Financial Performance - The company's operating revenue for the first half of 2020 was ¥1,264,601,697.05, representing a 15.01% increase compared to ¥1,099,597,120.74 in the same period last year[16]. - The net profit attributable to shareholders of the listed company was -¥109,037,648.28, compared to -¥83,078,653.20 in the previous year[16]. - The net cash flow from operating activities was -¥170,786,959.26, an improvement from -¥279,052,823.60 in the same period last year[16]. - Total assets at the end of the reporting period were ¥2,594,370,840.13, a decrease of 14.55% from ¥3,036,280,249.02 at the end of the previous year[16]. - The net assets attributable to shareholders of the listed company decreased by 24.13% to ¥881,872,395.61 from ¥1,162,415,452.99 at the end of the previous year[16]. - The basic and diluted earnings per share were both -¥0.1533, compared to -¥0.1168 in the same period last year[16]. - The company reported a net loss of CNY 258,536,555.69 for the period, compared to a profit of CNY 14,922,706.30 in the previous period[185]. - The net loss for the first half of 2020 was ¥118,326,140.86, compared to a net loss of ¥90,486,871.49 in the first half of 2019, indicating a worsening of approximately 31%[192]. Revenue Breakdown - The management software business generated revenue of 13,569.05 million CNY, a decline of 45.05% year-on-year, while the digital communication business saw revenue of 112,058.68 million CNY, an increase of 33.24%[38]. - The electronic government business generated revenue of 7,674.00 million CNY, down 57.42% year-on-year due to project delays caused by the pandemic[39]. - The digital marketing business achieved revenue of ¥112,058.68 million, with a year-on-year growth of 33.24%[52]. - The domestic marketing segment reported revenue of ¥21,552.08 million, reflecting a year-on-year increase of 31.36%[53]. - The overseas marketing segment saw revenue of ¥90,506.60 million, with a significant year-on-year growth of 83.10%[54]. Operational Developments - The company operates primarily in management software and digital communication, leveraging cloud computing and big data technologies[24]. - The company launched the "Nüwa Platform" (V1.0 preview version) to support digital transformation for government and enterprise clients, integrating advanced technologies such as cloud computing and big data[28]. - The company completed several key projects, including the comprehensive data management platform for the Sichuan Provincial Bureau of Statistics and the performance evaluation system for the Shaanxi Provincial Petition Bureau[48]. - The company is focusing on expanding its digital transformation services for large enterprises, particularly through its Nuwa platform[49]. - The company plans to launch the "Smart Marketer" platform in the second half of the year, aimed at providing a one-stop digital marketing SaaS solution for small and medium-sized enterprises[55]. Investment and Funding - The total amount of raised funds was RMB 780 million, with a net amount of RMB 764.92 million after deducting issuance costs[78]. - The company has changed the use of raised funds totaling RMB 402.50 million, accounting for 51.60% of the total raised funds[78]. - The company reported a total investment of RMB 127.37 million in the "Jiuqi Government Affairs R&D Center" project, with a return on investment of 40.67%[72]. - The company has returned CNY 16,515.37 million of previously used funds to its dedicated account for raised funds[82]. - The company plans to use self-owned funds for the continued development of the next-generation group control platform and the government-enterprise big data platform[82]. Risk Management - The company faces risks from macroeconomic fluctuations and policy changes, particularly due to the impact of the COVID-19 pandemic on client demand, which could affect operational performance[99]. - The company plans to strengthen its risk management measures regarding accounts receivable and may consider divesting from underperforming business segments to mitigate financial risks[102]. - The company has reported a significant amount of overdue accounts receivable related to its factoring business, totaling 110.60 million yuan, with provisions for bad debts amounting to 71.40 million yuan[103]. Legal and Compliance Issues - The criminal case against Shanghai Yitong's original shareholders for suspected contract fraud has entered the prosecution stage, creating uncertainty regarding compensation outcomes[106]. - The company is actively cooperating with ongoing criminal cases and civil arbitration while ensuring normal business operations[117]. - The board of directors emphasizes the complexity and uncertainty of the ongoing legal matters, advising investors to assess risks carefully[119]. Shareholder and Equity Information - The company has implemented an employee stock incentive plan, granting a total of 7,070,800 restricted shares at a price of 6.1 RMB per share[124]. - The total number of ordinary shareholders at the end of the reporting period is 69,136[158]. - The company’s controlling shareholder, Jiuxi Technology, holds 97,301,009 shares, accounting for 13.68% of the total share capital after the completion of the bond conversion[152]. - The company’s actual controller, Dong Taixiang, reduced her holdings by 12,060,000 shares, representing 1.70% of the total share capital[153]. Research and Development - The company obtained 65 new software copyrights and 2 invention patents during the reporting period, bringing the total to 974 software copyrights and 31 patents[34]. - The company emphasizes talent management and has established a performance evaluation mechanism to enhance operational efficiency and team stability[29]. - The software and information technology service industry is characterized by rapid technological innovation and intense competition, necessitating continuous investment in R&D to maintain competitive advantage[100].

Financial Performance - The company's operating revenue for Q1 2020 was ¥496,146,140.14, a decrease of 5.09% compared to ¥522,758,320.57 in the same period last year[8]. - The net profit attributable to shareholders was -¥70,709,747.99, worsening from -¥59,221,556.61 year-on-year[8]. - The basic and diluted earnings per share were both -¥0.0994, compared to -¥0.0833 in the same period last year[8]. - The weighted average return on equity was -7.40%, a decline of 2.04% from -5.36% year-on-year[8]. - The company reported a net loss of ¥220,520,159.55 for the first quarter of 2020, compared to a profit of ¥14,922,706.30 in the previous quarter[37]. - The company reported a net loss of CNY 76.18 million, compared to a net loss of CNY 65.21 million in Q4 2019, representing an increase in loss of 16.5%[44]. - Total comprehensive income for the first quarter was -52,372,528.69 CNY, compared to -48,158,101.90 CNY in the previous period, indicating a decline[46]. - Basic and diluted earnings per share were both -0.0736 CNY, compared to -0.0677 CNY in the previous period, reflecting a decrease in profitability[46]. Cash Flow and Liquidity - The net cash flow from operating activities was -¥159,467,252.59, an improvement from -¥213,063,496.02 in the previous year[8]. - Cash received from tax refunds increased by 753.31% to CNY 9.41 million, due to VAT refunds received[17]. - Cash paid for purchasing goods and services rose by 30.20% to CNY 653.79 million, driven by increased media resource purchases[17]. - Cash inflow from operating activities was 724,707,408.49 CNY, up from 580,871,594.39 CNY in the previous period, showing a growth of approximately 24.7%[48]. - Cash outflow from operating activities totaled 884,174,661.08 CNY, compared to 793,935,090.41 CNY in the previous period, representing an increase of about 11.4%[49]. - Cash and cash equivalents at the end of the period increased to 717,303,576.34 CNY from 462,967,270.18 CNY, marking a rise of approximately 55.0%[50]. - Cash flow from financing activities resulted in a net outflow of -14,974,212.01 CNY, compared to a net inflow of 101,037,575.71 CNY in the previous period, indicating a shift in financing strategy[50]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,833,424,313.30, down 6.68% from ¥3,036,280,249.02 at the end of the previous year[8]. - The total amount of entrusted wealth management reached RMB 38.4 million, with no overdue amounts reported[27]. - Total liabilities rose to ¥1,898,125,381.33 from ¥1,842,123,041.48, marking an increase of approximately 3.1%[36]. - The company's total liabilities increased to CNY 1.96 billion as of March 31, 2020, up from CNY 1.56 billion at the end of 2019[41]. - Owner's equity decreased to CNY 981.42 million from CNY 1.19 billion at the end of 2019, reflecting a decline of 17.7%[41]. - The total current assets increased from CNY 1,829,308,712.15 to CNY 1,870,641,936.29, an increase of CNY 41,333,224.14[56]. Shareholder Information - The total number of shareholders at the end of the reporting period was 61,899[11]. - The largest shareholder, Beijing Jiuqi Technology Investment Co., Ltd., held 13.68% of the shares, amounting to 97,301,009 shares[11]. - During the reporting period, the company repurchased 1,727,700 shares at a total cost of RMB 12,098,859, with a maximum price of RMB 7.20 per share and a minimum price of RMB 6.50 per share[23]. Operational Changes - The company has implemented new revenue and leasing standards starting in 2020, which may impact future financial reporting and performance metrics[54]. - The company initiated arbitration to recover approximately CNY 1.195 billion related to a fraudulent acquisition agreement[19]. - The company completed the transfer of 51% equity in Fengyu Network for RMB 4.59 million, which will no longer be included in the consolidated financial statements[21]. - The company has not engaged in any securities or derivative investments during the reporting period[24][26]. - There were no violations regarding external guarantees during the reporting period[28]. - The company reported no non-operating fund occupation by controlling shareholders or related parties[29]. - The company has not conducted any investor communications or interviews during the reporting period[30].

Financial Performance - The company's operating revenue for 2019 was ¥3,101,650,196.18, representing a 14.02% increase compared to ¥2,720,235,569.39 in 2018[26]. - The net profit attributable to shareholders for 2019 was ¥52,264,905.34, a significant recovery from a loss of ¥841,464,317.58 in 2018[26]. - The net cash flow from operating activities decreased by 62.01% to ¥168,011,622.15 from ¥442,286,465.26 in 2018[26]. - The total assets at the end of 2019 were ¥3,036,280,249.02, down 7.35% from ¥3,277,058,167.32 at the end of 2018[26]. - The company reported a basic earnings per share of ¥0.0735 in 2019, recovering from a loss of ¥1.1838 in 2018[26]. - The weighted average return on equity for 2019 was 4.58%, a significant improvement from -49.49% in 2018[26]. - The company achieved a total revenue of CNY 310,165.02 million, representing a year-on-year increase of 14.02%[49]. - The company reported a net profit attributable to shareholders of CNY 5,226.49 million, marking a turnaround from a loss in the previous year[49]. Accounts Receivable and Bad Debts - The company's accounts receivable from factoring business amounted to 132.74 million yuan, with overdue amounts reaching 111.10 million yuan, and a provision for bad debts of 71.40 million yuan as of December 31, 2019[11]. - The company is actively enhancing its risk management mechanisms to address the challenges posed by overdue accounts receivable and potential bad debts[10]. - The company acknowledges the risks associated with macroeconomic fluctuations and industry competition, which could affect its operational performance[6]. - Accounts receivable increased to ¥639.77 million, accounting for 21.07% of total assets, up from 15.77% due to the expansion of broadcasting business[98]. Business Strategy and Focus - The company plans to focus on its core business strategy, potentially shutting down or transferring underperforming business units to mitigate development risks[9]. - The company plans to leverage its long-term accumulated technology and business resources to empower clients with industry solutions and full-chain services[35]. - The company is focusing on enhancing its "big data + marketing" business model to improve gross profit margins amid increasing competition in the digital marketing sector[40]. - The company is focused on enhancing its existing business capabilities and exploring new business areas in traffic safety regulation[58]. - The company aims to become a leading B2B2C big data service provider in China, focusing on integrating emerging technologies like cloud computing, IoT, big data, and AI into its existing business[133]. Research and Development - The company emphasizes the importance of continuous technological innovation and R&D investment to maintain competitive advantages in a rapidly evolving market[8]. - Research and development (R&D) expenses for 2019 amounted to ¥345,793,315.61, a 19.80% increase compared to 2018, and R&D expenses accounted for 11.15% of operating revenue[91]. - The number of R&D personnel increased by 13.52% to 1,973, making up 61.50% of the total workforce[91]. - The company obtained 179 software copyrights and 1 invention patent during the reporting period, showcasing its commitment to innovation[44]. Legal and Compliance Issues - The company has faced legal challenges related to the Shanghai Yitong case, which may impact its financial results and has led to the sale of the related equity to mitigate risks[14]. - The board of directors is aware of ongoing criminal investigations related to Shanghai Yitong, which may impact the company, but asserts that these matters do not significantly affect the financial results[171]. - The company has committed to enhancing its corporate governance and internal control to mitigate potential adverse impacts from the ongoing legal issues[173]. - The company will continue to monitor the developments of the legal cases and fulfill its disclosure obligations as required by law[173]. Investments and Acquisitions - The company completed the transfer of 100% equity in Shanghai Yitong Network Co., Ltd. to Beijing Qishun Tongda Technology Co., Ltd., which will no longer be included in the consolidated financial statements[84]. - The company has pledged land use rights and property as collateral for a merger loan of up to ¥480 million, with a remaining balance of ¥280 million as of the reporting period[102]. - The company has committed to achieving net profits of RMB 15 million, RMB 19.5 million, and RMB 25.35 million for the years 2016, 2017, and 2018 respectively, with strict adherence to these commitments[159]. Corporate Governance and Commitments - The company has committed to avoiding or reducing related party transactions with its subsidiaries, ensuring compliance with market principles and equal benefits[149]. - The company guarantees that it will not occupy or use the funds, assets, or resources of its subsidiaries during or after transactions, nor will it require them to cover debts or advance payments[150]. - The company has established a framework to ensure that any competitive activities are ceased or transferred to avoid conflicts with its subsidiaries[151]. - The company has reiterated its dedication to transparency and adherence to its commitments throughout its operations[155]. Market and Industry Trends - The software and information technology services industry in China achieved a revenue of 7.18 trillion yuan in 2019, growing by 15.4% year-on-year, indicating a stable and positive development trend[132]. - The company plans to leverage big data applications to assist government decision-making and enhance public service levels, while also helping enterprises transform digitally and improve operational efficiency[132]. - The company is expanding its digital solutions in key sectors such as healthcare, agriculture, and education, with multiple new products and solutions[62]. Financial Management - The company has not experienced any changes in its controlling shareholders since its listing[25]. - The company has not sold any significant assets during the reporting period[122]. - The company has a total guarantee amount of 10 million yuan, with an actual guarantee balance of 5 million yuan, representing 4.30% of the company's net assets[196]. - The company has entrusted financial management with a total amount of 43.9 million yuan, including 35 million yuan from raised funds and 3.9 million yuan from self-owned funds[199].

Financial Performance - Operating revenue increased by 10.50% to CNY 755,838,155.21 for the current period[8] - Net profit attributable to shareholders decreased by 96.04% to CNY 6,626,721.70 year-to-date[8] - Basic earnings per share increased by 8.15% to CNY 0.1261 for the current period[8] - Total operating revenue for Q3 2019 was CNY 755,838,155.21, an increase of 10.5% compared to CNY 684,022,818.80 in Q3 2018[42] - The net profit for Q3 2019 reached CNY 86,579,760.11, compared to CNY 81,320,726.18 in Q3 2018, marking an increase of about 6.9%[44] - The total profit for Q3 2019 was CNY 89,404,116.38, down from CNY 93,903,128.66 in the same period last year, indicating a decrease of about 4.9%[43] - The company reported a net loss of CNY 686,445,952.20 for the period, an improvement from a loss of CNY 705,853,759.19 in the previous year[40] Cash Flow and Liquidity - Cash flow from operating activities decreased by 90.06% to CNY 12,781,254.17[8] - Cash received from operating activities decreased by 79% year-on-year to 4.98 million RMB, mainly due to the adjustment of structured deposit interest to investment income[18] - The company received 316,883,636.04 CNY from sales of goods and services, an increase of 20.8% compared to 262,323,709.60 CNY in the previous period[59] - The net cash flow from operating activities was 144,199,895.72 CNY, a significant improvement from a negative cash flow of -69,632,051.50 CNY in the previous period[59] - Total cash and cash equivalents at the end of the period were 420,530,482.83 CNY, down from 819,333,170.38 CNY in the previous period, reflecting a decrease of 48.7%[58] - The company incurred 261,564,457.76 CNY in employee-related cash payments, which is an increase of 50.1% compared to 174,179,848.27 CNY in the previous period[59] - The company reported a cash outflow of 208,196,906.40 CNY from financing activities, an increase from 99,800,374.18 CNY in the previous period[61] Assets and Liabilities - Total assets decreased by 10.82% to CNY 2,922,376,949.59 compared to the end of the previous year[8] - The company reported a decrease in total assets, reflecting challenges in maintaining asset growth amid declining profits[54] - The company's total liabilities decreased to CNY 1,790,961,235.82 from CNY 2,110,488,979.18, representing a reduction of approximately 15.1%[34] - The company's equity increased slightly to CNY 1,131,415,713.77 from CNY 1,166,569,188.14, showing a decrease of about 3.0%[34] - The company's accounts payable decreased to CNY 145,985,310.70 from CNY 183,610,965.70, indicating a decline of approximately 20.5%[34] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 49,311[12] - The largest shareholder, Beijing Jiuqi Technology Investment Co., Ltd., holds 23.13% of shares[12] - The company repurchased a total of 5,569,833 shares, accounting for 0.7831% of the total share capital, with a total transaction amount of approximately 42.39 million RMB[23] Government and Financial Support - The company received government subsidies amounting to CNY 4,470,118.17 during the reporting period[9] - Financial expenses increased by 136% year-on-year to 36.83 million RMB, primarily due to increased convertible bond interest and loan interest, along with decreased bank deposit interest income[17] Research and Development - Research and development expenses increased to CNY 82,968,128.09, representing a rise of 10.5% from CNY 75,193,387.35 in Q3 2018[42] - Research and development expenses amounted to CNY 47,644,518.95, up from CNY 35,954,631.05 in the previous year, reflecting a growth of about 32.5%[46] Investment Activities - Investment cash outflows increased by 71% year-on-year to 1.2848 billion RMB, primarily due to the purchase of structured deposits[18] - Cash received from investment recoveries increased by 105% year-on-year to 1.172 billion RMB, mainly due to the redemption of structured deposits[18] - Cash inflow from investment activities totaled 390,588,679.40 CNY, down from 641,481,917.63 CNY in the previous period[61] - Investment activities resulted in a net cash outflow of -252,476,965.03 CNY, an improvement from -335,450,276.59 CNY in the previous period[61] Tax and Financial Management - The company’s income tax expense decreased by 81% year-on-year to 4.93 million RMB, mainly due to a decline in profit from subsidiaries[18] - The company plans to use up to 400 million RMB of temporarily idle raised funds for cash management, investing in low-risk financial products[21]

Financial Performance - Operating revenue increased by 10.50% to CNY 755,838,155.21 for the current period, and by 9.32% to CNY 1,855,435,275.95 year-to-date[8] - Net profit attributable to shareholders decreased by 96.04% to CNY 6,626,721.70 year-to-date[8] - Basic earnings per share increased by 8.15% to CNY 0.1261 for the current period, but decreased by 96.05% year-to-date[8] - The net profit for the third quarter of 2019 was CNY 86,579,760.11, compared to CNY 81,320,726.18 in the previous year, reflecting an increase of about 6.9%[44] - The operating profit for the third quarter was CNY 87,879,016.43, slightly down from CNY 89,475,243.52 in the same quarter last year, a decrease of approximately 1.8%[43] - The company reported a net loss for the period narrowed to ¥686,445,952.20 from ¥705,853,759.19 in the previous year[40] - The total comprehensive income for the third quarter was CNY 88,674,918.69, compared to CNY 83,232,677.63 in the same period last year, an increase of approximately 6.0%[44] - The total comprehensive income for Q3 2019 was CNY -1.48 million, a sharp decline from CNY 177.88 million in Q3 2018[54] Assets and Liabilities - Total assets decreased by 10.82% to CNY 2,922,376,949.59 compared to the end of the previous year[8] - The company reported a decrease in total assets, with a notable drop in cash and cash equivalents[56] - The total liabilities decreased to CNY 1,790,961,235.82 from CNY 2,110,488,979.18, reflecting a reduction of approximately 15.1%[34] - The company's total assets amounted to CNY 2,922,376,949.59, a decrease from CNY 3,277,058,167.32 at the end of 2018[32] - The company's total equity as of September 30, 2019, was CNY 1,131,415,713.77, down from CNY 1,166,569,188.14 at the end of 2018[34] Cash Flow - Cash flow from operating activities decreased by 90.06% to CNY 12,781,254.17 for the current period[8] - Cash received from other operating activities decreased by 79% year-on-year to 4.98 million RMB, primarily due to the adjustment of structured deposit interest to investment income[18] - The net cash flow from operating activities was 144,199,895.72 CNY, a significant improvement from a negative cash flow of -69,632,051.50 CNY in the previous period[59] - The company incurred 261,564,457.76 CNY in employee-related cash payments, up from 174,179,848.27 CNY in the previous period[59] - The cash flow from operating activities was positively impacted by a 3,684,103.66 CNY tax refund received[59] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 711,233,390[12] - The largest shareholder, Beijing Jiuqi Technology Investment Co., Ltd., holds 23.13% of shares[12] - The company repurchased a total of 5,569,833 shares, accounting for 0.7831% of the total share capital, with a total transaction amount of approximately 42.39 million RMB[23] Expenses and Costs - Total operating costs for Q3 2019 were ¥676,677,187.25, up 12.6% from ¥600,616,419.89 in the same period last year[42] - Research and development expenses increased to ¥82,968,128.09, reflecting a rise of 10.4% from ¥75,193,387.35 in Q3 2018[42] - Cash paid to employees increased by 35% year-on-year to 496.39 million RMB, attributed to an increase in the number of employees and salaries[18] - Financial expenses increased by 136% year-on-year to 36.83 million RMB, mainly due to increased convertible bond interest and loan interest, along with decreased bank deposit interest income[17] Investment Activities - The company signed a share transfer agreement to sell 100% of Shanghai Yitong's shares for 303 million RMB, aiming to mitigate the negative impact of retained opinions from the 2018 annual report[19] - The company plans to use up to 400 million RMB of temporarily idle raised funds for cash management, investing in low-risk financial products[21] - Cash received from investment recoveries increased by 105% year-on-year to 1.172 billion RMB, mainly due to the release of structured deposits[18] - Investment activities resulted in a net cash outflow of -252,476,965.03 CNY, an improvement from -335,450,276.59 CNY in the previous period[61] Other Information - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[26] - The company has not engaged in any illegal external guarantees during the reporting period[25] - The company has not conducted any research, communication, or interview activities during the reporting period[28] - The company has invested a total of CNY 45,100,000 in entrusted financial management, with no overdue amounts[28]

Financial Performance - The company's operating revenue for the reporting period was ¥1,099,597,120.74, representing an increase of 8.53% compared to the same period last year[28]. - The net profit attributable to shareholders was -¥83,078,653.20, a decrease of 198.42% year-on-year[28]. - The net cash flow from operating activities was -¥279,052,823.60, showing an improvement from -¥321,732,383.72 in the previous year[28]. - Total assets at the end of the reporting period were ¥2,917,763,733.25, a decrease of 10.96% from the end of the previous year[28]. - The company's net assets attributable to shareholders decreased by 9.59% to ¥1,025,120,399.99[28]. - The company reported a significant increase in accounts receivable, with a balance of ¥40,155,200.00, up 236.65% due to increased billing in the digital marketing business[38]. - The company achieved operating revenue of 1,099.5971 million yuan, a year-on-year increase of 8.53%[42]. - The net profit attributable to shareholders of the listed company was -83.0787 million yuan, a year-on-year decline of 198.42%[42]. - The electronic government business generated operating revenue of 180.2448 million yuan, a year-on-year decrease of 25.90%[43]. - The group management business reported operating revenue of 66.6845 million yuan, a year-on-year decline of 21.89%[48]. - The company reported a net loss of CNY 117,452,332.94 as of June 30, 2019, compared to a loss of CNY 34,386,587.17 at the end of 2018[183]. - The net profit for the first half of 2019 was -68,853,629.68 CNY, a significant decline compared to a net profit of 272,623,395.17 CNY in the same period of 2018, representing a decrease of approximately 125.3%[195]. - The operating profit for the first half of 2019 was -68,340,615.21 CNY, compared to an operating profit of 273,021,432.33 CNY in the first half of 2018, indicating a decline of around 125.1%[195]. Revenue Sources - The company reported that its revenue primarily comes from three business segments: e-government, group control, and internet services, with significant seasonal revenue peaks typically occurring in the third and fourth quarters of each year[9]. - The digital marketing business generated revenue of RMB 84,104.30 million, with a year-on-year growth of 25.88%[51]. - The internet business segment accounted for 77.11% of total revenue, with a year-on-year increase of 23.50%[58]. - The new contract amount for management software business reached 372.3452 million yuan, with a year-on-year growth of 102.14%[42]. Investments and Projects - The company raised a total of 780 million yuan through the issuance of convertible bonds in 2017, with ongoing projects including a government enterprise big data platform and a next-generation group control platform[16]. - The company plans to enhance its research and development investments to improve core capabilities and meet market demands, thereby increasing its competitive edge in the software and information technology services industry[8]. - The company is actively involved in the development of big data applications and solutions, contributing to the construction of a digital China[36]. - The company is focusing on the development of a new generation of big data platform products, including data mining and machine learning algorithm model libraries[42]. - The company has invested a total of 177.46 million RMB in the next-generation group control platform as of June 30, 2019, with the project completion date postponed to June 30, 2021[79]. - The government enterprise big data platform has seen a total investment of 151.00 million RMB as of June 30, 2019, with the project completion date pushed to June 30, 2021[80]. - The company plans to delay the completion of the government affairs research center project to December 31, 2020, due to construction delays[78]. Cash Flow and Liquidity - The cash balance at the end of the reporting period was ¥371,822,400.00, a decrease of 53.17% primarily due to payments for equity consideration[38]. - The company reported a provision for bad debts of RMB 34 million, impacting the profit statement by 4.27% of total profit[110]. - The company has acknowledged the impact of economic downturns and liquidity pressures on its financial expenditures, leading to a cautious approach in spending[79]. - The company has temporarily used 92.64 million RMB of idle fundraising to supplement working capital as of June 30, 2019[82]. - The company reported a total cash inflow from investment activities in the first half of 2019 was 626,854,720.68 CNY, compared to 556,488,359.57 CNY in the first half of 2018, showing an increase of approximately 12.6%[199]. - The cash outflow from investment activities for the first half of 2019 was 874,345,654.46 CNY, up from 654,581,982.33 CNY in the same period of 2018, representing an increase of about 33.5%[199]. Legal and Compliance Issues - The company acknowledges the potential impact of ongoing legal disputes involving its subsidiary, Shanghai Yitong, which may affect its financial performance and require adjustments to prior accounting data[15]. - The company has ongoing legal issues related to the fraudulent activities of three employees at its subsidiary, which may affect its financial statements[108]. - The company is actively pursuing legal avenues to protect its rights regarding the performance compensation that may not be received on time[105]. - The company has taken legal action to protect its rights, with ongoing investigations into contract fraud and seal forgery involving former shareholders of Shanghai Yitong[112]. - The controlling shareholder, Jiuxi Technology, proposed to compensate the company if the responsible party fails to fully compensate for losses within 12 months after the judicial ruling, with a compensation amount of 800 million RMB minus any received compensation[112]. Shareholder and Equity Information - The company has a total of 4,249,840 restricted stock options granted to 326 incentive objects, with specific unlocking conditions[153]. - The company reported a total share capital of 711,233,390 shares as of June 30, 2019, with a decrease of 7,991,165 restricted shares, representing 14.74% of total shares[143]. - The company repurchased a total of 4,020,213 shares, accounting for 0.5652% of the total share capital, with a total transaction amount of approximately RMB 32.99 million[144]. - The actual controller transferred 36 million shares (5.06% of total shares) at a price of RMB 6.72/share, totaling RMB 24.19 million, to repay pledged financing loans[146]. - The total number of ordinary shareholders at the end of the reporting period is 49,687[152]. Risk Factors - The company faces risks related to macroeconomic fluctuations and policy changes, particularly affecting its clients in government and large enterprises[6]. - The company is facing significant pressure on future business growth due to intensified market competition and risks from trade tensions[51]. - The company faced various risks including macroeconomic and policy risks, industry competition risks, and liquidity risks, with corresponding mitigation measures outlined in the report[99].

Financial Performance - The company's operating revenue for Q1 2019 was ¥522,758,320.57, representing a 25.01% increase compared to ¥418,189,044.75 in the same period last year[8] - The net profit attributable to shareholders was a loss of ¥59,221,556.61, a significant decline from a profit of ¥7,448,361.08 in the previous year[8] - The net cash flow from operating activities was a negative ¥213,063,496.02, an improvement from a negative ¥254,623,092.80 in the same period last year[8] - The basic and diluted earnings per share were both -¥0.0833, compared to ¥0.0105 in the same period last year[8] - The weighted average return on equity was -5.36%, a decrease of 5.64% from 0.28% in the previous year[8] - The company reported a significant net loss due to an asset impairment provision of CNY 1.08 billion related to goodwill from acquisitions[17] - Net loss for Q1 2019 amounted to CNY 65.21 million, compared to a net profit of CNY 18.91 million in Q1 2018[39] - The net loss for the current period was ¥48,158,101.90, compared to a net loss of ¥40,302,760.25 in the previous period, indicating a deterioration in profitability[43] Assets and Liabilities - The total assets at the end of the reporting period were ¥2,936,502,783.74, down 10.39% from ¥3,277,058,167.32 at the end of the previous year[8] - The net assets attributable to shareholders decreased by 5.79%, from ¥1,133,828,543.29 to ¥1,068,236,046.48[8] - Total liabilities decreased from 2,110,488,979.18 yuan to 1,841,514,273.12 yuan, a reduction of about 12.7%[30] - The company's total equity decreased from 1,166,569,188.14 yuan to 1,094,988,510.62 yuan, a decline of about 6.1%[31] - The company's long-term borrowings increased to CNY 386.11 million, up from CNY 252.00 million at the end of 2018[35] Cash Flow - Cash and cash equivalents decreased by 38.94% to CNY 484.75 million, primarily due to the payment for the acquisition of 49% equity in Shanghai Yitong[15] - The company's cash and cash equivalents decreased from 793,917,307.25 yuan on December 31, 2018, to 484,747,316.59 yuan on March 31, 2019, representing a decline of approximately 39%[28] - The ending cash and cash equivalents balance decreased to ¥462,967,270.18 from ¥1,298,527,787.24, reflecting a significant reduction of 64.3%[47] - Cash inflow from financing activities amounted to ¥218,000,000.00, with cash outflow totaling ¥66,861,286.77, resulting in a net cash flow of ¥151,138,713.23[50] Shareholder Information - The company had a total of 49,406 common shareholders at the end of the reporting period[11] - The largest shareholder, Beijing Jiuxi Technology Investment Co., Ltd., held 23.13% of the shares, amounting to 164,527,890 shares[11] - As of March 31, 2019, the company repurchased a total of 901,100 shares, accounting for 0.1267% of the total share capital, with a total transaction amount of 7,997,567.30 yuan[21] - The company has initiated a share repurchase plan with a total budget of up to CNY 120 million, with a maximum repurchase price of CNY 10 per share[20] Operational Challenges - The company is facing operational risks due to legal issues involving Shanghai Yitong, which may impact its business continuity[16] - The company reported non-recurring losses totaling ¥2,084,244.82 during the reporting period[9] Expenses - Operating costs increased by 58.83% to CNY 397.09 million, mainly due to higher media resource purchases for digital communication business expansion[15] - Management expenses increased by 37.55% to CNY 87.77 million, primarily due to increased employee compensation[15] - Research and development expenses increased to CNY 70.76 million, a rise of 24.4% from CNY 56.92 million in the same period last year[37] Miscellaneous - The company did not undergo an audit for the first quarter report[52] - The report does not apply to the new financial instruments, revenue, and leasing standards adjustments[52] - The company’s legal representative is Zhao Fujun[53]

Financial Performance - The company's operating revenue for 2018 was ¥2,720,235,569.39, representing a 36.55% increase compared to ¥1,992,176,981.00 in 2017[31]. - The net profit attributable to shareholders was a loss of ¥841,464,317.58, a significant decline from a profit of ¥306,943,384.51 in the previous year[31]. - The net cash flow from operating activities increased by 245.75% to ¥442,286,465.26, up from ¥127,919,925.53 in 2017[31]. - Total assets decreased by 30.39% to ¥3,277,058,167.32 at the end of 2018, down from ¥4,707,752,786.27 at the end of 2017[31]. - The net assets attributable to shareholders fell by 56.63% to ¥1,133,828,543.29, compared to ¥2,614,056,562.07 in 2017[31]. - The company reported a basic earnings per share of -¥1.1838, down from ¥0.4351 in 2017[31]. - The weighted average return on equity was -49.49%, a decrease of 62.35% from 12.86% in the previous year[31]. - The total cash dividends distributed over the past three years have been CNY 37,551,270.30, with a focus on maintaining shareholder value despite recent losses[141]. Revenue Breakdown - The internet business segment generated ¥1,691,564,483.47, accounting for 62.18% of total revenue, with a year-on-year growth of 39.02%[74]. - The management software business generated revenue of CNY 102,025.15 million, with a year-on-year growth of 33.13%[49]. - The digital communication business reported revenue of CNY 165,911.71 million, reflecting a year-on-year increase of 39.52%[49]. - The electronic government business earned CNY 71,770.37 million, marking a year-on-year growth of 29.76%[50]. - The company's group control business achieved revenue of 302.55 million yuan, representing a year-on-year increase of 41.86%[62]. Impairment and Risks - The company recognized an impairment loss on goodwill of 1.08 billion yuan, reducing the goodwill balance to 601.24 million yuan, reflecting challenges in achieving expected synergies from acquisitions[14]. - The company recorded a goodwill impairment of CNY 107,739.49 million due to declining profits from subsidiaries and increased management risks[49]. - The company faces potential operational risks related to its subsidiary, Shanghai Yitong, due to legal issues and management changes, which may impact overall performance[15]. - The company acknowledges the impact of macroeconomic fluctuations on client demand, particularly in government and large enterprise sectors, which could affect future performance[6]. Investment and Financing - The company raised a total of 780 million yuan through the issuance of convertible bonds in 2017, with ongoing risks related to the effectiveness of the funded projects in meeting market demands[18]. - The total investment amount for the reporting period was CNY 1,008,693,539.00, reflecting a year-on-year increase of 30.81%[101]. - The company has committed to investing ¥27.58 million in the Government Affairs R&D Center project, with a cumulative investment of ¥9.15 million achieved[110]. - The company has utilized ¥29.81 million of the raised funds, leaving ¥50.65 million unutilized, which includes ¥19.05 million for temporary working capital and ¥30.20 million for cash management[108]. Strategic Initiatives - The company is committed to enhancing product and solution offerings to adapt to changing market demands and maintain competitive advantages[8]. - The company plans to enhance its B2B2C big data service capabilities, focusing on management software and digital communication[30]. - The company aims to achieve "digital enterprise and intelligent management" for clients in the construction industry, focusing on technological leadership and deep industry engagement[63]. - The company is actively involved in the "Internet + Government Services" initiative, implementing various systems to improve public service efficiency[61]. Governance and Compliance - The company has established a robust decision-making process for dividend distribution, involving independent directors and ensuring stakeholder engagement[138]. - The company has committed to ensuring that any related transactions comply with relevant laws and regulations, protecting the interests of minority shareholders[148]. - The company has maintained a commitment to avoid engaging in any competitive business activities with its subsidiaries during the commitment period[146]. - The company has confirmed that it will not occupy or use the funds or resources of its subsidiaries for any personal or unrelated business purposes[155]. Subsidiary Performance - Subsidiary Huaxia Diantong achieved operating revenue of 294.65 million RMB, a year-on-year increase of 29.41%, with a net profit of 92.69 million RMB, up 11.66%[118]. - Subsidiary Shanghai Yitong reported operating revenue of 640.38 million RMB, a year-on-year increase of 20.23%, but net profit decreased by 45.61% to 57.08 million RMB due to significant asset impairment losses[119]. - Subsidiary Yiqilian Technology achieved operating revenue of 800.02 million RMB, a year-on-year increase of 29.09%, but net profit fell by 78.31% to 19.25 million RMB due to market competition and policy impacts[120]. Legal and Regulatory Issues - In 2018, the company reported a significant issue involving three employees from its subsidiary Shanghai Yitong, who were found to have forged client seals, leading to a police report filed on February 26, 2019[171]. - The company has received notifications from police in Shanghai and Beijing regarding the investigation into the forgery and contract fraud cases, which may impact the company's ability to claim performance compensation[172]. - The audit report for 2018 received a qualified opinion due to uncertainties regarding the recoverability of receivables totaling 34,000.00 million CNY[170].

Financial Performance - The company's operating revenue for Q1 2018 was ¥418,189,044.75, representing a 106.44% increase compared to ¥202,567,069.42 in the same period last year[6] - Net profit attributable to shareholders was ¥7,448,361.08, up 26.85% from ¥5,871,669.39 year-on-year[6] - The net profit after deducting non-recurring gains and losses reached ¥6,680,656.69, marking a 108.82% increase from ¥3,199,285.37 in the previous year[6] - The company expects net profit attributable to shareholders for the first half of 2018 to be between RMB 80 million and RMB 100 million, representing a year-on-year increase of 59.55% to 99.44% [20] Cash Flow and Assets - The company's cash flow from operating activities was negative at -¥254,623,092.80, worsening from -¥116,956,481.59 in the same period last year[6] - Total assets at the end of the reporting period were ¥4,630,531,903.22, a decrease of 1.64% from ¥4,707,752,786.27 at the end of the previous year[6] - Cash and cash equivalents increased by 41.49% to ¥132,004,760.00, primarily due to the recovery of principal from bank wealth management products[13] - Cash received from sales of goods and services was RMB 486.67 million, up 104.51% year-on-year, driven by the business development of Shanghai Yitong and Yiqilian Technology [15] - Cash flow from investing activities included RMB 55 million from the maturity of bank wealth management products, compared to zero in the same period last year [16] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 42,656[9] - The top shareholder, Beijing Jiuxi Technology Investment Co., Ltd., held 23.94% of the shares, amounting to 170,133,271 shares[9] Business Expansion and Costs - Operating revenue reached RMB 418.19 million, an increase of 106.44% year-on-year, primarily due to the consolidation of Shanghai Yitong Network Co., Ltd. and Beijing Yiqilian Technology Co., Ltd. [14] - Operating costs amounted to RMB 250.01 million, a year-on-year increase of 209.44%, mainly attributed to the expanded business scale of Shanghai Yitong and Yiqilian Technology [14] - Prepayments rose by 112.97% to ¥94,693,500.00, driven by market expansion in digital marketing[13] - The company capitalized development expenditures of ¥3,486,200.00 during the reporting period, reflecting ongoing R&D efforts[13] Financial Expenses and Income - Financial expenses increased to RMB 8.17 million, a rise of 11,000% year-on-year, primarily due to the interest on convertible bonds [14] - Investment income was RMB 4.67 million, an increase of 1,300% year-on-year, resulting from returns on wealth management products purchased with temporarily idle funds [14] Acquisition and Future Plans - The company completed the acquisition of a 49% stake in Shanghai Yitong for RMB 800 million, which has been consolidated as a wholly-owned subsidiary [17] - The company reported a minority interest profit of RMB 11.46 million, reversing a loss of RMB 13.14 million year-on-year, mainly due to the consolidation of Shanghai Yitong [14] - The company plans to enhance its service capabilities and profitability through business integration and collaboration following the acquisition of Shanghai Yitong [17]

Financial Performance - The company's operating revenue for 2017 was CNY 1,992,176,981, representing a 50.83% increase compared to CNY 1,320,802,031 in 2016[27]. - The net profit attributable to shareholders for 2017 was CNY 306,943,384, a 40.41% increase from CNY 218,609,712 in 2016[27]. - The net profit after deducting non-recurring gains and losses was CNY 266,852,593, up 25.79% from CNY 212,147,251 in 2016[27]. - The company's total assets increased by 68.38% to CNY 4,707,752,786.27 at the end of 2017, compared to CNY 2,795,870,631.63 at the end of 2016[28]. - The net assets attributable to shareholders rose by 20.81% to CNY 2,614,056,562.07 at the end of 2017, compared to CNY 2,163,798,446.03 at the end of 2016[28]. - The basic earnings per share for 2017 was CNY 0.4351, reflecting a 40.08% increase from CNY 0.3106 in 2016[27]. - The weighted average return on equity for 2017 was 12.86%, an increase of 2.26 percentage points from 10.60% in 2016[27]. - The net cash flow from operating activities for 2017 was CNY 127,919,925.53, a 32.60% increase from CNY 96,467,347.89 in 2016[27]. - The total profit reached 378.82 million yuan, reflecting a year-on-year growth of 61.58%[47]. Acquisitions and Investments - The company raised a total of CNY 780 million through the issuance of convertible bonds, aimed at enhancing investment in big data technology and digital communication[15]. - The company has made several acquisitions since 2014, expanding its business scope and asset scale, but faces integration challenges[11]. - The company acquired Shanghai Yitong for ¥1.44 billion, enhancing its capabilities in mobile information application solutions[65]. - The company completed the acquisition of 51% and 49% stakes in "Shanghai Yitong" for a total of 1.44 billion yuan, integrating it as a subsidiary in April 2017[154]. - The company plans to acquire 49% of Shanghai Yitong's equity for 800 million RMB, which will require strong financial support and may increase debt and financial costs[116]. - The company has committed to achieving a consolidated net profit of no less than CNY 31,900 million over three years (2016-2018) for Shanghai Yitong[129]. Revenue Growth and Segments - The company's revenue from the software and information technology services industry in China reached CNY 5.5 trillion in 2017, representing a 13.9% year-on-year growth[37]. - Internet business revenue surged to ¥1,216,821,094.72, accounting for 61.08% of total revenue, with a remarkable growth of 113.39% compared to the previous year[69]. - The digital marketing segment achieved revenue of ¥118,916.10 million, reflecting a year-on-year growth of 111.47%[62]. - The electronic government business generated revenue of 553.08 million yuan, up 2.58% year-on-year[49]. - The group control business achieved revenue of 213.28 million yuan, with a year-on-year growth of 3.33%[55]. - The company’s revenue, excluding the impact of the acquisition of Shanghai Yitong, was 1,544.06 million yuan, with a year-on-year increase of 16.90%[47]. Research and Development - The company emphasizes the importance of continuous R&D investment to maintain competitive advantages in a rapidly evolving technology landscape[7]. - The company has made significant investments in its R&D center, with construction costs contributing to a 147.85% increase in construction in progress, valued at CNY 50.51 million[41]. - Research and development expenses totaled ¥245,822,176.47, accounting for 12.34% of operating revenue, with a year-on-year growth of 15.04%[82]. - The company is focusing on integrating new technologies such as cloud computing and AI into its management systems to enhance operational efficiency and value[100]. Risk Management - The company acknowledges the competitive landscape in the technology sector, necessitating ongoing innovation and adaptation to meet diverse customer demands[7]. - The company has committed to enhancing internal control mechanisms to mitigate risks from macroeconomic and policy changes[6]. - The company faces various risks, including macroeconomic and policy risks, industry competition risks, and human resource risks, which it plans to address through specific measures[117]. Corporate Governance and Compliance - The company emphasizes corporate social responsibility and has established a comprehensive corporate governance structure to protect the rights of shareholders, especially minority shareholders[187]. - The company has committed to ensuring that the net cash flow from operating activities is positive for the years 2016, 2017, and 2018[129]. - The company has reported strict compliance with all commitments made, with no violations noted as of the reporting period[131]. - The company has established a framework to ensure that any unavoidable related party transactions are conducted in accordance with relevant regulations and disclosure obligations[137]. Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.30 per 10 shares (including tax) to all shareholders, with no bonus shares issued[16]. - The cash dividend amount (including tax) was CNY 21,321,822.51, representing 6.95% of the net profit attributable to ordinary shareholders of CNY 306,943,384.51[126]. - The total distributable profit for the year was CNY 405,815,326.43, with cash dividends accounting for 100% of the profit distribution[127]. - The company has not proposed any cash dividend distribution plan for the reporting period despite having positive profits available for distribution[127]. Market Expansion and Strategy - The company is transitioning from a traditional software vendor to a comprehensive big data service provider, aligning with national strategies for big data development[38]. - The company is actively expanding its market presence in provinces like Yunnan, Hunan, and Fujian, while maintaining relationships with existing clients[61]. - The company aims to deepen its focus on big data business, particularly in sectors such as finance, transportation, and social welfare, to create innovative big data solutions[112]. - The company plans to enhance its digital communication business through acquisitions and investments, contributing a net profit of 4.45 million CNY from Shanghai Yitong[106].