Part I [Important Notice](index=2&type=section&id=Important%20Notice) The Board of Directors, Supervisory Board, and senior management guarantee the report's accuracy, while the company plans no cash dividends, bonus shares, or capital reserve conversions, noting risks like macroeconomics and the Shanghai Yitong case - The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, free from false records, misleading statements, or major omissions[4](index=4&type=chunk) - Company head Zhao Fujun, chief accountant Ding Dan, and head of accounting Wei Wenjun declare the financial report in this semi-annual report is true, accurate, and complete[4](index=4&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5](index=5&type=chunk) - While currently free from major operational risks, investors are advised to note macroeconomic and policy risks, industry competition, accounts receivable recovery, and the Shanghai Yitong case with related compensation risks[4](index=4&type=chunk) [Table of Contents and Reference Documents](index=3&type=section&id=Table%20of%20Contents%20and%20Reference%20Documents) This section outlines the semi-annual report's main chapters, including key notices, company profile, MD&A, and other data, along with a list of reference documents for completeness and traceability - The main chapters of the report include Important Notice, Company Profile and Key Financial Indicators, Management Discussion and Analysis, and Other Submitted Data[7](index=7&type=chunk) - Reference documents include signed and sealed financial statements, originals of all publicly disclosed company documents and announcements, and the original full and summary semi-annual report signed by the legal representative[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) [Definitions](index=5&type=section&id=Definitions) This section defines common terms used in the report, including company abbreviations, reporting period, key subsidiaries, and essential technology concepts like AI, GPT, and low-code, ensuring clear understanding - The reporting period refers to January 1, 2025, to June 30, 2025[13](index=13&type=chunk) - AI is defined as a new technical science researching and developing theories, methods, technologies, and application systems to simulate, extend, and expand human intelligence, serving as a key driver for the new round of technological revolution and industrial transformation[13](index=13&type=chunk) - GPT refers to Generative Pre-trained Transformer models, a deep learning model for text generation trained on internet-based data[13](index=13&type=chunk) - Low-code refers to a development platform that enables rapid visual generation of new applications with minimal or no coding, primarily using drag-and-drop methods[13](index=13&type=chunk) Part II Company Profile and Key Financial Indicators [Company Profile and Contact Information](index=6&type=section&id=Company%20Profile%20and%20Contact%20Information) The company, Jiuqi Software (stock code 002279) listed on SZSE, has Zhao Fujun as legal representative, with unchanged contact details for its secretary and representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Jiuqi Software | | Stock Code | 002279 | | Listed Stock Exchange | Shenzhen Stock Exchange | | Legal Representative | Zhao Fujun | Contact Information | Position | Name | Phone | Email | | :--- | :--- | :--- | :--- | | Board Secretary | Wang Haixia | 010-58022988 | whx@jiuqi.com.cn | | Securities Affairs Representative | Qiu Jing | 010-58022988 | qiujing@jiuqi.com.cn | - The company's registered address, office address, website, and email remained unchanged during the reporting period, as detailed in the 2024 annual report[17](index=17&type=chunk) [Key Accounting Data and Financial Indicators](index=6&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) This period, revenue significantly dropped by **51.22% to RMB 855.75 million**, but net loss attributable to shareholders narrowed from **RMB 150 million to RMB 75 million**, with total assets and net assets also decreasing Key Accounting Data and Financial Indicators for the Current Period | Indicator | Current Period (RMB) | Prior Period (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 855,750,811.42 | 1,754,277,088.75 | -51.22% | | Net Profit Attributable to Shareholders of Listed Company | -75,393,481.86 | -149,805,301.52 | -- | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains and Losses) | -80,668,769.11 | -154,482,281.84 | -- | | Net Cash Flow from Operating Activities | -400,975,229.29 | -452,677,661.90 | -- | | Basic Earnings Per Share | -0.0872 | -0.1732 | -- | | Diluted Earnings Per Share | -0.0872 | -0.1732 | -- | | Weighted Average Return on Net Assets | -5.48% | -9.45% | 3.97% | | **End of Current Period** | **End of Prior Year** | **Change from Prior Year-End** | | | Total Assets | 2,145,876,850.70 | 2,523,615,668.48 | -14.97% | | Net Assets Attributable to Shareholders of Listed Company | 1,346,513,035.67 | 1,407,167,296.80 | -4.31% | - Net profit after deducting the impact of share-based payments was **RMB -60,768,481.86**[20](index=20&type=chunk) [Differences in Accounting Data Under Domestic and Overseas Accounting Standards](index=7&type=section&id=Differences%20in%20Accounting%20Data%20Under%20Domestic%20and%20Overseas%20Accounting%20Standards) During the reporting period, the company reported no differences in net profit or net assets between financial statements prepared under international or overseas accounting standards and Chinese accounting standards - During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards[21](index=21&type=chunk) - During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards[22](index=22&type=chunk) [Non-Recurring Gains and Losses and Amounts](index=7&type=section&id=Non-Recurring%20Gains%20and%20Losses%20and%20Amounts) Total non-recurring gains and losses for this period amounted to **RMB 5,275,287.25**, primarily from government grants, fair value changes in financial assets, wealth management income, and reversal of impairment provisions for receivables Non-Recurring Gains and Losses and Amounts | Item | Amount (RMB) | Explanation | | :--- | :--- | :--- | | Gains and losses from disposal of non-current assets | -173,446.62 | | | Government grants recognized in current profit or loss | 960,381.64 | | | Gains and losses from changes in fair value and disposal of financial assets and liabilities | 2,291,079.95 | Primarily due to fair value changes in financial assets held for trading during the reporting period | | Gains and losses from entrusted investments or asset management | 870,886.91 | Primarily due to income from purchasing wealth management products during the reporting period | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 1,548,803.33 | Primarily due to the reversal of bad debt provisions for data transmission business accounts receivable individually provided for in prior years, recovered during the reporting period | | Other non-operating income and expenses apart from the above | 422,201.38 | Primarily due to contract penalty income | | Less: Income tax impact | 546,155.91 | | | Minority interest impact (after tax) | 98,463.43 | | | **Total** | **5,275,287.25** | | Part III Management Discussion and Analysis [Company's Main Businesses During the Reporting Period](index=9&type=section&id=Company%27s%20Main%20Businesses%20During%20the%20Reporting%20Period) The company focuses on digital government, enterprise, and marketing, leveraging 'large models + intelligent agents' to empower vertical scenarios, enhancing its Noah platform with AI and strengthening product lines in management software and digital communication - The company specializes in informatization, digital transformation, and intelligent upgrade services for government and enterprise clients, focusing on three major business areas: digital government, digital enterprise, and digital marketing[27](index=27&type=chunk) - During the reporting period, the company accelerated the integration of the AI general large model ecosystem, continuously iterated and optimized the Noah platform, officially released Noah GPT 3.0, and completed the construction of eight major technical capability systems[27](index=27&type=chunk) - Centered on the Noah platform, the company simultaneously advances 'platform upgrade, AI empowerment, and security foundation,' continuously improving its main product lines and focusing on both management software and digital communication sectors[27](index=27&type=chunk) [Main Product Line Overview](index=9&type=section&id=Main%20Product%20Line%20Overview) The company's eight product lines are intelligently upgraded with AI large model technology, enhancing government reporting, asset management, enterprise performance, financial risk control, smart courts, intelligent transportation, smart construction, and data asset platforms - The government reporting and statistics product line, based on a large model foundation, has fully upgraded its pre-budget and final accounts public cloud platform, enhancing large model capabilities such as intelligent auditing and smart reporting for its products[28](index=28&type=chunk) - The asset management product line deeply integrates AI large model technology into core scenarios, launching the 'National Administrative and Public Institutions State-owned Asset Adjustment and Sharing Platform' to build a nationwide 'single network for asset adjustment and sharing'[29](index=29&type=chunk) - The enterprise performance product line, driven by AI technology and leveraging Noah GPT's large model governance and extension capabilities, implements typical scenarios such as smart benchmarking, intelligent forecasting, smart editing and auditing, and in-depth analysis[31](index=31&type=chunk) - The financial product line accelerates the digital upgrade of business-finance collaboration, launching smart reimbursement products and empowering the Ministry of Finance's internal control evaluation with AI large models, increasing audit accuracy to approximately **90%**[32](index=32&type=chunk) - The smart court product line fully integrates into a 'single network,' iteratively upgrading trial software, launching new products like trial audio and video desensitization, and optimizing the underlying architecture of the Rhythm large model[33](index=33&type=chunk) - The smart transportation product line launched the lightweight TOCC series product, Smart Transportation Basic Technology Platform V1.0, and deepened the application of AI large models to enhance product intelligence[34](index=34&type=chunk) - The smart construction product line optimized the smart construction site IOT platform, deepened BIM model development and application display, and integrated large model capabilities into core project management scenarios using Noah GPT[35](index=35&type=chunk) - The data asset product line launched the 'Jiuqi Noah Data Intelligence Platform,' integrating AI and large model technologies to achieve precise control over all stages of data assets, from rights confirmation and registration to circulation and transaction[36](index=36&type=chunk) [Main Business Expansion Overview](index=11&type=section&id=Main%20Business%20Expansion%20Overview) Management software revenue grew **26.94% to RMB 325 million**, expanding across various sectors, while digital communication revenue fell **64.76% to RMB 527 million** due to overseas platform policy changes, yet it continues to drive domestic and international market growth through marketing and technology Management Software Business Revenue | Indicator | Current Period (RMB 10,000) | Year-on-Year Change | | :--- | :--- | :--- | | Management Software Business Revenue | 32,507.42 | 26.94% | - The finance sector comprehensively advanced its business layout in asset management, departmental final accounts, unified reporting, financial and cultural asset supervision, internal control, and electronic accounting vouchers, achieving nationwide data interoperability and market penetration[38](index=38&type=chunk) - The education sector deepened its digital service layout, making progress in industry regulatory informatization, smart higher education, intelligent basic education, and socialized vocational education, signing new contracts with multiple 'Double First-Class' universities[39](index=39&type=chunk) - The transportation sector actively explored new growth points in integrated transportation and smart civil aviation, signing new projects with the Ministry of Transport and China Transport Telecommunications & Information Center, and launching the UOM HarmonyOS version[40](index=40&type=chunk) - The political and legal sector, centered on court business, enhanced product intelligence, optimized data interaction processes, and leveraged the Rhythm large model to create a legal vertical large model, expanding into procuratorial and judicial administration businesses[41](index=41&type=chunk) - The construction and real estate sector continued to deeply cultivate the financial domain of central enterprise headquarters, meticulously developing central enterprise secondary units, and successfully signed management system projects with China Railway 19th Bureau and China Railway Major Bridge Engineering Group, achieving rapid product replication[42](index=42&type=chunk) - The energy and manufacturing sector deeply integrated into digital and intelligent transformation, successfully signing key projects with China Huadian, CNOOC, and China Coal Group, consolidating its advantages in financial process automation and intelligent management decision-making[44](index=44&type=chunk) Digital Communication Business Revenue | Indicator | Current Period (RMB 10,000) | Year-on-Year Change | | :--- | :--- | :--- | | Digital Communication Business Revenue | 52,668.48 | -64.76% | - Digital communication business revenue decreased by **64.76%** year-on-year, primarily due to changes in overseas media platform policies requiring some revenue to be recognized using the net method[45](index=45&type=chunk) - The digital communication business deeply cultivates new media ecosystem operations and precision marketing in the domestic market, expands global resource networks like Meta and Google for overseas business, and deepens the application of its independently developed AI marketing assistant, JoinMC[45](index=45&type=chunk) [Industry Development and Countermeasures](index=13&type=section&id=Industry%20Development%20and%20Countermeasures) China's digital economy is thriving, with software and IT services growing. The company, a core digital economy player, aligns with national policies by focusing on digital government and enterprise, leveraging its Noah low-code platform for scenario-based data governance and digital transformation - In the first half of 2025, China's software and information technology service industry performed well, achieving software business revenue of **RMB 7.0585 trillion**, a **11.9%** year-on-year increase; total profit reached **RMB 858.1 billion**, up **12.0%** year-on-year[46](index=46&type=chunk) - The company's products and services focus on digital government and digital enterprise, aligning with key areas of digital economic development, leveraging nearly **30 years** of government data service experience, and deeply integrating AI technology[47](index=47&type=chunk) - The company will drive future growth through scenario-based exploration and refined data governance, leveraging its new generation Noah low-code platform to deepen its presence in government assets, financial supervision and internal control, electronic vouchers, enterprise performance, and treasury management scenarios[48](index=48&type=chunk) [Core Competitiveness Analysis](index=14&type=section&id=Core%20Competitiveness%20Analysis) The company's core competitiveness lies in R&D, products, and brand, with continuous development of its Noah GPT 3.0 AI platform, breakthroughs in data asset management and EPM, and enhanced market influence through refined services and partner programs - The company, driven by technological innovation, continuously builds an independent, controllable, open, compatible, and evolving technical system, iteratively launching the Jiuqi AI foundation—Noah GPT 3.0 series versions[49](index=49&type=chunk) - The company holds important qualifications such as CMMI L5, Information Technology Service Operation and Maintenance Standard Compliance Certificate (Level 1), and Information System Construction and Service Capability Level (CS4) Certificate, and acquired **16 new software copyrights and 2 invention patents** during the reporting period[50](index=50&type=chunk) - Leveraging the deep integration capabilities of the Noah GPT large model, the company has achieved breakthrough progress in data asset management and operations, financial supervision and internal control management, and the high-end EPM market[51](index=51&type=chunk) - With extensive project experience and a strong industry reputation, the company received honors such as the '2024 China CFO Excellent Partner Award – 2024 China EPM Gold Service Provider'[52](index=52&type=chunk) - The company deepens its services, improves cross-departmental collaboration mechanisms, launched the 'Escort Action' to monitor the entire project lifecycle, and promotes the city partner program to enhance regional service response capabilities[53](index=53&type=chunk)[54](index=54&type=chunk) [Main Business Analysis](index=15&type=section&id=Main%20Business%20Analysis) Operating revenue decreased by **51.22%** due to digital communication policy changes, shifting to net revenue recognition, yet e-government and group control revenues grew by **35.86%** and **17.11%** respectively, maintaining high gross margins, while internet business revenue dropped **64.77%** but improved gross margin Year-on-Year Changes in Key Financial Data | Indicator | Current Period (RMB) | Prior Period (RMB) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 855,750,811.42 | 1,754,277,088.75 | -51.22% | Affected by changes in customer policies of overseas media platforms for digital communication business suppliers, some revenue no longer meets the requirements for recognition using the gross method and needs to be recognized using the net method | | Operating Cost | 518,306,742.12 | 1,490,913,624.51 | -65.24% | Affected by changes in customer policies of overseas media platforms for digital communication business suppliers, some revenue no longer meets the requirements for recognition using the gross method and needs to be recognized using the net method | | Selling Expenses | 49,588,585.20 | 49,011,577.73 | 1.18% | | | Administrative Expenses | 258,961,933.00 | 232,879,795.86 | 11.20% | | | Financial Expenses | -4,537,935.22 | -1,533,930.09 | -- | Primarily due to a decrease in exchange losses this period | | Income Tax Expense | -1,937,174.13 | -228,662.61 | -- | Primarily due to a year-on-year decrease in deferred income tax expense this period | | R&D Investment | 130,445,957.43 | 159,141,185.43 | -18.03% | | | Net Cash Flow from Operating Activities | -400,975,229.29 | -452,677,661.90 | -- | | | Net Cash Flow from Investing Activities | 241,898,071.24 | 216,395,508.68 | 11.79% | | | Net Cash Flow from Financing Activities | 22,799,560.30 | -121,822,222.30 | -- | Primarily due to payment of share repurchase funds for minority shareholders of subsidiaries and secondary market share repurchase funds in the prior year | | Net Increase in Cash and Cash Equivalents | -137,542,230.70 | -357,871,269.76 | -- | | | Credit Impairment Loss | 1,581,655.81 | -3,004,401.41 | -- | Primarily due to the impact of bad debt provision reversal this period | | Gains from Changes in Fair Value | 2,291,079.95 | 4,027,987.29 | -43.12% | Primarily due to changes in fair value of financial assets held for trading and other non-current financial assets this period | | Other Income | 5,084,483.31 | 7,581,426.46 | -32.94% | Primarily due to a year-on-year decrease in VAT refunds received this period | Operating Revenue Composition (by Industry) | Industry | Current Period Amount (RMB) | Proportion of Operating Revenue | Prior Period Amount (RMB) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | E-Government | 182,305,651.01 | 21.30% | 134,187,383.20 | 7.65% | 35.86% | | Group Control | 142,768,504.14 | 16.68% | 121,904,583.53 | 6.95% | 17.11% | | Internet Business | 526,684,776.78 | 61.55% | 1,494,781,987.56 | 85.21% | -64.77% | | Other Businesses | 3,991,879.49 | 0.47% | 3,403,134.46 | 0.19% | 17.30% | Operating Revenue Composition (by Product) | Product | Current Period Amount (RMB) | Proportion of Operating Revenue | Prior Period Amount (RMB) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Software Products | 57,006,643.66 | 6.66% | 42,860,633.94 | 2.44% | 33.00% | | Hardware Products | 7,965,436.41 | 0.93% | 10,809,625.80 | 0.62% | -26.31% | | Technical Services | 260,102,075.08 | 30.39% | 202,421,706.99 | 11.54% | 28.50% | | Information Services | 526,684,776.78 | 61.55% | 1,494,781,987.56 | 85.21% | -64.77% | | Other Businesses | 3,991,879.49 | 0.47% | 3,403,134.46 | 0.19% | 17.30% | Gross Margin of Main Businesses | Industry/Product | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Cost | Year-on-Year Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | E-Government | 182,305,651.01 | 24,597,092.38 | 86.51% | 35.86% | 14.31% | 2.54% | | Group Control | 142,768,504.14 | 3,475,636.75 | 97.57% | 17.11% | -15.76% | 0.95% | | Internet Business | 526,684,776.78 | 489,409,446.74 | 7.08% | -64.77% | -66.59% | 5.06% | | Software Products | 57,006,643.66 | 5,078,233.73 | 91.09% | 33.00% | 41.74% | -0.55% | | Technical Services | 260,102,075.08 | 17,550,753.08 | 93.25% | 28.50% | 25.91% | 0.14% | | Information Services | 526,684,776.78 | 489,409,446.74 | 7.08% | -64.77% | -66.59% | 5.06% | - Internet business operating revenue and operating costs significantly decreased year-on-year, primarily due to changes in overseas media platform customer policies for digital communication business suppliers, requiring some revenue to be recognized using the net method[63](index=63&type=chunk) [Analysis of Assets and Liabilities](index=17&type=section&id=Analysis%20of%20Assets%20and%20Liabilities) Total assets decreased by **14.97%** and net assets by **4.31%** at period-end, with shifts in financial assets, prepayments, and payables. Overseas assets of Jiuqi Digital Communication (Hong Kong) reached **RMB 459 million**, representing **33.42%** of net assets with good returns, though some bank accounts are restricted due to litigation Significant Changes in Asset Composition | Item | Ending Balance (RMB) | Proportion of Total Assets | Prior Year-End Balance (RMB) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 2,145,876,850.70 | 100% | 2,523,615,668.48 | 100% | -14.97% | | | Monetary Capital | 433,659,859.32 | 20.21% | 451,322,500.04 | 17.88% | 2.33% | No significant change | | Accounts Receivable | 600,237,079.65 | 27.97% | 641,686,534.12 | 25.43% | 2.54% | No significant change | | Investment Properties | 50,681,490.57 | 2.36% | 22,922,690.76 | 0.91% | 1.45% | Primarily due to the transfer of self-used real estate to investment properties by a subsidiary this period | | Construction in Progress | 84,937,168.23 | 3.96% | 124,357,662.97 | 4.93% | -0.97% | Primarily due to partial capitalization of Jiuqi Government office building construction this period | | Financial Assets Held for Trading | 314,805,441.67 | 14.67% | 575,024,867.01 | 22.79% | -8.12% | Primarily due to the redemption of wealth management products during the reporting period | | Prepayments | 53,326,778.77 | 2.49% | 16,763,542.33 | 0.66% | 1.83% | Primarily due to an increase in prepayments for digital communication business this period | | Accounts Payable | 273,031,139.82 | 12.72% | 525,641,444.96 | 20.83% | -8.11% | Primarily due to a decrease in unsettled payables to digital communication business suppliers this period | | Employee Benefits Payable | 19,592,583.65 | 0.91% | 123,788,242.50 | 4.91% | -4.00% | Primarily due to the payment of year-end bonuses accrued at the end of the prior year | | Other Payables | 81,220,565.07 | 3.78% | 52,077,453.56 | 2.06% | 1.72% | Primarily due to an increase in restricted stock repurchase obligations recognized this period | Key Overseas Asset Information | Specific Asset Content | Asset Scale (RMB) | Location | Profitability (RMB) | Proportion of Overseas Assets to Company's Net Assets | | :--- | :--- | :--- | :--- | :--- | | Jiuqi Digital Communication (Hong Kong) Co., Ltd. | 459,036,257.64 | Hong Kong | 12,036,709.27 | 33.42% | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (RMB) | Fair Value Change Gains/Losses for the Period (RMB) | Amount Purchased During the Period (RMB) | Amount Sold During the Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 575,024,867.01 | 3,369,818.43 | 520,000,000.00 | 777,999,488.00 | 314,805,441.67 | | Other Non-Current Financial Assets | 5,747,173.86 | -1,078,738.48 | 4,000,000.00 | 0 | 8,668,436.38 | | **Subtotal of Financial Assets** | **580,772,040.87** | **2,291,079.95** | **524,000,000.00** | **777,999,488.00** | **323,473,878.05** | - As of the end of the reporting period, **RMB 2,928,681.55** in funds from the bank account of the company's wholly-owned subsidiary, Jiuqi Digital, were frozen; **RMB 785,110.21** from the bank account of Shanghai Yiqilian Technology Co., Ltd., a subsidiary of Jiuqi Digital, were also frozen[72](index=72&type=chunk) [Investment Analysis](index=19&type=section&id=Investment%20Analysis) During the reporting period, the company's investment decreased by **19.30% to RMB 543 million**, with no securities or derivative investments, or use of raised funds. The major non-equity investment is the Jiuqi Government R&D Center project, with a cumulative investment of **RMB 211 million** and **67.30%** completion Investment Amount During the Reporting Period | Indicator | Investment Amount (RMB) | Investment Amount in Prior Period (RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Investment Amount | 542,629,899.49 | 672,365,935.78 | -19.30% | - The company had no securities or derivative investments during the reporting period[76](index=76&type=chunk)[77](index=77&type=chunk) Significant Non-Equity Investment Information | Project Name | Investment Method | Cumulative Actual Investment Amount as of End of Reporting Period (RMB) | Project Progress | | :--- | :--- | :--- | :--- | | Jiuqi Government R&D Center Construction Project | Self-built | 211,123,788.77 | 67.30% | [Analysis of Major Holding and Associate Companies](index=20&type=section&id=Analysis%20of%20Major%20Holding%20and%20Associate%20Companies) Jiuqi Digital's revenue fell **64.76% to RMB 527 million**, but net profit surged **217.18% to RMB 15.76 million** due to higher gross margins and lower labor costs. Huaxia Diantong turned profitable with **RMB 3.69 million** net profit, while other subsidiaries reduced losses and increased revenue from project completions and cost savings Financial Performance of Major Subsidiaries | Company Name | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | | Jiuqi Digital Communication Co., Ltd. | 526,684,776.78 | 15,348,070.73 | 15,756,617.15 | | Beijing Huaxia Diantong Technology Co., Ltd. | 32,582,555.37 | 3,809,895.27 | 3,692,724.12 | | Beijing Jiuqi Jinjian Technology Co., Ltd. | 24,297,485.71 | -13,322,366.06 | -13,116,340.26 | | Xi'an Jiuqi Software Co., Ltd. | 4,292,555.31 | -15,183,053.60 | -15,183,053.60 | | Beijing Jiuqi Government Software Co., Ltd. | 13,477,093.35 | -31,797,168.92 | -31,706,502.01 | - Jiuqi Digital's operating revenue decreased by **64.76%** year-on-year, mainly due to some revenue being recognized using the net method; net profit increased by **217.18%** year-on-year, primarily due to improved business gross margin and reduced labor costs[82](index=82&type=chunk) - Huaxia Diantong turned losses into profits, achieving a net profit of **RMB 3.6927 million**, mainly due to reduced labor costs and increased project acceptance[83](index=83&type=chunk) - Jiuqi Jinjian, Xi'an Jiuqi, and Jiuqi Government reduced their losses, with operating revenues increasing across the board, primarily due to increased project acceptance and reduced labor costs[83](index=83&type=chunk) - During the reporting period, the company disposed of a portion of its equity in Beijing Jiuqi Yishi Technology Co., Ltd., changing it to an associate company, which had no significant impact[82](index=82&type=chunk) [Risks Faced by the Company and Countermeasures](index=22&type=section&id=Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces four key risks: macroeconomic and policy, industry competition, accounts receivable recovery, and the Shanghai Yitong case, which it addresses through policy monitoring, technological innovation, credit assessment, and legal cooperation to ensure stable development - Macroeconomic and policy risks: National support policies for the software industry may change; the company will continuously monitor policy dynamics, strengthen risk management, and focus on industry-specific development[84](index=84&type=chunk) - Industry competition risks: Technological changes accelerate market competition; the company will strengthen forward-looking judgment, establish rapid response mechanisms, and drive financial digitalization and intelligent transformation through technological innovation[85](index=85&type=chunk) - Accounts receivable recovery risks: The digital communication business may face overdue accounts receivable risks; the company will improve customer credit evaluation, strengthen recovery management, optimize customer structure, and take legal measures[86](index=86&type=chunk) - Shanghai Yitong case and related compensation risks: Key individuals involved in the case have absconded, and compensation amounts are uncertain; the company will continue to actively cooperate with judicial authorities to recover losses[87](index=87&type=chunk) Part IV Corporate Governance, Environment and Society [Changes in Directors, Supervisors, and Senior Management](index=24&type=section&id=Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, the company's Supervisory Board saw changes as Mr. Ren Debao resigned as employee supervisor, and Mr. Wang Zhan was elected as the employee representative supervisor for the Eighth Supervisory Board - Mr. Ren Debao resigned as an employee supervisor of the company's Eighth Supervisory Board on February 21, 2025, but continues to serve as the company's Brand Promotion Department Manager[90](index=90&type=chunk) - Mr. Wang Zhan was elected as the employee representative supervisor of the company's Eighth Supervisory Board by the employee representative assembly[90](index=90&type=chunk) [Profit Distribution and Capital Reserve Conversion to Share Capital for the Current Period](index=24&type=section&id=Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20for%20the%20Current%20Period) The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[91](index=91&type=chunk) [Implementation of Share Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=24&type=section&id=Implementation%20of%20Share%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) The company continues its share incentive plans; **2,440,330** restricted shares from the 2022 plan were repurchased and cancelled in June 2025 due to unmet performance targets, while **10 million** shares from the 2024 plan were granted and registered in January 2025, currently in lock-up - The unlocking conditions for the third restricted period of the 2022 Restricted Stock Incentive Plan were not met at the company level, and **2,440,330** restricted shares were repurchased and cancelled on June 16, 2025[96](index=96&type=chunk) - The 2024 Restricted Stock Incentive Plan granted **10 million** restricted shares to **13 incentive recipients** on December 20, 2024, at a grant price of **RMB 3.15 per share**, with grant registration completed on January 24, 2025[98](index=98&type=chunk) - The 2024 Restricted Stock Incentive Plan is currently in its lock-up period; after the first lock-up period ends, the company will follow regulations to complete approval procedures and related matters[98](index=98&type=chunk) [Environmental Information Disclosure](index=25&type=section&id=Environmental%20Information%20Disclosure) The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[99](index=99&type=chunk) [Social Responsibility](index=25&type=section&id=Social%20Responsibility) The company actively fulfills its social responsibilities by protecting shareholder and creditor rights, prioritizing employee welfare, promoting public welfare, and supporting rural revitalization through improved governance, transparent disclosure, employee care, optimized customer service, and digital village initiatives - The company highly values the legitimate rights and interests of shareholders and creditors, initiated the revision of company regulations under the new Company Law, and strengthened information disclosure and investor communication[100](index=100&type=chunk) - Adhering to the principle of 'respecting, valuing, and treating talent well,' the company protects employee rights through welfare activities, career development training, and the 'President's Talk' column, while consistently engaging in charitable causes like educational support for many years[101](index=101&type=chunk) - Upholding the principle of 'customer first, service paramount,' the company provides solutions through its self-developed technical platform, optimizes after-sales service, strengthens information security management, and adheres to fair procurement and equal opportunity principles to protect customer and supplier rights[102](index=102&type=chunk) - The company actively responds to the national rural revitalization strategy, leveraging its 'Internet + Accounting Factory' business model to upgrade its flagship digital rural product, 'JiuZhangTong' V2.0, thereby supporting the modernization of rural governance[103](index=103&type=chunk) Part V Significant Matters [Commitments](index=27&type=section&id=Commitments) During the reporting period, the company faced an overdue performance commitment and compensation from former actual controller Huang Jiaxiao regarding Shanghai Yitong's asset restructuring. Due to absconding individuals, the final outcome is uncertain, and the company will continue legal action to protect its rights - Former actual controller Huang Jiaxiao's performance commitment and compensation for Shanghai Yitong's 2016-2018 period remain unfulfilled and overdue[105](index=105&type=chunk) - Key individuals involved in the Shanghai Yitong case, such as Huan and Huang, have absconded, leading to uncertainty in the final outcome of rights protection; the company will continue to actively pursue legal avenues to safeguard its legitimate interests[105](index=105&type=chunk) [Fund Occupation and Guarantees](index=27&type=section&id=Fund%20Occupation%20and%20Guarantees) During the reporting period, the company had no non-operating fund occupation by controlling shareholders or other related parties, nor any irregular external guarantees - During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties of the listed company[106](index=106&type=chunk) - The company had no irregular external guarantees during the reporting period[107](index=107&type=chunk) [Audit and Bankruptcy Reorganization](index=27&type=section&id=Audit%20and%20Bankruptcy%20Reorganization) The company's semi-annual financial report is unaudited, and no bankruptcy reorganization matters occurred during the reporting period - The company's semi-annual report is unaudited[108](index=108&type=chunk) - No bankruptcy reorganization matters occurred for the company during the reporting period[110](index=110&type=chunk) [Litigation Matters](index=28&type=section&id=Litigation%20Matters) The company had no major litigation or arbitration during the period. Other resolved cases as plaintiff amounted to **RMB 12.8205 million** (settled/won) and as defendant **RMB 0.0999 million** (settled/lost). Pending cases as plaintiff totaled **RMB 55.1756 million**, and as defendant **RMB 53.6563 million** - The company had no major litigation or arbitration matters during the current reporting period[111](index=111&type=chunk) Other Litigation Matters | Role | Case Type | Outcome/Progress | Amount Involved (RMB 10,000) | | :--- | :--- | :--- | :--- | | Company or Subsidiary as Plaintiff | Closed | Settled or Won | 1,282.05 | | Company or Subsidiary as Defendant | Closed | Settled or Lost | 9.99 | | Company and Subsidiaries as Plaintiff | Pending | Under Review | 5,517.56 | | Company and Subsidiaries as Defendant | Pending | Under Review | 5,365.63 | [Penalties and Integrity Status](index=28&type=section&id=Penalties%20and%20Integrity%20Status) During the reporting period, the company had no penalties or rectification requirements, and its integrity status, along with that of its controlling shareholder and actual controller, remained good, with no inapplicable situations - The company had no penalties or rectification requirements during the reporting period[112](index=112&type=chunk) - During the reporting period, there were no inapplicable situations regarding the integrity status of the company, its controlling shareholder, or actual controller[113](index=113&type=chunk) [Significant Related Party Transactions](index=28&type=section&id=Significant%20Related%20Party%20Transactions) During the reporting period, the company had no significant related party transactions concerning daily operations, asset/equity acquisitions/disposals, joint external investments, or related party debt/credit. There were no financial dealings with affiliated finance companies - The company had no significant related party transactions related to daily operations during the reporting period[113](index=113&type=chunk) - The company had no significant related party transactions involving asset or equity acquisitions or disposals during the reporting period[114](index=114&type=chunk) - There were no related party debt or credit transactions during the reporting period[116](index=116&type=chunk) - There were no deposits, loans, credit lines, or other financial transactions between the company and affiliated finance companies[117](index=117&type=chunk) [Significant Contracts and Their Performance](index=29&type=section&id=Significant%20Contracts%20and%20Their%20Performance) During the reporting period, the company had no significant entrustment, contracting, leasing, or guarantee situations. Wealth management transactions totaled **RMB 631 million**, with **RMB 313 million** outstanding at period-end, and no overdue principal or impairment - The company had no significant entrustment, contracting, or leasing situations during the reporting period[120](index=120&type=chunk)[121](index=121&type=chunk)[123](index=123&type=chunk) - The company had no significant guarantee situations during the reporting period[124](index=124&type=chunk) Wealth Management Overview | Specific Type | Wealth Management Amount Incurred (RMB 10,000) | Outstanding Balance (RMB 10,000) | Overdue Unrecovered Amount (RMB 10,000) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | 46,100 | 14,300 | 0 | | Brokerage Wealth Management Products | 17,000 | 17,000 | 0 | | **Total** | **63,100** | **31,300** | **0** | - No wealth management products showed expected unrecoverable principal or other situations that could lead to impairment[126](index=126&type=chunk) [Other Significant Matters](index=30&type=section&id=Other%20Significant%20Matters) The company had no other significant matters requiring explanation during the reporting period, nor did its subsidiaries - The company had no other significant matters requiring explanation during the reporting period[127](index=127&type=chunk) - The company's subsidiaries had no significant matters during the reporting period[128](index=128&type=chunk) Part VI Share Changes and Shareholder Information [Share Changes](index=31&type=section&id=Share%20Changes) During the reporting period, total shares decreased by **2,838,910 to 862,206,871** due to restricted stock repurchase and cancellation from the 2022 incentive plan, while the 2024 restricted stock grant increased restricted shares and reduced unrestricted shares Share Changes Overview | Item | Quantity Before This Change (Shares) | Proportion Before This Change | Increase/Decrease in This Change (Shares) | Quantity After This Change (Shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 65,318,432 | 7.55% | 7,161,090 | 72,479,522 | 8.41% | | II. Unrestricted Shares | 799,727,349 | 92.45% | -10,000,000 | 789,727,349 | 91.59% | | **III. Total Shares** | **865,045,781** | **100.00%** | **-2,838,910** | **862,206,871** | **100.00%** | - The decrease in total shares was primarily due to the repurchase and cancellation of **2,838,910** restricted shares from the second and third tranches of the 2022 Restricted Stock Incentive Plan[132](index=132&type=chunk) - The registration of the 2024 Restricted Stock Grant led to a decrease in unrestricted shares, as the source of shares for this incentive plan was company repurchased shares[132](index=132&type=chunk) Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (Shares) | Shares Released from Restriction This Period (Shares) | Restricted Shares Increased This Period (Shares) | Restricted Shares at End of Period (Shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhao Fujun | 58,699,130 | 0 | 0 | 58,699,130 | Routine Restriction for Senior Management Shares | | Dang Yi | 0 | 0 | 1,000,000 | 1,000,000 | Share Incentive Restriction | | Zeng Chao | 198,412 | 0 | 1,000,000 | 1,198,412 | Routine Restriction for Senior Management Shares and Share Incentive Restriction | | Wang Haixia | 388,456 | 0 | 700,000 | 1,088,456 | Routine Restriction for Senior Management Shares and Share Incentive Restriction | | Zhu Xiaojun | 312,000 | 0 | 700,000 | 1,012,000 | Routine Restriction for Senior Management Shares and Share Incentive Restriction | | Liu Wensheng | 201,825 | 0 | 700,000 | 901,825 | Routine Restriction for Senior Management Shares and Share Incentive Restriction | | Ding Dan | 22,500 | 0 | 700,000 | 722,500 | Routine Restriction for Senior Management Shares and Share Incentive Restriction | | Shi Lei | 0 | 0 | 1,000,000 | 1,000,000 | Share Incentive Restriction | | Xiao Xingxi | 0 | 0 | 1,000,000 | 1,000,000 | Share Incentive Restriction | | 205 Incentive Recipients of 2022 Restricted Stock Incentive Grant | 2,838,910 | 2,838,910 | 0 | 0 | Share Incentive Restriction | | 5 Incentive Recipients of 2024 Restricted Stock Incentive Grant | 0 | 0 | 3,200,000 | 3,200,000 | Share Incentive Restriction | | **Total** | **65,318,432** | **2,838,910** | **10,000,000** | **72,479,522** | | [Shareholder Numbers and Shareholding](index=34&type=section&id=Shareholder%20Numbers%20and%20Shareholding) At period-end, total common shareholders were **101,538**. Beijing Jiuqi Technology Investment Co., Ltd. was the largest shareholder with **11.29%**, followed by Zhao Fujun with **9.08%**. Zhao Fujun and Dong Taixiang are married and, along with Ouyang Yao and Shi Ruifeng, are shareholders of Beijing Jiuqi Technology Investment Co., Ltd., indicating related party relationships - At the end of the reporting period, the total number of common shareholders was **101,538**[141](index=141&type=chunk) Shareholding of Shareholders with 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at End of Reporting Period (Shares) | Number of Restricted Shares Held (Shares) | Number of Unrestricted Shares Held (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Jiuqi Technology Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 11.29% | 97,301,009 | 0 | 97,301,009 | | Zhao Fujun | Domestic Natural Person | 9.08% | 78,265,507 | 58,699,130 | 19,566,377 | | Dong Taixiang | Domestic Natural Person | 5.52% | 47,555,062 | 0 | 47,555,062 | | Ouyang Yao | Domestic Natural Person | 1.82% | 15,683,397 | 0 | 15,683,397 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 1.41% | 12,165,068 | 0 | 12,165,068 | | Shi Ruifeng | Domestic Natural Person | 0.41% | 3,542,932 | 2,657,199 | 885,733 | | Wang Xiaobo | Domestic Natural Person | 0.29% | 2,500,000 | 0 | 2,500,000 | | Zhang Baoxiang | Domestic Natural Person | 0.22% | 1,881,600 | 0 | 1,881,600 | | Jie Zhihua | Domestic Natural Person | 0.20% | 1,745,535 | 0 | 1,745,535 | | Beijing Qingquanhui Investment Management Co., Ltd. - Qingquanhui No. 1 Private Equity Fund | Domestic Non-State-Owned Legal Person | 0.20% | 1,729,100 | 0 | 1,729,100 | - Zhao Fujun and Dong Taixiang are married, and both, along with shareholders Ouyang Yao and Shi Ruifeng, are shareholders of Beijing Jiuqi Technology Investment Co., Ltd., holding direct equity stakes of **2.625%**, **5.25%**, **1.05%**, and **1.575%** respectively; additionally, Zhao Fujun and Dong Taixiang indirectly hold **89.5%** of Beijing Jiuqi Technology Investment Co., Ltd. through Tianjin Juntai Ronghui Investment Center (Limited Partnership)[141](index=141&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=36&type=section&id=Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, several directors and senior management received granted shares under the 2024 Restricted Stock Incentive Plan, leading to an increase in their period-end shareholdings and the number of restricted shares granted Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Shares Held at Beginning of Period (Shares) | Shares Increased This Period (Shares) | Shares Held at End of Period (Shares) | Number of Restricted Shares Granted This Period (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Dang Yi | Director, President | 0 | 1,000,000 | 1,000,000 | 1,000,000 | | Zeng Chao | Director, Senior Vice President | 264,550 | 1,000,000 | 1,264,550 | 1,000,000 | | Shi Lei | Executive President | 0 | 1,000,000 | 1,000,000 | 1,000,000 | | Xiao Xingxi | Executive President | 0 | 1,000,000 | 1,000,000 | 1,000,000 | | Liu Wensheng | Senior Vice President | 269,100 | 700,000 | 969,100 | 700,000 | | Zhu Xiaojun | Senior Vice President | 416,000 | 700,000 | 1,116,000 | 700,000 | | Wang Haixia | Senior Vice President, Board Secretary | 517,942 | 700,000 | 1,217,942 | 700,000 | | Ding Dan | Senior Vice President, CFO | 30,000 | 700,000 | 730,000 | 700,000 | | **Total** | | **1,497,592** | **6,800,000** | **8,297,592** | **6,800,000** | [Changes in Controlling Shareholder or Actual Controller](index=36&type=section&id=Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) During the reporting period, there were no changes in the company's controlling shareholder or actual controller - The company's controlling shareholder did not change during the reporting period[145](index=145&type=chunk) - The company's actual controller did not change during the reporting period[145](index=145&type=chunk) [Preferred Shares Information](index=36&type=section&id=Preferred%20Shares%20Information) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[146](index=146&type=chunk) Part VII Bond-Related Information [Bond-Related Information](index=37&type=section&id=Bond-Related%20Information) The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[148](index=148&type=chunk) Part VIII Financial Report [Audit Report](index=38&type=section&id=Audit%20Report) The company's semi-annual financial report is unaudited - The company's semi-annual financial report is unaudited[150](index=150&type=chunk) [Financial Statements Overview](index=38&type=section&id=Financial%20Statements%20Overview) This section presents the company's 2025 semi-annual consolidated and parent company financial statements, showing total assets of **RMB 2.146 billion**, total liabilities of **RMB 772 million**, and equity attributable to parent company owners of **RMB 1.347 billion**, with a consolidated net loss of **RMB 82.6353 million** and negative operating cash flow of **RMB 401 million** Key Data from Consolidated Balance Sheet | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 2,145,876,850.70 | 2,523,615,668.48 | | Total Liabilities | 772,398,704.02 | 1,082,256,806.89 | | Total Equity Attributable to Parent Company Owners | 1,346,513,035.67 | 1,407,167,296.80 | | Total Equity | 1,373,478,146.68 | 1,441,358,861.59 | Key Data from Consolidated Income Statement | Item | 2025 Semi-Annual (RMB) | 2024 Semi-Annual (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 855,750,811.42 | 1,754,277,088.75 | | Operating Profit | -85,363,359.06 | -162,492,003.80 | | Total Profit | -84,572,496.54 | -162,275,122.84 | | Net Profit | -82,635,322.41 | -162,046,460.23 | | Net Profit Attributable to Parent Company Shareholders | -75,393,481.86 | -149,805,301.52 | | Basic Earnings Per Share | -0.0872 | -0.1732 | | Diluted Earnings Per Share | -0.0872 | -0.1732 | Key Data from Consolidated Cash Flow Statement | Item | 2025 Semi-Annual (RMB) | 2024 Semi-Annual (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -400,975,229.29 | -452,677,661.90 | | Net Cash Flow from Investing Activities | 241,898,071.24 | 216,395,508.68 | | Net Cash Flow from Financing Activities | 22,799,560.30 | -121,822,222.30 | | Net Increase in Cash and Cash Equivalents | -137,542,230.70 | -357,871,269.76 | | Cash and Cash Equivalents at End of Period | 298,205,662.77 | 347,643,297.89 | [Company Overview](index=55&type=section&id=Company%20Overview) Beijing Jiuqi Software Co., Ltd., established on August 16, 1999, with a registered capital of **RMB 862,206,871.00**, is led by Zhao Fujun, focusing on software development, AI applications, and information system integration, with Beijing Jiuqi Technology Investment Co., Ltd. as its controlling shareholder and Dong Taixiang and Zhao Fujun as ultimate controllers, primarily offering R&D and consulting in e-government, group control, and digital communication - Beijing Jiuqi Software Co., Ltd. was established on August 16, 1999, with a registered capital of **RMB 862,206,871.00**[186](index=186&type=chunk)[199](index=199&type=chunk) - The company's business scope includes software development, AI application software development, information system integration services, data processing services, and technical services[199](index=199&type=chunk) - The company's controlling shareholder is Beijing Jiuqi Technology Investment Co., Ltd., with Dong Taixiang and Zhao Fujun as the ultimate controlling parties[199](index=199&type=chunk) - The company primarily engages in R&D and management consulting services in e-government, group control, and digital communication, leveraging big data technology and resources to create value for clients[200](index=200&type=chunk) [Basis of Financial Statement Preparation](index=57&type=section&id=Basis%20of%20Financial%20Statement%20Preparation) These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and the CSRC's disclosure rules, based on the accrual method and historical cost, with a going concern assumption - These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises, their application guidelines, interpretations, and other relevant regulations issued by the Ministry of Finance[201](index=201&type=chunk) - The company's accounting is based on the accrual method, and all items, except for certain financial instruments, are measured at historical cost[202](index=202&type=chunk) - These financial statements are presented on a going concern basis[203](index=203&type=chunk) [Significant Accounting Policies and Estimates](index=58&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's significant accounting policies and estimates, including compliance with accounting standards, accounting period, business cycle, functional currency, materiality, business combinations, financial instruments, inventory, long-term equity investments, investment properties, fixed assets, construction in progress, borrowing costs, intangible assets, impairment of long-term assets, long-term deferred expenses, employee benefits, provisions, share-based payments, revenue, contract costs, government grants, deferred tax assets/liabilities, leases, right-of-use assets, and share repurchases, with specific policies for depreciation, amortization, R&D capitalization, and revenue recognition tailored to its operations - The company's accounting period follows the calendar year, from January 1 to December 31 annually, with a business cycle of **12 months**[206](index=206&type=chunk)[207](index=207&type=chunk) - Upon initial recognition, the company classifies financial assets into three categories based on the business model for managing them and their contractual cash flow characteristics: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[221](index=221&type=chunk) - The company applies impairment accounting and recognizes loss provisions for items such as notes receivable, accounts receivable, contract assets, other receivables, and long-term receivables, based on expected credit losses[227](index=227&type=chunk) - The company recognizes revenue when it satisfies a performance obligation in a contract, meaning when the customer obtains control of the related goods or services, and applies specific recognition methods based on business types (software and services, information services, accounts receivable factoring)[275](index=275&type=chunk)[277](index=277&type=chunk)[278](index=278&type=chunk) - The company distinguishes between research phase expenditures and development phase expenditures for internal research and development projects; research phase expenditures are recognized in current profit or loss, while development phase expenditures are capitalized when specific conditions are met[258](index=258&type=chunk) - The company recognizes right-of-use assets and lease liabilities for all leases, except for short-term leases and leases of low-value assets that are simplified[287](index=287&type=chunk) [Taxation](index=78&type=section&id=Taxation) The company's main taxes are VAT and corporate income tax. As high-tech enterprises, the company and several subsidiaries enjoy a **15%** corporate income tax rate, while some subsidiaries benefit from small-profit enterprise tax incentives and VAT refunds for self-developed software sales where the actual tax burden exceeds **3%** Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable Value Added | 13%, 9%, 6%, 5%, 3% | | Urban Maintenance and Construction Tax | Actual Turnover Tax Paid | 7%, 5% | | Corporate Income Tax | Taxable Income | 25%, 20%, 15% | - Beijing Jiuqi Software Co., Ltd. and its subsidiaries Xi'an Jiuqi, Guangdong Jiuqi, Jiuqi Government, Jiuqi Cloud Computing, Huaxia Diantong, and Jiuqi Jinjian are high-tech enterprises, applying a **15%** corporate income tax rate for 2025[298](index=298&type=chunk) - Subsidiaries Shanghai Jiuqi, Xinjiang Jiuqi, Chongqing Jiuqi, Chengdu Jiuqi, and Jiuqi Research Institute enjoy small-profit enterprise corporate income tax preferential policies for 2025[299](index=299&type=chunk) - Subsidiaries Guangdong Jiuqi, Huaxia Diantong, and Jiuqi Jinjian, for their sales of self-developed software products in 2025, enjoy a VAT refund policy for the portion where the actual tax burden exceeds **3%**[301](index=301&type=chunk) [Notes to Consolidated Financial Statement Items](index=79&type=section&id=Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section details consolidated financial statement items: monetary funds at **RMB 434 million** (with **RMB 17.4462 million** restricted), trading financial assets at **RMB 315 million** (decreased), accounts receivable at **RMB 600 million** (with **RMB 168 million** impairment), and construction in progress at **RMB 84.9372 million**. Liabilities include accounts payable at **RMB 273 million** (decreased) and contract liabilities at **RMB 338 million**. Equity saw a decrease in share capital due to restricted stock repurchase and an increase in capital reserves from share-based payment expenses. Income statement items show a significant drop in operating revenue and costs due to digital communication, but growth in e-government and group control. R&D expenses were **RMB 130 million**, with **RMB 7.5726 million** capitalized. Cash flows from operating activities were negative, while investing and financing activities were positive Monetary Funds | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Cash on Hand | 210,757.96 | 210,097.96 | | Bank Deposits | 406,835,051.83 | 436,676,516.98 | | Other Monetary Funds | 26,614,049.53 | 14,435,885.10 | | **Total** | **433,659,859.32** | **451,322,500.04** | | Of which: Total funds deposited overseas | 146,228,509.37 | 149,934,273.22 | | Total Restricted Monetary Funds | 17,446,223.94 | 15,574,606.57 | Financial Assets Held for Trading | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Financial assets measured at fair value through profit or loss | 314,805,441.67 | 575,024,867.01 | | Of which: Debt instrument investments | 171,099,019.68 | 173,075,219.13 | | Wealth management products | 143,706,421.99 | 401,949,647.88 | | **Total** | **314,805,441.67** | **575,024,867.01** | Accounts Receivable | Aging | Ending Book Balance (RMB) | Beginning Book Balance (RMB) | | :--- | :--- | :--- | | Within 1 year | 561,614,776.07 | 580,587,656.53 | | 1 to 2 years | 52,875,309.97 | 70,814,689.51 | | 2 to 3 years | 32,206,833.27 | 38,058,533.98 | | Over 3 years | 121,305,170.32 | 124,226,056.80 | | **Total** | **768,002,089.63** | **813,686,936.82** | | Ending Balance of Bad Debt Provision | 167,765,009.98 | 172,000,402.70 | | Book Value | 600,237,079.65 | 641,686,534.12 | Factoring Receivables | Aging | Ending Balance (RMB) | Amount at End of Prior Year (RMB) | | :--- | :--- | :--- | | Over 3 years | 97,247,443.27 | 97,247,443.27 | | 2 to 3 years | 3,000,000.00 | 0 | | **Subtotal** | **100,247,443.27** | **100,247,443.27** | | Less: Bad Debt Provision | 100,247,443.27 | 100,247,443.27 | | **Total** | **0** | **0** | - Factoring receivables have been fully provided for bad debts, primarily involving Beijing Zhongxinnengye Century Technology Co., Ltd., Beijing Huake Guanghui Technology Co., Ltd., and Beijing Libeia Architectural Decoration Engineering Co., Ltd., which are expected to be unrecoverable due to litigation or being listed as dishonest debtors[332](index=332&type=chunk)[335](index=335&type=chunk)[336](index=336&type=chunk) Construction in Progress | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Jiuqi Government R&D Center Construction Project | 84,937,168.23 | 124,357,662.97 | | **Total** | **84,937,168.23** | **124,357,662.97** | Accounts Payable | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Within 1 year | 240,256,776.56 | 490,900,149.06 | | 1 to 2 years | 7,163,050.40 | 11,710,871.07 | | 2 to 3 years | 13,589,551.18 | 17,125,120.33 | | Over 3 years | 12,021,761.68 | 5,905,304.50 | | **Total** | **273,031,139.82** | **525,641,444.96** | Share Capital | Item | Beginning Balance (RMB) | Increase/Decrease in This Change (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | | Total Shares | 864,647,201.00 | -2,440,330.00 | 862,206,871.00 | - In the first half of 2025, the company repurchased and cancelled a total of **2,440,330** restricted shares that had been granted but not yet unlocked, resulting in a decrease in share capital[457](index=457&type=chunk) Capital Reserves | Item | Beginning Balance (RMB) | Increase This Period (RMB) | Decrease This Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | | Capital Premium (Share Premium) | 973,127,335.71 | 0 | 3,660,495.00 | 969,466,840.71 | | Other Capital Reserves | 30,546,652.42 | 14,882,124.78 | 0 | 45,428,777.20 | | **Total** | **1,003,673,988.13** | **14,882,124.78** | **3,660,495.00** | **1,014,895,617.91** | - The increase in capital reserves was primarily due to the recognition of share-based payment expenses of **RMB 14,882,124.78** from the share incentive plan[459](index=459&type=chunk) Operating Revenue and Operating Costs | Item | Revenue for Current Period (RMB) | Costs for Current Period (RMB) | Revenue for Prior Period (RMB) | Costs for Prior Period (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 851,758,931.93 | 517,482,175.87 | 1,750,873,954.29 | 1,490,291,854.24 | | Other Businesses | 3,991,879.49 | 824,566.25 | 3,403,134.46 | 621,770.27 | | **Total** | **855,750,811.42** | **518,306,742.12** | **1,754,277,088.75** | **1,490,913,624.51** | R&D Expenses | Item | Amount Incurred This Period (RMB) | Amount Incurred Prior Period (RMB) | | :--- | :--- | :--- | | Employee Compensation | 113,183,557.31 | 139,963,306.08 | | Depreciation and Amortization | 7,594,892.36 | 7,325,842.20 | | **Total** | **122,873,326.40** | **150,069,410.85** | Supplementary Information to Cash Flow Statement | Supplementary Information | Amount for Current Period (RMB) | Amount for Prior Period (RMB) | | :--- | :--- | :--- | | Net Profit | -82,635,322.41 | -162,046,460.23 | | Net Cash Flow from Operating Activities | -400,975,229.29 | -452,677,661.90 | | Net Increase in Cash and Cash Equivalents | -137,542,230.70 | -357,871,269.76 | [R&D Expenditures](index=113&type=section&id=R%26D%20Expenditures) Total R&D expenditures for this period were **RMB 130 million**, a **18.03%** year-on-year decrease, with **RMB 123 million** expensed and **RMB 7.5726 million** capitalized. The Jiuqi Noah GPT project, in its development phase, is expected to be completed by June 30, 2025, with expenditures already capitalized R&D Expenditures Overview | Item | Amount Incurred This Period (RMB) | Amount Incurred Prior Period (RMB) | | :--

Company Overview - Jiuqi Software's stock price decreased by 2.00% on August 29, trading at 7.34 CNY per share with a total market capitalization of 6.329 billion CNY [1] - The company was established on August 16, 1999, and went public on August 11, 2009 [1] - Jiuqi Software's main business areas include e-government, group management, big data, mobile internet services, mobile advertising, and video application products [1] Financial Performance - For the first quarter of 2025, Jiuqi Software reported a revenue of 312 million CNY, a year-on-year decrease of 56.75% [2] - The company experienced a net loss attributable to shareholders of 116 million CNY, which is a year-on-year increase of 2.53% [2] - Since its A-share listing, Jiuqi Software has distributed a total of 214 million CNY in dividends, with no dividends paid in the last three years [3] Shareholder Structure - As of March 31, 2025, the number of shareholders increased by 2.93% to 108,100, with an average of 7,304 circulating shares per shareholder, a decrease of 4.06% [2] - The top ten circulating shareholders include new entrants such as招商量化精选股票发起式A and招商成长量化选股股票A, with significant holdings of 8.8337 million shares and 1.7464 million shares respectively [3]

Group 1 - The core viewpoint of the news is that Jiuxi Software (002279) has experienced a decline in stock price and significant changes in its financial performance as of the first quarter of 2025 [1] - As of August 25, 2025, Jiuxi Software's stock closed at 7.48 yuan, down 1.06%, with a turnover rate of 6.53% and a trading volume of 515,500 hands, amounting to a transaction value of 388 million yuan [1] - The company reported total revenue of 312 million yuan for the first quarter of 2025, a year-on-year decrease of 56.75%, while net profit attributable to shareholders was 115.93 million yuan, an increase of 2.53% year-on-year [1] Group 2 - Jiuxi Software's financial ratios include a current ratio of 1.882, a quick ratio of 1.816, and a debt-to-asset ratio of 35.89% [1] - The company has made investments in 21 enterprises and participated in 5,000 bidding projects, indicating active engagement in business development [2] - Jiuxi Software holds 102 trademark registrations and 29 patents, along with 5 administrative licenses, showcasing its intellectual property portfolio [2]

Group 1 - The core point of the article is that Beijing Jiuqi Software Co., Ltd. has won a bid for the asset management system project based on the integrated financial budget platform for Guiyang College, with a bid amount of 189,000 [2] - Guiyang College is the purchaser of the asset management system [2] - The announcement regarding the bid results was published on August 20, 2025 [2] Group 2 - Beijing Jiuqi Software Co., Ltd. has made investments in 21 companies and participated in 6,947 bidding projects [1] - The company holds 170 trademark registrations, 29 patents, and 600 copyright registrations [1] - Additionally, Beijing Jiuqi Software has 5 administrative licenses [1]

金融界消息 截至2025年8月14日收盘，久其软件（002279）报收于7.03元，下跌3.03%，换手率5.36%， 成交量42.31万手，成交金额3.02亿元。 天眼查商业履历信息显示，北京久其软件股份有限公司，成立于1999年，位于北京市，是一家以从事软 件和信息技术服务业为主的企业。企业注册资本86220.6871万人民币，实缴资本71043.6578万人民币。 公司法定代表人为赵福君。 通过天眼查大数据分析，北京久其软件股份有限公司共对外投资了21家企业，参与招投标项目5000次， 知识产权方面有商标信息102条，专利信息29条，此外企业还拥有行政许可5个。 来源：金融界 资金流向方面，今日主力资金净流出4356.26万元，占比成交额14.44%。其中，超大单净流出2158.88万 元、占成交额7.15%，大单净流出2197.38万元、占成交额7.28%，中单净流出流出907.41万元、占成交 额3.01%，小单净流入5263.67万元、占成交额17.44%。 久其软件最新一期业绩显示，截至2025一季报，公司营业总收入3.12亿元、同比减少56.75%，归属净利 润11593.44万元，同比增长2 ...

Core Insights - The main business of the company includes the research and development of management software such as report management software, e-government software, group control software, and business intelligence software, providing solutions for financial settlement, statistical and decision analysis, integrated financial and business management, comprehensive budget management, consolidated reporting, related party transaction verification, and asset management for government departments and enterprises [2] - The company's revenue structure shows that information services account for the highest proportion at 74.38%, while technical services account for 20.46% [2] - The company achieved a net profit attributable to shareholders of 0.41 billion in 2009, the year of its IPO, but reported a net loss of 1.56 billion for the latest complete fiscal year of 2024, marking a cumulative decline of 475.43% over the years [2] - Over the past 16 years, the company has recorded losses in 4 years, with years of net profit growth reaching 10 years, accounting for 62.5% [2] Revenue Analysis - In terms of revenue, the company achieved 2.821 billion in 2020 and reached 4.037 billion in 2024, showing a continuous growth trend in the last three years after experiencing a decline in the previous two years [3] - Profitability has shown significant volatility, with the company reporting a net profit of 0.72 billion in 2020, which turned into a net loss of 1.56 billion by 2024 [3] Market Performance - The company's market value peaked at 22.369 billion on June 5, 2015, with the stock price rising to 112.86, but by August 8, the stock price had dropped to 7.35, resulting in a market value of 6.337 billion, a decrease of 16.031 billion, or 71.67% from its peak [5]

证券日报网讯久其软件（002279）8月11日在互动平台回答投资者提问时表示，公司不涉及AI编程项 目。 ...

格隆汇8月11日丨久其软件(002279.SZ)在投资者互动平台表示，公司不涉及AI编程项目。 ...

Core Viewpoint - The company has developed a new generation of digital transformation platform called "Nüwa Platform," which integrates various advanced technologies to support rapid application development and business process automation for government and enterprise clients [1] Group 1: Platform Capabilities - The Nüwa Platform features eight core capabilities: cloud-native, low-code, big data, artificial intelligence, DevOps software engineering, complex environment integration, trusted computing adaptation, and data security [1] - The platform is designed to meet the digital transformation needs of government and enterprise sectors [1] Group 2: Development Philosophy - The company adheres to a platform-based development philosophy, with the Nüwa low-code platform being a culmination of over twenty years of development technology and industry experience [1] - Industry applications built on the Nüwa low-code platform are already widely used among government and enterprise clients [1] Group 3: Future Strategy - The company plans to continue its "technology + scenario" dual-driven strategy, leveraging the new Nüwa low-code platform to provide one-stop services ranging from data governance to asset operation and intelligent applications [1] - The goal is to help clients unlock the potential of data elements [1]

格隆汇8月7日丨久其软件(002279.SZ)在投资者互动平台表示，公司自主研发的新一代政企数智化转型 平台——久其女娲平台，该平台具有云原生、低代码、大数据、人工智能、DevOps软件工程、复杂环 境集成、信创适配以及数据安全八大核心能力，可支持快速应用构建与业务流程自动化，满足政企数字 化转型需求。公司一直坚持平台化的开发理念，女娲低代码平台是公司二十多年开发技术和行业经验的 沉淀平台，基于女娲低代码平台构建的行业应用已经广泛应用于政企客户群中。未来，公司将持续秉 持"技术+场景"双轮驱动战略，依托新一代女娲低代码平台，为政企客户提供数据治理到资产运营再到 智能应用的一站式服务，助力客户挖掘数据要素的潜力。 ...