Financial Performance - The company achieved operating revenue of CNY 427.91 million in 2021, a decrease of 13.72% compared to the previous year[25]. - The net profit attributable to shareholders was CNY 36.63 million, down 33.88% year-on-year, primarily due to reduced operating revenue and decreased government subsidies[25]. - The net cash flow from operating activities was -CNY 112.42 million, an improvement of CNY 57.54 million from the previous year[25]. - Total assets at the end of 2021 were CNY 1,201.38 million, an increase of 17.22% year-on-year, while net assets attributable to shareholders rose by 46.91% to CNY 740.36 million[25]. - Basic earnings per share decreased by 41.27% to CNY 0.37, with diluted earnings per share also at CNY 0.37[24]. - The company reported a total revenue of 3,600.00 million RMB, an increase from 3,308.68 million RMB in the previous period, representing a growth of approximately 8.8%[79]. - The company's operating revenue for the reporting period was approximately ¥427.91 million, a decrease of 13.72% compared to ¥495.97 million in the previous year[101]. - The company's operating costs decreased by 15.68% to approximately ¥307.23 million from ¥364.35 million in the previous year[101]. Dividend and Share Capital - The company plans to distribute a cash dividend of 1 RMB per 10 shares, totaling 11,637,340 RMB, which accounts for 31.77% of the net profit attributable to shareholders for the year[6]. - As of December 31, 2021, the total share capital of the company was 116,373,400 shares[6]. Audit and Compliance - The company has received a standard unqualified audit report from Lixin Certified Public Accountants[5]. - There are no non-operating fund occupations by controlling shareholders or related parties[8]. - The company has not violated decision-making procedures for external guarantees[8]. - The company has not faced any issues with a majority of directors being unable to ensure the authenticity and completeness of the annual report[8]. - The company emphasizes the importance of reading the forward-looking statements and associated investment risks[7]. - The company has no special arrangements for corporate governance[8]. Research and Development - The company's R&D expenditure accounted for 7.80% of operating revenue, an increase of 2 percentage points from the previous year[24]. - Research and development expenses increased by 16% year-on-year to 33.36 million yuan, focusing on core technologies such as video image processing, cloud computing, and artificial intelligence[37]. - The total R&D expenditure for the year was approximately ¥33.36 million, representing a 16% increase from the previous year's ¥28.76 million[71]. - The company applied for a total of 32 patents during the reporting period, including 29 invention patents and 3 design patents[69]. - The company has a total of 79 authorized patents, including 59 invention patents, 8 utility model patents, and 12 design patents[70]. Market and Business Strategy - The company aims to become a leading provider of public safety management information services in China over the next three to five years[124]. - The company plans to expand its business coverage and explore government service purchase models in regional markets[124]. - The company is focusing on transitioning from project construction to platform operation, leveraging opportunities in government digital transformation[124]. - The company intends to integrate upstream and downstream supply chain resources and expand its ecosystem partnerships to replicate successful software sales models and improve operational performance[126]. - The company will actively participate in establishing industry standards and develop unique scenario solutions to capture market opportunities in traffic management[125]. Governance and Management - The company is committed to maintaining transparency in governance and ensuring equal rights for all shareholders, particularly minority shareholders, during decision-making processes[130]. - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with legal and regulatory requirements[131]. - The company has established a performance evaluation and incentive mechanism linked to the achievement of annual operational goals[134]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate communication with investors[135]. - The company respects the rights of stakeholders and aims to balance the interests of shareholders, employees, and society[136]. Environmental and Social Responsibility - The company actively promotes energy conservation and environmental protection, implementing a paperless office initiative and developing platforms to support pandemic management[176]. - The company does not fall under the category of key pollutant discharge units and has not faced any administrative penalties related to environmental issues during the reporting period[177][178]. - The company has established a robust ESG governance structure, focusing on improving management levels and enhancing public image in the capital market[176]. - The company has implemented energy-saving and emission-reduction measures, promoting water and electricity conservation among employees[180]. Employee and Talent Management - The number of R&D personnel increased to 179, accounting for 37.76% of the total workforce, up from 28.77% in the previous period[82]. - Total compensation for R&D personnel reached 2,877.60 million RMB, compared to 1,975.67 million RMB in the previous period, indicating a significant investment in talent[82]. - The company has developed a comprehensive annual training plan to ensure sustainable talent development, utilizing both internal and external training resources[168]. - The company has a total of 474 employees, with 300 in the parent company and 174 in major subsidiaries[165]. Financial Management - Cash and cash equivalents increased by 48.13% to 134,171,294.76 RMB due to the arrival of raised funds[117]. - Trade financial assets rose by 69.90% to 120,795,993.69 RMB, primarily due to increased purchases of bank wealth management products[117]. - Accounts receivable increased by 34.49% to 344,781,576.02 RMB, attributed to a significant difference between collected amounts and contractual receivables[117]. - Long-term receivables increased by 164.17% to 157,583,170.19 RMB due to new installment projects[118]. Technology and Innovation - The company achieved CMMI Level 5 certification, indicating advanced capabilities in software process organization and technology development[188]. - The company has developed the "X-Magic Cube" data visualization tool, which is considered industry-leading and allows for rapid customization based on client needs[84]. - The company has successfully implemented the "epidemic visualization information control platform" during the COVID-19 pandemic, enhancing its service quality and responsiveness[85].

Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion yuan for the first half of 2021, representing a year-on-year growth of 25%[1]. - The company's operating revenue for the first half of 2021 was RMB 181,953,288.26, an increase of 29.31% compared to RMB 140,713,365.07 in the same period last year[19]. - The net profit attributable to shareholders of the listed company was RMB 11,325,082.98, reflecting a growth of 16.27% from RMB 9,740,373.59 year-on-year[21]. - The net profit after deducting non-recurring gains and losses increased by 45.18%, reaching RMB 10,385,881.50 compared to RMB 7,153,675.36 in the previous year[19]. - The basic earnings per share increased by 16.31% to RMB 0.1298 from RMB 0.1116 year-on-year[20]. - The gross profit margin for the reporting period was 26.27%, an increase of 1.93 percentage points compared to the previous year[21]. - The company achieved a sales revenue of RMB 181.95 million, representing a year-on-year growth of 29.31%[68]. - The net profit attributable to shareholders was RMB 11.33 million, with a year-on-year increase of 16.27%[68]. - The total comprehensive income for the current period was CNY 11,325,082.98, reflecting a significant increase compared to the previous period[158]. Research and Development - The company emphasized its commitment to R&D, allocating 15% of its revenue to innovation and technology development[1]. - Research and development expenses accounted for 7.30% of operating revenue, up from 6.87% in the previous year, indicating a focus on innovation[20]. - The company reported a total R&D investment of ¥13,287,578.97, an increase of 37.49% compared to ¥9,664,587.23 in the previous period[52]. - The number of R&D personnel increased to 157, accounting for 35.28% of the total workforce, up from 27.66%[62]. - The company holds a total of 59 authorized patents, including 43 invention patents, 8 utility model patents, and 8 design patents[49]. - The company has developed several key software platforms, including the "Public Security Big Data Comprehensive Application Platform" and "Intelligent Traffic Comprehensive Control Platform" to enhance public safety management[35]. - The company is focused on R&D projects including a comprehensive public security big data application platform and a comprehensive traffic management platform[75]. Market Expansion and Strategy - The company is expanding its market presence, targeting new regions with a planned investment of 200 million yuan in marketing and infrastructure[1]. - A strategic acquisition of a smaller tech firm was announced, expected to enhance the company's capabilities in AI and big data analytics[1]. - The company has established itself as a leading provider of public safety information services in Hubei and Central China, with plans for further market expansion[32]. - The public safety information technology market is expanding, driven by new infrastructure developments such as 5G, artificial intelligence, and big data[28]. - The company plans to expand its product coverage to various police departments, including intelligence centers and anti-terrorism units[71]. Financial Health and Cash Flow - The company's cash flow from operating activities improved by 39.47%, with a net cash flow of -RMB 89,171,286.26, compared to -RMB 147,326,308.91 in the same period last year[19]. - The net cash flow from operating activities improved by 39.47% year-on-year, amounting to -¥89,171,286.26, as sales collections and procurement payments rebounded from low levels in the previous year[88]. - Cash and cash equivalents decreased by 51.31% year-on-year to ¥44,101,485.80, attributed to payments for procurement and bank loan repayments[92]. - The net cash flow from investing activities surged by 2,304.51% year-on-year to ¥45,292,735.77, primarily due to the redemption of structured deposits purchased in the previous year[89]. - The net cash flow from financing activities decreased by 96.54% year-on-year to ¥1,145,589.15, mainly due to the repayment of maturing bank loans[89]. Risks and Challenges - The company faces risks related to seasonal sales patterns, with revenue primarily concentrated in the second half of the year due to budget cycles of public security departments[76]. - The company is experiencing high accounts receivable overdue ratios, which may pressure cash flow and operational performance[80]. - The company is monitoring the impact of macroeconomic factors, including the ongoing COVID-19 pandemic, on government procurement for public security information systems[83]. Shareholder Commitments and Governance - The lock-up period for shares allocated to the Zhongke Tongda Asset Management Plan is 12 months from the date of listing on the Shanghai Stock Exchange, starting from June 10, 2021[102]. - The actual controller Wang Kai and other shareholders committed not to transfer or entrust the management of their shares for 36 months from the date of listing, with a maximum annual transfer limit of 25% of their total shares during their tenure[102]. - The company has implemented a strategy to maintain shareholder confidence through these lock-up agreements, promoting long-term stability[102]. - The commitments made by shareholders and management are designed to protect the interests of the company and its investors during the initial public offering phase[103]. - The company guarantees that there are no fraudulent activities related to its IPO and will repurchase shares if it fails to meet listing conditions due to deceptive practices[105]. Operational Efficiency - The company is focusing on enhancing its cloud computing services, with a projected increase in cloud service revenue by 40% in the next fiscal year[1]. - The company is committed to enhancing its service quality and operational efficiency through its "Intelligent Operation and Maintenance Management Platform"[37]. - The company aims to achieve a 20%-30% increase in resource utilization efficiency through its video management system[57]. - The company is leveraging microservices and big data analysis technologies to create a comprehensive operational management system[59]. Accounting and Financial Reporting - The financial statements are prepared based on the going concern assumption, indicating no significant doubts about the company's ability to continue operations for at least 12 months from the reporting date[171]. - The company adheres to the accounting standards set forth by the Ministry of Finance, ensuring that the financial statements accurately reflect its financial position and performance[174]. - The company recognizes income, expenses, and cash flows from subsidiaries from the acquisition date to the reporting date in the consolidated financial statements[181].