公司代码：603636 公司简称：南威软件 南威软件股份有限公司 2018 年第三季度报告 二○一八年十月十三日 | 一、 | 重要提示 2 | | --- | --- | | 二、 | 公司基本情况 2 | | 三、 | 重要事项 4 | | 四、 | 附录 10 | 南威软件股份有限公司 2018 年第三季度报告 一、 重要提示 二、 公司基本情况 2.1 主要财务数据 | | | | | 单位：元 币种：人民币 | | | | --- | --- | --- | --- | --- | --- | --- | | | 本报告期末 | | 上年度末 | 本报告期末比上年 | | | | | | | | 度末增减(%) | | | | 总资产 | 2,598,665,564.16 | | 1,964,497,552.64 | 32.28 | | | | 归属于上市公司股东的 | 1,680,931,346.95 | | 1,009,082,447.13 | 66.58 | | | | 净资产 | | | | | | | | | 年初至报告期末 | | 上年初至上年报告期末 | 比上年同期增减(%) | | ...

Financial Performance - The company's operating revenue for the first half of 2018 was ¥275,994,268.79, representing a year-on-year increase of 39.58% compared to ¥197,732,812.94 in the same period last year[19]. - The net profit attributable to shareholders of the listed company reached ¥23,979,888.33, a significant increase of 177.44% from ¥8,643,141.21 in the previous year[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥10,505,038.90, up 249.67% from ¥3,004,288.72 in the same period last year[19]. - The company's total assets increased by 20.19% to ¥2,361,106,764.74 from ¥1,964,497,552.64 at the end of the previous year[19]. - The net assets attributable to shareholders of the listed company rose by 56.79% to ¥1,582,179,200.94 from ¥1,009,082,447.13 at the end of the previous year[19]. - The basic earnings per share increased to ¥0.051, a rise of 920% compared to ¥0.005 in the same period last year[20]. - The cash flow from operating activities showed a significant decline, with a net outflow of ¥369,899,524.90 compared to a net inflow of ¥34,704,282.06 in the previous year, a decrease of 1165.86%[19]. Strategic Focus and Development - The company aims to become a world-class technology group with core technologies, focusing on smart city ecosystem construction and internet-based government services[27]. - The company is focusing on industry regional strategies and market layout planning to drive the development of traditional and emerging businesses[19]. - The company has strengthened its internal management reforms, effectively controlling various expenses, contributing to improved operational efficiency[21]. - The increase in earnings per share and return on equity is attributed to enhanced operational performance[21]. - The company is actively involved in the internet and mobile internet sectors, developing platforms like "万创帮" and "城市通" to enhance urban service ecosystems[34]. Research and Innovation - The company has undertaken over 50 national research projects and has been awarded more than 30 national and provincial science and technology progress awards[43]. - The company has developed over 500 proprietary software products and holds 20 invention patents, showcasing its strong R&D capabilities[43]. - The company is advancing its big data capabilities, aiming to create a full industry chain and product series, enhancing data value extraction[32]. - The company is expanding its IoT services, focusing on community-based solutions and addressing urban management challenges through various technology initiatives[33]. Market Opportunities and Challenges - The national policy framework for smart cities is becoming more systematic, providing significant opportunities for the company's growth in this sector[35]. - The market for "Snow Bright Project" is expected to reach approximately 200 billion RMB over the next three years, driven by the push for comprehensive public safety video surveillance coverage[38]. - The big data industry achieved a value of 470 billion RMB in 2017, with a year-on-year growth of 30%[42]. - By 2025, the global number of IoT connections is projected to reach 27 billion, contributing 11.1 trillion RMB to the global economy, which will account for 11% of global GDP[41]. - The company anticipates significant risks related to rapid technological updates, which could impact product competitiveness if not addressed timely[85]. - The software and information technology service industry is experiencing intense competition, which may increase market risks for the company if it fails to maintain its technological and operational advantages[86]. Financial Management and Investments - The company raised 661 million yuan through a public offering in March 2018, which will support the development of its big data and smart city initiatives[58]. - The company has invested a total of ¥918,801,399.75 in financial products, with a remaining balance of ¥225,600,000.00 yet to mature[72]. - The company has a total of 19,999,999.80 invested in bank wealth management with a guaranteed return of 6.63%, resulting in earnings of 46,118.20[74]. - The company has a total of 60,000,000.00 invested in a money market fund with a return of 3.16%[76]. - The company reported a total investment of 50,000,000.00 in fixed income products with a guaranteed return of 5.00%[75]. Governance and Compliance - The company appointed Fujian Huaxing Accounting Firm as the auditor for the 2018 financial report and internal control audit[99]. - The company has implemented a stock incentive plan approved in 2016, with relevant details disclosed in the Shanghai Stock Exchange[100]. - The company has a commitment to protect the rights of shareholders and ensure compliance with regulatory requirements[97]. - The company has made commitments to maintain transparency and timely disclosure of information related to shareholding changes[97]. Subsidiaries and Market Presence - The company operates 47 subsidiaries, including various technology and software companies across multiple regions in China[169]. - The company has established itself as a leader in the internet-based government service sector, with innovations recognized as national benchmarks, including the "One Window" service model[29]. - The company has developed a comprehensive public safety solution in the "Safe City" sector, integrating big data for traffic and community safety[30]. - The company is focusing on market expansion through acquisitions, with several subsidiaries reporting revenues above 100 million[81]. Shareholder and Equity Information - The total number of ordinary shareholders reached 35,915 by the end of the reporting period[122]. - The total number of shares increased from 407,097,800 to 527,256,952 after a rights issue, with 120,159,152 new shares issued[119]. - The company reported a significant increase in shareholding among directors and executives due to participation in the share distribution program[132]. - The company has not undergone any changes in controlling shareholders or actual controllers during the reporting period[127].

Financial Performance - Net profit attributable to shareholders of the listed company reached CNY 1,241,483.91, a significant increase of 108.69% year-on-year[7]. - Basic earnings per share increased by 108.55% to CNY 0.0030 compared to the same period last year[7]. - The company reported a net cash flow from operating activities of -CNY 164,342,073.54, a decrease of 183.83% year-on-year[7]. - Operating revenue decreased by 9.65% to CNY 54,452,188.32 compared to the same period last year[7]. - The company reported a decrease in accounts payable to CNY 295,060,208.97 from CNY 333,507,667.28 year-over-year[26]. - The company reported an operating loss of CNY 993,990.74 for Q1 2018, compared to an operating loss of CNY 11,949,671.74 in the previous year[31]. - Total profit for Q1 2018 was CNY -30,258.51, an improvement from CNY -11,260,187.78 in Q1 2017[32]. - The company incurred management expenses of CNY 13,652,593.92, an increase from CNY 12,479,766.03 in the same period last year[31]. Assets and Liabilities - Total assets increased by 22.42% to CNY 2,404,876,146.83 compared to the end of the previous year[7]. - Total assets reached CNY 2,413,697,684.69, up from CNY 1,867,481,375.64 at the start of the year[26]. - Total liabilities amounted to CNY 739,887,164.43, a decrease from CNY 837,723,850.45 at the beginning of the year[27]. - Shareholders' equity increased to CNY 1,673,810,520.26 from CNY 1,029,757,525.19 at the start of the year[27]. - Non-current assets totaled CNY 880,083,910.38, an increase from CNY 863,691,093.42 at the beginning of the year[26]. Cash Flow and Investments - Cash from investment received surged to ¥653,184,394.30 from ¥800,000.00, reflecting an increase of 81,548.05% due to funds raised from a rights issue[17]. - Total cash inflow from investment activities was 321,211,406.53 RMB, up from 226,318,265.94 RMB in the previous period, reflecting an increase in cash recovered from investments[39]. - The net cash flow from investment activities was 60,181,233.11 RMB, a recovery from -98,123,343.46 RMB in the previous period, showing improved investment performance[39]. - Cash inflow from financing activities totaled 653,114,394.30 RMB, compared to no inflow in the previous period, indicating successful capital raising efforts[39]. - The net cash flow from financing activities was 663,110,246.60 RMB, a significant improvement from -21,165,122.03 RMB in the previous period, highlighting effective financing strategies[39]. - The total cash and cash equivalents at the end of the period reached 760,794,725.94 RMB, compared to 70,581,048.90 RMB in the previous period, showing a substantial increase in liquidity[39]. Shareholder Information - The number of shareholders reached 34,899 at the end of the reporting period[11]. - The total share capital increased by 29.52% to 527,256,952 shares compared to the end of the previous year[7]. - The company's major shareholder, Wu Zhixiong, holds 56.70% of the shares, with 192,771,302 shares pledged[11]. Inventory and Costs - Inventory levels rose to ¥370,893,232.69, a 27.15% increase from ¥291,707,639.74, driven by increased investment in ongoing projects[15]. - Total operating costs for Q1 2018 were CNY 72,857,995.25, down 9.7% from CNY 80,686,866.29 year-over-year[28]. - Financial expenses increased to ¥1,548,183.06 from a negative amount of -¥544,383.82, reflecting a change of 384.39% due to interest expenses from investor contributions[15]. Other Income and Gains - Non-recurring gains and losses amounted to CNY 10,672,052.95 for the reporting period[12]. - Other income amounted to ¥4,200,528.10, attributed to government subsidies related to accounting policy changes[15]. - Cash received from tax refunds rose to ¥2,923,686.48 from ¥834,184.64, a 250.48% increase due to higher tax refund income[17]. - The company received tax refunds amounting to 3,098,374.89 RMB, compared to 834,184.64 RMB in the previous period, indicating improved tax recovery[38].

Financial Performance - The company's total revenue for 2017 was ¥807,313,135.82, representing a 72.48% increase compared to ¥468,074,426.65 in 2016[22]. - The net profit attributable to shareholders for 2017 was ¥103,025,506.96, which is a 100.15% increase from ¥51,474,724.91 in 2016[22]. - The net profit after deducting non-recurring gains and losses was ¥85,953,174.95, an increase of 88.56% compared to ¥45,583,618.75 in 2016[22]. - The cash flow from operating activities for 2017 was ¥138,408,077.65, a significant improvement from a negative cash flow of ¥57,182,000.10 in 2016, marking a 342.05% increase[22]. - The total assets at the end of 2017 were ¥1,964,497,552.64, a 49.67% increase from ¥1,312,559,308.80 at the end of 2016[22]. - The net assets attributable to shareholders increased by 14.24% to ¥1,009,082,447.13 at the end of 2017, compared to ¥883,290,784.19 at the end of 2016[22]. - The total share capital at the end of 2017 was 407,097,800 shares, a 300.26% increase from 101,707,880 shares at the end of 2016[22]. - Basic earnings per share rose to CNY 0.250, a 96.85% increase compared to CNY 0.127 in 2016[23]. - The weighted average return on equity increased to 11.01%, up 5.15 percentage points from 5.86% in 2016[23]. - The company achieved a revenue of 807.31 million RMB in 2017, representing a year-on-year growth of 72.48%[56]. - The net profit attributable to shareholders reached 103.03 million RMB, an increase of 100.15% compared to the previous year[56]. - Total assets increased by 49.67% to 1.96 billion RMB by the end of 2017[56]. Dividends and Shareholder Returns - The proposed cash dividend for 2017 is ¥2.00 per 10 shares, totaling ¥105,451,390.40 to be distributed to shareholders[4]. - In 2017, the company distributed a cash dividend of 2.0 RMB per 10 shares, totaling 105,451,390.40 RMB, which represents 102.35% of the net profit attributable to ordinary shareholders[131]. - In 2016, the cash dividend was 1.6 RMB per 10 shares, amounting to 16,273,260.80 RMB, accounting for 31.61% of the net profit attributable to ordinary shareholders[131]. - In 2015, the cash dividend was 1.9 RMB per 10 shares, totaling 19,000,000.00 RMB, which represented 30.09% of the net profit attributable to ordinary shareholders[131]. Market and Industry Insights - The market size for the security and "Snow Bright Project" in China reached approximately 42.4 billion RMB in 2017, reflecting a growth rate of 137% compared to 2016, with expectations for further growth in 2018[43]. - The Chinese big data market is projected to grow rapidly, with a market size reaching 25.86 billion RMB from 2015 to 2018, showing a year-on-year growth rate of 37.2%[44]. - The Ministry of Industry and Information Technology's "13th Five-Year Plan" for the IoT industry aims to enhance technological innovation and promote large-scale applications, indicating strong government support for the sector[45]. - The electronic government market in China is projected to exceed 3,400 billion by 2018, indicating a strong growth opportunity for the company[91]. - The electronic government market in China reached a scale of 272.2 billion yuan in 2017, with a year-on-year growth of 16%, and is expected to exceed 300 billion yuan in 2018[107]. - The compound annual growth rate (CAGR) of the public security information system market is projected to be around 24% from 2014 to 2018, with a market size of 94.4 billion yuan expected in 2018[111]. - The Internet of Things (IoT) industry in China grew from 170 billion yuan in 2009 to over 750 billion yuan in 2015, with a CAGR exceeding 25%[113]. Strategic Initiatives and Innovations - The company won a PPP project for a smart city construction with a total investment of CNY 453 million, marking a significant breakthrough in smart city business[35]. - The company is actively involved in building integrated data platforms for government services, enhancing the efficiency of public service delivery through big data applications[42]. - The company has launched several urban APPs to enhance citizen services, with platforms like "Dragonfly Parking" and "Red Dot Community" gaining significant attention, indicating a strategic move into the IoT and mobile internet sectors[38]. - The company is focusing on technological innovation and information construction to enhance its core competitiveness in a rapidly evolving market[96]. - The company is exploring new strategies to enhance operational efficiency and reduce costs[200]. - The company plans to focus on the integration of big data technology with electronic government, legal affairs, and transportation sectors to enhance its competitive edge[110]. Risks and Challenges - The company faces significant seasonal revenue fluctuations, with government budget management leading to higher income realization in the second half of the year[98]. - The company faces risks from rapid technological updates and market competition, necessitating increased R&D investment and adaptation to market trends[122][123]. - The company recognizes the need for high-end core talent to support its growth, highlighting the risk of insufficient talent supply[127]. - The company is expanding rapidly, which poses management risks related to organizational structure and internal controls[126]. Research and Development - Research and development expenses increased by 19.61% to 70.69 million RMB[67]. - Total R&D investment reached 70,687,652.26, which is 8.76% of operating revenue, a decrease of 3.87 percentage points year-on-year[81]. - The company has established research centers for big data and internet technologies, increasing R&D investment to enhance core competitiveness and innovate product offerings[119]. Corporate Governance and Compliance - The company appointed Fujian Huaxing Accounting Firm (Special General Partnership) for the 2017 financial report and internal control audit, with a remuneration of 800,000 RMB[140]. - The company has no major litigation or arbitration matters during the reporting period[141]. - The company has no significant related party transactions or changes in the reporting period[145]. - The company has no major contracts or leasing matters during the reporting period[146]. Shareholder Structure and Equity Changes - The total number of ordinary shares increased from 101,707,880 to 407,097,800 shares due to capital reserve conversion and stock incentive plans[169]. - The company completed a capital increase of 305,123,640 shares through capital reserve conversion, resulting in a diluted effect on earnings per share and net asset value[171]. - The largest shareholder, Wu Zhixiong, holds 230,017,000 shares, representing 56.50% of the total shares, with a pledge status of 137,521,302 shares[182]. - The total number of ordinary shareholders as of the end of the reporting period is 29,012, an increase from 28,181 at the end of the previous month[180]. - The company has no controlling shareholder or actual controller changes during the reporting period, ensuring stable governance[189][191]. Future Outlook - The company plans to expand its market presence by entering three new regions in the next fiscal year, aiming for a 25% increase in market share[136]. - The company aims to improve operational efficiency by 10% through process optimization and technology integration in the upcoming year[136]. - The financial guidance for the next quarter suggests continued growth, with expectations of a revenue increase of approximately 20%[200]. - Future outlook indicates a strong focus on new product development and technological advancements to enhance service offerings[199].

Financial Performance - Operating revenue for the first nine months rose by 30.12% to RMB 338,668,330.81 compared to the same period last year[5] - Net profit attributable to shareholders increased by 39.49% to RMB 33,279,038.82 for the first nine months[5] - Basic earnings per share rose by 33.33% to RMB 0.08[5] - Total operating revenue for Q3 2017 reached ¥140,935,517.87, a 52.9% increase from ¥92,160,358.36 in Q3 2016[36] - Operating profit for Q3 2017 was ¥17,234,163.41, compared to a loss of ¥2,762,597.26 in Q3 2016[36] - Net profit attributable to the parent company for Q3 2017 was ¥24,635,897.61, significantly up from ¥5,628,000.63 in Q3 2016[37] - Net profit for the first nine months of 2017 was ¥38,446,196.46, compared to ¥38,209,643.02 in the same period last year, reflecting a slight increase of 0.6%[40] - The company reported a total profit of ¥23,317,045.52 for Q3 2017, recovering from a loss of ¥29,105.39 in Q3 2016[36] Cash Flow and Investments - Cash flow from operating activities improved significantly, with a net amount of RMB 35,092,865.85, a 121.02% increase from the previous year[5] - Cash received from investment redemption increased by 297.42% to ¥1,199,571,331.05, reflecting higher cash inflows from financial product redemptions[18] - The company reported a total cash inflow from investment activities of ¥1,199,976,682.05, compared to ¥325,755,297.61 in the previous year, indicating a significant increase of 267.5%[42] - Operating cash inflow for the year-to-date period reached $499.9 million, a significant increase from $297.0 million in the same period last year, representing a growth of approximately 68.5%[45] - Net cash flow from operating activities improved to $140.8 million, compared to a negative cash flow of $136.6 million in the previous year, indicating a turnaround in operational efficiency[45] - Cash inflow from investment activities totaled $1.1 billion, a substantial rise from $300.0 million year-over-year, reflecting a growth of over 274%[46] - Net cash flow from investment activities was negative at $264.2 million, worsening from a negative $190.7 million in the previous year[46] Assets and Liabilities - Total assets increased by 19.26% year-on-year, reaching RMB 1,565,332,667.81[5] - The company's total liabilities were 636,232,549.80 RMB, compared to 408,550,018.59 RMB at the beginning of the year, reflecting an increase of about 55.7%[28] - The company's current assets totaled 1,146,713,245.01 RMB, up from 1,012,281,474.43 RMB at the start of the year, indicating an increase of about 13.3%[26] - Accounts receivable increased to 268,538,962.05 RMB from 208,143,006.12 RMB, representing a growth of approximately 28.9%[26] - Inventory rose to 348,625,361.71 RMB from 232,441,581.77 RMB, marking an increase of around 50%[26] - Total liabilities as of the end of Q3 2017 amounted to ¥647,913,031.62, compared to ¥380,532,711.48 at the end of Q3 2016[32] - Total equity reached ¥968,888,210.87 by the end of Q3 2017, up from ¥933,407,933.70 in the previous year[32] Shareholder Information - The total number of shareholders reached 35,000 by the end of the reporting period[10] - The largest shareholder, Wu Zhixiong, holds 56.54% of the shares, with 230,017,000 shares pledged[10] - The company’s equity attributable to shareholders reached 913,824,136.97 RMB, up from 883,290,784.19 RMB, showing a growth of approximately 3.7%[28] Expenses and Costs - Sales expenses increased by 60.78% to ¥26,519,891.49, mainly due to higher salaries and stock incentive costs for sales personnel[16] - Total operating costs for Q3 2017 were ¥128,125,645.10, an increase from ¥95,029,793.17 in Q3 2016[36] - The total operating costs for Q3 2017 were ¥90,436,387.73, which is a 29.7% increase from ¥69,692,807.90 in Q3 2016[39] - Sales expenses for the first nine months of 2017 were ¥10,973,406.74, an increase of 52.5% from ¥7,198,666.63 in the same period last year[39] Future Plans and Developments - The company has not disclosed any new product developments or market expansion strategies in this report[5] - The company plans to establish the Nanwei Scholarship Foundation with a total funding of no less than 10 million RMB over 10 years, contributing 1 million RMB annually[22] - The company plans to adjust its annual donations to the scholarship fund based on operational performance, with a maximum annual contribution of 200,000 RMB possible[22] - The company is actively exploring new strategies for market expansion and product development to enhance future growth prospects[46]

Financial Performance - The company's operating revenue for the first half of 2017 was ¥197,732,812.94, representing a year-on-year increase of 17.62% compared to ¥168,107,944.52 in the same period last year[19]. - The net profit attributable to shareholders of the listed company decreased by 52.59% to ¥8,643,141.21 from ¥18,229,118.61 in the previous year[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 86.13% to ¥3,004,288.72 from ¥21,657,876.44 in the same period last year[19]. - The net cash flow from operating activities increased by 125.15%, reaching ¥34,704,282.06, compared to a negative cash flow of ¥138,000,347.14 in the previous year[19]. - Basic earnings per share decreased by 88.89% to ¥0.005 from ¥0.045 in the same period last year[20]. - The weighted average return on net assets decreased by 1.16 percentage points to 0.96% from 2.12% in the previous year[20]. - The company reported a net profit of 5,638,852.49 RMB from non-recurring gains and losses, with government subsidies contributing 1,128,000.00 RMB and fair value changes from financial assets yielding 6,077,253.67 RMB[24]. - The company achieved operating revenue of 197.73 million yuan, a year-on-year increase of 17.62%[43]. - Net profit attributable to shareholders was 8.64 million yuan, a year-on-year decrease of 52.59%[43]. - The company reported a net profit of 20 million yuan for the first half of 2017, representing a year-on-year increase of 15%[92]. - The company reported a net loss of 19,000,000.00 RMB during the first half of 2017, indicating a challenging financial environment[166]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,467,771,203.65, an increase of 11.83% from ¥1,312,559,308.80 at the end of the previous year[19]. - The total liabilities increased significantly, with short-term borrowings rising by 46.74% to ¥4,070,184.35, reflecting new borrowings[58]. - The company's total liabilities increased to CNY 565,286,628.84 from CNY 408,550,018.59, reflecting a growth of about 38.3%[136]. - The company's equity attributable to shareholders was CNY 884,237,901.54, slightly up from CNY 883,290,784.19, indicating a marginal increase of about 0.1%[137]. - The total owner's equity at the end of the reporting period is 885,376,926.48 RMB, showing a significant increase from the previous period[166]. Investment and Growth Strategy - The company aims to enhance its smart city ecosystem by leveraging PPP models for investment, construction, and operation, without increasing local fiscal burdens[28]. - The company is focused on expanding its market presence through strategic investments and partnerships in the technology sector[63]. - The company plans to expand its market presence by entering three new provinces by the end of 2017, aiming for a 10% increase in market share[92]. - The company is considering strategic acquisitions to enhance its service portfolio, with a budget of up to 50 million yuan for potential targets[92]. - The company plans to enhance accounts receivable management by assigning dedicated personnel for collection and may resort to legal measures for overdue accounts to mitigate large bad debt losses[82]. Research and Development - The company has developed 17 patents and over 400 software copyrights, showcasing its R&D capabilities[36]. - Research and development expenses increased by 53.99% to ¥30,632,527.31, reflecting the company's commitment to enhancing R&D investment[54]. - The company has allocated 15% of its annual budget for research and development to enhance its technology offerings[92]. - The company emphasizes the need for strong R&D capabilities and resource optimization to maintain its competitive edge in the rapidly evolving software and information technology services market[78]. Market Trends and Industry Position - The smart city market in China is projected to exceed 6 trillion RMB in 2017, with an annual growth rate of approximately 32.64% expected until 2021[32]. - The overall investment in electronic government services in China is anticipated to maintain a growth rate of over 15%, exceeding 340 billion RMB by 2018[33]. - The sharing economy in China reached a market size of approximately 3.45 trillion RMB in 2016, with an estimated 600 million participants[34]. - Future growth in the sharing economy is expected to average 40% annually, with its transaction scale projected to account for over 10% of China's GDP by 2020[35]. - The company is a leading player in the "Internet + Government Services" sector, focusing on integrated services in areas such as public security, transportation, and big data[27]. Corporate Governance and Compliance - The company has committed to maintaining shareholder rights and complying with relevant regulations[95]. - The company appointed Fujian Huaxing Accounting Firm as the auditor for the 2017 financial statements and internal control audit services[97]. - The company has not faced any penalties or corrective actions from regulatory bodies during the reporting period[97]. - The company has implemented a stock incentive plan approved by the board, with details disclosed in previous announcements[99]. Share Capital and Ownership - The total share capital increased significantly by 300% from 101,707,880 shares to 406,831,520 shares due to the capital reserve conversion into share capital[19]. - The largest shareholder, Wu Zhixiong, held 230,017,000 shares, representing 56.54% of the total shares[120]. - The company has a total of 33,443 ordinary shareholders by the end of the reporting period[118]. - The company implemented a restricted stock incentive plan in 2016, granting 1,707,880 shares at a price of RMB 36.10 per share[169]. Financial Management and Cash Flow - The company reported a significant increase in sales expenses, which rose to ¥16,176,117.65 from ¥9,613,264.39, reflecting a 68.5% increase[142]. - The total cash inflow from investment activities reached ¥661,793,162.32, compared to ¥260,497,182.80 in the previous year, indicating a strong increase in investment recovery[150]. - The total cash and cash equivalents at the end of the period were ¥74,850,191.61, down from ¥134,224,878.20 at the end of the previous year[151]. - The company has a diversified investment strategy, including both equity and non-equity investments, to enhance its financial performance[63]. Risks and Challenges - The company has identified risks related to intensified market competition and operational funding for its PPP projects, which it plans to manage through careful financial planning[79]. - The company is experiencing a high level of accounts receivable, which is expected to increase further due to rapid business growth; if not collected timely, it may lead to bad debt losses affecting net profit and cash flow[82]. - The rapid expansion of the company's business scale poses management risks, necessitating timely adjustments to organizational structure and management systems[83].

Financial Performance - Operating revenue increased by 107.76% year-on-year to CNY 60,265,890.26[7] - Net profit attributable to shareholders was CNY -14,292,440.94, a decline of 16.62% compared to the same period last year[7] - Basic earnings per share improved by 71.37% to CNY -0.0351[7] - Operating costs increased by 142.39% to CNY 49,308,259.17 from CNY 20,342,271.61, primarily due to the rise in revenue[15] - The company reported a significant increase in prepayments, which rose to CNY 30,965,677.93 from CNY 8,664,335.32, representing a growth of approximately 258%[22] - The company reported a total comprehensive loss for the current period was -¥10,637,272.06, compared to -¥6,908,750.41 in the previous year[33] Cash Flow - The net cash flow from operating activities was CNY -57,902,059.18, representing a decrease of 32.61% year-on-year[7] - Cash inflows from operating activities totaled ¥72,485,002.98, down 35.5% from ¥112,588,559.96 in the prior period[35] - The net cash flow from investment activities was -98,123,343.46 RMB, an improvement from -163,197,416.23 RMB in the previous year, suggesting better management of investment cash outflows[37] - The company experienced a net decrease in cash and cash equivalents of -146,693,435.17 RMB during the quarter, compared to -182,388,591.11 RMB in the same quarter last year, indicating a slight improvement in cash management[38] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,300,366,047.56, a decrease of 0.93% compared to the end of the previous year[7] - Net assets attributable to shareholders decreased by 2.74% to CNY 859,127,524.27[7] - The company's current assets totaled CNY 980,345,110.19, down from CNY 1,012,281,474.43 at the start of the year, indicating a decline of approximately 3.3%[22] - Total liabilities rose to CNY 421,671,243.29 from CNY 408,550,018.59, marking an increase of about 3%[23] Investments - Long-term equity investments rose significantly by 3,556.41% to CNY 5,651,954.97, attributed to investments in acquisition funds[14] - The company reported an investment loss of -¥596,121.31, compared to -¥5,497,749.43 in the previous period, showing improvement[32] Strategic Initiatives - The company won a PPP project with a total investment of CNY 453,131,000, which is expected to enhance its experience in smart city construction[19] - The company plans to focus on urban management, industrial development, and public services to establish a benchmark smart city in Quanzhou[19] Financial Management - The company's financial expenses improved by 49.73%, with a reduction in bank deposit business losses[15] - The company's investment income loss decreased by 93.44%, indicating improved performance in trading financial assets[15] - The cash flow from financing activities was primarily impacted by dividend payments of 7,072,580.80 RMB, which were not present in the previous year[37]

Financial Performance - The net profit attributable to shareholders for 2016 was CNY 51,474,724.91, with the parent company's distributable profit amounting to CNY 378,322,640.30[8]. - The company's operating revenue for 2016 was CNY 468,074,426.65, representing a year-on-year increase of 36.67%[23]. - The net profit attributable to shareholders decreased by 18.48% to CNY 51,474,724.91, while the net profit after deducting non-recurring gains and losses increased by 25.73% to CNY 45,583,618.75[23]. - Basic earnings per share for 2016 were CNY 0.51, down 19.05% from the previous year, while diluted earnings per share were the same[24]. - The weighted average return on equity decreased to 5.86%, down 1.78 percentage points from 2015[25]. - The total assets at the end of 2016 were CNY 1,312,559,308.80, reflecting a 6.52% increase from the previous year[23]. - The company reported a total equity attributable to shareholders of CNY 883,290,784.19, which is a 4.02% increase compared to the end of 2015[23]. - The company's total liabilities as of December 31, 2016, were CNY 408,550,018.59, compared to CNY 359,947,330.02 at the beginning of the year, indicating an increase of about 13.5%[189]. - The total equity attributable to shareholders of the parent company was CNY 883,290,784.19 at the end of 2016, up from CNY 849,115,065.50 at the beginning of the year, reflecting a growth of approximately 4%[190]. - The company reported a total operating cost of CNY 445,455,902.20, which is a 41.6% increase from CNY 314,456,047.01 in 2015[194]. Dividends and Share Capital - The proposed cash dividend is CNY 1.60 per 10 shares (before tax), and a capital reserve conversion plan to increase share capital by 30 shares for every 10 shares held[8]. - The company reported a total share capital of 101,707,880 shares as of December 31, 2016[8]. - In 2016, the company distributed cash dividends of 1.9 RMB per 10 shares, totaling 19 million RMB, based on a total share capital of 100 million shares[99]. - The total number of ordinary shares increased from 100,000,000 to 101,707,880 due to the issuance of 1,707,880 restricted shares as part of the 2016 stock incentive plan[131]. Risk Management and Compliance - The report includes a detailed description of potential risks faced by the company in future developments[10]. - The company has not faced any non-operational fund occupation by controlling shareholders or related parties[10]. - The company has not violated any decision-making procedures for external guarantees[10]. - The company is facing risks related to technology, market competition, rising labor costs, and increasing accounts receivable, which could impact its financial performance[94][95][96][97]. - The company has not experienced significant issues with accounts receivable, as its clients are primarily government departments with good credit[97]. Strategic Focus and Development - The company is focused on developing solutions in e-government, smart public security, and smart city applications[14]. - The company aims to enhance its market presence through technological advancements and strategic partnerships[14]. - The company focused on the smart city sector, integrating resources and providing services to enhance urban infrastructure and services[31]. - The company is actively expanding into new industries such as smart transportation and big data, aligning with national strategies like "Made in China 2025"[31]. - The company is focusing on understanding rapidly changing customer needs and leveraging new information technologies to develop new products and expand into new markets[95]. - The company is actively involved in capital operations, including a public offering of shares and employee stock incentives to enhance team motivation and cohesion[57]. - The company is implementing a "5+5+5" strategic plan to drive transformation and innovation across its business operations[92]. Research and Development - The company has developed a comprehensive smart city platform based on big data, cloud computing, and various applications including smart governance and smart transportation[44]. - The company holds 12 patents and over 300 software copyrights, focusing on R&D in cloud computing, IoT, and big data technologies[45]. - Research and development expenses totaled ¥59,099,732.58, representing a 55.68% increase year-on-year, accounting for 12.63% of total revenue[70]. - The number of R&D personnel was 330, making up 34.41% of the total workforce, with a capitalized R&D expenditure ratio of 82.91%[70]. Financial Management and Investments - The total amount of entrusted financial management reached CNY 635,550,000, with actual recoverable principal amounting to CNY 455,250,000 and total earnings of CNY 5,031,716.55[123]. - The company has engaged in various entrusted financial management products, with amounts ranging from CNY 20 million to CNY 200 million across different financial institutions[123]. - The company has utilized idle raised funds for cash management, with a limit of CNY 180 million for idle raised funds and CNY 250 million for idle self-owned funds[123]. - The company has not reported any overdue principal or earnings from its entrusted financial management activities[123]. Corporate Governance - The company has established a two-tier management structure to improve operational efficiency and adapt to market changes[52]. - The company has implemented a restricted stock incentive plan, with the first grant registration completed on December 21, 2016[117]. - The company’s stock incentive plan was approved by the board and shareholders, reflecting a commitment to align employee interests with company performance[131]. - The company has committed to increasing R&D investment in new technologies and solutions to maintain its competitive edge[94]. Market Outlook - The smart city market in China is projected to grow from 616 billion yuan in 2013 to 1.3527 trillion yuan by 2017, with an annual growth rate of approximately 21%[39]. - China's e-government investment is expected to exceed 340 billion yuan by 2018, maintaining a growth rate of over 15% from 2014 to 2018[40]. - The sharing economy market in China was approximately 19.5 trillion yuan in 2015, with an expected annual growth rate of around 40% over the next five years[41]. - The financial outlook for the next fiscal year includes a projected revenue growth of approximately 20%[160].

Financial Performance - Operating revenue increased by 31.11% to CNY 260,268,302.88 for the first nine months compared to the same period last year[6]. - Net profit attributable to shareholders decreased by 24.78% to CNY 23,857,119.24 for the first nine months compared to the same period last year[6]. - Basic earnings per share decreased by 25.00% to CNY 0.24[7]. - The weighted average return on net assets decreased by 1.11 percentage points to 2.81%[7]. - Total revenue for the third quarter reached RMB 260,268,302.88, an increase of 31.11% compared to RMB 198,508,772.80 in the same period last year[13]. - Net profit decreased by 34.29% to RMB 19,943,473.22 from RMB 30,352,478.07 year-on-year, primarily due to increased investments in emerging business sectors and reduced government subsidies[14]. - The total cost of sales rose by 37.94% to RMB 248,514,338.48, driven by increased operational costs and management expenses[13]. - The total operating costs for Q3 2016 were CNY 95,029,793.17, compared to CNY 49,081,482.84 in Q3 2015, reflecting an increase of 93.5%[36]. - The net profit attributable to the parent company for Q3 2016 was CNY 5,628,000.63, down from CNY 8,762,826.95 in the same period last year, representing a decrease of 35.8%[37]. Cash Flow and Assets - Net cash flow from operating activities decreased by 42.88% to CNY -166,950,185.67 for the first nine months compared to the same period last year[6]. - Cash flow from operating activities showed a net outflow of RMB 166,950,185.67, significantly impacted by increased project procurement costs[15]. - The company's cash and cash equivalents decreased by 75.35% to RMB 122,207,109.43 from RMB 495,745,640.69 at the beginning of the period, mainly due to investments in financial products and project expenditures[13]. - Total current assets decreased to ¥920,752,749.09 from ¥1,015,581,845.30, representing a decline of about 9.3%[28]. - The company's cash and cash equivalents decreased to ¥48,396,104.93 from ¥394,753,309.88, a decline of 87.7%[31]. - The ending cash and cash equivalents balance was CNY 77,128,977.99, down from CNY 160,335,616.87 at the end of the previous year[46]. - The company’s total cash and cash equivalents decreased by CNY 336,692,267.90 during the reporting period, compared to a decrease of CNY 396,222,251.45 in the previous year[49]. Shareholder Information - The total number of shareholders reached 8,404 at the end of the reporting period[10]. - The largest shareholder, Wu Zhixiong, holds 57.50% of the shares, with 36,101,615 shares pledged[10]. - Shareholders are restricted from transferring shares within 36 months of the IPO, with specific conditions for share reduction thereafter[19]. - The company is obligated to compensate investors for losses due to misstatements in the prospectus, following regulatory recognition[19]. - The company will ensure that related party transactions adhere to market standards to protect shareholder interests[18]. Investments and Projects - The company initiated a rights issue to raise funds not exceeding RMB 836.80 million for various projects, including the smart city management platform and big data processing platform[16]. - The rights issue plan was approved by the board and shareholders, pending approval from the China Securities Regulatory Commission (CSRC)[16]. - The company committed to not engaging in competitive businesses during the control period and to disclose any related transactions transparently[18]. - The company plans to fully subscribe to the proposed rights issue, confirming the legality of the funding sources[21]. Inventory and Current Assets - Inventory increased by 35.89% to RMB 267,028,987.38, attributed to higher investments in ongoing projects[13]. - Accounts receivable increased to ¥181,741,602.19, up from ¥150,866,360.57, reflecting a growth of about 20.5%[28]. - Deferred income tax assets rose to ¥19,744,195.13 from ¥13,101,018.41, reflecting a growth of 50.9%[30]. - The total equity attributable to shareholders increased to ¥853,558,247.58 from ¥849,115,065.50, a slight increase of 0.5%[30]. Financial Commitments and Regulations - The company has committed to a share repurchase plan not exceeding 20% of the previous year's audited net profit attributable to shareholders[21]. - The controlling shareholder is required to propose a specific plan for shareholding increase within 10 trading days upon triggering conditions, with a maximum investment not exceeding ¥10 million[21]. - The company will repurchase shares if there are significant misstatements in the prospectus, with a plan to submit to shareholders for approval[19]. - The company will ensure timely disclosure of any failure to fulfill its commitments to maintain transparency with investors[19].

Financial Performance - The company's operating revenue for the first half of 2016 was ¥168,107,944.52, representing a 16.70% increase compared to ¥144,045,393.60 in the same period last year[22]. - The net profit attributable to shareholders for the first half of 2016 was ¥18,229,118.61, a decrease of 20.58% from ¥22,952,216.02 in the previous year[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 25.06% to ¥21,657,876.44 from ¥17,317,751.16 year-on-year[22]. - The basic earnings per share for the first half of 2016 was ¥0.18, down 21.74% from ¥0.23 in the same period last year[22]. - The weighted average return on net assets decreased by 0.69 percentage points to 2.12% from 2.81% year-on-year[22]. - The net cash flow from operating activities was negative at -¥138,000,347.14, worsening by 23.61% compared to -¥111,639,293.66 in the previous year[22]. - Total assets at the end of the reporting period were ¥1,186,778,002.91, a decrease of 3.69% from ¥1,232,276,482.31 at the end of the previous year[22]. - The net assets attributable to shareholders at the end of the reporting period were ¥848,344,184.11, a slight decrease of 0.09% from ¥849,115,065.50 at the end of the previous year[22]. Revenue and Growth - The company achieved operating revenue of RMB 168.11 million in the first half of 2016, representing a year-on-year growth of 16.70%[27]. - The company's main business revenue increased by 16.65% compared to the same period last year, with software development revenue growing by 92.33%[39]. - Revenue from the software industry reached ¥167,090,249.02, with a gross profit margin of 35.97%[38]. - Revenue from the Fujian province accounted for 78% of total revenue, growing at a rate of 13.45%, while revenue from outside Fujian increased by 29.70%[41]. Investments and Subsidiaries - The company has established two new subsidiaries in Gansu and Hainan, focusing on regional market expansion[29]. - The company has made investments in low-risk financial products and stocks of listed companies during the reporting period[45]. - The total value of securities investments at the end of the period was ¥43,470,437.35, with a reported loss of ¥7,395,360.88[46]. - The company has several subsidiaries, including Fujian Nanwei Software Co., Ltd., which reported a net loss of CNY 888,403.15[62]. - The company’s subsidiary, Fujian Shenwei System Integration Co., Ltd., also reported a net loss of CNY 2,005,255.33[62]. Research and Development - R&D expenditure increased by 19.24% to RMB 19.89 million, reflecting the company's commitment to enhancing its research capabilities[33]. - The company has made progress in its traditional e-government business transformation, focusing on internet integration and big data technology[28]. - The company is actively engaged in the development of new technologies and products, focusing on software development and technical services[62]. Strategic Initiatives - The company signed strategic cooperation framework agreements for four smart city projects, including Smart Pingtan and Smart Jiangbei, continuing to promote the PPP model in smart city operations[29]. - The company launched the "Wanchuang China" sharing economy platform on June 30, 2016, aimed at supporting innovation and entrepreneurship[30]. - The company initiated a rights issue to raise up to RMB 836.80 million for projects including smart city management platform development and big data processing[32]. Financial Management - The company approved a maximum of 180 million RMB for cash management using idle raised funds[53]. - The company also approved a maximum of 250 million RMB for cash management using idle self-owned funds[53]. - The total amount of entrusted financial management reached 458.05 million RMB, with a total income of 5.42 million RMB[52]. - The company redeemed 75 million RMB from a financial product with an interest income of 554,315.07 RMB[51]. Shareholder Information - The total number of shareholders reached 10,940 by the end of the reporting period[81]. - Wu Zhixiong, the chairman and general manager, increased his shareholding by 100,000 shares, bringing his total to 57,504,250 shares, which represents 57.50% of the total shares[90]. - Tianjin Kaixin Jinpeng Equity Investment Fund reduced its holdings by 2,234,000 shares, holding 5,214,250 shares at the end of the reporting period, which is 5.21% of the total shares[82]. Compliance and Governance - The company has maintained strict compliance with corporate governance regulations, enhancing its internal control systems and information disclosure management[76]. - The company’s governance structure complies with the requirements set forth by the Company Law and the China Securities Regulatory Commission[76]. - There were no significant lawsuits, bankruptcy reorganizations, or major asset transactions reported during the period[69]. Future Outlook - The company expects revenue growth of 20% for the second half of 2016, driven by new product launches and market expansion strategies[73]. - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share by the end of 2017[73]. - A strategic acquisition of a local software firm is anticipated to enhance the company's product offerings and customer base[73]. Accounting Policies - The company adheres to the Chinese Accounting Standards, ensuring that financial statements accurately reflect its financial position and operating results[131]. - The financial statements are prepared based on the going concern principle, indicating no significant issues affecting the company's ability to continue operations for at least 12 months[129]. - The company has established specific accounting policies and estimates tailored to its operational characteristics[130].