Financial Performance - The company's operating revenue for 2021 was CNY 2,788,967,984.57, representing a 17.00% increase compared to CNY 2,383,704,942.48 in 2020[25] - The net profit attributable to shareholders for 2021 was CNY 238,048,110.30, a 47.48% increase from CNY 161,408,158.18 in 2020[25] - The net profit after deducting non-recurring gains and losses was CNY 169,889,651.09, up 15.42% from CNY 147,191,217.80 in 2020[25] - The net cash flow from operating activities was CNY 680,866,348.44, an increase of 8.37% compared to CNY 628,289,103.29 in 2020[25] - The basic earnings per share for 2021 was CNY 0.2813, a 46.13% increase from CNY 0.1925 in 2020[25] - The total assets at the end of 2021 were CNY 7,065,919,833.20, reflecting a 9.03% increase from CNY 6,480,446,949.22 at the end of 2020[25] - The net assets attributable to shareholders at the end of 2021 were CNY 5,029,700,958.30, a 6.85% increase from CNY 4,707,198,263.56 at the end of 2020[25] - The weighted average return on equity for 2021 was 4.86%, an increase of 1.37 percentage points from 3.49% in 2020[25] Cash Flow and Investments - The net cash flow from operating activities turned positive in Q4, reaching ¥1,619,940,025.06, indicating improved operational efficiency[29] - Cash inflow from operating activities rose by 32.91% to ¥4,130,386,152.00, while cash outflow increased by 39.13% to ¥3,449,519,803.56[109] - Investment activities generated a net cash outflow of ¥61,114,236.62, a 46.45% improvement compared to the previous year[110] - The company reported a significant increase in financing activities, with net cash flow rising by 249.21% to ¥62,182,091.94 due to employee stock subscription payments[110] - The total investment amount for the reporting period was ¥8,000,000, a decrease of 72.41% compared to ¥29,000,000 in the same period last year[120] Revenue Breakdown - The revenue from security chips and modules was ¥503,663,001.78, accounting for 18.06% of total revenue, with a year-on-year growth of 33.65%[83] - The revenue from integrated security services was ¥1,558,280,619.73, which is 55.87% of total revenue, showing a 9.27% increase compared to the previous year[83] - The revenue from the East China region increased by 41.73% to ¥308,068,429.89, contributing 11.05% to total revenue[83] - The top five customers contributed ¥893,999,043.82, representing 32.06% of total annual sales[94] Operational Efficiency - The company has outlined potential risks and countermeasures in its management discussion and analysis section[5] - The company anticipates a more stable revenue trend in the future due to reduced seasonal fluctuations in sales[86] - The company has established a comprehensive risk identification and dynamic security protection service centered on data, enhancing its security service capabilities through infrastructure upgrades and new product development[56] Research and Development - R&D expenses grew by 14.27% year-on-year, reaching ¥282,925,506.16[98] - R&D investment increased by 6.66% to ¥317,093,479.41 in 2021, accounting for 11.37% of operating revenue[105] - The number of R&D personnel remained stable at 930, but the proportion of R&D personnel to total staff decreased by 2.40% to 36.20%[105] - The company has completed the development of two embedded security SE products and validated the design of high-performance commercial security chips[99] Market and Industry Trends - The data security industry is expected to grow significantly, driven by increasing regulatory requirements and the need for enhanced data protection measures[37] - The regulatory environment is becoming more stringent, particularly regarding personal information protection, posing challenges for the internet industry[40] - The company is focusing on privacy computing technology, conducting research on key technologies such as MPC and cloud verifiable computing, and aims to achieve breakthroughs in quantum-resistant encryption algorithms[51] Governance and Compliance - The company maintains a robust governance structure, ensuring compliance with relevant laws and regulations while protecting shareholder interests[167] - The company adheres to legal and regulatory requirements for information disclosure, ensuring timely and accurate communication with shareholders[170] - The company’s governance structure aligns with the regulations set by the China Securities Regulatory Commission, with no significant discrepancies[175] Strategic Initiatives - The company aims to become a leading data security service provider, focusing on five key areas: basic security, network security, data security, security applications, and security services[142] - The company plans to enhance its market expansion in key industries such as finance, energy, transportation, telecommunications, and the internet[150] - The company is exploring potential mergers and acquisitions to enhance its market position and capabilities[187] Talent and Management - The company has a stable and high-quality talent team, continuously cultivating core talents in network security and establishing a solid foundation for technical research and management[65] - The company recognizes the risk of talent shortages as it expands its business and is focused on attracting high-quality professionals[159] - The management team has been strengthened with the appointment of experienced professionals from various sectors[188]

Financial Performance - The company's operating revenue for Q3 2021 was ¥692,528,270.56, representing a 26.69% increase compared to the same period last year[2]. - The net profit attributable to shareholders for Q3 2021 was ¥51,511,540.43, up 33.31% year-on-year[2]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥47,969,623.31, reflecting a 25.94% increase compared to the previous year[2]. - The basic earnings per share for Q3 2021 was ¥0.0610, a 32.32% increase compared to the same period last year[2]. - The company reported a significant reduction in short-term borrowings, which were not specified but indicated a decrease in overall financial leverage[10]. - Net profit for the period was ¥9,005,571.72, a turnaround from a net loss of ¥97,125,246.58 in the same period last year[12]. - The company reported a basic earnings per share of ¥0.0112, recovering from a loss of ¥0.1119 per share in the previous period[13]. - The total comprehensive income attributable to the parent company was ¥9,474,822.04, compared to a loss of ¥93,827,874.54 in the same period last year[13]. Assets and Liabilities - The total assets at the end of the reporting period were ¥6,215,671,057.62, a decrease of 4.09% from the end of the previous year[2]. - The company's current assets totaled RMB 4,239,763,256.38, down from RMB 4,546,666,327.11 at the end of 2020, indicating a decrease of about 6.7%[9]. - The total liabilities decreased to RMB 1,405,942,464.54 from RMB 1,762,596,906.43, marking a reduction of approximately 20.2%[10]. - The company's equity attributable to shareholders increased to RMB 4,798,321,064.17 from RMB 4,707,198,263.56, representing a growth of about 1.9%[10]. - The total assets of the company were reported at 6,480,446,949.22 CNY, a slight decrease from 6,493,116,045.21 CNY[18]. - Total liabilities amounted to 1,762,596,906.43, with a slight increase of 12,669,095.99 compared to the previous period[19]. - Total equity reached 4,717,850,042.79, remaining stable with no significant changes reported[19]. Cash Flow - The company's cash flow from operating activities showed a net outflow of ¥939,073,676.62, a decline of 146.34% year-on-year[2]. - Cash inflow from operating activities totaled ¥1,750,969,265.31, compared to ¥1,145,383,872.82 in the prior period, indicating a growth of 53.0%[14]. - The net cash flow from operating activities was -939,073,676.62 CNY, compared to -381,209,182.79 CNY in the previous year, indicating a significant increase in cash outflow[15]. - The net cash flow from financing activities was 71,521,541.47 CNY, a recovery from -41,689,369.25 CNY in the same period last year, showing improved financing conditions[16]. - The cash outflow from investment activities was -74,603,800.46 CNY, compared to -63,701,694.32 CNY in the previous year, reflecting increased investment expenditures[15]. - The company paid 16,783,487.28 CNY in dividends and interest, up from 15,944,312.91 CNY, indicating a commitment to shareholder returns[15]. - The cash inflow from financing activities totaled 90,462,565.62 CNY, demonstrating successful capital raising efforts[15]. Inventory and Assets Management - The company's inventory increased by 108.21% compared to the beginning of the year, driven by market expansion and increased procurement[4]. - The inventory increased significantly to RMB 990,002,352.96 from RMB 475,493,509.36, reflecting an increase of approximately 108.5% year-over-year[9]. - The accounts receivable rose to RMB 1,303,888,676.82, compared to RMB 1,274,671,255.83 at the end of 2020, showing a slight increase of about 2.3%[8]. - The company's contract assets grew by 54.12% year-to-date, attributed to increased sales revenue[4]. Strategic Initiatives - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[9]. - The company is exploring strategic mergers and acquisitions to enhance its market position and technological capabilities[9]. - The company has not disclosed any new product developments or market expansion strategies in the current report[22]. - There were no significant mergers or acquisitions mentioned in the financial report[22]. Accounting and Reporting - The company executed the new leasing standard starting January 1, 2021, with adjustments affecting the consolidated balance sheet[20]. - The company did not conduct an audit for the third quarter report, which may affect the reliability of the financial data presented[21]. - The company reported a right-of-use asset of 11,711,330.40 as of September 30, 2021, reflecting the impact of the new leasing standard[21]. - The lease liabilities were recorded at 7,207,131.65, indicating a consistent application of the new accounting policy[21]. - The non-current liabilities due within one year were reported at 3,658,971.46, showing a stable financial position[21].

Financial Performance - The company's operating revenue for the first half of 2021 was ¥843,673,221.29, representing a 94.75% increase compared to ¥433,201,606.29 in the same period last year[11]. - The net profit attributable to shareholders of the listed company was -¥42,036,718.39, an improvement of 68.27% from -¥132,469,405.51 in the previous year[11]. - The basic earnings per share were -¥0.0498, showing a 68.48% improvement from -¥0.1580 in the previous year[11]. - The net cash flow from operating activities was -¥935,514,161.12, which is a decline of 131.87% compared to -¥403,466,487.67 in the same period last year[11]. - The company's total liabilities decreased to ¥1,324,696,353.42 from ¥1,762,596,906.43, a reduction of approximately 25%[133]. - The company's total profit for the first half of 2021 was a loss of ¥45,924,316.12, an improvement from a loss of ¥88,460,402.11 in the same period of 2020, indicating a reduction in losses by approximately 48.0%[143]. Assets and Liabilities - Total assets at the end of the reporting period were ¥6,079,490,664.60, a decrease of 6.19% from ¥6,480,446,949.22 at the end of the previous year[11]. - Cash and cash equivalents at the end of the reporting period were 1,082,427,802.73 yuan, constituting 17.80% of total assets, a decrease of 12.83% from the previous year[63]. - Total current assets decreased to ¥4,101,330,698.37 as of June 30, 2021, down from ¥4,546,666,327.11 at the end of 2020, representing a decline of approximately 9.8%[132]. - The company's equity attributable to shareholders increased to ¥4,743,870,732.79 from ¥4,707,198,263.56, showing a growth of about 0.8%[134]. - The total amount of debt claims received by the management as of January 24, 2021, is 10.065 billion yuan, excluding housing payments of 5.699 billion yuan[88]. Research and Development - Research and development investment amounted to ¥179,285,656.27, up 28.94% from ¥139,047,427.54 year-on-year[55]. - The company aims to focus on innovative research in areas such as 5G security, blockchain, and IoT security to ensure sustainable development[75]. - The company is actively developing data security solutions, particularly in privacy computing and data sharing, while participating in national data security standards formulation[25]. Market Position and Strategy - The company focuses on network security, enhancing its product system and establishing itself as a key player in the password and network security industry[18]. - The network security market in China is experiencing rapid growth, driven by the implementation of national laws and regulations such as the Data Security Law and the Password Law[42]. - By 2023, the network security industry is expected to exceed 250 billion yuan, with a compound annual growth rate of over 15%[44]. - The company has established strategic partnerships with over 30 major enterprises and organizations, including Huawei and the National Information Center, to enhance its security ecosystem[26]. Corporate Governance and Management - The company plans not to distribute cash dividends or bonus shares for this reporting period[2]. - The company has undergone changes in senior management, with new appointments made in April 2021[79]. - The company introduced a long-term incentive plan for core talent, enhancing team stability and performance[53]. Social Responsibility - The company has purchased agricultural products worth RMB 520,000 from poverty alleviation enterprises as part of its social responsibility efforts[84]. - The company has been actively involved in targeted poverty alleviation for six consecutive years, including educational support for students[84]. Legal and Compliance - There were no violations regarding external guarantees during the reporting period[87]. - The company has not experienced any administrative penalties related to environmental issues during the reporting period[83]. - The company is involved in multiple lawsuits, with one case involving a claim amount of 30.8959 million yuan, which has been supported by a first-instance judgment[94]. Financial Reporting and Audit - The semi-annual financial report was not audited[130]. - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance, reflecting the company's financial position and operating results accurately[171]. Stock and Shareholder Information - The total number of common shareholders at the end of the reporting period was 44,623[119]. - The largest shareholder, China Electronics Technology Network Information Security Co., Ltd., holds 35.10% of shares, totaling 297,034,156 shares[120]. - The company completed the grant registration of 7,958,575 restricted stocks under the long-term incentive plan, increasing the total share capital from 838,336,028 shares to 846,294,603 shares[110].

Financial Performance - The company's operating revenue for Q1 2021 was ¥282,760,122.23, representing a 379.00% increase compared to ¥59,030,952.58 in the same period last year[3] - The net profit attributable to shareholders was -¥76,199,276.00, an improvement of 43.91% from -¥135,858,021.11 year-on-year[3] - Total operating revenue increased by 379.00% year-on-year, as the company stabilized its operations after the pandemic impact in the previous year[9] - The net loss for Q1 2021 was CNY 77,455,314.56, compared to a net loss of CNY 137,171,481.63 in the previous year, showing an improvement of approximately 43.6%[29] - The total comprehensive loss for Q1 2021 was CNY 77,455,314.56, compared to CNY 137,171,481.63 in the previous year, indicating a reduction of about 43.6%[29] Cash Flow - The net cash flow from operating activities was -¥786,030,148.19, which is a decline of 85.00% compared to -¥424,884,301.47 in the previous year[3] - Operating cash inflow increased by 116.36% year-on-year, as the previous year was affected by pandemic-related delays in sales collections and government subsidies[10] - Cash inflows from operating activities totaled ¥365,348,445.55, up from ¥168,858,934.81 in the previous period, showing an increase of approximately 116%[33] - The net cash flow from operating activities was a negative ¥786,030,148.19, worsening from a negative ¥424,884,301.47 in the previous period[34] - The net cash flow from investing activities was -19,367,471.95 CNY, a decrease from 68,584,621.45 CNY in the prior period[37] Assets and Liabilities - The total assets at the end of the reporting period were ¥6,097,266,571.33, down 5.91% from ¥6,480,446,949.22 at the end of the previous year[3] - Total assets decreased from ¥6,480,446,949.22 to ¥6,097,266,571.33, a decline of approximately 5.9%[21] - Current liabilities decreased from ¥1,732,920,688.02 to ¥1,323,277,922.22, a reduction of about 23.6%[22] - Non-current liabilities increased from ¥29,676,218.41 to ¥38,781,261.63, an increase of approximately 30.5%[22] - Total liabilities decreased to CNY 480,316,430.32 from CNY 487,030,902.77, reflecting a reduction of about 1.5%[26] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 50,184[5] - The largest shareholder, China Electronics Technology Network Information Security Co., Ltd., holds 35.10% of the shares, totaling 297,034,156 shares[5] - The company did not engage in any repurchase transactions during the reporting period[6] Expenses - Operating costs rose by 307.83% year-on-year, reflecting the significant increase in operating revenue[9] - Research and development expenses for Q1 2021 were CNY 90,006,358.75, compared to CNY 74,071,737.70 in the previous year, indicating an increase of about 21.5%[27] - The company incurred research and development expenses of ¥32,879,378.08, an increase from ¥26,200,712.09 in the prior period, representing a growth of approximately 25%[31] Government Support - The company received government subsidies amounting to ¥1,765,438.38 during the reporting period[4] Other Financial Metrics - The weighted average return on net assets was -1.61%, an increase of 1.42 percentage points from -3.03% in the same period last year[3] - There were no non-recurring gains or losses defined as regular gains or losses during the reporting period[4] - The company reported a credit impairment loss of CNY 14,368,220.39, up from CNY 4,512,194.54 year-over-year, representing an increase of approximately 218%[27]

Financial Performance - The company's operating revenue for 2020 was CNY 2,383,704,942.48, representing a 13.31% increase compared to CNY 2,103,759,987.90 in 2019[23] - The net profit attributable to shareholders of the listed company was CNY 161,408,158.18, a 3.62% increase from CNY 155,765,488.34 in the previous year[23] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 147,191,217.80, which is a 21.74% increase from CNY 120,905,436.58 in 2019[23] - The net cash flow from operating activities was CNY 628,289,103.29, a significant increase of 741.86% compared to a negative cash flow of CNY -97,886,037.33 in 2019[23] - Basic earnings per share (EPS) increased to 0.1925 CNY, up 3.61% from 0.1858 CNY[27] - Total assets reached 6,480,446,949.22 CNY, representing an 8.79% increase from 5,956,625,043.53 CNY at the end of 2019[27] - The company reported a weighted average return on equity of 3.49%, a slight increase of 0.01 percentage points from 3.48%[27] - The company reported a total accounts receivable of ¥1,519,745,709.28 as of December 31, 2019, which was adjusted to ¥1,421,851,263.97 after the implementation of the new revenue standard[155] Dividend Distribution - The company plans to distribute a cash dividend of CNY 0.2 per 10 shares, based on a total of 846,294,603 shares[6] - The cash dividend amount for 2020 was CNY 16,925,892.06, representing 10.49% of the net profit attributable to ordinary shareholders[129] - The total cash dividend (including other forms) for 2020 was CNY 16,925,892.06, which accounted for 100% of the total distributable profit[132] - The cash dividend per 10 shares for 2020 was CNY 0.20 (including tax)[132] - The cash dividend amount for 2019 was CNY 15,928,384.53, which was 10.23% of the net profit[129] - The cash dividend amount for 2018 was CNY 12,575,040.42, representing 10.46% of the net profit[129] - The total distributable profit for 2020 was CNY 156,895,910.15[132] - The company did not distribute any shares as dividends in 2020[132] Business Operations and Strategy - The company has not changed its main business since its listing, maintaining its focus on information security[21] - The company is under the control of China Electronics Technology Group Corporation, ensuring stability in management and operations[21] - The company has outlined potential risks and corresponding measures in its annual report, emphasizing the importance of investor awareness regarding investment risks[6] - The company has been focusing on the development of cybersecurity products, including password-based products and general security products[37] - The company aims to expand its market presence in key sectors such as government, finance, and energy through its security services and integrated solutions[37] - The company launched a mid-term development plan focusing on "service-oriented security, ubiquitous encryption, intelligent attack and defense, and domestic foundation" to align resources with transformation goals[57] - The company plans to focus on high-security application services and leverage opportunities from "new infrastructure" initiatives[114] - The company aims to strengthen its new business development, particularly in security operation services and mobile office solutions, while exploring new applications in 5G security, energy security, and artificial intelligence[116] Research and Development - The company holds 206 invention patents and 374 software copyrights, demonstrating its strong emphasis on R&D and technological innovation[45] - Research and development expenses increased by 29.23% to ¥247,594,767.24, reflecting a focus on new technologies and products[72] - R&D investment increased by 20.51% to ¥297,304,911.64 in 2020, accounting for 12.47% of operating revenue[76] - The number of R&D personnel rose by 9.03% to 930, while the proportion of R&D personnel decreased by 2.79% to 38.60%[76] - The company completed the development of several new products, including the V1.0, V1.1, and V1.2 versions of the password service platform[76] Legal and Compliance - The company has committed to timely and accurate disclosure of significant information affecting investors, adhering to relevant laws and regulations[143] - The company’s board of directors has emphasized the importance of compliance with the Company Law and Securities Law in its operations[145] - The company has faced legal challenges regarding a property purchase, which is currently under litigation, affecting its financial reporting[149] - The company’s financial statements received a clean audit opinion with an emphasis on certain matters related to ongoing litigation[150] - The company will continue to monitor the progress of ongoing legal matters and will take necessary actions to protect its rights[150] - The company is currently involved in 122 lawsuits, with ongoing proceedings in several cases[170] Market and Competition - The company is facing increased market competition due to the growing number of traditional and new entrants in the cybersecurity sector, necessitating a focus on enhancing its core competitiveness[120] - The company anticipates rapid growth in the network security industry driven by new demands for products and services due to evolving regulations and policies[112] Corporate Governance - The company has committed to avoiding unnecessary related party transactions with its subsidiaries[133] - The company plans to maintain its independence and ensure that its operations and finances remain separate from its controlling entities[136] - The company’s major shareholder has pledged to avoid any actions that could harm the interests of the company or its shareholders[141] - The company has reported no non-operating fund occupation by major shareholders during the reporting period[144] Social Responsibility - The company actively fulfilled its corporate social responsibilities, participating in various community support activities[198] - The company is not classified as a key pollutant discharge unit by environmental protection authorities and promotes low-carbon operations[200]

Financial Performance - Net profit attributable to shareholders was CNY 38,641,530.97, representing a significant increase of 104.73% year-on-year[3]. - Operating revenue for the reporting period reached CNY 546,628,20, marking a year-on-year growth of 26.62%[3]. - Basic earnings per share were CNY 0.0461, reflecting a growth of 229.29% year-on-year[3]. - The net profit for the period was ¥25,401,477.74, compared to ¥17,528,416.82 in the previous year, representing a growth of 45.0%[27]. - The net profit for the current period is 36,386,342.78, compared to 20,084,758.23 in the previous period, representing an increase of approximately 81%[28]. - The total comprehensive income for the current period is 36,386,342.78, up from 20,084,758.23 in the previous period, indicating a growth of around 81%[28]. - The basic and diluted earnings per share for the current period are both 0.0461, compared to 0.0140 in the previous period, reflecting a significant increase of approximately 229%[28]. Cash Flow and Liquidity - The net cash flow from operating activities was CNY 22,257,304.88, an increase of 200.71% compared to the same period last year[3]. - Cash and cash equivalents decreased by 32.22% compared to the beginning of the year, primarily due to procurement and tax payments[11]. - The company's operating cash inflow for the current period was CNY 1,145,383,872.82, an increase from CNY 1,123,219,144.51 in the previous period, reflecting a growth of approximately 2.3%[40]. - The net cash outflow from operating activities improved to CNY -381,209,182.79 from CNY -602,562,839.98, indicating a reduction in cash burn of about 36.7%[40]. - The total cash outflow from investing activities was CNY 63,769,479.32, compared to CNY 62,178,833.00 in the previous period, showing a slight increase of 2.6%[41]. - The cash and cash equivalents at the end of the period stood at CNY 1,001,323,983.81, a decrease from CNY 1,008,520,534.13 in the previous period[41]. - The total cash and cash equivalents decreased by CNY 486,600,246.36 during the period, compared to a decrease of CNY 922,778,056.24 in the previous period, indicating a significant reduction in cash outflow[41]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 5,718,126,737.37, a decrease of 4.00% compared to the end of the previous year[3]. - Total liabilities decreased from approximately 1.35 billion to 1.26 billion year-on-year[22]. - The company's total assets decreased to ¥4,085,863,515.80 from ¥4,262,529,884.67, a decline of 4.2%[26]. - Current liabilities totaled CNY 1,314,835,274.26, with accounts payable at CNY 956,996,862.57[45]. - The company’s total liabilities stand at CNY 1,353,984,944.41[45]. - Total equity reached ¥3,716,391,993.55, including share capital of ¥838,336,028.00 and retained earnings of ¥160,257,035.39[49]. Shareholder Information - The total number of shareholders at the end of the reporting period was 53,044, with the top ten shareholders holding a significant portion of shares[6]. - The largest shareholder, China Electronics Technology Network Information Security Co., Ltd., held 35.43% of the shares[6]. - The company did not engage in any repurchase transactions during the reporting period[8]. Research and Development - R&D expenses grew by 37.18% year-on-year, reflecting increased investment in key product development[11]. - Research and development expenses increased to ¥52,609,808.87 from ¥33,516,320.67, a rise of 57.0%[27]. - Research and development expenses increased to 19,942,830.83 from 13,079,357.22 in the previous period, marking an increase of about 52%[31]. - Research and development expenses increased to ¥170,007,081.31 in Q3 2020, up 37% from ¥123,928,270.28 in Q3 2019[34]. Financial Warnings and Risks - The company reported a net profit warning for the upcoming period, indicating potential losses or significant changes compared to the same period last year[16]. - The company reported a credit impairment loss of ¥34,810,422.34, compared to ¥7,449,068.61 in the previous year, indicating a significant increase in credit risk[27]. - The company reported a credit impairment loss of ¥39,999,510.46 in Q3 2020, significantly higher than the loss of ¥9,858,377.90 in Q3 2019[34]. Operational Performance - Total operating revenue for Q3 2020 reached ¥546,628,201.07, an increase of 26.6% compared to ¥431,712,527.50 in the same period last year[26]. - Total operating costs amounted to ¥489,188,723.86, up from ¥422,532,645.96, reflecting a year-over-year increase of 15.8%[27]. - The company's operating revenue for Q3 2020 was ¥86,268,007.01, a decrease of 49.6% compared to ¥171,374,101.86 in the same period last year[37]. - The total operating profit for the current period is -23,219,363.74, compared to -8,828,151.62 in the previous period, indicating a worsening of approximately 163%[31]. - The total revenue for the consolidated period is 979,829,807.36, down from 1,043,318,386.97 in the previous period, reflecting a decrease of about 6%[33]. - The total operating costs for the consolidated period are 1,094,895,150.47, compared to 1,144,791,060.25 in the previous period, which is a decrease of approximately 4%[33].

Financial Performance - The company's operating revenue for the first half of 2020 was ¥433,201,606.29, a decrease of 29.17% compared to ¥611,605,859.47 in the same period last year[11]. - The net profit attributable to shareholders of the listed company was -¥132,469,405.51, representing a decline of 60.61% from -¥82,478,718.06 in the previous year[11]. - The basic earnings per share were -¥0.1580, a decrease of 60.57% from -¥0.0984 in the same period last year[11]. - The diluted earnings per share were also -¥0.1580, reflecting the same percentage decrease as the basic earnings per share[11]. - The weighted average return on net assets was -2.96%, a decline of 1.07 percentage points from -1.89% in the previous year[11]. - The operating cost decreased by 34.59% to ¥284,876,841.07 from ¥435,524,965.07, also influenced by the pandemic[28]. - The net profit attributable to the parent company was -132.47 million yuan, an increase in loss of 60.61% year-on-year[26]. - The company reported a significant reduction in cash and cash equivalents, with a net decrease of ¥458,920,801.26, a 47.22% improvement from the previous year's decrease[28]. - The company reported a net loss of CNY 68,647,469.60 from its subsidiary Chengdu Weishi Communication Information Security Technology Co., Ltd.[47]. Assets and Liabilities - Total assets at the end of the reporting period were ¥5,533,900,825.60, down 7.10% from ¥5,956,625,043.53 at the end of the previous year[11]. - The net assets attributable to shareholders of the listed company decreased by 3.25%, totaling ¥4,402,829,596.56 compared to ¥4,550,793,991.85 at the end of the previous year[11]. - Cash and cash equivalents at the end of the reporting period amounted to ¥1,038,242,815.96, accounting for 18.76% of total assets, a decrease of 0.45% compared to the previous year[35]. - Accounts receivable totaled ¥1,461,367,460.73, representing 26.41% of total assets, down by 5.87% from the same period last year[35]. - Inventory increased to ¥394,317,955.98, which is 7.13% of total assets, reflecting a rise of 0.57% year-on-year[35]. - Total liabilities decreased from CNY 1,353,984,944.41 to CNY 1,109,387,950.87, a decrease of about 18.1%[93]. - Current liabilities decreased from CNY 1,314,835,274.26 to CNY 1,066,768,080.72, a decline of approximately 18.8%[93]. Research and Development - The company has been engaged in the development and research of cybersecurity products for over 20 years, covering security products, services, and integration[16]. - The company has 145 invention patents and 389 software copyrights, emphasizing its strong focus on R&D and technological innovation[23]. - Research and development investment increased by 16.81% to ¥139,047,427.54 from ¥119,039,006.72, indicating a commitment to innovation[28]. - The company is actively developing a high-performance security SoC chip, which will significantly enhance its competitiveness in core security products[26]. - The company is planning to strengthen research in 5G security, blockchain, post-quantum cryptography, and IoT security to ensure sustainable development[51]. Market and Industry Outlook - The macroeconomic environment remains favorable for the cybersecurity industry, with policies supporting "new infrastructure" and "new technologies" being prioritized, indicating growth opportunities in the next 3-5 years[18]. - The company is focusing on expanding its market presence in sectors such as finance and energy, leveraging new opportunities from policies like the "Password Law" and "New Infrastructure" initiatives[26]. - The company faces increasing market competition due to the rise of cybersecurity threats and the entry of traditional and new players into the market[50]. - The company aims to enhance its market competitiveness by improving core competencies and strengthening technology exchanges and product collaborations[50]. Government Subsidies and Financial Management - The company received government subsidies amounting to ¥482,546.00 during the reporting period[13]. - The company does not plan to distribute cash dividends or issue bonus shares for this reporting period[4]. - The company approved the use of CNY 114,230.29 million of raised funds to replace pre-invested self-raised funds for the implementation of fundraising projects[42]. - The company temporarily supplemented working capital with idle raised funds, with a total not exceeding CNY 80,000 million, to be returned within six months[42]. Legal Matters and Risks - The company has filed a claim for 149 million RMB related to overdue delivery and compensation against a bankrupt developer, which may impact its financial position[56]. - The company is involved in multiple lawsuits, including a significant case with a claim amount of 1,000,000 yuan related to a debt transfer contract dispute, which has been rejected by the second instance court[60]. - The company is currently facing a contract dispute case with a claim amount of 2,153.33 million yuan, which has been accepted by the Kunming Intermediate People's Court[61]. - The company has not disclosed any significant impact from the ongoing lawsuits as of the reporting date[60]. Corporate Governance and Structure - The company has established a party committee to enhance its political standing and corporate culture, focusing on employee satisfaction and talent development[27]. - The company appointed a new deputy general manager on April 27, 2020, following the resignation of the previous deputy general manager on April 3, 2020[88]. - The company has a stable core talent team, supported by partnerships with well-known universities and research institutions[24]. - The company has not identified any significant doubts regarding its ability to continue as a going concern for the next 12 months[125]. Accounting Policies and Estimates - The company follows specific accounting policies and estimates based on its operational characteristics, including inventory valuation methods and expected credit loss provisions for receivables[126]. - Significant accounting estimates may impact the carrying values of assets and liabilities, particularly in areas such as expected credit losses for receivables and inventory impairment[126]. - The company recognizes deferred tax assets and liabilities, with significant judgment required in tax matters that may affect the recognized amounts[126]. Environmental and Social Responsibility - The company and its subsidiaries are not classified as key pollutant discharge units and emphasize environmental protection in their operations[73]. - The company maintained a low-carbon office environment with no waste, wastewater, or gas emissions[73]. - The company did not conduct any poverty alleviation initiatives during the reporting period and has no plans for future initiatives[74].

Financial Performance - The company's operating revenue for Q1 2020 was ¥59,030,952.58, a decrease of 64.22% compared to ¥165,005,851.19 in the same period last year[3]. - The net profit attributable to shareholders was -¥135,858,021.11, representing a decline of 71.51% from -¥79,214,430.19 in the previous year[3]. - The basic earnings per share were -¥0.1621, a decrease of 71.53% from -¥0.0945 in the previous year[3]. - Total revenue decreased by 64.22% year-on-year, significantly affected by the pandemic[10]. - Operating profit for the first quarter was a loss of CNY 166,959,924.35, compared to a loss of CNY 92,562,812.56 in the same period last year[24]. - Net profit for the first quarter was a loss of CNY 137,171,481.63, compared to a loss of CNY 79,161,639.05 in the previous year, reflecting a 73.2% increase in losses[25]. - The total comprehensive loss for the first quarter was CNY 137,171,481.63, compared to a loss of CNY 79,161,639.05 in the previous year[25]. Cash Flow and Liquidity - The net cash flow from operating activities improved by 7.83%, amounting to -¥424,884,301.47 compared to -¥460,954,041.42 in the same period last year[3]. - Total cash inflow from operating activities is 168,858,934.81 CNY, down 43.0% from 296,289,617.50 CNY in the previous period[30]. - Cash outflow from operating activities is 593,743,236.28 CNY, a decrease of 21.6% compared to 757,243,658.92 CNY in the previous period[32]. - The net cash flow from financing activities is -24,391,805.52 CNY, compared to -250,205,312.50 CNY in the previous period, indicating a significant reduction in cash outflow[32]. - The ending cash and cash equivalents balance is 1,021,300,349.81 CNY, down from 1,205,570,829.97 CNY in the previous period[32]. - The company’s cash and cash equivalents decreased by 466,623,880.36 CNY in the current period, compared to a decrease of 725,727,760.40 CNY in the previous period[32]. Assets and Liabilities - Total assets at the end of the reporting period were ¥5,552,420,590.68, down 6.79% from ¥5,956,625,043.53 at the end of the previous year[3]. - Total liabilities decreased to CNY 1,115,639,223.69 from CNY 1,353,984,944.41, reflecting a reduction of approximately 17.6%[19]. - Total current liabilities were CNY 1,073,499,353.54, down from CNY 1,314,835,274.26, indicating a reduction of approximately 18.3%[19]. - The company reported total liabilities of CNY 1,353,984,944.41, with current liabilities at CNY 1,314,835,274.26[36]. - The company’s total non-current liabilities were CNY 39,149,670.15[36]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 44,922[6]. - The largest shareholder, China Electronics Technology Network Information Security Co., Ltd., holds 35.43% of the shares[6]. - The net assets attributable to shareholders decreased by 2.39%, totaling ¥4,442,235,675.41 compared to ¥4,550,793,991.85 at the end of the previous year[3]. - Total equity attributable to shareholders of the parent company was CNY 4,442,235,675.41, down from CNY 4,550,793,991.85, indicating a decline of about 2.4%[19]. Operational Impact - Cash and cash equivalents decreased by 31.29% compared to the beginning of the year, primarily due to the impact of the pandemic on operational activities in Q1 2020[10]. - Inventory increased by 34.60% compared to the beginning of the year, as the company pre-produced mainstream products but could not sell them due to the pandemic[10]. - Operating costs decreased by 64.57% year-on-year, in line with the sharp decline in revenue[10]. - Other income decreased by 92.31% year-on-year, mainly due to delayed resumption of work nationwide and delays in VAT refund processing[11]. - The company experienced a significant increase in management expenses, which totaled CNY 38,887,843.31, down from CNY 44,284,316.34 in the previous year[24]. Government Support - The company received government subsidies amounting to ¥14,760.00 during the reporting period[4]. Accounting Changes - The company executed a new revenue recognition standard starting January 1, 2020, which does not involve retrospective adjustments[39].

Financial Performance - The company's operating revenue for 2019 was CNY 2,103,759,987.90, representing an increase of 8.95% compared to CNY 1,930,998,380.73 in 2018[12]. - The net profit attributable to shareholders of the listed company was CNY 155,765,488.34, a growth of 29.58% from CNY 120,204,513.73 in the previous year[12]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 120,905,436.58, reflecting a 19.93% increase from CNY 100,816,597.78 in 2018[12]. - Basic earnings per share increased by 29.57% to CNY 0.1858 from CNY 0.1434 in 2018[13]. - Weighted average return on equity rose to 3.48%, an increase of 0.70 percentage points compared to 2.78% in 2018[13]. - Total assets decreased by 4.24% to CNY 5,956,625,043.53 from CNY 6,220,278,883.90 in 2018[13]. - The company reported a total comprehensive income of ¥159,485,474.61 for 2019, compared to ¥124,482,265.34 in 2018, marking a growth of 28.14%[189]. - The company's total profit for 2019 was ¥152,625,933.35, compared to ¥128,426,139.00 in 2018, reflecting an increase of 18.83%[187]. Cash Flow and Investments - The net cash flow from operating activities was negative CNY 97,886,037.33, a significant decline of 397.81% compared to a positive cash flow of CNY 32,868,957.49 in 2018[12]. - The company reported a total cash inflow from operating activities of ¥2,310,379,524.54 in 2019, an increase of 8.59% from ¥2,127,530,560.06 in 2018[48]. - Cash and cash equivalents decreased significantly from CNY 505,016,454.52 in 2018 to CNY 98,342,460.09 in 2019, a decline of about 80.5%[182]. - The company reported a cash inflow of CNY 1,050,000.00 from financing activities in 2019, compared to CNY 250,000,000.00 in 2018, showing a significant decrease[194]. - Cash outflow from financing activities was CNY 262,773,033.10, compared to CNY 41,942,064.43 in the previous year, indicating increased debt repayment[196]. - The net increase in cash and cash equivalents was CNY -406,680,280.83, compared to a positive increase of CNY 314,623,742.23 in the previous year, highlighting liquidity challenges[196]. Research and Development - The company has a strong emphasis on research and development in the field of information security, with a focus on cloud and IoT security products[21]. - The company reported a total of 67 R&D projects in 2019, focusing on high-end security chips and various security products[44]. - The company invested a total of ¥246,707,980.63 in R&D in 2019, representing a 2.51% increase from ¥240,663,931.93 in 2018[45]. - Investment in R&D increased by 30%, focusing on cybersecurity technologies and solutions[136]. Market and Product Development - The company focuses on developing security products, including cryptographic products, network security products, and cloud security products[19]. - The company is expanding its market presence in mobile internet security solutions targeting government and military sectors[20]. - The company launched nearly 30 key products, including security services and integrated systems, enhancing its product portfolio[32]. - The company plans to enhance its market presence by deepening its focus on key industries such as government, finance, and energy, while expanding into international markets[69]. - The company aims to transform from a cybersecurity product provider to a cybersecurity operation service provider, focusing on the trend of "security as a service"[68]. Governance and Compliance - The company has established a comprehensive risk management system to enhance legal review and internal auditing[71]. - The board of directors consists of nine members, including three independent directors, ensuring a balanced governance structure[148]. - The company has committed to timely and accurate disclosure of significant information affecting investors, adhering to regulatory requirements[80]. - The company received an unqualified audit report with an emphasis of matter from Da Hua Accounting Firm for the fiscal year 2019[82]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of CNY 0.19 per 10 shares, totaling CNY 159,000,000 based on 838,336,028 shares[4]. - The company distributed a cash dividend of 0.19 yuan per 10 shares, totaling 15,928,384.53 yuan, which represents 10.23% of the net profit attributable to ordinary shareholders[74]. - The total number of shareholders at the end of the reporting period was 41,683, with no changes in voting rights[118]. Legal and Regulatory Matters - The company is currently involved in 122 litigation cases, with ongoing proceedings in various courts[95]. - The company is currently unable to estimate the impact of the ongoing litigation and bankruptcy proceedings on its profits[85]. - The company has not encountered any situations that could lead to suspension or termination of its listing[94]. Social Responsibility and Environmental Commitment - The company actively engaged in social responsibility initiatives, including participating in educational support activities and purchasing over 2,000 agricultural products from impoverished areas valued at over 500,000 CNY[109]. - The company maintained a commitment to environmental protection, ensuring no wastewater, waste gas, or waste material emissions during operations[111].

Financial Performance - Operating revenue for the reporting period was CNY 431,712,527.50, down 2.71% year-on-year[3] - Net profit attributable to shareholders was CNY 18,874,474.48, a decrease of 4.54% compared to the same period last year[3] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 18,723,589.57, a decrease of 4.22% year-on-year[3] - Basic earnings per share were CNY 0.0140, down 40.68% from the same period last year[3] - Total operating revenue for Q3 2019 was CNY 431,712,527.50, a decrease of 2.33% compared to CNY 443,749,752.81 in the same period last year[26] - Net profit for Q3 2019 was CNY 20,084,758.23, down 8.38% from CNY 21,917,441.90 in Q3 2018[27] - The company reported a gross profit margin of approximately 2.73% for Q3 2019, compared to 3.00% in the same period last year[26] - The company reported a net profit attributable to shareholders of ¥-63,604,244, compared to ¥-73,462,221 in the previous period, showing an improvement of 13.5%[33] Cash Flow - The net cash flow from operating activities was CNY -22,101,158.99, improving by 81.34% compared to the previous year[3] - Cash flow from operating activities showed a net outflow of CNY 602.56 million, worsening from a net outflow of CNY 564.46 million in the same period last year[38] - Cash inflow from operating activities totaled 214,577,868.32 yuan, compared to 166,098,661.52 yuan in the previous period, reflecting a 29.1% increase[40] - Cash outflow from operating activities was 283,488,514.14 yuan, up from 254,914,641.33 yuan, representing an increase of 11.3%[40] - The cash flow from investing activities showed a net outflow of 119,652,940.21 yuan, significantly higher than the previous period's outflow of 6,252,572.83 yuan[41] Assets and Liabilities - Total assets at the end of the reporting period were CNY 5,569,563,599.51, a decrease of 10.46% compared to the end of the previous year[3] - Cash and cash equivalents decreased by 47.51% compared to the beginning of the year, primarily due to the repayment of a 250 million RMB loan, inventory purchases, and tax payments from the previous year[9] - Other current assets increased by 41.37% compared to the beginning of the year, mainly due to increased inventory purchases and deductible input tax[9] - The total liabilities decreased from ¥1,765,599,218.97 to ¥1,190,517,068.31, reflecting a reduction of about 32.5%[21] - The total equity attributable to shareholders decreased from ¥4,406,885,517.19 to ¥4,330,706,233.19, a decline of approximately 1.7%[22] - The total assets amounted to 6,220,278,883.90 yuan, remaining unchanged from the previous period[44] - The total liabilities were 1,689,200,858.75 yuan, consistent with the previous period's figures[44] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 32,250[5] - The largest shareholder, China Electronics Technology Network Information Security Co., Ltd., held 35.43% of the shares[5] - The company’s major shareholder, China Electronics Technology Network Information Security Co., Ltd., holds approximately 35.43% of the total share capital after share transfers[6] Research and Development - Development expenditures grew by 59.31% compared to the beginning of the year, reflecting an increase in capitalized R&D expenses[9] - Research and development expenses for Q3 2019 were CNY 33,516,320.67, down 27.77% from CNY 46,408,515.11 in Q3 2018[27] - Research and development expenses decreased to ¥13,079,357, down 65.8% from ¥38,264,942 in the previous period[29] Financial Management - The company has not reported any overdue or unrecoverable amounts related to entrusted financial management, indicating a stable financial management strategy[17] - The company reported a significant reduction in short-term borrowings, which were not listed in the current report compared to ¥250,000,000.00 in the previous period[20] - Financial expenses increased by 33.61% year-on-year, attributed to the gradual use of raised funds and a decrease in interest income due to lower market rates[10] Other Notable Points - The company did not engage in any repurchase transactions during the reporting period[7] - The company reported a 100.00% increase in credit impairment losses year-on-year, due to the implementation of new financial instrument standards[10] - The company is facing potential impacts from the bankruptcy proceedings of a developer related to a property project purchased with raised funds[11] - The company has deferred income of CNY 76,398,360.22, contributing to non-current liabilities[45] - The company’s retained earnings stood at CNY 923,461,339.03, indicating a strong profit retention strategy[45] - The company has not undergone an audit for the third quarter report, which may affect the reliability of the financial data presented[50]