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]

Financial Performance - The company's operating revenue for 2018 was CNY 1,169,513,124.76, representing a 2.82% increase compared to CNY 1,137,479,087.31 in 2017[17]. - The net profit attributable to shareholders of the listed company decreased by 16.57% to CNY 158,445,671.29 from CNY 189,905,317.20 in the previous year[17]. - The net profit after deducting non-recurring gains and losses was CNY 110,054,480.60, down 31.43% from CNY 160,509,360.81 in 2017[17]. - The net cash flow from operating activities was CNY 158,212,048.20, a decrease of 36.47% compared to CNY 249,017,833.50 in 2017[17]. - Basic earnings per share were CNY 0.17, down 22.73% from CNY 0.22 in the previous year[17]. - Total assets at the end of 2018 were CNY 4,462,130,289.12, an increase of 3.64% from CNY 4,305,537,414.79 at the end of 2017[17]. - The weighted average return on net assets was 4.53%, down from 7.31% in 2017, reflecting a decrease of 2.78%[17]. - The company's total revenue for the four quarters was approximately 1.17 billion yuan, with Q4 revenue reaching 344.34 million yuan, the highest among the quarters[22]. - Net profit attributable to shareholders for the year totaled approximately 158.45 million yuan, with Q1 showing a profit of 30.95 million yuan, while Q4 saw a significant drop to 11.35 million yuan[22]. - The net cash flow from operating activities showed a notable improvement in Q4, with a positive cash flow of 174.35 million yuan, contrasting with negative cash flows in Q1 and Q3[22]. Business Segments - The high-resolution digital splicing wall system business generated revenue of CNY 588,538,953.30, a decline of 10.62% year-on-year, while the children's growth platform business saw revenue growth of 21.29% to CNY 580,974,171.46[43]. - The children's growth platform business achieved a gross profit of CNY 330,056,783.72, reflecting a year-on-year increase of 19.04%[43]. - The company has maintained its focus on the ultra-high-definition digital splicing wall system and has expanded into the children's growth education service sector since 2015[15]. - The children's growth platform business has expanded to include services for kindergartens and sales of educational products, contributing to revenue diversification[27]. - The company is actively involved in market expansion through investments in educational technology firms, enhancing its service offerings in the education sector[28]. Research and Development - The company successfully filed for 105 new patents during the year, including 100 invention patents, enhancing its intellectual property portfolio[30]. - Research and development expenses amounted to ¥92,612,930.34, an increase of 18.64% compared to the previous year[74]. - The number of R&D personnel increased by 1.55% to 327, while the R&D expenditure as a percentage of operating income decreased to 7.92%[76]. Investments and Acquisitions - The company invested CNY 262.5 million in Beijing Kerry Alliance Education, acquiring a 35% stake in the children's English training sector[86]. - A total of CNY 50 million was invested in Guangdong Sunshine Vision Education, representing a 12.5% stake in educational products[86]. - The company added several subsidiaries to its consolidation scope, including Guangdong Weile Education Technology Co., Ltd. and Dalian Fangjing Education Consulting Co., Ltd.[72]. - The company has not reported any ongoing significant non-equity investments during the reporting period[91]. Shareholder Returns and Dividends - The company plans not to distribute cash dividends or issue bonus shares for the year[5]. - In 2018, the company repurchased 5,730,220 shares at a total cost of ¥29,993,479.88, which is considered equivalent to cash dividends, leading to no cash dividend distribution for the year[116]. - The company has established a clear profit distribution policy and a three-year shareholder return plan (2016-2018) to ensure reasonable returns for shareholders[114]. - The company plans to roll over the undistributed profits from 2018 to meet future operational funding needs and promote sustainable development[118]. Corporate Governance and Compliance - The company has maintained a continuous relationship with the auditing firm Zhonghua CPA for seven years, ensuring consistent financial oversight[143]. - The company has established a commitment to ensure that any related party transactions do not harm the rights of other shareholders[124]. - The company has a long-term commitment to not interfere with the management activities of the company or infringe on its interests[126]. - The company has not reported any major changes in the feasibility of its projects[95]. Employee and Management Structure - The total number of employees in the company is 2,522, with 713 in the parent company and 1,809 in major subsidiaries[198]. - The company has a professional composition of 1,050 teaching staff, 510 sales personnel, 327 technical staff, 133 production personnel, 91 financial staff, and 411 administrative staff[198]. - The total remuneration for directors and senior management during the reporting period amounts to 1,671,000 RMB[197]. - The company’s management team is composed of 6 members, each with a strong background in their respective fields, contributing to effective leadership[189]. Social Responsibility - The company emphasizes its commitment to social responsibility, focusing on "responsibility, collaboration, and innovation" as core values[155]. - The company actively supports social welfare and assists vulnerable groups, contributing to harmonious development with society[155]. - The company is not classified as a key pollutant discharge unit by environmental protection authorities[157].

Financial Performance - Net profit attributable to shareholders was ¥51,029,381.32, a decrease of 29.19% year-on-year[8]. - Operating revenue for the period was ¥304,425,524.87, down 6.31% compared to the same period last year[8]. - Basic earnings per share were ¥0.06, a decrease of 33.33% compared to the same period last year[8]. - The weighted average return on net assets was 1.43%, down 1.47% year-on-year[8]. - The net cash flow from operating activities was -¥7,617,754.77, a decline of 110.48% year-on-year[8]. - Net cash flow from operating activities decreased by 118.90% to -¥16,135,045.53 due to reduced cash receipts from sales[21]. - The net profit attributable to shareholders for 2018 is expected to range from ¥15,192.42 million to ¥20,889.58 million, reflecting a change of -20% to 10% compared to 2017's net profit of ¥18,990.53 million[28]. Shareholder Information - The total number of shareholders at the end of the reporting period was 41,057[12]. - The largest shareholder, VTRON INVESTMENT LIMITED, holds 33.20% of the shares, with 211,970,000 shares pledged[12]. - The company did not engage in any repurchase transactions during the reporting period[13]. - The company repurchased 5,730,220 shares, accounting for 0.63% of total share capital, at a total cost of ¥29,999,484.26[22]. Asset Management - Total assets at the end of the reporting period reached ¥4,419,014,621.12, an increase of 2.64% compared to the end of the previous year[8]. - Cash and cash equivalents decreased by 52.11% to ¥566,060,806.46 due to the purchase of financial products[17]. - Other receivables increased by 272.97% to ¥75,689,257.59 primarily due to unreceived amounts from finance leases[17]. - Long-term borrowings increased by 530.22% to ¥244,801,800.00 due to new loans[17]. Investment Activities - Investment income rose by 79.87% to ¥10,707,820.75, mainly from the purchase of financial products[20]. - The company invested ¥40 million in its wholly-owned subsidiary, Guangdong Weile Education Technology Co., Ltd.[24]. - The company has invested a total of ¥50,910 million in entrusted financial management, with ¥5,910 million from self-owned funds and ¥45,000 million from raised funds[32]. - The entrusted financial management has a total outstanding balance of ¥50,825 million, with no overdue amounts[32]. - The company has a projected return of 4.55% on the entrusted financial management, amounting to ¥1,497.76 million[33]. Strategic Plans - The company plans to increase its net profit attributable to shareholders for 2018, indicating positive performance expectations[27]. - The company plans to expand its market presence through strategic investments and acquisitions[24]. - The company plans to invest in the kindergarten operation management service business, which will increase costs due to exploration of franchise models, talent development, and product R&D[28]. - The sales structure change of the ultra-high-definition digital splicing wall products is anticipated to impact the gross margin[28]. - The company has committed to pay incentive bonuses related to the acquisition of 100% equity in Beijing Golden Cradle Education Technology Co., Ltd. after meeting three-year performance commitments, affecting overall performance[28]. Compliance and Governance - There are no non-operating fund occupations by controlling shareholders or related parties during the reporting period[30]. - The company has not engaged in any violations regarding external guarantees during the reporting period[29]. - The company conducted an on-site investigation on September 13, 2018, with information available on the investor relations section of the official website[34]. Non-Recurring Items - Non-recurring gains and losses totaled ¥32,882,047.40 for the reporting period[9]. - Management expenses increased by 44.11% to ¥166,169,669.78 due to higher management fees from subsidiaries[19].

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 520,745,469.52, representing a 9.70% increase compared to CNY 474,692,887.71 in the same period last year[17]. - The net profit attributable to shareholders of the listed company decreased by 7.41% to CNY 96,066,901.98 from CNY 103,755,204.56 year-on-year[17]. - The net profit after deducting non-recurring gains and losses was CNY 69,811,885.17, down 21.30% from CNY 88,709,610.29 in the previous year[17]. - The basic earnings per share decreased by 8.33% to CNY 0.11 from CNY 0.12 year-on-year[17]. - The company achieved operating revenue of CNY 520,745,469.52, a year-on-year increase of 9.70%, while net profit attributable to shareholders decreased by 7.41% to CNY 96,066,901.98[35]. - The ultra-high-resolution digital splicing wall system business generated sales revenue of CNY 279,227,600, a decrease of 2.51% year-on-year, amid increasing competition and declining product prices[36]. - The kindergarten operation management service business reported revenue of CNY 241,517,900, reflecting a year-on-year growth of 28.27%, with a gross profit of CNY 138,545,500, up 23.33%[41]. Cash Flow and Investments - The net cash flow from operating activities was negative at CNY -8,517,290.76, a decline of 167.13% compared to CNY 12,688,490.07 in the same period last year[17]. - The company’s investment activities generated a net cash flow of -¥667,278,286.82, primarily due to payments for equity acquisitions and financial products[58]. - The company reported a significant increase in other current assets from 146,082,983.94 to 477,959,597.38, representing a growth of about 226.5%[129]. - Investment cash inflow totaled CNY 1,258,919,150.60, significantly higher than CNY 404,660,108.49 in the previous period, marking a 211.5% increase[142]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 4,305,168,386.87, a slight decrease of 0.01% from CNY 4,305,537,414.79 at the end of the previous year[17]. - The total liabilities decreased from 833,577,934.29 to 754,254,483.83, a reduction of approximately 9.5%[131]. - The total equity attributable to shareholders increased from 3,448,652,738.16 to 3,532,467,280.69, reflecting a growth of about 2.4%[131]. - The company’s cash and cash equivalents decreased by 32.55% to -¥460,813,188.07, attributed to payments for equity acquisitions and financial products[58]. Business Operations - The company operates two main businesses: ultra-high-resolution digital splicing wall systems and kindergarten operation management services[24]. - The ultra-high-resolution digital splicing wall systems business includes products based on DLP, LCD, and LED technologies, widely used in public safety, energy, transportation, and finance sectors[24]. - The kindergarten operation management services business manages nearly 5,200 kindergartens, making the company the largest in terms of market share in the kindergarten education industry[31]. - The company is focusing on the control room market and accelerating the development of COB small-pitch LED business to enhance its value-added services[36]. Strategic Initiatives - The company has established strategic partnerships with various specialized companies to enhance its ecosystem in the kindergarten education sector[32]. - The company is developing a "cloud + end" system for smart kindergarten management, which includes five major modules for operational management[32]. - The company aims to leverage big data and artificial intelligence in the kindergarten sector, gradually becoming a core competitive advantage[32]. - The company strategically invested in Kerry Group to strengthen its children's growth platform and established connections with top international IPs[43]. Research and Development - The company applied for 32 new patents and received 49 new patent authorizations, enhancing its R&D capabilities in the digital splicing wall systems business[28]. - The establishment of the Weichuang Potential Research Institute aims to enhance the company's teaching research work towards a more integrated and standardized approach[43]. Shareholder and Governance - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company has committed to distributing at least 30% of the average distributable profit over the last three years in cash dividends[98]. - The company has established a comprehensive employee assessment and incentive mechanism to attract and retain high-quality talent in the early education sector[86]. - The company confirmed that there are no direct or indirect competitive situations with its operations, and it will not develop similar businesses or projects in China or abroad[95]. Compliance and Reporting - The financial report was approved by the board of directors on August 28, 2018, indicating a commitment to transparency and governance[166]. - The company has not faced any litigation or regulatory penalties during the reporting period[98]. - The company’s financial statements are reported in Renminbi (RMB)[128]. - The company has assessed its ability to continue as a going concern for the next 12 months, indicating a stable operational outlook[167].

Financial Performance - The company's operating revenue for Q1 2018 was CNY 216,156,645.93, representing a 20.02% increase compared to CNY 180,100,098.78 in the same period last year[8] - Net profit attributable to shareholders was CNY 30,950,109.86, up 15.21% from CNY 26,864,427.20 year-on-year[8] - The net profit after deducting non-recurring gains and losses increased by 41.30%, reaching CNY 28,832,007.71 compared to CNY 20,405,314.97 in the previous year[8] - The net cash flow from operating activities improved by 53.62%, with a net outflow of CNY 23,595,167.49, compared to CNY 50,873,005.67 in the same period last year[8] Assets and Liabilities - Total assets at the end of the reporting period were CNY 4,280,116,411.39, a decrease of 0.59% from CNY 4,305,537,414.79 at the end of the previous year[8] - The net assets attributable to shareholders increased by 0.90%, amounting to CNY 3,479,547,970.49 compared to CNY 3,448,652,738.16 at the end of the previous year[8] - Cash and cash equivalents decreased by 49.91% to ¥592.13 million due to the purchase of financial products[16] - Other current assets increased by 392.64% to ¥719.66 million primarily due to the purchase of financial products[16] - Long-term borrowings increased by 594.69% to ¥269.84 million due to acquisition loans[16] - Accounts payable decreased by 36.90% to ¥36.33 million due to payments to suppliers[16] - Other payables decreased by 40.13% to ¥264.85 million due to investment payments[16] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 41,886[11] - The largest shareholder, VTRON INVESTMENT LIMITED, held 33.09% of the shares, amounting to 302,268,400 shares, with 185,770,000 shares pledged[11] Cash Flow Analysis - Operating cash flow improved by 53.62% to -¥23.60 million due to increased cash inflows from business activities[16] - Investment cash flow decreased by 404.78% to -¥795.17 million primarily due to payments for purchasing financial products[16] - Financing cash flow increased significantly by 23008.02% to ¥229.04 million due to acquisition loans[16] - Financial expenses rose by 507.88% to ¥1.33 million mainly due to increased bank loan interest expenses[16] Future Plans and Expectations - The company plans to expand its market presence and enhance product development capabilities[19] - The net profit attributable to shareholders for the first half of 2018 is expected to range from 9,337.97 to 12,450.62 million RMB, reflecting a change of -10.00% to 20.00% compared to 10,375.52 million RMB in the same period of 2017[25] - The company is actively promoting its high-resolution digital splicing wall system business and expanding its kindergarten operation management services, aiming to enhance profitability and sustainable growth[25] - The company plans to invest in incubating children's industry ecological companies and continuously increase the number of serviced kindergartens through mergers and acquisitions[25]