Revenue and Profit - The company's revenue for Q1 2021 was ¥36,531,150.15, representing a 57.10% increase compared to ¥23,253,018.88 in the same period last year[7] - Net profit attributable to shareholders was ¥4,299,341.11, up 12.67% from ¥3,816,023.46 year-on-year[7] - The net profit after deducting non-recurring gains and losses was ¥4,066,272.81, an 18.13% increase from ¥3,442,257.71 in the previous year[7] - The basic earnings per share for the period was ¥0.0260, reflecting a 12.55% increase compared to ¥0.0231 in the same period last year[7] - The company reported a net profit of CNY 83,084,403.46, up from CNY 78,785,062.35, indicating a growth of about 5.8% in retained earnings[31] - The total comprehensive income for Q1 2021 was 4,299,341.11, compared to 3,575,280.89 in the same period last year, indicating an increase of approximately 20.2%[39] Assets and Liabilities - The total assets at the end of the reporting period were ¥1,579,539,538.40, a 1.02% increase from ¥1,563,562,870.86 at the end of the previous year[7] - The total liabilities increased to CNY 118,411,933.90 from CNY 106,734,607.45, indicating a rise of approximately 10.7%[30] - The total equity attributable to shareholders rose to CNY 1,461,103,075.44 from CNY 1,456,803,734.35, reflecting a slight increase of around 0.3%[31] - The total non-current assets were reported at CNY 1,032,475,966.31, slightly up from CNY 1,028,272,884.33[31] - The company’s total current liabilities increased to CNY 114,476,846.72 from CNY 103,027,824.96, representing an increase of approximately 11.9%[30] Cash Flow - The net cash flow from operating activities was -¥40,256,829.40, a 6.10% increase in loss compared to -¥37,942,955.99 in the same period last year[7] - Total cash inflow from operating activities was 30,758,214.14 CNY, while cash outflow was 71,015,043.54 CNY, resulting in a significant cash outflow[46] - The net cash flow from investing activities was -401,116.08 CNY, a decrease from -50,058,540.00 CNY in the previous period, reflecting reduced investment losses[46] - Cash inflow from financing activities was 7,000,000.00 CNY, while cash outflow totaled 7,121,395.84 CNY, leading to a net cash flow of -7,121,395.84 CNY[47] - The ending balance of cash and cash equivalents was 132,222,860.17 CNY, down from 180,002,201.49 CNY at the beginning of the period[47] Operating Costs and Expenses - Operating costs surged by 230.30% year-on-year to ¥13,001,561.28, mainly attributed to lower gross margins from Shandong Zhiyou Network Security Company[14] - The total operating costs for Q1 2021 were 33,039,732.68, up from 19,466,632.82 in the previous period, indicating a rise of approximately 69.5%[38] - Management expenses rose by 50.27% to ¥5,204,306.05, mainly due to reclassification of expense types[14] - Research and development expenses for Q1 2021 amounted to 6,239,936.75, compared to 5,875,152.83 in the previous period, representing an increase of approximately 6.2%[38] - The sales expenses for Q1 2021 were 7,691,732.12, compared to 6,316,246.58 in the previous period, representing an increase of about 21.8%[38] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 165,052,625[10] - The top shareholder, Shenzhen Zhongnongda Technology Investment Co., Ltd., held 14.17% of the shares, totaling 23,876,848 shares[10] Other Financial Activities - The company received government subsidies amounting to ¥96,883.93 during the reporting period[8] - The company capitalized development expenditures of ¥4,227,865.04, marking a 100% increase compared to the previous period[14] - The company has ongoing investments in long-term equity amounting to CNY 1,286,000,000.00, unchanged from the previous period[33] - The company reported a significant increase in payments to employees, totaling 16,741,934.34 CNY, compared to 15,085,938.22 CNY in the previous period[46] - Tax payments increased to 12,524,915.97 CNY from 2,458,035.19 CNY, indicating a rise in tax liabilities[46] Audit and Compliance - The company has not undergone an audit for the first quarter report, which may affect the reliability of the financial data presented[52]

Financial Performance - Operating revenue reached CNY 93,498,236.15, a significant increase of 17,929.40% year-on-year[7] - Net profit attributable to shareholders surged by 783.92% to CNY 54,866,279.19 compared to the same period last year[7] - Basic earnings per share rose by 448.08% to CNY 0.3324[7] - The company reported a net profit excluding non-recurring gains and losses of CNY 54,698,211.68, an increase of 780.57% year-on-year[7] - Total operating revenue for Q3 2020 reached ¥93,498,236.15, a significant increase from ¥518,587.56 in the same period last year, reflecting a growth of approximately 17,900%[38] - The net profit for the quarter was CNY 52,750,231.70, a significant recovery from a net loss of CNY 8,482,213.64 in the previous year[40] - The profit attributable to the parent company's shareholders was CNY 54,866,279.19, compared to a loss of CNY 8,022,319.94 in the same quarter last year[40] - The total comprehensive income for the quarter was CNY 54,841,403.59, compared to a loss of CNY 13,047,805.02 in the previous year, highlighting a strong recovery[48] Cash Flow - Cash flow from operating activities showed a negative net amount of CNY -17,811,166.40, a decline of 78.14% year-on-year[7] - Cash flow from operating activities showed a significant decline of 442.78%, amounting to -¥53,555,103.33, primarily due to cash flow issues at Zhiyou Network Security[15] - Cash inflows from operating activities totaled CNY 118,521,590.37, slightly down from CNY 118,617,894.04 in the previous year, indicating stable cash flow management[53] - The net cash flow from operating activities was -53,555,103.33 CNY, compared to -9,866,840.42 CNY in the previous period, indicating a significant decline in operational performance[55] - The total cash and cash equivalents at the end of the period were 129,202,075.78 CNY, down from 147,697,471.46 CNY at the beginning of the period[56] Assets and Liabilities - Total assets increased by 3.60% to CNY 1,548,312,578.02 compared to the end of the previous year[7] - The company's total liabilities decreased from ¥90,033,219.05 at the end of 2019 to ¥86,611,422.91 by September 30, 2020, a reduction of approximately 4.7%[31] - The company's total assets slightly decreased from ¥1,416,011,020.82 at the end of 2019 to ¥1,414,210,406.55, a decline of about 0.13%[34] - The total equity attributable to shareholders increased from ¥1,389,777,903.25 at the end of 2019 to ¥1,449,621,481.79, representing a growth of about 4.3%[31] Shareholder Information - The total number of shareholders at the end of the reporting period was 21,511[11] - The largest shareholder, Shenzhen Zhongnongda Technology Investment Co., Ltd., held 14.47% of the shares[11] Research and Development - Research and development expenses surged by 398.38% to ¥16,528,997.73, reflecting significant investment in R&D by Zhiyou Network Security[15] - Research and development expenses for the quarter amounted to CNY 4,529,450.80, compared to CNY 68,575.83 in the same period last year, indicating a substantial increase in investment in innovation[39] - The company aims to enhance its market presence and product offerings through ongoing research and development initiatives[47] Operational Efficiency - The total operating costs for Q3 2020 were ¥28,243,187.19, compared to ¥3,687,256.00 in Q3 2019, indicating an increase of about 667%[38] - The total operating costs decreased to CNY 76,537,602.48 from CNY 127,628,302.75, representing a reduction of approximately 40%[46] - Sales expenses were reported at CNY 22,401,971.24, down from CNY 83,101,037.48, reflecting a cost-cutting strategy[46] - The company experienced a credit impairment loss of CNY -8,930,328.52, indicating challenges in asset quality[39] Investment Activities - The company reported a 223.97% increase in cash flow from investing activities, totaling ¥22,818,799.17, mainly from cash received from the disposal of equity in a subsidiary[16] - The cash inflow from investment activities was 73,388,549.23 CNY, compared to 36,091,950.00 CNY in the previous period, showing increased investment activity[55] Compliance and Reporting - The company did not engage in any repurchase transactions during the reporting period[12] - The company did not undergo an audit for the third quarter report, which may affect the reliability of the financial data presented[60] - The company has not applied new revenue and leasing standards, indicating a potential area for future compliance and reporting adjustments[60]

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 53,481,116.86, a decrease of 50.32% compared to CNY 107,657,124.90 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was CNY 2,574,595.02, an increase of 234.18% from a loss of CNY 1,918,824.57 in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 2,002,008.84, up 116.50% from a loss of CNY 12,131,465.22 in the same period last year[18]. - The basic earnings per share increased to CNY 0.0156, a rise of 168.42% from a loss of CNY 0.0228 per share in the previous year[18]. - The total assets at the end of the reporting period were CNY 1,480,736,950.40, a decrease of 0.92% from CNY 1,494,490,266.24 at the end of the previous year[18]. - The net assets attributable to shareholders of the listed company were CNY 1,394,755,202.60, an increase of 0.36% from CNY 1,389,777,903.25 at the end of the previous year[18]. - The net cash flow from operating activities was CNY -35,743,936.93, a significant decline compared to CNY 131,415.62 in the same period last year, representing a decrease of 27,299.15%[18]. - The weighted average return on net assets was 0.18%, an increase of 1.95% compared to -1.77% in the previous year[18]. - The company achieved operating revenue of 53.48 million yuan, a decrease of 50.32% compared to the previous year, primarily due to the sale of Shandong Huatai's revenue in 2019[42]. - The net profit attributable to shareholders was 2.58 million yuan, marking a turnaround from a loss in the same period last year[40]. - Operating cash flow showed a significant outflow of 35.74 million yuan, a decrease of 27,299.15% year-on-year, indicating substantial cash expenditures[42]. - The company reported a gross margin of 75.82% for its mobile network security business, which accounted for 99.38% of total revenue[48]. - The company’s sales expenses decreased by 82.25% to 14.75 million yuan, reflecting the absence of Shandong Huatai's sales costs[42]. - The company’s investment activities resulted in a cash outflow of 34.16 million yuan, compared to a cash inflow of 31.61 million yuan in the previous year[42]. - The mobile network security segment generated revenue of 53.15 million yuan, while the mobile gaming segment saw a drastic decline of 95.98% to 171,473.86 yuan[46]. - The company’s cash and cash equivalents decreased by 286.13% to a net outflow of 59.09 million yuan, primarily due to investments in financial products[43]. - The company has ceased to include revenue from the biopharmaceutical business following the divestiture of Shandong Huatai, which was completed in March 2019[43]. - Direct costs increased by 516.66% year-on-year, amounting to 10,806,507.08, representing 83.54% of operating costs[51]. - The amortization of intangible assets rose by 24.54% year-on-year, totaling 1,157,137.65, accounting for 8.94% of operating costs[51]. - The company’s cash and cash equivalents decreased by 3.90% to 88,758,117.57, which is 5.99% of total assets[56]. - Accounts receivable slightly decreased by 0.03% to 261,385,556.57, representing 17.65% of total assets[56]. - The company’s subsidiary, Beijing Zhiyou Network Security Technology Co., Ltd., reported a net profit of 7,423,874.35 during the reporting period[65]. - The company reported a total comprehensive income of CNY 2.09 million, compared to a loss of CNY 4.57 million in the same period of the previous year[162]. Strategic Initiatives - The company operates in the mobile application security service sector, providing comprehensive solutions across the entire application lifecycle, with a core brand "Aijiam" offering seven product systems[24]. - The company has established a strong market position in mobile application security, leveraging extensive experience and high-quality service capabilities[31]. - The company has actively participated in drafting industry standards, enhancing its understanding of industry trends and positioning itself advantageously for new technology and product development[35]. - The company holds various certifications, including ISO9001, ISO20000, and ISO27001, which enhance its competitive edge in the network security industry[36]. - The company emphasizes user-centered product development, continuously upgrading its offerings based on customer feedback to maintain market competitiveness[37]. - Research and development investment increased significantly by 408.68% to 16.52 million yuan, focusing on technological innovation[42]. - The company is focused on expanding its market presence through strategic acquisitions and partnerships[128]. - The company plans to enhance its product offerings through ongoing research and development initiatives[128]. - The company plans to enhance operational and management capabilities to maintain strong market competitiveness and foster new business growth points[68]. Risk Management - The company has outlined potential risks and corresponding countermeasures in the report, which investors are advised to read carefully[5]. - The company faces risks related to market competition, regulatory changes, and potential performance commitments not being met, particularly concerning the acquisition of Zhiyou Network Security[72]. - The company has established performance compensation agreements to mitigate risks associated with goodwill impairment from the acquisition of Zhiyou Network Security[72]. - The company has implemented measures to improve accounts receivable management to address the risk of bad debts as revenue scales increase[71]. Compliance and Governance - The company has committed to providing accurate and complete information related to the acquisition of 100% equity in Zhiyou Network, ensuring no false records or misleading statements[78]. - The company has fulfilled its commitments regarding the authenticity and completeness of information provided during the restructuring process as of January 2020[78]. - The company guarantees that all documents related to the restructuring are consistent with original documents and that all signatures are valid and authorized[80]. - The company will disclose relevant information about the restructuring in accordance with legal regulations and ensure the accuracy of such disclosures[80]. - The company has committed to bear legal responsibility for any losses caused by false or misleading information during the restructuring process[80]. - The company has provided necessary documents to intermediaries involved in the restructuring, ensuring their authenticity and accuracy[80]. - The company has undertaken to disclose any information related to the restructuring promptly and accurately[80]. - The company has assured that no shares will be transferred during any ongoing investigations related to the restructuring[80]. - The company reported a significant administrative penalty of 1 million yuan due to delayed information disclosure, which is not classified as a major violation[84]. - The company has not faced any administrative penalties or criminal charges in the past three years, maintaining a good integrity record[84]. - The actual controller of the company, Li Linlin, was penalized in August 2018 for information disclosure violations, receiving a warning and a fine of 1 million yuan[84]. - The company has committed to comply with national laws and regulations over the past three years, with no major violations reported[84]. - There have been no incidents of insider trading related to major asset restructuring in the last six months[84]. - The company has not engaged in any unauthorized use of funds or assets in the past three years[84]. - The company has ensured that all major asset restructuring information is kept confidential and has not leaked any insider information[86]. - The company has not faced any administrative regulatory measures or disciplinary actions from the securities regulatory authority in the last five years[86]. - The company has committed to maintaining the integrity of its financial practices and protecting investor rights[86]. - The company has not reported any significant civil lawsuits or arbitration cases related to economic disputes in the last five years[86]. - The company has committed to fulfilling all capital contribution obligations as stipulated in the articles of association of the target company, with no instances of false contributions or withdrawal of contributions[88]. - There are no current or potential ownership disputes regarding the target assets, and the ownership rights are clear without any restrictions such as pledges or freezes[88]. - The company has confirmed that there are no insider trading investigations related to the acquisition of 100% equity of Zhiyou Network Security in the last 36 months[89]. - The financial statements comply with the requirements of the enterprise accounting standards, reflecting the company's financial position and operating results accurately[198]. Shareholder Information - The company completed the issuance of shares to acquire 100% equity of Zhiyou Network Security, with new shares listed on January 20, 2020[114]. - The company issued 81,075,941 new shares for the acquisition of Zhiyou Network Security, which were listed on January 20, 2020, and are all subject to limited sale conditions[120]. - The total number of shares after the issuance is 165,052,625, with 49.16% being limited sale shares[120]. - The basic earnings per share for the first half of 2020 is 0.0156, compared to 0.0369 for the full year of 2019[125]. - The diluted earnings per share for the first half of 2020 is 0.0156, consistent with the previous year's full year figure of 0.0369[125]. - The net asset per share attributable to ordinary shareholders is 8.45 as of June 30, 2020, slightly up from 8.42 at the end of 2019[125]. - The company has completed the registration procedures for the newly issued shares related to the acquisition of Zhiyou Network Security[124]. - The company holds 100% equity in Zhiyou Network Security following the completion of the acquisition[124]. - The shareholding structure shows that limited sale shares account for 49.16% of the total shares post-issuance[120]. - The company’s board approved the share issuance for the acquisition in multiple meetings held in 2019[123]. - The shareholding changes include significant releases of limited sale shares due to the acquisition commitments[126]. - The company issued 81,075,941 shares at a price of RMB 15.80 per share on January 13, 2020, for the acquisition of Zhiyou Network Security[129]. - The total number of ordinary shareholders at the end of the reporting period was 16,442[131]. - The largest shareholder, Shenzhen Zhongnongda Technology Investment Co., Ltd., holds 14.47% of the shares, totaling 23,876,848 shares, with 10,216,069 shares pledged[131]. - The second-largest shareholder, Peng Ying, holds 9.88% of the shares, totaling 16,310,698 shares, all of which are pledged[131]. - The company has a total of 81,083,941 shares outstanding after the issuance[129]. - The report indicates that there were no changes in the number of shares held by major shareholders during the reporting period[131]. - The company has established a commitment to maintaining transparency with its shareholders regarding shareholding changes and pledges[131]. - The company is actively managing its shareholder structure to optimize capital and support growth strategies[131]. Operational Challenges - The company has assessed its ability to continue as a going concern for the next 12 months and found no significant doubts[196]. - The financial report for the first half of 2020 was not audited[148]. - The company has not experienced any bankruptcy reorganization matters during the reporting period[92]. - The company was involved in a lawsuit regarding its 5% equity stake in Guangzhou Huaxing, with a disputed amount of ¥11.18 million, which was dismissed in the first instance[93]. - The company has no significant litigation matters to disclose for the reporting period, with a minor case involving ¥4.25 million still pending judgment[94]. - There were no penalties or rectifications during the reporting period, indicating a stable compliance status[96]. - The integrity status of the company and its controlling shareholders remains good, with no significant debts or court judgments unmet[97]. - The company did not engage in any major related party transactions during the reporting period[99]. - The company has not conducted any significant asset or equity acquisitions or sales during the reporting period[100]. - The company has a total of ¥50 million in entrusted financial management, with no overdue amounts[110]. - The company does not belong to the key pollutant discharge units as per environmental protection regulations[111]. - The company has not initiated any targeted poverty alleviation efforts during the reporting period[112].

Financial Performance - The company's operating revenue for Q1 2020 was ¥23,253,018.88, a decrease of 78.26% compared to ¥106,952,791.02 in the same period last year[8] - Net profit attributable to shareholders was ¥3,816,023.46, down 28.67% from ¥5,350,063.36 year-on-year[8] - Basic and diluted earnings per share were both ¥0.0231, representing a decrease of 63.74% from ¥0.0637[8] - Total operating revenue for Q1 2020 was CNY 23,253,018.88, a decrease of 78.24% compared to CNY 106,952,791.02 in Q1 2019[39] - Net profit for Q1 2020 was CNY 3,575,280.89, a decline of 25.4% from CNY 4,785,998.10 in Q1 2019[40] - Total comprehensive income attributable to the parent company was CNY 3,816,023.46, down from CNY 5,350,063.36 in the previous period[41] - Operating revenue for the first quarter was CNY 160,416.03, a decrease of 19.8% compared to CNY 200,025.00 in the previous period[43] - Net profit for the first quarter was CNY -1,248,546.10, compared to a net profit of CNY 32,725,581.17 in the same period last year, indicating a significant decline[44] Cash Flow and Assets - The net cash flow from operating activities was -¥37,942,955.99, a decline of 1,056.72% compared to ¥3,965,950.76 in the previous year[8] - Cash flow from operating activities showed a net outflow of CNY -37,942,955.99, compared to a net inflow of CNY 3,965,950.76 in the previous period[48] - Cash and cash equivalents decreased to RMB 66,839,900.47 from RMB 147,843,571.46 over the same period[29] - Cash and cash equivalents at the end of the period were CNY 66,849,943.10, a decrease from CNY 83,995,883.48 at the end of the previous period[49] - The ending balance of cash and cash equivalents was 38,723,910.73 CNY, down from 77,687,587.18 CNY in the previous period[52] - The company reported a net increase in cash and cash equivalents of -54,672,746.89 CNY for the period[52] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,477,356,853.90, a decrease of 1.15% from ¥1,494,490,266.24 at the end of the previous year[8] - The company's total assets as of March 31, 2020, were CNY 1,411,402,419.92, slightly down from CNY 1,416,011,020.82 at the end of 2019[36] - Total liabilities decreased to CNY 15,977,097.28 in Q1 2020 from CNY 21,739,856.41 in Q1 2019, reflecting a reduction of 26.5%[36] - The company reported a total current liability of RMB 62,119,314.30, down from RMB 85,564,628.83[31] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 12,779[12] - The largest shareholder, Shenzhen Zhongnongda Technology Investment Co., Ltd., held 14.47% of the shares, amounting to 23,876,848 shares[12] Operational Changes and Strategies - The company completed the issuance of shares to acquire 100% of Zhiyou Network Security, with the approval from the China Securities Regulatory Commission received on December 18, 2019[18] - The company plans to focus on new product development and market expansion as part of its future strategy[43] - The company conducted 13 communication sessions regarding its main business and the impact of the COVID-19 pandemic during the reporting period[23] Expenses and Investments - Research and development expenses for Q1 2020 were CNY 5,875,152.83, significantly higher than CNY 1,017,599.91 in Q1 2019, indicating a focus on innovation[40] - The company reported a significant reduction in sales expenses, which fell to CNY 6,316,246.58 from CNY 79,714,192.95, a decrease of 92.1%[40] - The company reported a significant increase in management expenses to CNY 1,561,693.42 from CNY 883,250.37, reflecting higher operational costs[43] - Investment income for the period was CNY 44,218,500.00, contributing positively despite the overall loss[44] Legal and Compliance - The company is involved in a lawsuit regarding Guangzhou Huaxing Automobile Co., Ltd., with a claim of RMB 11,178,082.32; the first-instance judgment was in favor of the company, but the plaintiff has appealed[19] - The company has no overdue external guarantees or non-operating fund occupation by controlling shareholders or related parties during the reporting period[24][25] - The company did not undergo an audit for the first quarter report[53] - The company did not apply new revenue and leasing standards for the current reporting period[53] - The company has not engaged in any securities investments or derivative investments during the reporting period[20][22]

Business Transition and Acquisitions - The company reported a significant shift in its main business focus, transitioning from biomedicine to mobile internet security and gaming operations as of December 2019[15]. - The company completed the acquisition of mobile internet security business in December 2019, marking a strategic expansion into this sector[15]. - The company completed the acquisition of 100% equity in Zhiyou Network Security in December 2019, expanding its business into mobile application security services[56]. - In 2019, the company completed the acquisition of Zhiyou Network Security, which achieved a net profit of 90.99 million yuan after deducting non-recurring gains and losses, fulfilling its performance commitment for the year[39]. - The acquisition of Zhiyou Network Security included a performance commitment with a net profit of no less than RMB 117 million and RMB 152.1 million for 2020 and 2021, respectively[97]. - The company has committed to maintaining control over the listed company for 60 months following the completion of the acquisition of 100% equity in Zhiyou Network Security[126]. - The company has fulfilled its commitment to avoid competition with its parent company and subsidiaries during the acquisition process[107]. - The company completed the sale of a 50% stake in Shandong Peking University High-Tech Huatai Pharmaceutical Co., Ltd. as a significant asset disposal[133]. Financial Performance - The company's operating revenue for 2019 was ¥108,246,697.32, a decrease of 70.49% compared to ¥366,868,804.70 in 2018[18]. - Net profit attributable to shareholders was ¥3,099,367.87, a significant increase of 115.29% from a loss of ¥20,270,783.78 in 2018[18]. - The company's total assets increased by 325.57% to ¥1,494,490,266.24 at the end of 2019, compared to ¥351,177,470.17 at the end of 2018[18]. - The company reported a basic earnings per share of ¥0.0369, a turnaround from a loss of ¥0.2414 per share in 2018[18]. - The weighted average return on equity improved to 2.97% from -17.00% in the previous year[18]. - The company reported a net profit margin of 18% for 2019, indicating strong operational efficiency[110]. - The company reported a net profit margin of 12% for 2020, an increase from 10% in 2019, indicating improved profitability[112]. Revenue and Market Trends - The company reported a significant increase in revenue, achieving a total of 1.2 billion in 2019, representing a growth of 15% compared to the previous year[110]. - The company provided guidance for 2020, expecting revenue growth to be between 10% and 12%, projecting total revenue of approximately 1.32 billion to 1.344 billion[110]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share by the end of 2021[110]. - The company is exploring potential acquisitions to enhance its technology capabilities, with a budget of up to 200 million allocated for this purpose[110]. - The company plans to increase its marketing budget by 20% in 2020 to support new product launches and brand awareness[115]. Risk Management and Compliance - The company emphasizes the importance of risk management and has outlined potential risks and countermeasures in its report[5]. - The company faces risks from market competition and regulatory changes, which could impact demand and operational performance[92]. - The company is committed to improving internal management and compliance to ensure effective execution of internal controls[90]. - The company has implemented measures to protect intellectual property and improve employee retention to mitigate risks associated with talent loss[95]. - The company has established performance compensation arrangements linked to the recovery of accounts receivable in the acquisition of Zhiyou Network Security[96]. Shareholder and Governance Matters - The company plans not to distribute cash dividends or issue bonus shares for the fiscal year[6]. - The company did not propose any cash dividends for 2019, 2018, or 2017, despite having positive distributable profits in 2019[101]. - The company guarantees that its financial personnel will operate independently and will not hold positions or receive compensation from other enterprises controlled by the promisor[118]. - The company has committed to avoiding any business competition with its subsidiaries and will notify the company of any similar business opportunities[120]. - The company has pledged to implement measures to ensure that any dilution of immediate returns due to the acquisition of 100% equity in Zhiyou Network Security is compensated[124]. Research and Development - The company reported a significant reduction in R&D expenses to ¥1.02 million, down 94.17% from ¥17.47 million in the previous year, primarily due to the divestiture of Shandong Huatai[60]. - The company aims to support technological innovation and strengthen its core competitiveness by investing in R&D and attracting high-end talent[89]. - Research and development expenses increased to 150 million, accounting for 12.5% of total revenue, reflecting the company's commitment to innovation[110]. Operational Changes and Future Outlook - The company plans to optimize its business structure and enhance profitability by focusing on mobile application security services and diversifying its client base[88]. - New product launches are anticipated in Q2 2020, including a next-generation software platform aimed at enhancing user experience and engagement[110]. - The company is considering strategic acquisitions to enhance its competitive position, with a budget of 300 million RMB earmarked for potential targets in the tech sector[112]. - The company has maintained a strong balance sheet, with total assets of 2 billion RMB and a debt-to-equity ratio of 0.5, reflecting financial stability[112].

Financial Performance - Net profit attributable to shareholders was CNY -8,022,319.94, a decrease of 75.33% year-on-year[7]. - Operating revenue fell by 99.49% to CNY 518,587.56 for the reporting period[7]. - The basic earnings per share was CNY -0.0955, down 75.23% compared to the same period last year[7]. - Operating profit for the current period is -8,833,801.18, compared to -6,450,175.79 in the previous period, indicating a worsening performance[41]. - Net profit for the current period is -8,482,213.64, slightly improved from -8,707,323.76 in the previous period[42]. - The company reported a total comprehensive loss of -8,482,213.64 for the current period, compared to -8,707,323.76 in the previous period[42]. - The company reported a net loss of CNY 13,047,805.02 for Q3 2019, compared to a net loss of CNY 7,308,635.42 in the same period last year, indicating a deterioration in performance[48]. - The total profit for the quarter was CNY -5,846,578.10, compared to CNY -6,873,638.86 in Q3 2018, showing an improvement in loss[48]. Cash Flow - Cash flow from operating activities showed a net outflow of CNY -9,866,840.42, a decline of 305.78%[7]. - The net cash flow from operating activities was negative at -¥9,866,840.42, a decrease of 305.78% compared to the previous period[15]. - Cash flow from operating activities was CNY 108,111,982.74, down from CNY 267,207,397.82 in the previous year, indicating a decrease of approximately 59.6%[54]. - Total cash inflow from operating activities was 118,617,894.04 CNY, while cash outflow was 128,484,734.46 CNY, resulting in a net cash flow of -9,866,840.42 CNY[55]. - The company reported a net increase in cash and cash equivalents of -28,273,181.38 CNY, with a closing balance of 20,730,114.94 CNY[56]. - The cash flow from financing activities was 0.00 CNY, indicating no new financing or debt repayment during the quarter[56]. Assets and Liabilities - Total assets decreased by 62.99% to CNY 129,978,280.19 compared to the end of the previous year[7]. - The total current assets decreased to CNY 90,906,824.18 from CNY 301,566,235.23, representing a decline of about 69.9% year-over-year[31]. - The total liabilities decreased to CNY 12,391,551.14 from CNY 167,850,868.44, a decline of approximately 92.6%[33]. - The total equity attributable to shareholders decreased to CNY 99,294,631.21 from CNY 109,235,775.72, reflecting a decrease of about 9.0%[33]. - The company’s total liabilities and equity totaled CNY 129,978,280.19, down from CNY 351,177,470.17, indicating a decrease of approximately 63.0%[33]. Shareholder Information - The total number of shareholders at the end of the reporting period was 10,321[11]. - The largest shareholder, Shenzhen Zhongnongda Technology Investment Co., Ltd., holds 28.43% of the shares[11]. - The company did not engage in any repurchase transactions during the reporting period[12]. Investment Activities - The company reported non-recurring gains and losses totaling CNY 10,227,456.66 for the year-to-date period[8]. - The net cash flow from investment activities was -¥18,406,340.96, reflecting a significant increase in investment in bank wealth management products[15]. - The company recorded investment income of CNY 10,641,275.07, significantly higher than CNY 3,934,719.49 in the previous year, marking an increase of approximately 170.5%[48]. Expenses - Research and development expenses for the current period are 68,575.83, down from 2,232,481.90 in the previous period[41]. - Management expenses for the current period are 3,146,311.83, compared to 7,754,628.25 in the previous period, indicating a reduction in overhead costs[41]. - Income tax expenses increased significantly by 1555.47% to ¥7,201,226.92, mainly due to income tax expenses arising from the disposal of the subsidiary Shandong Huatai[15]. Corporate Actions - The company is planning a major asset restructuring to acquire 100% equity of Beijing Zhiyou Network Security Technology Co., Ltd. for ¥128,100 million[16]. - The company has approved the sale of a 20.17% stake in Guangzhou Huowu Software Development Co., Ltd., pending shareholder approval[18]. - The company conducted 14 communication sessions regarding restructuring matters during the reporting period[24].

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 107,657,124.90, a decrease of 30.32% compared to CNY 154,491,315.75 in the same period last year[19]. - The net profit attributable to shareholders was a loss of CNY 1,918,824.57, representing a decline of 196.72% from a profit of CNY 1,983,825.30 in the previous year[19]. - The net cash flow from operating activities was CNY 131,415.62, down 97.06% from CNY 4,474,321.62 in the same period last year[19]. - The company reported a basic earnings per share of -CNY 0.0228, a decline of 196.61% compared to CNY 0.0236 in the same period last year[19]. - The company reported a revenue of RMB 10,765.71 million for the first half of 2019, a decrease of 30.32% year-on-year, largely due to the completion of the sale of Shandong Huatai's equity in March[35]. - The net profit attributable to shareholders was RMB -191.88 million, reflecting the impact of the overall downturn in the gaming industry[35]. - The company's total comprehensive income for the first half of 2019 was CNY 28,808,126.19, reflecting a strong performance compared to CNY 1,543,827.58 in the same period of 2018[135]. - The comprehensive income for the current period shows a total loss of CNY 4,565,591.38, indicating a significant decline in profitability[145]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 148,216,515.95, a decrease of 57.79% from CNY 351,177,470.17 at the end of the previous year[19]. - The company's current assets totaled CNY 103,316,683.60, down from CNY 301,566,235.23, indicating a reduction of about 65.8%[123]. - The total liabilities decreased to CNY 22,147,573.26 from CNY 167,850,868.44, a reduction of approximately 86.8%[125]. - The company's equity attributable to shareholders decreased to CNY 107,316,951.15 from CNY 109,235,775.72, a decline of about 1.8%[125]. - The total equity at the end of the current period is 117,070,659.46 CNY, up from 88,262,533.27 CNY at the end of the previous period, indicating a growth of approximately 32.6%[155]. Cash Flow - The company's cash and cash equivalents increased by 64.78% compared to the beginning of the year, primarily due to the receipt of equity tail payments from the disposal of subsidiary Shandong Huatai[28]. - The company generated an investment cash flow net amount of RMB 31,613,614.00, a significant increase of 4,546.07% due to the receipt of equity transfer payments from Shandong Huatai[39]. - The total cash and cash equivalents at the end of the period were CNY 80,748,325.94, down from CNY 124,859,596.50 at the end of the first half of 2018[140]. - The company recorded a cash inflow from financing activities of CNY 0.00, compared to CNY 21,000,000.00 in the previous year[140]. Business Operations - The company completed the sale of its subsidiary Shandong Huatai in March 2019, which primarily engaged in biomedicine research and production[26]. - The company is involved in mobile internet game operations and biomedicine, with major products including various mobile games and pharmaceutical products[26]. - The company is planning to issue shares to acquire 100% equity of Zhiyou Network Security, with related application documents submitted to the China Securities Regulatory Commission[36]. - The company plans to expand its business by acquiring 100% of Beijing Zhiyou Network Security Technology Co., Ltd., which will add mobile application security services to its portfolio[61]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 9,391[106]. - The largest shareholder, Shenzhen Zhongnongda Technology Investment Co., Ltd., holds 28.43% of shares, totaling 23,876,848 shares[106]. - The second largest shareholder, Zhongke Huitong (Shenzhen) Equity Investment Fund Co., Ltd., holds 6.43% of shares, totaling 5,397,600 shares[106]. - The third largest shareholder, Guohua Life Insurance Co., Ltd. - Universal No. 3, holds 5.01% of shares, totaling 4,208,900 shares[106]. Regulatory and Compliance - The semi-annual financial report for 2019 was not audited, indicating a potential area of concern for investors[120]. - The financial statements were approved by the board of directors on August 29, 2019, ensuring compliance with regulatory requirements[166]. - The company has not identified any significant doubts regarding its ability to continue as a going concern for the next 12 months[169]. Research and Development - The company's research and development expenses decreased by 45.18% to RMB 3,247,956.23, attributed to the completion of the sale of Shandong Huatai's equity[38]. - The company is engaged in pharmaceutical manufacturing and mobile internet gaming, focusing on research and development in biotechnology and new drugs[165]. Tax and Other Expenses - The company's tax expenses increased by 1,609.05% to RMB 7,514,079.79, primarily due to corporate income tax from the disposal of Shandong Huatai[38]. - The company reported a significant decrease in other payables by 75.03%, mainly due to the completion of the equity disposal of Shandong Huatai[28]. Miscellaneous - There are no significant litigation or arbitration matters affecting the company during the reporting period[70]. - The company has not engaged in any related party transactions during the reporting period[76]. - The company has not implemented any employee incentive plans during the reporting period[75].

Financial Performance - The company's operating revenue for 2018 was CNY 366,868,804.70, representing a 164.68% increase compared to CNY 138,605,841.98 in 2017[18]. - The net profit attributable to shareholders for 2018 was a loss of CNY 20,270,783.78, a decrease of 336.62% from a profit of CNY 8,566,720.65 in 2017[18]. - The net cash flow from operating activities was a negative CNY 53,310,246.02 in 2018, a decline of 469.20% compared to a positive CNY 14,439,484.24 in 2017[18]. - Total assets at the end of 2018 amounted to CNY 351,177,470.17, an increase of 30.62% from CNY 268,844,295.64 at the end of 2017[18]. - The net assets attributable to shareholders decreased by 15.58% to CNY 109,235,775.72 at the end of 2018, down from CNY 129,389,206.96 at the end of 2017[18]. - The basic earnings per share for 2018 was CNY -0.2414, a decrease of 336.67% from CNY 0.1020 in 2017[18]. - The weighted average return on net assets was -17.00% in 2018, a decrease of 23.85 percentage points from 6.85% in 2017[18]. - The company reported a significant increase in revenue but faced substantial losses, indicating challenges in profitability despite growth in sales[18]. Business Segments - The biopharmaceutical segment, primarily through subsidiary Shandong Huatai, generated operating income of CNY 325.26 million, a year-on-year increase of 154.71%, with a gross margin of 82.88%[37]. - The mobile internet gaming segment, operated by subsidiary Guokai Interactive, reported operating income of CNY 40.16 million, with a gross margin of 73.15%, reflecting a year-on-year increase of 23.15%[37]. - The revenue from the biopharmaceutical sector was ¥325,262,184.48, accounting for 88.66% of total revenue, with a year-on-year decrease of 3.47%[41]. - The gaming revenue increased to ¥40,162,263.49, which is 10.95% of total revenue, showing a year-on-year growth of 3.82%[41]. Cash Flow and Investments - Cash flow from operating activities showed a negative trend, with a net cash outflow of CNY 50.88 million in Q4 2018[22]. - The company has recognized impairment losses of CNY 22.75 million on equity investments due to performance declines in its subsidiary Guangzhou Huowu Software Development Co., Ltd.[28]. - The company completed the sale of a 50% stake in Shandong Huatai, resulting in the loss of revenue from the biopharmaceutical business[49]. - The company plans to sell 50% of its stake in Shandong Huatai, which is expected to be completed by March 2019, as part of its strategic restructuring[30]. Regulatory and Legal Matters - The company faced a lawsuit regarding the patent for injectable adenosine triphosphate disodium magnesium chloride, with a claim amount of 4.48 million yuan (approximately $0.67 million) for the years 2014-2015[93]. - The company was fined 400,000 yuan (approximately $60,000) by the China Securities Regulatory Commission for information disclosure violations[95]. - Senior management, including Li Linlin, received individual fines for similar violations, totaling 100,000 yuan (approximately $15,000) for Li Linlin alone[96]. - The company is under investigation by the China Securities Regulatory Commission for suspected information disclosure violations, but no major violations were confirmed[113][114]. Corporate Governance - The company has committed to improving governance and internal control systems following the penalties received[96]. - The company has established a salary policy that considers social price levels and employee contributions to determine remuneration[174]. - The company emphasizes employee training and development, organizing regular training sessions to enhance professional skills[175]. - The company strictly adheres to the "Corporate Governance Guidelines" and maintains independence from the controlling shareholder in business, personnel, assets, organization, and finance[181]. Shareholder Information - The total number of shareholders at the end of the reporting period was 9,634, down from 10,044 in the previous month[145]. - The largest shareholder, Shenzhen Zhongnongda Technology Investment Co., Ltd., holds 28.43% of shares, totaling 23,876,848 shares, with 15,216,069 shares pledged[145]. - The second-largest shareholder, Zhongke Huitong (Shenzhen) Equity Investment Fund Co., Ltd., holds 6.43% of shares, totaling 5,397,600 shares, with all shares pledged[145]. - The company has not engaged in any repurchase transactions during the reporting period, indicating stable shareholder confidence[147]. Employee and Management Structure - The company employed a total of 210 staff members, with 94 in production, 76 in technical roles, and 7 in sales[172]. - The company has 7 employees with a master's degree and 59 with a bachelor's degree, indicating a diverse educational background among staff[173]. - The total pre-tax annual remuneration paid to senior management during the reporting period amounted to 1.6788 million yuan[169]. - The management team includes professionals with extensive backgrounds in pharmaceuticals and finance, indicating a strong leadership foundation[159][160].

Financial Performance - The company's operating revenue for Q1 2019 was ¥106,952,791.02, representing a 41.47% increase compared to ¥75,602,890.00 in the same period last year[9] - Net profit attributable to shareholders was ¥5,350,063.36, a significant increase of 159.65% from ¥2,060,512.89 year-on-year[9] - The net profit after deducting non-recurring gains and losses was -¥4,522,062.72, reflecting a decrease of 1,628.30% compared to ¥295,887.89 in the previous year[9] - Total operating revenue for Q1 2019 was CNY 106,952,791.02, an increase of 41.5% compared to CNY 75,602,890.00 in the same period last year[41] - Net profit for Q1 2019 reached CNY 4,785,998.10, compared to CNY 3,181,766.86 in Q1 2018, representing a year-over-year increase of 50.4%[42] - The company reported a profit before tax of CNY 15,694,525.16, significantly higher than CNY 3,621,430.97 in the previous year[42] - The total profit for the period was CNY 43,634,108.23, compared to CNY 2,415,052.69 in the previous year, indicating a substantial increase[44] Cash Flow and Assets - The company's cash flow from operating activities decreased by 55.31%, amounting to ¥3,965,950.76, down from ¥8,873,481.71 in the previous year[9] - As of March 31, 2019, cash and cash equivalents increased to ¥83,995,883.48 from ¥49,003,296.32 as of December 31, 2018, representing a growth of 71.5%[31] - Total current assets decreased significantly to ¥116,221,084.17 from ¥301,566,235.23, a decline of 61.4%[32] - Total assets at the end of the reporting period were ¥161,331,508.35, a decrease of 54.06% from ¥351,177,470.17 at the end of the previous year[9] - The ending cash and cash equivalents balance was CNY 83,995,883.48, a decrease from CNY 135,469,746.97 at the end of the previous period[50] - The net increase in cash and cash equivalents for the first quarter was approximately CNY 35.48 million, compared to a decrease of CNY 1.04 million in the same period last year[54] Investments and Acquisitions - The company completed the sale of a 50% stake in Shandong Huatai, resulting in a significant investment income increase of 3,304.72% during the reporting period[17] - The company plans to acquire control of Beijing Zhiyou Network Security Technology Co., Ltd. through a share issuance, with the stock resuming trading on April 10, 2019[19] - The company announced plans to acquire controlling interest in Beijing Zhiyou Network Security Technology Co., Ltd. through a share issuance[21] - The company reported investment income of CNY 17,460,246.45, a significant increase from CNY 512,824.87 in the same period last year[42] Expenses and Liabilities - The company's management expenses increased by 75.93%, primarily due to the business development of its subsidiary, Guangzhou Guoke Huyu Network Technology Co., Ltd.[17] - Total liabilities decreased to ¥26,423,841.37 from ¥167,850,868.44, a decrease of 84.3%[34] - Total liabilities decreased to CNY 25,765,960.77 from CNY 53,859,150.79, indicating improved financial health[39] - Research and development expenses for Q1 2019 were CNY 1,017,599.91, down from CNY 1,750,097.98 in the previous year, suggesting a potential shift in investment strategy[42] Shareholder Equity - The weighted average return on equity increased to 4.78%, up by 3.20 percentage points from 1.58% in the previous year[9] - The company's equity attributable to shareholders increased to ¥114,585,839.08 from ¥109,235,775.72, a growth of 4.1%[34] - The company's total equity increased to CNY 120,988,114.44, up from CNY 88,262,533.27, reflecting strong retained earnings[39] Other Information - The company reported no overdue commitments from major shareholders or related parties during the reporting period[22] - There were no securities or derivative investments reported during the period[23] - The company did not undergo an audit for the first quarter report[55]