Dividend Distribution - The company plans to distribute a cash dividend of 1.00 RMB per 10 shares to all shareholders, based on a total share capital of 2,860,079,874 shares [6]. - The total cash dividend for 2020 is CNY 286,007,987.40, which represents 15.10% of the net profit attributable to the parent company's shareholders of CNY 1,894,623,217.43 [132]. - The cash dividend per 10 shares is CNY 1.00, with a total of 2,860,079,874 shares as the basis for distribution [134]. - The total undistributed profits remaining after the 2020 dividend distribution amount to CNY 7,156,558,791.77 [134]. - The cash dividend payout ratio for 2020 is lower than the 16.62% ratio from 2019 [132]. Financial Performance - The company's operating revenue for 2020 was ¥59.70 billion, representing a 10.36% increase compared to ¥54.10 billion in 2019 [19]. - The net profit attributable to shareholders for 2020 was ¥1.89 billion, a 2.78% increase from ¥1.84 billion in 2019 [19]. - The net profit excluding non-recurring gains and losses was ¥1.66 billion, showing a significant increase of 27.66% from ¥1.30 billion in 2019 [19]. - The net cash flow from operating activities reached ¥5.07 billion, a remarkable increase of 198.25% compared to ¥1.70 billion in 2019 [19]. - Total assets at the end of 2020 were ¥58.83 billion, reflecting a 7.55% increase from ¥54.74 billion at the end of 2019 [19]. - The net assets attributable to shareholders increased by 5.54% to ¥29.74 billion from ¥28.18 billion in 2019 [19]. Business Focus and Strategy - The company reported significant changes in its main business focus, shifting towards electronic information-related operations since 2002 [17]. - The company is positioned as a leader in cloud computing, big data, AI, and 5G technologies, providing comprehensive lifecycle services across various industries [30]. - The digital economy is rapidly expanding, driving demand for new infrastructure investments in data centers, cloud computing, and AI technologies [31]. - The company launched the "AI in ALL" intelligent strategy, integrating AI capabilities into products and solutions to enhance digital and intelligent empowerment [45]. - The company aims to enhance its cloud computing, big data, and artificial intelligence capabilities, targeting significant market opportunities in the digital infrastructure sector [112]. Research and Development - R&D investment reached CNY 41.31 billion in 2020, with over 40% of the company's total employees engaged in R&D [39]. - The company has accumulated over 11,000 patent applications, with more than 90% being invention patents [39]. - The company has maintained a leading position in R&D investment compared to its industry peers, ensuring its ability to adapt to market changes [121]. - Continuous investment in big data and AI to improve internal digital capabilities and operational efficiency [117]. Market Position and Share - The company maintained a second market share position in China's Ethernet switch market with shares of 35.0% in 2020, and in the enterprise router market with shares of 30.8% [37]. - The company achieved a market share of 31.3% in China's enterprise WLAN market, maintaining the first position for twelve consecutive years [37]. - The company reported quarterly revenues of ¥9.97 billion, ¥15.58 billion, ¥15.81 billion, and ¥18.34 billion for Q1 to Q4 respectively in 2020 [24]. International Expansion - The company has established subsidiaries in seven countries, including Malaysia and Thailand, and has certified 252 overseas partners, expanding its global sales channels [42]. - The company expanded its international business, successfully delivering projects in over 30 countries, with a focus on seven key markets including Japan and Malaysia [66]. Risk Management - The company acknowledges potential risks in its future operations, which are detailed in the report [6]. - The company emphasizes the importance of internal controls and risk management in its foreign exchange hedging operations [103]. - The company is closely monitoring international foreign exchange market dynamics to adjust hedging strategies accordingly [103]. Related Party Transactions - The company reported significant related party transactions, with sales to Unisoc (Beijing) Communication Technology Co., Ltd. amounting to CNY 124.98 million, representing 0.00% of total similar transactions [154]. - Total sales to related parties included CNY 20,970.81 million to Ziguang Hengyue Technology Co., Ltd., accounting for 0.35% of similar transactions [153]. Social Responsibility - The company emphasizes social responsibility and integrates it into its development strategy, focusing on stakeholder interests [188]. - The company invested a total of RMB 3.2 million in four targeted poverty alleviation projects in 2020, focusing on education and industry [190]. - The company donated RMB 3 million worth of educational information technology equipment to the education bureau of Diqing Tibetan Autonomous Prefecture to enhance local digital education [190].

Financial Performance - The company's operating revenue for the reporting period was approximately ¥25.55 billion, representing an increase of 11.66% compared to the same period last year[11]. - The net profit attributable to shareholders of the listed company was approximately ¥881.18 million, a year-on-year increase of 4.21%[11]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥810.76 million, reflecting a significant increase of 35.81% year-on-year[11]. - The basic earnings per share for the reporting period was ¥0.431, an increase of 4.21% compared to the previous year[11]. - The company's operating revenue for the reporting period reached ¥25,548,986,947.66, representing an increase of 11.66% compared to ¥22,881,428,338.43 in the same period last year[30]. - The net profit attributable to the parent company for the first half of 2020 was ¥881,176,144.99, compared to ¥845,598,958.57 in the first half of 2019, representing an increase of 4.2%[113]. - The total comprehensive income for the first half of 2020 was ¥239,091,038.18, compared to ¥86,460,571.23 in the first half of 2019, showing an increase of approximately 176.5%[117]. Cash Flow and Assets - The net cash flow from operating activities was approximately -¥81.97 million, showing a 98.15% improvement compared to the previous year[11]. - Cash and cash equivalents increased to ¥8,846,367,443.00, representing 15.73% of total assets, up from 10.39% last year, a 5.34% increase[37]. - The net increase in cash and cash equivalents decreased by 51.11% to -¥1,031,219,666.66, primarily due to reduced cash flows from investment and financing activities[31]. - The total assets at the end of the reporting period were approximately ¥56.25 billion, an increase of 2.84% from the end of the previous year[11]. - The company's total assets amounted to CNY 56.25 billion, an increase from CNY 54.70 billion at the end of 2019[105][108]. - The company's cash and cash equivalents decreased to CNY 8.85 billion from CNY 9.85 billion, a decline of about 10.16%[105]. Investments and R&D - R&D investment from 2017 to 2019 reached CNY 30.23 billion, CNY 33.23 billion, and CNY 39.41 billion respectively[20]. - The company continues to strengthen its R&D capabilities and optimize product planning to meet customer needs and enhance competitiveness[52]. - The company has a strong focus on innovation and development in the new generation of cloud computing infrastructure and intelligent applications[133]. Market Position and Sales - The company maintains a leading position in the market with a 35.5% share in enterprise network switches for 2019[18]. - The company secured a 70% market share in the high-end router procurement project for China Mobile from 2019 to 2020, marking a strong presence in the enterprise market[23]. - The company achieved a 30% market share in the distributed block storage procurement project for China Mobile with its H3C UniStor X10000 product[25]. - The company has established over 30 high-level large data centers and cloud bases for major telecom operators[19]. Financial Management and Governance - The company has implemented a foreign exchange hedging strategy to manage risks related to currency fluctuations, with specific measures in place to control market and credit risks[44]. - The financial report for the first half of 2020 was not audited[104]. - The company reported no non-operating related party debt transactions during the reporting period[68]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares for this period[2]. - The company received a written notice from its controlling shareholder regarding the transfer of 347,295,413 shares, representing 17.00% of the total share capital[90]. - The largest shareholder, Tibet Tsinghua Communication Investment Co., holds 52.13% of the shares, totaling 1,065,005,719 shares, with 532,502,857 shares pledged[95]. Compliance and Legal Matters - The company has not experienced any major litigation or arbitration matters during the reporting period[58]. - The company is involved in business contract disputes with a total amount of 222.99 million yuan, which is not expected to significantly impact operations[59]. Environmental and Social Responsibility - The company has no significant environmental protection issues and is not listed as a key pollutant discharge unit by environmental authorities[88]. - The company has not engaged in any significant poverty alleviation work during the reporting period and has no subsequent plans[89].