Financial Performance - The company's operating revenue for the first half of 2021 was ¥889,814,111.90, a decrease of 29.64% compared to ¥1,264,601,697.05 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was a loss of ¥83,890,681.91, an improvement from a loss of ¥109,037,648.28 in the previous year[18]. - The net cash flow from operating activities was -¥239,833,629.37, compared to -¥170,786,959.26 in the same period last year[18]. - The total assets at the end of the reporting period were ¥2,498,143,869.09, a decrease of 6.33% from ¥2,667,022,974.11 at the end of the previous year[18]. - The net assets attributable to shareholders of the listed company were ¥977,729,472.50, down 7.19% from ¥1,053,445,186.39 at the end of the previous year[18]. - The basic earnings per share were -¥0.1179, compared to -¥0.1533 in the same period last year[18]. - The weighted average return on net assets was -8.26%, an improvement from -11.66% in the previous year[18]. - The company reported a net loss attributable to shareholders was CNY 8,389.07 million, a reduction in loss of CNY 2,514.70 million compared to the same period last year[26]. - The net profit of the subsidiary Jiuxi Government Software was a loss of ¥15,762,530.87, which is an increase in loss of ¥7,071,500.00 year-on-year, mainly due to increased labor costs after the expiration of pandemic-related subsidies[78]. - The net profit after deducting non-recurring gains and losses was -86.12 million yuan, an improvement from -126.95 million yuan in the same period last year[157]. Revenue and Cost Analysis - The company's operating costs decreased by 39.47% to approximately ¥659.40 million from ¥1.09 billion year-on-year, primarily due to reduced costs in digital communication business[54]. - The digital marketing segment reported a revenue of 602.38 million, a decrease of 46.24% year-on-year, indicating a need for strategic adjustments[43]. - Revenue from the e-government sector increased by 126.09% to CNY 173,504,060.18, while internet business revenue decreased by 46.44% to CNY 602,612,418.16[57][58]. - The total operating costs for the first half of 2021 were CNY 994.29 million, down 29.3% from CNY 1,408.97 million in the first half of 2020[172]. Investment and Development - Research and development investment was approximately ¥135.88 million, a decrease of 4.63% compared to ¥142.48 million in the previous year[54]. - The company acquired 20 new software copyrights and 3 invention patents during the reporting period, bringing the total to 1,035 software copyrights and 40 patents[49]. - The company has built a comprehensive big data ecosystem, including cloud computing and big data technology platforms, to provide tailored solutions for clients[50]. - The company has initiated a comprehensive cloud transformation for its big data products, improving data analysis capabilities[31]. - The total investment cash outflow for the first half of 2021 was approximately ¥389.25 million, compared to ¥263.83 million in the same period of 2020, indicating increased investment activity[180]. Strategic Focus and Initiatives - The company is focusing on the development of the Nuwa platform, which integrates new technologies such as AI and cloud-native capabilities[28]. - The company has developed a new generation of asset management products based on the Nuwa platform, integrating various business processes[30]. - The company is actively involved in the integration of budget management systems, aligning with national policies for fiscal reform[33]. - The company has established a complete support system for project management within the Nuwa platform, enhancing development and deployment efficiency[28]. - The company aims to drive digital transformation in government, society, and enterprises through its innovative technology and talent strategy[47]. Cash Flow and Liquidity - The company's cash and cash equivalents dropped significantly from CNY 662,854,532.85 to CNY 320,737,160.08, a decline of about 51.60%[162]. - The company's cash flow from operating activities was significantly impacted by a 54.62% decrease in cash received from operating activities[58]. - The company reported a significant decrease in investment income, with a loss of approximately ¥4.76 million from joint ventures in the first half of 2021, compared to a gain of ¥0.99 million in the same period of 2020[176]. - The company experienced a net decrease in cash and cash equivalents of -129,310,849.11 CNY during the first half of 2021, compared to -28,501,819.56 CNY in the same period of 2020[183]. Shareholder and Equity Information - The total number of shares increased to 711,259,411 due to the conversion of convertible bonds, with a decrease of 2,086,509 shares in restricted shares[129]. - The total number of shareholders at the end of the reporting period was 57,134[135]. - The largest shareholder, Beijing Jiuxi Technology Investment Co., Ltd., holds 13.68% of the total shares, amounting to 97,301,009 shares[136]. - The company has a total of 712,380 shares under the restricted stock incentive plan[133]. - The total equity attributable to the parent company is 1,038,018,393.95 CNY, with a significant increase in capital reserves to 287,091,061.36 CNY[196]. Legal and Compliance Matters - The company is involved in significant litigation, with a claim for 30,410.88 million yuan related to a breach of contract from a share acquisition agreement[108]. - The company has resolved non-major litigation cases amounting to 3,942.05 million yuan, with settlements or victories totaling 3,437.54 million yuan[109]. - There were no violations regarding external guarantees during the reporting period[104]. - The semi-annual financial report has not been audited[105]. Corporate Social Responsibility - The company has organized volunteer activities at charitable institutions, emphasizing a corporate culture that respects and nurtures talent, aiming for mutual growth between employees and the company[99]. - The company is focusing on rural revitalization, providing operational support services to the Rural Revitalization Administration, and has developed a grid-based service management system in Chengmai County, Hainan Province[99].

Financial Performance - The company's operating revenue for Q1 2021 was ¥379,126,680.69, representing a decrease of 23.59% compared to ¥496,146,140.14 in the same period last year[8]. - The net profit attributable to shareholders was a loss of ¥41,757,579.93, an improvement from a loss of ¥70,709,747.99 in the previous year[8]. - The net cash flow from operating activities was negative at ¥197,232,737.31, compared to a negative cash flow of ¥159,467,252.59 in the same period last year[8]. - The basic earnings per share were -¥0.0587, an improvement from -¥0.0994 in the same period last year[8]. - The weighted average return on net assets was -4.04%, an improvement of 3.36% from -7.40% in the previous year[8]. - The net profit for Q1 2021 was -13,182,976.43 CNY, an improvement from -52,372,528.69 CNY in the same period last year, representing a reduction of approximately 74.8%[44]. - Operating profit for Q1 2021 was -13,139,806.63 CNY, compared to -50,258,537.17 CNY in Q1 2020, indicating a significant decrease in losses by about 73.8%[44]. - The total comprehensive income for Q1 2021 was -13,182,976.43 CNY, compared to -52,372,528.69 CNY in the same period last year, indicating a significant reduction in losses[45]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,486,073,619.35, down 6.78% from ¥2,667,022,974.11 at the end of the previous year[8]. - The total liabilities of the company decreased to CNY 1,406,526,141.84 from CNY 1,542,847,413.68, a reduction of approximately 8.86%[32][33]. - The company's total assets decreased to CNY 2,720,849,079.08 from CNY 2,732,332,863.02 at the end of 2020[37]. - The company's long-term equity investments decreased to CNY 1,843,366,672.64 from CNY 1,849,319,739.83 at the end of 2020[36]. - The total non-current assets increased to CNY 2,111,768,760.12 as of March 31, 2021, compared to CNY 2,068,041,346.16 at the end of 2020[36]. - The company's current assets decreased to CNY 1,342,576,030.50 from CNY 1,567,393,030.47, reflecting a reduction of about 14.36%[30][31]. - The company's equity attributable to shareholders decreased to CNY 1,014,831,164.91 from CNY 1,053,445,186.39, reflecting a decline of about 3.67%[33]. Cash Flow - Cash received from sales decreased by 39.92% year-on-year to ¥428.70 million, primarily due to a decline in digital communication business revenue[15]. - Cash paid for purchasing goods and services decreased by 41.60% year-on-year to ¥381.84 million, attributed to a reduction in media resource procurement[15]. - The company's cash and cash equivalents decreased by 38.44% year-on-year to ¥408.07 million, primarily due to investments in financial products and payments for prior purchases[15]. - Investment cash outflows decreased by 41.29% year-on-year to ¥300.00 million, mainly due to reduced financial product purchases[15]. - The net cash flow from operating activities for Q1 2021 was -197,232,737.31 CNY, worsening from -159,467,252.59 CNY in the previous year[48]. - Cash and cash equivalents at the end of Q1 2021 stood at 390,184,586.27 CNY, down from 717,303,576.34 CNY at the end of Q1 2020, a decrease of about 45.6%[48]. - The company reported a decrease in financial expenses to 8,665,651.32 CNY in Q1 2021 from 12,076,166.49 CNY in the previous year[44]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 54,269[11]. - The largest shareholder, Beijing Jiuxi Technology Investment Co., Ltd., held 13.68% of the shares, totaling 97,301,009 shares[11]. Legal and Compliance - The company is actively pursuing legal avenues to protect its rights regarding ongoing litigation involving Shanghai Yitong[19]. - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[25]. - There were no instances of non-compliance regarding external guarantees during the reporting period[24]. - The company did not engage in any research, communication, or interview activities during the reporting period[26]. - The company has not reported any expected impairment of principal or other potential impairment situations related to entrusted financial management[24]. Other Financial Metrics - The company reported non-operating income of ¥1,096,029.11, primarily from investment management gains and government subsidies[9]. - The company reported a 61.33% increase in taxes and surcharges to ¥1.65 million, primarily due to increased additional tax on share business[15]. - The company’s receivables increased by 456.12% year-on-year to ¥17.80 million, driven by an increase in bill settlements in the digital communication business[15]. - The company’s investment income decreased by 44.70% year-on-year to ¥2.60 million, primarily due to the disposal of equity in a subsidiary[15]. - The subsidiary Huaxia Diantong was officially listed on the New Third Board on April 23, 2021[16].

Financial Performance - The company's operating revenue for 2020 was ¥2,821,408,719.24, a decrease of 9.04% compared to ¥3,101,650,196.18 in 2019[24]. - The net profit attributable to shareholders for 2020 was ¥71,626,575.82, representing a 37.05% increase from ¥52,264,905.34 in 2019[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥206,488,912.47, with no comparison available for 2019 due to negative values[24]. - The net cash flow from operating activities increased by 16.98% to ¥196,546,348.04 in 2020 from ¥168,011,622.15 in 2019[24]. - The basic earnings per share for 2020 was ¥0.1007, up 37.01% from ¥0.0735 in 2019[24]. - The company's total assets at the end of 2020 were ¥2,667,022,974.11, a decrease of 12.16% from ¥3,036,280,249.02 at the end of 2019[24]. - The net assets attributable to shareholders at the end of 2020 were ¥1,053,445,186.39, down 9.37% from ¥1,162,415,452.99 at the end of 2019[24]. - The company reported a significant increase in government subsidies, with amounts of ¥16,106,464.66 in 2020 compared to ¥5,871,818.75 in 2019[30]. - The total operating revenue for the company was 2,821,408,719.24 yuan, a decline of 9.04% compared to 3,101,650,196.18 yuan in the previous year[71]. - The company's electronic government business revenue was 503,920,885.43 yuan, down 27.80% from the previous year, while maintaining a gross margin of 81.29%[75]. Business Strategy and Development - The company plans to strengthen its technology research and development capabilities and increase R&D investment to enhance core competitiveness[7]. - The company aims to deepen its market presence and enhance technological innovation to mitigate risks from macroeconomic fluctuations and policy changes[6]. - The company emphasizes the importance of adapting to rapid technological changes and market demands to maintain its competitive edge[7]. - The company is focusing on integrating emerging technologies such as cloud computing, big data, and artificial intelligence with the real economy to enhance data governance for government and enterprise clients[37]. - The company is focusing its development strategy more on core management software business[105]. - The company plans to use self-funded or self-raised funds for future investments in projects that have changed their fundraising purposes[110]. - The company is exploring new business growth points in online insurance, online education, and gaming sectors due to changing market demands[67]. - The company aims to focus on industry-specific solutions to create differentiated advantages and expand its market presence in sectors such as finance, transportation, and education[127]. Risk Management - The company reported a significant risk related to accounts receivable due to the large scale of its media resource costs, which could impact cash flow if not managed properly[8]. - The company has established a customer credit rating system to improve the collection of accounts receivable and mitigate financial risks[8]. - The company is actively monitoring the legal proceedings related to the Shanghai Yitong case, which may affect its financial position depending on the outcome[10]. - The company is committed to enhancing post-merger management to reduce the risk of goodwill impairment[10]. Research and Development - The company launched the "Nüwa Platform," a next-generation technology platform aimed at facilitating the digital and intelligent transformation of government departments and large enterprises[42]. - The company obtained 149 new software copyrights and 5 invention patents during the reporting period, bringing the total to 1,015 software copyrights and 37 patents[43]. - Research and development expenses totaled CNY 293,923,353.34 in 2020, accounting for 10.42% of operating revenue, a decrease of 15% from the previous year[86]. - The company has invested significantly in R&D for the next-generation group management platform, leveraging new technologies such as SaaS and big data[104]. Corporate Governance and Compliance - The company has committed to avoiding or minimizing related party transactions and ensuring fair market practices in any unavoidable transactions[138]. - The company has established a commitment to avoid any actions that could damage the interests of its subsidiaries and minority shareholders[142]. - The company will independently conduct transactions with third parties through its subsidiaries, ensuring transparency and compliance with regulations[141]. - The company has outlined specific measures to ensure compliance with legal and regulatory requirements in related party transactions[142]. Shareholder and Equity Management - The company has not declared any cash dividends or stock bonuses for the year[11]. - The company did not distribute cash dividends for the years 2018, 2019, and 2020 due to negative profits available for distribution to ordinary shareholders[134][135][136]. - The cash dividend payout ratio for 2020 was 0.00%, while the repurchase amount represented 16.89% of the net profit attributable to ordinary shareholders[136]. - The company repurchased a total of 8,294,433 shares, representing 1.1662% of the total share capital, with a total transaction amount of RMB 60,092,542.04[193]. Market and Operational Challenges - The company achieved a revenue of 762.74 million yuan in the management software business, a year-on-year decrease of 23.94% due to project delays caused by the pandemic[53]. - The company's digital marketing business generated revenue of 204,687.23 million yuan, a decrease of 1.24% year-on-year, indicating ongoing pressure and challenges in performance growth[66]. - The company continues to deepen cooperation with major state-owned construction enterprises, enhancing its market expansion efforts[62]. - The company has made breakthroughs in its smart financial solutions, enhancing capabilities in RPA, voice recognition, OCR, and deep machine learning[50]. Future Outlook - The future outlook emphasizes the integration of big data, cloud computing, and AI technologies to support digital transformation and improve government service efficiency[124]. - The company has set performance guidance for the next fiscal year, projecting a revenue increase of approximately 15%[200]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[200]. - The annual report outlines a strategic focus on enhancing customer engagement through digital platforms, aiming for a 25% increase in user interaction[200].

Financial Performance - Operating revenue for the reporting period was CNY 618,483,677.01, representing an 18.17% decrease compared to the same period last year[7]. - Net profit attributable to shareholders of the listed company was a loss of CNY 19,580,838.20 for the reporting period[7]. - Basic earnings per share were CNY -0.0275, compared to CNY -0.1808 for the same period last year[7]. - The weighted average return on net assets was -2.25%, a decrease of 10.42% year-on-year[7]. - Total operating revenue for Q3 2020 was CNY 618.48 million, a decrease of 18.1% from CNY 755.84 million in Q3 2019[51]. - The net profit for Q3 2020 was a loss of CNY 19.98 million, compared to a profit of CNY 87.88 million in Q3 2019[51]. - The total comprehensive income for the third quarter was a loss of CNY 24,436,075, compared to a profit of CNY 88,674,918 in the previous year[52]. - The company reported a total comprehensive income loss of CNY 10,754,880.35 for the parent company, compared to a profit of CNY 88,261,436.67 in the previous year[56]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,468,351,591.19, a decrease of 18.70% compared to the end of the previous year[7]. - The company's total assets decreased to CNY 2.60 billion as of September 30, 2020, from CNY 2.76 billion at the end of 2019, a decline of 5.8%[49]. - The total liabilities amounted to CNY 1.55 billion, slightly down from CNY 1.56 billion at the end of 2019[50]. - The company's total liabilities decreased to approximately ¥1.51 billion from ¥1.84 billion, a reduction of about 17.9% year-on-year[45]. - Total liabilities increased from CNY 1,842,123,041.48 to CNY 2,055,760,389.61, an increase of CNY 213,637,348.13[74]. - Owner's equity attributable to shareholders decreased by CNY 164,421,613.71, from CNY 1,162,415,452.99 to CNY 997,993,839.28[74]. Cash Flow - The net cash flow from operating activities was a negative CNY 24,302,498.45 for the reporting period[7]. - Cash and cash equivalents decreased by 37.72% to ¥466.26 million, primarily due to repayment of acquisition loans[15]. - Cash received from tax refunds increased by 52.17% to ¥15.49 million, attributed to higher VAT refunds[17]. - Cash paid for various taxes decreased by 37.06% to ¥53.62 million, mainly due to a decline in profits[17]. - Operating cash flow for the period was negative at -42,049,812.25 CNY, compared to a positive 144,199,895.72 CNY in the previous period, indicating a significant decline in operational performance[68]. - The company reported a net decrease in cash and cash equivalents of -129,191,029.50 CNY, compared to -41,913,975.71 CNY in the previous period, indicating worsening liquidity[69]. Shareholder Information - The company had a total of 61,020 common shareholders at the end of the reporting period[11]. - The largest shareholder, Beijing Jiuxi Technology Investment Co., Ltd., held 13.68% of the shares, totaling 97,301,009 shares[11]. - The company repurchased a total of 8,294,433 shares, accounting for 1.1662% of the total share capital, with a total transaction amount of RMB 60,092,542.04[25]. - The company plans to use the repurchased shares for employee stock ownership plans or equity incentive plans[26]. Inventory and Receivables - Accounts receivable decreased by 32.02% to ¥434.89 million, attributed to improved collection efforts in digital communication business[15]. - Inventory increased by 267.85% to ¥80.11 million, mainly due to the implementation of new revenue standards and increased procurement for Huaxia Daitong project[15]. - The company's retained earnings showed a significant decline, with an unallocated profit of CNY -740.55 million compared to CNY -613.87 million at the end of 2019[50]. - The company reported a significant increase in inventory to CNY 44.02 million from CNY 2.44 million, indicating a significant rise in stock levels[47]. Project Updates and Future Outlook - Huaxia Daitong completed its transformation into a joint-stock company as of June 30, 2020, and is progressing towards listing on the New Third Board[23]. - The company has delayed the completion of the Jiuqi Government Affairs R&D Center project to December 31, 2020, due to various construction interruptions[31]. - The Next-Generation Group Control Platform project has been extended to June 30, 2021, with a focus on R&D costs primarily for personnel[32]. - The company anticipates potential losses or significant changes in net profit for the upcoming reporting period, but specific figures are not disclosed[35]. - The company decided to terminate the "Digital Marketing Operation Platform" project due to slow progress and misalignment with current business strategy, reallocating remaining funds to supplement working capital[33]. Financial Adjustments and Standards - The company adjusted its financial statements due to the implementation of new revenue and leasing standards, impacting the balance sheet[70]. - The company adopted the new revenue recognition standard starting January 1, 2020, impacting the financial statements[80].

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].