Financial Performance - The company's operating revenue for the first half of 2021 was ¥284,341,336.06, representing a 31.35% increase compared to ¥216,476,579.42 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was ¥8,883,870.62, a significant decrease of 96.82% from ¥279,716,934.89 in the previous year[20]. - The basic earnings per share decreased to ¥0.01, down 96.77% from ¥0.31 in the same period last year[20]. - The weighted average return on net assets was 0.38%, a decrease of 11.04% compared to 11.42% in the previous year[20]. - The company reported a significant improvement in the net profit after deducting non-recurring gains and losses, which was -¥1,979,467.70, a 90.57% improvement from -¥20,993,452.98 in the previous year[20]. - The company reported a total comprehensive income of CNY 8,445,628.36 for the first half of 2021, down from CNY 275,354,885.66 in the previous year[132]. - The total comprehensive income for the period was -24,681,390.42 CNY, compared to 202,708,939.61 CNY in the previous period[138]. Cash Flow and Investments - The net cash flow from operating activities improved to -¥22,871,620.51, a 90.96% increase compared to -¥252,868,573.71 in the same period last year[20]. - Investment activities generated a net cash flow of -¥459,994,423.99, a decrease of 138.66% compared to the previous year's net cash inflow of ¥1,189,917,424.50[41]. - The net cash flow from investing activities was -459,994,423.99 CNY, a significant decrease from 1,189,917,424.50 CNY in the previous year[138]. - Cash outflow from investing activities totaled 1,024,050,768.95 CNY, compared to 951,826,890.98 CNY in the previous period[138]. - The company received 294,553,412.40 CNY from sales of goods and services, an increase from 248,104,547.75 CNY in the previous year[136]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,728,637,409.96, reflecting a 4.08% increase from ¥2,621,686,710.81 at the end of the previous year[20]. - The company's total liabilities increased to CNY 284,948,726.18 from CNY 130,653,301.25, marking a rise of 118.5%[131]. - Total liabilities decreased to CNY 399,264,984.05 from CNY 280,032,286.21, an increase of approximately 42.6%[124]. - Long-term liabilities increased significantly to CNY 218,904,360.07 from CNY 14,931,182.82, reflecting a growth of approximately 1,365.5%[124]. - The company's equity attributable to shareholders increased slightly to CNY 2,328,983,040.17 from CNY 2,320,159,289.60, a growth of about 0.4%[124]. Business Operations and Strategy - The company maintains a leading position in the DLP, COB-LED, and ultra-high-definition visualization application markets, with strong demand for control products and significant growth potential in the visualization application sector[30]. - The company launched AM (Active-matrix) products in the display segment, enhancing market competitiveness, and introduced distributed control products with improved application functionalities[30]. - The children's growth platform business continues to develop steadily, focusing on integrated solutions for kindergartens, including site selection, management, and quality evaluation services[31]. - The company is exploring new business directions in early childhood education, including childcare and early education institutions, in response to the "three-child" policy[37]. - The company aims to create a vibrant early childhood education ecosystem by optimizing organizational structure and resource allocation in response to new challenges and opportunities[38]. Research and Development - The company has filed 4 new invention patents and received 25 authorized invention patents and 2 design patents during the reporting period, enhancing its intellectual property portfolio[33]. - The company’s R&D expenditure was ¥35,604,668.11, a decrease of 7.53% from ¥38,503,316.52, indicating stable investment in innovation[41]. Shareholder and Equity Information - The total number of shares is 906,214,651, with 99.98% being unrestricted shares[103]. - The largest shareholder, Taizhou Zhongshu Weike Equity Investment Partnership, holds 24.22% of shares, totaling 219,502,109 shares[109]. - The company has not conducted any repurchase transactions among the top 10 common shareholders during the reporting period[110]. - The total number of common shareholders at the end of the reporting period is 41,957[108]. Legal and Compliance - The company is involved in arbitration related to the transfer of equity in Beijing Ke'er Education Technology Co., Ltd., with a claim amount of 20 million yuan, which has been revoked and does not impact operations[82]. - The company is also involved in a lawsuit concerning equity disputes with Wang Hongbing, with a claim amount of approximately 5.49 million yuan, which is currently pending[82]. - The company has not reported any new equity instruments or capital reductions during the current period[161]. Environmental and Social Responsibility - The company does not belong to the key pollutant discharge units and has not faced any administrative penalties for environmental issues during the reporting period[73]. - The company and its controlling shareholders have maintained a good integrity status during the reporting period[84].

Financial Performance - The company's operating revenue for Q1 2021 was ¥107,061,887.79, representing a 61.94% increase compared to ¥66,110,785.35 in the same period last year[7] - The net profit attributable to shareholders was a loss of ¥8,138,765.45, a decrease of 174.25% from a profit of ¥10,960,601.19 in the previous year[7] - The basic earnings per share for the period was -¥0.01, a decline of 200.00% from ¥0.01 in the same period last year[7] - Operating revenue increased by 61.94% to ¥107,061,887.79, recovering from the impact of the pandemic[15] - Net profit attributable to shareholders decreased by 174.25% to -¥8,138,765.45, as the order volume for high-resolution digital splicing wall systems has not yet met expectations post-pandemic[15] - The estimated net profit attributable to shareholders for the first half of 2021 is projected to be between 500,000 and 750,000 CNY, representing a decrease of approximately 98.21% compared to the same period last year[23] - Basic earnings per share for the same period are expected to decline to 0.006 CNY, down from 0.008 CNY, indicating a decrease of about 98.06% year-over-year[23] - The significant decline in net profit is primarily due to non-recurring gains from the sale of property rights amounting to 33,970,000 CNY in the first half of 2020[23] - The total comprehensive income for the quarter was a loss of CNY 4,021,941.41, compared to a gain of CNY 8,277,448.21 last year[43] - The total comprehensive income for the first quarter was -27,751,281.29 CNY, slightly worse than -27,676,229.83 CNY in the previous year[47] Cash Flow and Investments - The net cash flow from operating activities improved to -¥20,510,044.13, an 88.87% increase compared to -¥184,268,770.67 in the same period last year[7] - The company's cash and cash equivalents decreased by 54.99% to ¥632,408,295.25 due to funds being used for financial investments[15] - The cash flow from operating activities improved by 88.87% to -¥20,510,044.13, driven by increased cash receipts from sales and services[16] - The company reported cash outflows from investment activities of 847,151,521.00 CNY, significantly higher than 530,353,497.37 CNY in the prior year[50] - The net cash flow from investment activities was -677,796,599.85 CNY, compared to 212,620,118.12 CNY in the previous year, indicating a significant decrease[54] - The total cash inflow from investment activities was 80,208,329.15 CNY, while the cash outflow was 758,004,929.00 CNY, resulting in a net cash outflow[54] - The cash inflow from the disposal of fixed assets and other was 321,026,150.08 CNY, while the cash outflow for the acquisition of fixed assets was 1,134,998.00 CNY[54] - The company received cash from the recovery of investments amounting to 63,500,000.00 CNY, down from 426,001,007.68 CNY in the previous year[50] Assets and Liabilities - The total assets at the end of the reporting period were ¥2,721,379,692.33, a 3.80% increase from ¥2,621,686,710.81 at the end of the previous year[7] - The total current assets amount to 1,800,932,816.79 CNY, a decrease from 1,979,648,179.82 CNY at the end of 2020[32] - The total liabilities as of March 31, 2021, are 401,506,567.71 CNY, compared to 280,032,286.21 CNY at the end of 2020, indicating an increase in liabilities[34] - The total assets as of March 31, 2021, are 2,721,379,692.33 CNY, up from 2,621,686,710.81 CNY at the end of 2020[35] - The owner's equity decreased to CNY 2,454,306,090.19 from CNY 2,485,436,854.25[38] Shareholder Information - The company reported a total of 43,347 common shareholders at the end of the reporting period[11] - The largest shareholder, Taizhou Zhongshu Weike Equity Investment Partnership, holds 24.22% of the shares, totaling 219,502,109 shares[11] - The company did not engage in any repurchase transactions among the top 10 shareholders during the reporting period[12] Government Support and Projects - The company received government subsidies amounting to ¥728,381.31 during the reporting period[8] - The company has invested ¥10,527,330.40 in the "Children's Arts and Sports Training Center Construction Project" from the raised funds[22] - The remaining balance of raised funds as of March 31, 2021, was ¥601,578,323.88[22] Research and Development - Research and development expenses were CNY 16,811,158.85, down from CNY 19,283,744.60[41] Miscellaneous - The company did not require adjustments to the beginning balance sheet items under the new leasing standards implemented on January 1, 2021[56] - The first quarter report was not audited, indicating that the figures presented are preliminary[57] - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[27] - There were no significant contracts or external guarantees reported during the period[24]

Business Focus and Strategy - The company reported a significant focus on the development and marketing of ultra-high-resolution digital splicing wall systems, which remains its core business alongside children's growth education services[16] - The company has strategically entered the children's growth education service sector since 2015, expanding its business model to include kindergarten services and related products[16] - The company operates two main businesses: ultra-high-resolution digital splicing wall systems and children's growth platform services[28] - The ultra-high-resolution digital splicing wall systems business faced a slowdown in growth due to the COVID-19 pandemic but maintained a leading position in the DLP and COB LED markets[29] - The children's growth platform business includes kindergarten services, product sales, and multi-dimensional growth scenarios, with significant development in community schools and early education services[30] Financial Performance - The company's operating revenue for 2020 was ¥640,838,989.91, a decrease of 41.83% compared to ¥1,101,742,157.35 in 2019[18] - The net profit attributable to shareholders in 2020 was ¥35,795,956.29, representing a 102.91% increase from a loss of ¥1,230,836,562.90 in 2019[18] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥268,731,632.90 in 2020, an improvement of 78.34% from -¥1,240,662,115.40 in 2019[18] - The net cash flow from operating activities was -¥123,986,938.60 in 2020, a decline of 167.83% compared to ¥182,795,246.68 in 2019[18] - The basic earnings per share for 2020 was ¥0.04, compared to -¥1.37 in 2019, marking a 102.92% improvement[18] - The total assets at the end of 2020 were ¥2,621,686,710.81, down 8.56% from ¥2,866,992,973.81 at the end of 2019[18] - The net assets attributable to shareholders at the end of 2020 were ¥2,320,159,289.60, a slight increase of 0.49% from ¥2,308,751,260.25 at the end of 2019[18] Research and Development - The company filed for 60 new invention patents and received authorization for 98 invention patents during the reporting period[33] - The company launched the ICVP Smart Integration Platform V1.0, enhancing user experience with zero-code tools[34] - The new generation EaseCon series processors were introduced, emphasizing system openness and reliability[35] - The company is focusing on product research and development to extend its product chain and improve the overall strength of the children's growth platform[53] Market Challenges and Risks - The company faces risks in the children's growth platform business due to lower-than-expected service and product procurement demands from partner kindergartens, prompting adjustments and targeted solutions[100] - The company acknowledges the risk of talent shortages in the education sector and plans to enhance employee assessment, training, and incentive mechanisms to attract and retain high-level talent[101] - The company has recognized the impact of uncontrollable factors such as political and economic events on its business and is enhancing its online education offerings to mitigate risks[101] Shareholder and Governance Structure - The company has a comprehensive governance structure, with all board members present for the report's approval, ensuring accountability and transparency[4] - The controlling shareholder has promised to maintain the independence of the listed company, including personnel, assets, and financial operations[111] - The company is currently fulfilling its commitment to not transfer shares acquired through equity changes for 18 months post-completion[110] - The company has established a commitment to ensure that related party transaction prices are determined based on market principles[111] Investment and Financing - The company raised a total of approximately ¥905.91 million through a private placement, with a remaining balance of approximately ¥599.79 million as of December 31, 2020[80] - The company has repaid bank loans and financing lease borrowings amounting to RMB 170 million and supplemented working capital with RMB 188 million as of December 31, 2020[83] - The company has shifted part of the raised funds to repay bank loans and finance lease borrowings, as well as to supplement working capital[83] Employee and Management Structure - The total number of employees in the company is 1,040, with 654 in the parent company and 386 in major subsidiaries[191] - The company has 323 sales personnel and 284 technical personnel, indicating a strong focus on sales and technology[191] - The company emphasizes employee training through various programs, including new employee orientation and management training[193][194] Social Responsibility and Compliance - The company emphasizes its commitment to social responsibility, focusing on sustainable development and stakeholder engagement[150] - The company is not classified as a key pollutant discharge unit by environmental protection authorities[152] - The company has established independent production and operational facilities necessary for its main business, along with proprietary intellectual property[199] Future Outlook - The company’s future outlook includes continued investment in research and development for new products and technologies to enhance market competitiveness[16] - The company anticipates a recovery in the domestic large-screen display market driven by effective pandemic control and rapid industrial internet growth[93] - The company plans to enhance its COB LED product line and initiate AM-COB product development to maintain market leadership in the segment[94]

Financial Performance - Operating revenue for the reporting period was ¥219,435,150.26, a decrease of 25.90% year-on-year, and a decline of 45.25% for the year-to-date[7] - Net profit attributable to shareholders was a loss of ¥13,049,441.22, representing a decrease of 135.21% compared to the same period last year[7] - Basic earnings per share were -¥0.01, down 125.00% year-on-year, while diluted earnings per share were also -¥0.01[7] - Operating revenue for the first nine months of 2020 decreased by 45.25% to ¥435,911,729.68, mainly impacted by the COVID-19 pandemic[17] - The net profit for the third quarter was a loss of CNY 12,767,100.50, compared to a profit of CNY 38,549,024.76 in the previous year[46] - The company's total assets decreased to CNY 2,861,945,685.00 from CNY 2,904,164,020.92 at the end of the previous year[42] - The net profit for Q3 2020 was -¥25,189,964.46, a sharp drop from a net profit of ¥12,413,306.91 in the previous year[48] - The net profit attributable to the parent company for the year-to-date period was ¥266,667,493.67, significantly higher than ¥90,301,283.53 in the previous year[54] - The total comprehensive income for the year-to-date period was ¥262,450,542.83, compared to ¥98,555,912.56 in the previous year, reflecting overall growth[54] Assets and Liabilities - Total assets at the end of the reporting period reached ¥2,886,406,121.91, an increase of 0.68% compared to the end of the previous year[7] - Total liabilities decreased to 294,516,884.68 CNY from 532,940,244.61 CNY at the end of 2019[37] - The company's total assets decreased to CNY 2,861,945,685.00 from CNY 2,904,164,020.92 at the end of the previous year[42] - Current assets totaled CNY 1,944,262,503.61, slightly up from CNY 1,937,304,772.13 year-on-year[39] - The total liabilities decreased to CNY 122,976,445.48 from CNY 342,713,756.55 in the previous year[42] Cash Flow - The net cash flow from operating activities was ¥48,372,935.15, an increase of 1.28% compared to the previous year[7] - The net cash flow from operating activities turned negative at -¥138,181,729.19, a decline of 459.42% compared to the same period in 2019, due to reduced sales collections[19] - The net cash flow from investing activities increased by 436.86% to ¥1,082,835,953.88, primarily due to the redemption of financial products[19] - Cash and cash equivalents at the end of the period totaled approximately ¥1.30 billion, compared to ¥613.18 million at the end of the same period last year, reflecting a substantial increase of 111.2%[60] - The net cash flow from investment activities was approximately ¥1.08 billion, a turnaround from a net outflow of ¥321.45 million in the previous year[60] - The company's cash outflow for operating activities was approximately ¥744.09 million, down from ¥904.43 million in the previous year, showing a reduction of 17.7%[58] Shareholder Information - The company had 41,703 total shareholders at the end of the reporting period[11] - The top shareholder, Taizhou Zhongshu Weike Equity Investment Partnership, held 24.22% of the shares, amounting to 219,502,109 shares[11] - The company completed a share transfer on July 31, 2020, transferring 24.22% of its shares to a new controlling shareholder, which may impact future governance[20] Non-Recurring Items - Non-recurring gains and losses totaled ¥309,673,076.99, primarily due to the disposal of non-current assets[8] - The company reported a non-recurring gain of 33,970,000 CNY from the sale of property assets in the first half of 2020[26] Research and Development - Research and development expenses rose to CNY 28,749,176.07, compared to CNY 20,940,852.47 in the same period last year, indicating a focus on innovation[45] - Research and development expenses increased to ¥23,290,805.85 in Q3 2020, up from ¥15,732,687.60 in Q3 2019, reflecting a focus on innovation[48] Impairment and Provisions - The company reported a 132.31% increase in credit impairment losses, totaling -¥12,138,399.16, due to increased provisions for bad debts[17] - The company experienced a credit impairment loss of -¥12,138,399.16 in the year-to-date period, compared to -¥5,225,110.79 in the previous year, highlighting potential risks[53] - The company plans to conduct impairment tests on assets showing signs of impairment due to the pandemic's impact, which may lead to significant differences in final data[26] Other Financial Indicators - The company's financial expenses decreased by 105.43% to -¥439,491.95, attributed to reduced loan interest expenses[17] - The company reported a significant increase in non-operating expenses, rising by 2430.78% to ¥3,026,143.69, due to various non-operational expenditures[17] - The estimated cumulative net profit for the year is projected to be between 16,800,000 and 25,200,000 CNY, representing a significant increase of 113.65% to 120.47% compared to the previous year[26] - Basic earnings per share are expected to rise to 0.19 CNY, reflecting an increase of 113.87% to 120.44% year-over-year[26]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥216,476,579.42, a decrease of 56.70% compared to the same period last year[16]. - The net profit attributable to shareholders of the listed company reached ¥279,716,934.89, an increase of 425.44% year-on-year[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥20,993,452.98, a decline of 156.39% compared to the previous year[16]. - The net cash flow from operating activities was -¥252,868,573.71, a significant decrease of 2,614.94% from the same period last year[16]. - The basic earnings per share increased to ¥0.31, up 416.67% from ¥0.06 in the previous year[16]. - Gross profit for the same period was 97.11 million yuan, down 63.88% year-on-year[36]. - The company's total revenue for the first half of 2020 was 216.48 million yuan, a year-on-year decrease of 56.70%[36]. - The operating costs decreased by 48.35% to 119.37 million yuan, in line with the decline in revenue[43]. - The company reported a net increase in cash and cash equivalents of 898.98 million yuan, a 1,118.54% increase due to proceeds from property disposals[43]. - The company reported a net profit of CNY 66,727,588.17, recovering from a loss of CNY 212,989,346.72 in the previous period[131]. Business Segments - The company is engaged in the research, manufacturing, marketing, and service of ultra-high-resolution digital splicing wall systems, which are widely used in various industries[24]. - The ultra-high resolution digital splicing wall system business (VW business) reported revenue of 156.18 million yuan, a year-on-year decline of 47.44% due to the impact of COVID-19[37]. - The children's growth platform business achieved revenue of 60.29 million yuan, down 70.28% year-on-year, significantly affected by the pandemic[39]. - The children's growth platform business includes kindergarten services, product sales, and diverse growth scenarios, with thousands of institutions served[31]. - The company has established a strong educational research team and has developed proprietary kindergarten curriculum systems, enhancing its competitive edge in the children's education sector[32]. - The company has integrated multiple educational brands, optimizing operations and achieving diversified business development[33]. - The electronic visual industry accounted for 72.15% of total revenue, while the children's education service industry made up 27.85%[46]. Investments and Assets - The total assets at the end of the reporting period were ¥2,916,760,316.56, reflecting a growth of 1.74% compared to the end of the previous year[16]. - The net assets attributable to shareholders of the listed company increased by 11.87% to ¥2,582,863,860.87[16]. - Cash and cash equivalents increased to approximately ¥1.34 billion, representing 45.83% of total assets, up 21.07% from the previous year[52]. - Long-term equity investments rose to approximately ¥372.49 million, accounting for 12.77% of total assets, an increase of 6.68% year-over-year[52]. - The company reported goodwill of approximately ¥325.51 million, a decrease of 29.14% year-over-year, primarily due to goodwill impairment recognized in 2019[52]. Fundraising and Financial Management - The total amount of raised funds was approximately ¥905.91 million, with a remaining balance of approximately ¥593.53 million as of June 30, 2020[54]. - The company approved the use of up to RMB 500 million of idle raised funds for cash management, purchasing structured deposit products of RMB 250 million each from Minsheng Bank and Ping An Bank[57]. - The company has adjusted the investment scale and construction period of fundraising projects to better protect the interests of shareholders[60]. - The company has disclosed its fundraising project status in the semi-annual report, ensuring transparency in the use of raised funds[61]. Market Conditions and Challenges - The COVID-19 pandemic has significantly impacted the ultra-high-definition digital splicing wall system and children's growth platform businesses, but the company is optimistic about the fundamental business outlook[69]. - The pandemic has affected the operations of partner kindergartens and children's community schools, leading to potential delays in reopening and reduced sales of related services and products[71]. - The company is adapting to changes in the preschool education industry policy, which may reduce service and product procurement needs from partner kindergartens[72]. - There is a risk of talent shortages in the children's growth platform sector, which the company aims to address through improved employee assessment and training mechanisms[72]. Shareholder and Corporate Governance - The company did not distribute cash dividends or issue bonus shares for the half-year period[76]. - The semi-annual financial report has not been audited[79]. - The company reported no penalties or rectifications during the reporting period[82]. - The company completed a share transfer of 219,502,109 shares, representing approximately 24.22% of the total issued shares, changing the controlling shareholder[99]. - The company’s actual controller changed to "no actual controller" after the share transfer[112]. - The total number of common shareholders at the end of the reporting period was 41,571[108]. Accounting and Financial Reporting - The company adheres to the enterprise accounting standards, ensuring that financial statements accurately reflect its financial position and operating results[177]. - The accounting period is from January 1 to December 31 each year, with a normal operating cycle of 12 months[178][179]. - The company's functional currency is Renminbi (RMB)[180]. - The consolidated financial statements include the company and its subsidiaries, with control being the basis for consolidation[184]. - The company recognizes minority interests in the consolidated balance sheet and profit and loss statements, reflecting their share of net profit and comprehensive income[188].

2020 年 04 月 1 威创集团股份有限公司 2020 年第一季度报告全文 第一节 重要提示 威创集团股份有限公司 2020 年第一季度报告全文 威创集团股份有限公司 2020 年第一季度报告 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人何正宇、主管会计工作负责人何一名及会计机构负责人(会计主 管人员)江玉兰声明：保证季度报告中财务报表的真实、准确、完整。 2 威创集团股份有限公司 2020 年第一季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业收入（元） | 66,110,785.35 | 217,446,076.79 | -69.60% | | 归属于上市公司股东的净利润（元） | 10,960,601.19 | 9,795,754.79 | ...

Financial Performance - The company's operating revenue for 2019 was CNY 1,101,742,157.35, a decrease of 5.79% compared to CNY 1,169,513,124.76 in 2018[16] - The net profit attributable to shareholders was a loss of CNY 1,230,836,562.90, representing a decline of 876.82% from a profit of CNY 158,445,671.29 in the previous year[16] - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 1,240,662,115.40, down 1227.32% from CNY 110,054,480.60 in 2018[16] - The gross profit for the year was 567.34 million yuan, down 10.41% compared to the previous year[42] - The ultra-high-resolution digital splicing wall system business generated revenue of 631.28 million yuan, with a year-on-year growth of 7.26%[43] - The revenue from the children's education services sector decreased by 19.02% year-on-year, totaling approximately ¥470.46 million[64] - The kindergarten service business revenue was ¥171.09 million, down 28.72% year-on-year, reflecting significant external environmental changes[52] - The kindergarten product sales revenue was ¥214.88 million, a decrease of 15.18% year-on-year, primarily due to increased operational uncertainties among partner kindergartens[55] Cash Flow and Assets - The net cash flow from operating activities increased by 15.54% to CNY 182,795,246.68 from CNY 158,212,048.20 in 2018[16] - The total assets at the end of 2019 were CNY 2,866,992,973.81, a decrease of 35.75% from CNY 4,462,130,289.12 at the end of 2018[16] - The total cash and cash equivalents decreased significantly by 3,229.43% to approximately -¥728.70 million[75] - Cash and cash equivalents at the end of 2019 were ¥432,252,686.37, down from ¥1,159,970,052.64 at the beginning of the year, a decrease of 10.92% in proportion to total assets[80] Business Strategy and Development - The company has maintained its focus on the ultra-high-definition digital splicing wall system and children's growth education services as its main business areas[15] - The company plans to implement a "digital, platform, and product" strategy in response to the challenges posed by the COVID-19 pandemic, focusing on digitalizing traditional course systems[59] - The company aims to deepen cooperation with industry partners and optimize resource allocation to ensure sustainable development in the VW business[50] - The company is actively adjusting its business model and organizational structure to respond to policy changes affecting the children's growth platform[53] - The company plans to enhance its kindergarten service system to promote the "universal, inclusive, safe, and high-quality" development of preschool education[106] Research and Innovation - The company reported a total of 79 new invention patents filed and 83 invention patents granted during the reporting period, reflecting its commitment to innovation[31] - The company has established a strong educational research team through the establishment of the Weichuang Education Research Institute, enhancing its educational content development capabilities[35] - The company has formed partnerships with leading educational content companies to build a comprehensive children's growth ecosystem[36] Shareholder and Governance - The company plans not to distribute cash dividends or issue bonus shares[5] - The company reported a share buyback amounting to ¥20,046,323.11 in 2019, which is considered equivalent to cash dividends[113] - The company has committed to distributing profits not less than 30% of the average distributable profits achieved over the last three years, contingent on normal operational funding needs[119] - The company has ongoing commitments to ensure transparency and fairness in related party transactions, including hiring intermediaries for evaluations when necessary[119] Challenges and Risks - The company faces a risk of talent shortages in the children's growth platform, which is critical for achieving its strategic development goals[109] - The company has identified risks related to lower-than-expected service and product procurement demands from partner kindergartens due to industry policy changes[108] - The company’s performance commitments were affected by multiple factors, including changes in the preschool education policy environment and unsuccessful exploration of new business models[122] Future Outlook - The company expects a revenue growth of 20% for the next fiscal year, projecting revenues to reach approximately 1.44 billion yuan[187] - New product launches are anticipated to contribute an additional 200 million yuan in revenue in the upcoming year[187] - The company is considering strategic acquisitions to enhance its technology capabilities, with a budget of 100 million yuan allocated for potential deals[187] Employee and Management - The total number of employees in the company is 1,511, with 727 in the parent company and 772 in major subsidiaries[190] - The company has established a comprehensive training system for employees, including various training programs to enhance skills and management capabilities[193] - The total remuneration for the board and senior management during the reporting period is 1,553 million[189]

Financial Performance - Net profit attributable to shareholders was CNY 37,066,068.45, down 27.36% year-on-year[7] - Operating revenue for the reporting period was CNY 296,114,500.36, a decline of 2.73% compared to the same period last year[7] - Basic earnings per share decreased by 33.33% to CNY 0.04[7] - The net profit after deducting non-recurring gains and losses was CNY 33,676,203.41, a decrease of 24.16% year-on-year[7] - The company expects a net profit attributable to shareholders for 2019 to range from ¥79.22 million to ¥158.45 million, reflecting a potential decrease of 50% to 0% compared to 2018[24] - The company's total profit for the current period is CNY 116,961,594.45, down 33.3% from CNY 175,409,600.85 in the previous period[53] - The net profit attributable to the parent company is CNY 90,301,283.53, a decrease of 38.6% compared to CNY 147,096,283.30 in the previous period[54] - The net profit for Q3 2019 was ¥38,549,024.76, down 27.6% from ¥53,193,202.58 in the same period last year[46] - The net profit for the current period was ¥67,049,281.04, down 51.1% from ¥137,312,427.16 in the same period last year[56] Assets and Liabilities - Total assets at the end of the reporting period were CNY 4,185,164,050.70, a decrease of 6.21% compared to the end of the previous year[7] - The company's current assets decreased to CNY 1,483,141,673.51 from CNY 1,768,220,281.31, reflecting a decline of approximately 16.1%[35] - The total liabilities decreased to CNY 535,293,322.23 from CNY 876,213,246.48, indicating a reduction of about 39%[37] - The total assets decreased to ¥4,014,968,031.73 from ¥4,240,858,623.62, reflecting a decline of 5.3%[43] - Total current assets amounted to ¥1,317,595,804.38, down 15.2% from ¥1,554,293,717.87[41] - Total liabilities decreased to ¥405,371,739.31, a reduction of 40.2% compared to ¥678,439,385.51[42] - The total assets amounted to 4,462,130,289.12 CNY, with total liabilities at 876,213,246.48 CNY, indicating a healthy asset-to-liability ratio[68] - The company has a total equity of 3,585,917,042.64 CNY, with retained earnings of 1,017,669,111.30 CNY, showcasing strong profitability and reinvestment potential[69] Cash Flow - The net cash flow from operating activities increased significantly by 726.96% to CNY 47,760,037.30[7] - Cash and cash equivalents decreased by 47.01% to ¥614.68 million due to investments in financial products and loan repayments[16] - The net cash flow from operating activities improved by 338.28% to ¥38.45 million, attributed to reduced cash payments for performance bonuses and procurement[20] - The net cash flow from investment activities was -215,977,229.21 CNY, a decrease from -800,344,228.11 CNY in the previous period, indicating improved cash management[64] - The net cash flow from financing activities was -251,770,655.00 CNY, compared to a positive net cash flow of 228,687,315.39 CNY previously, reflecting increased cash outflows for debt repayment and interest distribution[64] - The total cash and cash equivalents at the end of the period stood at 521,285,675.36 CNY, down from 955,331,382.21 CNY at the beginning of the period, showing a significant reduction in liquidity[64] Shareholder Information - The total number of shareholders at the end of the reporting period was 44,964[11] - The largest shareholder, VTRON INVESTMENT LIMITED, held 23.31% of the shares, totaling 211,268,400 shares[11] Other Financial Metrics - The weighted average return on net assets was 1.03%, down 0.40% from the previous year[7] - The company reported a gross profit margin of approximately 13.5% for Q3 2019, compared to 17.9% in Q3 2018[44] - Research and development expenses for Q3 2019 were ¥20,940,852.47, slightly down from ¥21,801,509.70 in the previous year[44] - The company reported other income of CNY 25,935,075.90, down 39.8% from CNY 43,065,246.09 in the previous period[53] - The financial expenses for the current period increased to CNY 8,093,291.92, up 94.0% from CNY 4,168,573.06 in the previous period[53] - The company has experienced a significant increase in sales expenses, which rose to CNY 111,726,543.99, an increase of 16.3% from CNY 96,023,848.87 in the previous period[53]

Financial Performance - The company's operating revenue for the first half of 2019 was ¥500,001,975.31, a decrease of 3.98% compared to ¥520,745,469.52 in the same period last year[17]. - The net profit attributable to shareholders of the listed company was ¥53,235,215.08, down 44.59% from ¥96,066,901.98 year-on-year[17]. - The net profit after deducting non-recurring gains and losses was ¥37,227,103.19, a decline of 46.68% compared to ¥69,811,885.17 in the previous year[17]. - The basic earnings per share decreased by 45.45% to ¥0.06 from ¥0.11 in the same period last year[17]. - The total operating revenue for the first half of 2019 was CNY 500,001,975.31, a decrease of 3.98% compared to CNY 520,745,469.52 in the same period last year[51]. - The net profit for the first half of 2019 was CNY 59,877,264.97, down 41.0% from CNY 101,394,781.99 in the first half of 2018[126]. - The total comprehensive income for the first half of 2019 was CNY 59,892,265.07, down from CNY 101,433,496.73 in the same period last year[127]. Assets and Liabilities - The total assets at the end of the reporting period were ¥4,325,691,683.01, a decrease of 3.06% from ¥4,462,130,289.12 at the end of the previous year[17]. - Total liabilities decreased from CNY 876,213,246.48 to CNY 714,989,610.01, a decline of around 18.4%[118]. - Owner's equity increased from CNY 3,585,917,042.64 to CNY 3,610,702,073.00, an increase of about 0.7%[118]. - The company's cash and cash equivalents as of June 30, 2019, amount to ¥1,071,245,331.02, a decrease from ¥1,159,970,052.64 at the end of 2018[115]. - The total liabilities at the end of the period were 3,550,913,903.04 CNY[149]. Cash Flow - The net cash flow from operating activities was negative at -¥9,313,970.66, compared to -¥8,517,290.76 in the same period last year, reflecting a decline of 9.35%[17]. - The total cash inflow from operating activities for the first half of 2019 was CNY 615,958,961.40, a decrease of 11.0% compared to CNY 692,205,333.96 in the same period of 2018[131]. - The net cash flow from investment activities was CNY 39,603,943.17, a significant improvement from CNY -667,278,286.82 in the first half of 2018[133]. - Cash inflow from financing activities was CNY 254,698,860.61, while cash outflow was CNY 118,596,571.90, resulting in a net cash flow of CNY -118,596,571.90[133]. Business Segments - The company operates two main businesses: ultra-high-resolution digital splicing wall systems (VW business) and a children's growth platform[24]. - The VW business includes products such as DLP, LCD, and LED display units, signal processors, and visualization software, which are widely used in public safety, energy, transportation, and finance sectors[24]. - The children's growth platform consists of kindergarten services, product sales, and multi-dimensional growth scenarios, serving approximately 6,000 kindergartens and early education institutions[31]. - The ultra-high-definition digital splicing wall system business generated revenue of ¥297,161,446.76, an increase of 6.42% year-on-year, with a gross profit of ¥151,892,505.87, up 10.08%[40]. - The children's growth platform business reported revenue of ¥202,840,528.55, a decline of 16.01%, and a gross profit of ¥116,976,108.36, down 15.57%[44]. Research and Development - Research and development expenses rose by 31.15% to CNY 42,362,344.09 due to increased investment in R&D during the reporting period[51]. - During the reporting period, the company applied for 16 new invention patents and obtained 51 authorized invention patents, enhancing its intellectual property portfolio[27]. - The company launched several new hardware products, including the first 4K ultra-high-definition dual-stream codec and an industry-leading LED splicing processor, improving reliability and maintenance[28]. Strategic Initiatives - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company aims to expand its children's growth ecosystem by collaborating with leading educational content companies and exploring new business models[33]. - The company introduced a strategic partnership with Science City (Guangzhou) Investment Group in June 2019 to enhance its shareholder structure and explore collaboration in various sectors[45]. - The company is focusing on integrating its educational brands and optimizing its organizational structure to support frontline business operations more effectively[39]. Shareholder Information - The company completed the repurchase and cancellation of 4,141,974 restricted shares, reducing the total share capital from 910,356,625 shares to 906,214,651 shares[96]. - The company repurchased a total of 9,699,020 shares, accounting for 1.07% of the total share capital, with a total expenditure of approximately RMB 50.05 million[97]. - The company’s first major shareholder, VTRON INVESTMENT LIMITED, transferred 91 million unrestricted shares, representing 10.00% of the total share capital, to SCIENCE CITY GROUP[92]. Market Conditions - The company is actively exploring sustainable development paths in response to industry challenges and is enhancing its capital cooperation externally[39]. - The company is committed to attracting and retaining high-level talent to support its strategic development goals in the children's growth platform sector[78]. - The proportion of inclusive kindergartens in China was reported at 68.57% in 2018, with a target of reaching 80% by 2020, which may impact the company's service and product procurement from partner kindergartens[77].

Financial Performance - The company's operating revenue for Q1 2019 was ¥217,446,076.79, representing a 0.60% increase compared to ¥216,156,645.93 in the same period last year[7] - The net profit attributable to shareholders decreased by 68.35% to ¥9,795,754.79 from ¥30,950,109.86 year-on-year[7] - The net profit after deducting non-recurring gains and losses fell by 82.12% to ¥5,154,217.14 from ¥28,832,007.71 in the previous year[7] - Basic and diluted earnings per share decreased by 66.67% to ¥0.01 from ¥0.03 year-on-year[7] - The company's net profit for Q1 2019 was CNY 14,934,322.13, a decrease from CNY 33,387,835.12 in the previous year, reflecting a decline of approximately 55.32%[37] - The net profit for Q1 2019 was CNY 10,786,378.56, a decrease of 66.2% from CNY 31,892,234.72 in Q1 2018[38] - The total comprehensive income for Q1 2019 was CNY 10,745,104.81, compared to CNY 31,837,357.19 in the previous year, reflecting a decline of 66.3%[38] - The company reported a total profit of CNY 15,001,395.61 for Q1 2019, down from CNY 33,460,292.66 in Q1 2018, indicating a decline of 55.2%[38] Cash Flow - The net cash flow from operating activities was negative at ¥-83,960,184.66, a decline of 255.84% compared to ¥-23,595,167.49 in the same period last year[7] - Operating cash flow net amount for Q1 2019 was -¥83,960,184.66, a decrease of 255.84% compared to -¥23,595,167.49 in Q1 2018, mainly due to reduced sales receipts and tax payments[16] - The company's operating cash flow for Q1 2019 was negative CNY 83,960,184.66, worsening from negative CNY 23,595,167.49 in Q1 2018[45] - The total cash inflow from operating activities was CNY 346,805,840.84, compared to CNY 291,013,332.49 in the previous year, an increase of 19.2%[45] - The total cash outflow from operating activities was 221,184,000.85, an increase from 182,940,043.99 in the previous period, suggesting higher operational costs[48] Assets and Liabilities - The total assets at the end of the reporting period were ¥4,342,747,272.28, down 2.68% from ¥4,462,130,289.12 at the end of the previous year[7] - Current assets totaled CNY 1,465,099,918.98 as of March 31, 2019, down from CNY 1,554,293,717.87 at the end of 2018, a decrease of about 5.73%[35] - Total liabilities amounted to CNY 746,085,124.85, compared to CNY 876,213,246.48 in the previous year, showing a reduction of approximately 15.00%[32] - The total assets of the company were CNY 4,168,380,132.66, a decrease from CNY 4,240,858,623.62, indicating a decline of about 1.7%[35] - The total liabilities amounted to 876,213,246.48, reflecting the company's financial obligations[53] - The total assets were reported at 4,462,130,289.12, indicating the overall size of the company's balance sheet[53] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 48,318[11] - VTRON INVESTMENT LIMITED held 33.20% of the shares, with 302,268,400 shares pledged[11] - As of March 31, 2019, the controlling shareholder VTRON INVESTMENT LIMITED pledged 28,959,000 shares, accounting for 31.81% of the company's total share capital[17] - The company repurchased a total of 5,730,220 shares, representing 0.63% of the total share capital, with a total payment of ¥29,999,484.26[19] - The repurchased shares will be used for employee stock ownership plans or equity incentive plans to enhance the long-term incentive mechanism[20] Government Support and Investments - The company received government subsidies amounting to ¥4,846,875.00 during the reporting period[8] - The company established the "Weichuang Tianrui Education Industry Fund" with Tianfeng Tianrui Investment Co., Ltd., which has completed fundraising and registration as of the report date[17] - The company has a long-term investment portfolio valued at approximately $2.16 billion, reflecting its strategic investment approach[56] Financial Expenses - Financial expenses rose by 205.15% to ¥4,057,023.17 from ¥1,329,518.54, primarily due to increased loan interest expenses[16] - The company incurred financial expenses of CNY 4,115,860.64 in Q1 2019, significantly higher than CNY 1,357,933.82 in Q1 2018, marking an increase of 202.5%[41] Research and Development - The company reported a research and development expense of CNY 16,582,348.53 for Q1 2019, down from CNY 19,818,278.59 in the same period last year, a decrease of about 16.5%[37] - Research and development expenses increased to CNY 10,679,802.45 in Q1 2019, up from CNY 8,578,577.75 in the same period last year, representing a growth of 24.5%[41] Compliance and Reporting - The company has not audited the first quarter report for 2019, indicating a focus on internal assessments[58] - The company has adjusted its financial reporting to comply with new accounting standards effective January 1, 2019[57]