Financial Performance - The company reported a revenue of RMB 1.2 billion for the first half of 2021, representing a year-over-year increase of 15%[22]. - The company's operating revenue for the first half of the year reached ¥14,034,261,614.07, representing a 141.65% increase compared to the same period last year[31]. - Net profit attributable to shareholders was ¥216,170,273.16, a 90.06% increase year-over-year[31]. - The net profit after deducting non-recurring gains and losses was ¥200,188,955.23, reflecting a 93.02% increase compared to the previous year[31]. - The company's total revenue reached approximately 116.97 billion RMB, with a net profit of around 52.64 billion RMB, indicating a strong financial performance[157]. - The company's basic and diluted earnings per share for the first half of 2021 were both CNY 0.63, up from CNY 0.56 in the same period of 2020[194]. - The total profit for the first half of 2021 was CNY 347,307,365.89, compared to CNY 173,784,534.70 in the same period of 2020, marking an increase of about 99.9%[194]. Research and Development - Investment in R&D for new technologies increased by 30%, focusing on enhancing digital services and e-commerce platforms[22]. - Research and development expenses increased to ¥19,069,871.89 in the first half of 2021, up from ¥8,806,259.24 in the same period of 2020, marking an increase of approximately 116.0%[187]. - Research and development expenses for the first half of 2021 amounted to CNY 5,257,130.17, a substantial rise from CNY 1,288,679.26 in the previous year, reflecting an increase of approximately 308.5%[196]. Market Expansion and Strategy - The company expects a revenue growth of 20% for the second half of 2021, driven by new product launches and market expansion strategies[22]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2022[22]. - A strategic acquisition of a local competitor is anticipated to be finalized by Q4 2021, expected to enhance market capabilities[22]. - The company is focused on developing new products and technologies to enhance its competitive edge in the market[162]. - The company has outlined a strategy for potential mergers and acquisitions to drive growth and market expansion[162]. Risk Management - The company faces various risks, which are detailed in the "Management Discussion and Analysis" section of the report[10]. - The report includes a forward-looking statement risk declaration, indicating that future plans and strategies do not constitute a commitment to investors[9]. - The company faces risks related to the macroeconomic cycle, particularly affecting small and medium-sized enterprises (SMEs) that are the majority of its registered paying members[81]. - The company is exposed to policy risks in the internet industry, which could adversely affect its business operations if future regulations change[82]. - Internet system risks, including potential network failures and cyberattacks, pose a threat to the company's ability to provide stable services[83]. Corporate Governance - The board of directors confirmed that all members attended the board meeting, ensuring the accuracy and completeness of the semi-annual report[7]. - The semi-annual report for 2021 has not been audited, but management has declared the financial report to be true and complete[7]. - The company has not violated decision-making procedures for providing guarantees[10]. - The company has committed to long-term shareholding restrictions for major shareholders, ensuring stability[110]. - The company confirms that all commitments made regarding shareholding and competition are independently enforceable and will remain valid during the controlling period[119]. Shareholder Information - The company reported a total of 13,320 shareholders by the end of the reporting period, reflecting a stable shareholder base[159]. - Major shareholder Qian Xiaojun increased holdings by 18,291,206 shares, holding a total of 58,938,331 shares, representing 17.14% of the total shares[160]. - The top ten shareholders collectively hold a significant portion of the company's shares, with the largest shareholder holding over 17%[160]. - The company has a strong liquidity position, with no pledged or frozen shares reported among the top shareholders[160]. Environmental and Social Responsibility - The company has not faced any environmental penalties or violations during the reporting period[100]. - The company has maintained strict adherence to environmental protection laws and regulations[100]. - The company has committed 20 million yuan in special funds for rural revitalization projects in Yingshan County, Sichuan Province[103]. - The company is actively involved in government projects aimed at promoting e-commerce in rural areas[102].

Financial Performance - The company's operating revenue for 2020 was approximately RMB 17.16 billion, a 138.38% increase compared to RMB 7.20 billion in 2019 [29]. - The net profit attributable to shareholders for 2020 was approximately RMB 304.48 million, reflecting a 91.57% increase from RMB 158.94 million in 2019 [29]. - The net cash flow from operating activities for 2020 was approximately RMB 776.74 million, a 104.55% increase compared to RMB 379.72 million in 2019 [29]. - The total assets at the end of 2020 were approximately RMB 6.72 billion, a 201.75% increase from RMB 2.23 billion at the end of 2019 [29]. - The net assets attributable to shareholders at the end of 2020 were approximately RMB 3.78 billion, a 250.17% increase from RMB 1.08 billion at the end of 2019 [29]. - The basic earnings per share for 2020 were RMB 1.47, a 61.54% increase from RMB 0.91 in 2019 [30]. - The diluted earnings per share for 2020 were also RMB 1.47, maintaining the same growth rate of 61.54% compared to 2019 [30]. - The weighted average return on equity for 2020 was 21.38%, a decrease of 0.83 percentage points from 22.21% in 2019 [30]. - The company reported a quarterly revenue of RMB 7.13 billion in Q4 2020, contributing significantly to the annual growth [32]. - The net profit attributable to shareholders in Q4 2020 was approximately RMB 125.69 million, indicating strong performance in the last quarter of the year [32]. Dividend and Capital Plans - The profit distribution plan for 2020 includes a cash dividend of 1.32 CNY per 10 shares, totaling 31,306,784.26 CNY (including tax) to all shareholders [10]. - The company plans to increase its capital stock by 4.5 shares for every 10 shares held, using capital reserves for the stock dividend distribution [10]. Audit and Compliance - The company has received a standard unqualified audit report from Lixin Certified Public Accountants [9]. - The board of directors and supervisory board members have confirmed the accuracy and completeness of the annual report, with no significant omissions or misleading statements [7]. - There are no non-operating fund occupations by controlling shareholders or related parties reported [11]. - The company has not violated decision-making procedures for external guarantees [11]. - The financial report has been declared accurate and complete by the responsible persons of the company [9]. Risk Management - The company has outlined potential risks in the "Discussion and Analysis of Operating Conditions" section of the report [11]. - The company’s future plans and development strategies are subject to investment risks and do not constitute a commitment to investors [11]. - The company recognizes potential risks from macroeconomic cycles affecting small and medium-sized enterprises, which are crucial for its B2B information service platform's performance [194]. - The company faces policy risks related to potential changes in internet industry regulations that could impact its business operations [195]. Business Operations and Strategy - The company operates a B2B e-commerce and industrial internet platform, focusing on online transactions and commercial information services for industrial products and raw materials [37]. - The main business segments include self-operated e-commerce, third-party e-commerce, SaaS services, and commercial information services, targeting various industries such as chemicals, paper, and agriculture [38]. - The marketing model combines online and offline sales, leveraging platforms like Guolian Resource Network for information services and multiple e-commerce sites for product transactions [42]. - The company has established regional marketing centers across South China, East China, Southwest China, Central China, and Northeast China to enhance customer development and service [44]. - The online customer acquisition strategy includes various digital marketing tactics such as search engine marketing and social media promotions to drive traffic to the e-commerce platforms [44]. - The company aims to provide digital solutions and cloud application services through its technology platform, Guolian Cloud, enhancing the digital transformation of industries [39]. - The company is actively developing a vertical industrial internet application platform, leveraging its B2B e-commerce strengths and industry experience [68]. - The company’s future strategy revolves around the core principles of "platform, technology, and data" to enhance traditional industries and promote rapid business growth [177]. Customer and Market Growth - The number of customers for Duoduo e-commerce increased to 8,234, a growth of 139.71% compared to the previous year [52]. - The average transaction value per Duoduo customer was CNY 207.13 thousand, showing a slight increase of 0.80% year-on-year [52]. - The number of customers for Guolian Resource Network rose to 9,425, marking a growth of 15.14% year-on-year [52]. - The company reported a significant increase in customer numbers due to the pandemic, particularly for Duoduo e-commerce, which experienced rapid growth [55]. - The company’s online commodity trading business has become the main revenue source, accounting for 99.40% of total revenue [59]. Research and Development - The company has established a mature technology team and developed several application technologies and software copyrights [77]. - The company focuses on integrating new technologies such as cloud computing and big data into its manufacturing services [77]. - Research and development expenses rose to ¥29,217,856.89, marking a 68.99% increase compared to the previous year [90]. - The company has increased its investment in research and development, with development expenditures rising by 188.1% to ¥18,610,337.44 [139]. - The company has 199 R&D personnel, making up 24.69% of the total workforce [137]. Supply Chain and Procurement - The company aims to enhance its supply chain management services through the integration of online transactions and various supply chain processes [65]. - The company has established strategic agreements with suppliers to enhance collaboration and drive long-term growth [152]. - The company’s procurement framework agreements are based on historical transaction data and market supply-demand conditions [156]. - The total procurement cost for the hygiene products industry was approximately CNY 2.14 billion, representing 12.94% of total costs, with a year-on-year increase of 13.7% [115]. - The online product trading segment saw a procurement cost of CNY 16.54 billion, which constituted 99.86% of total costs, reflecting a significant year-on-year increase of 146.82% [115]. Future Outlook - The company expects continued rapid growth in new platforms and product categories, indicating that gross margins may not see significant improvement in the short term [113]. - The company plans to enhance gross margin through improved bargaining power and exploring new business models, such as cloud factories and capacity management [113]. - The company is committed to advancing smart logistics, digital warehousing, and industrial internet services to build a digital ecosystem for the real economy [179]. - The B2B vertical e-commerce platforms are expected to drive rapid development in industrial e-commerce, enhancing supply chain efficiency and reducing costs [172].

Financial Performance - Operating revenue for the year-to-date was CNY 6,076,157,657.73, an increase of 155.16% year-on-year[11] - Net profit attributable to shareholders was CNY 78,019,914.22, reflecting a year-on-year increase of 91.57%[11] - Net cash flow from operating activities was CNY 103,310,040.06, up 160.93% compared to the same period last year[11] - The net profit after deducting non-recurring gains and losses was CNY 76,212,633.36, an increase of 116.25% year-on-year[11] - Basic earnings per share increased by 13.79% to CNY 0.33[11] - The company's net profit for Q1 2021 reached RMB 7,390,429.91, up 136.5% from RMB 3,123,050.09 in Q1 2020[48] - The company's total comprehensive income for Q1 2021 was ¥94,722,599.85, compared to ¥47,099,008.90 in Q1 2020, reflecting a growth of about 101.5%[43] Assets and Liabilities - Total assets at the end of the reporting period were CNY 6,419,723,648.82, a decrease of 4.54% compared to the end of the previous year[11] - Total liabilities decreased to CNY 2,402,926,566.97 from CNY 2,814,247,315.14, a reduction of 14.6%[31] - The company's total assets as of March 31, 2021, were CNY 6,419,723,648.82, down from CNY 6,724,821,897.03, indicating a decrease of 4.5%[31] - The total amount of contract liabilities rose by 36.05% to ¥725,811,366.91, attributed to the rapid growth in transactions on the company's e-commerce platform[19] - The total liabilities increased to ¥237,263,479.66 in Q1 2021 from ¥233,653,272.46 in Q1 2020, marking a rise of approximately 2.6%[38] Cash Flow - The net cash flow from operating activities improved to ¥103,310,040.06, a 160.93% increase from ¥39,593,356.43, showcasing enhanced cash collection from sales[21] - The cash inflow from operating activities totaled RMB 6,957,518,758.72, compared to RMB 2,663,659,086.95 in Q1 2020, marking an increase of 161.5%[50] - The net cash flow from operating activities was 291,686.93 RMB, a significant improvement compared to -27,180,212.11 RMB in the same quarter last year[55] - The total cash inflow from investment activities reached 1,429,482,353.48 RMB, compared to 332,558,091.77 RMB in the previous year, indicating a substantial increase[55] Investments and Expenses - Research and development expenses increased by 150.98% to ¥8,379,136.78, indicating a stronger focus on innovation and product development[21] - The company's long-term equity investments surged by 216.07% to ¥13,952,106.08, reflecting increased external investments during the reporting period[19] - The company’s income tax expenses increased by 134.00% to ¥31,434,366.20, driven by higher profits during the reporting period[21] - The company's financial expenses turned positive with a net income of -¥4,707,840.12, a significant improvement from the previous year's expenses of ¥3,492,560.23[21] Shareholder Information - The total number of shareholders at the end of the reporting period was 9,097[14] - The company reported a total equity of CNY 4,016,797,081.85, up from CNY 3,910,574,581.89, an increase of 2.7%[31] - The company's total equity reached ¥3,910,574,581.89, including ¥619,646,982.62 in undistributed profits[63] - The total equity attributable to shareholders was ¥3,779,953,947.89, showcasing a robust shareholder base[63] Future Outlook - The company has indicated plans for market expansion and new product development in the upcoming quarters[27] - The company is focusing on enhancing its technology capabilities and exploring potential mergers and acquisitions to drive growth[27]

Profit Distribution and Financial Performance - The profit distribution plan for 2020 includes a cash dividend of 1.32 CNY per 10 shares, totaling 31,306,784.26 CNY (including tax) to all shareholders[10]. - The company has not disclosed any significant changes in total share capital from the announcement date to the dividend distribution date[10]. - The net profit attributable to shareholders for 2020 was ¥304,482,697.92, a 91.57% increase from ¥158,942,121.75 in 2019[33]. - Basic earnings per share for 2020 were ¥1.47, a 61.54% increase from ¥0.91 in 2019[34]. - The company reported quarterly revenues of ¥7,126,007,729.90 in Q4 2020, contributing to a total annual revenue of ¥17,157,783,238.42[37]. - The net profit attributable to shareholders in Q4 2020 was ¥125,690,691.80, showing strong performance in the last quarter[37]. - The company's operating revenue for 2020 reached ¥17,157,783,238.42, representing a 138.38% increase compared to ¥7,197,680,121.94 in 2019[33]. - The net cash flow from operating activities for 2020 was ¥776,737,609.12, up 104.55% from ¥379,722,775.31 in 2019[33]. - The total assets at the end of 2020 amounted to ¥6,724,821,897.03, a 201.75% increase from ¥2,228,615,525.51 at the end of 2019[33]. - The net assets attributable to shareholders at the end of 2020 were ¥3,779,953,947.89, reflecting a 250.17% increase from ¥1,079,467,552.49 at the end of 2019[33]. Audit and Compliance - The company has received a standard unqualified audit report from Lixin Certified Public Accountants[9]. - The board of directors and supervisory board members have confirmed the accuracy and completeness of the annual report[7]. - There are no non-operating fund occupation situations by controlling shareholders or related parties[12]. - The company has not violated decision-making procedures for external guarantees[12]. - The report indicates that all board members attended the board meeting, ensuring collective responsibility for the report's content[8]. Risk Management and Forward-Looking Statements - The company has outlined potential risks in the "Discussion and Analysis of Operating Conditions" section of the report[12]. - The company emphasizes that forward-looking statements do not constitute a commitment to investors, highlighting investment risks[11]. - The company faces risks related to internet system stability, which could disrupt its operations and market image if network failures or cyberattacks occur[142]. - The company recognizes the potential impact of macroeconomic conditions on the number and operational quality of small and medium-sized enterprises, which directly affects its performance[150]. - The company is aware of the risks associated with price fluctuations in its main products, which could affect its profitability despite strategies to stabilize customer demand[152]. Business Strategy and Market Position - The company plans to continue expanding its digital technology services and e-commerce solutions in the coming years[28]. - The company operates multiple vertical e-commerce platforms, focusing on industrial products and materials, enhancing its competitive edge in the B2B sector[44]. - The company’s main business model includes B2B e-commerce and industrial internet services, providing a range of digital solutions and commercial information services[44]. - The company aims to expand its market presence through strategic development in vertical e-commerce platforms, particularly in traditional industries[50]. - The company aims to enhance its industrial internet application platform, having been selected for several key industrial e-commerce and internet integration projects by the Ministry of Industry and Information Technology[119]. Research and Development - The company’s R&D expenses rose by 68.99% to CNY 29,217,856.89, reflecting increased investment in technology development[81]. - The total R&D investment amounted to ¥46,883,765.75, accounting for 0.27% of total revenue[95]. - The number of R&D personnel was 199, making up 24.69% of the total workforce[95]. - The company is focusing on technological talent acquisition and industry expert recruitment to improve its R&D capabilities and operational efficiency[144]. Shareholder Commitments and Financial Strategy - The company has commitments from major shareholders regarding share transfer restrictions for a period of 12 to 36 months post-IPO, ensuring stability in shareholding[162]. - The company has a strategy to maintain a low financial cost and improve its industry position through retained earnings[157]. - The company will not arrange any other equity financing plans within the next 12 months, considering the progress of planned investment projects and capital structure[177]. - The company has confirmed that it will not provide proprietary technology or customer information to competing businesses[176]. - The company is committed to strengthening its platform's information control system to mitigate the risks of false or illegal information being posted by members[153]. Market Trends and Industry Insights - The B2B e-commerce market in China is projected to exceed ¥30 trillion in 2020, with a compound annual growth rate of 21.62% from 2012 to 2019[50]. - The B2B vertical e-commerce platform is integrating deeply with smart supply chain services, providing free cloud ERP and various SaaS services to industry users[51]. - The company has established a strong foundation in the industrial e-commerce sector, leveraging its extensive experience and industry knowledge to drive growth[50]. - The company was recognized as a "National Supply Chain Innovation and Application Pilot Enterprise" in October 2018, enhancing its strategic opportunities in supply chain and internet integration[51].

[Important Notice](index=3&type=section&id=%E4%B8%80%E3%80%81%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) [Statement on Report Authenticity and Completeness](index=3&type=section&id=2.1) The company's board of directors, supervisory board, and all senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report and assume corresponding legal responsibilities, with key financial officers ensuring the accuracy of financial statements - Company management confirmed the truthfulness, accuracy, and completeness of the Q3 2020 report[7](index=7&type=chunk)[8](index=8&type=chunk) - This Q3 2020 report is unaudited[9](index=9&type=chunk) [Company Profile](index=3&type=section&id=%E4%BA%8C%E3%80%81%20%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) [Key Financial Data](index=3&type=section&id=2.5%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) As of September 30, 2020, total assets grew by **61.33%**, with Q1-Q3 2020 revenue reaching **10.03 billion Yuan** (up **142.00%**) and net profit attributable to shareholders **179 million Yuan** (up **81.28%**), alongside a **2,849.02% surge in net operating cash flow** | Indicator | Q1-Q3 2020 / Period End | Q1-Q3 2019 / Period End | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Total Assets (Yuan)** | 3,595,493,131.90 | 2,228,615,525.51 | 61.33% | | **Net Assets Attributable to Shareholders (Yuan)** | 1,241,343,332.74 | 1,079,467,552.49 | 15.00% | | **Operating Revenue (Yuan)** | 10,031,775,508.52 | 4,145,336,906.33 | 142.00% | | **Net Profit Attributable to Shareholders (Yuan)** | 178,792,006.12 | 98,626,865.97 | 81.28% | | **Net Cash Flow from Operating Activities (Yuan)** | 369,893,607.47 | 12,542,939.33 | 2,849.02% | | **Basic Earnings Per Share (Yuan/Share)** | 0.88 | 0.87 | 1.15% | [Non-recurring Gains and Losses](index=3&type=section&id=%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) In Q1-Q3 2020, total non-recurring gains and losses amounted to **14.71 million Yuan**, primarily from government subsidies of **19.02 million Yuan**, resulting in a **164 million Yuan** net profit attributable to shareholders after non-recurring items, up **70.31%** | Item | Amount from Year Start to Period End (Yuan) | | :--- | :--- | | Government Grants Recognized in Current P&L | 19,024,695.10 | | Other Non-operating Income and Expenses | 2,956,390.83 | | Impact on Minority Interests (After Tax) | -2,202,932.03 | | Income Tax Impact | -5,139,398.26 | | **Total** | **14,708,352.36** | - In Q1-Q3 2020, net profit attributable to shareholders after deducting non-recurring gains and losses was **164 million Yuan**, a **70.31% increase** from **96.34 million Yuan** in the same period last year[10](index=10&type=chunk) [Shareholder Information](index=4&type=section&id=%E6%88%AA%E6%AD%A2%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E6%B5%81%E9%80%9A%E8%82%A1%E4%B8%9C%EF%BC%88%E6%88%96%E6%97%A0%E9%99%90%E5%94%AE%E6%9D%A1%E4%BB%B6%E8%82%A1%E4%B8%9C%EF%BC%89%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of the reporting period end, the company had **14,385 shareholders**, with top two shareholders Qian Xiaojun and Liu Quan acting in concert, holding nearly **40%** combined, while other top ten shareholders are institutional or corporate entities with dispersed holdings - As of the reporting period end, the company had **14,385 shareholders**[15](index=15&type=chunk) | Shareholder Name | Number of Shares Held (Shares) | Proportion (%) | | :--- | :--- | :--- | | Qian Xiaojun | 40,647,125 | 19.91 | | Liu Quan | 40,233,875 | 19.70 | | Dongzheng Zhoude (Shanghai) Venture Capital Center (Limited Partnership) | 8,410,000 | 4.12 | | SME Development Fund (Jiangsu Limited Partnership) | 7,548,445 | 3.70 | - Shareholders Liu Quan and Qian Xiaojun are parties acting in concert; the company is unaware of any other related party relationship or concerted actions among the top ten shareholders[15](index=15&type=chunk) [Significant Events](index=6&type=section&id=%E4%B8%89%E3%80%81%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [Analysis of Significant Changes in Key Financial Indicators](index=6&type=section&id=3.1%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) During the reporting period, the company's rapid business development led to significant changes across balance sheet and income statement items, with substantial increases in cash, prepayments, and fixed assets reflecting expansion and asset acquisition, while revenue and costs grew rapidly, and operating cash flow significantly improved, indicating enhanced profitability and operational efficiency [Significant Changes in Balance Sheet Items](index=6&type=section&id=%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E9%A1%B9%E7%9B%AE) Balance sheet changes are primarily driven by business expansion, with cash increasing **97.12%** due to sales collection, prepayments rising **73.87%** for e-commerce festival inventory, and fixed assets surging **396.07%** from property purchases, while liabilities like short-term borrowings and payables increased with procurement scale - **Cash and Cash Equivalents**: Period-end balance of **1.559 billion Yuan**, a **97.12% increase** from the beginning of the year, primarily due to rapid growth in operating revenue and cash collection[19](index=19&type=chunk)[23](index=23&type=chunk) - **Prepayments**: Period-end balance of **961 million Yuan**, a **73.87% increase** from the beginning of the year, mainly to secure inventory for the Duoduo platform e-commerce festival[19](index=19&type=chunk)[23](index=23&type=chunk) - **Fixed Assets**: Period-end balance of **108 million Yuan**, a **396.07% increase** from the beginning of the year, primarily due to property purchases during the reporting period[19](index=19&type=chunk)[23](index=23&type=chunk) - **Short-term Borrowings**: Period-end balance of **509 million Yuan**, a **106.39% increase** from the beginning of the year, mainly due to increased bank loans[19](index=19&type=chunk)[23](index=23&type=chunk) - **Notes Payable**: Period-end balance of **864 million Yuan**, a **108.22% increase** from the beginning of the year, primarily due to increased payables to suppliers for goods[19](index=19&type=chunk)[23](index=23&type=chunk) [Significant Changes in Income Statement and Cash Flow Statement Items](index=7&type=section&id=%E5%88%A9%E6%B6%A6%E4%B8%8E%E7%8E%B0%E9%87%91%E6%B5%81%E8%A1%A8%E9%A1%B9%E7%9B%AE) In Q1-Q3 2020, rapid growth in online merchandise trading drove operating revenue up **142.00%** and operating costs up **149.38%**, while R&D expenses increased **57.72%** due to higher investment, and net operating cash flow surged **2,849.02%** from strong sales collection, indicating sustained business profitability - **Operating Revenue**: Q1-Q3 revenue reached **10.032 billion Yuan**, a **142.00% year-over-year increase**, primarily driven by the growth of the company's online merchandise trading business and rapid increases in registered users and order volumes across its Duoduo e-commerce platforms[23](index=23&type=chunk)[25](index=25&type=chunk) - **Operating Costs**: Q1-Q3 costs were **9.604 billion Yuan**, a **149.38% year-over-year increase**, in line with the increased procurement volume for online merchandise trading[23](index=23&type=chunk)[25](index=25&type=chunk) - **Research and Development Expenses**: Q1-Q3 expenditure was **21.89 million Yuan**, a **57.72% year-over-year increase**, mainly due to increased R&D investment by the company[23](index=23&type=chunk)[25](index=25&type=chunk) - **Net Cash Flow from Operating Activities**: Q1-Q3 net inflow was **370 million Yuan**, a **2,849.02% year-over-year increase**, primarily due to strong cash collection from sales and continuous enhancement of business profitability[23](index=23&type=chunk)[25](index=25&type=chunk) [Financial Statement Appendix](index=9&type=section&id=%E5%9B%9B%E3%80%81%20%E9%99%84%E5%BD%95) [Summary of Consolidated Financial Statements](index=9&type=section&id=4.1%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents core data from the company's Q3 2020 consolidated balance sheet, income statement, and cash flow statement, demonstrating significant growth in asset size, revenue, profit, and cash flow [Consolidated Balance Sheet](index=9&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of September 30, 2020, total assets reached **3.595 billion Yuan**, up **61.33%** from year-start, while total liabilities were **2.259 billion Yuan**, up **106.66%** due to increased short-term borrowings and payables from business expansion, and equity attributable to parent company shareholders grew **15.00%** to **1.241 billion Yuan** | Item | September 30, 2020 (Yuan) | December 31, 2019 (Yuan) | | :--- | :--- | :--- | | **Total Assets** | **3,595,493,131.90** | **2,228,615,525.51** | | Total Current Assets | 3,454,388,133.30 | 2,184,291,242.09 | | Total Non-current Assets | 141,104,998.60 | 44,324,283.42 | | **Total Liabilities** | **2,258,682,214.74** | **1,092,961,165.75** | | Total Current Liabilities | 2,258,043,006.45 | 1,091,930,175.75 | | **Total Owners' Equity** | **1,336,810,917.16** | **1,135,654,359.76** | | Total Owners' Equity Attributable to Parent Company | 1,241,343,332.74 | 1,079,467,552.49 | [Consolidated Income Statement](index=13&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In Q1-Q3 2020, total operating revenue reached **10.032 billion Yuan**, up **142.00%**, with total operating costs at **9.785 billion Yuan**, up **147.54%**, resulting in a net profit attributable to parent company shareholders of **179 million Yuan**, an **81.28% increase** from **99 million Yuan** in the prior year, indicating sustained profitability | Item | Q1-Q3 2020 (Yuan) | Q1-Q3 2019 (Yuan) | | :--- | :--- | :--- | | **I. Total Operating Revenue** | **10,031,775,508.52** | **4,145,336,906.33** | | **II. Total Operating Costs** | **9,785,374,041.16** | **3,993,487,937.41** | | Including: Operating Costs | 9,604,125,577.95 | 3,851,259,646.38 | | **III. Operating Profit** | **256,188,620.78** | **149,335,836.56** | | **IV. Total Profit** | **278,114,764.75** | **153,130,916.54** | | **V. Net Profit** | **211,090,282.25** | **117,176,979.94** | | Net Profit Attributable to Parent Company Shareholders | 178,792,006.12 | 98,626,865.97 | [Consolidated Cash Flow Statement](index=19&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In Q1-Q3 2020, net cash flow from operating activities was **370 million Yuan**, a **2,849% year-over-year increase** driven by significantly higher cash receipts from sales, while net cash outflow from investing activities was **579 million Yuan** for fixed asset purchases and time deposits, and net cash inflow from financing activities was **241 million Yuan** primarily from bank borrowings | Item | Q1-Q3 2020 (Yuan) | Q1-Q3 2019 (Yuan) | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | **369,893,607.47** | **12,542,939.33** | | **Net Cash Flow from Investing Activities** | **-579,332,901.53** | **-538,272.45** | | **Net Cash Flow from Financing Activities** | **240,644,952.18** | **499,023,336.78** | | **Net Increase in Cash and Cash Equivalents** | 31,175,630.77 | 511,052,574.16 | [Explanation of Accounting Standard Changes](index=22&type=section&id=4.2%202020%20%E5%B9%B4%E8%B5%B7%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E6%96%B0%E6%94%B6%E5%85%A5%E5%87%86%E5%88%99%E8%B0%83%E6%95%B4%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E5%BD%93%E5%B9%B4%E5%B9%B4%E5%88%9D%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9B%B8%E5%85%B3%E9%A1%B9%E7%9B%AE%E6%83%85%E5%86%B5) Effective January 1, 2020, the company adopted the revised Accounting Standard No. 14—Revenue, primarily reclassifying contract-related portions of 'Advances from Customers' to 'Contract Liabilities' and 'Other Current Liabilities', with no significant impact on financial position, operating results, or cash flows - The company adopted the new revenue standard effective January 1, 2020, adjusting financial statement items at the beginning of the year based on cumulative impact[74](index=74&type=chunk)[82](index=82&type=chunk) - The main adjustment reclassified **252 million Yuan** originally in 'Advances from Customers' to 'Contract Liabilities' (**222 million Yuan**) and adjusted 'Taxes Payable' and other accounts under the new standard[70](index=70&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2020 reached ¥5,807,683,167.28, representing a 133.03% increase compared to ¥2,492,248,748.29 in the same period last year[31]. - The net profit attributable to shareholders for the same period was ¥113,737,181.76, a 74.96% increase from ¥65,007,520.52 year-on-year[31]. - The net cash flow from operating activities significantly increased to ¥450,087,889.81, up 2,140.62% from ¥20,087,647.96 in the previous year[31]. - The total assets of the company at the end of the reporting period were ¥3,229,580,705.39, a 44.91% increase from ¥2,228,615,525.51 at the end of the previous year[31]. - The net assets attributable to shareholders increased by 9.04% to ¥1,177,011,009.25 from ¥1,079,467,552.49 at the end of the previous year[31]. - Basic earnings per share for the first half of 2020 were ¥0.56, a decrease of 9.68% compared to ¥0.62 in the same period last year[34]. - The weighted average return on net assets was 10.01%, down 3.84 percentage points from 13.85% in the previous year[34]. - The company reported non-recurring gains of ¥10,025,570.47 during the reporting period[35]. Governance and Compliance - The board of directors confirmed that the financial report is true, accurate, and complete, with no significant omissions or misleading statements[6]. - All board members attended the board meeting, indicating strong governance and oversight[7]. - The company is focused on maintaining financial integrity and accountability through its management team[8]. - There are no violations of decision-making procedures regarding external guarantees[11]. - The half-year report has not been audited, ensuring transparency in financial reporting[8]. - The report outlines the company's commitment to accurate financial reporting and legal responsibility by its management[6]. - The company has not engaged in non-operating fund occupation by controlling shareholders or related parties[11]. - The report includes a risk statement indicating that future plans and strategies do not constitute a commitment to investors, highlighting potential investment risks[10]. - The company emphasizes the importance of detailed risk disclosures in the operational discussion section of the report[11]. Business Operations and Strategy - The company continues to focus on digital technology services and solutions, including cloud ERP and smart factory applications[30]. - The company operates a B2B e-commerce and industrial internet platform, focusing on online transactions and digital services for industrial products and raw materials[39]. - The company has developed multiple vertical e-commerce platforms, including 涂多多, 卫多多, 玻多多, 纸多多, 肥多多, and 粮油多多, targeting specific industries such as coatings, hygiene products, and agriculture[39]. - The company provides cloud ERP, electronic contracts, online payment, and smart logistics services to enhance supply chain management[47]. - The company aims to leverage new technologies such as 5G, big data, and artificial intelligence to drive the evolution towards industrial internet over the next two decades[52]. - The company is actively working on creating an industrial internet application platform based on interconnected vertical industry chains[51]. - The company’s platforms are designed to integrate information flow, order flow, logistics, and capital flow, enhancing overall supply chain efficiency[47]. - The rapid growth in operating revenue was primarily driven by the expansion of online commodity trading business[71]. Shareholder and Capital Structure - The company reported no profit distribution or capital reserve transfer to increase share capital for the first half of 2020[9]. - The total number of shares increased from 140,815,000 to 204,181,750 after issuing new shares[149]. - The company distributed a cash dividend of 1.15 CNY per 10 shares, totaling 16,193,725 CNY[152]. - The capital reserve was converted to increase share capital by 4.5 shares for every 10 shares held, resulting in an increase of 63,366,750 shares[152]. - The report indicates that there were no changes in restricted shares affecting financial metrics such as earnings per share or net asset value[152]. - The report includes details on restricted shares held by major shareholders, with significant increases noted for several individuals and entities[154]. - The company has committed to a 36-month lock-up period for shares held by major shareholders and actual controllers, starting from the date of the stock listing[105]. - Major shareholders and actual controllers have also committed to a 12-month lock-up period for their shares, effective from the date of the stock listing[107]. - The company has a commitment that if the stock price falls below the IPO price for 20 consecutive trading days within the first 6 months, the lock-up period will automatically extend by 6 months[108]. - The company has specified that any share reduction after the lock-up period must not be below the latest audited net asset value per share[111]. Risk Factors - The company is facing risks related to the macroeconomic cycle, particularly affecting small and medium-sized enterprises that are the majority of its registered members[86]. - The company is exposed to policy risks in the internet industry, which could adversely affect its business operations if regulations change[86]. - The company acknowledges the risk of internet system failures that could disrupt its services and impact its market image[89]. - The company has implemented a strategy of prepayment to suppliers to ensure the supply of goods amid increasing transaction volumes on its platform[96]. - The company is upgrading its business model to enhance core competitiveness, but this process carries risks from intensified market competition and innovation challenges[91]. Community and Social Responsibility - The company has invested a total of RMB 570.84 million in poverty alleviation projects, helping 419 registered impoverished individuals to escape poverty[139]. - The company has conducted vocational skills training for 3,726 individuals, with an investment of RMB 190 million, resulting in 203 individuals achieving employment[139]. - The company has upgraded its flagship store in Ganzi to a regional specialty sales center, promoting local products through a combination of store, community activities, and markets[145]. - The company has initiated projects like "Pepper Duo Duo" and "Mushroom Duo Duo" to enhance the sales of agricultural products from impoverished villages[145]. - The company donated a total of 50 tons of disinfectant to 18 organizations during the pandemic[144]. - The company has screened over 300 high-quality agricultural products for offline stores, focusing on local specialties and cultural products[136]. Legal and Regulatory Matters - The company has no major litigation or arbitration matters during the reporting period, indicating a stable legal environment[129]. - The company has confirmed that there are no significant debts due that have not been settled by the company or its controlling shareholders during the reporting period[129]. - The company has not disclosed any stock incentive plans or employee stock ownership plans during the reporting period, indicating no changes in employee incentives[130]. - There are no related party transactions that have been disclosed in temporary announcements or have subsequent developments during the reporting period[132].

Financial Performance - Operating revenue reached CNY 2,381,317,871.41, representing a 127.37% increase year-on-year[11] - Net profit attributable to shareholders was CNY 40,725,617.18, an increase of 85.99% compared to the same period last year[11] - The company’s net profit after deducting non-recurring gains and losses was CNY 35,243,008.72, reflecting a 66.81% increase year-on-year[11] - Net profit for Q1 2020 was ¥53,178,869.52, compared to a net loss of ¥1,000,000.00 in Q1 2019, indicating a turnaround in profitability[44] - The company's net profit for Q1 2020 was CNY 47,099,008.90, a 82.5% increase compared to CNY 25,806,328.88 in Q1 2019[50] - The total comprehensive income for Q1 2020 was CNY 47,099,008.90, compared to CNY 25,806,328.88 in the same period last year[54] - The company’s total profit for Q1 2020 was CNY 60,532,747.76, a substantial increase from CNY 32,876,301.16 in Q1 2019[48] Cash Flow - Net cash flow from operating activities improved significantly to CNY 39,593,356.43, a 128.44% increase from a negative cash flow of CNY -139,220,750.74 in the previous year[11] - Net cash flow from operating activities increased by CNY 178,814,100, a growth of 128.44% year-on-year, reflecting improved sales collection and sustained profitability[26] - The company reported a significant increase in cash flow from operating activities, totaling CNY 2,663,659,086.95, compared to CNY 889,875,466.62 in Q1 2019[57] - The net cash flow from operating activities was -27,180,212.11 RMB, compared to -5,065,967.24 RMB in the same period last year, indicating a significant decline[64] - Cash inflow from investment activities totaled 332,558,091.77 RMB, a substantial increase from 133,848,383.57 RMB year-over-year[64] - The net cash flow from investment activities was -80,032,446.40 RMB, worsening from -31,406,357.40 RMB in the previous year[64] - Cash inflow from financing activities reached 210,000,000.00 RMB, up from 100,000,000.00 RMB in the same quarter last year[65] - The net cash flow from financing activities improved to 116,845,640.29 RMB, compared to 7,677,539.58 RMB in the previous year[65] Assets and Liabilities - Total assets increased by 32.39% to CNY 2,950,456,104.87 compared to the end of the previous year[11] - Total liabilities as of March 31, 2020, were ¥402,562,643.55, compared to ¥294,120,478.90 at the end of 2019, marking a rise of 36.9%[40] - Shareholders' equity totaled ¥764,924,318.22 as of March 31, 2020, up from ¥761,801,268.13 at the end of 2019, showing a slight increase of 0.3%[43] - Cash and cash equivalents increased to ¥305,354,405.60 from ¥295,721,423.82, reflecting a growth of 3.4%[39] Shareholder Information - The total number of shareholders at the end of the reporting period was 8,690[17] - The top two shareholders, Liu Quan and Qian Xiaojun, hold 19.70% and 19.91% of the shares, respectively[17] Operating Costs and Revenue - Operating costs increased by CNY 1,318,581,300, a growth of 135.70% year-on-year, mainly due to the increased procurement costs associated with the online trading business[24] - Total operating costs for Q1 2020 were ¥2,328,139,001.89, up from ¥1,013,926,534.62 in Q1 2019, reflecting a year-over-year increase of 129.0%[44] - Operating income increased by CNY 1,334,003,200, a growth of 127.37% year-on-year, primarily due to the growth in online commodity trading business[24] Research and Development - Research and development expenses for Q1 2020 were ¥3,338,617.91, down from ¥4,612,171.27 in Q1 2019, indicating a decrease of 27.7%[44] - Research and development expenses decreased to CNY 520,741.93 from CNY 1,801,905.08 in Q1 2019, indicating a potential shift in investment strategy[51] Other Financial Metrics - Basic earnings per share rose by 38.10% to CNY 0.29 compared to CNY 0.21 in the same period last year[11] - The weighted average return on equity decreased by 1.19 percentage points to 3.70%[11] - Tax expenses increased by CNY 6,363,800, a growth of 90.01%, primarily due to increased profits during the reporting period[25] - Other operating income increased by CNY 6,510,400, a growth of 506.25%, mainly due to increased government subsidies received during the reporting period[24] - Financial expenses increased by CNY 929,800, a growth of 36.28%, mainly due to increased interest expenses from short-term borrowings[24] - The company incurred a credit impairment loss of CNY -142,075.64 in Q1 2020, reflecting a cautious approach to credit risk management[48] - The company reported a significant increase in interest income, reaching CNY 9,296,558.12, compared to CNY 4,918,898.84 in Q1 2019[51] Future Outlook - The company plans to expand its market presence and invest in new technologies to drive future growth[44]

Financial Performance - The company's operating revenue for 2019 was CNY 7,197,680,121.94, representing a 95.93% increase compared to CNY 3,673,604,796.57 in 2018[31]. - The net profit attributable to shareholders for 2019 was CNY 158,942,121.75, a 69.34% increase from CNY 93,861,384.01 in 2018[31]. - The net cash flow from operating activities for 2019 was CNY 379,722,775.31, showing a significant increase of 391.20% compared to CNY 77,304,673.90 in 2018[31]. - The total assets at the end of 2019 were CNY 2,228,615,525.51, which is a 165.23% increase from CNY 840,258,286.01 at the end of 2018[31]. - The basic earnings per share for 2019 was CNY 1.32, up 48.31% from CNY 0.89 in 2018[34]. - The weighted average return on net assets for 2019 was 22.21%, a decrease of 1.87 percentage points from 24.08% in 2018[34]. - The company reported a quarterly revenue of CNY 3,052,343,215.61 in Q4 2019, contributing to a total annual revenue of CNY 7,197,680,121.94[39]. - The net profit attributable to shareholders in Q4 2019 was CNY 60,315,255.78, marking a strong performance in the last quarter[39]. Shareholder Returns - The profit distribution plan for 2019 includes a cash dividend of 1.15 RMB per 10 shares, totaling 16,193,725 RMB (including tax) to be distributed to shareholders[10]. - The company did not distribute cash dividends in 2019, retaining profits for business expansion and reducing financial costs, with a net profit of ¥158,942,121.75[148]. - The cash dividend payout ratio for 2019 was 10.19%, reflecting the company's strategy to reinvest in growth rather than distribute profits[148]. - The company has established a cash dividend policy to ensure stable returns to shareholders, aligning with regulatory requirements and enhancing shareholder confidence[145]. Audit and Compliance - The company received a standard unqualified audit report from Lixin Certified Public Accountants[9]. - The board of directors and supervisory board members confirmed the accuracy and completeness of the annual report[7]. - All board members attended the board meeting for the annual report approval[8]. - The company is committed to ensuring the financial report's authenticity and completeness, as stated by the responsible executives[9]. - The company has maintained a good integrity status during the reporting period, with no major breaches of trust or significant legal issues reported[167]. Business Operations and Strategy - The company operates a B2B e-commerce and industrial internet platform, focusing on online transactions and commercial information services for various industries[41]. - The company aims to integrate B2B vertical e-commerce platforms with smart supply chain management, enhancing efficiency across various operational flows[46]. - The company has established a strong foundation in supply chain services by providing free cloud ERP and logistics systems through its platform[49]. - The company’s main business segments include self-operated e-commerce, third-party e-commerce, and SaaS services, catering to industries such as chemicals, glass, and agriculture[44]. - The company is focused on expanding its market presence in vertical e-commerce, particularly in traditional industries like steel, chemicals, and logistics[45]. Market and Industry Trends - The B2B e-commerce market in China has grown from 6.25 trillion RMB in 2012 to 22.50 trillion RMB in 2018, with a compound annual growth rate of 23.80%[45]. - The company is positioned to benefit from the upcoming boom in the industrial internet, driven by advancements in technologies such as 5G, big data, and artificial intelligence[51]. - The company operates in a competitive B2B e-commerce market, with Alibaba as the leading player, while maintaining a strong position in various sectors including domestic trade services and chemical industries[104]. Risk Management - The company has outlined potential risks in the "Discussion and Analysis of Operating Conditions" section of the report[12]. - The company emphasizes the importance of investment risk awareness regarding forward-looking statements in the report[11]. - The company faces risks related to the economic environment affecting small and medium enterprises, which are crucial for its B2B platform's growth[132]. - The company has a high level of prepaid accounts, amounting to 552.73 million yuan, which constitutes 25.30% of its current assets, posing a risk if the economic environment worsens[142]. Community and Social Responsibility - The company reported a total investment of 338.59 million RMB in poverty alleviation efforts, helping 11,217 registered impoverished individuals to escape poverty[177]. - The company has invested 2,927.14 million RMB in seven different poverty alleviation projects, focusing on e-commerce initiatives[178]. - The company provided vocational skills training to 31,293 individuals, resulting in 10,604 registered impoverished individuals achieving employment[181]. - The company is exploring various "e-commerce +" models to increase sales of local agricultural products and improve the livelihoods of impoverished populations[185]. Future Outlook and Development - The company aims to enhance its B2B e-commerce and industrial internet strategies, targeting significant growth in revenue and profit over the next two years[120]. - The company plans to strengthen its SaaS service capabilities, including cloud ERP and smart logistics, to boost technology and data-driven capabilities on its platforms[122]. - The company is committed to expanding its national marketing service network to improve regional sales capabilities and customer service efficiency[115]. - The future strategy includes building a new generation of R&D systems to enhance technical capabilities and support overall strategic goals[118].

Financial Performance - Operating income for the first nine months was ¥4,145,336,906.33, up 77.18% from ¥2,339,597,399.57 in the same period last year[20] - Net profit attributable to shareholders of the listed company was ¥98,626,865.97, a 61.06% increase compared to ¥61,236,452.61 in the previous year[20] - Basic earnings per share increased by 50% to ¥0.87 from ¥0.58 year-on-year[20] - The weighted average return on equity rose to 20.29%, an increase of 3.90 percentage points compared to 16.39% in the previous year[20] - The company reported a significant improvement in net profit margins, indicating enhanced operational efficiency and profitability[20] - Total operating revenue for Q3 2019 reached ¥1,653,088,158.04, a significant increase from ¥880,143,178.32 in Q3 2018, representing an increase of approximately 87.7%[82] - Net profit for Q3 2019 was ¥40,372,508.63, up from ¥23,505,362.50 in Q3 2018, indicating a growth of approximately 71.5%[85] - The company reported a total profit of ¥53,654,479.40 for Q3 2019, compared to ¥31,669,123.12 in Q3 2018, an increase of approximately 69.2%[85] - Total comprehensive income attributable to the parent company was ¥33,751,432.44, up from ¥19,697,616.43 in the same quarter last year, reflecting an increase of about 71.5%[88] Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,713,193,770.01, an increase of 103.89% compared to the end of the previous year[20] - Total liabilities were RMB 644,436,531.61, up from RMB 376,637,919.20, which is an increase of approximately 71.0%[56] - Current assets totaled RMB 1,681,175,310.80, up from RMB 804,060,828.17 in the previous year, indicating an increase of about 109.6%[40] - The total current liabilities increased to RMB 644,436,531.61 from RMB 375,939,959.20, which is an increase of approximately 71.2%[40] - The company’s total liabilities and equity combined amount to ¥840,258,286.01, reflecting a balanced financial position[119] Cash Flow - Net cash flow from operating activities for the year-to-date was ¥12,542,939.33, a significant turnaround from a negative cash flow of ¥178,306,228.03 in the same period last year, marking a 107.03% improvement[20] - The total cash flow from operating activities increased by approximately 92% year-over-year, indicating strong operational performance[100] - Cash inflow from operating activities for the first three quarters was CNY 3,473,406,999.86, significantly higher than CNY 1,810,742,538.70 in the same period of 2018[100] - The net cash flow from operating activities was 12,542,939.33, a significant improvement from -178,306,228.03 in the previous period[103] - Cash inflow from financing activities reached 800,784,755.44, up from 233,724,847.00 in the previous period[103] Shareholder Information - Net assets attributable to shareholders of the listed company amounted to ¥1,023,271,512.47, reflecting a growth of 134.27% year-on-year[20] - The total number of shareholders at the end of the reporting period is 14,087[25] - The largest shareholder, Qian Xiaojun, holds 28,032,500 shares, accounting for 19.91% of the total shares[25] - Shareholders' equity reached RMB 1,068,757,238.40, compared to RMB 463,620,366.81 in the previous year, representing a growth of about 130.5%[71] Research and Development - Research and development expenses rose by 101.68% to RMB 13,878,508.07, reflecting the company's increased investment in R&D[30] - Research and development expenses for Q3 2019 were ¥4,393,230.02, significantly higher than ¥1,826,369.44 in Q3 2018, representing an increase of about 140.5%[82] Market Strategy - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[20]

Financial Performance - The company's operating revenue for the first half of the year reached ¥2,492,248,748.29, representing a 70.77% increase compared to the same period last year [24]. - Net profit attributable to shareholders was ¥65,007,520.52, up 56.50% year-over-year [24]. - The net cash flow from operating activities improved significantly to ¥20,087,647.96, a 226.39% increase from the previous year [24]. - Basic earnings per share increased to ¥0.62, reflecting a growth of 58.97% compared to the same period last year [25]. - The weighted average return on equity rose to 13.85%, an increase of 2.43 percentage points year-over-year [25]. - The company's net assets attributable to shareholders grew to ¥501,806,275.38, marking a 14.88% increase from the end of the previous year [24]. - The company's total assets reached CNY 983.74 million, a year-on-year increase of 17.08% [63]. - Net profit for the period was CNY 76.80 million, representing a year-on-year growth of 63.07% [63]. - Operating revenue amounted to CNY 2,492.25 million, up 70.77% compared to the previous year [68]. - Operating costs increased to CNY 2,301.02 million, reflecting a growth of 73.66% due to the rapid expansion of online product trading [68]. Company Operations - The company operates as a B2B e-commerce platform, focusing on industrial internet services [2]. - The company operates a B2B e-commerce platform, focusing on industrial products and raw materials, with various service offerings including SaaS and industry information services [33]. - The company has established multiple vertical e-commerce platforms, including Tuiduoduo for the coating industry, Weiduoduo for sanitary products, and Glassduoduo for the glass industry, each with core advantages in their respective supply chains [38]. - The company has integrated supply chain management services, offering free cloud ERP, logistics sharing systems, and electronic contracts through its platform, enhancing its service capabilities [42]. - The company is focusing on the rapid evolution towards industrial internet, leveraging new technologies such as big data, cloud computing, and artificial intelligence to drive growth in the next two decades [43]. - The company has a strong management team with over 10 years of industry experience, which has contributed to its ability to adapt to market changes and drive performance growth [50]. - The company has developed a unique organizational structure that allows for deep industry specialization while maintaining a unified technical and resource support system [51]. Financial Stability and Risks - There are no non-operational fund occupations by controlling shareholders or related parties, indicating financial stability [8]. - The company guarantees the accuracy and completeness of the financial report, with key personnel affirming its integrity [4]. - The company has outlined potential risks in the "Discussion and Analysis of Operating Conditions" section of the report, emphasizing the importance of investor awareness [8]. - The company faces risks related to macroeconomic cycles, policy changes, and internet system stability that could impact its operations and performance [81][82]. - The company is facing risks from rapid technological advancements in the internet industry, which may affect its competitive position if not addressed [88]. - The company is upgrading its business model to enhance core competitiveness, which may introduce uncertainties due to market competition and innovation challenges [86]. Shareholder Information - The total number of shares increased by 35,210,000, bringing the total share capital to 140,815,000 shares, with basic earnings per share at 0.46 CNY and diluted earnings per share at 0.45 CNY [121]. - The total number of ordinary shareholders at the end of the reporting period was 77, with no preferred shareholders [122]. - The top shareholder, Qian Xiaojun, holds 28,032,500 shares, representing 26.54% of the total shares [122]. Investment and Development Initiatives - The company reported a total funding of RMB 3,287.84 million for poverty alleviation initiatives [110]. - A total of 11,217 individuals were lifted out of poverty through the company's efforts during the reporting period [110]. - The company invested RMB 2,907.14 million in industry development projects aimed at poverty alleviation, with 7 projects initiated [110]. - The company provided vocational skills training to 31,183 individuals, resulting in 10,604 individuals achieving employment [110]. - The company is focused on enhancing the functionality of e-commerce service centers and expanding logistics distribution points [114]. - The company plans to continue promoting local agricultural products through various e-commerce models to further assist impoverished communities [114]. - The company has established county-level e-commerce public service centers and village-level e-commerce service points to support local economies [113]. Compliance and Governance - The financial report for the first half of 2019 has not been audited, ensuring transparency in financial disclosures [5]. - The company has not reported any changes in its information disclosure practices during the reporting period [21]. - The company has no significant litigation or arbitration matters during the reporting period [103]. - The company has not reported any environmental violations or penalties during the reporting period [117]. - The company has adhered to the revised accounting standards effective from January 1, 2019, without needing to adjust prior financial statements [119]. - The company did not report any changes in accounting policies or prior period error corrections during the current period [177].