Financial Performance - The company's operating revenue for the first half of 2022 was ¥600,088,825.02, representing a 13.31% increase compared to ¥529,584,837.92 in the same period last year[24]. - The net profit attributable to shareholders was ¥29,148,800.38, which is a 25.01% increase from ¥23,316,630.71 in the previous year[24]. - The basic earnings per share increased to ¥0.0653, up 25.10% from ¥0.0522 in the previous year[24]. - The company achieved a revenue of 600.09 million yuan in the first half of 2022, representing a year-on-year growth of 13.31%[40]. - The net profit attributable to shareholders was 29.15 million yuan, an increase of 25.01% compared to the previous year[40]. - The company reported a total profit of CNY 36,018,571.24, which is a 27.2% increase from CNY 28,334,919.23 in the first half of 2021[148]. - The total comprehensive income for the first half of 2022 was CNY 40,249,403.58, significantly higher than CNY 24,860,467.08 in the first half of 2021[145]. - The company reported a net profit margin improvement, with net profit for the first half of 2022 expected to be higher than the previous year, although specific figures were not disclosed[143]. Cash Flow and Liquidity - The net cash flow from operating activities decreased significantly by 75.10%, amounting to ¥34,141,311.70 compared to ¥137,131,424.88 in the same period last year[24]. - The company reported a significant decrease in cash flow from operating activities, indicating potential liquidity challenges[24]. - The company's cash and cash equivalents decreased by 82.46% to ¥27,178,448.11 from ¥154,926,433.93, impacted by various operational cash flow factors[51]. - The total cash inflow from operating activities for the first half of 2022 was CNY 625,980,254.59, an increase from CNY 600,632,755.13 in the same period of 2021, representing a growth of approximately 6.3%[150]. - The net cash flow from operating activities decreased significantly to CNY 34,141,311.70 in the first half of 2022, down from CNY 137,131,424.88 in the first half of 2021, indicating a decline of about 75%[150]. - The cash outflow for purchasing goods and services rose to CNY 353,404,390.80 in the first half of 2022, compared to CNY 236,400,550.55 in the same period of 2021, reflecting an increase of approximately 49.5%[150]. Assets and Liabilities - Total assets at the end of the reporting period were ¥2,545,213,400.35, reflecting an 11.35% increase from ¥2,285,851,972.92 at the end of the previous year[24]. - Current liabilities totaled ¥1,013,056,308.54, an increase of 30.8% from ¥774,136,103.77 in the previous period[138]. - Non-current liabilities increased to ¥65,937,556.16 from ¥63,421,432.88, representing a rise of 3.9%[138]. - The company's total equity as of June 30, 2022, was ¥1,466,219,535.65, up from ¥1,448,294,436.27, showing a growth of 1.2%[138]. - The company's total assets included cash and cash equivalents amounting to ¥1,486,551,047.28, accounting for 58.41% of total assets, a decrease from 63.86% at the end of the previous year[57]. Research and Development - Research and development expenses rose by 13.82% to ¥52,746,194.65, up from ¥46,340,759.41, indicating a continued investment in innovation[51]. - Continuous investment in R&D is crucial for the company to enhance its technological capabilities and develop embedded security products like eSIM and eSE[79]. - The company aims to enhance its technological capabilities through ongoing research and development initiatives[169]. Market Expansion and Strategy - The company plans to continue focusing on the development of new products and technologies to enhance market competitiveness[6]. - The company successfully expanded its overseas business, achieving a growth rate of over 39.4% despite challenging market conditions[42]. - The company plans to expand its market presence by launching new products in the second half of 2022[158]. - The company is exploring potential mergers and acquisitions to enhance its market share and operational capabilities[162]. Shareholder and Equity Information - The company did not distribute cash dividends or bonus shares during the reporting period[7]. - The company plans to utilize the remaining funds for future projects and investments[66]. - The company has committed to distributing profits in cash not less than 30% of the average distributable profits achieved over three years, provided that the company has positive undistributed profits and meets normal operational funding needs[92]. - The total number of shares is 446,486,084, with 1,393,397 shares subject to limited sale conditions after recent changes[117]. - The largest shareholder, China Electronics Technology Group Corporation, holds 29.38% of the shares, totaling 131,172,253[122]. Risk Management - The company faces risks from intense competition in the smart card industry, leading to declining product gross margins and limited business expansion[77]. - The ongoing global pandemic poses risks to the company's supply chain, production, and market demand, necessitating proactive measures to minimize adverse impacts[80]. - The company is actively establishing long-term stable relationships with key suppliers to mitigate supply chain risks caused by chip shortages and rising raw material prices[78]. Compliance and Governance - The semi-annual financial report has not been audited[96]. - The company has not engaged in any significant related party transactions during the reporting period[99]. - The company has not made any non-operating fund occupation by controlling shareholders or related parties during the reporting period[94]. - The company emphasizes compliance with the Shenzhen Stock Exchange's regulations regarding the use of raised funds and project investments[68].

Financial Performance - The company's revenue for Q1 2022 was ¥272,802,431.22, representing a 12.00% increase compared to ¥243,569,752.97 in the same period last year[4] - Net profit attributable to shareholders for Q1 2022 was ¥8,440,714.08, a 25.12% increase from ¥6,746,097.46 year-on-year[4] - The basic earnings per share for Q1 2022 was ¥0.0189, up 25.17% from ¥0.0151 in the previous year[4] - Total operating revenue for Q1 2022 was CNY 272,802,431.22, an increase from CNY 243,569,752.97 in the previous period[21] - The net profit for the first quarter of 2022 was CNY 8,945,333.52, an increase of 18.2% compared to CNY 7,565,011.31 in the same period last year[22] - The total comprehensive income for the first quarter was CNY 7,660,813.05, a decrease from CNY 8,099,551.98 in the previous year[23] - Basic and diluted earnings per share were both CNY 0.0189, up from CNY 0.0151 in the same period last year[23] Assets and Liabilities - The total assets at the end of Q1 2022 were ¥2,347,759,495.53, an increase of 2.71% from ¥2,285,851,972.92 at the end of the previous year[4] - Cash and cash equivalents at the end of Q1 2022 were CNY 1,434,109,454.92, a decrease from CNY 1,459,810,778.91 at the beginning of the year[17] - Total assets as of March 31, 2022, were CNY 2,347,759,495.53, compared to CNY 2,285,851,972.92 at the beginning of the year[19] - Total liabilities increased to CNY 891,804,246.20 from CNY 837,557,536.65 at the beginning of the year[19] - Shareholders' equity totaled CNY 1,455,955,249.33 as of March 31, 2022, compared to CNY 1,448,294,436.27 at the beginning of the year[19] Cash Flow - The net cash flow from operating activities for Q1 2022 was -¥39,051,587.10, a significant decrease of 201.97% compared to ¥38,297,219.14 in the same period last year[4] - The company reported a cash flow from operating activities of CNY -39,051,587.10, compared to CNY 38,297,219.14 in the same period last year, indicating a significant decline[26] - The investment activities generated a net cash flow of CNY 2,535,288.05, recovering from a negative cash flow of CNY -14,797,190.69 in the previous year[26] - The financing activities resulted in a net cash flow of CNY 12,573,209.45, down from CNY 52,047,164.74 in the same period last year[27] Operational Metrics - Total operating costs for Q1 2022 amounted to CNY 260,913,282.51, up from CNY 231,696,819.88 in the previous period[21] - Accounts receivable increased by 50.86% to ¥215,010,000 at the end of the reporting period, primarily due to business growth[8] - Accounts receivable increased to CNY 215,011,885.96 from CNY 142,524,218.37 at the beginning of the year, reflecting a significant growth in receivables[17] - Inventory at the end of Q1 2022 was CNY 315,927,136.52, slightly up from CNY 305,620,513.03 at the beginning of the year[17] - The company incurred a total of CNY 182,637,622.40 in cash payments for goods and services, which increased from CNY 120,532,116.52 in the previous year[26] Other Income and Expenses - The company reported a 421.05% increase in other income, mainly due to government subsidies received[10] - The company experienced a 30.07% decrease in financial expenses, mainly due to increased exchange losses[10] - Research and development expenses amounted to CNY 21,469,716.27, slightly decreased from CNY 21,941,483.73 in the previous year[22] Future Outlook - The company plans to focus on market expansion and new product development in the upcoming quarters[21]

Financial Performance - The company's operating revenue for 2021 was ¥1,072,485,756.62, representing a 0.92% increase compared to ¥1,062,684,714.42 in 2020[19]. - The net profit attributable to shareholders for 2021 was ¥43,459,040.77, a 22.56% increase from ¥35,460,625.45 in 2020[19]. - The net cash flow from operating activities increased by 62.34% to ¥219,594,580.69 in 2021, up from ¥135,271,852.78 in 2020[19]. - Basic earnings per share for 2021 were ¥0.0973, reflecting a 22.54% increase from ¥0.0794 in 2020[19]. - Total assets at the end of 2021 were ¥2,285,851,972.92, a 9.83% increase from ¥2,081,179,370.91 at the end of 2020[19]. - The net assets attributable to shareholders increased by 2.03% to ¥1,441,796,871.41 at the end of 2021, compared to ¥1,413,101,016.57 at the end of 2020[19]. - The company reported a weighted average return on equity of 3.04% for 2021, an increase of 0.52 percentage points from 2.52% in 2020[19]. - The net profit after deducting non-recurring gains and losses for 2021 was ¥32,842,014.41, an 11.53% increase from ¥29,446,180.62 in 2020[19]. Dividend Distribution - The company plans to distribute a cash dividend of ¥0.50 per 10 shares, based on a total of 446,486,084 shares[4]. - The company reported a cash dividend of 0.50 CNY per 10 shares, totaling 22,324,304.20 CNY, which represents 100% of the total profit distribution[140]. - The distributable profit for the period was 386,216,333.44 CNY, indicating a strong profitability position[140]. - The company did not propose any stock bonuses or capital reserve transfers during the reporting period, reflecting a focus on cash dividends[140]. - The company has committed to distributing at least 10% of the current year's distributable profits in cash[159]. Business Operations and Strategy - The company has not made any changes to its main business since its listing[18]. - The company is positioned in the digital identity and security industry, which is expected to experience growth due to the "14th Five-Year Plan" promoting digital development[30]. - The company has a competitive advantage in the smart card market, focusing on digital identity security products and solutions, and plans to expand into the IoT security field[31]. - The company anticipates significant growth in the 5G-SIM card market, driven by advancements in cloud services and IoT technologies[37]. - The company plans to focus on digital security innovation and upgrade its product offerings in response to the rapid development of the digital economy[44]. - The company aims to leverage its state-owned enterprise platform advantages to drive high-quality development in the future[44]. Research and Development - The company obtained 29 authorized patents during the reporting period, enhancing its innovation capabilities[42]. - The company's research and development expenses totaled ¥102.70 million, a slight increase of 0.15% compared to the previous year[60]. - R&D investment amounted to ¥102,704,544.98 in 2021, a slight increase of 0.15% compared to ¥102,555,066.69 in 2020, representing 9.58% of operating revenue[65]. - The company is investing in R&D to accelerate the development of IoT embedded security products like eSIM and eSE[91]. - Research and development investments increased by 30%, totaling 150 million in 2021, focusing on innovative technologies[116]. Market Performance - International business revenue reached CNY 270.52 million, up 21.43% compared to the previous year[52]. - The digital security and platform business saw a revenue increase of 42.77%, totaling CNY 91.83 million[52]. - Domestic sales accounted for 74.78% of total revenue, while international sales made up 25.22%[52]. - The smart card product line generated CNY 963.75 million, accounting for 89.86% of total revenue, although it experienced a decline of 2.23% year-on-year[52]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by 2023[116]. Financial Management - The company has independent financial management, with a separate accounting system and bank accounts, ensuring no shared accounts with the controlling shareholder[107]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 509.95 million[127]. - The company strictly adheres to its remuneration decision-making procedures and pays salaries on time[124]. - The company has established a clear framework for the remuneration of its directors and senior management based on their roles and performance[125]. - The company has established a multi-level compensation and benefits system to attract and retain valuable talent, aligning with market standards[138]. Governance and Compliance - The company maintains complete independence from its controlling shareholder in terms of business, personnel, assets, institutions, and finance[101]. - The board of directors consists of nine members, including three independent directors, representing one-third of the board, ensuring compliance with legal and regulatory requirements[100]. - The company has established a transparent performance evaluation and incentive mechanism for directors, supervisors, and senior management, ensuring compliance with relevant laws and regulations[99]. - The internal control system was deemed effective, with no significant deficiencies reported in financial or non-financial controls[146]. - The company aims to continuously improve its internal control system and overall management level in the future[147]. Social Responsibility - The company actively participates in social welfare activities, balancing the interests of shareholders, employees, and society[100]. - The company purchased agricultural specialty products worth CNY 125,300 from poverty alleviation points in Lianping County, Guangdong Province, contributing to poverty alleviation efforts[152]. - The company donated a total of CNY 60,000 to the Zhuhai Poverty Alleviation Fund and the Internet Information Office for targeted poverty alleviation[152]. - The company plans to continue implementing various forms of targeted poverty alleviation, including consumption-based assistance, to ensure effective support[152]. Legal and Regulatory Matters - The company faced a total of 184.19 million yuan in a sales contract dispute, which has been resolved with the execution of the arbitration award[167]. - The company successfully reached a mediation agreement in a dispute with Tianjin Tongka Intelligent Network Technology Co., Ltd., resulting in a recovery of 46.49 million yuan[168]. - The company has not experienced any penalties or rectifications during the reporting period[169]. - There were no significant related party transactions during the reporting period[170]. - The company has maintained a clean record regarding its integrity and that of its controlling shareholders[170].

2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声明：保证季度报告中 财务信息的真实、准确、完整。 东信和平科技股份有限公司 2021 年第三季度报告 证券代码：002017 证券简称：东信和平 公告编号：2021-39 东信和平科技股份有限公司 2021 年第三季度报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、误导性 陈述或重大遗漏。 重要内容提示: 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、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。 3.第三季度报告是否经过审计 □ 是 √ 否 一、主要财务数据 (一)主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 本报告期比上年同期增 | 年初至报告期末 | 年初至报告期末比上年 | | --- | --- | --- | --- | --- | | | | 减 | | 同期增减 | | 营业收入（元） | 212,599,116.92 | -17.53% | 742,183,954.84 | 9.09% ...

Financial Performance - The company's operating revenue for the first half of 2021 was ¥529,584,837.92, representing a 25.33% increase compared to ¥422,545,446.17 in the same period last year[21]. - The net profit attributable to shareholders was ¥23,316,630.71, which is an increase of 108.81% from ¥11,166,257.92 in the previous year[21]. - The net cash flow from operating activities reached ¥137,131,424.88, a significant improvement of 313.09% compared to a negative cash flow of -¥64,354,440.41 in the same period last year[21]. - Basic earnings per share increased to ¥0.0522, up 108.80% from ¥0.0250 in the previous year[21]. - Total assets at the end of the reporting period were ¥2,249,431,739.24, an increase of 8.08% from ¥2,081,179,370.91 at the end of the previous year[21]. - The net assets attributable to shareholders were ¥1,422,938,460.97, reflecting a slight increase of 0.70% from ¥1,413,101,016.57 at the end of the previous year[21]. - The overall gross margin for the first half of 2021 was 25.64%, an increase of 0.38% year-on-year[39]. - The gross profit margin for the manufacturing sector improved to 26.99%, up from 24.42% in the previous year, indicating a positive trend in profitability[51]. - The company reported a total comprehensive income of CNY 24,860,467.08 for the first half of 2021, compared to CNY 12,020,201.15 in the same period of 2020, marking a 106.9% increase[144]. Investment and R&D - Research and development investment reached 46.34 million yuan, up by 7.64% compared to the previous year[37]. - Research and development expenses for the first half of 2021 totaled CNY 46,340,759.41, a rise of 7.9% from CNY 43,052,864.13 in the previous year[141]. - The company has applied for 18 patents during the reporting period, including 8 invention patents[41]. - The company is investing in the development of IoT embedded security products like eSIM and eSE to strengthen its market position[69]. Market and Sales - International business sales revenue grew by 45.35% year-on-year, amounting to 139 million yuan[39]. - Foreign sales revenue grew by 45.35% to ¥139,612,784.02, driven by effective adjustments in shipping strategies despite adverse pandemic impacts[52]. - The company's smart card business has shown steady growth, particularly in financial IC cards and social security cards[38]. - The company plans to accelerate the rollout of SE security chip products across multiple application fields in the second half of the year[39]. Cash Flow and Liquidity - The company's cash and cash equivalents increased by 584.03% to ¥154,926,433.93, highlighting strong liquidity management[48]. - Cash flow from operating activities saw a significant increase of 313.09%, amounting to ¥137,131,424.88, primarily due to improved collection of receivables[48]. - The cash flow from investment activities showed a significant negative change of 762.29%, with a net outflow of ¥20,360,212.55 due to increased payments for smart manufacturing equipment[48]. - The total cash inflow from financing activities was ¥52,145,600.00, while the cash outflow was ¥13,644,138.08, resulting in a net cash flow of ¥38,501,461.92[155]. Risks and Challenges - The company faces risks from intensified competition in the smart card market, which may limit the expansion of its business scale[68]. - Currency exchange rate fluctuations pose a risk to the company's import costs and overseas revenue, prompting the implementation of hedging strategies[71]. - The company emphasizes the importance of risk awareness regarding forward-looking statements made in the report[5]. Corporate Governance and Compliance - The company has committed to avoid direct or indirect competition with its controlling shareholder, China Putian, and its controlled entities[85]. - There were no significant lawsuits or arbitration matters reported during the period[92]. - The semi-annual financial report has not been audited[90]. - The company has not faced any penalties or corrective actions during the reporting period[94]. Shareholder Information - The total number of shares is 446,486,084, with 99.69% being unrestricted shares[115]. - The largest shareholder, Putian Oriental Communication Group Co., Ltd., holds 29.38% of the shares, totaling 131,172,253 shares[122]. - The company did not conduct any repurchase transactions among the top 10 shareholders during the reporting period[122]. - The total number of ordinary shareholders at the end of the reporting period is 59,938[121]. Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to enhance its competitive edge[158]. - The company aims to improve its financial performance by optimizing its operational efficiency and exploring potential mergers and acquisitions[158]. - The company plans to continue its market expansion and product development strategies in the upcoming quarters[159].

Financial Performance - The company's revenue for Q1 2021 was ¥243,569,752.97, representing a 34.68% increase compared to ¥180,848,970.97 in the same period last year[7] - Net profit attributable to shareholders was ¥6,746,097.46, up 42.65% from ¥4,728,964.67 year-on-year[7] - The net profit after deducting non-recurring gains and losses reached ¥7,310,214.55, a significant increase of 69.98% compared to ¥4,300,730.03 in the previous year[7] - Basic earnings per share increased to ¥0.0151, reflecting a 42.45% rise from ¥0.0106 in the previous year[7] - Total profit, net profit, and net profit attributable to shareholders increased by 49.34%, 69.54%, and 42.65% year-on-year, respectively, reflecting improved profitability as operations normalized[17] - The company reported a total comprehensive income of CNY 8,099,551.98, compared to CNY 1,671,092.82 in the prior period[46] Cash Flow - The net cash flow from operating activities was ¥38,297,219.14, a turnaround from a negative cash flow of -¥74,546,903.49 in the same period last year, marking a 151.37% improvement[7] - The net cash flow from operating activities increased by 112.84 million yuan year-on-year, mainly due to increased collections and decreased procurement payments[19] - The cash flow from operating activities generated a net amount of CNY 38,297,219.14, recovering from a negative cash flow of CNY -74,546,903.49 in the previous year[53] - The cash outflow for operating activities was CNY 242,584,005.96, slightly lower than CNY 261,966,616.87 in the previous year[53] - The cash flow from investing activities resulted in a net outflow of CNY -14,797,190.69, compared to a net inflow of CNY 2,285,959.75 in the previous year[53] - The cash flow from financing activities generated a net inflow of CNY 52,047,164.74, up from CNY 20,000,000.00 in the previous year[54] Assets and Liabilities - Total assets at the end of the reporting period were ¥2,204,537,968.16, a 5.93% increase from ¥2,081,179,370.91 at the end of the previous year[7] - The company's current assets totaled CNY 1,884,991,053.98 as of March 31, 2021, compared to CNY 1,764,187,346.11 at the end of 2020, indicating an increase of about 6.8%[35] - The total liabilities increased to CNY 778,407,449.34 from CNY 663,148,404.06, reflecting a rise of approximately 17.4%[37] - The company's total equity as of March 31, 2021, was CNY 1,426,130,518.82, slightly up from CNY 1,418,030,966.85, reflecting a growth of approximately 0.6%[38] Operational Highlights - The company's operating revenue increased by 34.68% year-on-year, primarily due to the effective control of the domestic COVID-19 pandemic and the restoration of normal operations[17] - Operating costs rose by 36.67% year-on-year, attributed to the same reasons as the revenue increase[17] - The company reported a 96.25% year-on-year decline in other income, mainly due to a decrease in government subsidies related to revenue[17] - The company experienced a 79.01% year-on-year decline in fair value changes, primarily due to foreign exchange fluctuations affecting forward foreign exchange contracts[17] - Credit impairment losses decreased by 33.56% year-on-year, attributed to improved collection of accounts receivable as the pandemic's impact lessened[17] Investments and Projects - The company plans to complete the research and development project based on NB-IoT technology with a total investment of 1,750 million yuan, of which 931.7 million yuan has been invested to date[25] - The smart manufacturing upgrade project has seen 1,109.37 million yuan invested, representing 55.75% of the total planned investment of 8,967.20 million yuan[25] Compliance and Reporting - The first quarter report for 2021 was not audited, which may affect the reliability of the financial data presented[59] - The company did not apply the new leasing standards for the first quarter of 2021, indicating a potential area for future compliance and reporting adjustments[58]

Financial Performance - The company's operating revenue for 2020 was ¥1,062,684,714.42, a decrease of 9.84% compared to ¥1,178,720,034.45 in 2019[16] - The net profit attributable to shareholders for 2020 was ¥35,460,625.45, down 10.26% from ¥39,513,573.64 in 2019[16] - The net cash flow from operating activities decreased by 25.08% to ¥135,271,852.78 in 2020 from ¥180,543,079.93 in 2019[16] - Basic earnings per share for 2020 were ¥0.079, a decline of 15.96% compared to ¥0.094 in 2019[16] - The total assets at the end of 2020 were ¥2,081,179,370.91, a slight decrease of 0.79% from ¥2,097,784,053.98 at the end of 2019[17] - The net assets attributable to shareholders increased by 1.29% to ¥1,413,101,016.57 at the end of 2020 from ¥1,395,128,686.84 at the end of 2019[17] - The weighted average return on equity for 2020 was 2.52%, down from 3.01% in 2019, a decrease of 0.49 percentage points[16] - The net profit after deducting non-recurring gains and losses was ¥29,446,180.62, a decrease of 11.65% from ¥33,327,515.54 in 2019[16] Revenue Breakdown - The smart card business contributed CNY 1,021.91 million, accounting for 96.16% of total revenue, with a year-on-year decline of 10.65%[49] - Domestic sales were CNY 839.91 million, representing 79.04% of total revenue, with a decrease of 5.57% compared to the previous year[49] - International sales fell to CNY 222.78 million, a decline of 22.98% year-on-year, accounting for 20.96% of total revenue[49] - The digital identity and security business generated CNY 6.79 million in revenue, marking a new product line for the company[49] Cash Dividends - The company plans to distribute a cash dividend of ¥0.3 per 10 shares, based on a total of 446,486,084 shares[4] - The cash dividend amount for 2020 is CNY 13,394,582.52, representing 37.77% of the net profit attributable to ordinary shareholders[100] - The cash dividend per 10 shares is CNY 0.3 (including tax), based on a total share capital of 446,486,084 shares[101] - The total distributable profit for the period is CNY 365,256,896.34, with cash dividends accounting for 100% of the profit distribution[101] - The company has a cash dividend policy in place, distributing 0.3 yuan per 10 shares for the past three years, ensuring a consistent return to shareholders[94][97] Investments and Projects - The company has completed the automation upgrade project for intelligent manufacturing, which is expected to improve production efficiency and product quality significantly[32] - The project based on NB-IoT technology for secure access solutions has utilized RMB 9.32 million out of the planned RMB 17.50 million, achieving 53.24% of the investment progress[75] - The medical fund consumption terminal security management platform project has utilized RMB 7.46 million out of the planned RMB 288.12 million, achieving only 2.59% of the investment progress[75] - The production intelligence upgrade project has utilized RMB 38.90 million out of the planned RMB 89.67 million, achieving 43.38% of the investment progress[75] Market Position and Strategy - The company aims to enhance its market position by focusing on differentiated value in traditional business and leveraging opportunities in the Internet of Things (IoT) sector[84] - The company plans to deepen its market penetration in smart cards, particularly in customized cards and high-end communication cards, while expanding its digital identity and security business[85] - The company is focused on developing embedded security products like eSIM and eSE to capture the growing IoT market, ensuring sustainable business growth[88] - The company is considering strategic acquisitions to enhance its technology portfolio, with a budget of 500 million RMB allocated for potential mergers[182] Subsidiaries and Joint Ventures - The subsidiary Eastcompeace (Singapore) Co., Ltd. reported a revenue of RMB 64.78 million and a net profit of RMB 4.26 million[82] - The subsidiary Eastcompeace (India) Co., Ltd. reported a revenue of RMB 37.23 million and a net profit of RMB 1.52 million[82] - The subsidiary Eastcompeace (Bangladesh) Co., Ltd. reported a revenue of RMB 8.27 million but incurred a net loss of RMB 2.51 million[82] - The company has increased its investment in its Russian subsidiary by 81.08 million RUB, maintaining an 81.08% ownership stake[137] Governance and Management - The company has maintained a robust governance structure with independent directors overseeing financial and operational integrity[173] - The board of directors consists of nine members, including three independent directors, which complies with legal and regulatory requirements[197] - The company has implemented a performance evaluation and incentive mechanism for directors and senior management to ensure transparency and fairness[198] - The company has experienced a turnover in its executive team, which may impact its strategic direction and operational continuity[168] Social Responsibility - The company actively supports social welfare and community development initiatives[130] - The company donated a total of 140,000 RMB to support poverty alleviation efforts in Nujiang Prefecture, Yunnan Province, as part of the "Ten Thousand Enterprises Helping Ten Thousand Villages" initiative[131] - The company contributed 60,000 RMB to the Zhuhai Poverty Alleviation Foundation and the Zhuhai Red Cross for rural revitalization efforts[131] - The company signed a support agreement with Dongfeng Village in Doumen District, donating 50,000 RMB to assist in the village's development[131] Employee and Workforce - The total number of employees in the company is 1,631, with 1,453 in the parent company and 178 in major subsidiaries[190] - The professional composition includes 837 production personnel, 104 sales personnel, 519 technical personnel, 27 financial personnel, and 144 administrative personnel[190] - The educational background of employees shows 50 with postgraduate degrees, 478 with bachelor's degrees, 204 with associate degrees, and 899 with high school or below[191] - The company emphasizes employee training, offering various programs including onboarding, skills enhancement, and management training[193]

Financial Performance - Operating revenue for the reporting period was ¥257,797,910.29, a decrease of 3.78% year-on-year, while revenue for the year-to-date was ¥680,343,356.46, down 17.00% compared to the same period last year[7]. - Net profit attributable to shareholders was ¥12,715,245.75, representing a year-on-year increase of 27.30, while year-to-date net profit was ¥23,881,503.67, down 19.56%[7]. - Basic earnings per share for the reporting period were ¥0.0285, up 27.23% year-on-year[7]. - Total operating revenue for Q3 2020 was CNY 257,797,910.29, a decrease from CNY 267,929,279.64 in the previous period[42]. - Net profit for Q3 2020 was CNY 13,861,994.80, compared to CNY 10,234,505.40 in the same period last year, representing a year-over-year increase of approximately 35.5%[44]. - The company's operating revenue for the current period is CNY 643,580,906.40, a decrease of 15.03% compared to CNY 757,240,762.81 in the previous period[55]. - The net profit for the current period is CNY 20,512,243.37, down 21.06% from CNY 26,220,015.31 in the previous period[57]. - Basic earnings per share for the current period is CNY 0.0459, compared to CNY 0.0618 in the previous period, reflecting a decrease of 25.73%[57]. - The total comprehensive income for the quarter was ¥13,037,422.14, compared to ¥11,302,400.56 in the previous period, marking an increase of about 15%[48]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥2,143,346,485.12, an increase of 2.17% compared to the end of the previous year[7]. - The total assets as of September 30, 2020, amounted to CNY 2,114,748,180.11, an increase from CNY 2,063,506,185.83 at the end of 2019[40]. - The company's total liabilities increased to CNY 732,568,784.48 from CNY 688,444,451.05[40]. - The company reported a total current liabilities of RMB 665,726,775.31, compared to RMB 630,118,150.14 at the end of 2019[36]. - The total liabilities of the company were RMB 732,308,705.23, an increase from RMB 698,409,314.86 at the end of 2019[36]. - The company's total non-current assets were valued at ¥363,519,988.77[72]. - The company’s total equity attributable to shareholders was ¥1,395,128,686.84[72]. Cash Flow - The net cash flow from operating activities was ¥45,984,728.62, an increase of 10.87% compared to the same period last year[7]. - The net cash flow from financing activities decreased by 344.08 million yuan year-on-year, primarily due to the previous year's fundraising of 395.40 million yuan from a rights issue[16]. - The net cash flow from operating activities was -¥19,062,730.23, an improvement from -¥71,357,964.62 in the previous period, indicating a reduction in cash outflow[62]. - Total cash and cash equivalents at the end of the period reached ¥1,134,296,813.65, up from ¥932,659,074.16 at the end of the previous period[61]. - Cash inflow from financing activities totaled ¥50,000,000.00, while cash outflow was ¥13,920,949.47, resulting in a net cash inflow of ¥36,079,050.53[64]. Shareholder Information - The total number of shareholders at the end of the reporting period was 58,963[11]. - The largest shareholder, Putian Oriental Communication Group Co., Ltd., holds 29.38% of the shares[11]. - The company did not engage in any repurchase transactions among the top ten shareholders during the reporting period[12]. Investment and Expenses - Research and development expenses for Q3 2020 were CNY 22,231,939.46, down from CNY 26,720,281.48 in the previous year[43]. - The company reported a financial expense of -¥1,264,819.08, a significant improvement from -¥6,793,545.95, indicating better financial management[47]. - The company has invested RMB 4,779.15 million of the raised funds, with a remaining balance of RMB 35,556.20 million, including RMB 20,000 million temporarily allocated for working capital[24]. - The company incurred cash payments for purchasing goods and services amounting to ¥538,766,292.18, a decrease from ¥585,855,273.09 in the previous period[62]. Future Outlook - Future outlook includes continued emphasis on cost control and potential market expansion strategies, although specific plans were not detailed in the provided content[50].

Financial Performance - The company's operating revenue for the first half of 2020 was ¥422,545,446.17, a decrease of 23.41% compared to ¥551,728,524.23 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was ¥11,166,257.92, down 43.32% from ¥19,700,408.09 in the previous year[18]. - The net profit after deducting non-recurring gains and losses was ¥10,996,685.21, a decline of 48.53% compared to ¥21,366,837.84 in the same period last year[18]. - Basic earnings per share decreased by 47.59% to ¥0.0250 from ¥0.0477 in the same period last year[18]. - The weighted average return on net assets was 0.80%, down from 1.58% in the previous year[18]. - The company achieved operating revenue of 422.55 million yuan, a year-on-year decrease of 23.41%[38]. - The net profit attributable to the listed company was 11.17 million yuan, down 43.32% year-on-year[38]. - The total comprehensive income for the first half of 2020 was approximately 13.28 million yuan, reflecting a decrease of 118.91 million yuan compared to the previous period[164]. Cash Flow and Investments - The net cash flow from operating activities was -¥64,354,440.41, an improvement of 41.59% from -¥110,403,892.31 in the previous year[18]. - The net cash flow from investing activities significantly decreased by 84.45% to -¥2,361,184.23 from -¥15,185,973.95 year-on-year[45]. - The net cash flow from operating activities improved by 41.59%, reaching -¥64,354,440.41 compared to -¥110,403,892.31 last year[45]. - The net cash flow from financing activities was 36,446,022.75 CNY, down from 380,380,223.73 CNY in the previous period, reflecting a decrease in cash inflow from financing[157]. - The company reported a significant reduction in cash outflow from investing activities, which decreased by approximately 83% compared to the previous period[157]. Assets and Liabilities - Total assets at the end of the reporting period were ¥2,135,801,860.91, an increase of 1.81% from ¥2,097,784,053.98 at the end of the previous year[18]. - The company's total liabilities as of June 30, 2020, were CNY 737,801,503.16, compared to CNY 698,409,314.86 at the end of 2019, reflecting an increase in liabilities[138]. - Current assets totaled CNY 1,802,538,132.11 as of June 30, 2020, up from CNY 1,750,086,327.35 at the end of 2019[137]. - The company's total equity as of June 30, 2020, was CNY 1,398,000,357.75, slightly down from CNY 1,399,374,739.12 at the end of 2019[139]. Research and Development - Research and development expenses were ¥42,272,534.68, down 7.98% from ¥45,938,844.72 in the previous year[45]. - The company plans to enhance its technical capabilities through continuous R&D investment, focusing on eSIM and eSE embedded security products[73]. - The company added 13 new patent authorizations during the reporting period, bringing the total to 237 authorized patents[31]. Market and Business Development - The company successfully won three new bank smart card projects during the reporting period, enhancing its market presence in the financial payment sector[38]. - The international business of the Singapore subsidiary turned profitable, effectively mitigating the impact of the pandemic on international operations[38]. - The company focused on digital identity and security business development, achieving significant market breakthroughs in various sectors including IoT and automotive[39]. Corporate Governance and Shareholder Matters - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company held two temporary shareholder meetings and one annual shareholder meeting during the reporting period, with investor participation rates of 44.47%, 44.63%, and 44.55% respectively[78]. - The company has made commitments regarding avoiding competition with its controlling shareholder, China Putian Information Industry Group, and has been fulfilling these commitments normally[80]. Compliance and Legal Matters - The half-year financial report has not been audited[84]. - There were no significant litigation or arbitration matters during the reporting period[87]. - The company did not experience any penalties or rectification situations during the reporting period[88]. Social Responsibility - The company made a donation of 140,000 RMB to support poverty alleviation efforts in Yunnan Province[103]. - The company also contributed 30,000 RMB to the "Guangdong Poverty Alleviation Day" initiative[103]. Miscellaneous - The company operates primarily in the smart card sector, focusing on communication, banking, and public utility applications[177]. - The company has assessed its ability to continue as a going concern for the next 12 months, indicating sufficient resources for ongoing operations[183]. - The company adheres to the Chinese Accounting Standards, ensuring that its financial statements reflect a true and complete picture of its financial status as of June 30, 2020[184].

Financial Performance - The company's operating revenue for Q1 2020 was ¥180,848,970.97, a decrease of 28.65% compared to ¥253,459,087.41 in the same period last year[8]. - The net profit attributable to shareholders was ¥4,728,964.67, down 42.61% from ¥8,239,785.01 year-on-year[8]. - The net profit after deducting non-recurring gains and losses was ¥4,300,730.03, reflecting a decline of 52.81% compared to ¥9,113,507.13 in the previous year[8]. - Basic earnings per share decreased by 42.70% to ¥0.0106 from ¥0.0185 year-on-year[8]. - The company's net profit for the reporting period was positive, contributing to the company's commitment to distribute cash dividends, ensuring at least 30% of the average distributable profit over the next three years[24]. - The company's net profit for the current period is ¥5,454,249.78, compared to ¥9,252,968.10 in the previous period, representing a decrease of approximately 41.5%[49]. - The total comprehensive income for the current period is ¥5,454,249.78, down from ¥9,252,968.10, reflecting the overall decline in profitability[49]. Cash Flow and Liquidity - The net cash flow from operating activities was -¥74,546,903.49, an improvement of 34.89% from -¥114,496,137.35 in the same period last year[8]. - The net cash flow from operating activities of the company was -¥74,546,903.49, an improvement from -¥114,496,137.35 in the previous period[52]. - The net increase in cash and cash equivalents decreased by 32.32 million yuan year-on-year, primarily due to the combined effects of the above three items[17]. - Cash and cash equivalents at the end of the period stand at ¥1,085,927,150.44, down from ¥911,417,371.61 in the previous period[53]. - The company received 20,000,000.00 CNY from financing activities, resulting in a net cash flow of 393,992,379.24 CNY from financing activities[56]. Assets and Liabilities - Total assets at the end of the reporting period were ¥2,158,665,119.67, an increase of 2.90% from ¥2,097,784,053.98 at the end of the previous year[8]. - The total liabilities of the company were CNY 757,619,287.73, up from CNY 698,409,314.86, which is an increase of approximately 8.5%[36][37]. - The company's total assets increased to CNY 2,138,226,068.87 from CNY 2,063,506,185.83 at the end of the previous quarter[40]. - The company's total equity amounted to 1,399,374,739.12 CNY as of January 1, 2020[59]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 68,814[11]. - The basic and diluted earnings per share are both ¥0.0122, down from ¥0.0207 in the previous period, indicating reduced shareholder returns[49]. Operational Metrics - The company's current assets totaled CNY 1,818,906,906.15, compared to CNY 1,750,086,327.35 at the end of 2019, indicating an increase of about 3.9%[34][36]. - Accounts receivable at the end of the reporting period amounted to 181.21 million yuan, an increase of 48.62% compared to the beginning of the year, primarily due to the seasonal collection characteristics of accounts receivable concentrated at year-end[16]. - Inventory levels increased to CNY 487,154,451.25 from CNY 423,972,346.97, representing a growth of about 14.9%[34]. - The company's retained earnings increased to CNY 360,010,621.85 from CNY 355,281,657.18, reflecting a growth of about 1.0%[37]. Expenses and Costs - Total operating costs for Q1 2020 were CNY 176,746,706.03, down from CNY 238,483,897.27 in the previous period[43]. - The company reported a decrease in research and development expenses to CNY 23,933,491.32 from CNY 25,293,751.87[43]. - The company experienced a significant increase in financial costs, with interest income of ¥4,634,246.85 compared to interest expenses of ¥355,780.64 in the previous period[47]. - The company experienced a 48.29% year-on-year decrease in business tax and additional fees, primarily due to a decline in operating revenue[16]. Accounting Changes - The company implemented new revenue and leasing standards starting January 1, 2020, adjusting the presentation of contract liabilities[61].