Financial Performance - The company's operating revenue for the first half of 2022 was ¥367,934,364.54, a decrease of 16.06% compared to ¥438,317,980.90 in the same period last year[19]. - Net profit attributable to shareholders increased significantly by 315.90% to ¥120,955,624.65 from ¥29,083,089.60 year-on-year[19]. - The net profit after deducting non-recurring gains and losses rose by 20.51% to ¥21,164,622.82 compared to ¥17,562,650.16 in the previous year[19]. - Basic earnings per share increased by 315.48% to ¥0.2094 from ¥0.0504 in the same period last year[19]. - The weighted average return on equity improved to 8.54%, up by 6.56 percentage points from 1.98%[19]. - The company reported a significant decline in net cash flow from operating activities, which was -¥37,145,558.62 compared to ¥671,325.54 in the previous year, a decrease of 5,633.17%[19]. - The company's revenue for the reporting period was ¥367,934,364.54, a decrease of 16.06% compared to ¥438,317,980.90 in the previous year, primarily due to the impact of the pandemic[41]. - Operating costs decreased by 18.76% to ¥296,395,241.57 from ¥364,856,250.46, reflecting the reduction in revenue[41]. - The total profit for the first half of 2022 was CNY 148,638,325.94, compared to CNY 27,579,564.42 in the first half of 2021, marking an increase of approximately 438.5%[139]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,913,539,647.92, a decrease of 2.63% from ¥1,965,152,354.36 at the end of the previous year[19]. - The total assets as of June 30, 2022, amounted to CNY 1,913,539,647.92, compared to CNY 1,965,152,354.36 at the beginning of the year, reflecting a decrease of 2.6%[132]. - The total liabilities decreased to CNY 387,735,636.76 from CNY 560,587,861.01, representing a reduction of 30.8%[132]. - The total equity attributable to shareholders of the parent company increased to CNY 1,476,492,896.68 from CNY 1,356,556,272.29, marking an increase of 8.9%[132]. Cash Flow - The company reported a net cash inflow from investment activities of ¥10,795,363.85, a 127.40% increase from a net outflow of ¥39,392,163.14 in the previous year[41]. - The net cash flow from operating activities for the first half of 2022 was -37,145,558.62 CNY, compared to 671,325.54 CNY in the same period of 2021, indicating a significant decline[145]. - The total cash inflow from financing activities was 27,406,133.57 CNY in the first half of 2022, compared to 6,976,653.18 CNY in the previous year[146]. Investments and R&D - Research and development expenses decreased by 34.69% to ¥15,351,745.99 from ¥23,505,594.45, primarily due to the disposal of part of the smart hardware segment last year[41]. - The company reported a significant increase in investment, with total investments of CNY 29,023,742.56, a 526.69% increase compared to the same period last year[56]. - The company has allocated 2 million for new technology research and development initiatives in the upcoming fiscal year[151]. Market and Business Strategy - The smart hardware business remains a cornerstone, focusing on high-end industrial equipment and products such as semiconductor packaging testing equipment and LED smart lighting[28]. - The company aims to extend its industrial chain in the semiconductor packaging testing and LED smart lighting sectors, seeking opportunities in promising application scenarios[33]. - The company is exploring new marketing models while maintaining its core advantages, emphasizing high-quality creative content and emerging digital communication channels[35]. - The company plans to enhance its market expansion strategy, focusing on new product development and technological advancements[151]. Risks and Challenges - The company faces risks including the impact of the COVID-19 pandemic, investment project valuation changes, and trade tensions between China and the U.S.[4]. - The company faces risks from the ongoing COVID-19 pandemic, which has severely impacted global supply chains and export business[67]. - The company is actively expanding into domestic and non-U.S. international markets to mitigate risks from U.S.-China trade tensions[68]. Corporate Governance and Compliance - The company emphasizes sustainable development and effective expansion while ensuring shareholder rights and information transparency[80]. - The company has implemented various internal control measures to ensure compliance and safeguard assets[80]. - The company has established a regulatory mechanism for foreign exchange trading to ensure compliance and protect shareholder interests[61]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 46,423[116]. - The largest shareholder, Chen Yamei, holds 31.73% of the shares, totaling 183,264,899 shares, with some shares pledged[116]. - The company has not distributed cash dividends or bonus shares for the half-year period[75]. Legal and Litigation Matters - There are no overdue commitments from actual controllers, shareholders, or related parties as of the reporting period[84]. - The company reported a total litigation amount of 1,525.6 million CNY, with partial provisions made for liabilities[91]. - The company has no significant litigation matters that have reached the execution stage, indicating a relatively low impact on operations[91]. Financial Reporting and Auditing - The semi-annual financial report has not been audited[87]. - The financial statements were prepared based on the going concern assumption, with no identified issues affecting the company's ability to continue operations for the next 12 months[190]. - The company adheres to the Chinese Accounting Standards, ensuring that the financial statements accurately reflect its financial position and operating results[192].

Business Model and Strategy - The company reported a significant shift in its main business model from EMS to a focus on self-developed products and ODM solutions, with over 50% of revenue now coming from smart hardware products[20]. - The company has expanded its product line from LED lighting to include smart locks, smart headphones, and other smart home devices[20]. - The company has entered the digital marketing sector through mergers and acquisitions, which has become a significant part of its business[20]. - The company emphasizes the integration of technology and data-driven elements into its marketing strategies, transitioning towards smart marketing[20]. - The company aims to become a solution provider in the smart hardware sector, with a focus on developing products with independent intellectual property rights[42]. - The company is actively exploring domestic and non-U.S. international markets to mitigate risks from U.S.-China trade tensions and is preparing to establish a subsidiary in Malaysia[97]. - The company plans to increase R&D investment in smart home and other new business areas, leveraging its existing strengths in hardware product planning and manufacturing[92]. - The company plans to focus on the smart hardware sector, leveraging national policies supporting 5G, AI, and IoT, and aims to extend its product range and strategic layout in this area[94]. Financial Performance - The company's operating revenue for 2021 was ¥921,369,298.86, representing a 17.57% increase compared to ¥783,665,952.91 in 2020[22]. - The net profit attributable to shareholders for 2021 was -¥95,330,409.22, a decrease of 439.13% from ¥28,110,554.94 in 2020[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥125,561,222.41, a significant decline of 3,819.99% from -¥3,203,096.94 in 2020[22]. - The net cash flow from operating activities decreased by 58.00% to ¥46,597,959.13 in 2021 from ¥110,946,073.13 in 2020[22]. - The total assets at the end of 2021 were ¥1,965,152,354.36, a 2.62% increase from ¥1,914,906,715.23 at the end of 2020[22]. - The net assets attributable to shareholders decreased by 6.54% to ¥1,356,556,272.29 at the end of 2021 from ¥1,451,407,424.18 at the end of 2020[22]. - The company achieved a total revenue of 921.37 million yuan, representing a year-on-year growth of 17.57%[44]. - The smart hardware business generated revenue of 794.87 million yuan, with a significant year-on-year increase of 31.12%[44]. - The total operating revenue for 2021 was ¥921,369,298.86, representing a year-on-year increase of 17.57% compared to ¥783,665,952.91 in 2020[49]. - The industrial segment contributed ¥794,871,110.22, accounting for 86.27% of total revenue, with a year-on-year growth of 31.12%[49]. - The smart hardware manufacturing segment saw a significant increase in revenue, reaching ¥282,868,127.24, up 110.55% from the previous year[49]. - The internet segment experienced a decline in revenue, totaling ¥112,621,062.57, down 22.81% compared to ¥145,902,921.32 in 2020[49]. Research and Development - The company’s R&D investment increased by 21.4% year-on-year, enhancing product competitiveness in the smart hardware sector[45]. - The number of R&D personnel increased by 4.78% to 219, with R&D personnel accounting for 25.73% of the total workforce[64]. - The company achieved a 21.40% increase in R&D investment as a percentage of operating revenue, rising to 5.64%[64]. - Research and development expenses increased by 30%, reflecting the company's commitment to innovation and new technology[160]. Risks and Challenges - The main risks identified include operational risks due to the global COVID-19 pandemic, investment project fair value fluctuation risks, and risks related to U.S.-China trade tensions[5]. - The company faces risks from the ongoing COVID-19 pandemic, which has significantly impacted global logistics and may affect its export business, prompting it to adjust strategies to enhance market competitiveness[96]. - The company acknowledges the potential for significant losses if the fair value of its investment projects declines and is taking steps to conduct thorough due diligence[96]. Corporate Governance - The company maintained independence from its controlling shareholder in terms of business, personnel, assets, and finances, with no financial support provided to the controlling shareholder[105]. - The company has established a complete and independent production and operation system, ensuring no reliance on shareholders or related parties[106]. - The company has a fully independent financial department with its own accounting system and bank accounts, ensuring no shared financial resources with shareholders[107]. - The company has implemented a transparent performance evaluation and incentive mechanism for its directors and senior management[104]. - The company has a structured remuneration decision process based on the board and supervisory committee's recommendations[120]. - The company has committed to ensuring that its senior management does not hold positions in other enterprises controlled by them, maintaining independence in operations[154]. Social Responsibility and Sustainability - The company is committed to sustainable development and has implemented various energy-saving and environmental protection measures in its operations[148]. - The company employed 38 individuals from impoverished areas as part of its social responsibility initiatives, contributing to poverty alleviation efforts[151]. - The company has actively engaged in community support, including annual donations to Jiangnan University for student scholarships[149]. Market Outlook and Future Plans - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[160]. - New product launches are expected to contribute an additional 200 million RMB in revenue, with a focus on innovative technology solutions[161]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share within the next two years[160]. - The company plans to implement a new marketing strategy aimed at increasing brand awareness, with a budget allocation of 50 million RMB[161]. Legal and Compliance - The company is involved in several ongoing litigation cases, including a dispute with PERCEPTION DIGITAL LIMITED involving an amount of USD 292.31 million[181]. - The company has a claim against Xiamen Donglin Electronics Co., Ltd. for CNY 1,115.42 million, which is currently in bankruptcy proceedings[181]. - The company is pursuing a claim against Guangzhou Shunfei Information Technology Co., Ltd. for CNY 3,151.68 million related to equity repurchase rights[182]. - The company has reported a total of CNY 43,098,177.14 in cumulative litigation and arbitration cases[182].

深圳市实益达科技股份有限公司 2022 年第一季度报告全文 证券代码：002137 证券简称：实益达 公告编号：2022-011 深圳市实益达科技股份有限公司 2022 年第一季度报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没 有虚假记载、误导性陈述或重大遗漏。 重要内容提示: 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、准确、完整，不 存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声明：保证季度 报告中财务信息的真实、准确、完整。 3.第一季度报告是否经过审计 □ 是 √ 否 一、主要财务数据 (一)主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业收入（元） | 206,186,974.30 | 206,360,983.71 | -0.08% | | 归属于上市公司股东的净利润（元） | 17,355,904.84 | 13,0 ...

Financial Performance - The company's revenue for Q3 2021 was ¥249,888,013.47, representing a year-on-year increase of 10.96%[3] - Net profit attributable to shareholders for the same period was ¥16,761,645.72, a significant increase of 171.14% compared to the previous year[3] - The net profit after deducting non-recurring gains and losses reached ¥11,562,447.39, marking a 570.00% increase year-on-year[3] - Total operating revenue for the third quarter was CNY 688,205,994.37, a decrease of 5.5% compared to CNY 730,170,281.81 in the same period last year[20] - Net profit for the period was CNY 42,836,090.61, a decline of 18.6% from CNY 52,635,309.27 in the previous year[21] - The company reported a total comprehensive income of CNY 42,916,946.10, compared to CNY 53,622,670.23 in the previous year, reflecting a decrease of 20.1%[22] Assets and Liabilities - Total assets at the end of the reporting period amounted to ¥2,003,266,342.31, reflecting a 4.61% increase from the end of the previous year[3] - The company's total assets as of September 30, 2021, amount to CNY 2,003,266,342.31, an increase from CNY 1,914,906,715.23 at the end of 2020[17] - Current assets total CNY 1,011,610,893.56, compared to CNY 941,318,205.15 at the end of 2020, reflecting a growth of approximately 7.45%[16] - Total liabilities rose to CNY 443,419,800.29, an increase of 11.5% from CNY 397,653,453.99 in the previous year[21] - The total liabilities amounted to ¥1,000,000,000.00, reflecting a stable financial position[29] - Total liabilities amounted to CNY 397,653,453.99, with current liabilities at CNY 349,866,092.28[30] Equity - The total equity attributable to shareholders increased by 3.20% to ¥1,497,882,133.23 compared to the end of the previous year[4] - The total equity attributable to shareholders increased to CNY 1,497,882,133.23, up 3.0% from CNY 1,451,407,424.18 year-over-year[21] - Total equity reached CNY 1,517,253,261.24, with attributable equity to shareholders at CNY 1,451,407,424.18[30] Cash Flow - The company's cash flow from operating activities showed a net outflow of ¥23,057,792.36, a decline of 150.47% compared to the same period last year[9] - The net cash flow from operating activities was -¥23,057,792.36, a decrease from ¥45,690,514.23 in the previous year[25] - Cash received from sales of goods and services was CNY 653,192,396.86, down 9.7% from CNY 722,949,426.52 in the same period last year[24] - The total cash inflow from investment activities was ¥1,756,699,076.00, down from ¥2,887,100,531.02 year-over-year[25] - The net cash flow from financing activities was ¥28,567,770.28, compared to -¥52,076,759.94 in the same period last year[26] - The total cash and cash equivalents at the end of the period were ¥67,451,515.88, a decrease from ¥92,304,401.11 at the end of the previous year[26] Research and Development - Research and development expenses increased by 36.62% to ¥35,914,577.91, driven by higher investments in the smart hardware sector[9] - Research and development expenses increased to CNY 35,914,577.91, up 36.6% from CNY 26,287,119.43 year-over-year, indicating a focus on innovation[21] Shareholder Information - Total number of common shareholders at the end of the reporting period is 44,355[11] - The largest shareholder, Chen Yamei, holds 31.73% of shares, totaling 183,264,899 shares, with 137,448,674 shares pledged[11] Other Information - The company has announced plans for market expansion and new product development, although specific details were not disclosed in the report[13] - The company adjusted its financial statements to comply with new leasing standards, impacting the balance sheet[27] - The company adopted the new leasing standards effective January 1, 2021, which will not impact prior financial results[31] - The third-quarter report was not audited, indicating preliminary financial data[32]

Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the first half of 2021, representing a year-on-year growth of 25%[17]. - The company's operating revenue for the first half of 2021 was ¥438,317,980.90, a decrease of 13.20% compared to the same period last year[21]. - The net profit attributable to shareholders was ¥29,083,089.60, down 32.86% year-on-year[21]. - The net profit after deducting non-recurring gains and losses was ¥17,562,650.16, a decline of 40.99% compared to the previous year[21]. - The net cash flow from operating activities was ¥671,325.54, representing an 85.96% decrease from the same period last year[21]. - The total profit for the first half of 2021 was CNY 27,579,564.42, compared to CNY 57,268,676.70 in the previous year, representing a decline of about 51.8%[152]. - The total comprehensive income for the first half of 2021 was CNY 26,341,593.18, down from CNY 47,674,665.94 in the same period of 2020, indicating a decline of about 44.8%[153]. - The company reported a net loss of CNY 82.11 million for the first half of 2021, an improvement from a net loss of CNY 111.19 million in the same period of 2020[145]. User Growth and Market Expansion - User data showed an increase in active users, reaching 3 million by the end of June 2021, up from 2.4 million in the same period last year, indicating a growth rate of approximately 25%[17]. - The company is expanding its market presence in Southeast Asia, with plans to enter three new countries by Q4 2021, aiming for a market share of 10% in these regions within the next two years[17]. - The company is actively expanding into new business areas such as smart lighting, TWS headphones, and smart wearables, although there are risks associated with market conditions and new business implementation[69]. - The company is focusing on market expansion and new product development as part of its growth strategy[120]. Research and Development - Research and development expenses increased by 15% year-on-year, totaling 150 million RMB, reflecting the company's commitment to innovation and technology advancement[17]. - R&D investment increased by 49.52% compared to the same period last year, reflecting the company's commitment to product development[45]. - The company continues to focus on R&D and innovation in smart hardware, expanding its product categories to include financial terminal products and base station power supplies[34]. - The company has committed to enhancing its research and development efforts to improve product competitiveness and drive revenue growth in its hardware segment[67]. Strategic Initiatives - The company has set a revenue target of 3 billion RMB for the full year 2021, which would require a 20% increase in the second half of the year compared to the first half[17]. - New product launches included two innovative smart devices, which are expected to contribute an additional 200 million RMB in revenue by the end of the year[17]. - The company is exploring strategic acquisitions to enhance its technology capabilities, with a budget of up to 500 million RMB allocated for potential targets in the next 12 months[17]. - The company aims to improve its gross margin from 30% to 35% by optimizing production processes and reducing costs through automation[17]. Financial Management and Investments - The company announced no plans to distribute cash dividends or issue bonus shares for the current fiscal year, focusing instead on reinvestment for growth[6]. - The company has diversified its cash management strategy across multiple banks, including Shanghai Bank and Industrial Bank[111]. - The company has maintained a focus on low-risk financial products, ensuring capital preservation while seeking reasonable returns[111]. - The company has invested in various financial products, including structured deposits and wealth management products, with expected yields ranging from 1.35% to 3.35%[111]. Risks and Challenges - The management highlighted potential risks, including the ongoing impact of the COVID-19 pandemic, which could affect operational performance and market conditions[5]. - The company is facing risks related to the global COVID-19 pandemic, which could impact export business and downstream industry demand[69]. - The company emphasizes the importance of thorough due diligence and post-investment management to mitigate risks associated with investment project fair value fluctuations[69]. Legal and Compliance - The company has faced litigation and arbitration cases, which may affect its operational stability[117]. - The company has engaged lawyers to actively respond to ongoing litigation cases to protect its legal rights[70]. - The company reported a total litigation amount of approximately CNY 28.30 million, with some cases currently in the enforcement process and others pending court hearings[93]. Shareholder and Equity Information - The company has not distributed cash dividends or bonus shares for the half-year period[77]. - The total number of shares before the change was 577,504,800, with 34.30% being restricted shares and 65.70% being unrestricted shares[122]. - The largest shareholder, Chen Yamei, had her restricted shares reduced by 11,118,750, leaving her with 137,448,674 shares[126]. - The company confirmed that there were no changes in the voting rights or relationships among the major shareholders during the reporting period[128].

Financial Performance - The company's operating revenue for 2020 was CNY 783,665,952.91, representing a 2.70% increase from CNY 763,029,246.12 in 2019[19]. - The net profit attributable to shareholders for 2020 was CNY 28,110,554.94, a decrease of 69.99% compared to CNY 87,052,838.24 in 2019[19]. - The cash flow from operating activities for 2020 was CNY 110,946,073.13, showing a significant increase of 165.21% from CNY 41,763,756.44 in 2019[19]. - The basic earnings per share for 2020 was CNY 0.0487, down 69.98% from CNY 0.1507 in 2019[19]. - Total assets at the end of 2020 were CNY 1,914,906,715.23, an increase of 1.39% from CNY 1,823,724,951.57 at the end of 2019[19]. - The net assets attributable to shareholders at the end of 2020 were CNY 1,451,407,424.18, a decrease of 2.59% from CNY 1,427,516,390.09 at the end of 2019[19]. - The company achieved a total revenue of 783.67 million yuan, representing a year-on-year growth of 2.70%[42]. - The net profit attributable to shareholders, excluding non-recurring gains and losses, was -3.20 million yuan, an increase of 85.43% year-on-year[42]. - The smart hardware segment generated revenue of 606.21 million yuan, reflecting a year-on-year growth of 20.73%[42]. - The company reported a total revenue of 1.5 billion RMB for the year 2020, reflecting a year-on-year growth of 15%[110]. Investment and R&D - The company plans not to distribute cash dividends or issue bonus shares for the year[5]. - The company has made strategic investments in technology and data-driven marketing to adapt to changes in the marketing industry[17]. - R&D investment increased by 28.13% year-on-year, ensuring product capability and improving overall gross margin[43]. - The company is investing 100 million RMB in R&D for new technologies aimed at enhancing service efficiency[110]. - The company plans to increase R&D investment in smart hardware, focusing on smart home and wearable devices to capture growth opportunities in the 5G era[92]. - The company has filed a total of 146 patent applications, with 133 granted, indicating strong innovation capabilities in the smart hardware sector[43]. - The company has established a modern R&D and production base across regions, enhancing its competitive edge in the smart hardware market[39]. Market Expansion and Strategy - The company is focused on expanding its market presence and developing new technologies, although specific figures and timelines were not disclosed in the provided content[4]. - The company is closely monitoring the implementation and popularization of 5G commercial scenarios, which are expected to create new opportunities for its digital marketing business[35]. - The company is actively exploring new business opportunities in TWS headphones and smart wearable devices to enhance revenue growth[93]. - The company aims to optimize its existing business in smart marketing and provide one-stop digital transformation services for clients[94]. - Market expansion plans include entering two new provinces in China by the end of 2021, targeting a 5% market share in these regions[110]. - The company is exploring potential acquisitions to enhance its market position, with a budget of 300 million RMB allocated for this purpose[110]. - The company has ongoing commitments regarding related party transactions, ensuring fairness and compliance with legal requirements[108]. Risk Management - The company reported a significant risk from the global COVID-19 pandemic, which may impact operational performance and investment valuation uncertainties[4]. - The company emphasizes the importance of monitoring investment risks related to market expansion and new business ventures[4]. - The company is committed to risk management in new business expansions to mitigate potential adverse market changes[96]. - The company faces risks from US-China trade tensions and foreign exchange losses, prompting efforts to expand domestic and non-US international markets[95]. Corporate Governance and Compliance - The company’s financial report is guaranteed to be true, accurate, and complete by its management team, ensuring accountability[3]. - The company has established a complete and independent organizational structure for corporate governance[112]. - The company has committed to maintaining independence in personnel, assets, business, and financial operations post-transaction[111]. - The company has no significant changes in accounting policies for derivative investments compared to the previous reporting period[86]. - The company has not reported any violations of commitments related to asset independence and financial independence as of the reporting period[108]. Social Responsibility and Sustainability - The management emphasized a commitment to sustainable practices, aiming for a 30% reduction in carbon emissions by 2025[110]. - The company emphasizes environmental protection and sustainable development, implementing energy-saving measures and promoting green office practices[152]. - The company has been donating annually to Jiangnan University since 2017 to support students[148]. - The company aims to harmonize economic and social benefits through strengthened social responsibility practices[148]. Shareholder Information - The total number of shareholders at the end of the reporting period was 49,776, with no preferred shares having voting rights[171]. - The largest shareholder, Chen Yamei, held 31.73% of the shares, totaling 183,264,899 shares, with a decrease of 14,825,000 shares during the reporting period[171]. - The company has not undergone any changes in its controlling shareholder during the reporting period[174]. - The actual controllers, Chen Yamei and Qiao Xin, have maintained their status without any changes during the reporting period[175]. Investor Relations - The company has a dedicated investor relations team to handle inquiries and maintain transparency with stakeholders[15]. - The company conducted multiple investor communications and research activities throughout 2020, including a significant conference call on February 12, 2020, discussing the impact of the pandemic on business operations[99]. - The company has maintained a proactive approach in communicating its business outlook and performance guidance to investors throughout the year[99][100].

Financial Performance - The company's operating revenue for Q1 2021 was ¥206,360,983.71, a decrease of 2.09% compared to ¥210,765,718.90 in the same period last year[8]. - Net profit attributable to shareholders was ¥13,031,328.70, down 39.11% from ¥21,399,914.93 year-on-year[8]. - The net profit after deducting non-recurring gains and losses was ¥9,150,337.00, a decline of 28.01% compared to ¥12,710,387.15 in the previous year[8]. - Basic and diluted earnings per share were both ¥0.0226, representing a decrease of 39.08% from ¥0.0371[8]. - The weighted average return on equity was 0.89%, down from 1.50% in the previous year, a decline of 0.61%[8]. - The total profit decreased by 52.55% to ¥13,243,502.83, attributed to increased R&D expenses, credit impairment losses, and reduced exchange gains[16]. - Net profit fell by 46.97% to ¥12,016,135.06, mainly due to increased R&D investment and credit impairment losses[17]. - The company reported a net loss of CNY 98,163,363.06, an improvement from a loss of CNY 111,194,691.76 in the previous period[45]. - The company experienced a decrease in comprehensive income to CNY 11,823,191.23 from CNY 22,493,318.64 year-over-year[53]. Cash Flow and Liquidity - The net cash flow from operating activities was ¥5,479,016.50, a significant drop of 85.58% from ¥37,984,722.75 in the same period last year[8]. - Cash flow from operating activities generated a net amount of CNY 5,479,016.50, significantly lower than CNY 37,984,722.75 in the previous year, reflecting a decline of approximately 85.6%[60]. - The total cash inflow from investment activities was CNY 640,113,915.59, compared to CNY 1,102,477,030.14 in the prior year, showing a decrease of about 41.9%[60]. - The cash inflow from sales of goods and services was CNY 200,963,258.59, compared to CNY 249,870,843.69 in the previous year, reflecting a decrease of about 19.5%[59]. - The company reported cash and cash equivalents at the end of Q1 2021 amounting to CNY 116,008,246.79, a slight increase from CNY 112,125,536.49 at the end of the previous year[61]. - The company has shown a strong commitment to maintaining liquidity through various deposit strategies[22]. Investment Activities - The company reported a total investment amount in derivatives of 27,016.4 million, with a net asset value of 21,758.0 million at the end of the reporting period, reflecting a decrease of 14.86%[31]. - The company engaged in forward foreign exchange contracts with a total amount of 18,769.2 million, resulting in a loss of 144.4 million during the reporting period[32]. - The company has made strategic investments in various financial instruments to enhance liquidity and yield[21]. - The company has engaged in various financial products with different banks, including structured deposits and wealth management products, totaling over 200 million[21]. - The company has invested a total of ¥100,000,000 in various financial products with expected returns ranging from 2.46% to 3.50%[19]. Research and Development - Research and development expenses increased by 75.60% to ¥11,123,674.64, reflecting the company's commitment to enhancing R&D investment[16]. - The company is committed to investing more resources in the smart hardware field to enhance market understanding of its main business[26]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 47,447[12]. - The company has implemented a repurchase plan but has not made any progress in share buybacks during the reporting period[28]. Regulatory and Compliance - The company has received a notice from the China Securities Regulatory Commission regarding the administrative license application[28]. - The company has no outstanding commitments from actual controllers, shareholders, or related parties during the reporting period[28]. - The company has no violations regarding external guarantees during the reporting period, reflecting sound financial practices[35]. Future Outlook - The company plans to change its name to "Shenzhen Sea Star Technology Co., Ltd" and its stock abbreviation to "Sea Star" to better reflect its core business[27]. - The company has engaged in discussions regarding future growth points and strategic planning with analysts, indicating a focus on performance improvement[37].

[Important Notice](index=2&type=section&id=Section%20I.%20Important%20Notice) This section emphasizes the company's commitment to ensuring the authenticity, accuracy, and completeness of the quarterly report [Statement on Report Authenticity](index=2&type=section&id=Statement%20on%20Report%20Authenticity) The company's board of directors, supervisory board, and senior management ensure the authenticity, accuracy, and completeness of this quarterly report, assuming corresponding legal responsibilities, with all directors attending the review meeting - Company management guarantees no false records, misleading statements, or material omissions in the report content[4](index=4&type=chunk) - The company's head, chief accountant, and head of accounting department all declare the authenticity, accuracy, and completeness of the financial statements[5](index=5&type=chunk) [Company Profile](index=3&type=section&id=Section%20II.%20Company%20Profile) This section provides an overview of the company's key financial performance and shareholder structure, including significant changes in profitability and major shareholder holdings [Key Accounting Data and Financial Indicators](index=3&type=section&id=I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) As of Q3 2020, the company's total assets remained largely consistent with year-end, while year-to-date operating revenue grew by 33.74%, but net profit attributable to shareholders significantly decreased by 63.60% due to high non-recurring gains in the prior year, with non-recurring adjusted net profit increasing by 909.05% Key Financial Performance Indicators | Indicator | Year-to-Date (RMB) | Prior Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 730,170,281.81 | 545,960,072.01 | 33.74% | | Net Profit Attributable to Listed Company Shareholders (RMB) | 49,500,827.68 | 135,982,611.38 | -63.60% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-Recurring Items) (RMB) | 27,301,579.34 | 2,705,659.72 | 909.05% | | Net Cash Flow from Operating Activities (RMB) | 45,690,514.23 | 39,190,053.69 | 16.59% | | Basic Earnings Per Share (RMB/share) | 0.0857 | 0.2355 | -63.61% | Key Financial Position Indicators | Indicator | Current Period-End (RMB) | Prior Year-End (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Assets (RMB) | 1,890,138,435.95 | 1,888,677,157.84 | 0.08% | | Net Assets Attributable to Listed Company Shareholders (RMB) | 1,471,023,045.73 | 1,490,027,300.38 | -1.28% | - Year-to-date non-recurring gains and losses totaled **22,199,248.34 RMB**, primarily from wealth management income, fair value changes of financial assets, and government subsidies[10](index=10&type=chunk) [Shareholder Information](index=4&type=section&id=II.%20Total%20Shareholders%20and%20Top%20Ten%20Shareholders'%20Holdings%20at%20Period-End) As of the reporting period end, the company had 51,757 common shareholders, with the top two shareholders, Ms. Chen Yamei and Mr. Qiao Xin, a married couple, holding over 43% combined, with some shares pledged - At the end of the reporting period, the company had **51,757** common shareholders[12](index=12&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Shareholding Ratio | Shares Held | Pledge or Freeze Status | | :--- | :--- | :--- | :--- | | 陈亚妹 | 31.73% | 183,264,899 | Pledged 94,300,000 | | 乔昕 | 11.42% | 65,927,032 | Pledged 43,000,000 | - Shareholders Mr. Qiao Xin and Ms. Chen Yamei are a married couple, constituting parties acting in concert[13](index=13&type=chunk) [Significant Events](index=6&type=section&id=Section%20III.%20Significant%20Events) This section details significant financial changes, ongoing cash management strategies, and the progress of the company's non-public stock offering [Analysis of Changes in Financial Data and Indicators](index=6&type=section&id=I.%20Changes%20and%20Reasons%20for%20Key%20Financial%20Data%20and%20Indicators%20During%20the%20Reporting%20Period) During the reporting period, several financial indicators showed significant changes, with operating revenue increasing by 33.74% driven by smart hardware and intelligent marketing, while operating profit and net profit attributable to shareholders decreased by 63.79% and 63.60% respectively, due to increased financial expenses from exchange rate fluctuations and a high base of fair value changes and investment income in the prior year Analysis of Key Financial Changes | Statement Item | Change Rate | Reason for Change | | :--- | :--- | :--- | | Total Operating Revenue | 33.74% | Increased orders in smart hardware and growth in performance marketing business within intelligent marketing segment | | Operating Cost | 38.12% | Increased proportionally with revenue growth | | Financial Expenses | 265.84% | Increased exchange losses due to exchange rate fluctuations in the smart hardware segment | | Investment Income | -74.98% | Higher investment income from investee companies in the prior period | | Fair Value Change Gains | -94.41% | Higher fair value change gains from investee companies in the prior period | | Net Profit Attributable to Parent Company Owners | -63.60% | Operating profit increased, but non-recurring gains significantly decreased compared to the prior period | | Other Current Assets | 965.63% | Higher wealth management investments in the current period | [Progress of Significant Events](index=7&type=section&id=II.%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Events) During the reporting period, the company continued to use idle self-owned funds for cash management, extending the resolution's validity until January 2022, and is progressing with a non-public stock offering to raise up to **459.06 million RMB**, pending CSRC approval - The company's board approved extending the resolution to use up to **1 billion RMB** of idle self-owned funds for cash management until January 24, 2022[18](index=18&type=chunk)[19](index=19&type=chunk) - The company plans a non-public stock offering to raise a total of up to **459.06 million RMB** for company development, which is currently under review by the China Securities Regulatory Commission (CSRC)[25](index=25&type=chunk) - The company disclosed several other significant matters, including related party transactions, release and re-pledge of controlling shareholder's shares, and termination of participation in establishing an industry investment fund[26](index=26&type=chunk) [Wealth Management](index=12&type=section&id=VIII.%20Wealth%20Management) During the reporting period, the company engaged in wealth management totaling approximately **692 million RMB** using self-owned funds, primarily investing in bank and brokerage wealth management products, with an outstanding balance of approximately **415 million RMB** at period-end and no overdue unrecovered amounts Wealth Management Details | Type | Source of Funds | Wealth Management Amount (RMB) | Outstanding Balance (RMB) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Self-owned Funds | 550,677,000.00 | 274,011,000.00 | | Brokerage Wealth Management Products | Self-owned Funds | 141,300,000.00 | 141,300,000.00 | | **Total** | | **691,977,000.00** | **415,311,000.00** | [Investor Relations Activities](index=13&type=section&id=XI.%20Record%20of%20Investor%20Relations%20Activities%20During%20the%20Reporting%20Period) In Q3 2020, the company actively engaged with investors, hosting multiple institutional investors through on-site visits to discuss semi-annual performance and development - From July to September 2020, the company hosted multiple institutional investors, including Dongyuan Investment, Hengjian Holdings, Guoxin Securities, and Northeast Securities, for on-site due diligence visits[33](index=33&type=chunk)[34](index=34&type=chunk) [Financial Statements](index=15&type=section&id=Section%20IV.%20Financial%20Statements) This section presents the company's consolidated financial statements, including the balance sheet, income statement, and cash flow statement, along with notes on accounting policy adjustments [Consolidated Balance Sheet](index=15&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of September 30, 2020, the company's total assets were **1.89 billion RMB**, largely consistent with the year-start, with total liabilities at **355 million RMB**, a debt-to-asset ratio of approximately **18.78%**, and equity attributable to parent company owners at **1.471 billion RMB**, a **1.28%** decrease from year-start Consolidated Balance Sheet Summary | Item | 2020年9月30日 (RMB) | 2019年12月31日 (RMB) | | :--- | :--- | :--- | | **Total Assets** | **1,890,138,435.95** | **1,888,677,157.84** | | Total Current Assets | 927,019,510.92 | 952,376,268.36 | | Total Non-Current Assets | 963,118,925.03 | 936,300,889.48 | | **Total Liabilities** | **354,964,764.98** | **347,984,499.93** | | Total Current Liabilities | 313,044,847.29 | 306,141,454.47 | | **Total Owner's Equity** | **1,535,173,670.97** | **1,540,692,657.91** | | Total Owner's Equity Attributable to Parent Company | 1,471,023,045.73 | 1,490,027,300.38 | [Consolidated Income Statement (Year-to-Date)](index=25&type=section&id=5.%20Consolidated%20Income%20Statement%20Year-to-Date) In the first three quarters of 2020, the company achieved total operating revenue of **730 million RMB**, a **33.74%** increase year-over-year, but operating profit decreased by **63.79%** to **62.06 million RMB** and net profit attributable to parent company owners decreased by **63.60%** to **49.50 million RMB**, primarily due to significant reductions in investment income and fair value change gains Consolidated Income Statement Summary | Item | Current Period (RMB) | Prior Period (RMB) | | :--- | :--- | :--- | | **I. Total Operating Revenue** | **730,170,281.81** | **545,960,072.01** | | II. Total Operating Costs | 691,917,637.46 | 523,480,279.14 | | Investment Income | 14,977,993.85 | 59,875,367.26 | | Fair Value Change Gains | 4,695,185.89 | 84,003,779.10 | | **III. Operating Profit** | **62,060,145.04** | **171,407,891.96** | | **IV. Total Profit** | **61,772,902.97** | **181,109,450.38** | | **V. Net Profit** | **52,635,309.27** | **142,078,263.41** | | Net Profit Attributable to Parent Company Owners | 49,500,827.68 | 135,982,611.38 | [Consolidated Cash Flow Statement (Year-to-Date)](index=30&type=section&id=7.%20Consolidated%20Cash%20Flow%20Statement%20Year-to-Date) In the first three quarters of 2020, net cash flow from operating activities was **45.69 million RMB**, up **16.59%**, indicating healthy core business cash flow; net cash flow from investing activities turned positive with a **6.14 million RMB** inflow due to reduced wealth management payments; and net cash outflow from financing activities was **52.08 million RMB**, mainly due to increased bank acceptance bill deposits, with cash and cash equivalents at period-end totaling **92.30 million RMB** Consolidated Cash Flow Statement Summary | Item | Current Period (RMB) | Prior Period (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 45,690,514.23 | 39,190,053.69 | | Net Cash Flow from Investing Activities | 6,143,939.65 | -45,219,760.70 | | Net Cash Flow from Financing Activities | -52,076,759.94 | 24,355,660.20 | | Net Increase in Cash and Cash Equivalents | -2,962,322.49 | 19,297,776.14 | | **Cash and Cash Equivalents at Period-End** | **92,304,401.11** | **88,292,525.83** | [Notes on Financial Statement Adjustments](index=33&type=section&id=II.%20Explanation%20of%20Financial%20Statement%20Adjustments) Effective January 1, 2020, the company adopted new revenue recognition standards, retrospectively adjusting financial statement items, primarily reclassifying 'Advances from Customers' to 'Contract Liabilities' on the opening balance sheet, with no impact on total owner's equity - The company adopted new revenue recognition standards effective January 1, 2020, and made corresponding changes to its accounting policies[73](index=73&type=chunk) - The main adjustment was reclassifying **30,383,485.93 RMB** of 'Advances from Customers' to 'Contract Liabilities' in the opening balance sheet as of January 1, 2020[72](index=72&type=chunk) [Audit Report](index=39&type=section&id=III.%20Audit%20Report) This quarterly report is unaudited - The company's Q3 2020 report is unaudited[78](index=78&type=chunk)

Financial Performance - The company's operating revenue for the reporting period was ¥504,962,852.39, representing a 41.77% increase compared to ¥356,187,416.90 in the same period last year[18]. - The net profit attributable to shareholders of the listed company decreased by 61.65% to ¥43,319,027.74 from ¥112,952,320.26 in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses surged by 2,062.07% to ¥29,761,849.83, compared to ¥1,376,541.91 in the same period last year[18]. - The net cash flow from operating activities was ¥4,782,065.36, down 47.65% from ¥9,134,722.01 in the previous year[18]. - Basic earnings per share decreased by 61.66% to ¥0.0750 from ¥0.1956 in the same period last year[18]. - The overall net profit decreased by 61.65% due to a significant decline in fair value changes and investment income compared to the previous year[33]. - The company reported a net profit attributable to the parent company of ¥104,316,578.64, an improvement from a loss of ¥147,635,606.38 in the previous year[151]. - The net profit for the first half of 2020 was CNY 47,150,782.28, down 59.0% from CNY 115,265,090.85 in the first half of 2019[155]. - The total profit for the first half of 2020 was CNY 57,268,676.70, a decrease of 62.3% compared to CNY 151,533,421.29 in the same period of 2019[155]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,887,598,480.83, a 3.50% increase from ¥1,823,724,951.57 at the end of the previous year[18]. - The company's total assets at the end of the reporting period reached 9,085.62 million yuan, an increase from the previous period[172]. - The total liabilities of the company were CNY 357,208,663.08, compared to CNY 345,543,203.95 at the end of 2019, showing an increase of about 3.8%[147]. - The company's total liabilities at the end of the current period are CNY 953,899,000[178]. - The company's equity remained stable at CNY 577,504,854.00, unchanged from the previous period[147]. Market and Business Strategy - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company is focusing on research and innovation in smart hardware, having established a strong R&D team and technical capabilities in smart lighting and locks[30]. - The company has a strong focus on expanding its market presence in the smart hardware sector, leveraging the opportunities presented by the 5G and IoT era[30]. - The company plans to continue expanding its business in TWS headphones and smart wearables, despite potential risks in market conditions and new business development[78]. - The company aims to leverage advancements in 5G technology and digital marketing to capture new opportunities in the evolving market landscape[46]. - The company plans to raise up to 600 million yuan through a non-public stock issuance, with a maximum of 66.66 million shares to be issued[116]. Research and Development - R&D investment in the smart hardware segment increased by 19.83% year-on-year, with 22 new patent authorizations obtained during the reporting period[43]. - The company has allocated 28,800 million yuan for research and development in new technologies and products[172]. - The company reported a significant increase in research and development expenses, which reached ¥15,720,427.98, compared to ¥13,118,837.64 in the first half of 2019, reflecting a growth of 20.0%[153]. Risks and Compliance - The company faces risks including operational risks due to the global COVID-19 pandemic and potential trade tensions between China and the U.S.[4]. - The company emphasizes the importance of investor awareness regarding potential risks outlined in the report[4]. - The company has ongoing litigation with a total disputed amount of CNY 2,244.1 million, with some cases entering enforcement procedures[87]. - The company has completed rectifications in response to regulatory inspections and has been compliant with the Shenzhen Securities Regulatory Commission's requirements[89]. - The company has a history of compliance and has taken corrective measures to address regulatory findings[89]. Subsidiaries and Acquisitions - The company strategically acquired Yizhi Fei to enter the TWS earphone industry, aiming to create new growth points for future business[41]. - During the reporting period, the subsidiary Shiyida Technology achieved operating revenue of 285.72 million yuan, a year-on-year increase of 51.19%, and a net profit of 36.41 million yuan, up 126.36%[76]. - The subsidiary Qianhai Maida reported operating revenue of 200.81 million yuan, a year-on-year increase of 39.38%, but net profit decreased by 80.72% to 7.94 million yuan due to a decline in non-recurring gains[76]. Cash Flow and Financial Management - The company reported a significant increase in cash inflow from investment activities, totaling CNY 1,884,408,702.69 in the first half of 2020, compared to CNY 2,556,568,870.03 in the same period of 2019[161]. - The net cash flow from investment activities was CNY 18,078,113.39, an increase from CNY 1,458,324.75 in the first half of 2019[161]. - The company has entrusted financial management with a total amount of RMB 57.725 million, with an unexpired balance of RMB 50.951 million[106]. - The company has no overdue amounts in its entrusted financial management[106]. Shareholder Information - The total number of restricted shares decreased by 14,605,858 shares, resulting in a total of 198,054,887 restricted shares, which is 34.29% of the total shares[122]. - The total number of unrestricted shares increased by 14,605,858 shares, leading to a total of 379,449,967 unrestricted shares, which is 65.71% of the total shares[122]. - Chairman Chen Yamei's locked shares decreased by 12,371,400 shares, leaving her with 148,567,424 shares[124]. - CEO Qiao Xin's locked shares decreased by 2,250,000 shares, resulting in a total of 49,445,274 shares[124]. Corporate Governance - The semi-annual financial report has not been audited[83]. - There were changes in the board of directors, with several new appointments made on June 19, 2020[138]. - The company has not implemented any stock incentive plans or employee shareholding plans during the reporting period[90].

Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB in 2019, representing a year-on-year growth of 15%[12]. - The company's operating revenue for 2019 was ¥763,029,246.12, a decrease of 26.32% compared to ¥1,035,533,828.4 in 2018[17]. - The net profit attributable to shareholders in 2019 was ¥87,052,838.24, representing a 123.74% increase from a loss of ¥369,515,881.56 in 2018[17]. - The net cash flow from operating activities reached ¥41,763,756.44, a significant increase of 1,998.78% compared to ¥1,990,048.31 in 2018[18]. - The company's total revenue for 2019 was approximately ¥763 million, representing a decrease of 26.32% compared to ¥1.036 billion in 2018[62]. - The internet segment's revenue dropped by 46.25% to ¥232.9 million, down from ¥433.3 million in the previous year[62]. - The industrial segment generated ¥502.1 million, a decline of 14.20% from ¥585.2 million in 2018[62]. - The company's gross profit margin for the internet segment was 15.07%, down by 5.31% year-on-year[64]. User Growth and Market Expansion - User data showed a growth in active users, reaching 5 million by the end of 2019, an increase of 20% compared to the previous year[12]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[4]. - The company has initiated strategic partnerships with three major tech firms to enhance its service offerings and improve customer engagement[4]. Investment and R&D - Investment in new technologies and product development has increased by 25% in 2019, focusing on enhancing digital marketing solutions[12]. - The company continues to prioritize R&D and talent acquisition in the smart hardware sector, aiming to enhance its innovation capabilities[34]. - R&D investment as a percentage of revenue increased by 1.04% year-on-year, reflecting the company's commitment to enhancing product capabilities[47]. - The company has applied for 32 patents and received 38 patent authorizations during the reporting period, showcasing its innovation capabilities[47]. Strategic Direction - The company has transitioned its business model from EMS to a focus on self-developed products and ODM solutions in the smart hardware sector since 2013[16]. - The company has made strategic acquisitions, including entering the digital marketing sector in 2015, which has become a significant contributor to its performance[16]. - The company aims to leverage advancements in 5G, IoT, and AI technologies to strengthen its position in the smart hardware industry[50]. - The company plans to adopt a more cautious approach to future acquisitions, focusing on existing core businesses and avoiding reckless cross-industry mergers[56]. Financial Health and Risks - The company has a cash reserve of approximately 620 million yuan and a debt-to-asset ratio of only 18.95%, indicating strong financial health[46]. - The company faces potential risks from the global COVID-19 pandemic, which may impact operational performance and investment valuations[4]. - The company is actively monitoring developments in 5G messaging, which is expected to create new opportunities for its digital marketing business[36]. - The company faces investment risks due to potential failures in due diligence and business negotiations, which could lead to significant losses if the fair value of acquired companies declines[105]. Corporate Governance and Compliance - The company has fulfilled its commitments regarding related party transactions and has not violated any commitments during the reporting period[117]. - The company ensures the independence of its assets and operations from those controlled by its major shareholders[118]. - The company has committed to not engaging in any business that competes directly or indirectly with its own operations[118]. - The company has established a complete organizational structure to ensure independent governance and decision-making processes[121]. Social Responsibility and Sustainability - The company has committed to sustainable development, implementing energy-saving and environmental protection measures in its operations[173]. - Since 2017, the company has donated annually to Jiangnan University to support students, and it plans to continue hosting entrepreneurial lectures to inspire students[174]. - The company has not initiated any targeted poverty alleviation work in the reporting year and has no subsequent plans[175][176][179].