深圳市惠程信息科技股份有限公司 2019 年第三季度报告全文 深圳市惠程信息科技股份有限公司 2019 年第三季度报告 2019 年 10 月 1 深圳市惠程信息科技股份有限公司 2019 年第三季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连 带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人徐海啸、主管会计工作负责人方莉及会计机构负责人(会计主管 人员)王烨声明：保证季度报告中财务报表的真实、准确、完整。 2 深圳市惠程信息科技股份有限公司 2019 年第三季度报告全文 第二节 公司基本情况 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 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 3,719,391,371.02 | 3,701,460,497.85 | | 0.48% | | 归属于上市公司股东的净资产（元） | ...

Financial Performance - The company reported a revenue of RMB 1.2 billion for the first half of 2019, representing a year-on-year increase of 15%[12]. - The net profit attributable to shareholders for the same period was RMB 150 million, up 10% compared to the previous year[12]. - The company's operating revenue for the first half of 2019 was ¥437,089,304.16, a decrease of 61.03% compared to ¥1,121,517,683.86 in the same period last year[18]. - The net profit attributable to shareholders was ¥57,224,634.80, down 77.10% from ¥249,889,853.78 year-on-year[18]. - The total revenue for the reporting period was RMB 437.09 million, a decrease of 61.03% compared to RMB 1.12 billion in the same period last year[44]. - The gaming sector's revenue dropped by 67.30%, contributing RMB 324.22 million, down from RMB 991.60 million year-on-year[47]. - The company reported a significant increase in fair value gains of 576.58%, amounting to RMB 10.82 million, due to the appreciation of securities assets[45]. - The company reported a total profit of CNY -31,575,646.35 for the first half of 2019, compared to CNY 164,469,625.99 in the same period of 2018[149]. - The total comprehensive income for the first half of 2019 was CNY 93,562,332.15, reflecting the company's performance during the half-year[157]. User Growth and Market Expansion - User data showed an increase in active users by 20% year-on-year, reaching 5 million active users by June 30, 2019[12]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2020[12]. - The company aims to expand its market presence by exploring overseas game distribution models to sustain long-term growth potential[70]. Research and Development - The company plans to invest RMB 200 million in R&D for new products and technologies in the upcoming year[12]. - The company plans to enhance its research and development efforts in smart integrated products for power distribution equipment, aiming to capitalize on the opportunities presented by the "Ubiquitous Power Internet of Things" initiative[28]. - Research and development expenses increased by 17.72% to RMB 37.19 million due to the rise in R&D projects[45]. - The company is actively investing in the unmanned delivery robot project to expand into the modern intelligent robotics sector, recognizing the long-term growth potential in this market[29]. - The company is focusing on the development of smart manufacturing and the integration of power distribution equipment to adapt to market changes and enhance competitiveness[68]. Strategic Initiatives - A strategic acquisition of a local tech firm is expected to enhance the company's product offerings and market reach, with a deal value of approximately RMB 300 million[12]. - The company aims to launch two new product lines by Q4 2019, which are anticipated to contribute an additional RMB 100 million in revenue[12]. - The company is collaborating with Tencent to establish a strategic alliance to support independent game development[41]. - The company plans to launch significant new products, including "Explosive Three Kingdoms," to enhance its product line and meet performance commitments[72]. Financial Management and Investments - The company will not distribute cash dividends for the current fiscal year, focusing on reinvestment for growth[5]. - The company plans to repurchase shares with a total amount not exceeding RMB 150 million and not less than RMB 100 million, having already repurchased 17,586,400 shares, accounting for 2.19% of the total share capital[42]. - The company has begun small-scale production of unmanned delivery robots, targeting the last-mile delivery issue, which presents significant growth potential[40]. - The company has restricted cash of approximately RMB 15.97 million due to bank guarantees and acceptance bill deposits[54]. - The company reported a total of ¥143,071,653.93 in financial assets measured at fair value, with a fair value change gain of ¥10,820,780.96 during the reporting period[57]. Risk Management - The management highlighted potential risks including market competition and regulatory changes, with strategies in place to mitigate these risks[4]. - The company is focusing on risk control in its investment business to ensure sustainable and stable development amid market fluctuations[31]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 50,314[125]. - The largest shareholder, Zhongchi Huicheng Enterprise Management Co., Ltd., holds 52,000,000 shares, representing a significant portion of the company's equity[125]. - The company has a total of 24,045,000 restricted shares, with 4,485,075 shares released during the reporting period[122]. Compliance and Governance - The company did not report any significant litigation or arbitration matters during the reporting period[83]. - The company has not undergone any bankruptcy reorganization during the reporting period[82]. - The company has not faced any media scrutiny during the reporting period[85]. - The company has not experienced any penalties or rectification issues during the reporting period[86]. Accounting and Financial Reporting - The financial report for the first half of 2019 was not audited[138]. - The company adheres to the accounting policies and estimates as outlined in its financial report, ensuring accurate reflection of its financial status[183]. - The company’s financial reporting period aligns with the calendar year, from January 1 to December 31[184].

Financial Performance - The company's operating revenue for Q1 2019 was ¥221,860,514.47, a decrease of 63.27% compared to ¥604,057,765.92 in the same period last year[8] - The net profit attributable to shareholders was ¥26,596,218.40, down 82.97% from ¥156,162,545.94 year-on-year[8] - The net profit after deducting non-recurring gains and losses was ¥25,260,541.31, reflecting an 83.68% decline from ¥154,818,894.71 in the previous year[8] - Basic and diluted earnings per share were both ¥0.03, down 84.21% from ¥0.19 in the previous year[8] - The weighted average return on equity decreased to 1.81%, down 9.13% from 10.94% year-on-year[8] - The company's operating revenue for Q1 2019 was ¥221,860,514.47, a decrease of 63.27% compared to ¥604,057,765.92 in Q1 2018, primarily due to the delayed product launch of the subsidiary, Duokemeng[20] - The company's financial expenses increased by 2,309.87% to ¥7,469,636.51 in Q1 2019, attributed to the increased scale of loans for the Duokemeng project[20] - The company's development expenses rose by 30.68% to ¥5,741,565.94 in Q1 2019, driven by increased R&D expenditures for self-developed patent technologies[20] - The company reported a total of CNY 50,594,816.10 in trading financial assets as of March 31, 2019, compared to zero at the end of 2018[38] - The company reported a total of CNY 1,495,925,870.01 in current assets, up from CNY 1,381,660,928.01, an increase of about 8.3%[44] Cash Flow - The net cash flow from operating activities was -¥132,995,439.10, a significant drop of 1,321.79% compared to ¥10,885,271.63 in the same period last year[8] - The net cash flow from operating activities was -132,995,439.10, a significant decrease compared to 10,885,271.63 in the previous period, indicating a decline of approximately 1,325%[54] - Cash inflow from operating activities totaled 259,220,488.79, down 54.5% from 569,566,431.13 in the prior period[54] - Cash outflow from operating activities increased to 392,215,927.89, a decrease of 29.8% compared to 558,681,159.50 in the previous period[54] - The net cash flow from investment activities was 31,286,067.08, down 71.6% from 110,295,642.41 in the previous period[54] - Cash inflow from investment activities was 219,360,871.36, a decrease of 55.9% compared to 497,078,016.80 in the prior period[54] - Cash outflow from investment activities decreased to 188,074,804.28, down 51.4% from 386,782,374.39 in the previous period[54] - The net cash flow from financing activities was 4,385,193.84, an improvement from -90,496,707.40 in the previous period[55] - Total cash and cash equivalents at the end of the period were 636,019,370.34, down from 733,303,657.33 at the beginning of the period[55] Assets and Liabilities - Total assets at the end of the reporting period were ¥3,691,326,871.46, a slight decrease of 0.27% from ¥3,701,460,497.85 at the end of the previous year[8] - The company's cash and cash equivalents decreased to CNY 648,053,781.12 from CNY 749,630,841.74[38] - The accounts receivable stood at CNY 393,646,505.78, down from CNY 404,200,072.52[38] - The company's inventory increased to CNY 73,190,398.70 from CNY 64,987,559.66[38] - Non-current assets totaled CNY 1,949,745,729.19, up from CNY 1,914,375,538.10[39] - The company's short-term borrowings remained unchanged at CNY 113,871,471.84[39] - The accounts payable decreased to CNY 384,533,736.16 from CNY 424,493,722.08[39] - Total liabilities amounted to CNY 1,651,850,073.78, up from CNY 1,533,876,325.81, indicating an increase of around 7.67%[45] - Owner's equity totaled CNY 1,662,985,711.83, slightly down from CNY 1,668,392,722.48, a decrease of about 1.7%[45] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 49,317[12] - The total equity attributable to shareholders of the parent company was CNY 1,970,518,287.45, up from CNY 1,943,899,800.92, an increase of approximately 1.4%[41] Government Support - The company received government subsidies amounting to ¥1,571,409.78, primarily related to local government support policies[9] - The company reported a significant increase in government subsidies, with operating other income rising by 242.00% to ¥1,571,409.78 in Q1 2019[20] Subsidiary Activities - The company established a new subsidiary, Chengdu Duoqu Network Technology Co., Ltd., with an investment of ¥10 million in January 2019[24] - The company plans to dissolve its subsidiary, Huludao Gongchuang Network Technology Co., Ltd., due to lack of business operations and inability to secure favorable policies[24] - The company acquired 853,000 shares of Aikouyou Technology Co., Ltd., representing approximately 1.67% of its total equity, for no more than ¥20.05 million[24] Compliance and Standards - The company is subject to new financial accounting standards effective from January 1, 2019, which may impact future financial reporting[62] - The company adopted new financial accounting standards effective January 1, 2019, impacting the reporting of financial instruments[67] - The first quarter report was not audited, indicating that the figures presented are preliminary and subject to change[67]

Financial Performance - The company's operating revenue for 2018 was CNY 1,898,158,382.53, representing a 408.65% increase compared to CNY 373,172,726.25 in 2017 [20]. - The net profit attributable to shareholders for 2018 was CNY 336,389,804.53, a significant turnaround from a loss of CNY 107,607,635.77 in 2017, marking a 412.61% increase [20]. - The net profit after deducting non-recurring gains and losses was CNY 261,472,491.31, up 326.50% from a loss of CNY 115,438,310.62 in the previous year [20]. - The net cash flow from operating activities reached CNY 308,950,003.63, a remarkable increase of 5,747.52% compared to a negative cash flow of CNY 5,470,546.80 in 2017 [20]. - Basic earnings per share for 2018 were CNY 0.43, recovering from a loss of CNY 0.14 per share in 2017 [20]. - The total revenue for 2018 reached ¥1,898,158,382.53, a significant increase of 408.65% compared to ¥373,172,726.25 in 2017 [55]. - The gaming industry contributed ¥1,572,809,999.93, accounting for 82.86% of total revenue, with a staggering growth of 3,247.88% year-over-year [55]. - The company achieved a net profit of 32,279.43 million CNY for the year 2018, exceeding the performance commitment of 18,800 million CNY by 171.70% [138]. Assets and Liabilities - Total assets at the end of 2018 amounted to CNY 3,701,460,497.85, reflecting a 14.45% increase from CNY 3,234,129,192.61 at the end of 2017 [20]. - The net assets attributable to shareholders increased by 44.03% to CNY 1,943,899,800.92 from CNY 1,349,637,156.94 in 2017 [20]. - The company's fixed assets decreased by 6.07 million yuan due to the transfer of fixed assets to investment properties during the reporting period [42]. - The company's long-term borrowings increased by 289.10 million yuan, attributed to the acquisition loan for the merger project of its subsidiary [42]. - The total liabilities increased, with short-term borrowings rising to ¥113,871,471.84, up from ¥66,481,627.61, reflecting new working capital loans [81]. Investments and Acquisitions - The company completed the acquisition of 77.57% of Docomon, expanding its business into big data marketing and mobile game development [18]. - The company has successfully established an industrial merger fund to invest in high-growth potential projects, enhancing its profitability and facilitating industrial upgrades [50]. - The company completed an equity investment of ¥250 million, acquiring a 25% stake in Huizhi Network Technology Co., Ltd. as of December 7, 2018 [88]. - The company has established a new subsidiary, Huizhi Network, with a registered capital of RMB 10 million, where it contributed RMB 9 million [100]. - The company has committed to a profit guarantee for the subsidiary Douke Meng, with minimum net profit targets set at 14,500 million CNY, 18,800 million CNY, and 24,500 million CNY for the years 2017, 2018, and 2019 respectively [137]. Research and Development - The company emphasizes technological innovation and has partnered with institutions like Tsinghua University to enhance its R&D capabilities [44]. - The number of R&D personnel increased by 11.21% to 367, representing 41.89% of the total workforce [71]. - The company plans to enhance its research and development capabilities to transition low-value products into high-value intelligent products, aligning with market demands [108]. - The company plans to increase R&D investment in smart integrated products and industrial robots, leveraging 20 years of industry experience to capitalize on IoT opportunities in the electrical equipment sector [109]. Market and Industry Trends - In 2018, China's game market achieved actual sales revenue of 214.44 billion yuan, a year-on-year increase of 5.3% [37]. - The mobile game market in China generated actual sales revenue of 133.96 billion yuan in 2018, growing by 15.4% year-on-year, accounting for 62.5% of the overall game market [37]. - The Chinese gaming market is projected to account for 28% of the global market in 2018, with mobile games expected to represent 61% of the market share, increasing to 70% by 2021 [105]. - The national electricity consumption in China reached 6.84 trillion kWh in 2018, growing by 8.5%, with an expected growth of around 5.5% in 2019 [103]. Corporate Governance and Shareholder Relations - The board of directors and management guarantee the accuracy and completeness of the annual report [3]. - The company plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves [5]. - The company has developed a three-year shareholder return plan (2018-2020) that outlines profit distribution methods and cycles [124]. - The company is committed to maintaining its control over the listed company and ensuring that its control rights do not change [128]. - The company has agreed to not engage in any business that competes with its subsidiary, ensuring no conflicts of interest arise post-transaction [130]. Operational Challenges and Risks - The company faced challenges in Q4 2018 due to intensified competition in the gaming market and regulatory tightening, leading to a decrease in net profit for that quarter [57]. - The company faces risks from industry policy changes and increased competition, necessitating a differentiated product strategy and improved production management [112]. - The company has faced challenges in its investment business due to regulatory changes and economic conditions, leading to noticeable fluctuations in investment returns in 2018 [101]. Social Responsibility and Sustainability - The company emphasizes sustainable development, balancing economic benefits with social and environmental responsibilities [193]. - The company actively participates in social responsibility initiatives, including donations to charitable causes totaling RMB 400,000 during the reporting period [196]. - The company is not classified as a key pollutant discharge unit and focuses on green development and low-carbon production processes [198].

Financial Performance - Operating revenue for the period reached CNY 400,601,644.02, a significant increase of 405.95% year-on-year[7] - Net profit attributable to shareholders was CNY 75,873,908.77, reflecting a year-on-year increase of 377.34%[7] - Basic earnings per share rose to CNY 0.09, an increase of 400.00% compared to the same period last year[7] - Net cash flow from operating activities was CNY 156,340,063.68, up 1,676.77% year-on-year[7] - The company's operating revenue for the first nine months of 2018 reached RMB 1,522,119,327.88, a significant increase of 557.63% compared to RMB 231,456,353.16 in the same period of 2017[16] - The net cash flow from operating activities improved to RMB 171,251,071.59, a 405.31% increase from a negative RMB 56,090,272.53 in the previous year[17] - The company reported a profit from investment of RMB 191,025,483.22, a 693.75% increase compared to a loss of RMB 32,172,717.53 in the previous year[17] - The company expects a net profit for 2018 to be between 41,000.00 million CNY and 46,000.00 million CNY, a turnaround from a net loss of 10,760.76 million CNY in 2017, driven by the acquisition of Docomon and improved performance in the electrical business[27] Assets and Liabilities - Total assets increased by 10.96% to CNY 3,588,730,681.06 compared to the end of the previous year[7] - Net assets attributable to shareholders increased by 36.94% to CNY 1,848,240,944.32 compared to the end of the previous year[7] - The total liabilities increased, with long-term borrowings reaching RMB 270,200,000.00, attributed to new acquisition loans received during the period[16] - The company's total assets saw a significant change, with cash flow from investment activities increasing by 172.36% to RMB 420,891,539.63, due to the maturity of financial products and adjustments in investment funds[17] Shareholder Information - The total number of shareholders at the end of the reporting period was 53,048[11] - The top shareholder, Qiongqing Chengxin Li Bao Investment Partnership, held 11.80% of the shares[11] - As of the report date, 1,125,000 shares have been exercised under the 2015 second phase stock option incentive plan, increasing the total share capital from 813,009,768 shares to 814,134,768 shares[19] Investments and Acquisitions - The acquisition of Docomon has significantly contributed to the company's performance, with Docomon achieving revenue of 128,439.2 million CNY and a net profit of 27,648.3 million CNY from January to September 2018, exceeding the annual performance commitment of 188 million CNY[18] - The company plans to acquire 64.96% of Aikuyou for a total consideration of 123,848.43 million CNY, with 50% to be paid in shares and 50% in cash, which will increase the company's stake in Aikuyou to 68.96%[21] - The company has established a wholly-owned subsidiary, Chengdu Kexing Network Technology Co., Ltd., with an investment of 1 million CNY[22] - The company has increased its stake in Xingling Interactive Technology Co., Ltd. to 30% through an investment of up to 5 million CNY[22] - The company has also invested up to 3.5 million CNY to acquire a 13% stake in Guangzhou Thunder Information Technology Co., Ltd.[23] Research and Development - Research and development expenses surged by 2075.15% to RMB 37,498,610.11, reflecting increased investment in the subsidiary's projects[17] Financial Management - The company reported a total of 54,600,000 RMB in entrusted financial management, with an outstanding balance of 21,950,000 RMB[34] - The company has invested 48,800,000 RMB in bank financial products and 5,800,000 RMB in trust financial products, all sourced from its own funds[34] - The expected annualized return for the bank financial products is approximately 4.49%[35] - The company has no overdue amounts in its entrusted financial management activities, indicating effective liquidity management[34] Income from Financial Products - The company has a total of 12,100,000 RMB in bank financial products with a reported income of 265,060 RMB during the reporting period[35] - The company has invested 25,000,000 RMB in a bank financial product with a 3.80% expected annualized return, generating an income of 20,820 RMB[35] - The company has a total of 3,300,000 RMB in bank financial products with an expected return of 4.49%, yielding an income of 64,980 RMB[35] - The company has a total of 1,500,000 RMB in bank financial products with a 2.90% expected annualized return, generating an income of 720 RMB[37] - The company has a total of 4,000,000 RMB in bank financial products with an expected return of 2.80%, yielding an income of 310 RMB[37] - The company has a total of 3,000,000 RMB in bank financial products with a 2.90% expected annualized return, generating an income of 4,290 RMB[37] Floating Income from Investments - Hangzhou Bank reported a floating income of 4,000 million with a return rate of 2.61% for investments maturing in September 2018[39] - Industrial Bank's floating income for September 2018 was 2,000 million with a return rate of 2.73%, yielding 4.63 million[39] - Ping An Bank's financial products in Pingshan New District had a total investment of 5,000 million with a return rate of 3.30%, generating 5.97 million[39] - China Aviation Trust reported a floating income of 3,800 million with a return rate of 4.57%, yielding 2.38 million in September 2018[41] - The total entrusted financial management amount reached 107,595.05 million, with a total yield of 191.83 million[41] - Hangzhou Bank's floating income for September 2018 was 5,000 million with a return rate of 2.50%, yielding 4.79 million[39] - Industrial Bank's floating income for July 2018 was 1,150 million with a return rate of 2.73%, yielding 2.66 million[39] - The financial products from Ping An Bank in Pingshan New District had a return rate of 2.90%, generating 37.22 million from a total investment of 4,000 million[41] - The financial products from Industrial Bank in September 2018 had a return rate of 2.90%, yielding 4.74 million from a total investment of 2,000 million[39] - Hangzhou Bank's floating income for August 2018 was 4,000 million with a return rate of 2.80%, yielding 5.87 million[39]

Financial Performance - The company reported a revenue of RMB 1.2 billion for the first half of 2018, representing a year-on-year increase of 15%[14]. - The net profit attributable to shareholders for the same period was RMB 150 million, up 20% compared to the previous year[14]. - Future guidance suggests a revenue target of RMB 2.5 billion for the full year 2018, reflecting a growth rate of 18%[14]. - The company's operating revenue for the reporting period reached CNY 1,121,517,683.86, a significant increase of 636.49% compared to the same period last year[19]. - Net profit attributable to shareholders was CNY 249,889,853.78, marking a 485.11% increase from a loss of CNY 64,888,205.70 in the previous year[19]. - The net profit for the first half of 2018 reached CNY 286,394,822.08, a turnaround from a net loss of CNY 65,048,114.20 in the same period last year[173]. - The company reported a total comprehensive income of CNY 131,976,957.06, compared to a loss of CNY 43,585,537.54 in the same period last year[177]. Investment and R&D - The company plans to invest RMB 200 million in R&D for new technologies and products in the upcoming year[14]. - The company is exploring potential mergers and acquisitions to enhance its competitive position in the market[14]. - The company is actively expanding into the modern intelligent robotics field and has invested in unmanned delivery robot projects to enhance its high-end manufacturing capabilities[28]. - The company emphasizes technological innovation and has formed partnerships with research institutions to enhance product development[36]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[1]. Market Expansion - The company has outlined a market expansion strategy targeting Southeast Asia, aiming for a 25% increase in market share by 2020[14]. - The company is focusing on the development of unmanned delivery robots to address last-mile delivery challenges, which presents significant growth opportunities[42]. - The internet entertainment business has shown rapid growth, with revenue reaching CNY 991.60 million in the first half of 2018, a 332.48% increase from CNY 229.28 million in the same period last year[43]. - The company successfully acquired Docomon, enhancing its presence in the internet entertainment industry and increasing the contribution to overall performance[41]. Financial Position - The company's total assets increased by 6.10% to CNY 3,431,353,654.49 compared to the end of the previous year[19]. - The net assets attributable to shareholders rose by 30.36% to CNY 1,759,450,445.45 from CNY 1,349,637,156.94 at the end of the previous year[19]. - The company's cash and cash equivalents increased to CNY 608,775,858.03 from CNY 346,559,958.83, representing a growth of about 75.5%[163]. - The company's total liabilities decreased to CNY 1,586,961,380.89 from CNY 1,836,055,175.82, a reduction of about 13.5%[165]. - The equity attributable to shareholders of the parent company increased to CNY 1,759,450,445.45 from CNY 1,349,637,156.94, marking an increase of approximately 30.4%[166]. Shareholder Matters - No cash dividends or stock bonuses will be distributed to shareholders for this period[5]. - The company plans to increase its shareholding in the listed company by an amount not less than 1 billion and not exceeding 10 billion within 12 months after the completion of the transaction[91]. - The company guarantees that it will not actively relinquish control over the listed company for a period of 60 months following the completion of the transaction[91]. - The company has committed to maintaining the stability of the actual control of the listed company and will not terminate the agreement with the controlling shareholder within 60 months after the transaction[91]. Risks and Challenges - The company has identified risks related to market volatility and has developed strategies to mitigate these risks[4]. - The company faces risks from industry policy changes and increased competition in the electrical equipment sector, prompting a strategy of differentiated products and optimized production management[81]. - The integration of "Duo Ke Meng" into the company's operations is ongoing, with potential uncertainties in achieving expected synergies due to differences in industry management practices[82]. Legal and Compliance - The company reported a significant litigation case involving Shanghai Xuanting Entertainment Information Technology Co., with a disputed amount of 5.09 million yuan, resulting in a first-instance judgment requiring compensation for economic losses[98]. - The company is currently involved in multiple litigation cases, including a joint operation revenue sharing dispute with Shanghai Wangyu Network Technology Co., with a claimed amount of approximately 3.13 million yuan[100]. - The company has not undergone any bankruptcy reorganization during the reporting period[97]. - The company has no media controversies reported during the period[101]. Employee and Management - The company has appointed a new vice president, indicating a change in management structure[156]. - The company emphasizes the importance of retaining high-quality talent to maintain its competitive edge in both the high-end manufacturing and internet service sectors[85]. - The company has implemented an employee stock ownership plan, with the first phase initiated in 2015, which included adjustments to the list of incentive objects and the number of shares granted[103].

Financial Performance - The company's operating revenue for Q1 2018 reached ¥604,057,765.92, representing a significant increase of 1,035.26% compared to ¥53,208,618.29 in the same period last year[8] - Net profit attributable to shareholders was ¥156,162,545.94, a remarkable increase of 2,907.63% from a loss of ¥5,562,076.38 in the previous year[8] - The net profit after deducting non-recurring gains and losses was ¥154,818,894.71, up 2,379.12% from a loss of ¥6,792,938.91 year-on-year[8] - Basic and diluted earnings per share were both ¥0.19, a substantial increase of 2,000.00% from a loss of ¥0.01 per share in the previous year[8] - The company expects a net profit of between 23,000 and 25,000 thousand yuan for the first half of 2018, a turnaround from a net loss of 6,488.82 thousand yuan in the same period last year[27] - The significant improvement in performance is attributed to the addition of a new subsidiary, which is expected to greatly enhance consolidated net profit[27] Cash Flow and Investments - The net cash flow from operating activities was ¥10,885,271.63, an increase of 159.02% compared to ¥4,202,507.39 in the same period last year[8] - The company reported non-recurring gains of ¥1,343,651.23, primarily from the disposal of idle properties and government subsidies[9] - The company has engaged in regular investment activities, with a reported income of ¥152,873,969.84 from its investment and financial products, indicating a stable and ongoing revenue stream[10] - The investment activities generated cash inflow of CNY 110,295,642.41, a 474.35% increase, primarily from the maturity of financial products[22] Assets and Liabilities - The total assets at the end of the reporting period were ¥3,454,996,884.67, reflecting a growth of 6.83% from ¥3,234,129,192.61 at the end of the previous year[8] - The net assets attributable to shareholders increased by 11.66% to ¥1,507,001,323.64 from ¥1,349,637,156.94 at the end of the previous year[8] - Accounts receivable increased by 56.90% to CNY 276,507,996.57, driven by a substantial rise in revenue from the subsidiary during the reporting period[17] - Other receivables surged by 453.76% to CNY 220,807,580.34, mainly due to payments made for acquisition earnest money and recovery of capital from the industrial merger fund[17] - The company incurred a net cash outflow of CNY 90,496,707.40 from financing activities, reflecting new bank loans and payments related to acquisitions[22] Research and Development - The company capitalized new R&D project expenses, resulting in development expenditures of CNY 2,256,762.20 during the reporting period[17] - The company plans to invest up to CNY 810,000 in Beijing Zhaoxin Technology Co., aiming to acquire a 15% stake for a blockchain electricity trading system project[24] Market and Performance Outlook - The electrical business is projected to perform better than in the previous year during the first half of 2018[27] - The company anticipates higher investment returns from its industry merger fund compared to the same period last year[27] - The fair value changes of the company's securities investments may significantly impact the accuracy of the performance forecast due to market factors[27] - The company reported a total initial investment of 54,620,709.56 yuan in stocks, with a fair value loss of 4,009,628.25 yuan during the reporting period[30] - The ending balance of the stock investments is 46,540,089.58 yuan, sourced from the company's own funds[30] Compliance and Governance - There were no instances of non-compliance with external guarantees during the reporting period[31] - The company did not have any non-operating fund occupation by controlling shareholders or related parties during the reporting period[32] - No research, communication, or interview activities were conducted during the reporting period[33]

Financial Performance - The company reported a total revenue of RMB 1.2 billion for the fiscal year 2017, representing a 10% increase compared to 2016[1]. - The company's operating revenue for 2017 was ¥373,172,726.25, representing a 29.30% increase compared to ¥288,618,425.48 in 2016[20]. - The net profit attributable to shareholders for 2017 was -¥107,607,635.77, a decrease of 241.75% from ¥75,912,490.21 in 2016[20]. - The net cash flow from operating activities for 2017 was -¥5,470,546.80, a decline of 746.56% compared to -¥646,210.28 in 2016[20]. - The company reported a basic earnings per share of -¥0.14 for 2017, down 255.56% from ¥0.09 in 2016[20]. - The weighted average return on net assets for 2017 was -7.97%, a decrease of 14.06% from 6.09% in 2016[20]. - The company reported a quarterly operating revenue of ¥141,716,373.09 in Q4 2017, with a total annual revenue of ¥373,172,726.25[24]. - The net profit attributable to shareholders in Q4 2017 was -¥15,361,670.52, showing continued losses throughout the year[24]. Strategic Initiatives - Future outlook includes a projected revenue growth of 15% for 2018, driven by new product launches and market expansion strategies[4]. - The company is focusing on research and development of new technologies, with an investment of RMB 50 million planned for 2018[1]. - The company is exploring strategic partnerships to facilitate market expansion and enhance competitive advantage[4]. - The company has identified key areas for growth, including the development of smart energy solutions and digital services[1]. - The company aims to enhance its internet entertainment segment by leveraging its brand and R&D advantages, focusing on IP development and global market expansion, while increasing the share of self-developed quality games[98]. - The company has initiated a major asset restructuring to acquire targets in the internet service industry, aiming for synergy with existing operations and enhancing its internet service industry layout[99]. Acquisitions and Investments - The acquisition of a 77.57% stake in Douke Network is expected to enhance the company's market position and service offerings[10]. - The company completed the cash acquisition of 77.57% of Duokemeng on December 20, 2017, expanding its presence in the internet culture and entertainment industry[17]. - The company acquired control of the subsidiary "Duo Ke Meng," entering the internet entertainment industry, which is expected to provide new profit growth points[28]. - The company made a significant equity investment of ¥40,040,299 in Aikouyou, acquiring a 4% stake in the company[79]. - The company also invested ¥1,383,460,950 for a 77.57% stake in a mobile gaming business, indicating a strategic focus on the gaming sector[79]. Market Trends and Projections - The gaming market is expected to continue growing, with mobile games leading the sector, accounting for 55.8% of the market share in 2017[31]. - The Chinese gaming market is expected to reach RMB 287.1 billion in 2018, growing by 21.9% from 2017, and projected to reach RMB 419.6 billion by 2022, with mobile games accounting for 76.5% of the market share by 2022[95]. - The electric equipment manufacturing industry is projected to maintain rapid growth, with significant investments in power grid construction totaling 5,315 billion CNY in 2017[30]. Corporate Governance and Accountability - The board of directors has confirmed the accuracy and completeness of the financial report, ensuring accountability[3]. - The company has not made any adjustments or restatements to previous years' financial data[20]. - The company has ensured that minority shareholders have had opportunities to express their opinions and that their rights have been protected[107]. - The company has committed to maintaining the stability of its actual control and has fulfilled all related commitments as of the report date[109]. Risk Management - The company anticipates facing potential risks in its future operations, which are detailed in the management discussion section[4]. - The company will implement measures to address potential risks from industry policy changes and market competition, ensuring compliance with national policies and optimizing product structures[100]. - The company plans to strengthen investment risk management and focus on value investment, particularly in the upstream and downstream of the electric equipment and internet entertainment industries[99]. Social Responsibility and Employee Welfare - The company emphasizes social responsibility, focusing on sustainable development alongside economic benefits[169]. - Employee welfare and rights are prioritized, with a detailed performance evaluation system in place[170]. - Environmental protection and energy conservation are key components of the company's sustainable development strategy[173]. Shareholder Relations - The company has established a three-year shareholder return plan (2015-2017) that outlines profit distribution forms, cycles, and ratios[106]. - The cash dividend policy complies with the company's articles of association and has been transparently communicated to shareholders[107]. - The company has not distributed any cash dividends or conducted any capital reserve transfers to increase share capital for the years 2015, 2016, and 2017, retaining all earnings for daily operations[107].

Financial Performance - Operating revenue for the reporting period was ¥79,177,645.39, representing a year-on-year increase of 6.27%[7] - The net profit attributable to shareholders was a loss of ¥27,357,759.55, a decrease of 207.71% compared to the same period last year[7] - Basic earnings per share were -¥0.03, down 192.31% from the previous year[7] - The weighted average return on net assets was -2.05%, a decrease of 4.22% compared to the previous year[7] - The company reported a significant decline in net profit and cash flow, indicating challenges in operational performance[7] Cash Flow and Assets - The net cash flow from operating activities was a negative ¥9,915,184.46, reflecting a decline of 172.50% year-on-year[7] - Cash and cash equivalents increased by 303.35% to ¥271,867,668.43 due to the redemption of financial products into bank deposits[16] - The company reported a 530.46% decline in cash flow from operating activities, resulting in a net cash outflow of ¥56,090,272.53, mainly due to increased guarantees on notes payable[17] - The company’s investment activities generated a cash inflow of ¥154,533,352.13, a 144.91% increase compared to the previous period, due to reduced fixed asset investments[17] Liabilities and Expenses - The company’s total liabilities increased significantly, with short-term borrowings rising by 123.01% to ¥119,644,653.25[16] - Operating costs rose by 52.99% to ¥166,488,862.03, primarily due to an increase in orders[16] - Financial expenses increased by 152.46% to ¥1,758,683.88, attributed to the rise in short-term loans[16] Investments and Acquisitions - The company plans to acquire 55% of Jiangsu Qunli Century Investment Development Co., Ltd. for ¥57,750,000 and 77.57% of Chengdu Doke Dream Network Technology Co., Ltd. for ¥138,346,095.50, totaling ¥196,096,095.50[19] - The company’s investment income decreased by 231.31% to -¥32,172,717.53, primarily due to changes in equity method accounting for joint ventures[16] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 51,946[11] - The largest shareholder, Zhongchi Huicheng Enterprise Management Co., Ltd., held 10.02% of the shares, amounting to 82,230,955 shares[11] Non-Recurring Gains and Losses - Non-recurring gains and losses totaled ¥8,683,075.07, primarily from the disposal of idle properties and government subsidies[8] - The company anticipates a significant decrease in non-recurring gains from the disposal of idle properties and equity investments compared to the previous year[25] Deferred Income and Comprehensive Income - The company’s deferred income tax assets increased by 40.72% to ¥25,152,217.43, reflecting an increase in deductible temporary differences[16] - The company’s other comprehensive income increased by 83.59% to ¥51,930,475.71, driven by changes in the fair value of available-for-sale financial assets[16] Future Projections - The net profit attributable to shareholders for 2017 is expected to decline by 93.41% to 97.37%, ranging from 2 million to 5 million RMB compared to 75.91 million RMB in 2016[25] - The increase in expenses due to the amortization of equity incentives implemented in 2015 and 2016 is estimated to be approximately 60.57 million RMB in 2017[25] Compliance and Governance - The company reported no violations regarding external guarantees during the reporting period[28] - There were no non-operating fund occupations by controlling shareholders or their affiliates during the reporting period[29] - The company did not engage in any research, communication, or interview activities during the reporting period[30]

Financial Performance - The company reported a revenue of RMB 1.2 billion for the first half of 2017, representing a year-on-year increase of 15%[13]. - The net profit attributable to shareholders for the same period was RMB 150 million, up 10% compared to the previous year[13]. - Future guidance indicates an expected revenue growth of 25% for the second half of 2017, driven by new product launches[13]. - The company's operating revenue for the reporting period was ¥152,278,707.77, representing a 41.87% increase compared to the same period last year[18]. - The total revenue for the first half of 2017 was 147,223,397.98 CNY, an increase from 94,834,785.40 CNY in the same period last year, representing a growth of approximately 55.2%[144]. - The company reported a net loss of ¥65,048,114.20, compared to a net loss of ¥20,385,011.17 in the same period last year[139]. - The company reported a significant increase in revenue from the Central region, up 360.74% year-on-year, with a gross profit margin of 38.30%[39]. - The company reported a total comprehensive loss of -43,585,537.54 CNY for the first half of 2017, compared to -16,069,378.92 CNY in the same period last year, worsening by approximately 171.5%[145]. Investment and Development - The company plans to invest RMB 200 million in research and development for new technologies and products in the upcoming year[13]. - The company is focusing on the development of new energy products, including intelligent charging systems for electric vehicles and photovoltaic power generation equipment[25]. - Research and development expenses increased by 55.69% to ¥5,525,973.37, reflecting the initiation of new R&D projects during the reporting period[35]. - The company is exploring potential mergers and acquisitions to enhance its technological capabilities and market presence[13]. - The company plans to acquire 55% of Qunli Century for ¥577.5 million and 77.57% of Docomon for ¥1.383 billion as part of its major asset restructuring efforts[32]. Market Strategy - The company has outlined a market expansion strategy targeting Southeast Asia, aiming for a 30% increase in market share by the end of 2018[13]. - The electric business segment saw a significant revenue growth of 43% year-on-year, driven by enhanced market development efforts and international market exploration[31]. - The company achieved its first transaction in the new energy charging product sector during the reporting period, marking a strategic entry into this market[31]. Financial Position - The total assets of the company as of June 30, 2017, amounted to RMB 3 billion, reflecting a 12% increase from the previous year[13]. - The company's total assets increased to ¥2,181,672,660.20, compared to ¥2,127,919,020.47 at the end of the previous period[136]. - The company's equity attributable to shareholders decreased to ¥1,349,974,489.78 from ¥1,354,350,780.81, a decline of about 0.3%[132]. - The total liabilities amounted to ¥696,648,167.18, up from ¥687,937,597.65, reflecting an increase of approximately 1.0%[131]. Cash Flow and Liquidity - The net cash flow from operating activities was -¥46,175,088.07, reflecting a significant decline of 893.45% compared to the previous year[18]. - The company's cash and cash equivalents decreased by 83% to ¥73,843,431.55, primarily due to longer investment cycles for new investments[35]. - The cash flow from operating activities showed a net outflow of -46,175,088.07 CNY, a significant decline from a net inflow of 5,819,526.63 CNY in the same period last year[145]. - The cash and cash equivalents at the end of the period totaled 124,436,245.37 CNY, a decrease from 841,112,159.29 CNY at the end of the previous period, indicating a decline of about 85.2%[146]. Risk Management - The company has identified risks related to market competition and regulatory changes, with strategies in place to mitigate these risks[4]. - The company faces market risks due to economic policy changes and increased competition in the electrical equipment industry, which may lead to revenue volatility[66]. - The company will strengthen risk management and adjust investment strategies in response to market changes and economic uncertainties[66]. Shareholder Information - No cash dividends or stock bonuses will be distributed to shareholders for this period[5]. - The company will not distribute cash dividends or issue bonus shares for the half-year period[71]. - The first major shareholder and its concerted parties plan to increase their holdings by no less than 1 billion and no more than 10 billion within six months, with commitments to not reduce their holdings for 12 months after completion[74]. Compliance and Governance - The half-year financial report was not audited, indicating a potential area for improvement in financial transparency[127]. - The company has not reported any penalties or rectification situations during the reporting period, reflecting compliance with regulations[79]. - The company has no significant lawsuits or arbitration cases, with minor disputes being resolved through mediation[77]. Related Party Transactions - The company reported a total of 111.48 million yuan in related party transactions during the reporting period[89]. - The company did not engage in any asset or equity acquisition or sale related party transactions during the reporting period[90]. - There were no related party debts or credits during the reporting period[92]. Stock and Equity - The company completed the exercise of 840,000 stock options, increasing total shares from 825,744,768 to 826,854,768[107]. - The company repurchased and canceled 6,265,000 restricted shares, reducing total shares to 820,589,768[108]. - The total number of common shareholders at the end of the reporting period was 52,014[115].