Financial Performance - The company reported a total revenue of 668.72 million RMB for the year 2020, with a cash dividend of 0.2 RMB per 10 shares distributed to shareholders[6]. - The company's operating revenue for 2020 was ¥2,766,337,844.08, representing a 0.39% increase compared to ¥2,755,676,412.10 in 2019[18]. - The net profit attributable to shareholders for 2020 was ¥299,663,514.27, a 5.25% increase from ¥284,714,313.30 in 2019[18]. - The net cash flow from operating activities improved significantly to ¥59,217,362.37 in 2020, compared to a negative cash flow of ¥345,038,391.02 in 2019, marking a 117.16% increase[18]. - The basic earnings per share for 2020 was ¥0.4481, up 5.24% from ¥0.4258 in 2019[18]. - Total assets at the end of 2020 reached ¥7,467,679,779.44, a 4.80% increase from ¥7,125,538,782.58 at the end of 2019[18]. - The net assets attributable to shareholders increased by 2.56% to ¥4,484,631,585.20 at the end of 2020, compared to ¥4,372,748,627.53 at the end of 2019[18]. - The company achieved total operating revenue of 276,633.78 million RMB, an increase of 0.39% compared to the previous year[94]. - The operating profit reached 33,618.95 million RMB, reflecting a growth of 0.17% year-over-year[94]. - The total profit amounted to 34,227.14 million RMB, which is a 2.27% increase from the previous year[94]. - The company achieved a net profit attributable to shareholders of 299,663,514.27 CNY in 2020, with a total distributable profit of 1,124,223,487.52 CNY by the end of the year[182]. Business Strategy and Market Position - The company’s main business strategy focuses on "smart China business as the leader, with 4G/5G new infrastructure communication business and new generation high-speed backbone optical network business as wings"[16]. - The company plans to continue expanding its market presence and enhancing its product offerings in the software and information technology services sector[16]. - The company aims to leverage advancements in technology to drive innovation in its product development and service offerings[16]. - The company is positioned to benefit from the "new infrastructure" initiatives, including 5G and artificial intelligence, which are expected to drive demand and create new business opportunities[26]. - The company focuses on three core markets: Smart Administrative Regions/Smart Cities, Smart Defense, and Smart Time and Space, aiming to establish itself as a leading provider of comprehensive solutions and operational services in the smart China initiative[29]. - The company has been recognized in the Shenzhen AI 50 Index and the FTSE Russell Global Stock Index, indicating its strong market position and growth potential[28]. - The company has established a risk management framework to address potential risks and uncertainties in its future development[6]. - The company aims to expand its business in the digital economy and digital governance sectors, leveraging advancements in big data, cloud computing, and AI technologies[27]. Research and Development - The company has established five R&D centers in major cities, focusing on key technologies such as artificial intelligence, cloud computing, big data, and IoT, with over 60% of its hardware products and 90% of its software products being self-developed[66][70]. - The company holds 369 valid patents, including 96 invention patents, and has achieved a 50% increase in storage density and a 60% reduction in energy consumption in its proprietary magnetic storage products compared to similar products[70]. - The company has developed a leading visual big data platform supported by AI algorithm libraries and a big data analysis platform, enhancing its capabilities in various application scenarios[39]. - The company emphasizes the importance of talent acquisition and training, collaborating with top universities to build a strong research and innovation team[44]. - The company has received multiple certifications, including CMMI5, indicating its strong capabilities in software development and technology innovation[62][68]. Shareholder Returns and Dividends - The cash dividend distribution plan for 2020 is set at 0.2 CNY per 10 shares, totaling 13,374,472.40 CNY, which represents 4.46% of the net profit[185]. - The company has maintained a consistent cash dividend policy, with the cash dividends for the past three years being 20.28% in 2018, 11.74% in 2019, and 4.46% in 2020 of the net profit attributable to shareholders[184]. - The company has a clear profit distribution policy that emphasizes sustainable development while ensuring reasonable returns to shareholders[178]. - The company has committed to avoiding any business activities that may compete with its own operations, ensuring compliance with competitive commitments[188]. - The company plans to distribute at least 30% of the distributable profits accumulated over the three years from 2018 to 2020 in cash, contingent on profitability and cash flow sufficiency[192]. Strategic Partnerships and Collaborations - The company has formed strategic partnerships with major telecom operators, enhancing its competitive edge in providing integrated smart city solutions[65]. - The company signed a strategic cooperation agreement with Hebei Transportation Investment Group to enhance its capabilities in smart city infrastructure and services[106]. - The company is committed to building a comprehensive ecosystem for domestic information technology and achieving self-sufficiency in key areas[158]. - The company emphasizes collaboration with military enterprises and research institutions to promote military-civilian integration strategies[161]. Challenges and Risks - The company faces risks from policy and market competition, particularly in its Smart China and new generation communication businesses, which are sensitive to government investment decisions[168]. - Project implementation risks are heightened due to the complexity of Smart China projects, necessitating meticulous management throughout the investment and operational processes[169]. - The expansion of the company's scale may introduce management risks, requiring adjustments in management systems and support measures to handle increased operational demands[170]. - The company acknowledges that stock market price fluctuations are influenced by macroeconomic factors, interest rates, and investor sentiment, which can pose additional risks[170]. Future Outlook - The company anticipates a revenue growth forecast of 20% for the next fiscal year, driven by new product launches and market expansion strategies[173]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2022[174]. - The company is committed to sustainability initiatives, aiming for a 25% reduction in carbon footprint by 2025[174]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its service offerings[173]. - The company plans to increase investment in core smart city businesses and innovation, aiming for high-quality development and improved operational capabilities[161].

Financial Performance - The company's revenue for Q1 2021 was ¥725,780,943.42, representing a 46.67% increase compared to ¥494,841,567.00 in the same period last year[9] - Net profit attributable to shareholders was ¥45,962,671.04, up 16.97% from ¥39,295,699.77 year-on-year[9] - The net profit after deducting non-recurring gains and losses was ¥42,308,913.81, reflecting a 22.41% increase from ¥34,563,577.00 in the previous year[9] - The basic earnings per share increased to ¥0.0687, a rise of 16.84% compared to ¥0.0588 in the same period last year[9] - Operating revenue increased by 46.67% year-on-year, driven by significant growth in revenue from smart city solutions and operational services[26] - Net profit grew by 37.42% year-on-year, attributed to the increase in total profit[33] - Total operating revenue for Q1 2021 was CNY 725,780,943.42, an increase of 46.6% compared to CNY 494,841,567.00 in the same period last year[75] - Net profit for Q1 2021 reached CNY 41,094,302.08, representing a 37.5% increase from CNY 29,905,111.76 in Q1 2020[77] Assets and Liabilities - The total assets at the end of the reporting period were ¥7,525,591,296.62, a slight increase of 0.78% from ¥7,467,679,779.44 at the end of the previous year[9] - The total assets of the company were CNY 4,983,384,508.37, down from CNY 5,078,890,491.30, indicating a decrease of 1.9%[76] - Total liabilities amounted to ¥2,800,764,491.62, a slight increase from ¥2,784,697,276.52, representing a growth of approximately 0.58%[69] - Total liabilities decreased to CNY 1,507,618,611.70 from CNY 1,587,884,801.91, a reduction of 5.0%[76] - Non-current assets reached ¥3,935,398,868.38, up from ¥3,874,170,225.30, indicating an increase of about 1.61%[68] Cash Flow - The net cash flow from operating activities was negative at -¥83,527,852.92, a decline of 203.64% compared to -¥27,509,145.79 in the same period last year[9] - The total cash inflow from operating activities was CNY 520,784,811.91, slightly down from CNY 522,870,087.26 in the previous period[84] - The net cash flow from operating activities was -CNY 83,527,852.92, compared to -CNY 27,509,145.79 in the previous period, indicating a worsening cash flow situation[84] - The total cash inflow from investment activities was CNY 58,643,092.89, an increase from CNY 36,988,383.29 in the previous period[84] - The net cash flow from investment activities was -CNY 61,130,167.03, compared to -CNY 56,653,198.09 in the previous period, indicating continued investment outflows[84] - The total cash inflow from financing activities was CNY 165,850,000.00, down from CNY 286,091,323.79 in the previous period[85] - The net cash flow from financing activities was -CNY 57,969,305.82, compared to a positive CNY 6,777,355.61 in the previous period, reflecting increased debt repayments[85] Research and Development - R&D expenses increased by 53.98%, indicating a heightened focus on research and development efforts[28] - Research and development expenses for Q1 2021 amounted to CNY 32,118,601.89, which is a 54.1% increase from CNY 20,858,401.93 in Q1 2020[76] - The company's magnetic optical storage technology project has achieved a 50% increase in storage density, a 60% reduction in energy consumption, and an 80% decrease in data risk compared to similar products[53] - The embedded AI image analysis system project has improved computing efficiency by over 54%, reduced energy consumption by at least 33%, and decreased space occupancy by at least 50% compared to competing products[54] - The company has obtained several patents and software copyrights for its projects, with additional intellectual property applications in progress[54] Strategic Initiatives - The company is committed to advancing its core technologies in smart solutions, AI, IoT, and big data, aiming to solidify its position as a leading provider in the industry[35] - The company has officially launched a non-public stock issuance, raising a total of approximately ¥331 million (¥330,999,954.66) by issuing 48,604,986 shares[37] - The company plans to use repurchased shares for an employee stock ownership plan to enhance employee engagement and company competitiveness[42] - The total amount for the share repurchase program was set between ¥150 million and ¥300 million, with a maximum repurchase price of ¥9.00 per share[41] - The company has committed to timely information disclosure regarding the progress of the non-public stock issuance as per regulatory requirements[36] Shareholder Commitments - The company has committed to avoiding any business activities that may compete with its existing operations, ensuring compliance with the commitments made by its controlling shareholders[46] - The controlling shareholder has pledged to minimize related party transactions and ensure they are conducted at fair market prices[46] - The company has established a long-term commitment to avoid any direct or indirect competition with its subsidiaries and affiliates[47] - The commitments made by the controlling shareholder are to remain effective and cannot be altered or revoked during their tenure as a major shareholder[47] Market Position and Future Outlook - The company aims to strengthen its market position and expand its operations through strategic initiatives and capital raising efforts[36] - The company has been actively promoting the implementation of the employee stock ownership plan despite its eventual termination[45] - The independent directors and supervisory board have reviewed and approved the adjustments to the employee stock ownership plan[45] - The company has engaged in discussions about its future growth drivers and competitive advantages in the smart city sector during investor communications[61]

Financial Performance - Net profit attributable to shareholders increased by 109.18% to CNY 108,725,188.15 for the current period[9] - The company reported a net profit of CNY 265,726,828.03 for the year-to-date, an increase of 60.02% compared to the same period last year[9] - Total profit increased by 58.93% year-on-year, mainly driven by the growth in operating profit[21] - Net profit grew by 73.80% compared to the same period last year, attributed to the increase in total profit[22] - The total comprehensive income attributable to the parent company is CNY 108,725,188.15, compared to CNY 51,977,454.39 in the previous period, showing a growth of 108.5%[69] - The total comprehensive income for the period reached CNY 246,804,543.98, compared to CNY 142,007,242.35 in the previous period, reflecting a significant increase[75] Revenue and Earnings - Operating revenue decreased by 9.12% to CNY 743,475,500.26 for the current period[9] - The company's operating revenue for the current period was CNY 563,471,940.00, up from CNY 503,625,435.86, indicating a growth of approximately 11.8%[76] - The company provided a positive outlook for the next quarter, projecting a revenue increase of 20% based on current market trends[50] - New product launches are expected to contribute an additional 10% to revenue in the upcoming quarter[49] Cash Flow and Liquidity - Net cash flow from operating activities decreased by 246.15% to -CNY 64,738,870.50 for the current period[9] - The net cash flow from operating activities improved significantly to ¥30,055,214.83, a turnaround from a negative cash flow of ¥415,071,547.52 in the previous period[18] - Cash flow from operating activities increased by 107.24% year-on-year, due to the unfreezing of funds previously frozen due to litigation and an increase in sales collections[22] - The net cash flow from operating activities was CNY 30,055,214.83, a recovery from a negative cash flow of CNY -415,071,547.52 in the previous period[82] Assets and Liabilities - Total assets increased by 4.94% to CNY 7,477,613,789.70 compared to the end of the previous year[9] - Total liabilities increased to CNY 2,871,473,015.97 from CNY 2,536,416,498.89, marking an increase of approximately 13.23%[58] - The company reported a significant increase in long-term receivables, rising to CNY 225,303,455.82 from CNY 143,304,478.50, a growth of approximately 57.31%[57] - The total equity attributable to shareholders reached CNY 4,372,748,627.53, reflecting a decrease of CNY 154,783,977.53 compared to the previous period[92] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 51,662[13] - The largest shareholder, Qu Honggui, holds 16.54% of the shares, with 114,394,324 shares pledged[13] - The company plans to use repurchased shares for an employee stock ownership plan to enhance employee engagement and company competitiveness[30] Research and Development - R&D expenses increased by 32.34% compared to the same period last year, reflecting the company's increased investment in research and development[21] - The company is investing heavily in R&D, with a budget increase of 30% compared to the previous year, focusing on smart city solutions[50] - Research and development expenses increased to CNY 39,188,192.12 from CNY 20,165,276.35 year-on-year, indicating a focus on innovation[64] Strategic Initiatives - The company is actively planning and implementing a non-public stock issuance, having received approval to issue up to 207,451,774 new shares[25] - The company aims to strengthen its market position and expand through strategic stock issuance and employee engagement initiatives[30] - The company is focusing on expanding its smart city business and enhancing its R&D capabilities in response to market demands[54] Market Performance - The company reported a significant increase in revenue, achieving a growth rate of 25% year-over-year in the third quarter of 2020[49] - User data showed an increase in active users by 15%, reaching a total of 1.5 million users[50] - Market expansion plans include entering two new provinces, which are projected to increase market share by 5%[49] Operational Challenges - The company reported a significant increase in sales expenses, which rose to CNY 19,759,229.72 from CNY 17,964,650.95, an increase of 10%[68] - The company's operating profit for the current period is CNY -25,609,422.37, a decline from CNY 52,322,622.26 in the previous period, indicating operational challenges[69] - The impact of the COVID-19 pandemic on operations was minimal, with only a 5% decline in overall performance attributed to temporary disruptions[50]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥1,211,439,417.12, a decrease of 2.10% compared to ¥1,237,429,229.15 in the same period last year[18]. - The net profit attributable to shareholders was ¥157,001,639.88, representing a significant increase of 37.62% from ¥114,079,467.92 year-on-year[18]. - The net cash flow from operating activities improved to ¥94,794,085.33, a turnaround from a negative cash flow of ¥459,367,003.27 in the previous year, marking a 120.64% increase[18]. - Basic earnings per share rose to ¥0.2348, up 37.63% from ¥0.1706 in the same period last year[18]. - Operating profit reached 168.42 million RMB, an increase of 33.19% year-on-year[63]. - Total profit amounted to 168.21 million RMB, reflecting a growth of 32.26% compared to the previous year[63]. - The company's total revenue for the reporting period was RMB 1,211,439,417.12, representing a decrease of 2.10% compared to RMB 1,237,429,229.15 in the previous year[78]. - The operating costs decreased by 12.71% to RMB 762,981,584.84 from RMB 874,113,355.64 in the previous year[78]. - Research and development expenses increased by 8.39% to RMB 56,565,434.76, up from RMB 52,186,460.22 in the previous year[78]. Assets and Liabilities - Total assets increased by 3.28% to ¥7,359,040,819.49 from ¥7,125,538,782.58 at the end of the previous year[19]. - The company's total liabilities rose to CNY 2,860,207,329.84 from CNY 2,536,416,498.89, marking an increase of about 12.8%[198]. - The total equity attributable to shareholders decreased to CNY 4,298,698,860.88 from CNY 4,372,748,627.53, a decline of approximately 1.7%[198]. - The cash and cash equivalents increased by 126.71% to RMB 114,215,024.57, compared to a negative RMB 427,680,413.79 in the previous year[78]. - The company's cash and cash equivalents decreased to CNY 629,364,827.95 from CNY 734,151,196.22, representing a decline of about 14.3%[196]. - Accounts receivable increased to CNY 1,488,595,748.64 from CNY 1,295,182,421.34, reflecting a growth of approximately 14.9%[196]. Business Strategy and Market Position - The company plans to enhance project management and cost control to mitigate implementation risks associated with complex projects in the smart city sector[6]. - The company will focus on upgrading products and solutions using new generation information technologies to respond to market competition and policy risks[5]. - The company is positioned to benefit from the "new infrastructure" initiatives, focusing on 5G, AI, and IoT, which are expected to drive new demand and business models[26]. - The company has established itself as a leading provider of comprehensive smart solutions, focusing on key technologies such as AI, IoT, and big data, with a strategy to enhance its market position[27]. - The main business strategy includes a focus on "Smart China" initiatives, supported by 4G/5G communication services and next-generation optical networks[28]. - The company has formed strategic partnerships with China Unicom to enhance its smart solutions and accelerate market development[30]. - The company aims to support national strategies for digital economy development and network information security through its innovative solutions[40]. Research and Development - The company emphasizes continuous investment in R&D, focusing on cutting-edge technologies to maintain a competitive edge in the smart technology sector[32]. - The company has accumulated project orders exceeding 30 billion yuan, showcasing its strong market presence and trust from high-end clients in various sectors[38]. - The company’s self-developed video management platform V1.0 has achieved compatibility certification with Huawei's TaiShan 100, enhancing its competitiveness in smart city and public safety applications[39]. - The company has successfully launched four products that were included in the 2020 China Brand Day promotion directory, reflecting its strong R&D capabilities and brand competitiveness[39]. - The company has established a national-level enterprise technology center and a national postdoctoral research workstation, enhancing its R&D capabilities[52]. Corporate Governance and Compliance - The company has committed to ensuring that executive compensation is linked to the execution of profit compensation measures[118]. - The company has pledged to avoid any direct or indirect competition with its subsidiaries, ensuring that no activities will conflict with the existing business operations[117]. - The company has committed to not engaging in any related party transactions that deviate from normal commercial terms, thereby safeguarding the company's financial integrity[116]. - The company has established a policy to limit the transfer of shares by directors to no more than 25% of their total holdings annually during their tenure[117]. - The company has committed to implementing measures to compensate for any dilution of immediate returns resulting from non-public offerings or refinancing activities[117]. Legal and Regulatory Matters - The company has been involved in a legal dispute with Dianji Network Technology (Shanghai) Co., Ltd., with a claim amounting to 57,416.8 thousand yuan, which has been resolved through mutual agreement[122]. - The court has approved the withdrawal of the lawsuit by Dianji Network, allowing the company to acquire 32% of Dianji Network's equity for 4,050 thousand yuan[123]. - The company expects the acquisition of Dianji Network to positively impact its profit levels and improve cash flow efficiency[123]. - The semi-annual financial report has not been audited[120]. Market and Industry Recognition - The company has been recognized as a national high-tech enterprise and has received multiple awards, including the "Luban Award" and "Great Wall Cup," highlighting its industry leadership and project quality[38]. - The company was recognized as one of the "Top 100 Enterprises in Software and Information Technology Services" by the Ministry of Industry and Information Technology[73]. - The company was awarded the title of "Beijing Integrity Creation Enterprise," reflecting its strong credit management and corporate social responsibility[165]. - The company’s chairman received the "Leader in Smart City Development" award, recognizing his contributions to the industry[157]. Future Outlook - The estimated cumulative net profit for the period from the beginning of the year to the next reporting period is projected to be ¥24,908.54 million, representing a year-on-year increase of over 50%[105]. - Basic earnings per share are expected to be ¥0.3725, reflecting a growth of 50.02% compared to the previous year[105]. - The growth in net profit is primarily attributed to the increase in the smart city business and profits from the mixed reform of the Unicom business[105]. - The company plans to distribute cash dividends amounting to no less than 30% of the average annual distributable profits achieved during the three years from 2018 to 2020[119].

Financial Performance - The company's operating revenue for 2019 was ¥2,755,676,412.10, representing a 12.20% increase from ¥2,455,958,521.31 in 2018[22]. - The net profit attributable to shareholders for 2019 was ¥284,714,313.30, a significant increase of 62.91% compared to ¥174,762,669.00 in 2018[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥265,900,300.91, up 65.70% from ¥160,469,065.25 in 2018[22]. - The company's total assets as of the end of 2019 were ¥7,125,538,782.58, reflecting a 14.19% increase from ¥6,240,132,080.69 at the end of 2018[22]. - The basic earnings per share for 2019 was ¥0.4258, which is a 69.98% increase from ¥0.2505 in 2018[22]. - The weighted average return on equity for 2019 was 6.70%, an increase of 2.66% from 4.04% in 2018[22]. - The net cash flow from operating activities for 2019 was -¥345,038,391.02, a decline of 70.22% compared to -¥202,702,848.96 in 2018[22]. - The company achieved total operating revenue of RMB 275,567.64 million in 2019, representing a year-on-year growth of 12.20%[63]. - Operating profit reached RMB 33,560.71 million, an increase of 50.65% compared to the previous year[63]. - The total profit amounted to RMB 33,466.43 million, reflecting a growth of 52.67% year-on-year[63]. - Net profit for the year was RMB 28,832.37 million, up 53.07% from the previous year[63]. - The net profit attributable to shareholders of the listed company was RMB 28,471.43 million, marking a significant increase of 62.91%[63]. Dividend Distribution - The company reported a profit distribution plan, proposing a cash dividend of 0.5 RMB per 10 shares based on a total of 668,723,620 shares[9]. - The cash dividend proposal for 2019 is to distribute 0.50 yuan per 10 shares, totaling 33,436,181.00 yuan, without issuing bonus shares or capitalizing reserves[157]. - The cash dividend amount for 2019 was CNY 33,436,181, representing 11.74% of the net profit attributable to ordinary shareholders[159]. - The total cash dividend for 2018 was CNY 35,442,351.86, which accounted for 20.28% of the net profit attributable to ordinary shareholders[159]. - The cash dividend distribution plan for 2019 involved a payout of CNY 0.50 per share, totaling CNY 33,436,181 based on a share base of 668,723,620 shares[160]. - The total distributable profit for the year was CNY 954,996,454.96, with the cash dividend representing 100% of the profit distribution total[160]. - The company has established a shareholder return plan for 2018-2020, emphasizing sustainable development while ensuring reasonable returns for investors[153]. Market and Competitive Position - The company emphasizes the importance of adapting to national policies and market competition, particularly in the fields of artificial intelligence, IoT, and big data[6]. - The company is focused on continuous innovation and technology updates to maintain market competitiveness amid evolving business models and application demands[7]. - The company is committed to closely monitoring industry policies and technological advancements to seize market opportunities[6]. - The company aims to enhance its project delivery capabilities through refined cost, progress, risk, and quality management systems[7]. - The company focuses on three core markets: Smart Administrative Regions, Smart National Defense, and Smart Spacetime, forming a comprehensive solution provider and operator in the smart technology sector[30]. - The company is positioned to benefit from the "new infrastructure" initiatives, including 4G/5G communication and next-generation fiber optic network businesses[39]. - The company has been listed among the top 100 potential companies in China by Forbes and has received numerous accolades in the smart city solutions sector[41]. - The company ranks first in annual revenue in the smart city industry and third in both the security system integration and intelligent transportation industries in China[53]. Project Management and Risks - The company acknowledges the high project implementation risks in its smart city initiatives and plans to enhance project management capabilities to mitigate these risks[7]. - The company recognizes the management risks associated with its expanding operational scale and is working to integrate its management systems accordingly[8]. - The complexity of project implementation in the smart China business poses risks, necessitating meticulous management throughout the project lifecycle[147]. - The company faces risks related to policy and market competition, particularly in the smart China and new communication sectors, which are influenced by national policies[146]. Research and Development - Continuous investment in R&D and technology innovation is prioritized, focusing on key technologies such as AI, IoT, and big data[34]. - The company emphasizes talent acquisition and training, collaborating with top universities to build a strong research and innovation team[35]. - The company has established a joint laboratory with the University of Electronic Science and Technology, enhancing its research capabilities in counter-terrorism equipment[43]. - The company reported a total R&D expenditure of ¥134,950,645.63, accounting for 4.90% of total revenue, a decrease of 0.13 percentage points year-on-year[105]. - The number of R&D personnel increased by 13.46% to 371, although their proportion of total employees decreased to 13.06%[105]. Corporate Governance and Compliance - The company has developed a set of regulations based on years of practical experience to support its growth and management model[148]. - The company’s management acknowledges the risks associated with scale expansion, which may impact operational capabilities across various functions[148]. - The company will ensure that all related party transactions adhere to fair market principles and normal commercial terms[164]. - The company will not occupy the funds of the listed company through loans or other means, ensuring compliance with regulations[164]. - The company guarantees that all commitments made in the letter of commitment are independently enforceable and will bear any losses caused to the listed company due to violations[163]. Strategic Partnerships and Collaborations - The company signed a strategic cooperation framework agreement with China Aviation Power and won multiple bids for projects totaling over 300 million RMB, indicating strong market demand and operational capacity[55]. - The company has invested in Yunnan Unicom's mixed reform, enhancing collaboration and accelerating the transformation of both the company and Yunnan Unicom[32]. - The company aims to create a collaborative ecosystem by integrating technology, market, and customer resources to enhance its core competitiveness[136]. Financial Management and Investments - The company has committed to invest a total of 500 million yuan in the public safety and anti-terrorism robot and drone industry project, with 0% of the investment completed as of the reporting date[120]. - The company has decided to temporarily halt large-scale investments in the charging pile project due to the high initial costs and poor profitability in the target market[122]. - The company plans to optimize product structure and improve production processes for the smart remote power guarantee system project instead of making large-scale investments[122]. - The company has adjusted its project funding strategy to ensure efficient use of raised funds and to support its main business operations in smart cities and public safety[129]. Legal and Regulatory Matters - The company is involved in a legal dispute where a subsidiary is required to compensate for losses amounting to approximately RMB 566.28 million, with additional legal fees[80]. - There were no significant lawsuits or arbitration matters affecting the company during the reporting period[182]. - The company did not experience any penalties or rectification issues during the reporting period[184].

Financial Performance - The company's operating revenue for Q1 2020 was ¥494,841,567, a decrease of 7.87% compared to ¥537,115,690 in the same period last year[8]. - Net profit attributable to shareholders was ¥39,295,699, representing a 41.85% increase from ¥27,701,744 in the previous year[8]. - The net profit after deducting non-recurring gains and losses was ¥34,563,577, up 41.49% from ¥24,428,248 in the same period last year[8]. - Basic earnings per share rose to ¥0.0588, a 42.03% increase from ¥0.0414 in the same period last year[8]. - Net profit increased by 60.44% year-on-year, primarily due to the rise in total profit[19]. - The company reported a net profit of CNY 164,507,807.65 for the period, compared to CNY 178,530,706.20 in the previous year, representing a decline of about 7.8%[50]. - The net profit for Q1 2020 was CNY 29,905,111.76, compared to CNY 18,639,836.90 in Q1 2019, indicating an increase of about 60.9%[54]. Cash Flow and Assets - The net cash flow from operating activities improved significantly to -¥27,509,145, an 83.82% increase compared to -¥170,046,771 in the previous year[8]. - Cash flow from operating activities improved by 83.82% year-on-year, mainly due to a significant decrease in procurement payments and an increase in received deposits[19]. - The company's cash and cash equivalents were CNY 645,368,970.62, down from CNY 734,151,196.22 at the end of 2019, representing a decrease of about 12.1%[44]. - The ending balance of cash and cash equivalents was 390,233,448.12 CNY, down from 490,013,589.81 CNY year-over-year[60]. - The net cash flow from operating activities for Q1 2020 was -27,509,145.79 CNY, an improvement from -170,046,771.03 CNY in the same period last year[59]. - Total cash inflow from operating activities was 522,870,087.26 CNY, while cash outflow was 550,379,233.05 CNY, resulting in a net cash flow of -27,509,145.79 CNY[59]. Investments and Expenses - Sales expenses rose by 81.04% year-on-year, attributed to the new Yunnan Unicom business and significant marketing investments in the telecommunications sector[18]. - Investment income increased by 309.41% year-on-year, mainly due to the addition of equity method accounting for Yunnan Unicom's investment income[18]. - The total operating costs for Q1 2020 were CNY 481,632,162.17, a decrease from CNY 532,349,401.29 in the same period last year, representing a reduction of approximately 9.5%[53]. - The company's sales expenses increased to CNY 97,658,868.36 in Q1 2020 from CNY 53,943,048.19 in the same period last year, reflecting an increase of about 80.9%[53]. Shareholder and Equity Information - Total assets at the end of the reporting period were ¥7,056,217,510, a decrease of 0.97% from ¥7,125,538,782 at the end of the previous year[8]. - Net assets attributable to shareholders increased to ¥4,412,044,327, reflecting a 0.90% rise from ¥4,372,748,627 at the end of the previous year[8]. - The total equity attributable to shareholders of the parent company increased to CNY 4,412,044,327.30 from CNY 4,372,748,627.53, reflecting a growth of about 0.9%[47]. - The company plans to distribute cash dividends amounting to no less than 30% of the average distributable profit over the three years from 2018 to 2020, contingent on profitability and cash flow[43]. Strategic Initiatives - The company is planning a non-public offering of shares to strengthen its position as a leading provider of smart technology solutions and services[20]. - The company aims to solidify its brand as the best smart solution provider in the industry, focusing on key technologies such as AI, IoT, and big data[20]. - The company plans to adjust the non-public offering of shares, including changes to the issuance method, pricing benchmark date, and subscription methods[21]. - The company aims to strengthen its market position and expand through strategic financing and employee incentive plans[25]. Legal and Compliance Matters - The company is involved in a lawsuit where it is required to compensate 566,280,263 CNY and bear legal fees of 7,887,802 CNY[22]. - The company has frozen bank deposits of 574,168,065 CNY as part of the ongoing lawsuit[22]. - The company is committed to maintaining transparency and timely disclosure regarding legal matters and financial activities[22]. - The company has committed to strict adherence to its promises regarding related party transactions and competition avoidance[31]. Corporate Governance - The company has outlined measures to ensure that any dilution of immediate returns is addressed in accordance with regulatory requirements[32]. - The company will ensure that any future stock incentive policies are linked to the execution of return compensation measures[32]. - The company has pledged to not engage in any activities that would constitute competition with its existing and future business operations[31]. - The commitments made by the controlling shareholder are valid and enforceable, with any violations resulting in liability for economic losses incurred by the company[30].

Financial Performance - Net profit attributable to shareholders was ¥51,977,454.39, up 54.67% year-on-year[9] - Operating revenue for the period was ¥818,064,621.53, representing a growth of 48.18% compared to the same period last year[9] - The company reported a net profit of ¥166,056,922.31 for the year-to-date, an increase of 41.02% compared to the same period last year[9] - Basic earnings per share increased to ¥0.0777, reflecting a growth of 62.21%[9] - The weighted average return on equity was 1.21%, up from 0.43% at the end of the previous year[9] - The company's net profit attributable to shareholders increased by 41.02% year-on-year, amounting to ¥166,056,922.31, primarily due to the increase in operating revenue[30] - The company reported a significant increase in revenue for Q3 2019, with a year-over-year growth of 25%[30] - The company provided a positive outlook for Q4 2019, projecting a revenue increase of 20% based on current market trends[30] - The net profit for the third quarter reached CNY 38,263,796.12, up from CNY 34,835,847.93, reflecting a growth of 12.5% year-over-year[53] - The company reported a total profit of CNY 178.98 million for Q3 2019, compared to CNY 147.21 million in Q3 2018, marking a growth of 21.6%[62] Assets and Liabilities - Total assets reached ¥6,567,880,876.31, an increase of 5.25% compared to the end of the previous year[9] - The company's total assets as of September 30, 2019, amounted to CNY 5,111,250,113.69, an increase from CNY 4,974,552,677.74 at the end of 2018[49] - The company's current assets totaled CNY 3,509,487,923.41, up from CNY 3,203,237,716.44 at the end of 2018, reflecting a growth of approximately 9.5%[42] - The company's inventory increased significantly to CNY 1,554,646,893.92 from CNY 1,096,880,825.42, marking a rise of around 42%[41] - The company's short-term borrowings rose to CNY 720,000,000.00 from CNY 493,500,000.00, reflecting an increase of approximately 46.0%[42] - Total liabilities amounted to CNY 1,822,695,792.75, with current liabilities at CNY 1,547,272,373.02 and non-current liabilities at CNY 275,423,419.73[75] - The company's total liabilities included short-term borrowings of 493,500,000.00 CNY and accounts payable of 562,452,888.36 CNY[74] Cash Flow - The net cash flow from operating activities was ¥44,295,455.75, a significant increase of 125.13%[9] - The company's cash flow from financing activities increased by 199.73% year-on-year, resulting in a net inflow of ¥196,225,885.78, due to increased bank borrowings[33] - The net cash flow from operating activities was negative at CNY -415.07 million, slightly improved from CNY -433.30 million in the previous year[66] - The company generated CNY 1.20 billion in cash from sales of goods and services, a marginal increase from CNY 1.20 billion in the same period last year[66] - The cash flow from financing activities showed a cash inflow of 565,000,000.00 CNY, down from 1,077,000,000.00 CNY in the previous year[70] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 44,280[13] - The largest shareholder, Qu Honggui, holds 17.23% of the shares, totaling 119,164,324 shares[13] - The company committed to distributing at least 30% of the average distributable profit over the next three years, ensuring returns to shareholders[32] - The company is planning a non-public offering of A-shares to raise funds primarily for its core smart China business, innovation research project commercialization, and to supplement working capital[23] Investments and Expenses - The company's long-term equity investments grew by 78.83% year-on-year, reaching ¥39,079,111.65, as a result of increased investment in Yunnan Unicom New Communication Co., Ltd.[8] - The company's financial expenses surged by 123.10% year-on-year, totaling ¥20,201,498.39, mainly due to a decrease in bank interest income[22] - Research and development investments increased by 30% in Q3 2019, focusing on innovative technologies[31] - The company reported a decrease in research and development expenses to CNY 20,165,276.35 from CNY 27,012,959.53, suggesting a potential shift in focus[51] Strategic Initiatives - The company is focused on three core markets: smart society, smart defense, and smart space, aiming to strengthen its business structure and financial health[23] - The company is exploring potential mergers and acquisitions to enhance its product offerings and market reach[30] - A new strategic partnership was announced, expected to generate an additional $3 million in annual revenue[31] - The employee stock ownership plan was approved, with the repurchased shares to be used to enhance employee cohesion and company competitiveness[26] Legal and Compliance - The company has a legal dispute involving its subsidiary with a claim amounting to RMB 57.42 million, but it does not expect this to materially impact its operations[24] - The company reported no non-operating fund occupation by controlling shareholders during the reporting period[34] - There were no instances of entrusted financial management during the reporting period, indicating a conservative financial management approach[35]

Financial Performance - The company's operating revenue for the first half of 2019 was ¥1,237,429,229.15, representing a 24.27% increase compared to ¥995,744,293.97 in the same period last year[18]. - The net profit attributable to shareholders was ¥114,079,467.92, up 35.56% from ¥84,152,122.95 year-on-year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥108,075,763.49, a significant increase of 59.98% compared to ¥67,555,839.04 in the previous year[18]. - The basic earnings per share rose to ¥0.1706, reflecting a 42.64% increase from ¥0.1196 in the same period last year[18]. - The total assets at the end of the reporting period were ¥6,331,764,029.81, a 1.47% increase from ¥6,240,132,080.69 at the end of the previous year[18]. - The net assets attributable to shareholders increased to ¥4,280,380,606.58, up 1.87% from ¥4,201,743,490.52 at the end of the previous year[18]. - The net cash flow from operating activities was negative at -¥459,367,003.27, worsening by 78.72% compared to -¥257,030,238.57 in the same period last year[18]. - The company reported a non-operating loss from the disposal of non-current assets amounting to -296,344.58[22]. - Government subsidies recognized in the current period totaled 6,816,469.98, contributing positively to the financial results[22]. Market Position and Strategy - The company has established itself as a leading provider of smart technology solutions, focusing on key technologies such as AI, IoT, and big data[26]. - The company has developed a comprehensive service model for smart city projects, including planning, design, and operational services[27]. - The company has secured over 30 billion in project orders through its extensive marketing and service network across the country[31]. - The company is recognized as a national high-tech enterprise and has received multiple awards for its intelligent projects, including the "Luban Award" and "Great Wall Cup"[31]. - The company is actively expanding its market presence in the new generation optical fiber network business, leveraging highway pipeline resources[28]. - The company has a strong focus on R&D, investing in cutting-edge technologies to maintain its competitive edge in the market[30]. - The company has established partnerships with top universities to enhance its talent pool and innovation capabilities[30]. - The company aims to evolve from a solution provider to an operational service provider for Smart Society, indicating its strategic growth direction[41]. - The company ranks 1st in annual revenue in the smart city industry, 3rd in the security system integration industry, and 3rd in the smart transportation industry in China[45]. Project Management and Risk - The company plans to enhance project management and risk management to mitigate implementation risks associated with complex projects in the smart city sector[6]. - The company is aware of the management risks associated with its expanding scale and is working to integrate its management systems to support growth[103]. - The company emphasizes the importance of project management and risk management to mitigate implementation risks associated with complex projects in the smart city sector[102]. Research and Development - The company has a strong focus on R&D, investing in cutting-edge technologies to maintain its competitive edge in the market[30]. - Research and development expenses increased by 63.31% to RMB 52,186,460.22, reflecting the company's commitment to enhancing product development capabilities[67]. - The company has 377 valid patents, including 93 invention patents, 267 utility model patents, and 17 design patents, reflecting its strong R&D capabilities[41]. Shareholder and Capital Management - The company does not plan to distribute cash dividends or issue bonus shares for the reporting period[8]. - The company approved a cash dividend of RMB 0.53 per 10 shares, totaling RMB 35.46 million for the 2018 fiscal year[55]. - The company repurchased 22,782,295 shares, accounting for 3.29% of the total share capital, with a total repurchase amount of RMB 150.03 million[57]. - The company plans to use repurchased shares for an employee stock ownership plan to enhance employee engagement and company competitiveness[59]. - The company will optimize product structure and improve production processes to meet market demands instead of making large-scale investments in certain projects[88]. Financial Management and Cash Flow - The company reported a decrease in financing cash flow net amount by 44.98%, totaling RMB 115,044,780.78, primarily due to reduced net inflow from bank loans[67]. - The company reported a net cash flow from operating activities of -RMB 459,367,003.27, a decrease of 78.72% compared to -RMB 257,030,238.57 in the previous year[67]. - The ending balance of cash and cash equivalents decreased to 329,080,907.71 yuan from 1,113,211,567.92 yuan year-over-year, indicating liquidity challenges[199]. - The company paid 142,270,490.52 yuan to employees, an increase from 109,016,172.19 yuan in the previous year, reflecting higher labor costs[198]. Corporate Governance and Compliance - The company has committed to avoiding any business that competes with its core operations, ensuring compliance with its commitments[108]. - The company confirmed that it will not engage in any business activities that compete with its existing or future operations, ensuring no direct or indirect competition with its subsidiaries[109]. - The company has pledged to compensate for any losses incurred by the company due to violations of the commitments made regarding related party transactions[110]. - The company will ensure that any unavoidable related party transactions comply with national laws and regulations, and will disclose such transactions in a timely manner[111]. Awards and Recognition - The company has been recognized as one of the "Top 100 Potential Companies in China" by Forbes and has received multiple industry awards, enhancing its brand reputation[42]. - The company's video cloud storage product was awarded as one of the "Top Ten Innovative Products" in the national legal and intelligent construction sector[148]. - The company's chairman was honored as a "Leader in Smart City Development" at the 9th China Smart City Conference, highlighting the company's contributions to the sector[149].

Financial Performance - The company's operating revenue for the first half of 2019 was approximately ¥1.24 billion, representing a 24.27% increase compared to ¥995.74 million in the same period last year[18]. - The net profit attributable to shareholders was approximately ¥114.08 million, a 35.56% increase from ¥84.15 million in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥108.08 million, showing a significant increase of 59.98% from ¥67.56 million[18]. - The basic earnings per share increased by 42.64% to ¥0.1706 from ¥0.1196 in the same period last year[18]. - The total assets at the end of the reporting period were approximately ¥6.33 billion, a 1.47% increase from ¥6.24 billion at the end of the previous year[18]. - The net assets attributable to shareholders increased by 1.87% to approximately ¥4.28 billion from ¥4.20 billion at the end of the previous year[18]. - The net cash flow from operating activities was negative at approximately -¥459.37 million, worsening by 78.72% compared to -¥257.03 million in the previous year[18]. - The company achieved operating revenue of RMB 1,237.43 million, a year-on-year increase of 24.27%[54]. - The net profit attributable to the parent company was RMB 114.08 million, reflecting a year-on-year growth of 35.56%[54]. - The company's total profit for the first half of 2019 was CNY 127,187,975.41, compared to CNY 106,813,994.01 in the same period of 2018, marking an increase of about 19.0%[184]. Investment and Financial Strategy - The company plans to enhance project management and cost control to mitigate implementation risks associated with complex projects in the smart city sector[5]. - The company does not plan to distribute cash dividends or issue bonus shares for the reporting period[7]. - The company has adopted a cash management strategy to enhance its financial stability and operational efficiency[53]. - A total of 22,782,295 shares were repurchased, accounting for 3.29% of the total share capital, with a total repurchase amount of RMB 150.03 million[57]. - The company plans to use the repurchased shares for an employee stock ownership plan to enhance employee engagement and company competitiveness[59]. - The company plans to distribute cash dividends totaling no less than 30% of the average annual distributable profits achieved over the three years from 2018 to 2020[109]. - The company is planning a non-public stock issuance to optimize its capital structure and improve financial conditions, with funds primarily allocated to core smart city business and innovative research projects[139]. Research and Development - The company maintains a competitive edge through continuous investment in R&D and the development of core technologies[30]. - Research and development expenses surged by 63.31% to RMB 52,186,460.22, indicating the company's commitment to enhancing product development[67]. - The company has committed to maintaining a competitive edge by investing 10% of its annual revenue into R&D initiatives[108]. - The company has achieved a total of 377 valid patents, including 93 invention patents, 267 utility model patents, and 17 design patents[41]. Market Position and Expansion - The company has established itself as a leading provider of smart technology solutions, focusing on key technologies such as AI, IoT, and big data[26]. - The company has secured over 30 billion in project orders through its extensive marketing and service network across the country[31]. - The company ranks 1st in annual revenue in the smart city industry, 3rd in the security system integration industry, and 3rd in the smart transportation industry in China[45]. - The company is actively expanding its market presence in the new communication and fiber optic network sectors[28]. - The company has signed strategic cooperation agreements with major firms, including a framework agreement with China Aviation Power[46]. Operational Challenges and Risks - The company faces significant risks from policy and market competition, particularly in its smart city and new communication business sectors, which are heavily influenced by national and local policies[95]. - The company acknowledges potential management risks due to its expanding operational scale, which may challenge its management capabilities and operational efficiency[97]. - The company emphasizes the need for refined project management to mitigate risks associated with complex project implementations in the smart city domain[96]. Corporate Governance and Shareholder Relations - The company held three shareholder meetings during the reporting period, with investor participation rates of 38.75%, 38.33%, and 42.11% respectively[100]. - The company is committed to avoiding any direct or indirect competition with its own business during the control period of its major shareholder[103]. - The company has established a set of regulations to adapt to its development level and management model, which has shown some effectiveness in practice[97]. - The company has not experienced any major litigation or arbitration matters during the reporting period[111]. Future Outlook - The company has set a future outlook with a revenue target of 2.5 billion CNY for the full year 2019, which would require a 10% growth in the second half[107]. - New product development includes the launch of two innovative technologies aimed at enhancing operational efficiency, expected to contribute an additional 200 million CNY in revenue by year-end[108]. - Market expansion plans include entering three new provinces by the end of 2019, projected to increase market share by 5%[106].

Financial Performance - The company's revenue for Q1 2019 was ¥537,115,690.01, representing a 20.00% increase compared to ¥447,586,908.78 in the same period last year[9] - Net profit attributable to shareholders decreased by 30.01% to ¥27,701,744.31 from ¥39,578,848.31 year-on-year[9] - The net profit after deducting non-recurring gains and losses was ¥24,428,248.18, down 32.69% from ¥36,289,569.49 in the previous year[9] - Basic earnings per share decreased by 26.33% to ¥0.0414 from ¥0.0562 year-on-year[9] - Operating profit fell by 60.65% to ¥18,248,710.92, attributed to rising sales and R&D expenses[19] - Net profit decreased by 52.48% to ¥18,639,836.90, primarily due to a decline in total profit[19] - The company's gross profit margin decreased to approximately 2.5% in Q1 2019 from 9.5% in Q1 2018[49] - The company reported an operating profit of ¥18,248,710.92, down 61% from ¥46,379,207.38 in the same quarter last year[49] - The total profit for Q1 2019 was ¥18,273,830.89, a decline of 60% compared to ¥46,462,632.15 in Q1 2018[49] Cash Flow - The net cash flow from operating activities was -¥170,046,771.03, a decline of 6.65% compared to -¥159,447,088.29 in the same period last year[9] - Cash flow from operating activities declined by 6.65% to -¥170,046,771.03, indicating a slight decrease compared to the previous period[21] - Cash flow from investing activities improved by 64.12% to -¥89,254,712.45, due to reduced cash outflows for financial product investments[21] - The net cash flow from investing activities was -¥89,254,712.45, an improvement from -¥248,766,751.65 in the previous period, reflecting a reduction of about 64%[58] - The cash inflow from financing activities was ¥302,033,900.00, down from ¥938,300,000.00, a decline of approximately 68%[59] - The net cash flow from financing activities dropped by 102.09% to -¥7,446,248.21, mainly due to a decrease in net inflow from bank loans[21] Assets and Liabilities - Total assets at the end of the reporting period were ¥6,097,164,245.80, down 2.29% from ¥6,240,132,080.69 at the end of the previous year[9] - Current liabilities decreased from ¥1,547,272,373.02 to ¥1,415,860,983.31, a reduction of approximately 8.49%[41] - The company's total liabilities decreased from ¥1,822,695,792.75 to ¥1,669,554,220.96, a decline of about 8.41%[41] - Owner's equity increased from ¥4,417,436,287.94 to ¥4,427,610,024.84, reflecting a growth of approximately 0.23%[42] - Total current assets amounted to ¥3,085.16 million, down from ¥3,203.24 million, indicating a decrease of around 3.7%[39] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 47,442[13] - The largest shareholder, Qu Honggui, holds 18.42% of the shares, with a total of 127,394,324 shares, of which 95,545,743 shares are pledged[13] Expenses - Sales expenses surged by 99.97% to ¥53,943,048.19, largely due to increased costs associated with the Yunnan Unicom mobile business cooperation project[19] - R&D expenses grew by 60.65% to ¥28,736,717.86, reflecting the company's increased investment in product development[19] - Total operating costs for Q1 2019 were ¥522,532,763.65, up 29% from ¥404,841,195.53 in Q1 2018[47] Commitments and Compliance - The company has committed to avoiding any business activities that compete with its own operations, ensuring no direct or indirect competition during the control period[26] - The company has pledged to minimize and regulate related party transactions, ensuring fairness and market-based pricing in any unavoidable transactions[27] - The company confirmed that it will not engage in any activities that may compete with the business of the listed company and its subsidiaries[28] - The company will notify the listed company of any business opportunities that may conflict with its operations, allowing the listed company the first right of refusal[28] - The company has committed to strictly adhering to the principles of fairness in any related party transactions, ensuring no losses to the listed company[29] - The company will ensure that any related party transactions comply with national laws and the company's articles of association[29] - The company has made a long-term commitment to avoid any actions that could harm the interests of the listed company[27] - The company will not use the listed company's funds for any debts or guarantees related to its own or its affiliates' obligations[29] - The company has confirmed that all commitments made are independently enforceable, and any violation will result in liability for economic losses[28] - The company will ensure that its subsidiaries do not engage in any competitive activities with the listed company, maintaining operational independence[27] Other Financial Metrics - The company reported non-recurring gains of ¥3,273,496.13, primarily from government subsidies and asset disposal gains[10] - The company reported a decrease in employee compensation payable from ¥31,231,052.76 to ¥7,591,693.74, a significant drop of approximately 75.69%[41] - The company plans to distribute at least 30% of the average annual distributable profits over the three years from 2018 to 2020, contingent on profitability and cash flow[32] - The company has committed to not exceeding 25% of their total shareholding in annual transfers during the tenure of their directors and executives[31] - There were no violations regarding external guarantees during the reporting period[34] - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[34] - The company conducted an on-site investigation on January 10, 2019, to discuss its development and future plans with institutional investors[35] - The company has made commitments to avoid competition and reduce related party transactions[31]