Financial Performance - The company's operating revenue for Q3 2022 was ¥2,735,848,257.13, representing a year-on-year increase of 21.04%[4] - The net profit attributable to shareholders for Q3 2022 was ¥92,218,629.29, a decrease of 59.44% compared to the same period last year[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥100,152,754.36, down 55.09% year-on-year[4] - The company reported a net profit of approximately ¥4.50 billion, compared to ¥4.18 billion in the previous year, reflecting a growth of about 7.7%[15] - Net profit for the current period was ¥468,568,045.93, down 29.66% from ¥665,698,282.60 in the previous period[17] - The company reported a total comprehensive income of ¥472,665,087.18, down from ¥665,012,392.48 in the previous period, reflecting a decrease of 29.05%[18] Assets and Liabilities - The total assets at the end of the reporting period were ¥22,217,252,232.72, an increase of 5.44% from the end of the previous year[4] - As of September 30, 2022, the total assets of Donghua Software reached approximately ¥22.22 billion, an increase from ¥21.07 billion at the end of the previous year, representing a growth of about 5.5%[13][15] - The company's current assets totaled approximately ¥19.10 billion, up from ¥18.07 billion, indicating a year-over-year increase of about 5.7%[14][15] - Total liabilities increased to approximately ¥10.77 billion from ¥9.96 billion, representing a growth of about 8.2%[15] - The company's equity attributable to shareholders reached approximately ¥11.26 billion, an increase from ¥10.92 billion, reflecting a growth of about 3.1%[15] Cash Flow - Cash flow from operating activities showed a net outflow of ¥1,010,619,734.21, a decrease of 0.98% year-on-year[4] - Cash flow from operating activities showed a net outflow of ¥1,010,619,734.21, slightly worse than the outflow of ¥1,000,839,821.37 in the previous period[19] - Total cash inflow from operating activities was ¥8,692,094,027.58, compared to ¥7,197,372,456.21 in the previous period, indicating a growth of 20.77%[19] - Total cash outflow from operating activities increased to ¥9,702,713,761.79, up from ¥8,198,212,277.58 in the previous period, marking a rise of 18.36%[19] - The cash and cash equivalents decreased to approximately ¥1.67 billion from ¥2.66 billion, a decline of about 37.3%[13] - The cash and cash equivalents at the end of the period amounted to 1,601,189,312.42, a decrease from 1,621,105,846.39 in the previous year, showing a decline of about 1.3%[20] Investments and Financing - The company received government subsidies amounting to ¥3,147,159.89 during the reporting period, with a total of ¥11,336,820.16 received year-to-date[6] - The company’s investment income increased by 37.93% year-on-year, mainly due to higher equity method investment returns[8] - The net cash flow from investment activities was -190,909,311.12, compared to -159,388,395.26 in the previous year, indicating a decline of approximately 19.8%[20] - Cash inflow from financing activities totaled 3,579,672,631.24, slightly up from 3,527,635,022.67, representing an increase of about 1.5% year-over-year[20] - The net cash flow from financing activities was 210,187,919.91, down from 354,125,393.90, reflecting a decrease of approximately 40.6%[20] - Cash received from borrowings was 3,548,572,631.24, up from 2,888,917,322.67, marking an increase of about 22.9%[20] Operational Costs and Expenses - Total operating costs amounted to ¥6,919,617,500.68, up 12.59% from ¥6,144,833,420.57 in the previous period[16] - Research and development expenses increased to ¥767,475,503.16, a rise of 11.25% compared to ¥690,550,060.25 in the previous period[17] - Other income for the current period was ¥75,042,169.98, an increase from ¥70,929,013.30 in the previous period[17] Changes in Cash and Equivalents - The company reported a 37.22% decrease in cash and cash equivalents compared to the end of the previous year, primarily due to loan repayments and project payments[8] - The cash outflow for debt repayment was 3,082,519,098.84, an increase from 2,611,478,210.85, representing a rise of about 18.0%[20] - The impact of exchange rate changes on cash and cash equivalents was positive at 1,805,214.59, contrasting with a negative impact of -139,132.44 in the previous year[20]

Financial Performance - The company's operating revenue for the first half of 2022 was ¥4,584,508,958.01, representing a 1.48% increase compared to ¥4,517,781,566.07 in the same period last year[11]. - The net profit attributable to shareholders was ¥391,414,550.64, a decrease of 13.64% from ¥453,254,645.58 in the previous year[11]. - The basic earnings per share decreased by 16.08% to ¥0.1221 from ¥0.1455 in the same period last year[11]. - Total assets at the end of the reporting period were ¥21,798,272,653.13, reflecting a 3.45% increase from ¥21,071,032,920.17 at the end of the previous year[11]. - The net assets attributable to shareholders increased by 3.69% to ¥11,322,437,317.60 from ¥10,919,267,773.28 at the end of the previous year[11]. - The company reported a net cash flow from operating activities of -¥1,295,048,593.17, which is a 7.42% decline compared to -¥1,205,551,777.34 in the same period last year[11]. - The weighted average return on net assets was 3.52%, down from 4.47% in the previous year[11]. - The operating cost increased by 4.40% to ¥3,150,649,233.60 from ¥3,017,814,337.77, resulting in a gross profit margin decrease[59]. - The financial health sector contributed ¥2,814,494,099.17, accounting for 61.39% of total revenue, with a slight increase of 0.56%[60]. - The company reported a significant increase in contract liabilities, which rose to RMB 2,709,424,638.53 from RMB 2,249,643,098.63, representing an increase of approximately 20.38%[122]. Research and Development - The company is focused on developing various software products, including hospital digital information systems and smart health service platforms, to meet diverse customer needs[15]. - The company is focusing on core technology research and development in areas such as 5G, blockchain, big data, artificial intelligence, and cloud computing[22]. - Research and development investment decreased by 11.02% to ¥608,395,291.46 from ¥683,721,670.42[59]. - The company enhanced its R&D investments to optimize its technology platform and explore new applications in the healthcare information sector[30]. - The company plans to enhance its R&D investment and product planning to maintain competitive advantages in the market[77]. Market Expansion and Client Engagement - The company has established service contracts with over 26 top-tier hospitals under a subscription model, indicating strong growth in its smart hospital product sales[23]. - The company has established a comprehensive customer service response mechanism, enhancing communication and cooperation with clients[22]. - The company has successfully bid for over 20 smart medical insurance projects, including systems for various hospitals and healthcare institutions[29]. - The internet hospital services have significantly increased in demand due to the pandemic, providing a vital channel for patient consultations and reducing hospital crowding[30]. - The company has accumulated a stable customer base in sectors such as healthcare, finance, and energy, providing a range of services including consulting and system integration[55]. Financial Technology and Innovations - The company is enhancing its digital financial technology services, focusing on the digital transformation of the financial industry, covering banks, insurance, and other sectors[38]. - The new generation C5 credit system integrates big data and AI technologies, improving operational efficiency and competitiveness in credit products[39]. - The company successfully upgraded its credit management platform to version 3.0, integrating over 100 client experiences, which improved compliance and operational efficiency in credit data management[41]. - In the anti-money laundering sector, the company developed a suspicious transaction screening model, achieving an effectiveness rate exceeding 80% for individual models, compared to the industry average of around 10%[43]. - The company is actively exploring new technologies and regulatory reporting applications in the anti-money laundering field, enhancing its service offerings for financial institutions[42]. Operational Efficiency and Management - The company has acknowledged potential risks in its future operations and has outlined corresponding measures to address these risks[2]. - The company has established effective talent recruitment and training mechanisms to enhance management capabilities and operational efficiency[57]. - The company optimized its internal management structure by deregistering Chongqing Hechuang Donghua Software Co., Ltd. and Anyang Donghua Software Co., Ltd., aiming to reduce management costs and improve operational efficiency[74]. - The company maintains a strict supplier management mechanism in accordance with ISO9001 standards, ensuring product quality and delivery accuracy[18]. - The company has established long-term partnerships with major organizations, enhancing its brand influence and market presence[54]. Social Responsibility and Community Engagement - The company has actively participated in social responsibility initiatives, including a donation of 100,000 RMB to the Beijing Guangcai Public Welfare Foundation for pandemic relief efforts[84]. - The company has established a volunteer team to assist in pandemic prevention efforts in various communities during the COVID-19 outbreak[85]. - The company has contributed to the construction of digital industrial parks to support the development of the digital economy and green economy[84]. - The company emphasizes employee rights protection and has established a labor dispute mediation organization to safeguard employee interests[89]. - The company has a comprehensive employee welfare system, including health check-ups, supplementary medical insurance, and psychological counseling courses[90]. Asset Management and Financial Position - Cash and cash equivalents decreased by 7.32% to ¥1,158,738,728.54, accounting for 5.32% of total assets[64]. - Accounts receivable increased by 4.43% to ¥7,254,457,458.23, representing 33.28% of total assets[64]. - Inventory rose by 2.03% to ¥7,976,685,507.60, making up 36.59% of total assets[64]. - The total liabilities of the company reached RMB 10,276,504,409.74, compared to RMB 9,963,679,224.45 at the beginning of the year, marking an increase of about 3.14%[123]. - The company's equity attributable to shareholders amounted to RMB 11,322,437,317.60, up from RMB 10,919,267,773.28, reflecting a growth of approximately 3.70%[123]. Compliance and Governance - The semi-annual financial report has not been audited, indicating that the figures presented are preliminary and subject to change[120]. - The company has not undergone any changes in its controlling shareholder or actual controller during the reporting period[117]. - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[92]. - The company has no significant litigation or arbitration matters during the reporting period[93]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the financial reports are true and complete[156].

Financial Performance - The company's operating revenue for the first half of 2022 was ¥4,584,508,958.01, representing a 1.48% increase compared to ¥4,517,781,566.07 in the same period last year[21]. - The net profit attributable to shareholders for the first half of 2022 was ¥391,414,550.64, a decrease of 13.64% from ¥453,254,645.58 in the previous year[21]. - The basic earnings per share decreased by 16.08% to ¥0.1221 from ¥0.1455 in the previous year[21]. - The company's total operating costs rose by 4.40% to ¥3,150,649,233.60, impacting overall profitability[78]. - The total comprehensive income for the first half of 2022 was CNY 383,314,547.67, down from CNY 437,702,549.48 in the same period of 2021[190]. - The company reported a net profit margin improvement, with undistributed profits increasing to CNY 4.57 billion from CNY 4.18 billion, a growth of about 9.16%[183]. Cash Flow and Investments - The net cash flow from operating activities was -¥1,295,048,593.17, which is a 7.42% decline compared to -¥1,205,551,777.34 in the same period last year[21]. - The net increase in cash and cash equivalents was -¥1,479,131,091.63, reflecting an 18.61% decrease from -¥1,247,057,476.69 in the same period last year[78]. - The total cash inflow from operating activities for the first half of 2022 was CNY 4,708,703,061.36, an increase of 11.3% compared to CNY 4,228,315,237.78 in the first half of 2021[194]. - The total cash outflow from investment activities was CNY 222,137,257.54, a decrease from CNY 412,093,811.41 in the first half of 2021[197]. Assets and Liabilities - Total assets at the end of the reporting period were ¥21,798,272,653.13, reflecting a 3.45% increase from ¥21,071,032,920.17 at the end of the previous year[21]. - The company's total liabilities reached CNY 10.28 billion, an increase from CNY 9.96 billion, representing a growth of approximately 3.23%[183]. - Cash and cash equivalents decreased to ¥1,158,738,728.54, accounting for 5.32% of total assets, down from 12.64% last year, a decrease of 7.32%[85]. Research and Development - The company plans to increase its R&D investment to enhance product quality and maintain competitive advantages in the market[103]. - Research and development expenses decreased by 11.02% to ¥608,395,291.46, indicating a reduction in investment in this area[78]. - The company is investing heavily in R&D, with a budget allocation of 5,000 million aimed at developing new technologies and enhancing existing products[153]. Market and Sector Focus - The company continues to focus on providing comprehensive industry solutions and information technology services across various sectors including healthcare, finance, and smart cities[27]. - The company is actively expanding its financial technology services, covering various sectors including banking, insurance, and securities, to support the digital transformation of the financial industry[53]. - The company is exploring potential acquisitions to bolster its technology portfolio, with a focus on firms that align with its strategic goals[153]. Client and Project Engagement - In the healthcare sector, over 26 top-tier hospitals signed service contracts with the company using a subscription model[36]. - Donghua Medical has provided information technology services to over 20 makeshift hospitals, ensuring effective pandemic control across various regions[39]. - The company has established a comprehensive customer service response mechanism to maintain good communication and cooperation with clients[35]. Strategic Partnerships and Collaborations - The company emphasizes strategic cooperation with top industry players like Tencent and Huawei to innovate and integrate technologies[76]. - A new strategic partnership has been established, expected to generate an additional 3,460 million in revenue over the next two years[153]. Employee and Corporate Governance - The employee stock ownership plan includes 478 employees holding a total of 26,412,422 shares, representing 0.82% of the company's total equity[113]. - The company has established a labor dispute mediation organization to further protect employee rights and interests[125]. - The company emphasizes talent attraction and development, offering training programs and support for employees pursuing professional certifications[128]. Future Outlook - The company provides a positive outlook for the second half of 2022, projecting a revenue growth of approximately 15% year-over-year[153]. - The future outlook remains positive with a projected revenue growth of 5.9% for the next quarter[200].

Financial Performance - The company's operating revenue for Q1 2022 was ¥2,288,621,406.25, representing a 12.78% increase compared to ¥2,029,336,331.40 in the same period last year[2]. - Net profit attributable to shareholders was ¥119,077,986.32, a 5.32% increase from ¥113,059,035.20 year-on-year[2]. - Total operating revenue for Q1 2022 was CNY 2,288,621,406.25, an increase of 12.7% compared to CNY 2,029,336,331.40 in Q1 2021[11]. - Net profit for Q1 2022 was CNY 107,749,256.47, slightly up from CNY 107,741,480.69 in Q1 2021, indicating a stable performance[12]. - The net profit attributable to shareholders of the parent company was CNY 119,077,986.32, compared to CNY 113,059,035.20 in the same period last year, representing a growth of 5.5%[13]. - Basic and diluted earnings per share for Q1 2022 were both CNY 0.0371, an increase from CNY 0.0363 in Q1 2021[13]. Cash Flow - The net cash flow from operating activities was -¥946,226,887.33, which is a 9.14% decline compared to -¥867,003,630.01 in the previous year[2]. - The cash inflow from operating activities totaled CNY 2,294,163,505.44, an increase from CNY 2,010,774,314.44 in the previous year, representing a growth of approximately 14.1%[15]. - The cash outflow from operating activities was CNY 3,240,390,392.77, compared to CNY 2,877,777,944.45 in the same period last year, indicating an increase of about 12.6%[15]. - The cash inflow from financing activities was CNY 275,305,256.83, a decrease from CNY 440,420,885.21 year-over-year, representing a decline of about 37.4%[16]. - The net cash flow from financing activities was -CNY 628,381,420.03, worsening from -CNY 415,371,156.30 in the previous year[16]. Assets and Liabilities - Total assets at the end of the reporting period were ¥21,020,476,008.47, a decrease of 0.24% from ¥21,071,032,920.17 at the end of the previous year[2]. - Total liabilities as of the end of Q1 2022 were CNY 9,774,397,221.73, a decrease from CNY 9,963,679,224.45 at the end of Q1 2021[11]. - Current liabilities decreased from 9,787,445,056.84 RMB to 9,568,761,627.52 RMB, a reduction of approximately 2.2%[10]. - The company reported a significant increase in contract liabilities from 2,249,643,098.63 RMB to 2,752,363,403.78 RMB, an increase of about 22.3%[10]. Investments and Expenses - Investment income increased by 99.69% year-on-year, attributed to higher investment returns accounted for using the equity method[4]. - Research and development expenses for Q1 2022 amounted to CNY 218,861,589.30, up from CNY 168,614,962.47 in Q1 2021, reflecting a 29.8% increase[12]. - The company reported a significant increase in cash paid to employees, totaling CNY 520,675,012.24, compared to CNY 469,790,635.05 in the previous year, reflecting an increase of approximately 10.8%[15]. Shareholder Information - Total number of common shareholders at the end of the reporting period was 151,024[7]. - The largest shareholder, Beijing Donghua Integrity Computer Technology Development Co., held 19.07% of shares, totaling 611,370,597 shares[7]. - The number of shares held by the top ten shareholders accounted for a significant portion of the total shares, indicating concentrated ownership[7].

Financial Performance - The company's operating revenue for 2021 was ¥10,884,288,643.09, representing an increase of 18.73% compared to ¥9,167,186,699.62 in 2020[12] - The net profit attributable to shareholders for 2021 was ¥459,524,309.55, a decrease of 16.51% from ¥550,377,093.90 in 2020[12] - The net cash flow from operating activities increased by 88.41% to ¥614,274,470.33 in 2021, up from ¥326,030,825.70 in 2020[12] - The basic earnings per share for 2021 was ¥0.1434, down 18.85% from ¥0.1767 in 2020[12] - The total assets at the end of 2021 were ¥21,071,032,920.17, an increase of 11.59% from ¥18,883,320,717.95 at the end of 2020[12] - The net assets attributable to shareholders at the end of 2021 were ¥10,919,267,773.28, reflecting a growth of 10.13% from ¥9,914,498,620.25 at the end of 2020[12] - The company reported a diluted earnings per share of ¥0.1434 for 2021, consistent with the basic earnings per share[12] - The weighted average return on equity for 2021 was 4.31%, down from 5.65% in 2020[12] - The net profit after deducting non-recurring gains and losses for 2021 was ¥418,466,725.51, a slight decrease of 0.50% from ¥420,579,484.91 in 2020[12] - The total operating revenue for 2021 was CNY 11,884,288,642.09, with a net profit attributable to shareholders of CNY 439,524,309.55, indicating a significant decline compared to the previous year[14] Industry and Market Position - The software and information technology service industry in China achieved a revenue of CNY 949.94 billion in 2021, growing by 17.7% year-on-year[18] - The company focuses on providing comprehensive industry solutions and information technology services, with key sectors including healthcare, energy, finance, and smart cities[18] - The company maintains a direct sales model, establishing long-term relationships with clients across multiple sectors, which supports stable revenue growth[20] - The company holds numerous certifications, including CMMI Level 5 and ISO certifications, enhancing its credibility and market position[22] Research and Development - The company is actively involved in research and development, focusing on digital transformation technologies such as big data and artificial intelligence[18] - The company has over 2,100 software copyrights, emphasizing its commitment to innovation and technology research and development[63] - The company is investing heavily in R&D, with a budget allocation of 200 million yuan for new technologies and software development in 2022[141] - The company aims to enhance its product development and application innovation in emerging technologies, including cloud computing and blockchain[103] Subsidiaries and Partnerships - Over 30 top-tier hospitals have signed subscription service contracts with the company's subsidiary, Donghua Yiwei, for its HOS product[24] - The total contract value for HOS services signed with over 30 hospitals exceeded 250 million CNY[26] - Donghua Botai signed over 200 projects during the reporting period, establishing strategic partnerships with key clients in the energy sector[32] - The company has established strategic partnerships with industry leaders like Huawei and Tencent to enhance product and solution offerings[67] Operational Efficiency and Management - The company has a strong talent pool, with a focus on attracting and nurturing high-caliber professionals to support its strategic goals[65] - The company has optimized its internal management structure by deregistering several subsidiaries to reduce management costs[102] - The company has established a robust internal audit system to enhance the effectiveness of internal controls and mitigate operational and financial risks[126] - The company has a performance evaluation and incentive mechanism in place, which includes an employee stock ownership plan to attract and retain top talent[125] Environmental and Social Responsibility - The company promotes a paperless office initiative to minimize paper and ink consumption, enhancing environmental responsibility[173] - The company actively engages in poverty alleviation efforts by purchasing high-quality agricultural products from local farmers to support their economic development[174] - The company has implemented energy-saving measures, including centralized control of air conditioning to reduce electricity consumption and carbon emissions[173] Governance and Compliance - The company adheres to strict information disclosure obligations, ensuring timely and accurate communication with shareholders through designated channels[122] - The company has established a governance structure that complies with relevant laws and regulations, enhancing its operational transparency[117] - The company conducted 1 annual general meeting and 5 temporary general meetings during the reporting period, ensuring compliance with legal procedures and protecting shareholders' rights[118] Future Outlook - The company provided a positive outlook for 2022, projecting a revenue growth of 15% to 20% based on current market trends and user acquisition strategies[141] - The company plans to develop a low-code development platform to adapt quickly to regulatory changes and demand iterations[107] - The company is considering strategic acquisitions to enhance its technology portfolio, with a target of completing at least two acquisitions in the next fiscal year[141] Employee and Compensation - The total number of employees at the end of the reporting period is 11,766, with 2,072 in the parent company and 9,694 in major subsidiaries[154] - The total employee compensation during the reporting period amounted to 1,851.48 million RMB, accounting for 17.75% of the total company costs[156] - The company has a structured compensation system that includes performance-based incentives to motivate key employees[155] Financial Risks and Challenges - The company faces risks from intensified market competition and plans to enhance management and innovation in key technology areas[111] - The company will respond to policy risks by closely monitoring changes and adjusting its development strategy accordingly[112] - The company will increase investment in R&D and talent acquisition to address technology risks and maintain market competitiveness[113]

Financial Performance - The company's operating revenue for Q3 2021 was ¥2,260,274,054.47, representing a year-on-year increase of 17.31%[4] - The net profit attributable to shareholders for the same period was ¥227,371,690.32, reflecting a growth of 6.34% compared to the previous year[4] - Total operating revenue for Q3 2021 reached ¥6,778,055,620.54, an increase of 21.7% compared to ¥5,566,687,667.11 in Q3 2020[15] - Operating profit for the period was ¥712,250,272.71, up 12.4% from ¥633,400,821.74 in the same period last year[17] - Net profit attributable to shareholders of the parent company was ¥680,626,335.90, representing a 10.6% increase from ¥615,125,537.88 in Q3 2020[17] - The total comprehensive income attributable to shareholders of the parent company was ¥665,012,392.48, compared to ¥602,665,976.44 in the previous year, reflecting a growth of 10.3%[18] - The company reported a basic earnings per share of ¥0.2185, an increase from ¥0.1974 in Q3 2020[18] Assets and Liabilities - The total assets at the end of the reporting period amounted to ¥21,148,006,217.22, which is an increase of 11.99% from the end of the previous year[4] - The total liabilities of the company as of September 30, 2021, were CNY 9,745,046,533.82, compared to CNY 8,776,727,834.57 at the end of 2020, reflecting a growth of approximately 11.02%[14] - The total liabilities increased to ¥9,951,564,645.58, compared to ¥8,859,916,326.53 in the previous year, reflecting a growth of 12.3%[15] - The total assets amounted to CNY 18,883,320,717.95, a slight decrease from CNY 18,988,624,483.37[23] - The total liabilities included short-term borrowings of CNY 3,333,049,730.79 and accounts payable of CNY 1,454,145,044.66[23] - Total liabilities amounted to CNY 8,859,916,326.53, with a non-current liability total of CNY 83,188,491.96[24] Equity - The company's total equity attributable to shareholders increased to ¥11,061,885,832.85, up 11.57% from the previous year[4] - Total equity attributable to shareholders of the parent company rose to ¥11,061,885,832.85, up from ¥9,914,498,620.25, marking a 11.6% increase[15] - The total equity of Donghua Software Co., Ltd. increased to CNY 11,402,959,683.40, up from CNY 10,106,592,883.38, indicating a growth of approximately 12.83%[14] - Total equity attributable to shareholders reached CNY 9,914,498,620.25, while total equity was CNY 10,023,404,391.42[25] Cash Flow - Cash flow from operating activities showed a net outflow of ¥1,000,839,821.37, a decrease of 1.45% compared to the same period last year[4] - Cash generated from operating activities was ¥6,761,072,588.12, compared to ¥5,749,610,315.00 in the same period last year, indicating a growth of 17.6%[19] - Operating cash inflow totaled CNY 7,197,372,456.21, an increase from CNY 6,454,737,949.14 in the previous year, reflecting a growth of approximately 11.5%[20] - Operating cash outflow amounted to CNY 8,198,212,277.58, compared to CNY 7,441,249,191.40 in the same period last year, indicating an increase of about 10.2%[20] - The net cash flow from operating activities was negative at CNY -1,000,839,821.37, slightly worsening from CNY -986,511,242.26 year-over-year[20] - Cash inflow from financing activities reached CNY 3,527,635,022.67, up from CNY 2,927,652,896.34, marking an increase of approximately 20.5%[21] - The net cash flow from financing activities was CNY 354,125,393.90, a decrease from CNY 406,207,418.62 in the previous year[21] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 149,432, with the largest shareholder holding 19.62% of the shares[10] Other Information - The company is actively involved in the development of new technologies and products, although specific details were not disclosed in the report[12] - Donghua Software Co., Ltd. is exploring market expansion opportunities, including potential mergers and acquisitions, to enhance its competitive position in the industry[12] - The company reported a significant increase in contract liabilities, which rose to CNY 2,118,764,148.88 from CNY 1,894,727,438.38, representing an increase of about 11.88%[14] - Research and development expenses amounted to ¥690,550,060.25, which is a 23.1% increase from ¥561,130,505.28 in the previous year[17] - The company has not undergone an audit for the third quarter report[25]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥4,517,781,566.07, representing a 24.12% increase compared to ¥3,639,858,350.26 in the same period last year[10]. - The net profit attributable to shareholders of the listed company was ¥453,254,645.58, an increase of 12.94% from ¥401,306,828.44 in the previous year[10]. - The net profit after deducting non-recurring gains and losses was ¥447,769,086.20, which is a 14.96% increase compared to ¥389,488,269.98 in the same period last year[10]. - The basic earnings per share for the reporting period was ¥0.1455, up 12.97% from ¥0.1288 in the previous year[10]. - The total assets at the end of the reporting period were ¥20,518,249,097.79, an increase of 8.66% from ¥18,883,320,717.95 at the end of the previous year[10]. - The net assets attributable to shareholders of the listed company were ¥10,367,487,856.65, reflecting a 4.57% increase from ¥9,914,498,620.25 at the end of the previous year[10]. - The total operating revenue for the first half of 2021 reached ¥4,517,781,566.07, a 24.2% increase from ¥3,639,858,350.26 in the same period of 2020[100]. - Operating profit for the first half of 2021 was ¥472,513,244.49, compared to ¥412,652,348.32 in the first half of 2020, reflecting a growth of 14.5%[101]. - The company reported a total profit of ¥472,733,250.69 for the first half of 2021, compared to ¥417,132,551.77 in the same period of 2020, indicating a growth of 13.3%[101]. Cash Flow and Investments - The net cash flow from operating activities was -¥1,205,551,777.34, a decrease of 13.75% compared to -¥1,059,866,008.50 in the same period last year[10]. - Cash inflow from operating activities totaled ¥4,228,315,237.78 in the first half of 2021, compared to ¥3,695,502,068.94 in the same period of 2020, reflecting an increase of approximately 14.4%[106]. - Cash outflow from operating activities was ¥5,433,867,015.12, up from ¥4,755,368,077.44 in the first half of 2020, which is an increase of about 14.2%[106]. - The net cash flow from financing activities for the first half of 2021 was ¥98,499,383.44, compared to ¥344,518,931.26 in the same period of 2020, indicating a decline of approximately 71.5%[107]. - The company reported a significant increase in cash received from other operating activities, totaling ¥215,395,352.36 in the first half of 2021, compared to ¥301,325,523.75 in the same period of 2020, reflecting a decrease of approximately 28.5%[106]. - Investment activities resulted in a net cash outflow of -¥139,743,280.63 in the first half of 2021, compared to -¥52,018,145.33 in the same period of 2020, indicating a worsening of approximately 168.5%[107]. Research and Development - Research and development investment increased to ¥683,721,670.42, reflecting an 18.84% rise from ¥575,317,337.06 in the previous year[32]. - Research and development expenses increased to ¥456,694,158.97 in the first half of 2021, compared to ¥394,248,064.18 in the same period of 2020, representing a rise of 15.8%[100]. - The company has established multiple research institutes, including those focused on AI and big data, enhancing its innovation capabilities in various sectors[27]. - The company aims to enhance its technological capabilities through ongoing research and development initiatives[124]. Market Expansion and Strategy - The company focuses on various sectors including healthcare, finance, smart cities, energy, and government, enhancing its market presence[19]. - The company is actively expanding its market presence and continuously innovating its business model to adapt to industry upgrades[19]. - The company is exploring potential mergers and acquisitions to enhance its market position and technological capabilities[112]. - The company plans to focus on market expansion and new product development in the upcoming quarters[112]. - The company is expanding its market presence in Southeast Asia, targeting a 30% increase in market share by the end of 2022[143]. Social Responsibility and Community Engagement - The company actively participated in social responsibility initiatives, enhancing public relations and community support, including poverty alleviation efforts in Hebei province[54]. - The company has employed 119 disabled employees in Beijing, ensuring equal treatment and opportunities in the workplace[56]. - The company has committed to providing more job opportunities for disabled individuals as part of its social responsibility initiatives[54]. - In the first half of 2021, the company undertook multiple rural revitalization projects across various provinces, collaborating with partners like Tencent to provide comprehensive solutions for rural development[55]. - The company aims to assist 2,800 counties in rural revitalization efforts, promoting sustainable economic growth and ecological well-being[55]. Corporate Governance and Compliance - The company maintained a good credit status, with no outstanding legal obligations or significant debts due[59]. - There were no significant lawsuits or arbitration matters reported during the period[58]. - The company does not belong to the list of key pollutant discharge units and has not faced any administrative penalties for environmental issues during the reporting period[53]. - The company’s financial statements are prepared based on the assumption of going concern, with no significant doubts about its ability to continue operations[133]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 161,577[84]. - The company did not distribute cash dividends or issue bonus shares for the half-year period[51]. - The company’s employee stock ownership plan from 2018 is still in effect, having completed its lock-up period in March 2019[52]. Financial Position - Total liabilities increased to ¥10,043,473,267.13, up from ¥8,859,916,326.53, representing a growth of approximately 13.4% year-over-year[95]. - The company's equity attributable to shareholders rose to ¥10,367,487,856.65 from ¥9,914,498,620.25, marking an increase of about 4.6%[96]. - The total approved guarantee amount for subsidiaries during the reporting period was RMB 75,500 million, with actual guarantees amounting to RMB 47,544.25 million[73]. - The total approved guarantee amount at the end of the reporting period was RMB 98,500 million, with actual guarantees remaining at RMB 67,148.86 million[73]. Accounting Policies - The company’s accounting policies are in accordance with the relevant enterprise accounting standards, ensuring the financial statements reflect true and complete information[135]. - The company recognizes its share of assets and liabilities in joint operations and accounts for income generated from the sale of its share of joint operation outputs[147]. - The company will adjust the capital reserve in the consolidated balance sheet for the difference between the purchase price of minority equity and the net asset share of the subsidiary from the purchase date[145].

Financial Performance - The company's operating revenue for Q1 2021 was ¥2,029,336,331.40, representing a 17.50% increase compared to ¥1,727,038,577.62 in the same period last year[3] - Net profit attributable to shareholders decreased by 28.66% to ¥113,059,035.20 from ¥158,471,548.39 year-on-year[3] - Basic earnings per share fell by 28.68% to ¥0.0363 from ¥0.0509 in the same period last year[3] - The total operating revenue for the first quarter of 2021 was CNY 2,029,336,331.40, an increase of 17.5% compared to CNY 1,727,038,577.62 in the same period last year[25] - The net profit for the first quarter of 2021 was CNY 107,741,480.69, down from CNY 150,594,706.06 in the previous year, indicating a decrease of about 28.5%[27] - The operating profit for the first quarter was CNY 117,927,171.71, compared to CNY 162,901,197.92 in the same period last year, reflecting a decline of approximately 27.6%[26] - The total comprehensive income for the first quarter was CNY 107,741,480.69, compared to CNY 150,594,706.06 in the previous year, showing a decline of about 28.5%[28] Cash Flow - The net cash flow from operating activities was negative at ¥867,003,630.01, a decline of 36.61% compared to the previous year's negative cash flow of ¥634,652,320.00[3] - Cash received from sales of goods and services increased by 77.73% year-on-year, leading to a 58.14% increase in net cash inflow from operating activities[9] - Cash paid for purchasing goods and services increased by 74.46% year-on-year, resulting in a 50.97% increase in cash outflow from operating activities[9] - The total cash inflow from operating activities was CNY 2,010,774,314.44, an increase of 57.9% compared to CNY 1,271,547,483.94 in the previous period[31] - The net cash outflow from operating activities was CNY -867,003,630.01, worsening from CNY -634,652,320.00 in the same period last year[31] - The net cash flow from investing activities was CNY -83,492,023.20, compared to CNY -19,280,751.50 in the previous year, reflecting increased investment expenditures[32] - The net cash flow from financing activities was CNY -415,371,156.30, a decline from CNY 237,289,014.18 in the same period last year, indicating reduced financing activities[32] Assets and Liabilities - Total assets at the end of the reporting period were ¥18,529,622,804.38, down 1.87% from ¥18,883,320,717.95 at the end of the previous year[3] - The total liabilities decreased to CNY 6,429,932,182.70 from CNY 6,798,136,882.08, reflecting a reduction of approximately 5.4%[25] - The equity attributable to shareholders of the parent company increased to CNY 10,027,747,701.52 from CNY 9,914,498,620.25, representing a growth of 1.1%[22] - The total owner's equity as of March 31, 2021, was CNY 10,138,404,807.94, up from CNY 10,023,404,391.42, indicating a growth of approximately 1.1%[22] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 162,281[6] - The top shareholder, Beijing Donghua Integrity Computer Technology Development Co., Ltd., held 20.41% of the shares, totaling 635,970,080 shares[6] - The company did not engage in any repurchase agreements among the top 10 shareholders during the reporting period[7] Expenses and Investments - The company's total operating costs for the first quarter were CNY 1,941,375,672.49, up from CNY 1,584,417,316.11, an increase of approximately 22.6%[26] - Research and development expenses increased to CNY 168,614,962.47 from CNY 131,095,761.24, marking a rise of about 28.5% year-over-year[26] - The financial expenses for the first quarter were CNY 20,364,423.37, compared to CNY 16,274,747.27 in the previous year, indicating an increase of about 25.6%[26] - The company's sales expenses rose to CNY 122,319,703.17 from CNY 100,922,918.39, representing an increase of approximately 21.1% year-over-year[26] - Cash paid for fixed assets, intangible assets, and other long-term assets increased by 65.37% year-on-year, indicating increased investment in fixed assets[9] - Cash paid for investments increased by 9622.22% year-on-year, reflecting a significant increase in external investments[10] Government Support - The company received government subsidies amounting to ¥4,586,167.55 during the reporting period[4] - Other income increased by 60.01% year-on-year, mainly due to an increase in government subsidies and VAT refunds received[9] Audit Information - The company did not undergo an audit for the first quarter report[35]

Financial Performance - The company's operating revenue for 2020 was ¥9,167,186,699.62, representing a 3.60% increase from ¥8,849,012,664.06 in 2019[11] - The net profit attributable to shareholders for 2020 was ¥550,377,093.90, a decrease of 5.71% compared to ¥583,701,772.02 in 2019[11] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥420,579,484.91, down 13.70% from ¥487,336,020.71 in 2019[11] - The net cash flow from operating activities for 2020 was ¥326,030,825.70, an increase of 7.81% from ¥302,404,355.69 in 2019[11] - The total assets at the end of 2020 were ¥18,883,320,717.95, reflecting a 12.17% increase from ¥16,835,002,423.20 at the end of 2019[11] - The net assets attributable to shareholders at the end of 2020 were ¥9,914,498,620.25, up 4.10% from ¥9,523,851,201.80 at the end of 2019[11] - The basic earnings per share for 2020 were ¥0.1767, a decrease of 5.71% from ¥0.1874 in 2019[11] - The diluted earnings per share for 2020 were also ¥0.1767, down 5.71% from ¥0.1874 in 2019[11] - The weighted average return on equity for 2020 was 5.65%, a decline of 0.55% from 6.20% in 2019[11] Revenue Breakdown - The company's total revenue for Q4 reached ¥3,600,499,032.51, marking a significant increase compared to previous quarters[13] - The net profit attributable to shareholders for Q4 was -¥64,748,443.98, indicating a loss after three profitable quarters[13] - The net cash flow from operating activities in Q4 was ¥1,312,542,067.96, a substantial recovery from previous quarters[13] - The financial health sector contributed CNY 5.90 billion, accounting for 64.33% of total revenue, with a growth of 3.41% compared to the previous year[112] - The government sector saw a significant increase in revenue, reaching CNY 801.72 million, which is a 14.51% increase year-on-year[112] - System integration revenue accounted for 66.23% of total revenue, showing a slight increase of 0.66% compared to the previous year[113] - Technical service revenue increased by 11.93% year-on-year, reaching CNY 2,244,077,733.79, representing 24.48% of total revenue[113] Investments and Assets - The company's intangible assets increased by 63.98% compared to the end of the previous year, primarily due to the purchase of land use rights and other intangible assets[24] - The construction in progress rose by 93.22%, attributed to increased expenditures on the Taian Software Park and Ma'anshan Jinyun Industrial Park[24] - The company holds a CMMI Level 5 certification, positioning it as one of the earliest certified software enterprises in China[23] - The company's equity assets increased by 20.05% compared to the end of the previous year, mainly due to increased external investments[24] - The company invested CNY 907,874,882.97 during the reporting period, a 16.97% increase compared to CNY 776,140,866.20 in the previous year[136] Research and Development - Research and development (R&D) investment amounts to ¥1,166,906,651.47, representing 12.73% of operating revenue, a decrease of 1.11% year-on-year[128] - The number of R&D personnel is 5,280, down 3.10% from the previous year, with R&D personnel accounting for 51.75% of the total workforce[128] - The company has completed several R&D projects, including an intelligent operation and maintenance platform and a data governance support platform, with capitalized R&D expenditures totaling ¥16,010,694.08[129] Strategic Initiatives - The company has established a comprehensive product system and service ecosystem, serving over 20 industries including healthcare and finance[17] - The company has established a stable cooperative relationship with Huawei, focusing on technology integration and collaborative development[28] - The company has transitioned to a subscription model (SaaS) for its smart hospital solutions, enhancing its service offerings[34] - The company aims to expand its cloud service business, targeting healthcare, finance, and smart city sectors to increase its market share[150] - The company plans to enhance its core competitive advantages and invest in emerging technologies such as artificial intelligence, blockchain, and big data to transform into a quality cloud service provider[144] Market Position and Growth - The software and information technology service industry in China saw a revenue growth of 13.3% year-on-year, reaching ¥8.17 trillion in 2020[22] - The company has established a leading position in various sectors such as healthcare, finance, and smart cities, and will continue to expand its competitive advantages in these areas[157] - The global cloud computing market is projected to double by 2023, reaching approximately $500 billion, highlighting significant growth opportunities for the company[150] Dividend Policy - The cash dividend for the 2020 fiscal year is proposed to be RMB 0.50 per 10 shares, pending approval at the 2020 annual general meeting[173] - The cash dividend for 2020 represents 28.30% of the net profit attributable to ordinary shareholders, amounting to RMB 155,774,118.75[174] - The company has maintained a consistent cash dividend policy over the past three years, with cash dividends of RMB 155,774,118.75 for both 2019 and 2020[176] Corporate Governance - The company has no related party transactions with its top five customers and suppliers, ensuring independence in its business relationships[124] - The company has not engaged in any major litigation or arbitration matters during the reporting period[181] - The company has not experienced any penalties or rectification situations during the reporting period[182] Future Outlook - The company aims to capture one-third of the market share in the second-generation credit reporting system by signing contracts with over 60 financial institutions[162] - The company is committed to increasing R&D investment to maintain its technological advantage amid rapid industry changes[165] - The company is addressing potential talent retention issues by enhancing compensation and training programs to attract and retain skilled professionals[168]