Financial Performance - The basic earnings per share for the first half of 2022 was CNY 0.14, a decrease of 22.22% compared to CNY 0.18 in the same period last year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 44.90% year-on-year[20]. - The diluted earnings per share also stood at CNY 0.14, reflecting the same 22.22% decline from CNY 0.18 year-on-year[20]. - The weighted average return on net assets was 4.45%, down by 1.50 percentage points from 5.95% in the previous year[20]. - The weighted average return on net assets after deducting non-recurring gains and losses was 2.85%, a decrease of 2.49 percentage points from 5.34%[20]. - The significant decline in net profit was primarily due to the notable depreciation of the Japanese yen, which adversely affected the company's operating revenue and foreign exchange gains and losses[20]. - The company's operating revenue for the first half of the year was CNY 323.16 million, a slight increase of 0.19% compared to the same period last year[21]. - The net profit attributable to shareholders decreased by 22.08% to CNY 57.32 million, while the net profit excluding non-recurring gains and losses dropped by 44.90% to CNY 36.38 million[21]. - The total assets at the end of the reporting period were CNY 1.33 billion, down 3.41% from the end of the previous year[21]. - The company reported a total revenue of 10,070 million RMB for the first half of 2022, with a net profit of 3,510.56 million RMB, representing an increase of 8,151.67 million RMB compared to the previous year[45]. Research and Development - The R&D investment accounted for 10.86% of operating revenue, an increase of 1.18 percentage points compared to 9.68% in the previous year[20]. - Research and development expenses totaled approximately ¥35.1 million, representing a 12.47% increase from the previous year, and accounted for 10.86% of total revenue[41]. - The number of R&D personnel decreased to 253, accounting for 13.97% of the total workforce, down from 16.19% in the previous year[47]. - Total compensation for R&D personnel increased to 33,678,665.61 RMB, with an average salary of 133,117.26 RMB, up from 114,279.80 RMB in the previous year[47]. - The company holds 4 invention patents and 227 software copyrights, with ongoing projects in development, reflecting strong R&D capabilities[39]. Market Position and Client Base - The company has established a significant market position in Japan's financial software development sector, becoming one of the largest suppliers for Nomura Research Institute[28]. - The company has accumulated over 70 clients in the domestic securities market, including major firms like Guotai Junan and Huatai Securities, enhancing its market presence[28]. - The company has a strong presence in the Japanese financial sector, with major clients like Nomura Research Institute, leading to high profitability in software development projects[51]. - The company has developed a strong client base in the domestic market, serving over 70 securities firms and more than 10 asset management companies, which supports its growth strategy[55]. Technology and Innovation - The company focuses on high-value software development services, maintaining a competitive edge due to high entry barriers in the industry[25]. - The company is committed to leveraging emerging technologies in the financial sector, providing comprehensive software development services across various financial domains[26]. - The company employs an independent R&D model, closely tracking international technology trends to enhance its core technologies[30]. - The company has established a low-code development platform that enhances development efficiency and reduces technical barriers for developers, representing a significant upgrade from previous platforms[32]. - The company’s core technologies include big data, cloud computing, and mobile application development, all of which are self-developed and tailored to the financial sector[32]. - The company has developed a cloud-based platform for managing loyalty points across different business sectors, utilizing AWS services for data collection and analysis[45]. - The company has developed innovative solutions for unmanned services in retail and other sectors, capitalizing on the "unmanned economy" trend accelerated by the pandemic[38]. Financial Risks and Challenges - The company faces risks related to outsourcing software development, as reliance on external vendors may lead to service shortages or quality declines if they cannot keep pace with the company's growth[73]. - Financial risks are present due to varying project costs and the customized nature of contracts, leading to fluctuations in gross profit margins[74]. - The company is exposed to industry risks as software development trends shift towards cloud and mobile solutions, necessitating continuous adaptation to meet evolving customer demands[75]. - The company's revenue is significantly affected by exchange rate fluctuations, particularly with the Japanese yen, as most income is denominated in yen while costs are primarily in RMB[76]. - The ongoing COVID-19 pandemic has introduced uncertainties that could impact the company's operations and the macroeconomic environment[77]. Shareholder and Equity Information - The company has not proposed any profit distribution plan or capital reserve transfer to increase share capital during this reporting period[5]. - The company has implemented a stock incentive plan, with details disclosed in previous announcements[100]. - The company held its annual general meeting on April 28, 2022, where it approved the termination of the 2021 restricted stock incentive plan[101]. - The company has committed to maintaining stable operations and ensuring control arrangements after the lock-up period for share reductions[106]. - The company will ensure compliance with the Shanghai Stock Exchange's regulations regarding major violations and delisting standards[107]. - The company has established a commitment to maintain share prices above the initial public offering price during the 2 years following the lock-up period[109]. Operational Efficiency - The company has achieved significant improvements in operational efficiency by redesigning backend systems and optimizing business logic through domain-driven design (DDD) principles[49]. - The company has completed the development of a big data analytics platform aimed at providing one-stop sales forecasting solutions for enterprises[45]. - The company has enhanced its data analysis and modeling capabilities through the use of Google Analytics and DataRobot, enabling automated procurement and personalized recommendation services[50]. - The company has implemented machine learning techniques to enhance customer targeting and personalized marketing strategies, particularly in the insurance sector[49]. Compliance and Governance - The company has not reported any employee stock ownership plans or other incentive measures during the reporting period[102]. - The company has not disclosed any significant changes in environmental information during the reporting period[104]. - The company has not faced any penalties or corrective actions related to legal violations by its directors, supervisors, or senior management[121]. - The company is committed to avoiding related party transactions and will adhere to legal procedures if unavoidable transactions occur[119].

2022 年第一季度报告 证券代码：688588 证券简称：凌志软件 苏州工业园区凌志软件股份有限公司 2022 年第一季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 重要内容提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整，不存 在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人张宝泉先生、主管会计工作负责人及会计机构负责人（会计主管人员）王育贵先生保 证季度报告中财务报表信息的真实、准确、完整。 第一季度财务报表是否经审计 □是 √否 一、 主要财务数据 (一)主要会计数据和财务指标 单位：元 币种：人民币 | 项目 | 本报告期 | 本报告期比上年 同期增减变动幅 | | --- | --- | --- | | | | 度(%) | | 营业收入 | 160,070,666.45 | 0.32 | | 归属于上市公司股东的净利润 | 35,617,045.69 | 0.80 | | 归属于上市公司股东的扣除非 | 29,369,923.60 | - ...

Financial Performance - The company achieved operating revenue of CNY 652.66 million in 2021, representing a year-on-year growth of 3.58%[21]. - Net profit attributable to shareholders decreased by 27.28% to CNY 145.99 million in 2021[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 28.81% to CNY 107.80 million[21]. - The company's cash flow from operating activities was CNY 126.98 million, down 25.00% compared to the previous year[21]. - The company's total assets increased by 5.73% to CNY 1.38 billion at the end of 2021[21]. - The basic earnings per share decreased by 29.70% to CNY 0.3650 in 2021[22]. - The company reported a significant impact from the depreciation of the Japanese yen, which affected both revenue and exchange losses[30]. - The company reported a total revenue of 11,750 million RMB, with a net profit of 6,357.48 million RMB for the year 2021[73]. Research and Development - Research and development expenses accounted for 9.74% of operating revenue, an increase of 0.32 percentage points from the previous year[22]. - The company invested ¥63,574,800 in R&D during the reporting period, obtaining 210 software copyrights and 4 invention patents[42]. - Total R&D expenses increased to ¥63,574,793.37, up 7.10% from the previous year[67]. - The company has significantly invested in emerging technologies such as cloud computing, big data, and artificial intelligence, which are now integrated into most of its software development projects[77]. - The company has developed a range of products and engines that combine big data analysis and artificial intelligence algorithms, enhancing its service offerings[78]. Market Position and Strategy - The company remains heavily reliant on the Japanese market for software development services, posing a risk if market conditions change[87]. - The company is focused on the application of emerging technologies in the financial sector, providing comprehensive software development services across various financial fields[43]. - The company aims to achieve a software business revenue exceeding 14 trillion yuan by 2025, with an average annual growth rate of over 12%[124]. - The company plans to enhance its delivery capabilities by expanding its development and research teams, focusing on modular, automated, and tool-based development processes[126]. - The company is committed to increasing R&D investment in emerging technologies such as cloud computing, big data, and artificial intelligence to meet growing service demands across various industries[128]. Corporate Governance - The company has not disclosed any special arrangements for corporate governance[7]. - The company has a governance structure that complies with relevant laws and regulations, ensuring the legality and effectiveness of meeting resolutions[133]. - The company’s management team, including the chairman and core technical personnel, maintained their shareholdings without any changes during the reporting period[137]. - The company continues to focus on maintaining a robust governance framework with independent oversight from its board members[144]. - The company has implemented a comprehensive talent training system to develop high-skilled professionals, ensuring a stable workforce for future growth[85]. Risk Factors - The fluctuation of the Japanese yen poses a significant risk to the company's profit levels due to its revenue being primarily in yen while costs are in RMB[91]. - The company faces risks related to high customer concentration, particularly with its largest client, Nomura Research Institute[87]. - The company has detailed various operational risks in the "Management Discussion and Analysis" section of the report[4]. Shareholder Information - The company plans to distribute cash dividends of RMB 2 per 10 shares, totaling approximately RMB 80 million, which accounts for 54.80% of the net profit attributable to shareholders in 2021[5]. - The company has established a cash dividend policy that requires a minimum of 10% of the distributable profit to be distributed as cash dividends in any given year[163]. - The company has six employee shareholding platforms, indicating a structured approach to employee equity participation[143]. - The actual controller and shareholders of Lingzhi Software committed to holding their shares for a minimum of 36 months post-IPO, with no transfer or management of shares during this period[198]. Technology and Innovation - The company is actively expanding its customer base and projects while enhancing technology and product innovation[30]. - The company has developed proprietary core technologies, including project management systems and automated testing platforms, which significantly improve software development efficiency[58]. - The company has developed a microservices architecture based on cloud computing, utilizing container technology to package services, which reduces system complexity and allows for independent deployment and expansion[60]. - The integration of big data and artificial intelligence technologies is crucial for the company's data processing capabilities, supporting various applications including data mining and system interconnectivity[58]. Financial Management - The company has implemented a stable profit distribution policy to ensure reasonable returns for investors, emphasizing transparency and compliance with legal regulations[187]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 522.92 million[146]. - The company has established a fair and scientific salary and performance evaluation system to enhance employee motivation and efficiency[160]. - The company has a stock incentive plan in place, which is designed to align employee interests with shareholder value[169].

Financial Performance - The company's operating revenue for Q3 2021 was ¥145,175,907.97, a decrease of 12.47% compared to the same period last year[5]. - The net profit attributable to shareholders for Q3 2021 was ¥28,592,648.41, representing a decline of 56.89% year-on-year[5]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥22,690,787.75, down 55.48% from the previous year[5]. - Basic and diluted earnings per share for Q3 2021 were both ¥0.07, a decrease of 56.89% compared to the same period last year[6]. - Total operating revenue for the first three quarters of 2021 reached ¥467,715,502.22, an increase from ¥446,210,006.28 in the same period of 2020, representing a growth of approximately 4.5%[19]. - Net profit for the third quarter of 2021 was ¥101,722,978.66, down from ¥137,256,655.76 in the same quarter of 2020, reflecting a decrease of approximately 26%[21]. - The total comprehensive income attributable to the parent company for Q3 2021 was CNY 101,118,157.76, a decrease of 26.2% compared to CNY 137,132,145.53 in Q3 2020[22]. - Basic and diluted earnings per share for Q3 2021 were CNY 0.2554, down from CNY 0.3600 in Q3 2020, reflecting a decline of 29.1%[22]. Research and Development - The total R&D investment for Q3 2021 was ¥14,312,824.08, a decrease of 9.16% year-on-year, while the R&D investment as a percentage of operating revenue increased to 9.86%[6]. - Research and development expenses for the first three quarters of 2021 were ¥45,527,300.25, compared to ¥42,268,895.94 in the same period of 2020, showing an increase of approximately 7.5%[19]. Assets and Liabilities - The company's total assets at the end of the reporting period were ¥1,300,233,296.84, a slight decrease of 0.27% from the end of the previous year[6]. - The company's total assets as of the end of the third quarter of 2021 amounted to ¥1,300,233,296.84, slightly down from ¥1,303,729,531.21 at the end of the previous year[17]. - Total liabilities decreased to ¥78,080,984.06 in the third quarter of 2021 from ¥102,262,227.45 in the same quarter of 2020, a reduction of about 23.6%[17]. - The company reported a decrease in accounts payable from ¥12,147,943.65 in the previous year to ¥10,269,908.19 in the current year, a decline of about 15.5%[17]. - Total liabilities amounted to 102,262,227.45, a decrease of 5,153,275.00 compared to the previous period[28]. - Non-current liabilities totaled 8,690,169.63, reflecting a decrease of 2,991,850.00 from the previous period[28]. Cash Flow - Cash flow from operating activities for the year-to-date was ¥62,150,925.17, reflecting a decrease of 33.99%[6]. - Operating cash flow for the first three quarters of 2021 was CNY 62,150,925.17, a decrease of 34.0% compared to CNY 94,156,201.25 in the same period of 2020[24]. - Cash inflow from operating activities totaled CNY 492,945,534.01 in Q3 2021, compared to CNY 478,379,401.35 in Q3 2020, indicating a growth of 3.5%[24]. - Cash flow from investment activities generated a net inflow of CNY 62,493,989.55 in the first three quarters of 2021, a significant improvement from a net outflow of CNY 313,853,078.63 in the same period of 2020[24]. - The net increase in cash and cash equivalents for Q3 2021 was CNY 23,613,729.14, down from CNY 78,837,728.54 in Q3 2020, reflecting a decrease of 70.0%[25]. Shareholder Structure - The company has a significant shareholder structure, with Zhang Baoquan holding 19.86% and Wu Yanfang holding 16.67% of the shares, indicating a strong control by these two individuals[14]. - The top ten shareholders collectively hold a significant portion of the company's equity, with the largest shareholder alone holding nearly 20%[14]. Operational Strategy - The company has not reported any significant changes in its operational strategies or new product developments during the quarter[15]. - There are no significant concerns raised regarding the company's financial health or operational performance in the current report[15]. - The company has not disclosed any future guidance or outlook for the upcoming quarters in the current report[15]. - The company plans to continue focusing on R&D and market expansion despite the current financial challenges[10]. Financial Standards - The company adopted the new leasing standards effective January 1, 2021, as per the Ministry of Finance's announcement[29].

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 20%[13]. - The company's operating revenue for the first half of 2021 was ¥322,539,594.25, representing a year-on-year increase of 15.04% compared to ¥280,360,073.90 in the same period last year[19]. - Net profit attributable to shareholders was ¥73,561,478.39, a 3.00% increase from ¥71,422,090.04 in the previous year[21]. - The net profit after deducting non-recurring gains and losses was ¥66,016,022.63, up 4.91% from ¥62,924,089.29 year-on-year[21]. - The company's cash flow from operating activities was ¥30,243,607.35, reflecting a 3.77% increase compared to ¥29,143,595.02 in the same period last year[19]. - The gross profit margin for the first half of 2021 was reported at 45%, an improvement from 40% in the same period last year[13]. - The company's total assets at the end of the reporting period were ¥1,351,239,117.78, an increase of 3.64% from ¥1,303,729,531.21 at the end of the previous year[19]. - The company's total liabilities decreased to ¥77,422,679.01 from ¥102,262,227.45, a reduction of about 24.3%[157]. - The company's equity totaled ¥1,217,173,192.97, an increase from ¥1,144,131,264.38, reflecting a growth of 6.4%[162]. Research and Development - Investment in research and development increased by 30% compared to the previous year, focusing on artificial intelligence and cloud computing technologies[13]. - The company's R&D expenditure as a percentage of operating revenue was 9.68%, an increase of 0.22 percentage points compared to 9.46% in the previous year[20]. - Research and development expenses totaled approximately ¥31.21 million, representing a 17.73% increase compared to the previous period, with R&D expenses accounting for 9.68% of operating revenue[46]. - The number of R&D personnel increased to 256, representing 16.19% of the total workforce, up from 15.14% in the previous period[56]. - Total compensation for R&D personnel reached ¥29,255,629.19, compared to ¥24,693,913.99 in the prior period[56]. Market Expansion and Strategy - The company expects a revenue growth 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 software firm is anticipated to enhance the company's product offerings and customer base[13]. - The company aims to leverage its experience in the Japanese market to enhance domestic software solutions for the securities industry[30]. - The company is focused on the domestic application software solutions market, capitalizing on the booming digitalization needs in the securities industry[76]. Technology and Innovation - The company has developed a low-code development platform, LCoder, which reduces project failure rates and lowers the technical skill requirements for developers[36]. - The company’s automated testing platform significantly enhances software project development efficiency and quality[36]. - The company has established a stable procurement model for software products and electronic devices, ensuring sufficient supply to meet project demands[34]. - The company has developed a self-service rule engine middleware that supports various rule types, enhancing user experience and decision-making efficiency[37]. - The AI platform integrates data mining and distributed computing frameworks, providing real-time data analysis with millisecond-level latency for high-timeliness data processing[37]. Client Base and Partnerships - The company has accumulated a client base of over 70 securities companies in the domestic market, including major firms like Guotai Junan and Huatai Securities[33]. - The company has established a stable partnership with major Japanese financial institutions, developing numerous core business systems for them[29]. - The company successfully expanded its client base, adding notable clients such as TDC Software Co., Ltd. and Nomura International[71]. Risks and Challenges - The company has identified potential risks related to market competition and regulatory changes, which are detailed in the risk factors section of the report[4]. - The company faces risks related to reliance on the Japanese market and major clients, which could impact its operational performance[79][80]. - There is a risk of talent loss as the company relies heavily on skilled technical personnel for product development and innovation[83]. - The company anticipates increased competition in the software development industry as it transitions to cloud and mobile solutions, necessitating enhanced capabilities in product development and customer service[84]. Shareholder and Governance - The company held its annual general meeting on May 18, 2021, where all 12 proposals were approved without any dissenting votes[104]. - There are no plans for profit distribution or capital reserve transfer for the half-year period, with no dividends or stock bonuses proposed[106]. - The company has implemented a restricted stock incentive plan, which was approved during the annual general meeting on May 18, 2021[107]. - The company has established a system for managing related party transactions to ensure fairness and protect the rights of all shareholders[125]. - There were no significant lawsuits or arbitration matters during the reporting period[127]. Environmental and Social Responsibility - The company has not been listed as a key pollutant unit and has maintained a strong focus on environmental protection, producing no industrial waste during the reporting period[110]. - There were no administrative penalties related to environmental issues during the reporting period[111].

2021 年第一季度报告 公司代码：688588 公司简称：凌志软件 苏州工业园区凌志软件股份有限公司 2021 年第一季度报告 | | 本报告期末 | 上年度末 | 本报告期末比上年度末增 | | | --- | --- | --- | --- | --- | | | | | 减(%) | | | 总资产 | 1,317,036,303.91 | 1,303,729,531.21 | | 1.02 | | 归属于上市公 | | | | | | 司股东的净资 | 1,234,752,174.50 | 1,200,149,319.44 | | 2.88 | | 产 | | | | | | | 年初至报告期末 | 上年初至上年报告期末 | 比上年同期增减(%) | | | 经营活动产生 | | | | | | 的现金流量净 | -9,323,420.62 | -10,914,743.53 | | 不适用 | | 额 | | | | | | | 年初至报告期末 | 上年初至上年报告期末 | 比上年同期增减（%） | | | 营业收入 | 159,558,283.30 | 136,176,287.49 | | 17. ...

Financial Performance - The company's operating revenue for 2020 was CNY 630,091,561.79, representing a year-on-year increase of 5.61% compared to CNY 596,622,687.25 in 2019[22]. - Net profit attributable to shareholders for 2020 was CNY 200,747,667.40, a significant increase of 33.97% from CNY 149,840,625.28 in 2019[22]. - The net cash flow from operating activities reached CNY 169,322,043.48, up 23.98% from CNY 136,570,310.03 in the previous year[22]. - The company's total assets increased by 64.97% to CNY 1,303,729,531.21 at the end of 2020, compared to CNY 790,291,204.88 at the end of 2019[22]. - The basic earnings per share for 2020 was CNY 0.5192, reflecting a growth of 24.75% from CNY 0.4162 in 2019[23]. - The company's net assets attributable to shareholders grew by 76.57% to CNY 1,200,149,319.44 at the end of 2020, compared to CNY 679,711,001.10 at the end of 2019[24]. - The company reported a quarterly revenue of CNY 183,881,555.51 in Q4 2020, with a net profit of CNY 63,002,275.33 for the same period[26]. - The company reported a total revenue of 10,740 million RMB, with a net profit of 5,935.82 million RMB, indicating a strong financial performance[78]. Research and Development - Research and development expenses accounted for 9.42% of operating revenue in 2020, an increase of 0.36 percentage points from 9.06% in 2019[23]. - R&D investment totaled ¥5,935.82 million in 2020, a 9.78% increase from ¥5,406.98 million in the previous year, representing 9.42% of total revenue[67]. - The number of R&D personnel increased to 268, representing 15.35% of the total workforce, up from 13.09% in the previous period[80]. - The research and development team comprises 1,586 members, accounting for 90.84% of the total workforce, highlighting the company's talent advantage[90]. - The company has applied for 5 invention patents and 42 software copyrights, increasing its total to 19 patents and 177 copyrights[67]. Dividend Policy - The company plans to distribute a cash dividend of RMB 2 per 10 shares, totaling approximately RMB 80,002,000.60, which represents 39.85% of the net profit attributable to shareholders for the year 2020[5]. - The proposed cash dividend for the 2020 fiscal year is also set at RMB 2 per 10 shares, with a total expected distribution of RMB 80,002,000.60, pending shareholder approval[162]. - The cash dividend policy stipulates that the company will distribute at least 10% of its distributable profits in cash, with a cumulative distribution of at least 30% over any three consecutive years[158]. - The company will adopt a combination of cash and stock for dividend distribution[168]. - The company plans to prioritize cash dividends in profit distribution, with a minimum of 80% for mature stages without major capital expenditures[169]. Corporate Governance - The report includes a standard unqualified audit opinion from Zhonghua Certified Public Accountants[5]. - The company has confirmed that all board members attended the board meeting[5]. - The company does not have any non-operating fund occupation by controlling shareholders or related parties[7]. - There are no violations of decision-making procedures regarding external guarantees[7]. - The company has not disclosed any special arrangements for corporate governance[8]. Market Position and Strategy - The company's revenue from software development services for the Japanese market accounted for 83.97% of total revenue in 2020[44]. - The company has established long-term framework contracts with major clients, enhancing its competitive position in the Japanese financial software market[40]. - The company focuses on high-value software development services, maintaining a strong market position with significant barriers to entry[43]. - The company plans to continue strengthening its collaboration with major clients in the Japanese software development service market[45]. - The company is actively pursuing new business models, including SaaS services, to increase customer satisfaction and long-term revenue stability[62]. Technology and Innovation - The company employs a technology-driven R&D model, closely tracking international trends to meet market demands[37]. - The company has developed a proprietary software project management system to effectively manage the entire process of software development projects, ensuring high efficiency and quality[53]. - The company’s self-developed automation testing platform significantly improves production efficiency and quality in software project development[53]. - The company’s low-code development platform reduces project failure rates and lowers the technical skill requirements for system developers, representing a comprehensive upgrade from the previous LMSP platform[53]. - The company has developed a cloud-based microservices architecture that enhances system efficiency and reduces complexity, enabling independent deployment and scaling of services[56]. Risk Management - The company has outlined various operational risks and corresponding mitigation strategies in the report[4]. - The report includes a forward-looking statement risk disclaimer, indicating that future plans and strategies do not constitute a commitment to investors[6]. - The company remains heavily reliant on the Japanese market for software development services, which poses a risk if market conditions change[108]. - The company faces risks related to high customer concentration, particularly with its largest client, Nomura Research Institute[109]. - The company is exposed to exchange rate risks as its revenue is primarily denominated in Japanese yen while costs are in RMB[115]. Investment and Financial Management - The company has invested RMB 113.16 million in bank wealth management products, with an outstanding balance of RMB 100.36 million[179]. - The company has invested RMB 300 million in bank wealth management products using raised funds, with an outstanding balance of RMB 295 million[179]. - The company has ongoing financial products with expected returns that are yet to be realized, indicating a strategy focused on future income generation[185]. - The company has diversified its financial product portfolio across various banks, ensuring a spread of risk and potential returns[184]. - The total amount of raised funds is RMB 38,504.57 million, with RMB 4,279.97 million invested in the current year[188]. Compliance and Legal Matters - There are no significant lawsuits or arbitration matters reported for the current year[176]. - The company has not faced any situations that could lead to delisting[176]. - There are no major accounting errors or changes in accounting policies reported for the current year[174]. - The company has not made any significant related party transactions during the reporting period[177]. Environmental and Social Responsibility - The company has not been classified as a key pollutant unit and has implemented effective waste management practices, ensuring no industrial wastewater is produced[196]. - The company’s solid waste mainly consists of household waste and packaging materials, with hazardous electronic waste being properly handled by suppliers[196]. - The company has not disclosed any environmental information due to its non-involvement in key pollution industries[196]. - The company’s public relations and social responsibility initiatives are not applicable as per the report[196].

Financial Performance - Operating income for the first nine months was CNY 446,210,006.28, a slight increase of 0.89% compared to the previous year[6] - Net profit attributable to shareholders increased by 8.15% year-on-year, totaling CNY 137,745,392.07[6] - Total operating revenue for Q3 2020 was ¥165,849,932.38, an increase of 5.8% compared to ¥157,624,787.52 in Q3 2019[23] - Net profit for Q3 2020 was ¥66,129,313.16, up 58.5% from ¥41,840,561.76 in Q3 2019[24] - The total revenue for the first three quarters of 2020 reached CNY 478,379,401.35, compared to CNY 466,071,895.54 in the same period of 2019, indicating a year-over-year increase of about 2.7%[29] - The operating profit for Q3 2020 was CNY 68,170,391.41, up from CNY 43,920,478.28 in Q3 2019, reflecting a growth of approximately 55.0%[28] - The company achieved a net profit margin of 39.8% in Q3 2020, compared to 26.5% in Q3 2019, indicating improved profitability[24] Assets and Liabilities - Total assets increased by 53.84% year-on-year, reaching CNY 1,215,747,288.74[6] - Current assets rose to CNY 902,135,793.34, up from CNY 488,737,556.24, indicating an increase of about 84.5%[16] - Total liabilities decreased to CNY 93,014,770.19 from CNY 109,245,754.48, a reduction of approximately 15%[18] - Total equity reached CNY 681,045,450.40, with attributable equity to shareholders at CNY 679,711,001.10[35] - The company reported a significant increase in tax refunds received, rising to RMB 1,951,150.96 from RMB 377,943.53 in the previous year[31] Shareholder Information - The company reported a total of 10,486 shareholders at the end of the reporting period[10] - The top shareholder, Zhang Baoquan, holds 19.86% of the shares, totaling 79,425,226 shares[10] Research and Development - R&D expenditure accounted for 9.47% of operating income, up by 1.92 percentage points from the previous year[6] - R&D expenses increased significantly to ¥15,755,970.50 in Q3 2020, a rise of 50.5% compared to ¥10,491,585.97 in Q3 2019[23] Cash Flow - Net cash flow from operating activities for the first nine months was CNY 94,156,201.25, reflecting a 19.12% increase year-on-year[6] - The cash flow from operating activities for the first three quarters of 2020 was CNY 94,156,201.25, compared to CNY 79,040,431.15 in the same period of 2019, marking an increase of about 19.2%[30] - The company reported a net cash outflow from investing activities of CNY -313,853,078.63 for the first three quarters of 2020, compared to CNY -118,256,574.16 in the same period of 2019[30] Government Support - Government subsidies recognized during the period amounted to CNY 7,633,269.09, primarily related to government support[9] - Other income increased by 195.36% to 8,242,559.13 RMB from 2,790,654.41 RMB, mainly driven by government subsidies[13] - Cash received from tax refunds rose by 466.13% to 2,139,647.10 RMB from 377,943.53 RMB, attributed to income tax refunds[13] - Cash received from other operating activities increased by 325.86% to 10,788,692.51 RMB from 2,533,381.36 RMB, also due to government subsidies[13] Financial Management - Financial expenses decreased by 45.00% to -10,534,360.11 RMB compared to -19,154,283.49 RMB in the same period last year, primarily due to exchange rate gains[13] - The weighted average return on equity decreased by 4.78 percentage points to 15.58%[6] Investment Activities - Cash paid for investments increased by 48.95% to 959,600,000.00 RMB from 644,250,000.00 RMB, primarily for purchasing structured deposits and financial products[14] - Cash received from new share issuance amounted to 402,549,112.00 RMB, reflecting funds raised from the issuance of new shares[14] Comprehensive Income - Total comprehensive income for Q3 2020 was ¥65,477,680.56, an increase from ¥42,005,738.22 in Q3 2019, marking a growth of 55.9%[25] - The total comprehensive income for Q3 2020 was CNY 61,403,039.95, an increase from CNY 39,519,140.77 in Q3 2019, indicating a growth of about 55.5%[28]

Financial Performance - The company reported a total revenue of 100 million RMB for the first half of 2020, representing a year-on-year increase of 15%[14]. - The user base grew to 1.5 million active users, an increase of 20% compared to the previous year[14]. - The gross profit margin for the first half of 2020 was reported at 45%, a slight increase from 42% in the same period last year[14]. - The company's basic and diluted earnings per share decreased by 20.83% to CNY 0.19 compared to the same period last year[21]. - Net profit attributable to shareholders decreased by 15.99% to CNY 71.42 million, primarily due to increased R&D expenses and reduced investment income from associates[22]. - Operating cash flow decreased by 28.86% to CNY 29.14 million, mainly due to an increase in accounts receivable balance impacted by the pandemic[22]. - The company's operating revenue for the first half of 2020 reached ¥280,360,073.90, remaining stable compared to the same period last year, while gross margin increased[68]. - Net profit attributable to shareholders was ¥71,422,090.04, a decrease of 15.99% year-on-year, primarily due to increased R&D investment and reduced investment income from joint ventures[68]. - The net cash flow from operating activities decreased by 28.86% to CNY 29.14 million, primarily due to an increase in accounts receivable influenced by the pandemic[81]. - The company reported a total comprehensive income of RMB 84,820,103.74 for the first half of 2020[168]. Research and Development - The company is investing 50 million RMB in research and development for artificial intelligence technologies[14]. - R&D investment as a percentage of operating revenue increased by 1.42 percentage points to 9.46%[21]. - The company emphasizes R&D investment, establishing a technical R&D system for both Japanese software development services and proprietary software products[34]. - The company has developed unique industry solutions in project management, data processing, cloud computing, internet applications, and mobile development technologies[32]. - The company has successfully integrated emerging financial technologies such as cloud computing, big data, and artificial intelligence into most of its projects, serving various clients including insurance, banking, and e-commerce[32]. - The company has developed a SaaS multi-tenant and resource expansion framework for online sales and services in the insurance sector, enhancing operational efficiency[34]. - The company has completed the prototype design and coding for the new generation large investment banking comprehensive management solution, with a budget of 5,000,000.00 and an initial investment of 1,247,350.18[50]. - The company has invested 10,300,000.00 in a big data intelligent engine platform, achieving sub-second processing times for real-time data, enhancing marketing services in the financial sector[51]. - The company has completed the framework construction and main functional testing for a data-driven digital marketing solution, aiming to enhance customer engagement and increase transaction volume[52]. - The company has established a talent training system to ensure a stable and skilled workforce, crucial for its software development services[64]. Market Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by the end of 2021[14]. - The company focuses on providing customized software development services for the financial industry, including securities, insurance, banking, and asset management[28]. - The software development services are primarily delivered through project contracts, with a focus on long-term partnerships with clients[29]. - The company has established long-term partnerships with major Japanese software contractors, enhancing operational efficiency and reducing sales costs[61]. - The company is actively addressing risks related to reliance on the Japanese market, which is its primary revenue source, and is monitoring economic and political conditions in Japan[72]. Financial Position - The company's total assets increased by 44.03% to CNY 1.14 billion, driven by the funds raised from the initial public offering[22]. - The company's total liabilities decreased to CNY 81,028,361.95 from CNY 109,245,754.48[138]. - The total equity attributable to shareholders increased to CNY 1,056,215,136.13 from CNY 679,711,001.10[138]. - Cash and cash equivalents rose to CNY 679,524,970.42, compared to CNY 391,892,318.01 at the end of 2019, reflecting an increase of approximately 73.3%[136]. - The company's total current assets reached CNY 841,249,463.61, up from CNY 488,737,556.24, indicating a growth of approximately 72.1%[136]. - The total equity at the end of the current period is reported as 1,057,254,837.99, reflecting an increase from the previous period[159]. Shareholder Information - Major shareholder Zhang Baoquan holds 19.86% of the shares, totaling 79,425,226 shares, while Wu Yanfang holds 16.67%, totaling 66,683,517 shares[124]. - The company has a total of 363,870,673 restricted shares, which will be released on May 11, 2023[121]. - The company has established various partnerships, including with Xinyu Huaying and Xinyu Fuhui, which are involved in employee stock ownership plans[126]. - The company has committed to long-term holding of its shares and will not reduce its holdings prior to the stock's listing[93]. - The company will not reduce shares if it is subject to major legal violations that could lead to delisting[95]. Compliance and Governance - The board of directors has confirmed that the financial report is accurate and complete, ensuring accountability for any discrepancies[5]. - The company has implemented a management system for related party transactions to ensure fairness and protect shareholder rights[106]. - The company has not disclosed any major related party transactions during the reporting period[111]. - The company has not been listed as a key pollutant discharge unit and emphasizes its commitment to environmental protection[113]. - The financial statements comply with the requirements of the accounting standards, reflecting the company's financial position accurately[175].