Financial Performance - The company's operating revenue for the first half of 2021 was ¥1,390,436,163.23, representing a 1.81% increase compared to ¥1,365,687,705.95 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was ¥59,857,092.15, up 3.30% from ¥57,945,063.01 in the previous year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 19.40%, reaching ¥56,093,303.75 compared to ¥46,979,935.53 in the same period last year[20]. - The total profit was 79.99 million yuan, a year-on-year decrease of 0.84%[45]. - The net profit attributable to shareholders was 59.86 million yuan, a year-on-year increase of 3.30%[45]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was 56.09 million yuan, a year-on-year increase of 19.40%[45]. - The company's operating revenue for the current reporting period is ¥1,390,436,163.23, representing a year-on-year increase of 1.81% compared to ¥1,365,687,705.95 in the same period last year[91]. - The operating cost decreased by 0.91% to ¥797,399,707.54 from ¥804,709,164.60 year-on-year[91]. - The revenue from the hotel information management system business increased by 8.96% to ¥429,762,229.02 from ¥394,405,458.66 year-on-year[93]. - The revenue from the payment system business increased by 14.87% to ¥43,312,415.28 from ¥37,705,915.23 year-on-year[93]. - The revenue from the self-owned smart commercial equipment increased by 16.28% to ¥217,548,129.90 from ¥187,083,511.42 year-on-year[93]. - The company reported a significant decrease in revenue from regions outside mainland China, down 37.39% to ¥143,113,274.54 from ¥228,566,057.60 year-on-year[93]. - The company reported a significant increase in inventory, which rose to CNY 382,893,901.47 from CNY 318,912,484.59, a growth of about 19.99%[186]. - The company's accounts receivable decreased to CNY 630,550,634.13 from CNY 670,464,267.88, indicating a decline of approximately 5.95%[186]. Assets and Liabilities - Total assets at the end of the reporting period were ¥10,798,963,117.56, an increase of 1.95% from ¥10,592,813,517.72 at the end of the previous year[20]. - The total number of shares increased from 1,071,112,183 to 1,499,557,056 due to a capital reserve conversion, resulting in a 40% increase in shares[167]. - The company's total assets as of June 30, 2021, amounted to CNY 10,798,963,117.56, an increase from CNY 10,592,813,517.72 at the end of 2020, reflecting a growth of approximately 1.95%[186]. - Current assets totaled CNY 6,446,134,104.30, slightly up from CNY 6,425,681,184.18 at the end of 2020, indicating a marginal increase of about 0.32%[187]. - The company's cash and cash equivalents decreased to CNY 4,913,909,733.26 from CNY 5,117,735,900.08, representing a decline of approximately 4.00%[186]. - Total liabilities increased to CNY 1,467,860,310.00 from CNY 1,430,241,190.14, marking an increase of about 2.66%[188]. - The company's equity attributable to shareholders rose to CNY 8,646,611,673.68 from CNY 8,403,807,598.57, reflecting an increase of approximately 2.89%[189]. - The company's total liabilities to equity ratio stands at approximately 15.73%, indicating a relatively stable leverage position[188]. Earnings and Dividends - The basic earnings per share remained unchanged at ¥0.04, consistent with the previous year[20]. - The diluted earnings per share also remained at ¥0.04, unchanged from the same period last year[20]. - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company distributed cash dividends totaling ¥42,844,487.32 during the reporting period, along with a capital reserve conversion of 428,444,873 shares[134]. - The company has not distributed cash dividends or issued new shares from capital reserves for the half-year period[130]. Business Operations and Strategy - The company has established numerous overseas subsidiaries across Asia-Pacific, Europe, and North America to expand its high-end hotel information system business internationally[31]. - The company is a leading provider of information management systems for the hotel, restaurant, retail, and leisure industries, with a strong market position in China[28]. - The company’s INFRASYS brand targets high-end hotels and restaurants globally, while its subsidiaries focus on various segments of the restaurant industry in China[32]. - The company has developed a comprehensive suite of cloud-based property management systems (PMS) tailored for both local and international hotel clients[30]. - The company’s revenue model includes software sales, system integration, and ongoing technical support services, ensuring a continuous income stream[34]. - The company has a significant presence in the Chinese retail information system market, providing solutions for a wide range of retail formats[33]. - The company has transitioned its hotel and restaurant management systems to public cloud solutions, enhancing operational efficiency and scalability[36]. - The company aims to achieve leadership in the retail information systems market similar to its position in the hotel industry by integrating and enhancing next-generation cloud products[43]. - The company is focusing on a direct connection strategy to enhance its platformization in the hotel, restaurant, and retail sectors, leveraging mobile internet trends[81]. - The company is actively seeking partnerships with leading hotel groups to expand its market presence, following successful implementations in 17 hotels across Europe and Asia Pacific[117]. Research and Development - Research and development investment decreased by 12.06% to ¥289,275,995.77 from ¥328,961,667.90 year-on-year[91]. - The company is focusing on R&D and technology innovation, increasing investment in Android and X86 applications in emerging industries[71]. - The company has increased its investment in R&D for new technologies and products to mitigate risks associated with rapid technological advancements[117]. Market Position and Growth - The company's international business revenue accounted for approximately 10% of total revenue, indicating potential for rapid growth in the global high-end hotel market[37]. - The company maintains a 60% market share in China's five-star hotel market, with over 13,000 hotel clients using its proprietary software[42]. - The company has over 70,000 overseas hotels using its cloud services, positioning it as a leading provider in the global hospitality information systems market[36]. - The company has signed with the Peninsula Hotels Group for its new generation hotel information management system, marking a significant milestone in its international expansion[36]. - The hotel industry is accelerating its digital transformation, with a growing demand for cloud-based information systems[74]. - The shift towards cloud computing is recognized as the future direction for hotel, restaurant, and retail information systems[78]. Challenges and Risks - The company is facing risks due to the ongoing pandemic, which has significantly affected the tourism, hotel, and restaurant industries, particularly for small and medium-sized hotel clients[125]. - The expiration of the agency agreement with ORACLE in May 2020 is expected to negatively impact the company's operating performance, with an estimated revenue loss of approximately 300 million RMB and a net profit loss of no more than 100 million RMB[121]. - The company is actively developing new products to mitigate the risks associated with the transition to the next-generation cloud platform, aiming to diversify revenue sources[120]. Corporate Governance and Compliance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[140]. - The company has not issued any non-standard audit reports for the reporting period[142]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[133]. - The company has implemented an ISO9001 environmental management system to enhance energy-saving awareness among employees[133]. - The company has achieved ISO27001 certification for its data security management system, ensuring compliance with international data protection standards[85].

Financial Performance - The company's operating revenue for 2020 was ¥3,317,319,888.57, a decrease of 9.43% compared to ¥3,662,540,116.40 in 2019[19]. - The net profit attributable to shareholders was -¥67,580,013.80 in 2020, representing a decline of 118.36% from ¥368,017,553.68 in 2019[19]. - The net profit after deducting non-recurring gains and losses was ¥77,248,528.28, down 76.89% from ¥334,324,158.19 in the previous year[19]. - The net cash flow from operating activities decreased by 61.38% to ¥203,947,057.14 from ¥528,066,977.15 in 2019[19]. - The total assets at the end of 2020 were ¥10,592,813,517.72, a decrease of 2.88% from ¥10,906,820,850.71 at the end of 2019[19]. - The company's basic earnings per share for 2020 was -¥0.06, a drop of 117.65% from ¥0.34 in 2019[19]. - The weighted average return on equity was -0.79% in 2020, down from 4.40% in 2019[19]. - The total profit amounted to CNY 5,626.28 million, down 88.60% compared to the previous year[65]. - The company reported a net profit attributable to shareholders of ¥-155,624,257.38 in Q4 2020, significantly impacted by a loss from the disposal of a subsidiary[93]. - The company’s trading financial assets increased by 95.54% compared to the beginning of the period, primarily due to the purchase of more financial products[52]. Business Operations and Strategy - The company is undergoing a critical period of internationalization and platform transformation, facing risks from technological changes and intensified competition in the traditional hotel information management system market[4]. - The company operates primarily in the hotel, catering, and retail sectors, focusing on information management system software development and sales[27]. - The company is transitioning its revenue model towards SaaS services, allowing for lower incremental costs and higher profit margins as customer numbers increase[35]. - The company has established overseas subsidiaries in regions including Asia-Pacific, Europe, and North America, expanding its international presence[30]. - The company has completed global deployment of its new generation cloud architecture hotel management system, with ongoing international hotel group bids and tests[37]. - The company is focusing on building a booking platform and payment platform based on direct connection technology to enhance operational efficiency[46]. - The company is committed to transforming from a software supplier to a platform service provider by leveraging its extensive customer resources[165]. - The company plans to expand its payment business platform and improve operational monitoring, focusing on providing a high-quality payment management platform[170]. Market Position and Client Base - The company has maintained a leading position in the information management system market for star-rated hotels and large-scale retail in China[27]. - The company has over 13,000 domestic hotel clients using its proprietary software, with a market share of approximately 60% in China's five-star hotel sector[29]. - The company has integrated over 100,000 mid-to-high-end and chain restaurant users, with approximately 200,000 standardized restaurant users, indicating a strong market presence in the restaurant information sector[50]. - The company’s retail client base totals around 600,000, capturing over 50% of China's top 100 retail clients, showcasing its competitive edge in the retail information market[50]. - The company has over 10,000 mid-to-high-end chain restaurant users and approximately 200,000 users in the mass dining sector, maintaining a leading market share in the restaurant information technology sector[60]. Research and Development - The number of R&D personnel increased to 2,148 in 2020, up 5.29% from 2,040 in 2019[115]. - R&D investment amounted to ¥647,685,782.58 in 2020, representing a 16.16% increase from ¥557,582,954.36 in 2019[115]. - The total R&D investment reflects the company's commitment to innovation and market expansion strategies[115]. - The company completed the development of several new systems in 2020, including a document recognition system costing ¥11,220,541.02[116]. - The company has achieved software copyright for several products, indicating a focus on intellectual property and innovation in technology[118][119]. Impact of the Pandemic - The pandemic has accelerated the digital transformation of the hotel industry, with increased demand for data management and contactless services[41]. - The company is focusing on cost reduction and ensuring liquidity while accelerating R&D innovation as a top priority[185]. - The pandemic has significantly impacted the domestic third-class service industry, particularly the tourism, hotel, and catering sectors, leading to operational risks for the company's small and medium-sized hotel and single restaurant clients[184]. - The company has adjusted its international product promotion focus to the Chinese market to mitigate the pandemic's impact[185]. - The domestic tourism industry showed signs of slow recovery in the second half of 2020 as the pandemic was brought under control[184]. Cash Dividend and Shareholder Information - The company reported a cash dividend of 0.4 CNY per 10 shares (including tax) based on a total share capital of 1,071,112,183 shares as of December 31, 2020[4]. - The cash dividend for 2019 was RMB 42,829,767.00, which represented 11.64% of the net profit attributable to shareholders[195]. - The total distributable profit for 2020, after accounting for the previous year's dividend and other adjustments, was RMB 2,920,554,602.30[196]. - The cash dividend distribution for 2020 represents 100% of the total profit distribution amount[196]. - The company has committed to maintaining a minimum cash dividend ratio of 20% during profit distributions, considering its growth stage and significant capital expenditures[196]. International Expansion and Partnerships - The company aims to establish a large data platform and cloud service platform to connect the hotel, catering, and retail industries[161]. - The company plans to deepen integration with Alibaba in the new retail sector to maintain its leadership in the new generation retail information system business[165]. - The company is focusing on international expansion and plans to invest in overseas hotel-related companies to enhance its international product line[182]. - The company has been enhancing cooperation with online e-commerce platforms like Alibaba and Tencent since 2014 to transition from a software vendor to a platform operator[183]. Financial Liabilities and Assets - The company’s financial liabilities included trading financial liabilities of ¥11,051,721.39, which were recorded as a loss during the period[134]. - The company’s total assets and liabilities did not experience any significant changes in measurement attributes during the reporting period[135]. - The company recorded a loss of approximately ¥168,947,400 from the disposal of 100% equity in StayNTouch, which significantly impacted the net profit[143].