75] - Total liabilities increased to CNY 773,453,767.00 from CNY 787,184,739.14, an increase of CNY 13,730,972.14 attributed to the new leasing standard[82] Cash Flow - Cash flow from operating activities showed a significant decline of 178.87%, resulting in a net outflow of CNY 28,652,389.50[11] - Net cash flow from operating activities turned negative at -¥28,652,389.50 compared to ¥36,327,984.22, a decline of 178.87% attributed to increased employee compensation and promotional costs[21] - Cash inflow from operating activities amounted to ¥555,319,337.08, up from ¥455,873,924.27 in the first quarter of 2020, representing a growth of approximately 21.8%[59] - Cash outflow from investing activities totaled ¥634,476,520.34, leading to a net cash flow from investing activities of -¥629,856,520.34, compared to -¥144,860,365.89 in the previous year[61] - Cash inflow from financing activities was ¥1,045,436,416.83, with a net cash flow from financing activities of ¥1,042,229,644.38, indicating strong capital raising efforts[61] Shareholder Information - The total number of shareholders reached 39,944 by the end of the reporting period[14] - The top two shareholders, Zhang Lingyun and Cheng Xiangjun, collectively hold 43.93% of the company's shares[18] Expenses - Research and development expenses increased to ¥43,781,396.11 in Q1 2021, up from ¥35,244,609.65 in Q1 2020, marking a rise of 24.3%[45] - Sales expenses for Q1 2021 were ¥130,259,972.40, an increase from ¥116,793,811.29 in Q1 2020, which is a growth of 11.5%[45] - The tax expenses for Q1 2021 were ¥14,359,624.95, significantly higher than ¥5,694,563.51 in Q1 2020, showing an increase of 152.5%[47] Equity and Reserves - Net assets attributable to shareholders increased by 76.60% to CNY 2,540,660,662.85 compared to the end of the previous year[11] - Shareholders' equity totaled ¥2,436,618,378.37, up from ¥1,353,008,799.28, reflecting an increase of around 80.1%[41] - The capital reserve increased significantly to ¥1,369,339,584.43 from ¥369,535,586.42, representing a growth of about 270%[39] - The company reported a decrease in undistributed profits to CNY 511,106,091.42 from CNY 509,377,463.22, a decrease of CNY 1,728,628.20[85]

Financial Performance - Net profit attributable to shareholders was ¥166,115,485.60, representing a growth of 53.75% year-on-year[11]. - Operating revenue for the first nine months was ¥1,495,034,254.71, up 7.83% from the same period last year[11]. - Basic earnings per share rose to ¥0.41, reflecting a 51.85% increase year-on-year[13]. - The weighted average return on net assets improved to 12.82%, an increase of 3.38 percentage points[13]. - The company reported a total profit of ¥72,545,467.01 for Q3 2020, compared to ¥44,704,647.38 in Q3 2019, marking a significant increase[59]. - Net profit for Q3 2020 was ¥47,759,148.84, compared to ¥36,366,510.95 in Q3 2019, reflecting a 31.5% year-over-year growth[59]. - The company’s total revenue for the first three quarters of 2020 was ¥1,495,034,254.71, a 7.8% increase from ¥1,386,496,470.70 in the same period of 2019[55]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥2,120,392,108.44, an increase of 10.92% compared to the end of the previous year[11]. - The company’s net assets attributable to shareholders increased by 8.43% to ¥1,345,313,028.93 compared to the previous year[11]. - Total liabilities increased to ¥769,183,538.22 from ¥656,980,767.40, which is an increase of approximately 17.0%[43]. - Current liabilities rose to ¥764,317,149.37, compared to ¥654,709,539.07, indicating an increase of about 16.7%[41]. - The total current liabilities increased by 43.47% to CNY 414,931,284.00, reflecting business expansion and operational optimization[24]. - The company reported contract liabilities of CNY 253,338,190.05, resulting from the reclassification of advance receipts under the new revenue recognition standards[24]. Cash Flow - The net cash flow from operating activities increased by 120.52% to ¥246,074,403.89 compared to the previous year[11]. - Cash flow from operating activities for the first three quarters of 2020 was RMB 246.07 million, significantly higher than RMB 111.59 million in the same period of 2019, marking a 120.4% increase[76]. - The company’s cash flow from investing activities worsened by 96.54%, amounting to CNY -646,458,891.11, due to increased equity investments and large certificate purchases[27]. - The company reported cash outflows from investment activities totaling CNY 985,868,138.46, compared to CNY 1,708,989,509.86 in the previous year, indicating a reduction in investment spending[81]. - The company experienced a net decrease in cash and cash equivalents of -CNY 522,687,013.54 in Q3 2020, compared to -CNY 301,645,139.84 in Q3 2019[84]. Shareholder Information - The total number of shareholders at the end of the reporting period was 34,119, with the top two shareholders holding a combined 59.31% of the shares[20]. - The company is in the process of a non-public offering of A-shares, which is subject to further review by the China Securities Regulatory Commission, with no certainty of final approval[32]. Expenses and Income - Financial expenses decreased by 34.93% to CNY -19,071,572.91 from CNY -29,310,059.59 year-on-year, mainly due to the impact of exchange gains and interest income[27]. - Other income rose by 41.99% to CNY 13,226,564.34, attributed to an increase in deductible input tax and related subsidies received[27]. - Investment income decreased by 31.63% to CNY 21,283,573.67, primarily due to the absence of long-term equity investment disposals compared to the previous year[27]. - The company reported a 226.68% increase in income tax expenses to CNY 36,339,936.73, driven by growth in copyright and commercialization value-added businesses[27]. Research and Development - Research and development expenses increased to ¥39,844,351.52 in Q3 2020, up 21.5% from ¥32,826,258.70 in Q3 2019[59]. - Research and development expenses for Q3 2020 amounted to RMB 37.12 million, up from RMB 32.35 million in Q3 2019, representing a 14.0% increase[68]. Accounting Policies - The company adjusted its accounting policies in accordance with the new revenue standards effective from January 1, 2020, impacting the reporting of contract liabilities[92]. - The company has implemented changes in accounting policies to enhance financial reporting accuracy[100].

Financial Performance - The company's operating revenue for the first half of 2020 was approximately RMB 980.20 million, representing an increase of 8.96% compared to RMB 899.62 million in the same period last year[25]. - The net profit attributable to shareholders of the listed company reached approximately RMB 110.50 million, a significant increase of 72.82% from RMB 63.94 million in the previous year[28]. - The net profit after deducting non-recurring gains and losses was approximately RMB 109.37 million, up 137.28% from RMB 46.09 million in the same period last year[28]. - The basic earnings per share for the first half of 2020 was RMB 0.28, a 75% increase compared to RMB 0.16 in the same period last year[29]. - The weighted average return on net assets increased to 8.60%, up 2.79 percentage points from 5.81% in the previous year[29]. - The total operating revenue for the first half of 2020 reached RMB 980,200,686.68, an increase from RMB 899,624,258.00 in the same period of 2019, representing an increase of approximately 8.9%[134]. - Operating profit for the first half of 2020 was RMB 123,083,105.74, compared to RMB 58,413,880.54 in the first half of 2019, showing a significant increase of approximately 110.8%[138]. - Net profit for the first half of 2020 was RMB 108,936,049.75, up from RMB 55,228,962.10 in the same period of 2019, reflecting an increase of approximately 96.9%[138]. - The total comprehensive income of RMB 108,910,704.14 for the first half of 2020, compared to RMB 55,349,495.01 in the same period of 2019, an increase of approximately 96.9%[140]. Cash Flow and Assets - The net cash flow from operating activities was approximately RMB 68.97 million, a decrease of 61.74% compared to RMB 180.27 million in the same period last year[28]. - The total assets at the end of the reporting period were approximately RMB 1,968.20 million, an increase of 2.96% from RMB 1,911.66 million at the end of the previous year[28]. - The net cash flow from operating activities decreased by 61.74% to approximately ¥68.97 million, mainly due to an increase in operating receivables[51]. - The total current assets amounted to approximately CNY 1,504.34 million, a decrease from CNY 1,537.90 million at the end of 2019, reflecting a decline of about 2.4%[122]. - The cash and cash equivalents were reported at CNY 1,124.68 million, down from CNY 1,198.92 million, indicating a decrease of approximately 6.2%[122]. - The total liabilities amounted to ¥664,760,288.32, compared to ¥656,980,767.40, showing a slight increase of about 1.1%[125]. - The cash inflow from investment activities was ¥215,000,000.00, significantly lower than ¥702,000,000.00 in the previous period, reflecting reduced investment recovery[155]. - The cash and cash equivalents at the end of the period were ¥181,394,209.51, a decrease from ¥219,648,524.60 in the previous period[155]. Market and User Growth - The average monthly active user count for the digital reading platform was 170 million, indicating sustained user growth[45]. - The user base for online literature in China reached 455 million by March 2020, with a growth of 23.37 million users since the end of 2018[34]. - The digital reading market in China reached a scale of 28.88 billion yuan in 2019, reflecting robust market growth[33]. - The global digital reading market revenue was 13.69 billion USD in 2019, indicating a growing international market[35]. Research and Development - The company holds 276 patents and 122 software copyrights, showcasing its strong research and development capabilities[40]. - R&D expenses rose by 18.97% to approximately ¥71.55 million, driven by higher salaries for R&D personnel[51]. - Research and development expenses increased to RMB 71,548,922.02 in the first half of 2020, compared to RMB 60,141,102.61 in the first half of 2019, marking an increase of approximately 18.5%[134]. Risks and Challenges - The company faces risks from regulatory adjustments in the internet digital reading industry, which could impact business stability and operations[60]. - Intense market competition in the digital reading sector poses a risk to the company's competitive advantage and market position[61]. - The prevalence of copyright infringement and piracy in digital content directly affects the company's sales revenue and operational performance[61]. - There is a risk of losing core management and technical personnel due to increased competition for talent in the industry[62]. - Insufficient innovation in business models may hinder the company's ability to adapt to market changes and achieve performance targets[62]. Shareholder and Governance Matters - The company does not plan to distribute profits or increase capital reserves through stock issuance for the first half of 2020[8]. - The company has committed to not transferring or managing shares held by its actual controllers for 36 months post-IPO[69]. - The company has outlined a strategy to avoid conflicts of interest and ensure that any business opportunities are directed towards the company[75]. - The company has established a lock-up period for shares, extending if the stock price falls below the issue price for 20 consecutive trading days post-listing[73]. - The company will take necessary actions to maintain compliance with listing conditions regarding share distribution after implementing stock price stabilization measures[76]. Corporate Social Responsibility - The company donated 1 million RMB each to Hubei Provincial People's Hospital and Wuhan University Zhongnan Hospital to support COVID-19 prevention efforts[104]. - The company has established and maintained reading rooms in impoverished areas and trained 140 disabled individuals, with 50 successfully employed, achieving an average monthly income exceeding 2,000 RMB[101]. - The company will continue its "Cultural Dream Building" and "Assistive Employment for Disabled" projects to provide more job opportunities for impoverished individuals[105]. Audit and Compliance - The company has reappointed Rongcheng Accounting Firm as its auditor for the fiscal year 2020, which was approved at the 2019 annual shareholders' meeting[88]. - There are no significant litigation or arbitration matters reported during the reporting period, indicating a stable legal environment for the company[88]. - The company has not encountered any issues with non-standard audit reports, indicating a clean financial record for the reporting period[88]. - The company maintains a continuous operation basis for its financial reporting, indicating stability in its business model[188].

Financial Performance - Net profit attributable to shareholders increased by 78.24% to CNY 55,222,739.73 year-on-year[10] - Operating revenue rose by 9.25% to CNY 491,237,835.90 compared to the same period last year[10] - Basic earnings per share increased by 75% to CNY 0.14[10] - Operating profit for Q1 2020 reached CNY 63,843,537.88, up from CNY 31,320,811.92 in Q1 2019, representing a growth of 104.5%[42] - The company reported a net profit of CNY 55,794,680.00 for Q1 2020, compared to CNY 30,427,118.34 in Q1 2019, marking an increase of 83.4%[42] - Total comprehensive income amounted to CNY 46,522,945.97, compared to CNY 19,729,409.14 in the previous period[50] Assets and Liabilities - Total assets increased by 6.36% to CNY 2,033,310,439.30 compared to the end of the previous year[10] - Total liabilities increased to ¥722,837,646.10 from ¥656,980,767.40, representing a growth of approximately 10.05%[32] - Total equity rose to ¥1,310,472,793.20 compared to ¥1,254,676,026.29, marking an increase of about 4.45%[32] - Current assets totaled ¥1,398,791,397.11, up from ¥1,324,650,233.27, reflecting a growth of approximately 5.58%[36] - Non-current assets totaled ¥425,194,762.19, up from ¥403,963,091.16, indicating a growth of about 5.67%[36] Cash Flow - Net cash flow from operating activities decreased by 61.28% to CNY 36,327,984.22 compared to the previous year[10] - Cash flow from operating activities generated a net cash inflow of CNY 36,327,984.22, down from CNY 93,824,825.35 year-over-year[55] - Cash inflow from sales of goods and services was CNY 447,120,163.78, a decrease of 9.6% from CNY 494,824,730.32 in the same quarter last year[52] - Cash outflow for purchasing goods and services was CNY 226,201,794.42, down from CNY 290,929,062.29, reflecting a 22.2% reduction[52] - Cash flow from investment activities resulted in a net outflow of CNY 144,860,365.89, compared to a net outflow of CNY 285,928,748.50 in the previous year[55] Shareholder Information - The number of shareholders at the end of the reporting period was 28,953[12] - The top two shareholders, Zhang Lingyun and Cheng Xiangjun, collectively hold 59.31% of the company's shares[12] Taxation - The income tax expense surged by 591.54% to ¥5,694,563.51 from ¥823,463.58, attributed to increased business volume leading to higher tax liabilities[19] - The company reported a 197.79% increase in taxes and surcharges to ¥2,919,903.31 from ¥980,535.77, driven by growth in business activities[19] - Tax expenses for Q1 2020 were CNY 5,694,563.51, significantly higher than CNY 823,463.58 in Q1 2019, reflecting a growth of 591.5%[42] Investments and Strategic Plans - The company plans to introduce Baidu Group as a strategic investor through a non-public issuance of A-shares, enhancing collaboration in strategic investment and digital content licensing[20] - The company received acceptance from the China Securities Regulatory Commission for its application regarding the non-public issuance of A-shares, although approval remains uncertain[22]