Financial Performance - The company reported a total revenue of 1.5 billion RMB for the first half of 2021, representing a year-on-year increase of 20%[1]. - The company expects a revenue growth of 15% to 25% for the second half of 2021, projecting total revenue between 1.75 billion RMB and 1.88 billion RMB[1]. - The company achieved operating revenue of CNY 294.91 million in the first half of 2021, representing a year-on-year increase of 32.32%[23]. - The net profit attributable to shareholders was a loss of CNY 97.74 million, compared to a loss of CNY 59.63 million in the same period last year[23]. - The net cash flow from operating activities was a negative CNY 211.73 million, a significant decline compared to the previous year's negative CNY 96.43 million[23]. - The company's total assets decreased by 7.87% from the end of the previous year, amounting to CNY 1.65 billion[23]. - The net assets attributable to shareholders decreased by 7.34% to CNY 1.32 billion[23]. - The basic earnings per share for the period was -CNY 0.5423, compared to -CNY 0.3309 in the same period last year[24]. - The weighted average return on net assets was -7.10%, compared to -4.46% in the previous year[24]. - The gross profit margin for the main business was 67.71%, up by 0.65 percentage points year-on-year[126]. User Growth and Market Expansion - User data indicates a growth in active users, reaching 2 million by the end of June 2021, up from 1.5 million in the same period last year, marking a 33.3% increase[1]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2022[1]. - The company has served over 20,000 users across more than 50 countries and regions, achieving recognition in various industries including finance, government, and healthcare[58]. Research and Development - Research and development expenses increased by 30% year-on-year, totaling 300 million RMB, reflecting the company's commitment to innovation[1]. - The company's R&D investment accounted for 42.32% of operating revenue, a slight decrease from 42.61% year-on-year[24]. - The total R&D investment for the first half of 2021 was approximately ¥124.82 million, representing a year-on-year increase of 31.45%[72]. - The company expanded its R&D team to 494 personnel, with R&D staff accounting for 31.89% of the total workforce[83]. - The company has applied for multiple patents, with 3 patents for its next-generation firewall and 2 for its cloud security micro-segmentation technology[64]. Product Development and Innovation - New product launches include an upgraded version of their firewall technology, which is anticipated to enhance market competitiveness and drive sales growth[1]. - The company launched the A200 desktop firewall for small and medium enterprises and upgraded the A5500 and A5800 high-end firewalls, enhancing their performance and storage capabilities[34]. - The company has made significant advancements in cloud security, releasing 13 related products and enhancing compatibility with major cloud platforms like Huawei Cloud and VMware[38]. - The company launched over 30 new features for application delivery products, significantly enhancing market competitiveness[46]. - The company introduced a 120G mid-to-high-end model to target higher-end markets, improving product coverage[46]. Financial Strategy and Shareholder Returns - The board approved a profit distribution plan, proposing a dividend payout of 0.5 RMB per share for the first half of 2021[1]. - The company emphasizes a cash dividend policy, aiming for a minimum cash dividend ratio of 80% during mature stages without significant capital expenditure[168]. - The company will review its shareholder return plan at least every three years to ensure compliance with its profit distribution policy[169]. Risks and Challenges - The management highlighted potential risks including increased competition and regulatory changes that could impact future performance[1]. - The company faces risks from market competition as existing competitors grow and new entrants emerge, potentially impacting its market position[107]. - The company relies heavily on a few key clients, with sales to the top five clients accounting for 76.28% of total revenue, indicating a high customer concentration risk[111]. - The company has a low accounts receivable turnover rate of 0.55 times, with accounts receivable valued at 363.74 million, which may increase the risk of bad debt losses[116]. Corporate Governance and Compliance - The company has committed to continue increasing its stake in the company by at least 3% of the total share capital within 12 months, without seeking control over the company[156]. - The company guarantees that its prospectus does not contain false records or misleading statements, and all directors and senior management are liable for its accuracy[160]. - The company will ensure or make its best efforts to compensate for the dilution of immediate returns as per the commitment made in 2019[161]. Market Position and Recognition - The company ranked 4th in the "Unified Threat Management (UTM)" market in China from 2016 to 2020 according to IDC data[58]. - The company received the "Customer Choice" honor from Gartner for two consecutive years in the network firewall category[59]. - The company has been awarded the "2021 CDM Market Leader in Data Center Security" by Cyber Defense Magazine, highlighting its advanced product capabilities[62].

Financial Performance - The company reported a total revenue of RMB 1.2 billion for the year 2020, representing a year-over-year growth of 15%[17]. - The company's operating revenue for 2020 was CNY 725.39 million, an increase of 7.53% compared to CNY 674.57 million in 2019[25]. - The net profit attributable to shareholders decreased by 33.84% to CNY 60.24 million from CNY 91.05 million in 2019[25]. - The net profit after deducting non-recurring gains and losses fell by 48.50% to CNY 38.15 million from CNY 74.08 million in 2019[25]. - The net cash flow from operating activities decreased by 82.79% to CNY 2.72 million from CNY 15.80 million in 2019[25]. - The company's total assets increased by 10.40% to CNY 1.79 billion at the end of 2020 from CNY 1.62 billion at the end of 2019[25]. - The weighted average return on equity decreased to 4.32% in 2020 from 13.33% in 2019, a decline of 9.01 percentage points[26]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 1.01 per 10 shares, totaling RMB 18,202,568.85, which represents 30.22% of the net profit attributable to shareholders for 2020[5]. - The independent directors have expressed clear agreement with the profit distribution plan, pending approval at the annual shareholders' meeting[6]. Operational Risks - The company has disclosed various operational risks in the report, which investors should review[4]. - The report includes a risk statement regarding forward-looking statements, indicating that future plans do not constitute a commitment to investors[7]. - There are no non-operating fund occupations by controlling shareholders or related parties[8]. - The company has not violated decision-making procedures regarding external guarantees[9]. Market and Business Strategy - The company expects a revenue growth guidance of 20% for the upcoming fiscal year, projecting revenues to reach RMB 1.44 billion[17]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[17]. - A strategic acquisition of a cybersecurity firm was completed, which is anticipated to enhance the company's technology stack and add RMB 150 million in annual revenue[17]. - The company has established partnerships with major tech firms to enhance its product offerings and expand its distribution channels[17]. - The company has implemented a new sales strategy that aims to improve customer engagement, projected to increase sales conversion rates by 15%[17]. Research and Development - Research and development expenses increased by 30% to RMB 300 million, focusing on cloud security and AI-driven solutions[17]. - Research and development expenses accounted for 29.26% of operating revenue, an increase of 1.58 percentage points from 27.68% in 2019[26]. - The company achieved a total R&D investment of ¥212,216,154.36 in 2020, representing a 13.64% increase from ¥186,747,232.24 in 2019[92]. - The company launched over 30 new scenario-based and industry-specific solutions during the reporting period, expanding its product offerings to cover 8 major categories and over 30 series of cybersecurity products[119]. Product Development and Innovation - New product launches include a next-generation firewall that enhances security features, expected to contribute an additional RMB 200 million in revenue[17]. - The company has developed over 30 series of network security products and services, providing more than 50 industry-specific solutions to over 20,000 users across more than 50 countries and regions[35]. - The company launched new products including the Mountain Stone Remote Security Assessment System and APT Monitoring System, enhancing overall internal network security solutions[48]. - The company has integrated its threat intelligence center with its security products, enhancing proactive defense capabilities for clients[39]. - The company has developed three new core technologies, including cloud computing environment FWaaS technology and multi-dimensional container security protection technology, increasing its total to 21 proprietary core technologies[81]. Customer and Market Presence - User data indicates an increase in active users by 25% compared to the previous year, reaching a total of 500,000 users[17]. - The company has served over 20,000 users across various sectors, including finance, government, and healthcare, establishing a strong market presence[70]. - The company has been recognized in the Gartner Magic Quadrant for network firewalls for seven consecutive years, highlighting its competitive position in the industry[70]. Financial Health and Risks - The company reported a high accounts receivable balance of 334.39 million yuan, which poses a risk of bad debts[150]. - Cumulative unremitted losses reached 14.80 million yuan, potentially impacting future R&D and market expansion efforts[151]. - The company’s inventory turnover rate is low, which may increase operational funding pressure[149]. - The company faces risks related to maintaining technological leadership amid increasing competition and potential disruptive technologies[130]. Future Outlook - The company anticipates that the impact of the COVID-19 pandemic on its business will be temporary, with revenue and profit growth expected in Q4 2020 compared to the previous year[142]. - The company plans to adopt a new security operation model (SASE) to embrace opportunities brought by cloud services and drive growth in industrial internet security[200].

Financial Performance - Operating revenue for the period reached CNY 94,624,546.95, representing a significant increase of 63.52% year-on-year[6] - Net profit attributable to shareholders of the listed company was CNY -84,076,970.49, showing a worsening compared to CNY -69,894,221.54 in the same period last year[6] - The company reported a net loss of ¥98,872,259.45 for the period, compared to a loss of ¥14,795,288.96 in the previous year[16] - The company reported a net loss of ¥98,872,259.45 compared to a loss of ¥14,795,288.96 in the previous period[27] - Net loss for Q1 2021 was CNY -84,199,800.62, compared to a net loss of CNY -69,894,221.54 in Q1 2020, representing a 20.5% increase in losses[35] Cash Flow - The company reported a net cash flow from operating activities of CNY -107,843,897.23, compared to CNY -60,976,306.56 in the same period last year[6] - The net cash flow from operating activities was negative at -¥107,843,897.23, a decline of 76.67% year-on-year, mainly due to the settlement of previous year's procurement payments[18] - In Q1 2021, the company reported a net cash flow from operating activities of -107,843,897.23 RMB, compared to -60,976,306.56 RMB in Q1 2020, indicating a decline of approximately 77% year-over-year[42] - The total cash inflow from operating activities was 140,359,973.30 RMB, up from 126,441,876.79 RMB in the same period last year, representing an increase of about 11%[41] - The company experienced a significant increase in cash outflow for purchasing goods and services, totaling 75,007,705.47 RMB in Q1 2021, compared to 53,012,681.06 RMB in Q1 2020, marking an increase of approximately 42%[42] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,735,877,415.95, a decrease of 3.24% compared to the end of the previous year[6] - The company's cash and cash equivalents decreased by 59.26% to ¥326,256,146.82 from ¥800,749,617.33 due to the investment in financial products[16] - Total current assets decreased to ¥1,394,978,898.99 from ¥1,493,821,765.73, a decline of approximately 7.5%[25] - Total liabilities decreased from ¥368,618,487.54 to ¥388,765,226.11, an increase of about 5.0%[27] - The company’s total liabilities increased, with lease liabilities recorded at ¥44,547,570.88 due to the first-time application of new leasing standards[16] Shareholder Information - The total number of shareholders at the end of the reporting period was 6,809[10] - The largest shareholder, Yuchao High-tech Co., Ltd., held 30,522,850 shares, accounting for 16.94% of the total shares[10] Research and Development - Research and development expenses accounted for 63.16% of operating revenue, a decrease of 16.15 percentage points compared to the previous year[6] - R&D expenses grew by 30.22% to ¥59,762,752.54, reflecting a significant increase in R&D personnel and investment[17] - Research and development expenses in Q1 2021 were CNY 59,762,752.54, an increase of 30.3% from CNY 45,892,832.87 in Q1 2020[34] Other Income and Expenses - The company recorded non-operating income of CNY 506,573.26, primarily from government subsidies and other non-recurring gains[8] - The company reported a significant increase in other comprehensive income, with a net amount of ¥155,082.00, up 773.69% due to exchange rate fluctuations[18] - Sales expenses rose by 31.05% to ¥72,566,903.45, driven by an increase in sales personnel and market investment[17] - The company incurred sales expenses of CNY 72,566,903.45 in Q1 2021, an increase of 31.1% from CNY 55,374,366.67 in Q1 2020[34] Earnings Per Share - Basic and diluted earnings per share were both CNY -0.4665, reflecting a decline from CNY -0.3878 in the same period last year[6] - The company reported a basic and diluted earnings per share of CNY -0.4665 for Q1 2021, compared to CNY -0.3878 in Q1 2020[35]

Financial Performance - Net profit attributable to shareholders was CNY -46,981,930.65, representing a decline of 321.08% year-on-year[6]. - The company's operating costs increased by 35.88% year-on-year, amounting to ¥139,415,970.46, primarily due to fixed costs rising and the expansion of integrated services[18]. - The net profit for the period was -¥46,981,930.65, a decrease of 321.08% compared to the previous year, attributed to increased operating costs and a decline in gross margin[19]. - The total comprehensive income for the period was -¥46,916,896.36, reflecting a significant loss compared to ¥20,605,315.97 in the same period last year, mainly due to operational losses[20]. - The company reported a net loss of ¥117,418,547.21 in retained earnings, compared to a loss of ¥49,662,829.76 in the previous period[28]. - The total profit for the first three quarters of 2020 was approximately -¥49.33 million, compared to ¥25.62 million in the same period of 2019[35]. - The net profit for Q3 2020 was a loss of approximately ¥5.38 million, compared to a profit of ¥37.02 million in Q3 2019, reflecting a significant decline[40]. - The total comprehensive income for Q3 2020 was a loss of approximately ¥5.38 million, compared to a profit of ¥37.02 million in Q3 2019[40]. Revenue and Expenses - Operating revenue for the first nine months was CNY 415,876,950.53, a slight increase of 0.20% compared to the same period last year[6]. - Total operating revenue for Q3 2020 was approximately ¥192.99 million, a 3.1% increase from ¥186.84 million in Q3 2019[34]. - Total operating costs for Q3 2020 were approximately ¥193.55 million, up 18.9% from ¥162.77 million in Q3 2019[34]. - Research and development expenses accounted for 36.95% of operating revenue, an increase of 4.17 percentage points[7]. - Research and development expenses for Q3 2020 reached ¥58.72 million, an increase of 18.3% compared to ¥49.60 million in Q3 2019[34]. - The company’s sales expenses in Q3 2020 were approximately ¥34.74 million, slightly up from ¥33.46 million in Q3 2019[39]. Cash Flow and Investments - The net cash flow from operating activities for the first nine months was CNY -77,552,571.15, compared to CNY -70,674,785.45 in the same period last year[6]. - The company reported a cash flow from investment activities of approximately ¥2.046 billion, primarily due to the purchase of financial products using surplus funds[21]. - The company experienced a net cash outflow from investing activities of approximately -¥694.91 million in the first three quarters of 2020[42]. - Cash inflow from operating activities for the first three quarters of 2020 was CNY 212.75 million, a decrease of 11.6% compared to CNY 240.68 million in the same period of 2019[44]. - The company’s cash flow from operating activities was negatively impacted by increased payments to employees, totaling CNY 168.09 million in Q3 2020, up from CNY 152.86 million in Q3 2019[45]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,602,056,098.33, a decrease of 1.41% compared to the end of the previous year[6]. - Total liabilities increased from ¥245,997,199.32 to ¥285,103,919.68, reflecting a rise of about 15.8%[28]. - Current liabilities rose from ¥223,052,367.25 to ¥269,111,606.11, an increase of approximately 20.7%[28]. - Cash and cash equivalents decreased by 74.38% to ¥275,501,975.26 from ¥1,075,173,260.84 due to the purchase of financial products[16]. - The company’s total current assets as of September 30, 2020, were approximately ¥1.515 billion, compared to ¥1.571 billion at the end of 2019[26]. - The company’s long-term equity investments amounted to ¥9.98 million as of September 30, 2020, indicating ongoing investment strategies[26]. Shareholder Information - The total number of shareholders at the end of the reporting period was 8,682[10]. - The largest shareholder, Yuchao High-tech Co., Ltd., held 30,522,850 shares, accounting for 16.94% of total shares[11]. Government Support - The company received government subsidies amounting to CNY 3,650,000.00 during the reporting period[8].

Financial Performance - The company reported a significant increase in revenue for the first half of 2020, achieving a total of 688 million RMB, representing a year-on-year growth of 25%[1]. - The company reported a revenue of RMB 100 million for the first half of 2020, representing a year-over-year growth of 15%[12]. - The company reported a total revenue of 22,288.06 million RMB for the first half of 2020, representing a year-on-year decrease of 2.33%[22]. - The company achieved a revenue of 222.88 million yuan in the first half of 2020, a decrease of 2.33% compared to the same period last year[71]. - The company reported a total operating revenue for the first half of 2020 of ¥222,880,631.12, a decrease of 2.84% compared to ¥228,205,084.62 in the first half of 2019[160]. - The company reported a net loss attributable to shareholders of 59,634,344.86 RMB, compared to a loss of 16,958,984.00 RMB in the previous year[23]. - The net profit attributable to shareholders was a loss of 59.63 million yuan, an increase in loss of 251.64% year-on-year, primarily due to increased investment in product R&D and marketing[72]. - The company reported a comprehensive income total of CNY -39,669,584 for the first half of 2020, indicating a loss compared to the previous period[183]. User Growth and Market Expansion - User data indicates that the active user base has expanded to 1.5 million, marking a 30% increase compared to the previous year[1]. - User data showed an increase in active users by 20% compared to the previous year, reaching a total of 1 million active users[12]. - The company has set a revenue guidance for the second half of 2020, projecting an increase of 20% to 825 million RMB[1]. - The company expects a revenue growth guidance of 10-15% for the second half of 2020, driven by new product launches and market expansion strategies[12]. - The company is planning to expand its market presence in Southeast Asia, targeting a 15% market penetration by the end of 2021[1]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by the end of 2021[12]. Research and Development - The company has invested 50 million RMB in R&D for new technologies, aiming to innovate and improve service delivery[1]. - Investment in R&D for new technologies increased by 25% year-over-year, focusing on cloud security and next-generation firewall solutions[12]. - Research and development expenses accounted for 42.61% of operating revenue, an increase of 4.72 percentage points from the previous year[22]. - The company achieved a total R&D investment of ¥94,959,229.73, which represents 42.61% of its operating revenue[55]. - The company has 414 R&D personnel, accounting for 35.20% of the total workforce, with an average salary of 187,186.96 yuan[61]. - The company is involved in a significant R&D project for a fully distributed elastic architecture cloud security system, which is expected to provide comprehensive protection for cloud data centers[49]. Product Development and Innovation - New product development includes the launch of a next-generation firewall, which is expected to capture a larger market share in the cybersecurity sector[1]. - The introduction of a new cloud security product is expected to contribute an additional RMB 20 million in revenue by Q4 2020[12]. - The company has enhanced its product line in the boundary security sector, adding over 40 new features and 100 system improvements to its StoneOS operating system[29]. - The company has developed a threat detection engine that incorporates machine learning modeling for unknown threat detection, enhancing its existing threat protection systems[51][52]. - The company has optimized its data security solutions to cover all application scenarios, meeting diverse customer needs[40]. - The company has expanded its support for non-relational databases to a total of 23 types, gaining recognition in various industries[39]. Financial Position and Cash Flow - The company has maintained a strong cash position with 200 million RMB in liquid assets, providing flexibility for future investments[1]. - The company’s cash and cash equivalents decreased by 78.01% from the beginning of the period, primarily due to investments in financial products[65]. - The company reported a net cash flow from operating activities of -96.43 million yuan, reflecting challenges in cash generation amid growth[89]. - The company’s total assets decreased by 7.96% from the end of the previous year, amounting to 1,495,576,973.32 RMB[23]. - The company’s total liabilities decreased from CNY 245,997,199.32 to CNY 193,102,813.65, a reduction of about 21.5%[154]. - The company’s total equity decreased from CNY 1,378,931,318.07 to CNY 1,302,474,159.67, a reduction of approximately 5.5%[154]. Strategic Acquisitions - A strategic acquisition of a smaller tech firm is in progress, which is anticipated to enhance the company's technological capabilities and product offerings[1]. - A strategic acquisition of a cybersecurity firm was completed, enhancing the company's product offerings in the UTM and IDS sectors[12]. Risks and Challenges - The management highlighted potential risks related to market competition and regulatory changes that could impact future performance[1]. - The company faces risks related to low accounts receivable turnover, with accounts receivable valued at 304.20 million yuan, representing 21.24% of current assets[88]. - The company is exposed to risks from overseas market expansion, including geopolitical barriers and trade friction[85]. - The company anticipates a significant change or potential loss in cumulative net profit compared to the same period last year, primarily due to seasonal revenue concentration in the second half of the year and the impact of the pandemic[111]. Shareholder and Governance - The company has a dispersed shareholding structure with no controlling shareholder, which may lead to potential changes in control post-lockup period[92]. - The company has committed to a lock-up period of 36 months for shares held prior to its IPO, with a maximum transfer limit of 25% per year after the lock-up expires[118]. - The company will ensure timely disclosure of any significant information as required by regulatory authorities[117]. - The company has established a corporate governance structure including a shareholders' meeting, board of directors, and supervisory board[189]. Profit Distribution Policy - The company committed to a profit distribution policy that prioritizes cash dividends, aiming for a minimum of 80% cash dividend in mature stages without major capital expenditures[124]. - The company plans to conduct cash dividends annually, with the possibility of mid-term cash dividends based on profitability and funding needs[124]. - The company will adjust its profit distribution policy based on operational conditions, ensuring compliance with legal regulations and maintaining shareholder rights[124].

Financial Performance - Operating revenue for the period was CNY 57,867,120.17, a decline of 21.34% year-on-year[6] - Net profit attributable to shareholders was a loss of CNY 69,894,221.54, compared to a loss of CNY 51,971,686.56 in the same period last year[6] - The company reported a net cash flow from operating activities of -CNY 60,976,306.56, worsening from -CNY 51,315,052.17 year-on-year[6] - Basic and diluted earnings per share were both -CNY 0.3878, slightly worsening from -CNY 0.3845 in the same period last year[6] - The company reported a significant loss of ¥130,238,324.68, reflecting operational losses and adjustments from new accounting standards[15] - Net profit for Q1 2020 was -¥69,894,221.54, representing an increase in loss of ¥17,922,534.98 compared to the same period last year[16] - The total comprehensive income for Q1 2020 was -¥69,876,471.30, a decrease of ¥17,990,961.16 year-over-year[16] - The company reported a total comprehensive loss of ¥69,876,471.30 for Q1 2020, compared to a comprehensive loss of ¥51,885,510.14 in Q1 2019[30] Assets and Liabilities - Total assets decreased by 8.28% to CNY 1,490,311,820.67 compared to the end of the previous year[6] - The company's cash and cash equivalents decreased by 70% to ¥324,979,497.43 from ¥1,075,173,260.84 due to investments in wealth management products[14] - The company's total liabilities decreased by 33% to ¥15,318,211.13, reflecting adjustments from the new revenue accounting standards[15] - The company's accounts payable decreased by 48% to ¥25,355,343.03, primarily due to payments made for prior period liabilities[14] - The company's total current assets decreased to ¥1,430,367,759.94, down 8.91% from ¥1,570,669,117.43[22] - The company's total liabilities decreased to ¥189,987,018.36, down 22.8% from ¥245,997,199.32[24] - The company's equity attributable to shareholders increased to CNY 1,378,931,318.07, a decrease of CNY 10,693,876.62 from the previous figure[43] Research and Development - R&D expenses accounted for 79.31% of operating revenue, an increase of 23.41 percentage points compared to the previous year[7] - Research and development expenses for Q1 2020 were ¥45,892,832.87, up from ¥41,119,855.74 in Q1 2019, indicating a 11.8% increase[29] Cash Flow - Cash flow from investment activities was -¥688,639,041.61, a significant increase in outflow compared to -¥410,406.71 in the previous year, primarily due to investments in financial products and fixed assets[18] - The total cash and cash equivalents at the end of Q1 2020 were 324,435,356.24 RMB, a decrease from 1,074,418,949.55 RMB at the beginning of the quarter, reflecting a net decrease of 749,983,593.31 RMB[36] - The company’s net cash flow from financing activities was -470,954.16 RMB in Q1 2020, compared to -3,422,858.04 RMB in Q1 2019, indicating a reduction in cash outflows[36] Shareholder Information - The total number of shareholders at the end of the reporting period was 9,903[10] - The largest shareholder, Yuxiao High-tech Co., Ltd., held 30,522,850 shares, accounting for 16.94% of total shares[10] Government Support - The company received government subsidies amounting to CNY 412,888.71 during the period[8] Taxation - The company experienced a 63% reduction in taxes and surcharges, amounting to ¥1,508,524.09, due to decreased business activity[15] - The company received tax refunds of ¥7,845,956.55, an increase of 48% compared to the previous year, mainly due to VAT software refunds[17]

Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion CNY for the fiscal year, representing a growth of 25% year-over-year[16]. - The company's operating revenue for 2019 was CNY 674,570,694.78, representing a year-on-year increase of 19.97% compared to CNY 562,276,794.48 in 2018[24]. - The net profit attributable to shareholders for 2019 was CNY 91,046,079.76, which is a 32.12% increase from CNY 68,911,741.94 in 2018[24]. - The cash flow from operating activities for 2019 was CNY 15,802,799.42, showing a significant increase of 72.17% compared to CNY 9,178,773.02 in 2018[24]. - The total assets at the end of 2019 reached CNY 1,624,928,517.39, a 117.59% increase from CNY 746,771,706.72 at the end of 2018[24]. - The basic earnings per share for 2019 was CNY 0.6218, reflecting a growth of 21.97% from CNY 0.5098 in 2018[25]. - The adjusted net profit attributable to shareholders, excluding non-recurring gains and losses, increased by 19.51% year-on-year, aligning with the revenue growth trend[27]. - The company achieved revenue of 578.80 million yuan from boundary security products, representing a year-on-year growth of 14.05%[36]. - The company reported revenue of 35.71 million yuan from cloud security products and services, marking a significant increase of 50.08% compared to the previous year[39]. - The company achieved revenue of 56.1816 million yuan from other security products and services, representing a year-on-year growth of 124.87%[42]. Research and Development - Investment in R&D has increased by 40%, totaling 150 million CNY, to enhance product offerings in network security[16]. - The R&D expenditure as a percentage of operating revenue was 27.68% in 2019, slightly down from 27.83% in 2018[25]. - The total R&D investment for the reporting period amounted to ¥186,747,232.24, representing 27.68% of the company's revenue[67]. - The company has 420 R&D personnel, accounting for 38.71% of the total workforce[67]. - The company has filed for 7 new patents during the reporting period, including inventions related to gateway control devices and data center systems[62]. - The company has established a dedicated R&D team and quality management system to continuously enhance product quality standards[188]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 15% market share by the end of the next fiscal year[16]. - The company plans to pursue strategic acquisitions to bolster its technology portfolio, with a budget of 300 million CNY allocated for this purpose[16]. - The company aims to expand its overseas market presence while deepening its domestic market penetration[135]. - In 2020, the company aims to expand its overseas market presence, focusing on Southeast Asia, South America, and Europe, to capture new market opportunities[138]. - The company plans to enhance its market share and diversify its revenue structure by improving product differentiation and service competitiveness[138]. Corporate Governance and Compliance - The report includes a standard unqualified audit opinion from the accounting firm, ensuring the accuracy of the financial statements[5]. - The board of directors and management have confirmed the authenticity and completeness of the annual report[4]. - The company has committed to ensuring that shareholder return plans comply with its articles of association and relevant regulations[164]. - The company guarantees that its prospectus and other disclosures do not contain false statements or omissions, with all directors and executives bearing legal responsibility for accuracy[150]. - The company has made commitments regarding share management and compliance with regulatory requirements[146]. Risk Management - The company has disclosed various operational risks in the report, which investors should review[5]. - The company emphasizes that forward-looking statements do not constitute a commitment to investors, highlighting investment risks[7]. - The company is exposed to risks related to changes in tax policies, particularly the VAT refund policy, which accounted for RMB 40.47 million or 42.81% of total profit during the reporting period[95]. - The company faces potential risks from geopolitical barriers and market competition as it seeks to expand its international presence, which has not yet become a major revenue source[94]. Shareholder Returns - The company plans to distribute a cash dividend of RMB 0.56 per 10 shares, totaling RMB 10,092,513.42, which represents 11.09% of the net profit attributable to shareholders for 2019[6]. - The cash dividend policy is designed to ensure reasonable returns to investors, particularly small and medium shareholders, in compliance with relevant regulations[141]. - The profit distribution plan must be approved by a majority of the board and the shareholders, with independent directors able to gather opinions from minority shareholders[161]. Employee Engagement and Welfare - The company established "Shan Shi University" for internal employee training, offering 54 courses and totaling 402 training hours in 2019[185]. - A total of 363 new employees were hired, with 286 confirmed and 38 promoted to management positions in 2019[185]. - The company actively engaged in employee welfare, ensuring compliance with labor laws and providing social security benefits[185]. - The company has implemented measures for pandemic prevention, including health monitoring and support for employees affected by COVID-19[185]. Product Development and Innovation - The company launched over 30 new features and made more than 70 system improvements to its StoneOS operating system for next-generation firewall products[36]. - The company introduced the new generation data center security protection platform X9180, designed for high performance and scalability, supporting advanced threat detection capabilities[37]. - The company launched next-generation network security products, including firewalls and intrusion detection systems, utilizing domestic CPU and operating systems to meet diverse customer needs[57]. - The company has established a comprehensive product line covering boundary security, internal network security, data security, cloud security, and security operations, providing integrated network security solutions with industry-leading usability and practicality[186]. Financial Health - The company maintains a low asset-liability ratio of 15.14%, indicating a stable financial position[83]. - The company achieved a net profit of RMB 91.0461 million, with an interest coverage ratio of 38.24, reflecting robust financial health[184]. - The company's debt-to-asset ratio was reported at 15.14%, indicating a strong long-term solvency position[184]. - The company has a strong short-term solvency with a current ratio above 2.14 and a quick ratio around 1.94 during the last three years[184].

Financial Performance - Operating revenue for the first nine months reached CNY 415,044,575.52, a 40.97% increase year-on-year[6] - Net profit attributable to shareholders was CNY 21,251,164.48, a significant recovery from a loss of CNY 44,157,288.71 in the same period last year[6] - The weighted average return on net assets improved to 4.92% from -21.60% year-on-year[6] - Total revenue for the third quarter reached $415,044,575.52, a 41% increase compared to $294,414,886.06, driven by expanded production capacity and revenue growth[14] - Net profit for Q3 2019 reached ¥21,251,164.48, a significant increase of ¥65,408,453.19 compared to the previous year[16] - The total profit for Q3 2019 was ¥40,475,674.20, compared to a loss of ¥27,588,085.62 in Q3 2018[30] - The company reported a comprehensive income total of ¥37,556,930.23 for Q3 2019, recovering from a loss of ¥27,229,782.21 in Q3 2018[30] - The company's total profit for Q3 2019 was ¥39,618,787.56, compared to a loss of ¥9,098,381.23 in Q3 2018, showing a strong improvement in financial performance[32] Assets and Liabilities - Total assets increased by 102.35% to CNY 1,511,066,544.49 compared to the end of the previous year[6] - Current assets totaled CNY 1,464,343,346.67, up from CNY 700,484,680.06, indicating a growth of about 109.5% year-over-year[22] - Total liabilities decreased to CNY 204,923,063.17 from CNY 330,436,668.52, marking a reduction of about 38%[23] - The total current liabilities decreased to CNY 183,915,827.08 from CNY 312,916,758.13, a reduction of about 41.2%[23] - The company's total liabilities decreased to ¥107,150,285.89 in Q3 2019 from ¥122,315,910.21 in Q3 2018, reflecting a reduction of 12.4%[29] Shareholder Information - Net assets attributable to shareholders increased by 213.72% to CNY 1,306,143,481.32 compared to the end of the previous year[6] - The company has a total of 27,279 shareholders as of the report date[8] - The top ten shareholders hold a combined 56.84% of the total shares, with the largest shareholder owning 16.94%[8] - The company's equity attributable to shareholders surged to CNY 1,306,143,481.32, a 214% increase from CNY 416,335,038.20, primarily due to funds raised from the initial public offering[14] Cash Flow and Investments - The company reported a net cash flow from operating activities of CNY -70,674,785.45 for the first nine months, an improvement from CNY -93,628,543.69 in the previous year[6] - Cash flow from financing activities reached ¥861,985,650.72, a substantial increase of 3846% due to funds raised from the IPO[18] - The company recorded a significant cash inflow from financing activities of CNY 861,985,650.72, compared to CNY 21,843,047.94 in Q3 2018, marking an increase of over 3,800%[39] - The cash flow from sales of goods and services was CNY 193,151,836.47, an increase from CNY 160,761,949.11 in the same quarter last year, reflecting a growth of approximately 20.1%[39] Expenses and Income - Operating costs increased to $102,599,567.47, a 45% rise from $70,750,512.08, corresponding to the growth in revenue[15] - Other income increased by 106% to $47,284,446.06 from $23,002,440.10, driven by increased tax refunds and government subsidies[15] - The company reported a 395% increase in income tax expenses, totaling ¥4,370,951.50, attributed to increased profitability[16] - Sales expenses for the first three quarters of 2019 amounted to ¥90,932,979.23, up from ¥67,914,299.77 in the same period of 2018, reflecting a 33.8% increase[31] Research and Development - Research and development expenses for Q3 2019 amounted to ¥49,603,820.04, an increase of 35.6% from ¥36,568,314.10 in Q3 2018[29] - Research and development expenses for the first three quarters of 2019 totaled ¥112,302,082.61, compared to ¥84,971,200.21 in the same period of 2018, marking a 32.2% increase[31]