1 / 27 新智认知 2021 年第一季度报告 公司代码：603869 公司简称：新智认知 新智认知数字科技股份有限公司 2021 年第一季度报告 | 一、 | 重要提示 3 | | --- | --- | | 二、 | 公司基本情况 3 | | 三、 | 重要事项 6 | | 四、 | 附录 10 | 新智认知 2021 年第一季度报告 一、 重要提示 二、 公司基本情况 随着上一年度受疫情影响建设进度延期的项目逐步完工确认，公司营业收入较去年同期增长 89.83%，同时公司自研软件产品增加，项目毛利水平持续攀升；此外由于出售航线资产、股权转 让款收回等原因，本期管理费用、财务费用相应大幅降低，2021 年一季度归属于上市公司股东净 利润 1,175.80 万元，同比增长 109.73%。 非经常性损益项目和金额 √适用 □不适用 3 / 27 1.1 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 1.2 公司全体董事出席董事会审议季度报告。 1.3 公司负责人张亚东、主管会计工作负责人张炎锋及会计机 ...

[Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) [Statement on Report Authenticity](index=3&type=section&id=1.1%20Statement%20on%20Report%20Authenticity) The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, with all directors attending the review meeting, and the report remains unaudited - Board of Directors, Supervisory Board, Directors, Supervisors, and Senior Management guarantee the truthfulness, accuracy, and completeness of the quarterly report, with no false records, misleading statements, or major omissions, and bear individual and joint legal responsibility[6](index=6&type=chunk) - All company directors attended the board meeting to review the quarterly report[6](index=6&type=chunk) - This company's first-quarter report is unaudited[6](index=6&type=chunk) [Company Basic Information](index=3&type=section&id=Item%20II.%20Company%20Basic%20Information) [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) The company's Q1 2021 key financial data shows significant year-on-year growth in operating revenue and net profit, driven by project completion, increased self-developed software, and reduced expenses from asset sales, with improved net cash flow from operating activities 2021 Q1 Key Financial Data Overview | Indicator | Period-End Balance/Beginning of Current Period | Prior Year-End/Beginning of Prior Year to Prior Year Period-End | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 6,421,004,300.99 CNY | 6,410,390,123.58 CNY | 0.17% | | Net Assets Attributable to Shareholders of Listed Company | 3,975,084,824.49 CNY | 3,963,326,813.48 CNY | 0.30% | | Net Cash Flow from Operating Activities | -9,369,269.83 CNY | -65,472,826.91 CNY | 85.69% | | Operating Revenue | 159,791,266.87 CNY | 84,177,510.76 CNY | 89.83% | | Net Profit Attributable to Shareholders of Listed Company | 11,758,011.01 CNY | -120,783,110.33 CNY | 109.73% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 204,382.11 CNY | -125,728,031.68 CNY | 100.16% | | Weighted Average Return on Net Assets (%) | 0.30 | -3.11 | Increased by 3.41 percentage points | | Basic Earnings Per Share (CNY/share) | 0.02 | -0.24 | 109.73% | | Diluted Earnings Per Share (CNY/share) | 0.02 | -0.24 | 109.73% | - Operating revenue increased by **89.83%** year-on-year, primarily due to the gradual completion and recognition of projects delayed by the pandemic in the previous year, coupled with an increase in the company's self-developed software products and a continuous rise in project gross profit margins[5](index=5&type=chunk) - Net profit attributable to shareholders of the listed company in Q1 2021 was **CNY 11.758 million**, a year-on-year increase of **109.73%**, mainly due to significantly reduced administrative and financial expenses resulting from the sale of airline assets and recovery of equity transfer payments[5](index=5&type=chunk) Non-Recurring Gains and Losses Items and Amounts | Item | Current Period Amount (CNY) | | :--- | :--- | | Gains and Losses from Disposal of Non-Current Assets | 93,640.83 | | Tax refunds, reductions, or exemptions due to unauthorized approvals, lack of formal approval documents, or incidental events | 845,871.73 | | Government subsidies recognized in current profit or loss | 15,257,353.71 | | Other non-operating income and expenses apart from the above | -1,235,711.69 | | Impact on minority interests (after tax) | -1,433,125.73 | | Income tax impact | -1,974,399.95 | | Total | 11,553,628.90 | [Total Number of Shareholders, Top Ten Shareholders, and Top Ten Circulating Shareholders (or Shareholders with No Restricted Shares) as of the End of the Reporting Period](index=5&type=section&id=2.2%20Total%20Number%20of%20Shareholders%2C%20Top%20Ten%20Shareholders%2C%20and%20Top%20Ten%20Circulating%20Shareholders%20(or%20Shareholders%20with%20No%20Restricted%20Shares)%20as%20of%20the%20End%20of%20the%20Reporting%20Period) As of the end of the reporting period, the company had 19,506 shareholders, with New Oriental Energy Supply Chain Co., Ltd. holding the largest stake at 35.05%, and several top ten shareholders being related to the actual controller, Mr. Wang Yushuo - Total number of shareholders (households) is **19,506**[10](index=10&type=chunk) Top Ten Shareholders' Shareholding | Shareholder Name (Full Name) | Number of Shares Held at Period End | Proportion (%) | Pledged or Frozen Status | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | New Oriental Energy Supply Chain Co., Ltd. | 176,841,072 | 35.05 | None | Domestic Non-State-Owned Legal Person | | Zhang Tao | 36,000,000 | 7.14 | Pledged 36,000,000 | Domestic Natural Person | | Tianjin Yienrui Investment Center (Limited Partnership) | 31,041,252 | 6.15 | None | Domestic Non-State-Owned Legal Person | | Suqian Xinyidehui Investment Management Center (Limited Partnership) | 21,760,879 | 4.31 | None | Domestic Non-State-Owned Legal Person | | New Oriental Capital Management Co., Ltd. | 18,666,443 | 3.70 | None | Domestic Non-State-Owned Legal Person | | New Oriental Holdings Investment Co., Ltd. | 14,507,253 | 2.88 | None | Domestic Non-State-Owned Legal Person | | Yang Ying | 8,054,911 | 1.60 | None | Domestic Natural Person | | New Oriental Cognitive Digital Technology Co., Ltd. Repurchase Special Securities Account | 6,734,687 | 1.33 | None | Domestic Non-State-Owned Legal Person | | Zhao Tianshi | 4,503,093 | 0.89 | None | Domestic Natural Person | | Shanghai Yifeng Investment Management Co., Ltd. - Yifeng Long-Term Investment No. 1 Private Equity Fund | 4,464,109 | 0.88 | None | Domestic Non-State-Owned Legal Person | - New Oriental Energy Supply Chain Co., Ltd., Tianjin Yienrui Investment Center (Limited Partnership), Suqian Xinyidehui Investment Management Center (Limited Partnership), New Oriental Capital Management Co., Ltd., and New Oriental Holdings Investment Co., Ltd. are all enterprises actually controlled by the company's actual controller, Mr. Wang Yushuo[11](index=11&type=chunk) [Total Number of Preferred Shareholders, Top Ten Preferred Shareholders, and Top Ten Preferred Shareholders with No Restricted Shares as of the End of the Reporting Period](index=6&type=section&id=2.3%20Total%20Number%20of%20Preferred%20Shareholders%2C%20Top%20Ten%20Preferred%20Shareholders%2C%20and%20Top%20Ten%20Preferred%20Shareholders%20with%20No%20Restricted%20Shares%20as%20of%20the%20End%20of%20the%20Reporting%20Period) As of the end of the reporting period, the company had no preferred shareholders - Not applicable[11](index=11&type=chunk) [Significant Events](index=6&type=section&id=Item%20III.%20Significant%20Events) [Significant Changes and Reasons for Major Accounting Statement Items and Financial Indicators](index=6&type=section&id=3.1%20Significant%20Changes%20and%20Reasons%20for%20Major%20Accounting%20Statement%20Items%20and%20Financial%20Indicators) During the reporting period, several financial accounts experienced significant changes, with notable increases in monetary funds, notes receivable, construction in progress, deferred income tax assets, notes payable, other income, credit impairment losses, net cash flow from operating activities, and net cash flow from investing activities; conversely, accounts receivable financing, other receivables, contract liabilities, employee compensation payable, non-current liabilities due within one year, long-term payables, deferred income, administrative expenses, financial expenses, and net cash flow from financing activities significantly decreased, primarily influenced by the recovery of equity transfer payments, maturity of notes, project completion, optimized financing structure, and the sale of airline assets Major Accounting Statement Item Changes | Account | Period-End Balance/Beginning of Current Period (CNY) | Beginning Balance/Prior Year Same Period (CNY) | Change Amount (CNY) | Change Rate (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 2,451,596,951.81 | 1,773,533,862.71 | 678,063,089.10 | 38.23 | Recovery of equity transfer payments | | Accounts Receivable Financing | 155,719.69 | 2,612,589.50 | -2,456,869.81 | -94.04 | Notes matured | | Other Receivables | 43,511,419.49 | 762,686,569.30 | -719,175,149.81 | -94.29 | Early recovery of equity transfer payments from the sale of Beihai Xinyi Ferry | | Construction in Progress | 682,084.06 | 356,902.65 | 325,181.41 | 91.11 | Office building renovation | | Deferred Income Tax Assets | 163,556,107.54 | 111,536,535.81 | 52,019,571.73 | 46.64 | Unrealized intercompany profit and reversal of bad debt provisions | | Notes Payable | 14,364,600.00 | 6,715,853.20 | 7,648,746.80 | 113.89 | Increased note payments from daily operating activities | | Contract Liabilities | 59,484,799.30 | 89,248,204.03 | -29,763,404.73 | -33.35 | Advance receipts recognized as revenue | | Non-Current Liabilities Due Within One Year | 22,740,829.84 | 83,419,116.43 | -60,678,286.59 | -72.74 | Optimized financing structure, reduced high-interest finance lease business | | Long-Term Payables | 0 | 5,242,991.41 | -5,242,991.41 | -100.00 | Optimized financing structure, reduced high-interest finance lease business | | Operating Revenue | 159,791,266.87 | 84,177,510.76 | 75,613,756.11 | 89.83 | Gradual completion and recognition of projects delayed by the pandemic | | Administrative Expenses | 22,511,013.15 | 43,327,573.38 | -20,816,560.23 | -48.04 | Reduced personnel and depreciation after selling airline assets | | Financial Expenses | 5,600,929.41 | 25,941,060.68 | -20,340,131.27 | -78.41 | Reduced interest-bearing debt, optimized financing structure | | Other Income | 16,103,225.44 | 9,008,244.06 | 7,094,981.38 | 78.76 | Deferred income transferred to other income | | Credit Impairment Losses | 18,832,564.06 | -2,751,215.39 | 21,583,779.45 | 784.52 | Recovery of accounts receivable and other receivables, reversal of bad debt provisions | | Net Cash Flow from Operating Activities | -9,369,269.83 | -65,472,826.91 | 56,103,557.08 | 85.69 | Reduced expenses after selling airline assets | | Net Cash Flow from Investing Activities | 623,658,845.30 | -64,097,486.52 | 687,756,331.82 | 1,072.98 | Recovery of equity transfer payments from the sale of airline assets | | Net Cash Flow from Financing Activities | -154,285,482.38 | 291,093,259.07 | -445,378,741.45 | 153.00 | Optimized financing structure, reduced interest-bearing debt | [Analysis of Progress, Impact, and Solutions for Significant Events](index=7&type=section&id=3.2%20Analysis%20of%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Events) The company successfully recovered **CNY 1.37 billion** in equity transfer payments for Beihai Xinyi Ferry ahead of schedule, significantly boosting its financial strength, while also fully releasing **CNY 490 million** in related party guarantees from the airline asset sale, eliminating potential risks, and the controlling shareholder's concerted party initiated a share increase plan of no less than **CNY 50 million**, demonstrating confidence in the company's development - The company prematurely recovered **CNY 1.37 billion** in equity transfer payments for 100% of Beihai Xinyi Ferry Co., Ltd., received in two installments on December 25, 2020, and March 15, 2021, further strengthening the company's financial position[14](index=14&type=chunk)[15](index=15&type=chunk) - The **CNY 490 million** related party guarantee formed from the sale of Xinyi Ferry Co., Ltd. equity has been fully released, and the company no longer has other related party guarantees[15](index=15&type=chunk) - New Oriental Xinzhi IoT Co., Ltd., a concerted party of the company's controlling shareholder New Oriental Energy Supply Chain Co., Ltd., plans to increase its shareholding in the company by no less than **CNY 50 million** within 6 months, having already accumulated **CNY 36,403,943** as of April 15, 2021[16](index=16&type=chunk) [Unfulfilled Commitments Overdue During the Reporting Period](index=8&type=section&id=3.3%20Unfulfilled%20Commitments%20Overdue%20During%20the%20Reporting%20Period) The company had no unfulfilled commitments overdue during the reporting period - Not applicable[17](index=17&type=chunk) [Warning and Explanation of Reasons if Cumulative Net Profit from the Beginning of the Year to the End of the Next Reporting Period is Expected to be a Loss or Undergo Significant Changes Compared to the Same Period Last Year](index=9&type=section&id=3.4%20Warning%20and%20Explanation%20of%20Reasons%20if%20Cumulative%20Net%20Profit%20from%20the%20Beginning%20of%20the%20Year%20to%20the%20End%20of%20the%20Next%20Reporting%20Period%20is%20Expected%20to%20be%20a%20Loss%20or%20Undergo%20Significant%20Changes%20Compared%20to%20the%20Same%20Period%20Last%20Year) The company did not forecast cumulative net profit from the beginning of the year to the end of the next reporting period to be a loss or undergo significant changes - Not applicable[18](index=18&type=chunk) [Appendix](index=10&type=section&id=Item%20IV.%20Appendix) [Financial Statements](index=10&type=section&id=4.1%20Financial%20Statements) This section provides the company's consolidated and parent company balance sheets, income statements, and cash flow statements for Q1 2021, detailing the financial position, operating results, and cash flow at the end of the reporting period, all unaudited [Consolidated Balance Sheet](index=10&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2021, the company's consolidated total assets were **CNY 6.421 billion**, a slight increase of **0.17%** from the end of the previous year, with monetary funds significantly increasing by **38.23%** due to equity transfer payment recovery, while other receivables sharply decreased by **94.29%** from early recovery of equity transfer payments Consolidated Balance Sheet Key Data (March 31, 2021 vs December 31, 2020) | Item | March 31, 2021 (CNY) | December 31, 2020 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Monetary Funds | 2,451,596,951.81 | 1,773,533,862.71 | 38.23 | | Accounts Receivable | 1,562,357,880.46 | 1,525,812,177.92 | 2.39 | | Other Receivables | 43,511,419.49 | 762,686,569.30 | -94.29 | | Total Current Assets | 4,796,465,383.40 | 4,804,566,850.04 | -0.17 | | Total Assets | 6,421,004,300.99 | 6,410,390,123.58 | 0.17 | | Short-Term Borrowings | 1,323,126,034.91 | 1,225,344,859.74 | 8.00 | | Total Liabilities | 2,417,077,158.77 | 2,416,122,813.66 | 0.04 | | Total Equity Attributable to Parent Company Owners | 3,975,084,824.49 | 3,963,326,813.48 | 0.30 | - The increase in monetary funds is primarily due to the recovery of equity transfer payments paid in cash[13](index=13&type=chunk) - The decrease in other receivables is primarily due to the early recovery of corresponding equity transfer payments from the sale of Beihai Xinyi Ferry[13](index=13&type=chunk) [Parent Company Balance Sheet](index=12&type=section&id=Parent%20Company%20Balance%20Sheet) As of March 31, 2021, the parent company's total assets were **CNY 5.419 billion**, an increase of **12.36%** from the end of the previous year, with monetary funds significantly growing by **62.13%** and other receivables increasing by **41.33%,** while short-term borrowings decreased, other payables substantially increased Parent Company Balance Sheet Key Data (March 31, 2021 vs December 31, 2020) | Item | March 31, 2021 (CNY) | December 31, 2020 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Monetary Funds | 610,826,511.07 | 376,780,652.56 | 62.13 | | Other Receivables | 1,204,591,049.45 | 852,326,117.07 | 41.33 | | Long-Term Equity Investments | 3,480,403,892.65 | 3,480,403,892.65 | 0.00 | | Total Assets | 5,418,754,813.77 | 4,822,722,825.22 | 12.36 | | Short-Term Borrowings | 251,282,430.55 | 400,882,597.23 | -37.32 | | Other Payables | 1,524,183,369.54 | 755,731,585.63 | 101.68 | | Total Liabilities | 2,067,089,538.32 | 1,465,180,544.19 | 41.08 | | Total Owners' Equity | 3,351,665,275.45 | 3,357,542,281.03 | -0.17 | [Consolidated Income Statement](index=14&type=section&id=Consolidated%20Income%20Statement) In Q1 2021, the company's consolidated total operating revenue increased by **89.83%** to **CNY 160 million**, with net profit turning from a loss to a profit of **CNY 9.66 million**, and net profit attributable to parent company shareholders significantly growing by **109.73%** to **CNY 11.76 million**, primarily due to increased operating revenue, substantially reduced administrative and financial expenses, and the reversal of credit impairment losses Consolidated Income Statement Key Data (Q1 2021 vs Q1 2020) | Item | Q1 2021 (CNY) | Q1 2020 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 159,791,266.87 | 84,177,510.76 | 89.83 | | Total Operating Costs | 181,207,323.87 | 220,660,979.46 | -17.88 | | Administrative Expenses | 22,511,013.15 | 43,327,573.38 | -48.04 | | Financial Expenses | 5,600,929.41 | 25,941,060.68 | -78.41 | | Credit Impairment Losses | 18,832,564.06 | -2,751,215.39 | 784.52 | | Operating Profit | 9,134,729.30 | -131,876,636.27 | 106.93 | | Net Profit | 9,659,832.30 | -125,132,917.21 | 107.72 | | Net Profit Attributable to Parent Company Shareholders | 11,758,011.01 | -120,783,110.33 | 109.73 | | Basic Earnings Per Share (CNY/share) | 0.02 | -0.24 | 109.73 | - The increase in operating revenue is primarily due to the gradual completion and recognition of projects delayed by the pandemic in the previous year[13](index=13&type=chunk) - The significant decrease in administrative and financial expenses is primarily due to reduced personnel and depreciation after the sale of airline assets, as well as a reduction in interest-bearing debt and optimized financing structure[13](index=13&type=chunk) - The positive turn in credit impairment losses is primarily due to the recovery of accounts receivable and other receivables, and the reversal of related bad debt provisions[13](index=13&type=chunk) [Parent Company Income Statement](index=17&type=section&id=Parent%20Company%20Income%20Statement) In Q1 2021, the parent company's operating revenue was **CNY 36,123.85**, with a net loss of **CNY 5.877 million**, a **16.84%** reduction in loss year-on-year, while financial expenses remained a major expenditure but decreased year-on-year Parent Company Income Statement Key Data (Q1 2021 vs Q1 2020) | Item | Q1 2021 (CNY) | Q1 2020 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 36,123.85 | 0 | N/A | | Administrative Expenses | 125,189.34 | 4,406,897.57 | -97.16 | | Financial Expenses | 5,755,239.38 | 2,153,330.96 | 167.27 | | Operating Profit | -5,902,253.37 | -7,067,319.13 | 16.49 | | Net Profit | -5,877,005.58 | -7,067,319.13 | 16.84 | - Parent company administrative expenses decreased significantly by **97.16%** year-on-year[37](index=37&type=chunk) - Parent company financial expenses increased significantly by **167.27%** year-on-year, primarily due to increased interest expenses[37](index=37&type=chunk) [Consolidated Cash Flow Statement](index=18&type=section&id=Consolidated%20Cash%20Flow%20Statement) In Q1 2021, the company's net cash flow from operating activities significantly improved, increasing by **85.69%** from **CNY -65.47 million** to **CNY -9.37 million** year-on-year, while net cash flow from investing activities turned positive, sharply increasing by **1072.98%** to **CNY 623.66 million** due to the recovery of equity transfer payments from airline asset sales, and net cash flow from financing activities turned negative, decreasing by **153.00%** to **CNY -154.29 million** due to optimized financing structure and reduced interest-bearing debt Consolidated Cash Flow Statement Key Data (Q1 2021 vs Q1 2020) | Item | Q1 2021 (CNY) | Q1 2020 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -9,369,269.83 | -65,472,826.91 | 85.69 | | Net Cash Flow from Investing Activities | 623,658,845.30 | -64,097,486.52 | 1,072.98 | | Net Cash Flow from Financing Activities | -154,285,482.38 | 291,093,259.07 | -153.00 | | Net Increase in Cash and Cash Equivalents | 460,004,093.09 | 161,522,945.64 | 184.79 | - The increase in net cash flow from operating activities is primarily due to reduced expenses after the sale of airline assets[13](index=13&type=chunk) - The increase in net cash flow from investing activities is primarily due to the recovery of equity transfer payments from the sale of airline assets[13](index=13&type=chunk) - The decrease in net cash flow from financing activities is primarily due to the company optimizing its financing structure and reducing the scale of interest-bearing debt[13](index=13&type=chunk) [Parent Company Cash Flow Statement](index=20&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In Q1 2021, the parent company's net cash flow from operating activities significantly turned positive to **CNY 414.54 million** from **CNY -91.77 million** in the prior year, mainly due to a substantial increase in other cash received related to operating activities, while net cash flow from financing activities was **CNY -180.47 million**, primarily used for debt repayment Parent Company Cash Flow Statement Key Data (Q1 2021 vs Q1 2020) | Item | Q1 2021 (CNY) | Q1 2020 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Other Cash Received Related to Operating Activities | 1,343,148,430.15 | 328,236,074.25 | 309.19 | | Net Cash Flow from Operating Activities | 414,537,108.50 | -91,765,222.22 | 551.70 | | Net Cash Flow from Financing Activities | -180,472,499.99 | -123,374,958.09 | -46.28 | | Net Increase in Cash and Cash Equivalents | 234,045,858.51 | -215,155,172.31 | 208.78 | - The significant increase in the parent company's total cash inflow from operating activities is primarily due to a substantial increase in other cash received related to operating activities[44](index=44&type=chunk) - The parent company's total cash outflow from financing activities is primarily used for debt repayment[45](index=45&type=chunk) [Adjustments to Financial Statements at the Beginning of the First Year of Adoption of New Lease Standards from 2021](index=22&type=section&id=4.2%20Adjustments%20to%20Financial%20Statements%20at%20the%20Beginning%20of%20the%20First%20Year%20of%20Adoption%20of%20New%20Lease%20Standards%20from%202021) The company adopted new lease standards from January 1, 2021, adjusting consolidated and parent company balance sheets by adding "right-of-use assets" and "lease liabilities," with consolidated statements showing **CNY 5.9624 million** for both, affecting only the financial statement items at the beginning of the first year of adoption without retrospective adjustment of comparable period data [Consolidated Balance Sheet](index=22&type=section&id=Consolidated%20Balance%20Sheet) The first adoption of new lease standards led to the addition of **CNY 5.9624 million** in right-of-use assets and **CNY 5.9624 million** in lease liabilities to the consolidated balance sheet as of January 1, 2021, increasing total assets and liabilities accordingly, but without affecting owners' equity Consolidated Balance Sheet New Lease Standard Adjustments (December 31, 2020 vs January 1, 2021) | Item | December 31, 2020 (CNY) | January 1, 2021 (CNY) | Adjustment Amount (CNY) | | :--- | :--- | :--- | :--- | | Right-of-Use Assets | 0 | 5,962,350.56 | 5,962,350.56 | | Total Non-Current Assets | 1,605,823,273.54 | 1,611,785,624.10 | 5,962,350.56 | | Total Assets | 6,410,390,123.58 | 6,416,352,474.14 | 5,962,350.56 | | Lease Liabilities | 0 | 5,962,350.56 | 5,962,350.56 | | Total Non-Current Liabilities | 234,058,803.19 | 240,021,153.75 | 5,962,350.56 | | Total Liabilities | 2,416,122,813.66 | 2,422,085,164.22 | 5,962,350.56 | [Parent Company Balance Sheet](index=24&type=section&id=Parent%20Company%20Balance%20Sheet) The parent company balance sheet remained unchanged upon the initial adoption of new lease standards, with all items showing consistent amounts on December 31, 2020, and January 1, 2021 - The parent company balance sheet remained unchanged upon the initial adoption of new lease standards, with all items showing consistent amounts on December 31, 2020, and January 1, 2021[49](index=49&type=chunk)[52](index=52&type=chunk) [Explanation of Retrospective Adjustment of Prior Period Comparative Data upon First Adoption of New Lease Standards from 2021](index=26&type=section&id=4.3%20Explanation%20of%20Retrospective%20Adjustment%20of%20Prior%20Period%20Comparative%20Data%20upon%20First%20Adoption%20of%20New%20Lease%20Standards%20from%202021) The company implemented new lease standards from January 1, 2021, adjusting only the opening retained earnings and other related financial statement items for the first year of adoption, without retrospectively adjusting comparable data for the end of 2020, and this accounting policy change is not expected to significantly impact the company's financial position, operating results, or cash flows - The company implemented new lease standards from January 1, 2021, and will disclose financial statements according to the new lease standards from Q1 2021, without restating comparable data for the end of 2020[53](index=53&type=chunk) - According to the transition provisions, the cumulative impact of the first adoption of new lease standards only adjusts the opening retained earnings and other related financial statement items for the year of first adoption[53](index=53&type=chunk) - This accounting policy change is not expected to significantly impact the company's financial position, operating results, or cash flows[53](index=53&type=chunk) [Audit Report](index=27&type=section&id=4.4%20Audit%20Report) This quarterly report is unaudited - Not applicable[54](index=54&type=chunk)

Financial Performance - The company achieved operating revenue of ¥1,174,809,880.72 in 2020, a decrease of 63.61% compared to ¥3,227,973,598.50 in 2019[5] - The net profit attributable to shareholders was ¥16,947,982.07, while the parent company's net profit was -¥58,174,327.93[5] - The company's net profit attributable to shareholders was CNY 16,947,982.07, a decrease of 92.11% compared to the previous year[23] - The net profit after deducting non-recurring gains and losses was CNY -335,612,326.89, a decline of 295.48% year-on-year[23] - The operating revenue after excluding non-main business income was ¥1,173,126,683.52, also reflecting a 63.61% decrease from the previous year[22] - The company's total assets decreased by 10.24% to CNY 6,410,390,123.58 from CNY 7,142,019,621.01 in the previous year[23] - Basic earnings per share were CNY 0.03, down 93.02% from CNY 0.43 in 2019[24] - The weighted average return on net assets was 0.43%, a decrease of 5.00 percentage points from the previous year[24] - The company's operating revenue for the reporting period decreased significantly, with a decline of 72.94% in product sales and system integration, and a decrease of 68.60% in industry cognitive solution business revenue[59] - Operating costs were CNY 795.52 million, down 65.97% year-on-year[54] Dividend and Shareholder Information - The company proposed a cash dividend of ¥0.1 per 10 shares, resulting in a total dividend distribution of ¥6,977,317.71, which accounts for 41.17% of the net profit attributable to shareholders[6] - The company reported a cash dividend of 1,999,659.5 RMB for 2020, representing 11.80% of its profits[99] - The company did not propose a cash dividend for 2019, as the total amount paid for share repurchases reached 46.09% of the net profit attributable to shareholders[95] - The total number of ordinary shares is 504,500,508, with 100% being tradable shares[130] - The total number of ordinary shareholders decreased from 19,506 to 14,554 during the reporting period[133] - The largest shareholder, Xin'ao Energy Supply Chain Co., Ltd., holds 176,841,072 shares, representing 35.05% of the total shares, with 147,444,480 shares pledged[135] Cash Flow and Financial Stability - The operating cash flow net amount was CNY 606,599,663.71, an increase of 136.57% compared to the previous year[23] - The company improved its cash flow from operating activities, reaching CNY 606.60 million, an increase of 136.57% compared to the previous year[54] - Cash and cash equivalents increased by 133.81% to ¥1,773,533,862.71, accounting for 27.67% of total assets, primarily due to strong sales collections and proceeds from the sale of equity in Beihai Xinyi Yacht[71] - Trade receivables decreased by 31.00% to ¥1,525,812,177.92, representing 23.80% of total assets, attributed to improved sales collections and adjustments under new revenue recognition standards[71] - The company has reduced accounts receivable by 30.98% to CNY 1.53 billion, improving cash flow stability[51] Business Strategy and Focus Areas - The company plans to continue its focus on sustainable and steady profitability while considering long-term development[6] - The company is focusing on smart city solutions and has developed platforms for data aggregation and decision-making to enhance operational efficiency[33] - The company has developed industry-specific solutions in areas such as smart policing and public safety, including systems for risk insight, security management, and emergency response[40] - The company aims to improve its delivery capabilities in policing, public services, and community sectors by leveraging core products like the smart IoT platform and intelligent central platform[85] - The company is focusing on transitioning from project construction to operational services in smart city development, targeting new business models and growth points[86] Research and Development - The company has maintained a high level of R&D investment, focusing on innovative technologies and improving development efficiency[46] - R&D expenses reached 134.39 million RMB, accounting for 11% of total operating revenue, ensuring sustained investment in R&D and maintaining core competitive advantages[64] - Total R&D investment amounted to 159.90 million RMB, representing 13.61% of operating revenue, with 63.94% of the workforce engaged in R&D[65] - The company aims to increase its R&D budget by 15% to support ongoing innovation and product development initiatives[149] Corporate Governance and Compliance - The company has committed to reducing related party transactions and avoiding competition with peers, with commitments made by actual controllers Wang Yusuo and Zhang Tao since February 2016[101] - The company has guaranteed the authenticity and completeness of restructuring documents, with commitments made by major shareholders and controllers since February 2016[101] - The company emphasizes compliance with laws and regulations while actively participating in social responsibility initiatives[122] - The company has received recognition for its contributions to social welfare and economic development, including awards for outstanding contributions[124] - The company emphasizes compliance with information disclosure requirements, ensuring timely and accurate reporting to shareholders[165] Market and Competitive Environment - The company acknowledges potential risks from the post-pandemic economic environment, including possible fiscal tightening and reduced project investments from local governments[89] - The company faces intensified market competition in the smart city sector, necessitating a focus on strengthening its technical capabilities and operational services[92] Employee and Talent Management - The company focuses on talent development and employee welfare, enhancing overall corporate responsibility awareness[127] - The company has implemented a value-sharing incentive system for employee remuneration, which includes baseline sharing and excess performance sharing[157] - The company organized various training programs for management and new employees to enhance their skills and integration into the company culture[159] Asset Management - The company's goodwill balance was 701.65 million yuan, with a goodwill impairment provision of 89.24 million yuan as of December 31, 2020[182] - Total current assets as of December 31, 2020, amounted to ¥4,804,566,850.04, an increase from ¥4,178,235,915.50 in 2019, representing a growth of approximately 14.9%[192] - Total liabilities decreased from CNY 3,144,750,990.53 in 2019 to CNY 2,416,122,813.66 in 2020, a decline of about 23.2%[194] Audit and Financial Reporting - The company has maintained a standard unqualified audit opinion from its accounting firm, Zhihong CPA[4] - The audit report confirmed that there were no material misstatements identified in the financial statements, ensuring reliability for stakeholders[185] - The company has implemented significant internal controls related to equity transfer transactions, ensuring compliance and accuracy in financial reporting[184]

Financial Performance - Net profit attributable to shareholders was CNY -160,295,308.79, representing a decrease of 205.31% year-on-year[3] - Operating revenue for the period was CNY 616,906,677.39, down 64.76% compared to the same period last year[3] - Operating income decreased by 1,133.64 million yuan compared to the same period last year, mainly due to the accelerated transformation of the industry cognitive solution business and significant impacts from the pandemic on delivery efficiency[17] - Operating costs decreased by 772.69 million yuan compared to the same period last year, primarily due to the reduction in operating income[18] - Total profit for the first three quarters of 2020 was a loss of approximately ¥164.84 million, compared to a profit of ¥142.44 million in the same period of 2019[37] - Net profit for Q3 2020 was a loss of approximately ¥11.64 million, compared to a profit of ¥42.55 million in Q3 2019, representing a significant decline[37] - The total comprehensive income for Q3 2020 was a loss of approximately ¥11.64 million, compared to a profit of ¥42.55 million in Q3 2019[38] - The company recorded a loss of -25,131,522.12 RMB in total profit for the first three quarters of 2020, compared to a loss of -34,312,846.55 RMB in the previous year[40] Cash Flow - The net cash flow from operating activities increased by 39.31% to CNY 400,437,373.80 year-to-date[3] - Net cash flow from operating activities increased by 112.99 million yuan compared to the same period last year, driven by improved management of accounts receivable and a focus on high-quality project selection[22] - Net cash flow from investing activities increased by 259.76 million yuan compared to the same period last year, mainly due to proceeds from asset sales and equity disposals[23] - Net cash flow from financing activities increased by 297.76 million yuan compared to the same period last year, as the company actively increased financing scale and cash reserves in a favorable financing environment[22] - The cash inflow from operating activities was 861,116,938.15 RMB for the first three quarters of 2020, down from 1,864,778,741.93 RMB in the same period of 2019, representing a decline of 53.8%[44] - The cash outflow from operating activities totaled 1,021,721,473.66 RMB in the first three quarters of 2020, compared to 1,353,280,133.81 RMB in the same period of 2019, a decrease of 24.5%[44] - The net cash flow from financing activities was 285,334,077.93 RMB in Q3 2020, a turnaround from -522,941,814.59 RMB in Q3 2019[45] Assets and Liabilities - Total assets at the end of the reporting period were CNY 7,153,292,637.52, a 0.16% increase compared to the end of the previous year[3] - Total liabilities amounted to CNY 3,309,295,208.16, an increase from CNY 3,144,750,990.53 year-over-year[29] - Total equity attributable to shareholders was CNY 3,790,953,436.15, a decrease from CNY 3,950,176,791.35[29] - Total assets reached CNY 5,105,132,299.94, up from CNY 4,513,113,041.53 compared to the previous year[33] - Current assets totaled CNY 1,560,194,566.35, significantly higher than CNY 966,869,445.12 in the same period last year[32] - Non-current assets were CNY 3,544,937,733.59, slightly down from CNY 3,546,243,596.41 year-over-year[32] - The company’s long-term assets totaled 2,963,783,705.51 RMB as of Q3 2020, remaining stable compared to the previous year[47] - Total liabilities amounted to CNY 3,144,750,990.53, with current liabilities at CNY 2,981,181,534.07 and non-current liabilities at CNY 163,569,456.46[48] Shareholder Information - The number of shareholders at the end of the reporting period was 13,367[5] - The company reported a total of CNY 929,813,949.47 in other payables, up from CNY 684,907,778.87[33] - The total owner's equity was CNY 3,843,997,429.36, down from CNY 3,997,268,630.48 year-over-year[29] Government Support and Investments - The company received government subsidies amounting to CNY 7,453,270.35 during the reporting period[4] - Long-term equity investments decreased by 44.56 million yuan compared to the beginning of the period, mainly due to the sale of equity in an associate company during the reporting period[13] - The company reported an investment loss of approximately ¥2.84 million in Q3 2020, compared to a profit of ¥6.62 million in Q3 2019[36] Operational Efficiency - Cash and cash equivalents increased by CNY 41,631.99 million, a 54.88% rise from the beginning of the period[10] - Accounts receivable decreased by CNY 109,194.31 million, a 49.38% reduction from the beginning of the period[11] - Long-term borrowings increased significantly by CNY 36,590.85 million, a 1,524.62% increase compared to the beginning of the period[9] - Prepayments decreased by 125.23 million yuan compared to the beginning of the period, primarily due to adjustments in contracts influenced by new revenue standards[14] - Other payables increased by 138.65 million yuan compared to the beginning of the period, mainly due to an increase in deposits, guarantees, and amounts collected on behalf of others[14] Research and Development - Research and development expenses for Q3 2020 were approximately ¥46.53 million, a decrease of 20.6% from ¥58.58 million in Q3 2019[36] Financial Ratios and Standards - The weighted average return on equity decreased by 7.91 percentage points to -4.14%[3] - The company has implemented new revenue and leasing standards effective from January 1, 2020, impacting financial reporting[52] - The total liabilities to equity ratio indicates a leverage position that may require monitoring for future financial health[48] - The company is focused on maintaining a strong balance sheet while exploring market expansion opportunities[52]

Financial Performance - The company's operating revenue for the first half of 2020 was approximately ¥368.28 million, a decrease of 66.63% compared to ¥1.10 billion in the same period last year[19]. - The net profit attributable to shareholders was a loss of approximately ¥141.68 million, representing a decline of 225.14% from a profit of ¥113.22 million in the previous year[19]. - The basic earnings per share for the first half of 2020 was -¥0.281, a decrease of 225.45% compared to ¥0.224 in the same period last year[20]. - The company's revenue for the first half of 2020 was ¥368,284,272.86, a decrease of 66.63% compared to the same period last year[42]. - The net profit attributable to shareholders for the same period was -¥141,682,548.13, representing a decline of 225.14% year-on-year[42]. - In Q2 2020, the company's revenue showed a significant rebound, with a quarter-on-quarter increase of 237.5%[43]. - The company reported a net loss of CNY 141,907,594.78 for the first half of 2020, compared to a net profit of CNY 102,504,457.49 in the same period of 2019, indicating a significant decline in performance[115]. - The total comprehensive income for the first half of 2020 was CNY 113,223,502.85, a decrease of CNY 10,719,045.36 compared to the previous period[131]. Cash Flow and Liquidity - The net cash flow from operating activities increased by 76.00% to approximately ¥165.97 million, compared to ¥94.30 million in the same period last year[19]. - The operating cash flow for the period improved significantly, reaching ¥165,966,233.44, an increase of 76.00% compared to the previous year[52]. - The company has intensified efforts to collect long-term accounts receivable, resulting in improved cash flow and reduced operational risks[47]. - The total cash outflow from operating activities in the first half of 2020 was CNY 540,448,678.04, down 67.8% from CNY 1,678,390,613.73 in the previous year[122]. - The net cash flow from financing activities was CNY 378,794,838.96 in the first half of 2020, up 155.5% from CNY 148,358,702.83 in the same period of 2019[122]. - The company's cash and cash equivalents increased by CNY 413,851,175.68 in the first half of 2020, compared to an increase of CNY 80,791,080.70 in the first half of 2019[122]. Assets and Liabilities - The total assets at the end of the reporting period were approximately ¥7.43 billion, an increase of 4.08% from ¥7.14 billion at the end of the previous year[19]. - The net assets attributable to shareholders decreased by 3.59% to approximately ¥3.81 billion from ¥3.95 billion at the end of the previous year[19]. - The company's total liabilities increased to RMB 3,181,804,915.06 from RMB 2,981,181,534.07, marking an increase of approximately 6.7%[108]. - The company's total equity decreased to CNY 3,855,155,913.65 from CNY 3,997,268,630.48, a decline of approximately 3.6%[112]. - The accounts receivable decreased significantly from RMB 2,211,415,620.15 to RMB 774,261,778.39, a reduction of approximately 65%[107]. Operational Challenges - The company faced delays in project progress due to the pandemic, impacting revenue recognition for several projects[21]. - The marine route business was also affected by the pandemic, with a temporary suspension in the first quarter and gradual recovery in the second quarter[21]. - Recent natural disasters in southern China, such as floods and typhoons, pose risks to the company's route operations and may affect tourist willingness to travel[67]. - The company is actively implementing risk control measures to ensure safety in operations amid natural disasters[67]. Strategic Initiatives - The company expects a rebound in revenue and net profit indicators in the second quarter due to effective pandemic control and improved management[21]. - The company has successfully implemented the Digital OS platform, which supports various applications in smart policing, community safety, and urban security[44]. - The company aims to enhance its competitive position by focusing on internal reforms and maintaining R&D investments despite cost-cutting measures[48]. - The company has committed to enhancing accounts receivable collection efforts and improving project selection and lifecycle management[66]. Research and Development - The company has increased its R&D expenses by 25.43% to ¥83,904,673.53, focusing on core technology innovation and product development[52]. - The intelligent algorithm platform supports real-time data processing and decision-making, creating a closed-loop business model[28]. - The company focuses on urban safety operations, leveraging a self-developed big data integration service platform and various core software products[25]. Shareholder Information - The company repurchased a total of 6,734,687 shares, accounting for 1.33% of the total share capital, with a maximum repurchase price of 22.36 CNY per share and an average price of 14.99 CNY per share[90]. - As of the end of the reporting period, the total number of ordinary shareholders was 15,552[91]. - The largest shareholder, Xin'ao Energy Supply Chain Co., Ltd., holds 176,841,072 shares, representing 35.05% of the total shares[94]. Compliance and Governance - The company appointed Grant Thornton as the auditor for the fiscal year 2020, approved during the board meeting on April 23, 2020, and ratified at the annual shareholders' meeting on May 20, 2020[75]. - The company guarantees the authenticity and completeness of restructuring documents and assumes legal responsibility for the information provided[73]. - The company has made long-term commitments to reduce related party transactions and avoid competition in the same industry[73].

Financial Performance - In 2019, the company achieved a net profit attributable to shareholders of 214,689,095.18 CNY, with a parent company net profit of 42,160,210.33 CNY after statutory surplus reserve allocation[9]. - The company's operating revenue for 2019 was CNY 3,227,973,598.50, representing a 6.48% increase compared to CNY 3,031,653,191.23 in 2018[27]. - The net profit attributable to shareholders decreased by 43.17% to CNY 214,689,095.18 from CNY 377,796,776.46 in the previous year[27]. - The basic earnings per share fell by 42.67% to CNY 0.43, down from CNY 0.75 in 2018[28]. - The total assets increased by 3.06% to CNY 7,142,019,621.01 at the end of 2019, compared to CNY 6,929,876,503.75 at the end of 2018[27]. - The cash flow from operating activities showed a significant improvement, with a net inflow of CNY 256,412,957.51 compared to a net outflow of CNY -641,149,209.79 in 2018[27]. - The weighted average return on net assets decreased by 4.61 percentage points to 5.28% from 9.89% in the previous year[28]. - The company reported a total annual revenue of CNY 2,830,000,000, marking a year-on-year growth of 25%[35]. - The net profit attributable to shareholders for the entire year 2019 was CNY 214,188,000, which is a 15% increase compared to 2018[31]. Shareholder Actions - The company repurchased 6,570,987 shares in 2019, totaling 98,950,778.69 CNY, which accounted for 46.09% of the net profit attributable to shareholders[9]. - The company will not distribute cash dividends for 2019, opting instead to strengthen market risk response capabilities and ensure sustainable development[9]. - The company reported a cash dividend of 0.32852 RMB per share, totaling 113,663,714.62 RMB, which accounts for 30.09% of the net profit attributable to the listed company[111]. - The company has repurchased 6,570,987 shares for a total amount of 98,950,778.69 RMB, which is treated as a cash dividend[115]. Strategic Focus and Market Expansion - The company plans to focus on urban public safety operations, marking 2019 as the inaugural year for this strategic direction[3]. - The company has initiated business layouts in cities such as Chongqing, Chengdu, and Yancheng, indicating a strategic market expansion[4]. - The company anticipates a surge in urban public safety demand post-pandemic, preparing to extend its services to communities and households[6]. - The company aims to expand its market presence by optimizing its business model and focusing on urban safety as a primary growth area[36]. - The company is expanding its market presence to second and third-tier cities while enhancing product functionality and application scenarios in emergency and public health sectors[54]. Technological Development - A new gas digital supervision platform was developed in Hebei, integrating digital capabilities into gas safety management[4]. - The company has established a big data fusion service platform (Digital OS) to enhance collaboration across business entities while protecting data sovereignty[4]. - The Digital OS platform combines cloud computing, big data, and AI technologies, facilitating multi-source heterogeneous data integration and providing data empowerment for various business scenarios[38]. - The company has integrated AI intelligence platforms and data modeling products to create an intelligent algorithm platform, enabling real-time data processing and decision-making support[38]. - The company is committed to continuous technological innovation, investing in R&D and developing the Digital OS platform to address data integration challenges[47]. Operational Efficiency and Cost Management - The company is actively controlling the scale of projects with long payment cycles and increasing efforts to recover historical accounts receivable[61]. - The company intends to accelerate cash collection and implement cost reduction measures to enhance operational efficiency amid challenges posed by the COVID-19 pandemic[102]. - The company is shifting its focus towards urban safety smart operation projects driven by proprietary software products, adjusting its traditional integration business[28]. - The company focuses on enhancing project initiation standards in its industry cognitive solutions business, emphasizing cash flow and reducing reliance on long repayment cycles[28]. Risk Management - The company faces risks from an unstable macroeconomic environment and intensified market competition, which may impact its operations and demand for services[103][104]. - The company faces risks related to accounts receivable due to long procurement and payment approval cycles from government clients, which could lead to potential bad debt losses[106]. - The company emphasizes safety production and risk control measures to mitigate operational risks from natural disasters affecting maritime operations[108]. Governance and Compliance - The company has established a comprehensive governance structure that complies with relevant laws and regulations, ensuring effective decision-making and operational coordination[191]. - The board of directors consists of nine members, including three independent directors, ensuring compliance with governance standards[192]. - The company has committed to timely and accurate information disclosure, fulfilling its obligations under regulatory requirements[193]. - The independent directors have played a significant role in overseeing major decisions and ensuring the protection of shareholder interests[193]. Research and Development - The company invested 26,737.15 million yuan in R&D during the reporting period, focusing on building industry barriers and enhancing competitive position[57]. - The company maintained a continuous increase in R&D investment, focusing on self-developed product development and actively introducing R&D teams to enhance product performance and meet industry demand changes[105]. - Research and development expenses totaled 16,471.23 million RMB, down 15.52% from the previous year, indicating a focus on cost control[72]. Employee and Talent Development - The company has established a comprehensive training program for employees, emphasizing talent development and creating a supportive work environment[140]. - The company recruited 38 fresh graduates in 2019 and provided targeted training to enhance their transition into the workplace[188]. - The company’s remuneration adjustment mechanism is linked to annual performance and market benchmarking, ensuring fairness and competitiveness[184]. Community Engagement and Social Responsibility - The company has actively participated in social responsibility initiatives, contributing a total of 1,022,900 RMB to support local infrastructure and education[138]. - The company has adhered to legal compliance and actively contributed to local economic development through job creation and tax contributions[137].

新智认知 2020 年第一季度报告 公司代码：603869 公司简称：新智认知 新智认知数字科技股份有限公司 2020 年第一季度报告 新智认知 2020 年第一季度报告 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 | 7,269,945,632.83 | 7,142,019,621.01 | 1.79 | | 归属于上市公司股东的 净资产 | 3,845,667,124.49 | 3,950,176,791.35 | -2.65 | | | 年初至报告期末 | 上年初至上年报告期末 | 比上年同期增减(%) | | 经营活动产生的现金 流量净额 | -65,472,826.91 | 69,631,276.53 | -194.03 | | | 年初至报告期末 | | 上年初至上年报告期末 比上年同期增减（%） | | 营业收入 | 84,177,510.76 | 512,962,254.52 | -83.59 | | 归属于上市公司股 ...

[Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) This chapter presents the assurance statement from the company's board, supervisory board, and senior management regarding the quarterly report's integrity, confirming it is unaudited - The company's board of directors, supervisory board, and their members, along with senior management, guarantee the truthfulness, accuracy, and completeness of the quarterly report, assuming individual and joint legal responsibility for any misstatements or omissions[6](index=6&type=chunk) - All directors attended the board meeting to review the quarterly report[6](index=6&type=chunk) - This first quarter report is unaudited[6](index=6&type=chunk) [Company Profile](index=3&type=section&id=Item%20II.%20Company%20Profile) This chapter outlines the company's key financial data and shareholder holdings for Q1 2020, reflecting operational challenges and shareholder structure amidst the pandemic [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) In Q1 2020, total assets slightly increased, but net assets attributable to shareholders decreased; revenue and net profit attributable to shareholders significantly declined, and net cash flow from operating activities turned negative due to the pandemic Key Financial Data for Q1 2020 | Indicator | Current Period-End/Year-to-Date (RMB) | Prior Year-End/Year-to-Date (RMB) | Change (%) / Percentage Point Change | Semantic Type | | :--- | :--- | :--- | :--- | :--- | | **Balance Sheet:** | | | | | | Total Assets | 7,269,945,632.83 | 7,142,019,621.01 | 1.79 | Financial | | Net Assets Attributable to Shareholders | 3,845,667,124.49 | 3,950,176,791.35 | -2.65 | Financial | | **Income Statement:** | | | | | | Operating Revenue | 84,177,510.76 | 512,962,254.52 | -83.59 | Financial | | Net Profit Attributable to Shareholders | -120,783,110.33 | 28,019,950.74 | -531.06 | Financial | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) | -125,728,031.68 | 28,426,985.28 | -542.28 | Financial | | Weighted Average Return on Net Assets (%) | -3.11 | 0.71 | Decrease 3.82 percentage points | Financial | | Basic Earnings Per Share (RMB/share) | -0.24 | 0.08 | -400.00 | Financial | | Diluted Earnings Per Share (RMB/share) | -0.24 | 0.08 | -400.00 | Financial | | **Cash Flow Statement:** | | | | | | Net Cash Flow from Operating Activities | -65,472,826.91 | 69,631,276.53 | -194.03 | Financial | Non-Recurring Gains and Losses for Q1 2020 | Item | Current Period Amount (RMB) | | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | -2,414.07 | | Government Grants Recognized in Current Profit/Loss | 9,007,781.23 | | Other Non-Operating Income and Expenses | -958,485.74 | | Impact on Minority Interests (After Tax) | -1,500,193.42 | | Income Tax Impact | -1,601,766.66 | | Total | 4,944,921.34 | [Shareholder Holdings](index=4&type=section&id=2.2%20Shareholder%20Holdings%20at%20Period-End) As of the reporting period, the company had 17,636 shareholders; ENN Energy Supply Chain Co., Ltd. was the largest shareholder with 35.05% equity, largely pledged, and several major shareholders are related and controlled by Mr. Wang Yushuo - Total number of shareholders: **17,636**[9](index=9&type=chunk) Top Ten Shareholder Holdings | Shareholder Name | Shares Held at Period-End (shares) | Percentage (%) | Pledged or Frozen Shares (shares) | Shareholder Type | | :--- | :--- | :--- | :--- | :--- | | ENN Energy Supply Chain Co., Ltd. | 176,841,072 | 35.05 | 100,167,770 (Pledged) | Domestic Non-State-Owned Legal Person | | Zhang Tao | 51,519,863 | 10.21 | 51,424,125 (Pledged) | Domestic Natural Person | | Beijing Yienrui Investment Center (Limited Partnership) | 31,041,252 | 6.15 | 0 (None) | Domestic Non-State-Owned Legal Person | | Suqian Xinyidehui Investment Management Center (Limited Partnership) | 21,760,879 | 4.31 | 21,760,879 (Pledged) | Domestic Non-State-Owned Legal Person | | ENN Capital Management Co., Ltd. | 18,666,443 | 3.70 | 0 (None) | Domestic Non-State-Owned Legal Person | | ENN Holdings Investment Co., Ltd. | 14,507,253 | 2.88 | 14,507,200 (Pledged) | Domestic Non-State-Owned Legal Person | | Yang Ying | 8,044,911 | 1.59 | 0 (None) | Domestic Natural Person | | Shanghai Fosun Chuangfu Equity Investment Fund Partnership (Limited Partnership) | 6,885,404 | 1.36 | 0 (None) | Domestic Non-State-Owned Legal Person | | New Intelligent Cognition Digital Technology Co., Ltd. Share Repurchase Special Securities Account | 6,734,687 | 1.33 | 0 (None) | Domestic Non-State-Owned Legal Person | | Yang Zhicheng | 5,249,909 | 1.04 | 0 (None) | Domestic Natural Person | - ENN Energy Supply Chain Co., Ltd., Beijing Yienrui Investment Center (Limited Partnership), Suqian Xinyidehui Investment Management Center (Limited Partnership), ENN Capital Management Co., Ltd., and ENN Holdings Investment Co., Ltd. are all controlled by the company's actual controller, Mr. Wang Yushuo[10](index=10&type=chunk) [Preferred Shareholder Holdings](index=6&type=section&id=2.3%20Preferred%20Shareholder%20Holdings%20at%20Period-End) As of the reporting period, the company had no preferred shareholders - Not applicable, the company has no preferred shareholders[11](index=11&type=chunk) [Significant Events](index=6&type=section&id=Item%20III.%20Significant%20Events) This chapter details significant changes in key financial statement items and indicators, their causes, and the completion of the share repurchase plan during the reporting period [Changes in Key Financial Statement Items and Indicators and Their Reasons](index=6&type=section&id=3.1%20Changes%20in%20Key%20Financial%20Statement%20Items%20and%20Indicators%20and%20Their%20Reasons) Company financial metrics saw significant Q1 2020 changes due to accounting policy adjustments and COVID-19; accounts receivable and contract assets shifted, long-term borrowings increased, while revenue, costs, and operating cash flow decreased due to business disruptions Changes in Key Financial Statement Items | Item | Period-End Balance (RMB 10,000) | Period-Beginning Balance (RMB 10,000) | Change Rate (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable | 4,788.46 | 22,114.16 | -78.35 | Accounting policy adjustment, part of the balance adjusted to contract assets[11](index=11&type=chunk) | | Receivables Financing | 175.48 | 51.42 | 241.29 | Increase in bank acceptance bills received from project collections[12](index=12&type=chunk) | | Notes Payable | 4,817.48 | 3,036.66 | 58.64 | Optimized procurement payment methods[13](index=13&type=chunk) | | Advances from Customers | 186.11 | 1,335.35 | -86.06 | Accounting policy adjustment, part of the balance adjusted to other accounts[14](index=14&type=chunk) | | Other Current Liabilities | 95.72 | 248.35 | -61.46 | Decrease in input VAT to be carried forward[15](index=15&type=chunk) | | Long-Term Borrowings | 1,512.09 | 240.00 | 530.04 | New long-term financing[16](index=16&type=chunk) | | Special Reserves | 29.07 | 17.98 | 61.68 | Accrual of safety reserve fund according to national regulations[17](index=17&type=chunk) | Changes in Key Financial Indicators | Item | Current Period Amount (RMB 10,000) | Prior Year Same Period (RMB 10,000) | Change Rate (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 8,417.75 | 51,296.23 | -83.59 | Due to the pandemic, industry cognitive solution projects were delayed, and marine route businesses were suspended[11](index=11&type=chunk) | | Operating Cost | 9,076.45 | 33,692.94 | -73.06 | Operating revenue decreased due to the pandemic[17](index=17&type=chunk) | | Taxes and Surcharges | 116.79 | 493.47 | -76.33 | Operating revenue decreased due to the pandemic[18](index=18&type=chunk) | | Selling Expenses | 1,621.53 | 3,167.58 | -48.81 | Company implemented cost reduction and efficiency improvement initiatives[19](index=19&type=chunk) | | Research and Development Expenses | 4,324.46 | 2,915.67 | 48.32 | Continuous investment in R&D projects[20](index=20&type=chunk) | | Other Income | 900.82 | 68.33 | 1,218.41 | Increase in government grants obtained[21](index=21&type=chunk) | | Investment Income | -164.78 | -20.26 | 713.20 | Net profit of associate companies decreased due to the pandemic[22](index=22&type=chunk) | | Net Cash Flow from Operating Activities | -6,547.28 | 6,963.13 | -194.03 | Reduced collections in the current period due to the pandemic[17](index=17&type=chunk) | | Net Cash Flow from Investing Activities | -6,409.75 | -10,941.13 | -41.42 | Reduced investment payments for infrastructure projects[17](index=17&type=chunk) | | Net Cash Flow from Financing Activities | 29,109.33 | 8,825.03 | 229.85 | Proactively increased capital reserves to reasonably address pandemic risks[17](index=17&type=chunk) | [Progress of Significant Events](index=7&type=section&id=3.2%20Progress%20of%20Significant%20Events) The company completed its share repurchase program on January 15, 2020, repurchasing 6,734,687 shares, representing 1.33% of total share capital, for over RMB 100 million - The company completed its share repurchase program on **January 15, 2020**[23](index=23&type=chunk) Share Repurchase Details | Indicator | Value | | :--- | :--- | | Total Shares Repurchased | 6,734,687 shares | | Percentage of Total Share Capital | 1.33% | | Highest Repurchase Price | 22.36 RMB/share | | Lowest Repurchase Price | 11.05 RMB/share | | Average Repurchase Price | 14.99 RMB/share | | Total Funds Used (Excluding Transaction Fees) | 100,950,438.19 RMB | [Overdue Unfulfilled Commitments](index=7&type=section&id=3.3%20Overdue%20Unfulfilled%20Commitments) During the reporting period, the company had no overdue unfulfilled commitments - Not applicable, there were no overdue unfulfilled commitments during the reporting period[24](index=24&type=chunk) [Warning of Significant Changes in Cumulative Net Profit](index=8&type=section&id=3.4%20Warning%20of%20Significant%20Changes%20in%20Cumulative%20Net%20Profit) The company has not issued any warning regarding potential losses or significant changes in cumulative net profit from the beginning of the year to the end of the next reporting period - Not applicable, the company has not issued such a warning[25](index=25&type=chunk) [Appendix](index=8&type=section&id=Item%20IV.%20Appendix) The appendix provides the company's Q1 2020 consolidated and parent company financial statements, detailing adjustments made to the opening financial statements due to the first-time adoption of new revenue and lease standards [Financial Statements](index=8&type=section&id=4.1%20Financial%20Statements) This section includes the unaudited consolidated and parent company balance sheets, income statements, and cash flow statements for New Intelligent Cognition Digital Technology Co., Ltd. for Q1 2020 [Consolidated Balance Sheet](index=8&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2020, consolidated total assets were RMB 7.27 billion, a 1.79% increase from year-end, with significant shifts in accounts receivable and contract assets due to new revenue standards, and increased long-term borrowings Consolidated Balance Sheet Key Items (March 31, 2020 vs December 31, 2019) | Item | March 31, 2020 (RMB) | December 31, 2019 (RMB) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 919,955,733.56 | 758,536,964.01 | | Accounts Receivable | 478,845,600.42 | 2,211,415,620.15 | | Contract Assets | 1,648,047,364.31 | - | | Total Current Assets | 4,322,404,353.98 | 4,178,235,915.50 | | Total Non-Current Assets | 2,947,541,278.85 | 2,963,783,705.51 | | Total Assets | 7,269,945,632.83 | 7,142,019,621.01 | | Short-Term Borrowings | 1,492,998,808.26 | 1,391,195,275.58 | | Notes Payable | 481,748,401.82 | 303,665,811.88 | | Advances from Customers | 18,611,127.66 | 133,535,086.53 | | Contract Liabilities | 109,584,804.61 | - | | Total Current Liabilities | 3,112,566,689.19 | 2,981,181,534.07 | | Long-Term Borrowings | 151,209,161.91 | 24,000,000.00 | | Total Liabilities | 3,381,536,476.09 | 3,144,750,990.53 | | Total Equity Attributable to Parent Company Shareholders | 3,845,667,124.49 | 3,950,176,791.35 | | Total Equity | 3,888,409,156.74 | 3,997,268,630.48 | [Parent Company Balance Sheet](index=11&type=section&id=Parent%20Company%20Balance%20Sheet) As of March 31, 2020, parent company total assets were RMB 4.56 billion, a slight increase from year-end, with decreases in cash and accounts receivable, and a significant increase in other receivables Parent Company Balance Sheet Key Items (March 31, 2020 vs December 31, 2019) | Item | March 31, 2020 (RMB) | December 31, 2019 (RMB) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 52,793,198.16 | 117,948,370.47 | | Accounts Receivable | 32,023,450.49 | 70,928,009.40 | | Other Receivables | 923,085,754.66 | 706,844,494.46 | | Total Assets | 4,556,023,007.56 | 4,513,113,041.53 | | Short-Term Borrowings | 200,257,701.40 | 290,540,060.99 | | Other Payables | 857,689,541.61 | 684,907,778.87 | | Total Liabilities | 1,147,373,717.73 | 1,095,396,773.07 | | Total Equity | 3,408,649,289.83 | 3,417,716,268.46 | [Consolidated Income Statement](index=13&type=section&id=Consolidated%20Income%20Statement) In Q1 2020, consolidated operating revenue significantly decreased by 83.59% year-over-year, resulting in a shift from profit to loss for operating profit and net profit, with net profit attributable to parent company shareholders at -RMB 121 million and basic EPS at -RMB 0.24/share Consolidated Income Statement Key Items (Q1 2020 vs Q1 2019) | Item | Q1 2020 (RMB) | Q1 2019 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 84,177,510.76 | 512,962,254.52 | | Total Operating Cost | 220,660,979.46 | 477,025,534.47 | | Operating Profit | -131,876,636.27 | 24,853,165.50 | | Total Profit | -131,992,812.76 | 24,023,646.23 | | Net Profit | -125,132,917.21 | 20,779,441.71 | | Net Profit Attributable to Parent Company Shareholders | -120,783,110.33 | 28,019,950.74 | | Basic Earnings Per Share (RMB/share) | -0.24 | 0.08 | | Diluted Earnings Per Share (RMB/share) | -0.24 | 0.08 | [Parent Company Income Statement](index=15&type=section&id=Parent%20Company%20Income%20Statement) In Q1 2020, parent company operating revenue was zero, with a net loss of -RMB 7.07 million, a narrower loss compared to -RMB 21.84 million in the prior year Parent Company Income Statement Key Items (Q1 2020 vs Q1 2019) | Item | Q1 2020 (RMB) | Q1 2019 (RMB) | | :--- | :--- | :--- | | Operating Revenue | - | 280,660.38 | | Financial Expenses | 2,153,330.96 | 13,835,134.30 | | Operating Profit | -7,067,319.13 | -21,266,120.63 | | Net Profit | -7,067,319.13 | -21,839,181.63 | [Consolidated Cash Flow Statement](index=16&type=section&id=Consolidated%20Cash%20Flow%20Statement) In Q1 2020, consolidated net cash flow from operating activities was -RMB 65.47 million, a 194.03% year-over-year decrease; net cash flow from investing activities was -RMB 64.10 million, while net cash flow from financing activities significantly increased to RMB 291.09 million due to new financing for pandemic risk mitigation Consolidated Cash Flow Statement Key Items (Q1 2020 vs Q1 2019) | Item | Q1 2020 (RMB) | Q1 2019 (RMB) | | :--- | :--- | :--- | | Subtotal of Cash Inflows from Operating Activities | 230,838,057.48 | 1,076,937,203.62 | | Subtotal of Cash Outflows from Operating Activities | 296,310,884.39 | 1,007,305,927.09 | | Net Cash Flow from Operating Activities | -65,472,826.91 | 69,631,276.53 | | Net Cash Flow from Investing Activities | -64,097,486.52 | -109,411,331.18 | | Net Cash Flow from Financing Activities | 291,093,259.07 | 88,250,330.96 | | Net Increase in Cash and Cash Equivalents | 161,518,396.71 | 48,470,276.31 | | Cash and Cash Equivalents at Period-End | 916,153,476.78 | 918,875,111.66 | [Parent Company Cash Flow Statement](index=18&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In Q1 2020, parent company net cash flow from operating activities was -RMB 91.77 million, from investing activities was -RMB 15,000, and from financing activities was -RMB 123.37 million Parent Company Cash Flow Statement Key Items (Q1 2020 vs Q1 2019) | Item | Q1 2020 (RMB) | Q1 2019 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -91,765,222.22 | -314,661,736.71 | | Net Cash Flow from Investing Activities | -14,992.00 | - | | Net Cash Flow from Financing Activities | -123,374,958.09 | 90,285,614.07 | | Cash and Cash Equivalents at Period-End | 52,793,198.16 | 132,745,769.12 | [Adjustments for New Accounting Standards](index=19&type=section&id=4.2%20Adjustments%20for%20New%20Accounting%20Standards) This section presents adjustments made to the consolidated and parent company balance sheets as of January 1, 2020, due to the first-time adoption of new revenue and lease standards [Consolidated Balance Sheet Adjustments](index=19&type=section&id=Consolidated%20Balance%20Sheet%20Adjustments) At the consolidated level, the new revenue standard led to a RMB 1.72 billion decrease in accounts receivable and a corresponding increase in contract assets, along with a RMB 100 million decrease in advances from customers and an increase in contract liabilities, reflecting changes in revenue recognition Consolidated Balance Sheet Adjustment Items (January 1, 2020) | Item | December 31, 2019 (RMB) | Adjustment Amount (RMB) | January 1, 2020 (RMB) | | :--- | :--- | :--- | :--- | | Accounts Receivable | 2,211,415,620.15 | -1,718,770,732.48 | 492,644,887.67 | | Contract Assets | - | 1,718,770,732.48 | 1,718,770,732.48 | | Advances from Customers | 133,535,086.53 | -100,316,268.66 | 33,218,817.87 | | Contract Liabilities | - | 100,316,268.66 | 100,316,268.66 | [Parent Company Balance Sheet Adjustments](index=22&type=section&id=Parent%20Company%20Balance%20Sheet%20Adjustments) The parent company balance sheet was not adjusted as of January 1, 2020, due to the first-time adoption of new revenue and lease standards - No adjustments were made to the parent company balance sheet[51](index=51&type=chunk) [Explanation of Retrospective Adjustments for New Accounting Standards](index=24&type=section&id=4.3%20Explanation%20of%20Retrospective%20Adjustments%20for%20New%20Accounting%20Standards) The company adopted new revenue standards from January 1, 2020, adjusting retained earnings and other financial statement items for the cumulative impact, but did not retrospectively adjust comparative period information - The company adopted 'Accounting Standard for Business Enterprises No. 14 – Revenue' effective **January 1, 2020**[51](index=51&type=chunk) - Enterprises adopting new revenue standards for the first time should adjust retained earnings and other related financial statement items at the beginning of the year of first adoption based on the cumulative impact[51](index=51&type=chunk) - Comparative period information is not retrospectively adjusted[51](index=51&type=chunk) [Audit Report](index=25&type=section&id=4.4%20Audit%20Report) This quarterly report is unaudited - Not applicable, this quarterly report is unaudited[52](index=52&type=chunk)

新智认知数字科技股份有限公司 2019 年第三季度报告 公司代码：603869 公司简称：新智认知 新智认知数字科技股份有限公司 2019 年第三季度报告 1 / 28 | 一、 | 重要提示 | 3 | | --- | --- | --- | | 二、 | 公司基本情况 | 3 | | 三、 | 重要事项 | 6 | | 四、 | 附录 | 10 | 新智认知数字科技股份有限公司 2019 年第三季度报告 一、 重要提示 1.1 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 1.2 公司全体董事出席董事会审议季度报告。 1.3 公司负责人王子峥、主管会计工作负责人张炎锋及会计机构负责人（会计主管人员）陈超保 证季度报告中财务报表的真实、准确、完整。 1.4 本公司第三季度报告未经审计。 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 | 6,682 ...

Financial Performance - The company's operating revenue for the first half of 2019 was approximately ¥1.10 billion, a decrease of 7.85% compared to ¥1.20 billion in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2019 was approximately ¥113.22 million, down 16.14% from ¥135.01 million in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥75.32 million, a decline of 32.85% compared to ¥112.17 million in the same period last year[18]. - Basic earnings per share for the first half of 2019 were ¥0.327, down 15.50% from ¥0.387 in the same period last year[20]. - The weighted average return on net assets was 2.821%, a decrease of 0.8 percentage points compared to 3.62% in the previous year[20]. - The company reported a net profit attributable to shareholders for the reporting period was CNY 113.22 million, a decrease of 16.14% year-on-year[42]. - Revenue from industry cognitive solutions was CNY 782 million, down 6% year-on-year, with a gross margin decline of 8 percentage points compared to the previous year[42]. - The company reported a total profit for the first half of 2019 was CNY 121,100,471.56, a decrease of 21.96% from CNY 155,183,491.47 year-on-year[114]. - The company incurred a tax expense of CNY 18,596,014.07, down from CNY 36,233,955.92 in the previous year[114]. - The company experienced a significant increase in financial expenses, which rose to CNY 60,131,873.84 from CNY 36,980,643.04, marking a 62.83% increase[113]. Cash Flow and Investments - The net cash flow from operating activities was approximately ¥94.30 million, a significant improvement from a negative cash flow of ¥309.45 million in the previous year[18]. - The company reported a net cash flow from operating activities for the first half of 2019 was ¥94,301,155.97, compared to a negative cash flow of ¥309,446,551.00 in the same period of 2018, indicating a significant improvement[121]. - The net cash flow from investing activities was negative at ¥161,868,778.10, worsening from a negative cash flow of ¥123,257,289.93 in the first half of 2018[122]. - Cash inflow from financing activities increased to ¥757,555,556.00, compared to ¥405,100,000.00 in the same period of 2018, marking an increase of approximately 87%[122]. - The ending balance of cash and cash equivalents as of June 30, 2019, was ¥951,195,916.05, compared to ¥639,110,534.14 at the end of June 2018, representing an increase of approximately 48.8%[122]. Assets and Liabilities - The total assets at the end of the reporting period were approximately ¥7.12 billion, an increase of 2.71% from ¥6.93 billion at the end of the previous year[18]. - The total liabilities increased to CNY 3,098,293,422.95 from CNY 2,927,991,238.14, reflecting a growth of approximately 5.8%[110]. - The company's cash and cash equivalents decreased to CNY 152,119,833.21 from CNY 357,121,891.76, representing a decline of approximately 57.5%[110]. - The total equity attributable to shareholders increased to CNY 3,492,750,989.84 from CNY 3,588,079,136.31, showing a decrease of approximately 2.7%[111]. - The total liabilities at the end of the reporting period were CNY 3,795,364,343.62, indicating a stable financial position[135]. Research and Development - The company invested CNY 97.52 million in R&D during the first half of 2019, representing a 45.84% increase year-on-year[39]. - Research and development expenses increased to CNY 66,893,967.30, up 39.93% from CNY 47,791,335.28 year-on-year[113]. - The company is increasing its R&D investment and attracting high-end talent to prepare for technological iterations and market dynamics[63]. Business Strategy and Market Position - The company is focused on digital solutions in sectors such as digital policing, digital cities, and digital enterprises, leveraging big data and AI technologies[25]. - The digital policing sector has seen a shift towards intelligent and integrated command systems, enhancing operational efficiency and service responsiveness[26]. - The company aims to deepen its operational model by transitioning from traditional IT services to operational technology services, fostering closer client relationships[25]. - The company is expanding its marine route business, focusing on three core routes, enhancing customer experience through high-end services and innovative product designs[34]. - The security industry is entering a growth phase, driven by government policies promoting public safety initiatives, which will benefit the company's offerings[35]. Risks and Challenges - The company faces risks related to market environment changes, particularly if industry demand growth slows, which could elevate development growth risks[63]. - There is a significant risk of technological innovation, as rapid advancements in AI, big data, cloud computing, and edge computing require the company to continuously track and adapt to new technologies[63]. - Accounts receivable risk is present due to long settlement cycles and potential financial difficulties of clients, but the company has established provisions for bad debts and is actively managing historical receivables[63]. Shareholder Information - The total share capital of the company is 504,500,508 shares after the completion of profit distribution and capital reserve transfer on July 12, 2019[90]. - The top ten shareholders hold a total of 221,000,000 shares, representing 63.12% of the total share capital[97]. - The company has a total of 39,785,905 restricted shares, with 14,773,399 shares released during the reporting period[92]. - The company has repurchased a total of 4,331,287 shares, accounting for 0.86% of the total share capital, with a total payment of ¥72,505,178.44[90]. Compliance and Governance - The company has no major litigation or arbitration matters during the reporting period, indicating a stable legal environment[72]. - The company continues to employ the same auditing firm, Grant Thornton, for the 2019 fiscal year, ensuring consistency in financial reporting[72]. - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance of China[148].