Group 1: Company Overview - Puyuan Information Technology Co., Ltd. is a leading provider of middleware products and solutions in China, focusing on industries such as finance, telecommunications, and energy [1] - The company aims to support the development of a self-controllable software infrastructure for its clients, enhancing their digital transformation capabilities [1] Group 2: Revenue Structure - In 2021, the revenue from the software infrastructure platform business reached 304 million CNY, accounting for 69.63% of total revenue [2] - Revenue from application development based on the software infrastructure platform was 133 million CNY, representing 30.37% of total revenue [2] Group 3: Market Position and Competitive Advantage - The company's products have been validated in over a thousand large-scale, critical projects across key industries, showcasing their performance, maturity, and reliability [2] - Puyuan's innovative product positioning, diverse product portfolio, and unique customization capabilities are key differentiators that enable the company to benefit from the growing market for digital transformation [2] Group 4: Industry Trends and Future Outlook - The financial sector is expected to see rapid growth in IT investment and digital transformation, driven by the ongoing push for self-controllable systems [3] - The company has established long-term trust with major clients in finance and telecommunications, which is a significant competitive advantage [3] Group 5: Talent Management - The company implements systematic talent incentive measures, including stock option plans and training programs, to build a professional and capable workforce [3]

普元信息技术股份有限公司 投资者关系活动记录表 （2022 年 4 月） 证券简称：普元信息 证券代码：688118 | --- | --- | |---------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | 特定对象调研 分析师会议 媒体采访 业绩说明会 | | 投资者关系活动类别 参与单位名称 | 新闻发布会 路演活动 现场参观 其他 电话会议 国盛证券有限责任公司 刘高畅、陈芷婧、孙行臻 信达澳银基金管理有限公司 徐聪 | | | 泰康资产管理有限责任公司 游涓洋 ...

普元信息技术股份有限公司 投资者关系活动记录表 （2022 年 6 月） 证券简称：普元信息 证券代码：688118 | --- | --- | --- | --- | |--------------------|-------------------------------|------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------| | 投资者关系活动类别 | 特定对象调研 \n 新闻发布会 | 分析师会议 \n路演活动 | 媒体采访 业绩说明会 \n现场参观 其他 腾讯会议 | | 参与单位名称 | 华创证券有限责任公司 | 王文龙 | | | 时间 | 2022 年 6 月 28 日 | | | | 地点 | 腾讯会议 | ...

Financial Performance - The company's operating revenue for Q3 2022 was ¥112,271,597.01, representing a year-on-year increase of 23.24%[5] - The net profit attributable to shareholders was -¥831,808.33, a decrease of 111.83% compared to the same period last year[5] - The basic earnings per share for the reporting period was -¥0.009, a decline of 112.24% compared to the same period last year[6] - Net profit for Q3 2022 was -¥28,352,208.94, a significant decline from -¥3,118,819.90 in Q3 2021[22] - Net profit for the first three quarters of 2022 was CNY -7,831,865.68, down from CNY 10,827,799.51 in the same period of 2021, indicating a significant decrease[32] - The company reported a total comprehensive income of -CNY 7,831,865.68 for the third quarter of 2022, compared to CNY 10,827,799.51 in the same quarter of 2021, indicating a decline in profitability[33] Research and Development - The R&D investment totaled ¥20,556,528.36, accounting for 18.31% of operating revenue, a decrease of 2.69 percentage points year-on-year[6] - Research and development expenses increased to ¥57,220,975.69 in Q3 2022, compared to ¥46,613,446.64 in Q3 2021, reflecting a growth of 22.5%[21] - Research and development expenses for the first three quarters of 2022 were CNY 45,997,150.68, compared to CNY 43,141,448.24 in the same period of 2021, indicating an increase of approximately 4.3%[31] Cash Flow and Liquidity - The net cash flow from operating activities for the year-to-date was -¥85,763,839.59, indicating a significant cash outflow[6] - The net cash flow from operating activities for the first three quarters of 2022 was -CNY 80,667,349.33, compared to -CNY 20,519,911.39 in the same period of 2021, indicating a decline in operational performance[33] - Cash and cash equivalents at the end of Q3 2022 stood at ¥308,927,533.33, compared to ¥91,306,561.78 at the end of Q3 2021[26] - The company's cash and cash equivalents were RMB 311,091,759.33, down from RMB 549,928,771.91 at the end of 2021, representing a decline of approximately 43.4%[16] - The cash outflow from operating activities totaled CNY 384,382,020.86, up from CNY 321,641,193.21 in the previous year, representing an increase of approximately 19.5%[33] Assets and Liabilities - The total assets at the end of the reporting period were ¥977,229,437.55, reflecting a decrease of 9.47% from the end of the previous year[6] - As of September 30, 2022, the company's total assets amounted to RMB 977,229,437.55, a decrease from RMB 1,079,482,890.38 at the end of 2021[16] - The company's total liabilities decreased to RMB 133,606,181.48 from RMB 154,220,943.45, reflecting a decline of approximately 13.3%[18] - Total liabilities as of September 30, 2022, were CNY 179,830,153.39, down from CNY 220,531,095.77 in the previous year[29] - The company's total equity attributable to shareholders decreased to RMB 843,623,256.07 from RMB 925,261,946.93, a decline of approximately 8.8%[18] Inventory and Receivables - The inventory increased significantly to RMB 65,948,556.97 from RMB 25,674,648.59, marking an increase of about 157.5%[16] - The company's accounts receivable rose slightly to RMB 195,412,855.25 from RMB 192,057,001.78, indicating a growth of approximately 1.8%[16] - Accounts receivable increased slightly to CNY 197,725,646.40 from CNY 193,371,763.74, showing a growth of about 2.3%[28] - The company's other receivables increased to RMB 6,931,678.27 from RMB 4,120,213.74, representing an increase of about 68.3%[16] Investment Activities - The company reported a total cash inflow from investment activities of ¥1,437,749,007.54 in the first three quarters of 2022, up from ¥1,332,052,996.90 in the previous year[25] - The net cash flow from investment activities was -¥89,386,236.97 in Q3 2022, an improvement from -¥209,384,300.47 in Q3 2021[25] - The total cash inflow from investment activities was CNY 1,437,749,007.54, an increase from CNY 1,332,048,371.43 in the previous year, marking an increase of about 7.9%[34] - The net cash flow from investment activities was -CNY 92,386,236.97, an improvement from -CNY 209,388,925.94 in the same period of 2021, showing a reduction in losses[34] Employee Costs - The company paid CNY 102,756,044.17 to employees in the first three quarters of 2022, which is a significant increase from CNY 63,430,175.95 in the same period of 2021, reflecting higher labor costs[33]

Financial Performance - The company reported a total revenue of RMB 100 million for the first half of 2022, representing a year-on-year increase of 15%[13]. - The net profit for the first half of 2022 was RMB 20 million, showing a growth of 10% compared to the same period last year[13]. - The company's operating revenue for the first half of the year was approximately CNY 136.68 million, representing a year-on-year increase of 9.96% compared to CNY 124.30 million in the same period last year[21]. - The net profit attributable to shareholders of the listed company was a loss of approximately CNY 27.52 million, an increase in loss of CNY 17.37 million compared to a loss of CNY 10.15 million in the previous year[21]. - The basic earnings per share for the period was CNY -0.299, compared to CNY -0.107 in the same period last year[20]. - The company reported a total revenue of 1,000 million, with a net profit of 157.89 million, indicating a strong performance in the first half of 2022[58]. - The company reported a significant increase in investment activity, with net cash flow from investment activities rising by ¥97.69 million compared to the previous year[90]. - The company reported a total cash outflow from financing activities of 60,813,925.12 RMB, slightly down from 61,342,758.49 RMB in the previous year, indicating stable financing costs[181]. Research and Development - The company has allocated RMB 10 million for research and development in new technologies for the upcoming fiscal year[13]. - The company's R&D expenditure accounted for 26.83% of operating revenue, an increase of 4.72 percentage points from 22.11% in the previous year[20]. - Research and development (R&D) expenses totaled approximately 36.66 million yuan, representing a 33.42% increase compared to the previous year, with R&D expenses accounting for 26.83% of operating revenue, up 4.72 percentage points[54]. - The company reported a total fundraising amount of ¥641,565,000, with a net amount of ¥584,550,538.32 after deducting issuance costs[133]. - The company has established a unique iPALM R&D system that integrates the entire product management lifecycle, enhancing product development efficiency[66]. - The company is focusing on developing high-performance messaging middleware and distributed application servers to support various industries, including finance and government[10]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by the end of 2023[13]. - The company is actively expanding its market presence while addressing competitive pressures from both existing and new entrants in the software industry[85]. - The company is focusing on enhancing its core competitiveness by increasing investment in innovation related to trust and innovation and digital transformation technologies[54]. - The company aims to assist clients in achieving digital transformation and business innovation through its software products and technical services[35]. - The company is implementing a new marketing strategy aimed at increasing brand awareness, with a budget increase of 15%[114]. Risk Factors and Challenges - Risk factors include potential regulatory changes in the tech industry, which could impact operational strategies[4]. - The company faces risks related to core competitiveness, operational fluctuations, and financial uncertainties, particularly in the context of a technology-intensive industry[81][82][83]. - The net cash flow from operating activities decreased by CNY 71.70 million compared to the same period last year, primarily due to delays in sales collections caused by pandemic-related restrictions[21]. - The company is closely monitoring macroeconomic conditions and potential impacts from the ongoing pandemic on its business operations[86]. Product Development and Innovation - New product development includes a low-code development platform, expected to launch in Q4 2022, aiming to capture a new customer segment[13]. - The company has developed a full-stack信创 product and solution line, supporting clients in digital transformation and technology foundation construction[47]. - The company has established over 40 key core technologies with independent intellectual property rights, including 29 authorized invention patents and 226 software copyrights[43]. - The company has completed a total of 594 product adaptations and mutual certifications, including various chip products and operating systems, to support the construction of customer trust and innovation systems[48]. Financial Management and Shareholder Returns - The company plans to distribute cash dividends of no less than 10% of the distributable profits achieved in the current year, provided that cash dividend conditions are met and the company maintains normal operations and long-term development[118]. - The company has committed to a long-term sustainable development strategy for shareholder returns, balancing business growth with comprehensive shareholder returns over a three-year cycle[118]. - The company has established a mechanism for continuous, stable, and scientific returns to investors, taking into account shareholder opinions and external financing environments[118]. - The company will ensure that its dividend distribution policy is aligned with its operational needs and financial health, supported by an unqualified audit report[118]. Corporate Governance and Compliance - The company guarantees that the prospectus submitted for the initial public offering does not contain false records or misleading statements, and it will bear legal responsibility for its authenticity and completeness[121]. - The company will take measures to address any breaches of commitments made during its initial public offering, including timely disclosure and compensation for direct losses to investors[118]. - The company has established a stock price stabilization plan that will be activated if the stock price closes below the latest audited net asset value per share for twenty consecutive trading days[121]. - The company has committed to ensuring the accuracy and completeness of its IPO prospectus and will bear legal responsibility for any misstatements[124].

Financial Performance - The company's operating revenue for 2021 was approximately CNY 436.43 million, representing a year-on-year increase of 20.99% compared to CNY 360.72 million in 2020[21]. - The net profit attributable to shareholders for 2021 was approximately CNY 39.13 million, an increase of 24.74% from CNY 31.37 million in 2020[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately CNY 14.65 million, showing an 83.01% increase from CNY 8.01 million in 2020[21]. - The net cash flow from operating activities for 2021 was approximately CNY 66.79 million, a significant increase of 262.08% compared to CNY 18.45 million in 2020[21]. - The basic earnings per share for 2021 was CNY 0.416, reflecting a 26.44% increase from CNY 0.329 in 2020[22]. - The total assets at the end of 2021 were approximately CNY 1.08 billion, a slight decrease of 0.92% from CNY 1.09 billion at the end of 2020[21]. - The weighted average return on net assets for 2021 was 4.09%, an increase of 0.86 percentage points from 3.23% in 2020[22]. - The total non-recurring gains and losses for 2021 amounted to 244.72 million yuan, compared to 233.58 million yuan in 2020[28]. Research and Development - The R&D expenditure as a percentage of operating revenue increased to 17.23% in 2021 from 15.73% in 2020, indicating a focus on innovation[22]. - The company's R&D expenses for 2021 were 75.20 million yuan, reflecting a growth of 32.51% year-on-year[33]. - Continuous R&D investment has led to the acquisition of over 40 key core technologies and multiple patents, including 29 authorized invention patents and 218 software copyright registrations[68]. - The company has developed a comprehensive middleware application development platform, recognized by over a thousand large and medium-sized users across various industries, including finance, telecommunications, and energy[61]. - The company is committed to building a component-based technology platform and systematic R&D capabilities to support clients' digital transformation[43]. Corporate Governance - The company has established a modern corporate governance structure, including specialized committees for strategy, audit, nomination, and compensation[196]. - The internal control audit report for 2021 received a standard unqualified opinion, indicating effective internal controls[195]. - The company has established a compliance and internal control institution, enhancing its governance structure to ensure accurate and timely information disclosure[144]. - The company emphasizes investor rights protection through various communication channels, ensuring transparency and engagement[196]. - The company held multiple board meetings to discuss and approve various proposals, including the 2020 annual financial budget report and the 2021 first quarter report[162]. Market Strategy and Expansion - The company plans to continue leveraging its industry advantages to explore digital transformation opportunities for key clients and expand its market presence[23]. - The company aims to strengthen its core technology barriers and maintain a competitive advantage in foundational software[39]. - The company is focusing on expanding its market presence in sectors such as finance, telecommunications, and manufacturing through new product development and strategic partnerships[7]. - The company is positioned to benefit from the domestic market's push for localization and digital transformation, creating significant market opportunities[55]. - The company plans to distribute cash dividends of RMB 5.00 per 10 shares, totaling approximately RMB 45.91 million, which represents 117.33% of the net profit attributable to shareholders for 2021[182]. Risk Management - The company has outlined various operational risks and corresponding mitigation measures in the report[4]. - The overall economic environment remains uncertain, with potential impacts from macroeconomic policies and the ongoing COVID-19 pandemic[103]. - The company faces risks related to maintaining its core competitiveness in a technology-intensive industry, necessitating ongoing investment in R&D and talent acquisition[98]. Employee and Talent Management - The company is committed to building a talent reserve and management system through stock incentive policies and training programs, focusing on young, professional, and career-oriented personnel[141]. - The total number of employees in the parent company and major subsidiaries is 1,452, with 1,040 being technical personnel and 238 in research and development[173]. - Total compensation for R&D personnel reached ¥62,909,690.31, a 30.5% increase from ¥48,155,449.32 in the prior period[88]. Dividend Policy - The company has established a cash dividend policy, stating that it will distribute no less than 10% of the annual distributable profit in cash if conditions are met[177]. - The cash dividend policy is designed to protect the rights of minority investors, with a minimum distribution ratio of 80% for mature companies without major capital expenditures[178]. - The company has a clear and compliant cash dividend decision-making process, ensuring transparency and protection for minority shareholders[179]. Technological Innovation - The company is focusing on the development of middleware, intelligent data platforms, and digital applications to enhance its core competitiveness[33]. - The trend towards low-code development is gaining traction, driven by the need for cost reduction and efficiency in digital application development[63]. - The company is developing a cloud-native digital technology platform to support financial enterprises in deepening their digital transformation efforts[81].

Financial Performance - The company's operating revenue for Q1 2022 was ¥49,388,523.49, representing a year-on-year increase of 26.47%[5]. - Total revenue for Q1 2022 was CNY 49,388,523.49, an increase of 26.4% compared to CNY 39,050,885.13 in Q1 2021[24]. - The net loss attributable to shareholders was ¥20,618,261.36, with a basic and diluted earnings per share of -¥0.224[5][6]. - Net loss for Q1 2022 was CNY -20,618,261.36, compared to a net loss of CNY -9,954,157.34 in Q1 2021, representing a 107.0% increase in losses[25]. - Basic and diluted earnings per share for Q1 2022 were both CNY -0.224, compared to CNY -0.104 in Q1 2021[26]. - The net profit for Q1 2022 was a loss of CNY 10,704,686.16, compared to a loss of CNY 3,623,435.02 in Q1 2021, indicating a significant decline in profitability[33]. Expenses and Costs - Research and development expenses totaled ¥18,186,799.07, accounting for 36.82% of operating revenue, an increase of 4.36 percentage points year-on-year[6]. - Total operating costs for Q1 2022 were CNY 79,051,901.88, up 36.0% from CNY 58,135,367.65 in Q1 2021[24]. - The company incurred total operating costs of CNY 33,993,767.25 in Q1 2022, up from CNY 20,058,307.13 in Q1 2021, reflecting a 69.5% increase[32]. - The company's cash outflow for employee compensation increased to CNY 103,421,040.46 in Q1 2022, compared to CNY 79,765,627.26 in Q1 2021, reflecting a 29.7% increase[28]. - The cash outflow for taxes paid rose to CNY 22,475,417.41 in Q1 2022, up from CNY 18,291,438.47 in Q1 2021, indicating a 23.9% increase[28]. Cash Flow and Assets - The net cash flow from operating activities was -¥76,947,558.61, primarily due to increased personnel costs[5][10]. - The company's cash and cash equivalents amounted to RMB 244.65 million, a decrease from RMB 549.93 million at the end of 2021[21]. - The total cash and cash equivalents at the end of Q1 2022 were CNY 241,272,507.50, a decrease from CNY 409,947,581.75 at the end of Q1 2021[28]. - The company's total assets as of March 31, 2022, were CNY 1,083,626,309.10, down from CNY 1,151,033,275.96 at the end of 2021[31]. - The total liabilities decreased to CNY 175,459,510.89 from CNY 220,531,095.77 in the previous year[31]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 6,270[12]. - The largest shareholder, Liu Yadong, held 23.87% of the shares, totaling 22,771,802 shares[12]. - The company completed the second phase of share repurchase, acquiring 2,152,426 shares, representing 2.26% of the total share capital of 95,400,000 shares, with a total expenditure of approximately RMB 50.27 million[16]. - The company reported a total of 3,582,387 shares in its repurchase account, accounting for 3.76% of the total share capital[16]. Operational Challenges - The company faced operational challenges due to the COVID-19 situation in Shanghai, impacting project execution and revenue recognition[10]. - The company is closely monitoring the impact of COVID-19 on its operations, particularly in the Shanghai region, which may affect project timelines and budgets[19]. Incentive Plans - The company plans to use the repurchased shares for employee stock ownership plans or equity incentives, with a total repurchase budget between RMB 50 million and RMB 70 million[15]. - The company aims to attract and retain talent through its incentive mechanisms, which include granting restricted stock to key employees[17]. - The company has adjusted the grant price for its 2021 restricted stock incentive plan from RMB 21.00 to RMB 20.70 per share[18].

Financial Performance - The company's operating revenue for Q3 2021 was ¥91,100,073.44, representing a year-on-year increase of 22.87%[5] - The net profit attributable to shareholders was ¥7,032,823.87, a significant increase of 878.38% compared to the same period last year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥2,288,743.66, up 123.56% year-on-year[5] - Basic and diluted earnings per share were both ¥0.074, reflecting an increase of 840.00% compared to the previous year[6] - Total operating revenue for the first three quarters of 2021 reached ¥215,404,395.22, an increase from ¥168,347,424.51 in the same period of 2020, representing a growth of approximately 28%[21] - Total operating costs for the third quarter of 2021 were ¥241,740,288.66, compared to ¥207,423,670.76 in the previous year, indicating an increase of about 16.5%[22] - The operating profit for the third quarter of 2021 was reported at -¥3,254,705.14, an improvement from -¥23,202,466.37 in the same quarter of 2020[22] - The net profit for the third quarter of 2021 was -¥3,118,819.90, compared to -¥15,140,208.76 in the same period last year, showing a significant reduction in losses[23] - Basic and diluted earnings per share for the third quarter of 2021 were both -¥0.033, an improvement from -¥0.159 in the same quarter of 2020[24] Cash Flow and Investments - The company's cash flow from operating activities showed a net outflow of ¥20,810,563.59, a decrease of 70.61% compared to the previous year[6] - Cash inflow from operating activities for the first three quarters of 2021 was $304,204,952.78, an increase of 33.9% compared to $227,155,850.54 in the same period of 2020[26] - Net cash outflow from operating activities for Q3 2021 was -$20,810,563.59, an improvement from -$70,798,097.20 in Q3 2020[27] - Cash inflow from investment activities in Q3 2021 was $1,332,052,996.90, up from $1,092,844,043.81 in Q3 2020, representing a growth of 21.9%[27] - Net cash outflow from investment activities for Q3 2021 was -$209,384,300.47, compared to -$111,799,436.28 in Q3 2020[27] - Cash outflow from financing activities in Q3 2021 totaled $79,266,904.97, significantly higher than $24,382,600.00 in Q3 2020[28] - The net increase in cash and cash equivalents for Q3 2021 was -$309,461,769.03, compared to -$206,980,133.48 in Q3 2020[28] - The ending balance of cash and cash equivalents for Q3 2021 was $91,306,561.78, compared to $73,312,576.88 in Q3 2020, indicating a year-over-year increase of 24.5%[28] - Total cash received from investment recoveries in Q3 2021 was $1,324,000,000.00, an increase from $1,080,000,000.00 in Q3 2020[27] - Cash paid for the acquisition of fixed assets in Q3 2021 was $2,437,297.37, compared to $1,643,480.09 in Q3 2020, reflecting a rise of 48.3%[27] - Cash paid for investments in Q3 2021 was $1,539,000,000.00, up from $1,203,000,000.00 in Q3 2020, marking an increase of 28%[27] Research and Development - Total R&D investment amounted to ¥19,132,183.55, which is 21.00% of operating revenue, an increase of 2.79 percentage points year-on-year[6] - Research and development expenses for the third quarter of 2021 were ¥46,613,446.64, up from ¥37,897,094.91 in the same period of 2020, indicating a focus on innovation[22] Shareholder Information - Total number of common shareholders at the end of the reporting period was 5,497[13] - The largest shareholder, Liu Yadong, holds 22,771,802 shares, representing 23.87% of total shares[13] - The company has repurchased a total of 2,265,843 shares, accounting for 2.38% of the total share capital[16] - The total amount paid for share repurchases reached RMB 49,514,767.21, excluding transaction fees[16] - The company plans to use repurchased shares for employee stock ownership plans or equity incentives[15] - The maximum repurchase price is set at RMB 30.00 per share, with a total repurchase budget between RMB 50 million and RMB 70 million[15] Assets and Liabilities - The total assets at the end of the reporting period were ¥1,012,359,205.82, a decrease of 7.08% from the end of the previous year[6] - The equity attributable to shareholders decreased by 8.24% to ¥897,458,443.22 compared to the end of the previous year[6] - Non-current assets totaled ¥72,088,718.57, a significant increase from ¥27,760,541.39 in the previous year[19] - Total liabilities amounted to ¥114,900,762.60, compared to ¥111,470,228.16 in the previous year, reflecting a slight increase[19] - The company's total assets were reported at ¥1,012,359,205.82, down from ¥1,089,491,404.11 in the previous year[19] Future Outlook - The company expects continued growth in sales revenue driven by digital transformation and industry-specific needs in key sectors such as finance and government[11] - The increase in net profit is primarily attributed to the growth in sales revenue and a reduction in losses[11]

Financial Performance - The company reported a total revenue of RMB 100 million for the first half of 2021, representing a year-on-year increase of 15%[19]. - The net profit attributable to shareholders for the same period was RMB 20 million, up 10% compared to the previous year[19]. - The company's operating revenue increased by CNY 30.1 million, a growth of 31.95% compared to the same period last year, primarily due to increased revenue from the financial industry and digital transformation services[20]. - The net profit attributable to shareholders decreased by CNY 4.085 million, mainly due to increased sales and rising operating costs[21]. - The net cash flow from operating activities increased by CNY 30.4 million compared to the same period last year, primarily due to higher cash receipts from sales[21]. - The company reported a total of CNY 7.26 million in non-recurring gains and losses, with government subsidies contributing CNY 2.26 million[24]. - The company achieved a total R&D investment of ¥27,481,263.09, representing a 12.65% increase compared to the previous period[43]. - The company reported a net loss of ¥70,318,945.40 for the period, with no prior year data available for comparison[164]. - The company reported a total comprehensive income loss of RMB 13.83 million for the current period[173]. User Growth and Market Expansion - User data showed an increase in active users by 25%, reaching a total of 500,000 users by the end of June 2021[19]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% growth in that region by the end of 2022[19]. - The company has successfully expanded into multiple industries, including telecommunications, government, energy, and manufacturing, with notable clients such as China Mobile and China Telecom[54]. Research and Development - The company has allocated RMB 5 million for research and development in artificial intelligence technologies for the current fiscal year[19]. - Research and development expenses accounted for 22.11% of operating revenue, a decrease of 3.79 percentage points compared to the previous year[20]. - The company is focused on continuous R&D investment to enhance its technological capabilities and product offerings, aligning with market trends[35]. - The company has accumulated over 40 key core technologies with independent intellectual property rights and has received 28 authorized invention patents and 215 software copyright registrations[35]. - The company’s R&D efforts focus on enhancing product stability and security through upgrades to various foundational software products[39]. Product Development - New product development includes a low-code development platform, expected to launch in Q4 2021, aiming to capture a 10% market share within the first year[19]. - The company launched new products including the enterprise-level low-code development platform software V5 and the master data management platform software V6[38]. - The Primeton AppServer supports Jakarta EE8 standards and is designed for rapid integration and deployment, enhancing IT resource efficiency[32]. - The Primeton ESB software facilitates communication between heterogeneous software and business modules, improving service integration and governance[33]. - The Primeton BFT platform provides a secure and efficient file transfer solution, supporting concurrent transfers and flexible transmission strategies[33]. - The Primeton DevOps Platform offers a unified management tool for software development and operations, optimizing IT operational efficiency[34]. Financial Position and Assets - The company's total assets decreased by 7.89% from the end of the previous year, amounting to CNY 1,003.5 million[22]. - The company's net assets attributable to shareholders decreased by 7.19% from the end of the previous year, totaling CNY 907.7 million[22]. - The company's total liabilities decreased to CNY 95,813,468.97 from CNY 111,470,228.16, a reduction of about 14.0%[145]. - The company's equity totaled CNY 917,075,531.22, down from CNY 980,869,297.79, a decrease of approximately 6.5%[149]. Shareholder and Governance - The company completed the election of the board of directors and supervisory board during the reporting period, with new independent directors appointed[90]. - The company plans to grant 4.65 million restricted stocks, accounting for 4.87% of the total share capital at the time of the announcement[93]. - The company has implemented a stock incentive plan to enhance team cohesion and attract talent, focusing on the development of a robust talent system[63]. - The company has committed to not reducing its shareholding until the completion of the restructuring plan, which is set to last until September 26, 2020[99]. Compliance and Legal Matters - The financial report has not been audited, but the management assures its accuracy and completeness[19]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[115]. - There were no significant lawsuits or arbitration matters during the reporting period[116]. - The company has not received any penalties or corrective actions related to violations of laws or regulations during the reporting period[116]. Cash Flow and Financing - The company reported a net cash flow from operating activities of -43.51 million RMB, an improvement from -73.93 million RMB in the previous year[73]. - The company's cash flow from financing activities decreased due to share buybacks and increased cash dividends compared to the same period last year[75]. - Cash and cash equivalents dropped to ¥179,413,740.75 from ¥403,191,887.18, a decrease of about 55.6%[143]. - The company distributed dividends amounting to ¥28,191,011.70 during the period[164].

Financial Performance - The company's operating revenue for 2020 was ¥360,718,170.70, a decrease of 8.90% compared to ¥395,978,625.16 in 2019[23]. - Net profit attributable to shareholders decreased by 37.61% to ¥31,365,211.08 from ¥50,274,595.54 in the previous year[23]. - The net profit after deducting non-recurring gains and losses dropped by 82.59% to ¥8,007,188.28, significantly higher than the overall net profit decline[23]. - Basic earnings per share decreased by 52.66% to ¥0.329 from ¥0.695 in 2019[24]. - The weighted average return on net assets fell by 9.68 percentage points to 3.23% compared to 12.91% in the previous year[24]. - The gross profit margin for the software industry was 55.95%, down 3.55 percentage points from the previous year[98]. - The software platform business generated revenue of 254.71 million yuan, a decrease of 9.31% year-on-year[98]. - The application development business based on the software platform saw revenue of 106.01 million yuan, a decrease of 7.91% year-on-year[98]. Cash Dividend Policy - The company plans to distribute a cash dividend of RMB 3.00 per 10 shares, totaling RMB 28,595,389.50, which accounts for 91.17% of the net profit attributable to shareholders for 2020[6]. - The proposed cash dividend for 2020 is CNY 3.00 per 10 shares, totaling CNY 28,595,389.50, which represents 91.17% of the net profit attributable to shareholders[135]. - The cash dividend policy is designed to protect the rights of minority investors and is compliant with the company's articles of association[135]. - The company has a differentiated cash dividend policy based on its development stage, with a minimum cash dividend ratio of 80% for mature companies without major capital expenditures[134]. - The independent directors and supervisory board have approved the profit distribution plan, ensuring transparency and compliance in the decision-making process[135]. Research and Development - Research and development expenses accounted for 15.73% of operating revenue, an increase of 1.81 percentage points from 2019[24]. - The total R&D expenditure for the year was ¥56,750,995.08, representing a 2.98% increase from the previous year's ¥55,109,635.76[59]. - The company has developed over 40 core technologies with independent intellectual property rights, supported by a high proportion of R&D investment[52]. - The company has established a unique iPALM R&D system, enhancing product delivery speed and efficiency through reusable underlying technologies[71]. - The company launched multiple software products, including the Puyuan Application Server Platform Software V7 and Puyuan Low-Code Cloud Application Development Platform, which received several awards[83]. Market Expansion and Strategy - The company aims to enhance its software infrastructure capabilities to support digital transformation for medium and large enterprises and government institutions[33]. - The company is focused on expanding its market presence in the financial, telecommunications, and energy sectors through innovative software solutions[33]. - The digital transformation of enterprises in China is accelerating, with significant growth potential for digital middle platforms supported by national policies[49]. - The company is currently developing the Primeton DSP data sharing platform, which aims to support over 1,000 concurrent job scheduling and provide fine-grained control over data access[67]. - The company plans to strengthen its marketing strategy in the financial sector to improve project delivery efficiency and cost management in 2021[129]. Risk Management - The report includes a detailed discussion of various operational risks and corresponding mitigation strategies[4]. - The company emphasizes that forward-looking statements are based on subjective assumptions and may differ from actual results[7]. - The company identified risks related to core competitiveness, including the need for continuous technological innovation and the challenge of attracting high-end technical talent[89]. Corporate Governance - The board of directors and supervisory board members confirm the authenticity and completeness of the annual report[4]. - 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 committed to not reducing its shareholdings during the restructuring period, ensuring stability for investors[137]. - The company’s controlling shareholder committed to not interfere with the company's management activities and to protect the interests of the company and its shareholders[149]. Financial Management - The net cash flow from operating activities increased by ¥18,447,429.64, primarily due to an increase in sales collections[25]. - The net cash flow from investment activities was 126.41 million RMB, a significant increase of 670.41 million RMB from the previous year, mainly due to the maturity of bank wealth management products purchased with idle funds[111]. - The company reported a total revenue of 22,480 million RMB, with a net profit of 5,561.69 million RMB for the year 2020[67]. - The company has established a comprehensive quality control system and has passed CMMI5, ISO9001, and ISO27001 certifications to ensure product quality[185]. Shareholder Information - The total number of ordinary shares was 95,400,000, with 77.29% being restricted shares and 22.71% being unrestricted shares[190]. - The top shareholder, Liu Yadong, holds 22,771,802 shares, representing 23.87% of the total shares[199]. - The company’s shareholder structure includes significant holdings from domestic natural persons, accounting for 55.66% of the total shares[190]. - The top ten shareholders collectively hold 56.12% of the total shares, indicating a significant concentration of ownership[199]. Compliance and Legal Matters - The company guarantees that the prospectus submitted for the initial public offering does not contain any false records, misleading statements, or significant omissions[151]. - There were no significant lawsuits or arbitration matters during the reporting period[161]. - The company will ensure compliance with legal requirements for the issuance of shares and will be held accountable for the accuracy of the prospectus[151].