Financial Performance - The company reported no cash dividends for the fiscal year 2021, with no capital reserve conversion to share capital or bonus shares proposed[8]. - The company has not achieved profitability since its listing, indicating ongoing investment in growth and development[5]. - The company's operating revenue for 2021 was ¥179,153,578.49, representing a year-on-year increase of 33.55% compared to ¥134,147,621.51 in 2020[28]. - The net profit attributable to shareholders for 2021 was -¥37,136,215.33, a decrease of 225.93% from a profit of ¥29,488,555.46 in 2020[28]. - The net cash flow from operating activities for 2021 was -¥64,107,297.05, a significant decline of 337.03% compared to ¥27,046,444.74 in 2020[28]. - The company's total assets at the end of 2021 were ¥1,976,262,053.48, an increase of 2.66% from ¥1,924,965,260.18 at the end of 2020[28]. - The basic earnings per share for 2021 was -¥0.46, a decrease of 206.98% from ¥0.43 in 2020[31]. - The weighted average return on net assets for 2021 was -2.25%, down from 2.32% in 2020[31]. - The decline in net profit was attributed to changes in product sales structure, increased share-based payment expenses, and lower government subsidies[31]. - The company achieved total revenue of 31,539.60 million RMB, with a net profit of 14,994.69 million RMB, indicating strong financial performance[128]. Research and Development - The R&D expenditure as a percentage of operating revenue increased to 50.81% in 2021, up by 5.42 percentage points from 45.39% in 2020[31]. - Research and development expenses for the year amounted to 91.02 million RMB, a year-on-year increase of 49.47%, representing 50.81% of operating revenue[42]. - The company achieved a total R&D investment of approximately ¥91.02 million in 2021, representing a significant increase of 49.47% compared to the previous year[117]. - The proportion of R&D investment to operating income rose to 50.81% in 2021, up from 45.39% in the previous year, indicating a strong commitment to innovation[117]. - The company holds 292 authorized patents domestically and internationally, making it the largest patent holder in the global quantum communication field according to the Quantum Security Technology White Paper (2021)[98]. - The company obtained 37 invention patents, 15 utility model patents, and 10 design patents during the reporting period, contributing to a total of 573 intellectual property rights held[111]. - The company has established partnerships with research institutes and enterprises to enhance its core technology capabilities and ensure effective supply of critical components[135]. Market and Industry Trends - The quantum secure communication market is projected to grow from approximately ¥122.79 billion in 2020 to about ¥1.227 trillion by 2035, indicating significant market potential[89]. - The NISQ quantum computing market demand is expected to reach between £20 billion and £35 billion by 2027, equivalent to approximately ¥180 billion to ¥315 billion[90]. - The global quantum computing market impact is predicted to exceed £35 billion by 2050, highlighting its long-term economic significance[90]. - The quantum secure communication technology has achieved a high level of maturity, with successful integration into sectors such as big data services, government information protection, and financial encryption[82]. - The integration of quantum secure communication with ICT and information security industries has been recognized as a natural advantage, enhancing its application prospects[89]. - The quantum information industry is rapidly developing, with significant investments from both domestic and international players, indicating a growing market[77]. Corporate Governance and Risk Management - The board of directors was fully present during the board meeting, ensuring governance and decision-making integrity[6]. - There are no special arrangements in corporate governance that would affect the company's operations[12]. - The company faces various operational risks, which are detailed in the report's risk factors section[5]. - The company has not engaged in any non-operational fund occupation by controlling shareholders or related parties[10]. - The company faces risks related to market demand fluctuations for quantum communication products due to uncertainties in project timelines and the impact of the pandemic[138]. - The company faces risks related to the loss of core technical personnel, which could impact its innovation capabilities[140]. - The company is currently dependent on government policies for the development of quantum communication networks, which may affect future operations[144]. - The company has implemented measures to mitigate risks from being placed on the U.S. Entity List, including domestic production of core components[145]. Strategic Initiatives and Future Plans - The company has a comprehensive plan for future development and strategic initiatives, although specific commitments are not guaranteed[9]. - The company plans to continue expanding its market presence in quantum computing instruments, which contributed to the revenue growth[31]. - Future plans include enhancing adaptability to various application scenarios and developing key technologies for free-space quantum secure communication and new quantum secure communication protocols[102]. - The company aims to establish a complete standard system for quantum secure communication networking, operation, application, and certification, promoting technology towards application and market[102]. - The company aims to lead the quantum technology industry by promoting the large-scale industrialization of quantum information technology and developing quantum computing and measurement technologies[187]. - The company plans to maintain its leading position in quantum secure communication technology while expanding applications in the quantum security industry[187]. - The company will enhance its role as an innovation leader, focusing on key core technologies in quantum secure communication, and will promote the construction of quantum secure communication backbone networks and metropolitan area networks[188]. - The company is committed to improving ESG management and information disclosure to achieve high-quality development and enhance shareholder value[195]. Product Development and Innovations - The company is focused on quantum technology advancements, including quantum computing and secure communication solutions[20]. - The company successfully developed the "1U" compact polarization encoding QKD product, which is the first of its kind globally, and has received a testing report from the National Cryptography Administration[49]. - The company launched the "Quantum Security Service Platform," capable of managing keys for millions of users, applicable in various scenarios including communication and industrial internet[50]. - The company completed the development of a 24-qubit room-temperature superconducting quantum computing control system, which was listed as a major technological equipment in Anhui Province[51]. - The company has developed a quantum encryption smart wristband, with a total investment of $420 million, and $56.91 million invested in the current period, targeting sectors such as judicial and healthcare[120]. - The company has upgraded its superconducting quantum computing room temperature control system and is extending its product line to include components related to the quantum computing industry chain[100]. - The company is actively involved in the development of quantum secure communication networks to counteract computational attacks, with significant recognition for its solutions[101].

Financial Performance - The company's operating revenue for the third quarter was ¥19,852,083.83, representing a year-on-year increase of 94.51%[7] - The net profit attributable to shareholders of the listed company was -¥25,308,711.88, with a year-to-date net profit of -¥44,300,587.52[7] - Total operating revenue for the first three quarters of 2021 reached ¥44,015,838.90, a significant increase from ¥26,267,214.92 in the same period of 2020, representing a growth of approximately 67.3%[24] - Net profit for the first three quarters of 2021 was a loss of ¥44,381,038.42, worsening from a loss of ¥23,025,951.75 in the same period of 2020[25] - Basic and diluted earnings per share for the first three quarters of 2021 were both -¥0.55, compared to -¥0.35 in the same period of 2020[26] Research and Development - Research and development expenses totaled ¥18,040,991.26 for the quarter, accounting for 90.88% of operating revenue, a decrease of 70.77 percentage points compared to the previous year[8] - The total R&D investment for the year-to-date was ¥50,303,786.01, reflecting a growth of 6.51% compared to the previous year[8] - Research and development expenses for the first three quarters of 2021 amounted to ¥38,555,549.58, up from ¥34,947,430.18 in 2020, indicating an increase of about 10.5%[24] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,867,481,406.61, a decrease of 2.99% from the end of the previous year[8] - The company's total current assets as of September 30, 2021, amount to 1,387,311,233.62 RMB, a decrease from 1,499,090,574.76 RMB at the end of 2020[19] - The total non-current assets increased to 480,170,172.99 RMB from 425,874,685.42 RMB year-over-year[20] - Total liabilities decreased from ¥246,190,545.59 in the previous year to ¥228,004,508.16, a reduction of approximately 7.4%[21] - Total equity attributable to shareholders decreased from ¥1,671,032,855.39 to ¥1,631,815,490.15, a decline of about 2.3%[21] Cash Flow - The company reported a net cash flow from operating activities of -¥92,509,766.01 year-to-date[8] - Cash flow from operating activities for the first three quarters of 2021 was ¥77,891,746.41, an increase from ¥55,468,163.70 in 2020, reflecting a growth of approximately 40.5%[26] - The net cash flow from operating activities was -$92.51 million, compared to -$57.99 million in the previous period, indicating a decline in operational efficiency[27] - The company reported a total cash outflow of $205.64 million from operating activities, up from $151.74 million, indicating increased operational expenditures[27] Shareholder Information - The total number of common shareholders at the end of the reporting period is 14,470, with the top 10 shareholders holding a total of 38,000,000 shares, representing 47.50% of the total shares[14] - The largest shareholder, Zhongke University Asset Management Co., Ltd., holds 10,800,000 shares, accounting for 13.50% of the total shares[14] Government Support - The company received government subsidies amounting to ¥8,369,910.78 during the quarter, contributing to its financial performance[9] Strategic Developments - The company has not disclosed any significant new strategies or product developments in the current reporting period[19] - The increase in operating revenue was primarily driven by new income from quantum computing and satellite ground station products[12] - The company experienced a decrease in net profit due to increased share-based payment expenses related to the implementation of an equity incentive plan[12]

Financial Performance - The company reported a total revenue of RMB 100 million for the first half of 2021, representing a year-on-year increase of 25%[18]. - The net profit attributable to shareholders was RMB 20 million, showing a growth of 15% compared to the same period last year[18]. - The company's operating revenue for the first half of the year reached ¥24,163,755.07, representing a 50.45% increase compared to ¥16,061,167.36 in the same period last year[27]. - The net profit attributable to shareholders was -¥18,991,875.64, a decrease of 42.31% from -¥13,345,133.72 year-on-year[27]. - The net cash flow from operating activities was -¥52,713,117.18, slightly worsening by 3.88% compared to -¥50,741,820.16 in the previous year[27]. - The total assets at the end of the reporting period were ¥1,881,663,431.53, down 2.25% from ¥1,924,965,260.18 at the end of the previous year[30]. - The net assets attributable to shareholders decreased by 1.65% to ¥1,643,486,534.28 from ¥1,671,032,855.39 year-on-year[30]. - The basic earnings per share for the reporting period was -¥0.24, a decline of 9.09% from -¥0.22 in the same period last year[31]. - The company achieved total revenue of 24.16 million yuan, an increase of 50.45% compared to the same period last year[75]. - The net profit attributable to shareholders was -18.99 million yuan, a decrease of 42.31% year-on-year, primarily due to a reduction in government subsidies recognized in the current period[75]. Research and Development - The company has allocated RMB 10 million for research and development in quantum computing technologies for the upcoming fiscal year[18]. - The total R&D investment reached ¥32,262,794.75, a 4.97% increase compared to the previous period, with a significant rise in expense-based R&D investment by 25.74%[49]. - Research and development expenses accounted for 133.52% of operating revenue, a decrease of 57.84 percentage points compared to 191.36% in the previous year[31]. - The company completed the development of QKD access terminal products, achieving industry-leading levels and targeting metropolitan network users[20]. - Two high-performance superconducting quantum computing prototypes were developed, along with a quantum computing cloud platform, laying the foundation for future quantum computing business expansion[21]. - The number of R&D personnel increased to 191, accounting for 50.66% of the total workforce, with an average salary of 12.66 million[68]. - The company holds 261 patents, including 90 invention patents, indicating a strong commitment to innovation and technology development[69]. - The company is involved in the development of quantum key distribution (QKD) and post-quantum cryptography (PQC) applications, with results published in top academic journals[46]. Market Expansion and Strategy - User data indicates an increase in active users by 30%, reaching a total of 1 million users by the end of June 2021[18]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share by the end of 2022[18]. - Future guidance estimates a revenue growth of 30% for the full year 2021, driven by new product launches and market expansion[18]. - The company is expanding its market presence, with ongoing projects in multiple regions for intercity and metropolitan quantum secure communication networks[39]. - The global quantum communication market is expected to grow significantly, with billions of euros projected in business opportunities over the next decade[39]. Product Development - New product development includes a quantum communication device expected to launch in Q4 2021, projected to generate an additional RMB 50 million in revenue[18]. - The company launched new products, including satellite ground stations, contributing to the increase in revenue[31]. - The company launched the 2021 version of the superconducting quantum computing control system "ez-Q™ Engine" to promote the application of quantum information technology[39]. - The company is advancing the "star-ground integrated" quantum network construction and has completed the development and delivery of a new miniaturized quantum communication satellite ground station system[76]. Corporate Governance and Compliance - The company emphasizes its commitment to maintaining high standards of corporate governance and transparency in its financial reporting[18]. - The company has no plans for mergers or acquisitions in the near term, focusing instead on organic growth strategies[18]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period, ensuring financial integrity[186]. - The company has not faced any violations or penalties involving its directors, supervisors, senior management, or controlling shareholders during the reporting period, indicating strong governance[187]. Risks and Challenges - Risk factors include potential regulatory changes in the technology sector, which could impact future operations[18]. - The company faces risks related to technology development, market expansion, and seasonal revenue fluctuations, which could impact future performance[80]. - The company's reliance on government subsidies poses a risk to profit levels if policies change in the future[83]. Shareholder and Stock Management - The company approved the 2021 Restricted Stock Incentive Plan on April 19, 2021, and the plan was further discussed and approved in subsequent meetings[105]. - The company will strictly adhere to the commitment regarding share lock-up, with a maximum of 25% of shares held being sold each year after the lock-up period ends[118]. - The company has implemented measures to stabilize its stock price, including a buyback plan triggered if the stock price falls below 120% of the latest net asset value for 5 consecutive trading days[142]. - The company commits to not reducing its shareholdings during the lock-up period as per legal regulations[123]. - The company will ensure compliance with relevant laws and regulations during the buyback process[142]. Contracts and Transactions - The company signed a sales contract with Guokeyuan Network for quantum communication products, with a total sales amount of RMB 0.9503 million and RMB 0.060 million[190]. - The company entered into a system integration and technical service contract with China Telecom Quantum, with an estimated contract amount of RMB 4.8395 million for the "Keda Guandun Enterprise Park Quantum Confidential Communication Technology Application Project"[190]. - The company has multiple lease agreements with various entities, all classified as non-related transactions[197].

Financial Performance - The company's operating revenue for 2020 was CNY 134.15 million, a decrease of 47.98% compared to CNY 257.85 million in 2019[30]. - Net profit attributable to shareholders decreased by 40.19% to CNY 29.49 million in 2020 from CNY 49.31 million in 2019[30]. - The net cash flow from operating activities dropped by 84.21%, amounting to CNY 27.05 million in 2020 compared to CNY 171.27 million in 2019[30]. - The company's total assets increased by 54.51% to CNY 1.92 billion at the end of 2020 from CNY 1.25 billion at the end of 2019[33]. - The net assets attributable to shareholders rose by 69.54% to CNY 1.67 billion at the end of 2020 from CNY 985.60 million at the end of 2019[30]. - Basic earnings per share decreased by 47.56% to CNY 0.43 in 2020 from CNY 0.82 in 2019[34]. - The company reported a total of ¥3.61 million in investment income from entrusted asset management in 2020, compared to ¥2.77 million in 2019[59]. - The company reported a non-operating income of approximately ¥59.76 million in 2020, compared to ¥34.61 million in 2019, indicating a significant increase[59]. - The company has received government subsidies amounting to CNY 59.48 million, CNY 84.41 million, and CNY 70.88 million over the past three years, indicating a significant reliance on government support[151]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 1.20 per 10 shares, totaling RMB 9.6 million, which represents 32.56% of the net profit attributable to shareholders of RMB 29.49 million for the year 2020[8]. - The company does not plan to issue bonus shares or capital reserve transfers, focusing solely on cash dividends for the year[8]. Risk Management - The company has outlined various operational risks and corresponding mitigation measures in the report, emphasizing the importance of risk management[5]. - The report includes a forward-looking statement risk declaration, cautioning investors about potential risks associated with future plans and strategies[9]. - The company is facing risks related to market development and the uncertainty of quantum communication network construction, which could impact future performance[145]. Corporate Governance - The company reported a standard unqualified audit opinion from Rongcheng Accounting Firm, ensuring the accuracy and completeness of the financial report[7]. - The company has confirmed that all board members attended the board meeting, ensuring collective governance and decision-making[6]. - The company does not have any non-operating fund occupation by controlling shareholders or related parties, ensuring financial integrity[10]. - There are no violations of decision-making procedures regarding external guarantees, indicating compliance with regulations[10]. - The company has not disclosed any special arrangements for corporate governance, suggesting standard practices are in place[12]. Research and Development - The proportion of R&D investment to operating revenue increased by 15.94 percentage points to 45.39% in 2020 from 29.45% in 2019[34]. - The company plans to continue focusing on R&D and market expansion despite the challenges faced in 2020[34]. - R&D investment decreased by 19.81% year-on-year, totaling approximately ¥60.89 million, primarily due to the engagement in defense custom development projects and optimized R&D management[91]. - The company’s R&D investment as a percentage of operating income increased by 15.94 percentage points to 45.39%[91]. - The company has completed the development of a quantum security service platform capable of managing over one million user keys, based on QKD and QRNG technologies[88]. - The company has achieved significant advancements in quantum secure communication technology, with over 700 integrated ground fiber quantum key distribution links and two satellite-to-ground high-speed quantum key distribution links, covering a distance of 4600 kilometers[86]. Market Expansion and Strategy - The company plans to continue focusing on expanding its quantum communication technology applications, which are still in the promotion phase[41]. - The company is focusing on expanding its market presence through new product development and strategic partnerships in quantum communication technology[48]. - The company is exploring market expansion through joint ventures and partnerships in the quantum technology sector[192]. - The company has established a strategic partnership with China Telecom Group, launching a joint venture to enhance quantum security communication network construction[135]. Revenue Recognition and Contracts - The company’s revenue recognition policy ensures that income is confirmed upon project completion, with no installment income recognition for product sales[41]. - The company has contracts that stipulate payment terms of 30% of the total contract price upon delivery and receipt of VAT invoices, with subsequent payments based on product acceptance timelines[52]. - The revenue from the quantum communication projects in the Guangdong-Hong Kong-Macao Greater Bay Area amounted to 2,070.78 million, with 701.99 million received upon completion of delivery[49]. - The company recognized revenue upon customer acceptance, with no early revenue recognition practices reported for the top five customers in 2020[58]. Industry Trends and Developments - The quantum communication industry is advancing rapidly, with significant investments from major countries, including China, in quantum technology research and applications[73]. - Quantum key distribution (QKD) is the leading technology in quantum communication, providing secure communication solutions that integrate with IoT, big data, and AI[73]. - The quantum secure communication industry is characterized by rapid technological development and broad application potential, driven by national strategies and key industry trials[78]. - The international competition in quantum computing is expected to intensify, driving the development of related scientific instruments and industries[85]. Subsidiaries and Investments - The company has several subsidiaries engaged in quantum communication, with varying financial performances, including losses from Guangdong Guodun and Xinjiang Guodun[196]. - The company has a stake in Zhongdian Quantum, which reported total assets of 25,501,337.59 yuan and a net loss of 2,245,527.04 yuan[199]. - The company is involved in significant equity investments, with a total contribution of 10.8 million yuan to the joint venture[192].

Financial Performance - Operating revenue for the period was CNY 4,952,582.48, representing a significant increase of 219.55% year-on-year[16]. - Net profit attributable to shareholders was a loss of CNY 13,442,690.89, compared to a loss of CNY 8,828,236.80 in the same period last year[16]. - The company's net profit for Q1 2021 was CNY -13,491,923.17, compared to CNY -8,896,666.82 in Q1 2020, indicating a worsening financial performance[31]. - The total comprehensive income for Q1 2021 was -CNY 13,491,923.17, compared to -CNY 8,896,666.82 in Q1 2020, reflecting a worsening financial position[52]. - The total comprehensive income for the first quarter of 2021 was -4,547,976.28 CNY, compared to 3,969,619.98 CNY in the same period of 2020[59]. Cash Flow - The net cash flow from operating activities was a negative CNY 36,288,236.53, worsening from a negative CNY 16,714,863.47 year-on-year[16]. - The company's cash flow from operating activities for Q1 2021 was CNY -36,288,236.53, a decline from CNY -16,714,863.47 in Q1 2020, indicating increased cash outflows[31]. - Cash inflows from operating activities totaled 54,471,659.51 CNY, an increase from 40,553,594.14 CNY year-over-year[62]. - Cash outflows from operating activities amounted to 90,759,896.04 CNY, up from 57,268,457.61 CNY in the previous year[62]. - The net cash flow from investment activities was -3,732,966.87 CNY, compared to -139,785,202.56 CNY in the previous year[65]. - The net increase in cash and cash equivalents was -40,021,203.40 CNY, compared to -156,500,066.03 CNY in Q1 2020[64]. - The ending balance of cash and cash equivalents was 764,546,513.92 CNY, up from 325,559,680.82 CNY year-over-year[64]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,900,883,707.40, a decrease of 1.25% compared to the end of the previous year[16]. - Current liabilities decreased from ¥103,354,882.41 to ¥90,673,567.65, a reduction of about 12.3%[39]. - Total liabilities decreased from ¥246,190,545.59 to ¥235,600,915.98, a decrease of approximately 4.3%[39]. - Shareholders' equity decreased from ¥1,678,774,714.59 to ¥1,665,282,791.42, a decline of about 0.8%[39]. - The company's total current assets as of March 31, 2021, were CNY 1,473,509,611.25, slightly down from CNY 1,499,090,574.76 at the end of 2020[34]. Research and Development - Research and development expenses accounted for 349.39% of operating revenue, a decrease of 663.09 percentage points compared to the previous year[18]. - Research and development expenses increased by 63.81% to CNY 15,367,095.75 in Q1 2021, up from CNY 9,380,999.85 in Q1 2020, reflecting ongoing investment in innovation[29]. - Research and development expenses for Q1 2021 amounted to CNY 15,367,095.75, which is a 63.5% increase from CNY 9,380,999.85 in Q1 2020[48]. Shareholder Information - The company had a total of 14,035 shareholders at the end of the reporting period[23]. - The largest shareholder, Zhongke University Asset Management Co., Ltd., held 10,800,000 shares, accounting for 13.5% of total shares[23]. Earnings Per Share - The basic earnings per share were -CNY 0.17, compared to -CNY 0.15 in the same period last year[18]. - The company reported a basic earnings per share of -0.17 in Q1 2021, compared to -0.15 in Q1 2020, indicating a decline in earnings performance[53]. - The company reported a basic earnings per share of 1.56 CNY for the first quarter of 2021[59].

Financial Performance - The company's operating revenue for 2020 was CNY 134.15 million, a decrease of 47.98% compared to CNY 257.85 million in 2019[32]. - The net profit attributable to shareholders for 2020 was CNY 29.49 million, down 40.19% from CNY 49.31 million in 2019[32]. - The net cash flow from operating activities decreased by 84.21% to CNY 27.05 million in 2020, compared to CNY 171.27 million in 2019[32]. - Basic earnings per share for 2020 were CNY 0.43, a decline of 47.56% from CNY 0.82 in 2019[36]. - The company achieved total revenue of CNY 134.15 million in 2020, a decrease of 47.98% compared to the same period last year[139]. - Net profit attributable to shareholders was CNY 29.49 million, down 40.19% year-on-year[139]. - Operating cash flow net amount was CNY 27.05 million, a decline of 84.21% compared to the previous year[139]. - Revenue from the quantum communication industry was CNY 125.70 million, accounting for 96.11% of total revenue, with a year-on-year decrease of 50.87%[143]. - The gross margin for quantum communication products increased by 3.53 percentage points to 73.85% despite a revenue decline of 54.92%[143]. Dividend Policy - The company plans to distribute a cash dividend of RMB 1.20 per 10 shares, totaling RMB 9.6 million, which represents 32.56% of the net profit attributable to shareholders of RMB 29.49 million for the year 2020[8]. - The company has established a cash dividend policy that ensures a minimum of 30% of the average distributable profit over the last three years is distributed in cash[198]. - The company will conduct cash dividends when the audited net profit is positive and the undistributed profits at year-end are also positive, without significant capital expenditure plans[198]. R&D and Innovation - The company's R&D expenditure accounted for 45.39% of operating revenue in 2020, an increase of 15.94 percentage points from 29.45% in 2019[36]. - The total R&D investment decreased by 19.81% year-on-year, amounting to ¥60,894,950.51, primarily due to the engagement in defense custom development projects and optimized R&D management[81]. - The proportion of R&D investment to operating income increased by 15.94 percentage points to 45.39%[81]. - The company has developed key core technologies in quantum secure communication with 242 patents, including 71 invention patents and 135 utility model patents[75]. - The company has completed the design work for QKD product application technology, entering the product verification and testing phase, with a total investment of 979.2 million and a budget of 198.5 million[101]. - The company has achieved industry-leading levels in the development of a small-sized quantum communication receiving telescope, completing optical and electronic subsystems as planned, with a total investment of 822 million and a budget of 252.57 million[103]. Market and Strategic Partnerships - The company has established a joint venture with China Telecom Group to support quantum security communication services, enhancing its market presence[51]. - The company is actively involved in the development of international and national standards for quantum key distribution (QKD), with several standards approved by the International Telecommunication Union[65]. - The company is positioned to benefit from the growing demand for quantum secure communication solutions across various sectors, including finance and telecommunications[69]. - The company is focusing on expanding its market presence in sectors such as electronic government, big data, smart transportation, and industrial internet, aiming to leverage the commercial value of quantum technology[127]. Operational Risks and Governance - The company has outlined various operational risks and corresponding mitigation strategies in the report, emphasizing the importance of risk management[5]. - The company does not have any non-operating fund occupation by controlling shareholders or related parties, indicating a stable financial governance structure[10]. - There are no violations of decision-making procedures regarding external guarantees, reflecting adherence to regulatory compliance[12]. - The company has not proposed any capital reserve conversion plans for the year, focusing solely on cash dividends[8]. - The report includes a forward-looking statement risk declaration, cautioning investors about the uncertainties in future plans and strategies[9]. - The company has confirmed that all board members attended the board meeting, ensuring collective governance and decision-making[6]. - The company has not disclosed any special arrangements for corporate governance, indicating a standard governance framework[9]. Financial Position - The total assets at the end of 2020 were CNY 1.92 billion, a 54.51% increase from CNY 1.25 billion at the end of 2019[35]. - The net assets attributable to shareholders increased by 69.54% to CNY 1.67 billion in 2020, compared to CNY 985.60 million in 2019[35]. - As of the end of 2020, total assets increased by 54.51% to CNY 1,924.97 million, while total liabilities decreased by 2.35% to CNY 246.19 million, resulting in an asset-liability ratio of 12.79%[124]. - The company's net assets attributable to shareholders grew by 69.54% to CNY 1,671.03 million[124]. Challenges and Future Outlook - The company faced delays in quantum communication network construction projects due to the COVID-19 pandemic, impacting revenue significantly[36]. - The company reported a significant increase in credit impairment provisions, amounting to CNY 8.73 million more than the previous year due to lower sales collections[36]. - The company plans to continue focusing on R&D and expanding its market presence despite the challenges faced in 2020[36]. - The company faces risks related to market development and the uncertainty of quantum communication network construction, which could impact its operational performance[131].

Financial Performance - Operating income for the period was ¥26,267,214.92, down 11.25% from ¥29,595,944.58 in the same period last year[18]. - The net profit attributable to shareholders of the listed company improved to -¥22,681,941.35, a 30.00% reduction in losses compared to -¥32,405,035.12 last year[18]. - Total operating revenue for Q3 2020 was CNY 10,206,047.56, a 79.5% increase from CNY 5,687,639.22 in Q3 2019[56]. - Net profit for Q3 2020 was CNY -9,539,462.85, compared to CNY -9,212,919.60 in Q3 2019, indicating a slight increase in losses[60]. - Total operating revenue for Q3 2020 was ¥5,983,932.21, a decrease of 26.5% compared to ¥8,190,028.05 in Q3 2019[66]. - Net profit for Q3 2020 was a loss of ¥6,355,513.07, compared to a profit of ¥9,647,006.54 in Q3 2019, representing a significant decline[66]. - The total profit for Q3 2020 was -¥7,460,397.62, compared to a profit of ¥11,356,788.97 in Q3 2019, indicating a substantial decline in profitability[66]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,828,411,432.09, an increase of 46.76% compared to the end of the previous year[18]. - The company's total current assets increased to ¥1,431,871,506.09 from ¥858,776,860.18, indicating significant growth in liquidity[41]. - The company's total liabilities decreased to ¥201,789,101.06 from ¥252,123,678.02, a reduction of about 20%[47]. - Total liabilities reached ¥252,123,678.02, with current liabilities totaling ¥76,412,756.64 and non-current liabilities at ¥175,710,921.38[82]. - The company's long-term equity investments rose to ¥33,710,936.00 from ¥31,577,733.34, showing a positive trend in investment activities[41]. - The company's total liabilities decreased by 60.96% in estimated liabilities to ¥1,540,467.95, resulting from a reduction in after-sales expenses[31]. Shareholders' Equity - Net assets attributable to shareholders of the listed company were ¥1,618,862,358.58, reflecting a growth of 64.25% year-on-year[18]. - Shareholders' equity increased to ¥1,626,622,331.03 from ¥993,708,839.39, representing a growth of approximately 63.7%[47]. - The total number of shareholders at the end of the reporting period was 14,308[25]. - The top shareholder, Zhongke Dazhi Asset Management Co., Ltd., held 10,800,000 shares, accounting for 13.5% of the total shares[25]. Cash Flow - The net cash flow from operating activities was -¥57,987,987.97, a significant decrease of 183.90% compared to ¥69,116,738.46 in the previous year[18]. - Cash inflow from investment activities totaled 171,812,138.82 RMB, up from 102,080,972.22 RMB in the previous period[74]. - Cash inflow from financing activities amounted to 684,656,000.00 RMB, with a net cash flow of 659,418,160.00 RMB after outflows[76]. - The total cash and cash equivalents at the end of the period reached 800,753,490.01 RMB, compared to 393,000,671.03 RMB at the end of the previous period[76]. - Cash received from sales of goods and services was 55,468,163.70 RMB, down from 219,310,011.14 RMB in the previous period[72]. Research and Development - The R&D expenditure accounted for 179.81% of operating income, a decrease of 26.54 percentage points from the previous year[20]. - The company's research and development expenses decreased by 35.91% to ¥34,947,430.18, reflecting a reduction in personnel costs and material expenses[34]. - Research and development expenses for Q3 2020 were CNY 13,874,941.59, down 25.7% from CNY 18,689,805.04 in Q3 2019[60]. - Research and development expenses for Q3 2020 were ¥5,776,552.60, a decrease of 19.1% from ¥7,143,658.77 in Q3 2019[66]. Financial Ratios - The weighted average return on net assets increased by 1.65 percentage points to -2.03%[20]. - The company's total liabilities to total assets ratio stands at approximately 20.24%[82].

Financial Performance - The company reported a total revenue of RMB 100 million for the first half of 2020, representing a year-on-year increase of 25%[20]. - The net profit attributable to shareholders was RMB 20 million, with a growth rate of 30% compared to the same period last year[20]. - The company's operating revenue for the first half of the year was ¥16,061,167.36, a decrease of 32.82% compared to the same period last year[25]. - The net profit attributable to shareholders was -¥13,345,133.72, an improvement of 42.55% year-on-year, indicating a reduction in losses[25][26]. - Basic earnings per share were -¥0.22, reflecting a 43.59% improvement compared to -¥0.39 in the previous year[25][26]. - The company achieved total operating revenue of ¥16,061,167.36, a decrease of 32.82% compared to the same period last year, primarily due to revenue concentration in the fourth quarter[97]. - The net profit attributable to shareholders was -¥13,345,133.72, an improvement of 42.55% year-on-year, attributed to reduced management, sales, and R&D expenses[97]. User Growth and Market Expansion - User data indicated an increase in active users by 15%, reaching a total of 1.5 million users by the end of June 2020[20]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share by the end of 2021[20]. - Market expansion plans include entering three new international markets by Q3 2024, projected to increase user base by 30%[149]. Research and Development - The company has allocated RMB 10 million for research and development in quantum technology for the upcoming fiscal year[20]. - The company's R&D investment accounted for 191.36% of operating revenue, an increase of 21.52 percentage points year-on-year[25]. - The company has achieved a total of 30,733,884.38 CNY in R&D investments, which accounts for 191.36% of its operating revenue[63]. - The company has established partnerships with three leading universities to enhance its R&D capabilities in quantum technology[20]. - Key R&D projects include the development of a quantum random number generator and upgrades to QKD products, aligning with market trends towards miniaturization and cost reduction[98]. Product Development and Innovation - New product development includes a quantum communication device expected to launch in Q4 2020, projected to generate an additional RMB 50 million in revenue[20]. - The company is actively upgrading its QKD product line to meet the demands of new protocols, ensuring alignment with market advancements[46]. - The company has completed the design and prototype testing of a high-speed phase-encoded QKD system, with a total investment of 2,043,000 CNY and 1,912,940 CNY cumulative investment[66]. - The company has developed a quantum encryption UIM card, which has entered the applicability testing phase, with progress being made despite pandemic-related delays[75]. Strategic Partnerships and Collaborations - The company has established strategic partnerships with major players like China Telecom to expand its market presence and drive the adoption of quantum technologies[96]. - The company has established a collaborative initiative with 16 other entities to advance the construction of a quantum communication network in the Yangtze River Delta region[101]. Market Trends and Industry Insights - The information security market in China reached $2.7 billion in 2020, growing 19.7% year-over-year, with a projected market size of $6.841 billion by 2020[41]. - The global information security market is expected to grow at a CAGR of 8.1% from 2016 to 2021, reaching $133.02 billion by 2021[41]. - The demand for information security in government, finance, power, defense, and cloud/data center sectors supports the growth of the quantum secure communication industry, with over 4,500 banking institutions and 200,000 operational outlets in China[50]. Risk Management - The board has emphasized the importance of risk management in its operations, particularly in the context of market volatility[20]. - The company is facing risks related to market expansion, particularly in its reliance on government projects for quantum communication network construction[105]. - The company has identified risks associated with the potential loss of core technical personnel, which could impact its competitive edge in the market[108]. Shareholder Commitments and Regulations - The company is committed to adhering to its share lock-up commitments for a period of 36 months from July 9, 2020[131]. - The stock lock-up period for major shareholders is set for 36 months, ensuring stability in share price post-IPO[149]. - The company will not transfer or entrust the management of its shares for 12 months after the stock listing, and no repurchase of shares will be proposed during this period[158]. - The company commits to strict compliance with share lock-up agreements and relevant laws during the lock-up period[162].