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].