Financial Performance - The company's operating revenue for 2021 was CNY 309,179,200.51, representing a year-on-year increase of 17.58% compared to CNY 262,948,290.38 in 2020[20]. - The net profit attributable to shareholders for 2021 was CNY 52,499,647.08, a decrease of 29.23% from CNY 74,182,757.05 in 2020[20]. - The net profit after deducting non-recurring gains and losses was CNY 47,625,574.72, down 27.02% from CNY 65,260,974.43 in 2020[20]. - The cash flow from operating activities showed a net outflow of CNY 82,639,043.36, a significant decline compared to a net inflow of CNY 6,823,741.40 in 2020[20]. - As of the end of 2021, the total assets amounted to CNY 1,037,040,121.67, reflecting a year-on-year increase of 5.85% from CNY 979,771,614.42 in 2020[20]. - The net assets attributable to shareholders increased by 4.25% to CNY 957,059,997.81 at the end of 2021, compared to CNY 918,002,547.10 at the end of 2020[20]. - Basic earnings per share for 2021 were CNY 0.8750, down 39.55% from CNY 1.4475 in 2020[21]. - Diluted earnings per share for 2021 were CNY 0.8719, a decrease of 39.77% compared to CNY 1.4475 in 2020[21]. Dividend Distribution - The company plans to distribute cash dividends of RMB 2.63 per 10 shares, totaling RMB 15,780,000, which represents 30.06% of the net profit attributable to shareholders for 2021[6]. - The profit distribution plan is subject to approval at the 2021 annual general meeting[6]. Audit and Compliance - The company has received a standard unqualified audit report from Zhongtianyun Accounting Firm[5]. - 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 accuracy of the annual report[8]. - The company has detailed various risks and countermeasures in its annual report, emphasizing the importance of risk awareness for investors[4]. Research and Development - Research and development expenses accounted for 16.28% of operating revenue, an increase of 8.08 percentage points compared to the previous year[22]. - R&D expenses totaled 50.34 million yuan, a significant increase of 133.55% compared to the previous year, with R&D personnel accounting for 40.29% of total staff[36]. - The company launched 16 R&D projects, obtaining 5 new authorized invention patents and 7 new software copyrights during the reporting period[36]. - The company is focusing on core technology R&D in areas such as domestic platforms, edge computing, IoT, and information security[71]. Market and Industry Trends - The industrial information security market is experiencing rapid growth due to increasing network security risks and supportive government policies[51]. - The demand for information security products is significantly driven by the increasing adoption of smart devices and the trend towards domestic production, particularly in sectors like smart grid construction and industrial manufacturing[57]. - The industrial information security sector is characterized by a high demand for talent across various disciplines, including hardware design and software development, to meet the evolving market needs[56]. Strategic Initiatives - The company is focusing on industrial information security, exploring new market demands in the power industry, and investing in technology development[34]. - The company has established a competitive advantage in industrial information security through over ten years of technology accumulation, focusing on core products such as zero-trust edge IoT agents and industrial network security systems[59]. - The company is actively promoting the localization of data centers and information systems, enhancing the use of domestic products and services[61]. Supply Chain and Procurement - The procurement strategy includes both order-based and stock-based purchasing to manage supply chain risks, particularly for components with long procurement cycles[47]. - The company relies heavily on key raw materials, particularly chips, which constitute over 70% of total procurement costs, making it susceptible to supply chain disruptions[97]. Employee and Management - The company reported a total of 278 employees, with 226 in the parent company and 52 in major subsidiaries[181]. - The employee composition includes 88 production personnel, 53 sales personnel, 112 technical personnel, 9 financial personnel, and 16 administrative personnel[181]. - The company has implemented a comprehensive compensation management system that includes fixed salaries, performance pay, bonuses, and stock incentives[183]. Governance and Board Activities - The company has established specialized committees under the board, including the Audit Committee and the Nomination Committee, with specific members listed[173]. - The company has maintained a diligent approach in its governance practices, with all committee meetings resulting in unanimous approvals of proposals[176]. - The company approved the 2021 restricted stock incentive plan and its implementation management measures during the board meeting on February 1, 2021[169]. Financial Challenges - The company faced challenges with supply chain disruptions and rising component prices, impacting profitability[104]. - The company is concentrated in the power industry, making it vulnerable to policy changes and investment fluctuations in this sector, which could adversely affect operations[94]. - The company has experienced a 70.69% increase in direct labor and manufacturing costs, reflecting efforts to enhance production efficiency[112].

Financial Performance - The company's operating revenue for Q1 2022 was ¥38,604,138.81, representing a year-on-year increase of 5.38%[5] - The net profit attributable to shareholders for the same period was ¥6,068,618.33, with a growth of 6.04% compared to the previous year[5] - Total operating revenue for Q1 2022 was CNY 38,604,138.81, an increase of 5.4% compared to CNY 36,632,242.71 in Q1 2021[17] - Net profit for Q1 2022 was CNY 6,012,568.98, a 4.8% increase from CNY 5,735,380.88 in Q1 2021[19] - Basic earnings per share for Q1 2022 was CNY 0.1011, compared to CNY 0.0954 in Q1 2021, reflecting a 7.5% increase[20] Research and Development - Research and development (R&D) expenses totaled ¥13,302,529.90, accounting for 34.46% of operating revenue, an increase of 14.26 percentage points year-on-year[6] - R&D expenses significantly increased to CNY 13,302,529.90, representing an 80.5% rise from CNY 7,398,065.42 in Q1 2021[17] - The company plans to continue investing in R&D and market expansion to drive future growth[19] Cash Flow and Assets - The net cash flow from operating activities was negative at -¥15,215,968.63, indicating a decline of 7.16% compared to the previous year[5] - Cash flow from operating activities showed a net outflow of CNY -15,215,968.63, an improvement from CNY -16,388,935.30 in Q1 2021[22] - The company's cash and cash equivalents decreased to ¥75,233,692.99 from ¥83,485,248.17, representing a decline of about 9.06%[14] - The ending cash and cash equivalents balance was CNY 75,233,692.99, compared to CNY 38,830,820.99 at the end of Q1 2021[22] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,014,806,612.82, down 2.14% from the end of the previous year[6] - Total current assets amounted to ¥845,581,637.27, a decrease from ¥882,136,063.68 as of December 31, 2021, reflecting a decline of approximately 4.14%[15] - Total liabilities decreased to ¥32,221,777.00 from ¥64,086,707.73, showing a significant reduction of about 49.73%[16] - The company's equity attributable to shareholders increased to ¥966,747,469.04 from ¥957,059,997.81, marking an increase of about 1.83%[16] Inventory and Impairment - Inventory increased to ¥147,062,443.55 from ¥116,264,677.46, representing an increase of approximately 26.54%[14] - The company experienced a 154.56% increase in credit impairment losses, primarily due to the recovery of sales payments[10] Government Subsidies - The company received government subsidies amounting to ¥300,503.50, primarily from VAT software refunds[9] Accounting and Reporting - The company has implemented new accounting standards starting from 2022, affecting the financial statements from the beginning of the year[23] - The report is issued by Jiangsu YunYong Electronic Technology Co., Ltd. on April 29, 2022[23] - The financial report does not specify any performance summary or user data[23] - There are no details provided regarding future outlook or performance guidance[23] - The document does not mention any new products or technology developments[23] - There is no information on market expansion or mergers and acquisitions[23] - The report lacks any mention of new strategies[23] - The document is a formal announcement from the company's board of directors[23] - The accounting work is overseen by Zhang Yanrong, who is also the head of the accounting institution[23] - The report confirms that it is not applicable to the new accounting standards adjustment for the current year[23]

Financial Performance - The company's operating revenue for 2021 was ¥309,179,200.51, representing a 17.58% increase compared to ¥262,948,290.38 in 2020[21]. - The net profit attributable to shareholders for 2021 was ¥52,499,647.08, a decrease of 29.23% from ¥74,182,757.05 in 2020[21]. - The net profit after deducting non-recurring gains and losses was ¥47,625,574.72, down 27.02% from ¥65,260,974.43 in 2020[21]. - The cash flow from operating activities showed a significant decline, with a net outflow of ¥82,639,043.36 in 2021 compared to a positive inflow of ¥6,823,741.40 in 2020[21]. - The total assets at the end of 2021 were ¥1,037,040,121.67, reflecting a 5.85% increase from ¥979,771,614.42 at the end of 2020[21]. - The net assets attributable to shareholders increased by 4.25% to ¥957,059,997.81 at the end of 2021 from ¥918,002,547.10 at the end of 2020[21]. - Basic earnings per share for 2021 were ¥0.8750, a decrease of 39.55% from ¥1.4475 in 2020[22]. - The diluted earnings per share also decreased by 39.77% to ¥0.8719 in 2021 from ¥1.4475 in 2020[22]. - The weighted average return on net assets dropped to 5.54% in 2021, down 8.46 percentage points from 14.00% in 2020[22]. Dividend Distribution - The company plans to distribute cash dividends of RMB 2.63 per 10 shares, totaling RMB 15,780,000, which represents 30.06% of the net profit attributable to shareholders for 2021[6]. - The profit distribution plan is subject to approval at the 2021 annual general meeting[6]. - The company has confirmed that the cash dividend policy aligns with the company's articles of association and shareholder resolutions[177]. - The company will maintain the cash dividend amount per share, adjusting the total distribution if there are changes in total share capital due to convertible bonds or other factors[176]. - The company has not proposed a cash profit distribution plan despite having positive distributable profits, indicating that it is not applicable[179]. Research and Development - Research and development expenses accounted for 16.28% of operating revenue, an increase of 8.08 percentage points compared to the previous year[23]. - The company launched 16 R&D projects during the reporting period, resulting in 5 new authorized invention patents and 7 new registered software copyrights[36]. - The company is focusing on industrial information security, aiming to explore new market demands and enhance product offerings in response to the "14th Five-Year Plan" for the power industry[33]. - The company is actively developing new technologies and expanding into new industry markets, particularly in energy, finance, and transportation sectors[34]. - The company has established a comprehensive "Cloud Surge Embedded Technology Development Platform," enhancing R&D efficiency and reliability[86]. - The number of R&D personnel increased by 77.78% to 112, reflecting the company's commitment to expanding its R&D team[70]. - The company has made significant progress in developing core technologies such as domestic platforms, edge computing, IoT, and information security[70]. Market Strategy - The company plans to focus on expanding its market presence and enhancing its product development strategies in the upcoming fiscal year[21]. - The company is focusing on expanding its market presence in industrial information security while actively exploring new industries and markets[42]. - The company aims to enhance its market position in the power industry and expand into sectors like transportation, petrochemicals, finance, and smart cities[136]. - The company is committed to continuous technological innovation and product iteration to meet the evolving industrial information security demands[55]. Operational Risks and Governance - The report highlights various operational risks and corresponding mitigation strategies, emphasizing the importance of risk management[4]. - The company has confirmed no non-operational fund occupation by controlling shareholders or related parties[8]. - The company has not violated decision-making procedures for external guarantees[8]. - The company has not disclosed any special arrangements for corporate governance[8]. - The company has established a comprehensive decision-making process for profit distribution, ensuring independent directors fulfill their responsibilities[178]. - The company has established internal control systems, with no significant deficiencies reported during the reporting period[191]. Environmental, Social, and Governance (ESG) - The company emphasizes the importance of ESG, integrating it into core business operations alongside R&D, production, and sales[193]. - The company has not been listed as a key pollutant discharge unit by environmental protection authorities during the reporting period[195]. - No administrative penalties were incurred due to environmental issues during the reporting period[197]. - The company actively participates in social responsibility initiatives, including employee care activities and contributions to pandemic relief efforts[194]. - The board of directors is committed to enhancing ESG practices and information disclosure for sustainable development[194]. Employee and Management Structure - The company reported a total of 278 employees, with 226 in the parent company and 52 in major subsidiaries[170]. - The employee composition includes 88 production personnel, 53 sales personnel, 112 technical personnel, 9 financial personnel, and 16 administrative personnel[170]. - The company has implemented a compensation management system that includes fixed salaries, performance bonuses, and stock incentives, ensuring fairness and competitiveness[171]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 4.8124 million RMB[155]. - The company has established a compensation and assessment committee to review and approve remuneration policies for directors and senior management[155]. Strategic Investments - The company made equity investments totaling ¥5,000,000.00 in Jieendi Electronics Technology Co., Ltd., reflecting its strategy to expand in the technology sector[128]. - The company completed the acquisition of a 70% stake in Beijing Youqi Technology Co., Ltd. for RMB 20 million, with the payment completed by June 30, 2021[132]. - The company established Beijing Caomu Xin Technology Co., Ltd. with a total investment of RMB 28 million, holding a 51% stake[132]. - The company plans to continue its investment strategy in technology firms and expand its digital transformation initiatives[126]. Product Development and Innovation - The company achieved a product development revenue of 2,200,000.00, with a net income of 1,202,608.88, reflecting a significant growth in the security card technology sector[75]. - The company has developed data security technologies based on a zero-trust architecture, emphasizing dynamic trust to prevent data leakage and limit internal lateral movement[62]. - The company is focusing on product upgrades and new project development to meet customer needs and industry trends[70]. - The company’s encryption and security isolation device is undergoing continuous technical iterations to maintain its leading position in the market[76]. Supply Chain and Cost Management - The increase in raw material costs, particularly chips, led to a 25.78% rise in direct material costs compared to the previous year[23]. - The company relies heavily on international chip suppliers, with over 70% of raw materials being critical components, exposing it to supply chain risks[96]. - The total operating cost increased by 30.72% due to rising prices of components[110]. - The company has established a procurement system to manage raw materials, including chips and memory, with a focus on maintaining adequate stock due to long procurement cycles[48].

Report Overview [Important Notice](index=1&type=section&id=%E9%87%8D%E8%A6%81%E5%86%85%E5%AE%B9%E6%8F%90%E7%A4%BA) The board, supervisory board, and senior management guarantee report truthfulness and completeness; financial statements are unaudited - The company's board of directors, supervisory board, directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report content, free from false records, misleading statements, or major omissions, and assume individual and joint legal responsibility[2](index=2&type=chunk) - The company's principal officer, head of accounting, and head of the accounting department (accounting manager) guarantee the truthfulness, accuracy, and completeness of the financial statement information in the quarterly report[3](index=3&type=chunk) - The third-quarter financial statements are unaudited[4](index=4&type=chunk) Key Financial Data [Key Accounting Data and Financial Indicators](index=1&type=section&id=%28%E4%B8%80%29%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) Operating revenue and net profit increased this quarter, but year-to-date net profit and operating cash flow declined, with R&D investment surging Key Accounting Data and Financial Indicators (Q3 2021 and Year-to-Date) | Item | Current Period (RMB) | YoY Change in Current Period (%) | Year-to-Date (RMB) | YoY Change Year-to-Date (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 43,495,816.55 | 1.4007 | 146,617,659.20 | 1.2432 | | Net Profit Attributable to Shareholders of Listed Company | 16,207,402.66 | 120.0436 | 32,734,639.53 | -22.2325 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 9,863,358.67 | 44.0563 | 26,235,684.26 | -21.8806 | | Net Cash Flow from Operating Activities | N/A | N/A | -66,744,710.16 | -1,138.0275 | | Basic Earnings Per Share (RMB/share) | 0.2701 | 120.0436 | 0.5456 | -37.3540 | | Total R&D Investment | 12,770,136.10 | 189.5013 | 32,728,910.15 | 174.4388 | | R&D Investment as % of Operating Revenue (%) | 29.3595 | Increased by 19.0760 percentage points | 22.3226 | Increased by 14.0876 percentage points | | Total Assets (End of Current Period) | 982,796,616.98 | 0.3087 (vs. end of prior year) | | | | Total Equity Attributable to Shareholders of Listed Company (End of Current Period) | 935,714,892.42 | 1.9294 (vs. end of prior year) | | | [Non-Recurring Gains and Losses Items and Amounts](index=2&type=section&id=%28%E4%BA%8C%29%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) Non-recurring gains and losses primarily stemmed from government grants and fair value changes in financial assets, totaling **RMB 6,344,043.99**, with software VAT refunds classified as recurring Non-Recurring Gains and Losses Items and Amounts (Q3 2021 and Year-to-Date) | Item | Current Period Amount (RMB) | Year-to-Date Amount (RMB) | Description | | :--- | :--- | :--- | :--- | | Government grants recognized in current profit/loss | 6,729,233.44 | 6,864,845.56 | Listing subsidies, municipal major scientific and technological achievement transformation project subsidies, provincial Department of Industry and Information Technology new identified technologies, new products, provincial key promotion and application of new technologies, new product subsidies | | Fair value changes and investment income from transactional financial assets and liabilities | 759,347.52 | 810,863.00 | | | Less: Income tax impact | 1,124,018.99 | 1,151,356.28 | | | Impact on minority interests (after tax) | 20,517.83 | 20,517.83 | | | Total | 6,344,043.99 | 6,498,955.27 | | - Software VAT refunds (**RMB 3,991,815.21**) were classified as recurring gains and losses[10](index=10&type=chunk) [Changes and Reasons for Key Accounting Data and Financial Indicators](index=4&type=section&id=%28%E4%B8%89%29%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E3%80%81%E5%8E%9F%E5%9B%A0) Current period net profit and non-recurring net profit growth were driven by increased revenue, government grants, and investment income, while year-to-date operating cash flow and EPS declined due to higher raw material payments and increased R&D and share-based payment expenses - Net profit attributable to shareholders of the listed company for the current period increased by **120.0436%** year-on-year, primarily due to increased operating revenue, government grants, and investment income[10](index=10&type=chunk)[11](index=11&type=chunk) - Net cash flow from operating activities from the beginning of the year to the end of the reporting period decreased by **1,138.0275%** year-on-year, mainly due to increased cash payments for raw material reserves[10](index=10&type=chunk) - Basic earnings per share (RMB/share) from the beginning of the year to the end of the reporting period decreased by **37.3540%** year-on-year, primarily due to increased R&D investment, higher R&D expenses, and increased share-based payment expenses from equity incentive programs[10](index=10&type=chunk) - Total R&D investment from the beginning of the year to the end of the reporting period increased by **174.4388%** year-on-year, and by **189.5013%** in the current period, mainly due to increased R&D investment and expenses[11](index=11&type=chunk) Shareholder Information [Total Number of Common Shareholders and Top Ten Shareholders' Holdings](index=5&type=section&id=%28%E4%B8%80%29%E6%99%AE%E9%80%9A%E8%82%A1%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%92%8C%E8%A1%A8%E5%86%B3%E6%9D%83%E6%81%A2%E5%A4%8D%E7%9A%84%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of the reporting period end, the company had **6,790** common shareholders, with top shareholders Gao Nan and Jiao Fuwei acting in concert, holding **33.75%** and **22.50%** respectively, both with restricted shares - As of the end of the reporting period, the total number of common shareholders was **6,790**, with no preferred shareholders whose voting rights have been restored[13](index=13&type=chunk) Top 10 Shareholders' Holdings | Shareholder Name | Shareholder Nature | Number of Shares Held (shares) | Shareholding Ratio (%) | Number of Restricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | | Gao Nan | Domestic Natural Person | 20,250,000 | 33.75 | 20,250,000 | | Jiao Fuwei | Domestic Natural Person | 13,500,000 | 22.50 | 13,5

Financial Performance - The company reported a total revenue of 500 million CNY for the first half of 2021, representing a year-on-year increase of 20%[13]. - The company's operating revenue for the first half of 2021 was CNY 103,121,842.65, representing a year-on-year increase of 1.18%[18]. - The net profit attributable to shareholders decreased by 52.41% year-on-year, amounting to CNY 16,527,236.87[20]. - The basic earnings per share dropped by 64.30% to CNY 0.2755 compared to the same period last year[19]. - The net cash flow from operating activities decreased by 2,931.83% to -CNY 36,019,560.86, primarily due to increased procurement costs and rising personnel expenses[20]. - The total operating revenue for the first half of 2021 was CNY 103,121,842.65, a slight increase from CNY 101,922,264.91 in the same period of 2020, representing a growth of approximately 1.18%[181]. - Net profit for the first half of 2021 was CNY 16,694,205.99, down from CNY 34,727,431.04 in the same period of 2020, indicating a decline of approximately 52.0%[182]. Research and Development - Investment in R&D increased by 30% compared to the previous year, focusing on new technologies in the industrial internet sector[13]. - Research and development expenses accounted for 19.35% of operating revenue, an increase of 11.98 percentage points year-on-year[19]. - The company achieved a total R&D investment of CNY 19,958,774.05, representing a year-on-year increase of 165.60%[48]. - The total R&D investment accounted for 19.35% of the operating revenue, up from 7.37% in the previous period, indicating a significant increase in R&D focus[48]. - The number of R&D personnel increased by 102% year-on-year, reaching a total of 101 employees[49]. - The total salary for R&D personnel increased by 202.38% year-on-year, reflecting the company's efforts to attract and retain talent[49]. - The company launched 13 R&D projects during the reporting period, obtaining 5 new patents and 3 software copyrights[72]. Market Expansion and Strategy - The company expects a revenue growth forecast of 25% for the second half of 2021, driven by new product launches and market expansion strategies[13]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2022[13]. - A strategic acquisition of a local tech firm is in progress, expected to enhance the company's technological capabilities and market reach[13]. - The company is focusing on expanding its product line in industrial information security, including new products such as zero-trust edge IoT agents and next-generation automated encryption terminals[75]. - The company is actively investing in domestic software and hardware platforms, encryption technology, and self-controlled fields, launching competitive products in these areas[74]. Product Development and Innovation - The company has launched two new products in the IoT space, which are projected to contribute an additional 50 million CNY in revenue by year-end[13]. - The company is currently developing several projects, including a trusted encryption module with an expected total investment of CNY 3,630,000[52]. - The trusted edge computing gateway project has an expected total investment of CNY 4,180,000, focusing on enhancing system response times and security measures[52]. - The company is developing a new generation of smart archive management systems, which will utilize RFID for dynamic management of document circulation[58]. - The company aims to enhance its product offerings by integrating trusted technology into existing systems, creating a self-defensive environment against cyber threats[53]. Financial Management and Risks - The company has identified potential risks related to supply chain disruptions and is implementing measures to mitigate these risks[13]. - The company faces risks related to technology iteration and potential failures in new product development, which could adversely affect its operating performance[80]. - The company faces risks related to the concentration of its business in the power industry, which is subject to policy changes[82]. - There is uncertainty and potential loss risk associated with the company's expansion into non-power sectors such as energy and finance[84]. - The company is exposed to procurement risks, particularly regarding chip supply, which constitutes a significant portion of its raw material costs[86]. Environmental Compliance - The company has maintained compliance with environmental regulations, with no pollution incidents reported during the reporting period[110]. - The company has established a third-party monitoring mechanism to ensure the effectiveness of its environmental protection measures[110]. - The company is actively promoting clean production and the implementation of environmental protection systems[110]. - The company has adopted ISO9001 and ISO14001 management systems to meet production and environmental objectives[110]. Shareholder Commitments and Governance - The company has committed to a share lock-up period of 36 months for major shareholders, effective from July 10, 2020, with compliance confirmed[113]. - The company guarantees that there are no fraudulent activities associated with its IPO and will initiate a buyback of all newly issued shares if found otherwise[126]. - The company will ensure that any share reduction prices will not be lower than the adjusted IPO price following any corporate actions like dividends or stock splits[122]. - The company emphasizes long-term holding intentions from major shareholders, indicating confidence in business development[121]. - The company commits to repurchase all newly issued shares if it fails to meet listing conditions, with a buyback price not lower than the issuance price plus bank interest[127].

Financial Performance - Operating revenue for the period was CNY 36,632,242.71, down 13.35% year-on-year[5] - Net profit attributable to shareholders was CNY 5,634,295.64, a decrease of 52.93% compared to the same period last year[5] - Basic earnings per share were CNY 0.0954, reflecting a decline of 65.50% year-on-year[5] - The net cash flow from operating activities was CNY -16,388,935.30, representing a decrease of 21.56% year-on-year[5] - Total operating revenue for Q1 2021 was CNY 36,632,242.71, a decrease of 13.0% compared to CNY 42,273,804.93 in Q1 2020[30] - Net profit for Q1 2021 was CNY 5,735,380.88, down 54.0% from CNY 12,444,333.79 in Q1 2020[31] - The total comprehensive income for Q1 2021 was CNY 8,500,499.38, compared to CNY 8,463,930.29 in Q1 2020, showing a slight increase of 0.4%[35] Assets and Liabilities - Total assets at the end of the reporting period were CNY 969,266,233.31, a decrease of 1.07% compared to the end of the previous year[5] - Cash and cash equivalents decreased by 88.66% to ¥38,830,820.99 from ¥342,489,900.41 due to the use of idle funds for cash management[13] - The company reported a total asset value of ¥969,266,233.31 as of March 31, 2021, slightly down from ¥979,771,614.42 at the end of 2020[21] - The total liabilities decreased to ¥43,741,707.47 as of March 31, 2021, from ¥61,769,067.32 at the end of 2020, indicating improved financial stability[23] - The company's total liabilities amounted to CNY 61,769,067.32, compared to CNY 63,805,037.72 at the beginning of the year, indicating a reduction in liabilities[44] Shareholder Information - The total number of shareholders at the end of the reporting period was 7,988[10] - The top shareholder, Gao Nan, held 20,250,000 shares, representing 33.75% of the total shares[11] - The company’s equity attributable to shareholders increased to ¥923,725,345.03 as of March 31, 2021, compared to ¥918,002,547.10 at the end of 2020, reflecting retained earnings growth[24] Research and Development - Research and development expenses accounted for 20.20% of operating revenue, an increase of 12.19 percentage points compared to the previous year[6] - Research and development expenses increased by 118.47% to ¥7,398,065.42 from ¥3,386,294.70, reflecting increased investment in R&D personnel and projects[15] - Research and development expenses rose significantly to CNY 7,398,065.42 in Q1 2021, compared to CNY 3,386,294.70 in Q1 2020, reflecting a 118.5% increase[31] Cash Flow Management - The company's cash management strategy involved utilizing idle funds for investment, leading to a significant cash recovery of ¥328,000,000.00 during the reporting period[17] - The company experienced a net cash outflow of CNY 304,211,802.86 in Q1 2021, compared to CNY -15,684,153.48 in Q1 2020, indicating a significant increase in cash outflow[37] - The net cash flow from operating activities was negative at CNY -16,388,935.30 for Q1 2021, compared to CNY -13,482,631.18 in Q1 2020[36] Other Financial Metrics - The weighted average return on net assets was 0.6215%, a decrease of 4.4 percentage points compared to the previous year[5] - The company reported non-recurring gains of CNY 88,502.29 during the period[9] - The company reported a significant increase in credit impairment losses, which rose by 322.42% to ¥1,219,621.18 from ¥288,723.98, indicating higher bad debt provisions[15] - The company reported a significant increase in cash received from sales, totaling CNY 58,496,052.32 in Q1 2021, compared to CNY 37,369,763.48 in Q1 2020, an increase of 56.5%[36] Operational Changes - The company has adopted new leasing standards starting in 2021, which has resulted in the recognition of lease liabilities and corresponding right-of-use assets[44] - The company is focusing on improving cash flow management and reducing operational losses in the upcoming quarters[39] - There are no indications of market expansion or mergers and acquisitions in the current report[49]

Financial Performance - The company achieved operating revenue of CNY 262,948,290.38 in 2020, representing a year-on-year increase of 4.81%[22]. - The net profit attributable to shareholders was CNY 74,182,757.05, an increase of 13.35% compared to the previous year[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 65,260,974.43, up by 2.47% year-on-year[22]. - The company's total assets grew by 227.86% to CNY 979,771,614.42 at the end of 2020[23]. - The net assets attributable to shareholders increased by 279.78% to CNY 918,002,547.10[23]. - The basic earnings per share remained at CNY 1.45, with a slight decrease of 0.47% compared to the previous year[24]. - The net profit attributable to shareholders for 2020 was CNY 12,444,333.79, a decrease from CNY 22,283,097.25 in 2019, representing a decline of approximately 44.0%[28]. - The net profit after deducting non-recurring gains and losses was CNY 11,968,988.29, compared to CNY 14,768,201.16 in 2019, indicating a decrease of about 18.9%[28]. - The cash flow from operating activities was negative at CNY -13,482,631.18, contrasting with a positive cash flow of CNY 14,754,584.56 in the previous year[28]. - The company reported a significant decline in cash flow from operating activities, down 87.82% to 6.82 million yuan[129]. Research and Development - The total R&D investment for the year was approximately ¥21.55 million, representing a 29.11% increase from the previous year's ¥16.69 million[80]. - R&D investment accounted for 8.20% of total operating revenue, up from 6.65% in the previous year, marking an increase of 1.55 percentage points[81]. - The number of R&D personnel increased by 31.25% to 63, with total compensation for R&D staff rising by 20.64%[82]. - The company focused on enhancing R&D in trusted computing technology and industrial internet zero-trust technology, expanding its R&D team accordingly[82]. - The company has developed a series of intelligent sensors for IoT applications, improving accuracy and reliability in data perception[77]. - The company is actively researching and developing new technologies such as secure operating systems and zero-trust technology to integrate into future products and services[111]. Market and Industry Trends - The global industrial information security market was valued at $16.401 billion in 2019 and is projected to grow to $29.76 billion by 2026, with a CAGR of 8.83%[44]. - The electric power industry is expected to see a rapid growth in industrial information security, with a CAGR of 13.38% due to compliance standards[44]. - The industrial information security market in China was about 9.46 billion yuan in 2018, representing a 30% increase from 2017, and is expected to reach 22.8 billion yuan by 2021, maintaining a growth rate of over 30%[49]. - The company anticipates significant market opportunities driven by increasing cybersecurity threats and regulatory requirements in the industrial sector[42]. - The industrial internet market in China reached approximately 467.7 billion yuan in 2017, growing by 13.5% compared to 2016, and is projected to reach 692.9 billion yuan by 2020, with an average annual growth rate of 13.93%[48]. Corporate Governance and Compliance - The company has received a standard unqualified audit report from Zhongtianyun Accounting Firm[4]. - The board of directors has confirmed the accuracy and completeness of the annual report, ensuring no misleading statements or significant omissions[4]. - The company has not indicated any special arrangements for corporate governance or significant matters that require disclosure[8]. - The company has outlined specific commitments regarding share transfer restrictions for its major shareholders and key personnel, ensuring stability in shareholding[176]. - The company is committed to adhering to the regulations regarding share transfers and lock-up periods, ensuring compliance with market standards[176]. Profit Distribution - The proposed profit distribution plan for 2020 includes a cash dividend of RMB 3.71 per 10 shares, totaling RMB 22,260,000, which accounts for 30.01% of the net profit attributable to shareholders[5]. - The cash dividend distribution plan for 2020 has been approved by the board and will be submitted for shareholder approval[168]. - The company plans to implement a cash dividend policy, distributing at least 10% of the annual distributable profit in cash[200]. - The company prioritizes cash dividends, with a minimum cash distribution ratio of 80% for mature stages without major capital expenditures, 40% for mature stages with major expenditures, and 20% for growth stages with major expenditures[199]. Strategic Partnerships and Collaborations - The company has formed strategic partnerships with well-known domestic chip manufacturers and operating system vendors, enhancing its technological capabilities and promoting the rapid development of domestic information platforms[66]. - The company is collaborating with the Shanghai Institute of Microsystem and Information Technology to develop stable and reliable core resistance modules[92]. - The company will strengthen cooperation with system integrators in various industries, including rail transport and finance, to expand its market presence[164]. Risks and Challenges - The company faces risks related to core technology personnel turnover, which could impact project timelines and R&D capabilities[116]. - The company is exposed to risks from concentrated business in the electric power industry, which is subject to policy changes and investment scale fluctuations[118]. - The company’s procurement of raw materials, particularly chips, is critical, with over 70% of total procurement costs tied to key components, making it vulnerable to supply chain disruptions[124]. - The company is facing intensified competition in the information security industry, necessitating continuous innovation and product upgrades[128].

Financial Performance - Operating income for the first nine months rose by 5.93% to CNY 144,817,262.18 compared to the same period last year[6] - Net profit attributable to shareholders increased by 35.69% to CNY 42,092,973.72 compared to the same period last year[6] - Basic earnings per share rose by 26.09% to CNY 0.87[7] - Total operating revenue for the first three quarters of 2020 was ¥144,817,262.18, an increase of 5.1% compared to ¥136,715,013.47 in the first three quarters of 2019[25] - Total profit for the first three quarters of 2020 reached ¥49,332,958.55, compared to ¥35,440,756.32 in the same period of 2019, an increase of 39.1%[27] - The company’s total profit for Q3 2020 was CNY 8,513,423.88, a decrease of 62.8% compared to CNY 22,873,129.98 in Q3 2019[30] Assets and Liabilities - Total assets increased by 207.34% to CNY 918,448,025.11 compared to the end of the previous year[6] - The total equity attributable to the parent company increased by 266.56% from RMB 241,722,620.25 to RMB 886,064,650.56, primarily due to the IPO[13] - Current liabilities decreased to ¥32,383,374.55 from ¥57,119,908.81, a reduction of approximately 43.4%[20] - The company reported a total current asset of ¥805,390,656.26, up from ¥191,159,667.43, indicating a growth of approximately 320.5%[22] - Total assets as of September 30, 2020, were ¥298,842,529.06, unchanged from the beginning of the year, indicating stability in asset management[39] Cash Flow - Net cash flow from operating activities decreased by 60.75% to CNY 6,429,955.78 compared to the same period last year[6] - The company generated a net cash flow from operating activities of CNY 6,429,955.78 in the first nine months of 2020, a decline of 60.7% from CNY 16,381,663.38 in the same period of 2019[32] - Cash and cash equivalents decreased by 35.56% from RMB 73,953,733.25 to RMB 47,656,140.30 due to idle funds being invested in financial products[12] - The ending cash and cash equivalents balance for the third quarter of 2020 was ¥44,672,060.56, down from ¥54,986,909.54 at the beginning of the period, a decrease of approximately 18.5%[36] Shareholder Information - The total number of shareholders reached 9,976[11] - The top shareholder, Gao Nan, holds 33.75% of the shares, totaling 20,250,000 shares[11] Research and Development - Research and development expenses accounted for 8.24% of operating income, an increase of 1.53 percentage points[7] - Research and development expenses rose by 30.03% from RMB 9,171,595.66 to RMB 11,925,758.50, attributed to an increase in R&D personnel[13] - Research and development expenses increased to ¥4,411,080.39 in Q3 2020, up 38.0% from ¥3,195,897.09 in Q3 2019[25] Government Subsidies and Investments - The company received government subsidies amounting to CNY 974,576.15 during the reporting period[9] - The company received RMB 596,905,728.96 from the initial public offering (IPO), marking a significant inflow compared to a net cash outflow of RMB 10,314,983.26 in the previous period[15] - The company has committed RMB 10 million as a limited partner in a new investment fund focused on hard technology enterprises, with a total fund size of RMB 70 million[15] Inventory and Accounts Receivable - Accounts receivable decreased by 52.32% from RMB 11,669,522.00 to RMB 5,564,228.36, primarily due to a reduction in customer notes[12] - Inventory increased by 34.94% from RMB 44,082,288.86 to RMB 59,483,201.79, mainly due to increased purchase orders[12] - Accounts receivable decreased to ¥64,703,107.81 from ¥70,340,402.46, a decline of about 8.9%[22] - Inventory increased significantly to ¥59,008,406.44 from ¥41,653,058.38, marking a rise of approximately 41.5%[22]

Financial Performance - The company reported a revenue of 500 million RMB for the first half of 2020, representing a 20% increase compared to the same period last year[14]. - The company has set a revenue guidance of 1.2 billion RMB for the full year 2020, indicating a projected growth of 25% year-over-year[14]. - The company's operating revenue for the first half of the year reached ¥101,922,264.91, representing a year-on-year increase of 30.77%[21]. - Net profit attributable to shareholders increased by 202.80% to ¥34,727,431.04, primarily due to a higher proportion of revenue from information security products[23]. - Basic earnings per share rose by 202.75% to ¥0.7717, reflecting the significant growth in net profit during the reporting period[24]. - The company reported a total revenue of 20,840,500.00 RMB, with a net profit of 7,514,678.11 RMB for the reporting period[59]. - The company achieved a gross profit margin of approximately 30.0% for the first half of 2020, compared to 14.5% in the same period of 2019[157]. - The net profit for the first half of 2020 reached RMB 28,496,283.94, a significant increase of 176.5% from RMB 10,309,766.88 in the first half of 2019[162]. Research and Development - The company is investing 100 million RMB in R&D for new technologies, focusing on enhancing cybersecurity solutions[14]. - Research and development expenses accounted for 7.37% of operating revenue, a slight decrease of 0.3 percentage points from the previous year[22]. - The company reported a total R&D investment of ¥7,514,678.11, which accounts for 7.37% of its operating revenue[48]. - The R&D personnel count stands at 50, accounting for 35.46% of the total workforce, with an average salary of 100,588.12 RMB[62]. - The company has developed a cross-platform development system technology to support various industrial applications, enhancing device security and reducing costs[44]. - The company’s R&D efforts are focused on enhancing the sensitivity, reliability, and accuracy of IoT sensors, applicable in various sensing fields[45]. - The company is actively developing a domestic situational awareness platform and secure operating systems to integrate into future products[72]. Market and Product Development - New product launches in the industrial IoT sector contributed to 30% of total sales in the first half of 2020[14]. - The company focuses on industrial internet and information security products, with applications in sectors such as electricity, energy, finance, and railways[29]. - The company launched new products including edge IoT agents and a new generation of intelligent TCU, enhancing its product line and market share[72]. - The company is focusing on expanding its market presence in the industrial automation sector, leveraging its proprietary technology for secure and efficient data transmission[55]. - The company has completed the development of multiple products in the smart archive cabinet and control product category, preparing for market promotion[74]. Financial Position and Assets - The company's total assets increased by 3.59% to ¥309,585,095.57 compared to the end of the previous year[21]. - The company's total current assets reached RMB 257,890,101.22, compared to RMB 248,094,652.90 at the end of 2019, indicating an increase of about 3.2%[150]. - Total liabilities decreased to RMB 33,135,044.28 from RMB 57,119,908.81, a reduction of about 42%[152]. - The company's equity attributable to shareholders rose to RMB 276,450,051.29 from RMB 241,722,620.25, reflecting an increase of approximately 14.4%[152]. Risks and Challenges - The company has identified potential risks related to supply chain disruptions and is taking measures to mitigate these risks[14]. - The company faces risks related to its business concentration in the electric power industry, which is influenced by policies and investment scales from major clients like State Grid and Southern Grid[77]. - The company’s main raw materials account for over 70% of total procurement, with significant reliance on international chip suppliers, exposing it to supply and price volatility risks[85]. - The company faces long-term risks of client loss due to potential integration or self-development by downstream customers in the industrial information security sector[87]. Compliance and Governance - The board emphasized the commitment to maintaining transparency and accuracy in financial reporting, ensuring compliance with regulations[14]. - The company held 1 shareholders' meeting, 2 board meetings, and 1 supervisory meeting, all conducted in compliance with legal regulations, ensuring effective management[76]. - The company has established long-term commitments to resolve related party transactions and competition issues[101]. - The company guarantees that there are no fraudulent activities related to its initial public offering (IPO) and listing on the Sci-Tech Innovation Board[113]. Shareholder Commitments - The company has commitments from actual controllers and shareholders to not transfer or manage shares for 36 months post-IPO[99]. - Share lock-up period for key personnel is set for 36 months from the IPO date, with specific conditions for share transfer[102]. - The company will not propose share buybacks during the lock-up period[103]. - The company aims to maintain a long-term holding strategy for its stock, reflecting confidence in its business development[108]. Environmental and Social Responsibility - The major pollutants from the company's operations include waste gas, wastewater, and solid waste, with measures in place for their treatment and disposal[135]. - The company has implemented ISO14001 environmental management system certification, ensuring compliance with environmental regulations[135].