Company Classification and Business Overview - The company reported a significant change in its industry classification from telecommunications equipment manufacturing to business services in 2021[21]. - The company’s main business includes mobile communication network optimization and coverage equipment, as well as internet advertising and media services following the acquisition of Jiangxi Giant Network Technology Co., Ltd.[21]. - The company has undergone significant asset restructuring in 2017, expanding its business into internet advertising and media[21]. - The company’s registered address is located at 581 Torch Avenue, Hangzhou, with a postal code of 310053[17]. - The company’s stock is listed on the Shenzhen Stock Exchange under the ticker symbol 002115[17]. - The company’s website is http://www.sunwave.com.cn/ where further information can be accessed[17]. Financial Performance - The company's operating revenue for 2021 was ¥10,263,712,509.37, representing a 17.46% increase compared to ¥8,738,054,190.48 in 2020[22]. - The net profit attributable to shareholders was -¥704,217,135.36, a significant decrease of 4,107.03% from ¥17,574,554.95 in 2020[22]. - The net cash flow from operating activities was ¥4,997,438.12, down 99.25% from ¥663,346,525.90 in the previous year[22]. - The total assets at the end of 2021 were ¥4,372,441,543.95, a decrease of 6.03% from ¥4,652,987,682.92 at the end of 2020[23]. - The net assets attributable to shareholders decreased by 9.38% to ¥2,265,051,917.66 from ¥2,499,368,272.57 in 2020[23]. - The basic earnings per share for 2021 was -¥0.9707, a decline of 4,062.04% from ¥0.0245 in 2020[23]. - The weighted average return on equity was -32.10%, down from 0.70% in 2020[23]. - The total revenue for 2021 reached ¥10,263,712,509.37, representing a year-on-year increase of 17.46% compared to ¥8,738,054,190.48 in 2020[59]. - The revenue from the Internet information services segment was ¥9,285,103,348.43, accounting for 90.47% of total revenue, with a year-on-year growth of 16.64%[59]. - The advertising business generated ¥9,157,096,955.17, which is 89.21% of total revenue, reflecting an 18.16% increase from ¥7,749,504,024.48 in 2020[59]. Market and Industry Insights - The company reported a total of 65.4 million new 5G base stations built in 2021, contributing to the largest 5G network globally[34]. - The company plans to leverage the growing demand for 5G applications across various industries, with over 2,000 ongoing projects in the 5G+ industrial internet sector[34]. - The company has identified significant potential in the 5G industry, which is expected to drive digital economic growth[34]. - The global DAS market is expected to grow at a compound annual growth rate (CAGR) of nearly 20% over the next three years, with 5G DAS demand growing at a CAGR of 45%[35]. - The internet advertising revenue in China reached 543.5 billion RMB in 2021, with a year-on-year growth of 9.32%[36]. - The top 10 companies in the internet advertising market accounted for 94.85% of the market share, with Alibaba, ByteDance, and Tencent leading the way[36]. Subsidiaries and Partnerships - The company’s subsidiary, Giant Network Technology, has over 3,000 cooperative clients and maintains long-term partnerships with major media platforms[38]. - The company has formed deep and stable partnerships with leading internet firms such as Tencent and ByteDance, significantly boosting its business growth[56]. - The company established independent overseas marketing teams to enhance its international presence, targeting high-end clients in finance, internet, and infrastructure sectors[55]. Research and Development - The company is actively expanding its product innovation and technology capabilities, particularly in the ORAN ecosystem and 5G private network markets[42]. - Research and development expenses increased by 34.73% to ¥101,567,537.63, primarily due to increased R&D investments[68]. - The number of R&D personnel rose by 19.89% to 422, with R&D personnel now constituting 37.68% of the total workforce[69]. - The total R&D investment reached ¥115,919,709.04, representing 1.13% of operating revenue, up from 0.99% the previous year[70]. Risk Management - The company has faced industry risks and challenges, which are detailed in the management discussion and analysis section of the report[4]. - The company’s management emphasizes the importance of risk awareness regarding forward-looking statements made in the report[4]. - The company acknowledges risks from the COVID-19 pandemic affecting production cycles and order deliveries, which may impact business operations[103]. - The company has estimated and provided for potential bad debts from accounts receivable, which may increase as the business scales up[103]. - The company is actively managing supply chain risks due to global material supply disruptions caused by the pandemic and geopolitical tensions[105]. Corporate Governance - The company’s financial report is guaranteed to be true, accurate, and complete by its management team, including the CEO and accounting head[3]. - The company has established a robust corporate governance structure to protect shareholder and creditor rights, ensuring fair and accurate information disclosure[160]. - The company’s management team has faithfully fulfilled their duties, with no instances of breach of trust or fiduciary duty reported[114]. - The company’s board of directors and supervisory board meetings adhered to legal and regulatory requirements, ensuring compliance and effective governance[114]. - The company’s performance evaluation and incentive mechanisms are transparent, linking the compensation of directors and senior management to company performance[115]. Employee and Remuneration Policies - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 6.61 million[133]. - The independent directors received an annual allowance of CNY 80,000 (before tax), paid monthly[131]. - The company has established a remuneration management method approved by the shareholders' meeting for directors and supervisors[131]. - The company has implemented a performance-oriented compensation policy, linking employee salaries to job contributions and performance[147]. - The company has a training plan in place to enhance employee skills across various areas, including safety and operational standards[148]. Future Outlook and Strategic Plans - The company has set a revenue guidance of 1.8 billion RMB for the next fiscal year, projecting a growth rate of 20%[129]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2023[174]. - A strategic acquisition was announced, with the company acquiring a local competitor for 200 million yuan, expected to enhance market capabilities and customer base[175]. - The company aims to improve operational efficiency by 15% through the implementation of advanced supply chain management systems[129]. - The management team emphasizes a commitment to sustainability, targeting a 25% reduction in carbon emissions by 2025[129].

Financial Performance - The company's operating revenue for Q1 2022 was ¥2,432,856,523.59, a decrease of 9.38% compared to ¥2,684,678,570.37 in the same period last year[3] - The net profit attributable to shareholders was ¥16,343,520.43, down 13.61% from ¥18,919,259.29 year-on-year[3] - The net profit after deducting non-recurring gains and losses was ¥10,752,136.40, a significant decline of 40.99% compared to ¥18,222,280.56 in the previous year[3] - The company reported a net loss of CNY 212,143,326.77 in retained earnings, an improvement from a loss of CNY 228,486,847.20 at the beginning of the year[16] - Net profit for the current period is $18,247,535.04, an increase of 9.00% compared to $16,763,081.26 in the previous period[19] - The company reported a total comprehensive income of $17,528,261.86, up from $16,279,592.36 in the previous period[20] Cash Flow and Liquidity - The net cash flow from operating activities was -¥107,870,914.20, representing a decrease of 295.80% from -¥27,253,807.00 in the same period last year[3] - Cash flow from operating activities generated a net outflow of $107,870,914.20, compared to a net outflow of $27,253,807.00 in the previous period[23] - The company's cash and cash equivalents decreased to CNY 905,905,715.86 from CNY 1,228,733,265.34, representing a decline of approximately 26.3%[14] - Cash and cash equivalents at the end of the period decreased to $882,863,355.54 from $989,650,605.48 in the previous period[24] - The company experienced a foreign exchange loss of $1,230,480.98 affecting cash and cash equivalents[24] Assets and Liabilities - Total assets at the end of the reporting period were ¥4,265,248,111.86, down 2.45% from ¥4,372,441,543.95 at the end of the previous year[3] - As of March 31, 2022, the total assets of the company amounted to CNY 4,265,248,111.86, a decrease from CNY 4,372,441,543.95 at the beginning of the year[15] - The total liabilities decreased to CNY 1,935,260,316.59 from CNY 2,057,232,009.54, indicating a reduction of approximately 5.9%[15] - The company's equity attributable to shareholders increased slightly to CNY 2,272,182,203.58 from CNY 2,265,051,917.66[16] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 60,548, with the largest shareholder holding 12.53% of the shares[9] - The company completed the repurchase and cancellation of 1,307,310 shares, which accounted for 0.1597% of the total share capital prior to cancellation[12] Operational Costs and Expenses - Total operating costs for the current period are $2,415,706,020.85, down 9.20% from $2,660,425,729.48 in the previous period[18] - Research and development expenses increased to $27,948,740.41, up 29.80% from $21,605,144.20 in the previous period[18] - Financial expenses surged by 200.84% to ¥4,339,893.05, primarily due to increased exchange losses compared to the previous period[7] Inventory and Receivables - Accounts receivable increased to CNY 945,442,650.74 from CNY 863,731,630.86, reflecting a growth of about 9.4%[14] - The company's inventory increased to CNY 382,345,137.72 from CNY 353,218,158.06, marking an increase of about 8.2%[14] Borrowings - Short-term borrowings rose to CNY 318,241,608.72 from CNY 205,160,822.60, reflecting an increase of approximately 55.1%[15] Other Information - The first quarter report has not been audited[25] - The board of directors meeting was held on April 30, 2022[26]

Financial Performance - The company's revenue for Q3 2021 was ¥2,537,970,643.70, representing a year-on-year increase of 10.89%[3] - Net profit attributable to shareholders was ¥24,837,977.68, a decrease of 38.83% compared to the same period last year[3] - The net profit after deducting non-recurring gains and losses was ¥22,240,514.04, down 10.41% year-on-year[3] - The basic earnings per share for Q3 2021 was ¥0.0346, a decrease of 38.87% compared to the same period last year[3] - Operating revenue for the first nine months of 2021 reached ¥7,753,844,994.47, a 24.76% increase compared to ¥6,214,922,202.64 in the same period of 2020[10] - The net profit for the third quarter of 2021 was CNY 48,031,795.27, a significant increase from CNY 11,633,715.14 in the same period last year, representing a growth of approximately 312%[22] - The total profit was CNY 95,127,598.50, which is an increase of 102% compared to CNY 46,934,151.64 in the previous year[22] - Basic earnings per share for the quarter were CNY 0.0838, compared to CNY 0.0244 in the same quarter last year, marking an increase of approximately 243%[23] Cash Flow and Investments - The cash flow from operating activities showed a net outflow of ¥394,924,034.64, a decline of 259.21% year-to-date[3] - Net cash flow from operating activities was -¥394,924,034.64, a 259.21% decrease from ¥248,046,633.71 in the previous year, mainly due to payments for goods and due bills[11] - Net cash flow from investing activities was -¥122,026,435.08, an increase of 828.50% compared to -¥13,142,302.78, primarily due to investments in communication infrastructure and equipment[11] - The company reported a total investment cash outflow of CNY 291,107,763.94, compared to CNY 336,541,511.55 in the previous year, reflecting a decrease of about 13.5%[26] Assets and Liabilities - The total assets at the end of Q3 2021 were ¥4,422,957,860.72, a decrease of 4.94% from the end of the previous year[3] - Cash and cash equivalents decreased to ¥391,010,708.64 from ¥1,018,478,073.27, a decline of 61.6%[17] - Total assets decreased to ¥4,422,957,860.72 from ¥4,652,987,682.92, a reduction of 4.9%[19] - Total liabilities decreased to ¥1,807,106,757.77 from ¥2,086,920,187.08, a decline of 13.4%[19] - Shareholders' equity increased to ¥2,615,851,102.95 from ¥2,566,067,495.84, reflecting a growth of 1.9%[19] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 63,984, with no preferred shareholders[13] - The top shareholder, Li Yuelun, holds 14.28% of shares, amounting to 102,390,600 shares, with 77,473,200 shares pledged[13] Operational Efficiency - Operating costs increased by 25.47% to ¥7,430,877,996.10 from ¥5,922,414,672.51 year-on-year, primarily due to growth in the internet advertising business[10] - The company experienced a 75.78% increase in credit impairment losses, totaling -¥17,613,804.66 compared to -¥10,020,163.56 in the previous year[10] - The company reported a significant increase in other income, which rose by 252.96% to ¥2,216,649.03 from ¥628,018.67, due to the clearance of daily operational matters[10] Current Assets - Accounts receivable rose to ¥955,791,554.48, compared to ¥777,958,093.05, marking an increase of 22.8%[17] - Inventory increased to ¥382,376,395.27 from ¥295,225,922.93, representing a growth of 29.5%[17] - The company reported a significant increase in prepayments, which rose to ¥290,711,697.10 from ¥157,671,199.45, an increase of 84.3%[17] - The company has a total of approximately 66.04 million in other current assets, contributing to liquidity[30] Financial Reporting - The company has implemented a new leasing standard effective from January 1, 2021, impacting financial reporting[32] - The report for the third quarter was not audited, which may affect the reliability of the financial data presented[33]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥5,215,874,350.77, representing a 32.85% increase compared to ¥3,926,104,311.91 in the same period last year[21]. - The net profit attributable to shareholders of the listed company reached ¥35,263,048.03, a significant turnaround from a loss of ¥23,152,194.16, marking a 252.31% increase[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥32,989,199.04, compared to a loss of ¥3,388,819.58, reflecting a 1,073.47% increase[21]. - The basic earnings per share improved to ¥0.0492 from a loss of ¥0.0323, indicating a 252.32% increase[21]. - The total operating revenue for the first half of 2021 reached CNY 5,215,874,350.77, a 32.9% increase from CNY 3,926,104,311.91 in the same period of 2020[165]. - Operating profit for the first half of 2021 was CNY 63,892,804.39, compared to a loss of CNY 9,217,720.20 in the first half of 2020[167]. - Net profit for the first half of 2021 was CNY 26,838,973.11, recovering from a net loss of CNY 29,760,011.77 in the same period of 2020[167]. - The company reported a total comprehensive income of CNY 26,806,936.32 for the first half of 2021, recovering from a loss of CNY 28,456,333.42 in the same period of 2020[168]. Assets and Liabilities - The total assets at the end of the reporting period were ¥4,402,997,377.49, down 5.37% from ¥4,652,987,682.92 at the end of the previous year[21]. - The company's total liabilities decreased from CNY 2,086,920,187.08 to CNY 1,809,197,945.33, a reduction of approximately 13.3%[159]. - The equity attributable to the owners of the parent company increased to CNY 2,534,599,283.81 from CNY 2,499,368,272.57, showing a growth of about 1.41%[160]. - The company's current assets totaled CNY 2,215,511,574.39, down from CNY 2,389,452,575.70 at the end of 2020, indicating a decrease of about 7.27%[158]. - The company's total liabilities decreased to CNY 1,255,840,222.67 in the first half of 2021 from CNY 1,579,231,501.13 in the previous year, reflecting a reduction of approximately 20.5%[164]. Cash Flow - The net cash flow from operating activities was negative at -¥276,646,983.46, a decline of 425.55% compared to ¥84,979,275.47 in the same period last year[21]. - Cash flow from operating activities showed a net outflow of -276,646,983.46 CNY, a decline from a net inflow of 84,979,275.47 CNY in the first half of 2020[175]. - The net cash flow from investment activities was -228,847,108.25 CNY, down from 92,888,129.87 CNY in the previous period[179]. - The net cash flow from financing activities was -42,166,219.76 CNY, compared to -326,357,209.94 CNY in the previous period, showing an improvement[179]. Research and Development - Research and development expenses increased by 11.49% to CNY 50,172,516.61, compared to CNY 45,002,849.49 in the previous year[52]. - The company increased R&D investment in 5G products, focusing on core communication network coverage equipment, resulting in a 63% year-over-year growth in patent applications, totaling 221 effective patents[39]. - Research and development expenses increased to CNY 46,211,742.51 in the first half of 2021, up from CNY 42,871,604.65 in the first half of 2020, indicating a focus on innovation[165]. Market and Business Expansion - The company maintained a high market share in operator procurement projects, entering into key projects with major telecom operators[36]. - The company successfully won bids for metro projects in Malaysia and Singapore, enhancing its presence in the Asia-Pacific region[38]. - The company plans to focus on market demand in real estate coverage, education shielding, and emergency communication for future growth[37]. - The company is actively pursuing market expansion, with multiple contracts signed under the performance guarantee framework[126]. Shareholder and Governance - The company held three shareholder meetings during the reporting period, with investor participation rates of 29.44%, 30.08%, and 21.60% respectively[1][2][3]. - No cash dividends or stock bonuses were distributed for the half-year period, and no capital reserves were converted into share capital[4]. - The company did not engage in any related party transactions concerning daily operations or asset acquisitions[12][13]. - The company did not experience any changes in its controlling shareholder or actual controller during the reporting period, ensuring continuity in governance[147]. Compliance and Risk Management - The company faces risks related to accounts receivable collection, with potential impacts on performance if receivables are not collected on time[78]. - The company has not experienced any non-compliance issues or penalties during the reporting period[11]. - The company has established a comprehensive human resources management system, ensuring timely payment of wages and social insurance contributions[10]. Environmental and Social Responsibility - The company and its subsidiaries are not classified as key pollutant discharge units by environmental protection authorities, emphasizing their commitment to environmental protection[8]. - The company adheres to a "customer first" principle, providing high-quality products and services while maintaining strict product quality control[12].

Financial Performance - The company's revenue for Q1 2021 was ¥2,684,678,570.37, representing a 41.64% increase compared to ¥1,895,408,255.02 in the same period last year[7]. - Net profit attributable to shareholders was ¥18,919,259.29, a significant turnaround from a loss of ¥45,040,601.25, marking a 142.00% improvement[7]. - The net profit after deducting non-recurring gains and losses was ¥18,222,280.56, up 167.85% from a loss of ¥26,855,792.77 in the previous year[7]. - The basic earnings per share increased to ¥0.0264 from a loss of ¥0.0629, reflecting a 141.97% improvement[7]. - The operating profit for the first quarter was CNY 27,849,343.08, a significant improvement from a loss of CNY 44,936,971.06 in the same period last year[37]. - The net profit for the first quarter was CNY 16,763,081.26, recovering from a net loss of CNY 50,821,171.86 in the previous year[37]. - The company reported a net profit of CNY 494,649,547.45 for the period, up from CNY 475,730,288.16 year-over-year, indicating a growth of approximately 4.0%[30]. - The total comprehensive income for the first quarter was CNY 16,279,592.36, compared to a loss of CNY 50,389,640.42 in the previous year[38]. Assets and Liabilities - The total assets at the end of the reporting period were ¥4,939,266,669.91, a 6.15% increase from ¥4,652,987,682.92 at the end of the previous year[7]. - Total liabilities increased to CNY 2,355,994,581.71 from CNY 2,086,920,187.08, marking an increase of approximately 12.9%[29]. - The company's cash and cash equivalents decreased to CNY 739,614,955.75 from CNY 816,965,331.77, a decline of about 9.5%[30]. - Short-term borrowings rose significantly to CNY 166,303,993.45 from CNY 65,227,902.42, an increase of approximately 155.5%[29]. - Accounts payable increased to CNY 978,923,171.76 from CNY 609,113,516.01, representing a growth of about 60.7%[29]. - The total current assets amounted to CNY 2,389,452,575.70 as of December 31, 2020[52]. - Total non-current assets were CNY 2,263,535,107.22, leading to total assets of CNY 4,652,987,682.92[52]. - The company's total equity was CNY 2,566,067,495.84, with a capital reserve of CNY 1,226,267,552.50[53]. Cash Flow - The net cash flow from operating activities improved to -¥27,253,807.00, a 78.71% reduction in losses compared to -¥128,041,604.31 in the previous year[7]. - Operating cash inflow for the current period was CNY 2,654,690,816.78, an increase from CNY 2,002,905,509.12 in the previous period, representing a growth of approximately 32.5%[45]. - Cash received from sales of goods and services was CNY 2,638,429,797.96, compared to CNY 1,993,391,566.00 in the previous period, indicating a year-over-year increase of about 32.4%[44]. - Cash outflow from investing activities totaled CNY 49,449,317.83, down from CNY 164,557,146.07 in the previous period, showing a decrease of approximately 69.9%[45]. - Cash inflow from financing activities was CNY 150,075,000.00, compared to CNY 87,900,000.00 in the previous period, reflecting an increase of about 70.5%[46]. - The net increase in cash and cash equivalents for the current period was CNY 14,372,222.10, a significant recovery from a decrease of CNY 272,346,487.98 in the previous period[46]. - The ending balance of cash and cash equivalents was CNY 989,650,605.48, up from CNY 548,482,458.04 in the previous period, representing an increase of approximately 80.2%[46]. Shareholder Information - The total number of shareholders at the end of the reporting period was 66,341, with the top ten shareholders holding significant stakes in the company[11]. Business Operations - Operating revenue increased by 78,927.03 million yuan compared to the same period last year, primarily due to the growth of the giant network technology business[16]. - Operating costs rose by 74,708.13 million yuan year-on-year, also attributed to the growth of the giant network technology business[16]. - The company reported a decrease in financial expenses by 4.1354 million yuan year-on-year, attributed to a reduction in both the scale and cost of borrowings[16]. - Other income increased by 703.54 million yuan year-on-year, mainly due to business growth and increased VAT deductions[16]. - The company has plans for market expansion and new product development, although specific figures and timelines were not disclosed in the report[30]. Research and Development - Research and development expenses for the first quarter were CNY 21,605,144.20, down from CNY 25,638,666.33 in the previous year[36]. Non-Recurring Items - The company reported non-recurring gains of ¥696,978.73 during the period, primarily from government subsidies and asset disposals[8]. - The company experienced a credit impairment loss of CNY 9,812,733.96, compared to a loss of CNY 7,606,652.73 in the previous year[36]. Audit Status - The company's first quarter report for 2021 was not audited, indicating preliminary financial data[59].

Financial Performance - The company reported a decline in performance primarily due to the impact of the COVID-19 pandemic, with significant changes in mainstream media platforms affecting monetization capabilities of self-media[6]. - The company's operating revenue for 2020 was ¥8,738,054,190.48, representing a 57.19% increase compared to ¥5,558,891,021.37 in 2019[21]. - The net profit attributable to shareholders decreased by 88.92% to ¥17,574,554.95 from ¥158,555,360.03 in the previous year[21]. - The net profit after deducting non-recurring gains and losses was ¥27,829,815.39, down 68.10% from ¥87,229,005.67 in 2019[21]. - The net cash flow from operating activities was ¥663,346,525.90, a decrease of 14.89% compared to ¥779,433,442.62 in 2019[21]. - The basic earnings per share fell by 88.98% to ¥0.0245 from ¥0.2224 in the previous year[21]. - The company reported a total asset value of ¥4,652,987,682.92 at the end of 2020, a slight increase of 0.47% from ¥4,631,372,732.10 at the end of 2019[21]. - The company’s total assets reached 465,298.77 million CNY, a year-on-year growth of 0.47%[43]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion yuan, representing a year-over-year growth of 20%[116]. Dividend Policy - The company plans not to distribute cash dividends, issue bonus shares, or increase share capital from reserves[8]. - The company did not distribute cash dividends for the fiscal year 2020, and there were no plans for stock dividends or capital reserve transfers[111]. - In 2019, the company distributed cash dividends of 0.5 CNY per 10 shares, totaling approximately 35.96 million CNY, which represented 22.68% of the net profit attributable to ordinary shareholders[110]. - The company’s retained earnings were carried forward to the next fiscal year due to the lack of cash dividend distribution in 2020[109]. - The company’s cash dividend policy complies with the requirements of the company’s articles of association and shareholder resolutions[108]. - Independent directors have fulfilled their responsibilities in the decision-making process regarding the cash dividend policy[108]. Operational Risks - The company has faced various operational risks, including accounts receivable recovery risks and inventory increase risks, which could impact future performance[7]. - The company has highlighted the risks associated with new product and technology innovations, which could affect its competitive position in the market[7]. - The company has recognized the risk of accounts receivable collection and has made adequate provisions for potential bad debts, especially as business scales up[99]. - The company faces risks related to inventory increases due to the long business cycle of wireless communication solutions, which may impact normal operations[99]. Business Strategy and Expansion - The company has been focusing on mobile communication network optimization and has expanded its business to include internet advertising and media services since acquiring Jiangxi Giant Network Technology Co., Ltd. in 2017[20]. - The company is actively investing in 5G communication infrastructure and smart city IoT services to capture market share and create new profit growth points[30]. - The company has entered the satellite communication industry through acquisitions, providing marine communication services and establishing a leading position domestically[30]. - The company plans to optimize its business structure and enhance growth quality by deepening cooperation with key clients and exploring new segments such as gaming and online education[50]. - Future strategies include expanding into overseas advertising markets to capture global media resources and meet personalized client needs[50]. - The company aims to strengthen its internet advertising and media business, particularly in short video advertising and operational services, while enhancing risk management and team optimization[95]. - The company intends to expand its overseas sales channels and establish a localized sales team to build a global partner ecosystem, targeting rural broadband access and 5G private network markets[96]. Research and Development - The company has a strong independent R&D capability and innovation ability, mastering key technologies such as software radio technology and high-efficiency RF power amplifier technology[35]. - The company invested 7,527.75 million CNY in R&D, accounting for 10.72% of the communication segment revenue, with 15 new R&D projects initiated[46]. - The company is investing 200 million yuan in R&D for new technologies aimed at improving user experience and operational efficiency[118]. - The company will leverage its five global R&D centers to focus on 5G DAS, base stations, and ORAN products, enhancing its competitive edge in the 5G network coverage market[96]. Market Position and Competition - The company has established a rich product line in mobile communication, reducing risks associated with industry fluctuations[36]. - The internet advertising media business is primarily conducted through its subsidiary, focusing on tailored advertising solutions for major social media platforms[30]. - The company has established good cooperative relationships with hundreds of game developers and channel partners, including deep collaborations with well-known game manufacturers such as 9You, 360, Baidu, and Tencent[32]. - The company has established a strong presence in Tencent's social advertising sector and aims to deepen cooperation with major media platforms like Douyin and Kuaishou for short video advertising[98]. Corporate Governance - The company has established a sound corporate governance structure to protect shareholder and creditor rights, ensuring fair information disclosure[156]. - The company has committed to avoiding and minimizing related party transactions, ensuring they follow fair market principles[123]. - The company confirmed that all commitments made to minority shareholders were fulfilled on time[125]. - The company has not engaged in any unauthorized external guarantees during the reporting period[151]. Shareholder Information - The company’s major shareholder, Li Yuelun, holds 14.41% of the shares, amounting to 103,287,600 shares, with a portion being pledged[172]. - The company’s actual controller, Li Yuelun, is also the chairman of the company and has not changed in the reporting period[176]. - The company’s stock structure includes a significant portion of shares held by natural persons, indicating a diverse ownership base[173]. - The total number of shares held by the company’s directors and supervisors at the end of the reporting period was 186,411,600 shares[185]. Employee Information - The total number of employees in the company is 1,059, with 482 in the parent company and 577 in major subsidiaries[197]. - The professional composition includes 458 technical personnel, 170 sales personnel, and 21 production personnel[197]. - The company has established a performance-oriented compensation policy to enhance employee motivation and productivity[198]. - A comprehensive training program is in place to improve employee skills and qualifications, covering various aspects including safety and operational standards[200].

Financial Performance - Operating revenue for the reporting period was CNY 2,288,817,890.73, representing a year-on-year increase of 62.07%[7] - Net profit attributable to shareholders was CNY 40,604,758.23, down 55.88% year-on-year[7] - Basic earnings per share were CNY 0.0566, down 56.16% year-on-year[7] - The company reported a significant decline in net profit for the year-to-date period, down 88.63% to CNY 17,452,564.07[7] - Total operating revenue for the first nine months of 2020 reached CNY 6,214,922,202.64, a 77.62% increase compared to CNY 3,499,062,860.39 in the same period of 2019, primarily driven by growth in advertising business[15] - Total operating costs for the same period were CNY 6,183,352,644.91, reflecting an 82.76% increase from CNY 3,383,353,528.20, also due to the growth in advertising business[15] - Net profit for the period was ¥11,633,715.14, down from ¥167,858,931.10 in the same period last year, indicating a decrease of approximately 93%[46] - The total profit for the period was ¥46,934,151.64, down from ¥219,446,284.92 in the previous period, indicating a decrease of about 78.7%[46] Cash Flow - Net cash flow from operating activities was CNY 163,067,358.24, a decrease of 53.98% compared to the same period last year[7] - Net cash flow from operating activities decreased by 50.53% to CNY 248,046,633.71 from CNY 501,364,914.04, mainly due to a decline in WeChat public account revenue[16] - The company reported a net cash outflow from financing activities of CNY 415,017,832.71, a 92.51% increase compared to CNY 215,587,488.53, primarily due to repayment of bank loans[16] - The company’s cash and cash equivalents net decrease amounted to CNY 186,259,332.66, a significant decline compared to an increase of CNY 85,183,970.66 in the previous year[16] - The company reported a net cash outflow from investing activities of ¥13,142,302.78, an improvement from a net outflow of ¥209,257,272.63 in Q3 2019[54] - The total cash inflow from operating activities was ¥6,802,525,758.29, compared to ¥3,950,249,700.67 in the previous year, representing a growth of 72.1%[53] Assets and Liabilities - Total assets at the end of the reporting period were CNY 4,502,386,844.22, a decrease of 2.79% compared to the end of the previous year[7] - Total current assets amounted to approximately CNY 1.50 billion as of December 31, 2020[64] - Total non-current assets reached approximately CNY 1.98 billion, contributing to a total asset value of approximately CNY 3.48 billion[66] - Total liabilities as of September 30, 2020, were CNY 1,926,957,923.46, down from CNY 2,030,159,196.66, a decrease of about 5.1%[30] - The company's total equity decreased to CNY 2,575,428,920.76 from CNY 2,601,213,535.44, reflecting a decline of approximately 1.0%[31] - The company’s total liabilities included ¥446,485,268.55 in long-term borrowings[62] Shareholder Information - The total number of shareholders at the end of the reporting period was 71,171[11] - The largest shareholder, Li Yuelun, held 14.41% of the shares, with 77,465,700 shares pledged[11] Other Income and Expenses - Non-operating income included government subsidies amounting to CNY 10,686,556.79[8] - The company’s other income surged by 191.86% to CNY 44,425,946.47 from CNY 15,221,898.44, mainly due to government subsidies and increased VAT deductions[15] - Research and development expenses were ¥21,660,667.24, down from ¥30,668,460.72, indicating a reduction of approximately 29.4%[37] - The company incurred a credit impairment loss of ¥10,020,163.56, compared to a loss of ¥212,061.50 in the previous period, indicating a significant increase in credit risk[46] Strategic Insights - The chairman of the company, Li Yuelun, provided insights during the earnings call, emphasizing strategic directions moving forward[67] - The company has implemented new revenue and leasing standards starting in 2020, which may affect future financial statements[66]

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 3,926,104,311.91, representing an increase of 88.14% compared to CNY 2,086,843,972.16 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was a loss of CNY 23,152,194.16, a decrease of 137.63% from a profit of CNY 61,532,313.04 in the previous year[18]. - The net cash flow from operating activities was CNY 84,979,275.47, down 42.22% from CNY 147,061,384.51 in the same period last year[18]. - The total assets at the end of the reporting period were CNY 4,177,966,212.92, a decrease of 9.79% from CNY 4,631,372,732.10 at the end of the previous year[18]. - The net assets attributable to shareholders of the listed company were CNY 2,476,862,811.17, a decrease of 1.12% from CNY 2,505,022,555.31 at the end of the previous year[18]. - The basic earnings per share were CNY -0.0323, a decrease of 137.38% from CNY 0.0864 in the same period last year[18]. - The diluted earnings per share were CNY -0.0322, a decrease of 137.66% from CNY 0.0855 in the previous year[18]. - The weighted average return on net assets was -0.93%, down 3.49% from 2.56% in the same period last year[18]. Investment and Development - The company is actively developing 5G network optimization equipment and solutions to align with the accelerated commercial rollout of 5G networks in China[26]. - The company has established a leading position in the satellite communication industry by acquiring controlling stakes in Haiwei Tong and participating in Xingzhan Measurement and Control[26]. - The company is investing in 5G infrastructure and smart city IoT services to capture new profit growth points amid increased investments from domestic operators[27]. - The company has formed strategic partnerships with major internet companies like Tencent and ByteDance to enrich its media resource reserves in the internet advertising sector[38]. - The company has set up two new subsidiaries focused on 5G small base stations and industrial applications to drive innovation in the 5G sector[41]. - The company is focusing on 5G infrastructure construction, having established operations in 10 provinces, including Zhejiang and Shandong[40]. Risks and Challenges - The company faces various risks including accounts receivable recovery risk and inventory increase risk, which may impact future performance[4]. - The company is facing risks related to accounts receivable collection, inventory increases, new product and technology innovation, and management as it expands its business operations[80][81]. - The company faces risks related to industry policies, as changes in government support for the internet sector could impact its operating environment and performance[82]. - There is a significant risk of core talent loss, as the company relies heavily on specialized personnel in the technology-intensive internet industry[82]. Cash Flow and Financial Position - The company reported a net cash decrease of CNY 336.31 million, a significant decline of 1145.38% compared to the previous year, largely due to increased loan repayments[47]. - Cash and cash equivalents decreased by ¥316,392,994.92, from ¥837,928,681.39 to ¥521,535,686.47, primarily due to bank loan repayments, representing a 5.61% decline in total assets[56]. - The company reported a significant decrease in cash flow from operating activities, with total cash inflow dropping from ¥379,501,094.22 to ¥401,621,874.78[171]. - The cash flow from financing activities showed a net outflow of -¥420,893,819.53, compared to a net inflow of ¥66,419,881.01 in the previous year[169]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company has implemented a stock incentive plan, with 2,515,760 restricted shares unlocked for 139 eligible participants on January 22, 2020[96]. - The company repurchased and canceled a total of 2,227,160 restricted shares, accounting for 0.3097% of the total share capital before cancellation[97]. - The total number of shareholders at the end of the reporting period was 79,792[131]. - The company reported no significant issues in the use and disclosure of raised funds[70]. Research and Development - The company maintains strong R&D capabilities in key technologies such as software-defined radio and high-efficiency RF amplification, supporting its competitive edge in the telecommunications sector[31]. - Research and development investment totaled CNY 45 million, a decrease of 22.16% compared to the previous year, reflecting a strategic focus on core technology advancements[47]. - The research and development expenses decreased to CNY 42,871,604.65 in the first half of 2020 from CNY 54,455,272.91 in the same period of 2019, indicating a reduction of approximately 21.3%[158]. Subsidiaries and Acquisitions - The company has established a robust network of subsidiaries, with multiple contracts in place to support its operational strategy[110]. - The company has established new subsidiaries, including Zhejiang Sanwei Lipuwei Network Co., which is not yet operational, and has restructured its holdings in Hangzhou Ziguang Network Technology Co., now a wholly-owned subsidiary of Ziguang Communication[79]. - The company completed the transfer of fishing vessel business assets to Zhejiang Boxingtong Satellite Communication Co., Ltd. for a total price of 25.5 million yuan in June 2020[123]. Financial Reporting and Compliance - The company's financial report for the first half of 2020 was not audited, which may impact the reliability of the financial data presented[148]. - The company adheres to the enterprise accounting standards, ensuring that the financial statements accurately reflect its financial position and operating results[192]. - The company recognizes foreign currency transactions at the exchange rate on the transaction date, with adjustments made for monetary items at the balance sheet date[200].

Financial Performance - The company's operating revenue for Q1 2020 was ¥1,895,408,255.02, representing an increase of 89.42% compared to ¥1,000,652,071.85 in the same period last year[8] - The net profit attributable to shareholders was a loss of ¥45,040,601.25, a decrease of 287.52% from a profit of ¥24,019,439.42 in the previous year[8] - The basic earnings per share were -¥0.0629, down 286.09% from ¥0.0338 in the previous year[8] - The net profit attributable to the parent company decreased to ¥36,342,990.69 from ¥75,347,444.17 year-on-year, reflecting a decline of approximately 51.7%[34] - The total profit for Q1 2020 was a loss of CNY 44,995,007.00, compared to a profit of CNY 45,336,152.30 in the previous year[38] - The total comprehensive income for Q1 2020 was a loss of CNY 50,389,640.42, compared to a gain of CNY 34,255,053.20 in the previous period[39] Cash Flow - The net cash flow from operating activities was a negative ¥128,041,604.31, a decline of 1,604.90% compared to ¥8,508,297.26 in the same period last year[8] - The cash inflow from operating activities for Q1 2020 was CNY 2,002,905,509.12, significantly higher than CNY 1,126,873,338.72 in the previous year[45] - The cash inflow from operating activities was 108,374,219.64 CNY, down from 204,072,252.89 CNY in the previous year[49] - Total cash outflow from operating activities amounted to 2,130,947,113.43 CNY, compared to 1,118,365,041.46 CNY in the prior year[46] - The net cash flow from financing activities decreased by 190.48% year-on-year, primarily due to repayment of bank loans[16] - The net cash flow from financing activities was -93,057,169.95 CNY, compared to 102,853,777.35 CNY in the prior period[47] Assets and Liabilities - Total assets at the end of the reporting period were ¥4,550,757,352.39, a decrease of 1.74% from ¥4,631,372,732.10 at the end of the previous year[8] - The company's total assets as of March 31, 2020, were ¥3,349,950,110.34, down from ¥3,478,421,471.76 at the end of 2019, a decrease of about 3.7%[34] - The total liabilities decreased slightly to ¥1,989,643,727.37 from ¥2,030,159,196.66, a reduction of approximately 2.0%[30] - The company's long-term borrowings increased to ¥534,125,894.49 from ¥446,485,268.55, an increase of about 19.6%[30] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 79,057[12] - The largest shareholder, Li Yuelun, held 14.36% of the shares, with 103,287,600 shares, of which 77,465,700 were pledged[12] - The equity attributable to shareholders of the parent company was ¥2,470,581,044.50, down from ¥2,505,022,555.31, a decrease of about 1.4%[31] Operating Costs and Expenses - Operating costs increased by 112.94% year-on-year, mainly due to the advertising business of Giant Network Technology[16] - Sales expenses increased by 37.39% year-on-year, primarily attributed to the advertising business of Giant Network Technology[16] - Financial expenses decreased by 63.96% year-on-year, mainly due to a reduction in bank loans and lower interest rates during the pandemic[16] - Research and development expenses for Q1 2020 were ¥25,638,666.33, compared to ¥28,508,007.75 in Q1 2019, indicating a decrease of approximately 10.4%[37] Other Financial Metrics - Non-recurring gains and losses amounted to a total of -¥18,184,808.48 for the reporting period[9] - Other income increased by CNY 5.85 million year-on-year, mainly due to business growth and an increase in VAT deductions[16] - The company reported a credit impairment loss of CNY -9,631,198.84 for Q1 2020, compared to CNY -4,289,766.46 in the previous period[42] - The company recorded other income of CNY 11,299.27 in Q1 2020, down from CNY 2,697,643.50 in the previous period[38]

Financial Performance - The company's operating revenue for 2019 was ¥5,558,891,021.37, representing a 56.43% increase compared to ¥3,553,614,079.77 in 2018[14] - The net profit attributable to shareholders for 2019 was ¥158,555,360.03, a decrease of 26.15% from ¥214,706,425.67 in 2018[14] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥87,229,005.67, down 33.36% from ¥130,886,357.43 in 2018[14] - The basic earnings per share for 2019 was ¥0.2224, a decrease of 27.46% from ¥0.3066 in 2018[14] - The total assets at the end of 2019 were ¥4,631,372,732.10, a 1.16% increase from ¥4,578,247,491.89 at the end of 2018[14] - The net assets attributable to shareholders increased by 5.68% to ¥2,505,022,555.31 from ¥2,370,490,130.73 in 2018[14] - The company reported a non-operating income of CNY 71.33 million in 2019, which was a decrease from CNY 83.82 million in 2018, representing a decline of 15.8%[20] - The company reported a net profit of ¥158,555,400.00 for the year, reflecting its ongoing growth in the internet advertising business[59] - The company achieved operating revenue of 555,889.10 million yuan, a year-on-year increase of 56.43%[36] - The net profit attributable to the parent company was 15,855.54 million yuan, a year-on-year decrease of 26.15%[36] Cash Flow and Investments - The net cash flow from operating activities increased significantly to ¥779,433,442.62, compared to a negative cash flow of ¥39,840,639.68 in 2018, marking a 2,056.38% improvement[14] - Operating cash inflow increased by 60.35% to ¥6,029,899,963.83, while operating cash outflow rose by 38.16% to ¥5,250,466,521.21, resulting in a net cash flow from operating activities of ¥779,433,442.62[58][59] - The net increase in cash and cash equivalents was ¥319,243,254.01, a significant improvement compared to a decrease of ¥71,081,858.18 in the previous year[58][59] - Investment activity cash inflow decreased by 44.39% to ¥703,010,140.03, while cash outflow also decreased by 44.91% to ¥988,050,728.25[58][59] Business Expansion and Strategy - The company has expanded its business scope to include internet advertising and media services following the acquisition of Jiangxi Giant Network Technology Co., Ltd. in 2017[13] - The company is actively investing in 5G communication infrastructure and services, aiming to capture market share in the growing 5G sector[25] - The internet advertising business, primarily through subsidiary Giant Network Technology, is expanding its services across various social media platforms, including Tencent's WeChat and QQ[26] - The company has entered the satellite communication industry through acquisitions, positioning itself as a leader in marine communication services[24] - The company is actively developing 5G-related products and solutions, including high-speed optical transmission technology and 5G small base stations, to meet the accelerating demand for 5G infrastructure[36] - The company plans to strengthen its collaboration with Tencent in social advertising and explore partnerships with major new media platforms to enhance content and advertising capabilities[90] Risk Management - The company faces various risks including accounts receivable recovery risk and inventory increase risk, which may impact future operations[4] - The company aims to strengthen its management system to address risks associated with business expansion and new business models[91] - The company faces risks related to market competition and the need to adapt to industry trends to maintain growth[92] Shareholder and Dividend Information - The company plans to distribute a cash dividend of ¥0.5 per 10 shares, based on a total of 719,190,079 shares[4] - The cash dividend payout ratio for 2019 is 22.68% of the net profit attributable to shareholders[101] - The cash dividend for 2018 was 1.00 yuan per 10 shares, amounting to 55,355,939.80 yuan, with a capital reserve conversion of 3 shares for every 10 shares[100] Research and Development - Research and development (R&D) expenses increased by 7.31% to ¥121,908,110.49, while the R&D investment as a percentage of operating revenue decreased to 2.27% from 3.39%[54][56] - The number of R&D personnel decreased by 1.20% to 413, while the R&D personnel ratio dropped to 35.06%[56] - The company is investing 50 million in R&D for new technologies aimed at enhancing product features[195] Corporate Governance and Compliance - The company has established a sound corporate governance structure to protect shareholder and creditor rights, ensuring fair and accurate information disclosure[156] - The company has engaged a qualified accounting firm to conduct special audits, ensuring transparency and compliance with regulatory requirements[105] - The commitments made by the actual controller and shareholders are legally binding, with provisions for compensation in case of non-compliance, ensuring accountability[108] Market Outlook and Future Projections - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% based on new product launches and market expansion strategies[112] - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[114] - The company has set a performance guidance of 1.8 billion yuan for the next fiscal year, indicating a strong growth trajectory[110] Related Party Transactions - The company reported a total of ¥54,065,583.57 in restricted assets, including cash and fixed assets, due to various guarantees and pledges[68] - The company reported a total of 2,078.04 million CNY in related party transactions, with an approved limit of 5,400 million CNY[140] - The company did not engage in any asset or equity acquisition or sale transactions during the reporting period[141]