证券代码：002331 证券简称：皖通科技 | --- | --- | --- | |--------------------|---------------------------------|----------------------------------------------------| | | | 编号：20230518 | | | □特定对象调研 | □分析师会议 | | | □媒体采访 ■业绩说明会 | | | 投资者关系活动类别 | | | | | □新闻发布会 □路演活动 | | | | □现场参观 | | | | □其他（请文字说明其他活动内容） | | | 参与单位及人员 | 线上参与公司 2022 | 年年度报告网上说明会的投资者 | | 时间 | 2023 年 05 月 18 | 日（星期四）下午 15:00-17:00 | | 地点 | "皖通科技投资者关系"微信小程序 | | | 形式 | 线上形式 | | | | 董事长：陈翔炜先生 | | | | 董事会秘书：张骞予先生 | | | 上市公司接待人员 | | | | | 财务负责人：许晓伟女士 | | | | 独立董事： ...

Financial Performance - The company's operating revenue for Q1 2023 was ¥89,306,140.24, a decrease of 52.42% compared to ¥187,701,964.50 in the same period last year[3] - The net loss attributable to shareholders was ¥31,980,632.84, representing a 159.03% increase in loss from ¥12,346,444.05 year-on-year[3] - Basic earnings per share were -¥0.0780, a decline of 159.14% from -¥0.0301 in the previous year[4] - Net loss for Q1 2023 was ¥35,203,073.03, compared to a net loss of ¥13,548,102.55 in Q1 2022, representing a significant increase in losses[29] - Basic and diluted earnings per share for Q1 2023 were both -¥0.0780, compared to -¥0.0301 in Q1 2022, showing a worsening performance[29] Assets and Liabilities - Total assets at the end of the reporting period were ¥2,638,947,487.11, down 1.11% from ¥2,668,658,006.10 at the end of the previous year[4] - The company's total assets decreased to ¥2,638,947,487.11 in Q1 2023 from ¥2,668,658,006.10 in Q1 2022, a decline of 1.1%[25] - Total liabilities increased slightly to ¥833,841,778.91 in Q1 2023 from ¥828,349,224.87 in Q1 2022, reflecting a 0.6% rise[25] Cash Flow - The company’s cash flow from operating activities showed a net outflow of ¥116,862,010.78, worsening by 21.24% from the previous year[3] - The net cash flow from operating activities was -116,862,010.78 CNY, compared to -96,385,134.12 CNY in the previous period, indicating a decline in operational cash flow[30] - The ending balance of cash and cash equivalents was 584,827,088.63 CNY, down from 650,326,133.14 CNY in the previous period, reflecting a decrease in liquidity[31] - Cash received from sales of goods and services was 224,946,674.23 CNY, down from 243,351,964.84 CNY in the previous period, indicating a decline in revenue generation[30] - Cash paid for purchasing goods and services was 258,121,567.81 CNY, up from 219,175,521.95 CNY in the previous period, indicating increased operational costs[30] Investments and Acquisitions - The company reported a 5206.08% increase in net cash flow from investing activities, primarily due to payments for acquisitions[9] - The company’s long-term equity investments grew by 3401.36% compared to the end of the previous year, mainly due to the acquisition of a subsidiary[8] - The company reported a cash acquisition of 70% equity in Huadong Lisheng for RMB 188.3 million, which has been completed and included in the consolidated financial statements[20] - The company is in the process of publicly transferring 100% equity of its subsidiary, Saiying Technology, with a minimum price of RMB 178.31 million based on an asset evaluation[18] - The company has successfully identified a qualified buyer for Saiying Technology, marking progress in its divestment strategy[19] Expenses - Research and development expenses increased by 206.31% compared to the end of the previous year, reflecting a significant investment in R&D[8] - The company’s sales expenses rose by 31.77% year-on-year, indicating increased investment in business expansion[9] - Research and development expenses for Q1 2023 were ¥11,282,274.81, down 23.5% from ¥14,778,218.60 in Q1 2022[27] Receivables and Inventory - The company experienced a 254.27% increase in receivables financing compared to the end of the previous year, attributed to an increase in bills[8] - The company’s accounts receivable decreased to RMB 581.68 million from RMB 715.1 million at the beginning of the year[23] - The company’s inventory increased to RMB 490.18 million from RMB 410.09 million at the beginning of the year[23] Legal Matters - The company has received a court ruling requiring Ankang Qiyun to pay RMB 25 million in performance bond, with additional penalties based on LPR[15] - The company has initiated legal proceedings against Jiangsu Nantang for unpaid prepayments totaling RMB 30 million[14]

Financial Performance - The company's operating revenue for 2022 was ¥983,459,945.21, a decrease of 2.36% compared to ¥1,007,263,586.90 in 2021[20] - The net profit attributable to shareholders was a loss of ¥103,122,378.47, representing a 14.10% increase in loss from ¥90,379,690.39 in the previous year[20] - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of ¥119,525,577.60, which is a 13.04% increase in loss compared to ¥105,736,833.65 in 2021[20] - The basic earnings per share for 2022 was -¥0.2514, a decline of 14.53% from -¥0.2195 in 2021[20] - The company's diluted earnings per share for 2022 was -0.2514 CNY, a decrease of 14.53% compared to -0.2195 CNY in 2021[21] - Total profit was ¥100,110,130.38, down 11.91% year-on-year, while net profit attributable to shareholders was -¥103,122,378.47, a decline of 14.10%[39] - The gross profit margin for the company was 21.93%, down by 1.82% year-on-year[59] - The company reported a total impairment provision of CNY 87,957,356.06 for the year 2022, which includes CNY 57,434,231.59 for asset impairment and CNY 30,523,124.47 for credit impairment[46] Cash Flow and Investments - The net cash flow from operating activities improved significantly to ¥1,514,506.78, a turnaround from a negative cash flow of ¥78,968,625.25 in 2021, marking a 101.92% increase[20] - The net cash flow from investment activities dropped significantly by 1,429.80% to -¥17,740,482.12 in 2022, primarily due to the purchase of structured deposits[72] - The net cash flow from financing activities increased by 139.66% to ¥3,228,569.78 in 2022, attributed to new borrowings[73] - Operating cash inflow decreased by 24.93% to ¥1,109,584,031.27 in 2022 from ¥1,477,996,576.78 in 2021, while operating cash outflow decreased by 28.83%[71] Business Strategy and Development - The company aims to leverage new technologies such as 5G, IoT, big data, cloud computing, and AI to enhance its position in the smart transportation sector[32] - The company plans to optimize its product services and establish new business models to maintain its leading position in highway information technology[32] - The company is focusing on the development of digital twin technology to empower smart city construction, leveraging government policy support[35] - The company is actively expanding its overseas market presence in the smart port and shipping sectors, responding to global economic recovery[38] - The company aims to enhance its capabilities in smart port construction, aiming to become a global innovation center for smart shipping by 2035[36] - The company plans to deepen capital operations and expand its business system through mergers, strategic cooperation, and investments to enhance overall efficiency and competitiveness[98] Risk Management - The company is currently facing risks and has outlined measures to address these in its management discussion section[4] - The company has reported a continuous uncertainty regarding its ability to continue as a going concern, as indicated by negative net profits over the last three accounting years[21] - The company is addressing management risks associated with its expanding operational scale by optimizing its internal control systems and enhancing subsidiary management[102] - The company is taking measures to manage risks related to the suspension of important industry qualifications, including transferring Saiying Technology's equity to ensure compliance[104] Shareholder and Governance - The controlling shareholder is Tibet Jingyuan Enterprise Management Co., Ltd., holding a 19.97% stake as of February 28, 2022[19] - The company maintained a shareholder participation rate of 24.42% in the first extraordinary general meeting of 2022[125] - The company ensures compliance with corporate governance regulations as per the requirements of the China Securities Regulatory Commission and Shenzhen Stock Exchange[110] - The company has established a transparent performance evaluation and incentive mechanism for senior management[118] - The company operates independently from its controlling shareholder, ensuring complete independence in business, assets, personnel, and finance[119] Research and Development - The company established a software center to enhance R&D and technical support across its business segments, focusing on digital technology innovation[48] - The company holds over 200 software copyrights and invention patents, showcasing its strong R&D capabilities and commitment to technological innovation[47] - The company's R&D expenses were CNY 76,734,547.20, a slight decrease of 0.74% compared to the previous year[66] - R&D investment amounted to ¥76,734,547.20 in 2022, a slight decrease of 0.74% compared to ¥77,303,856.15 in 2021, with R&D investment accounting for 7.80% of operating revenue[70] Market and Product Development - The company is focusing on expanding its market presence and enhancing its product offerings through new technology development[132] - The company is investing 100 million CNY in R&D for new technologies aimed at enhancing product efficiency and user experience[128] - New product launches included a smart traffic management system, which is projected to generate an additional 200 million CNY in revenue in 2023[128] - The company plans to enhance its digital marketing strategy, aiming for a 25% increase in online sales by the end of 2023[128] Compliance and Regulatory Matters - The company has not reported any penalties from regulatory authorities for its current or past directors and supervisors[143] - The company has established a complete internal control system that is continuously optimized to ensure effective management and risk control[166] - The internal control self-assessment report indicated zero significant defects in financial reporting and non-financial reporting[169] - The company has not faced any significant environmental protection issues or administrative penalties during the reporting period[174] Employee Management - The total number of employees at the end of the reporting period was 1,247, with 995 being technical personnel[158] - The total employee compensation during the reporting period amounted to ¥72,360,857.37, accounting for 9.43% of the total company costs[159] - The company has established a competitive compensation and benefits system, with a dynamic salary adjustment mechanism[159] - The company conducted various training programs to enhance employee skills and career development[160]

Group 1: Company Overview - Anhui Wantong Technology Co., Ltd. focuses on multiple sectors including highway information technology, port and shipping information technology, urban intelligent transportation, and intelligent security [2][3][4][5][6]. Group 2: Financial Performance - In the first half of 2016, the company achieved a revenue of ¥487,011,577.26, representing a growth of 68.55% compared to the same period last year [4][5]. - The total profit for the same period was ¥38,452,954.48, an increase of 22.27% year-on-year [5]. - The net profit attributable to shareholders was ¥28,912,868.73, reflecting a growth of 23.55% compared to the previous year [5]. Group 3: Strategic Initiatives - The company is actively integrating its business segments to form an industrial cluster effect, focusing on the "Big Transportation Informationization" strategy [5][6]. - It aims to expand its market presence in central regions such as Hubei and Hunan, leveraging national development strategies like the "Belt and Road" initiative [5][6]. Group 4: Market Position and Future Plans - The company maintains a leading position in the domestic port and shipping software development and system integration market [3][4][7]. - Future plans include enhancing the capabilities of its port and shipping information products and expanding into the urban intelligent transportation maintenance market [6][7][8].

Group 1: Company Overview - Anhui Wantong Technology Co., Ltd. focuses on system integration, application software development, and technical services in the fields of highway, port shipping, and urban intelligent transportation [3] - The company benefits from the increasing investment in national transportation infrastructure, leading to steady growth in the highway informationization market [3] - The expansion of existing highway mileage contributes to the growth of maintenance and operation markets, positively impacting revenue and profit in highway information system maintenance [3] Group 2: Business Segments - Port shipping informationization is supported by the wholly-owned subsidiary Yantai Huadong Electronic Software Technology Co., Ltd., which specializes in software development and technical services for the port and shipping industry [4] - The company maintains its leading position in the domestic market and has successfully expanded into overseas markets [4] - In the urban intelligent transportation sector, the company has invested in Anhui Wantong Urban Intelligent Transportation Technology Co., Ltd. to develop high-tech software and hardware products [4] Group 3: Future Developments - The company aims to enhance its service offerings through the integration of O2O models and value-added services [6] - China Port Network, a subsidiary, is positioned as a leading comprehensive operator in the port and shipping internet platform, providing various services including software development and vessel tracking [6][7] - Future plans include leveraging big data in the logistics industry to provide comprehensive services to port participants [7] Group 4: Employee Stock Ownership Plan - The first employee stock ownership plan involves up to 310 participants, including directors and key personnel, with a total funding cap of CNY 75 million [8] - As of November 11, 2016, the plan has purchased 4,616,241 shares at a total cost of CNY 73,268,458, representing 1.32% of the company's total share capital [8]

Group 1: Company Overview - Anhui Wantong Technology Co., Ltd. focuses on system integration, application software development, and technical services in the fields of highway, port shipping, and urban intelligent transportation [3]. - The company benefits from the increasing investment in national transportation infrastructure, leading to a steady growth in the highway informationization market [3]. - The company has expanded its revenue and profit in the highway information system operation and maintenance sector due to the increase in existing highway mileage [3]. Group 2: Business Segments - In the port shipping informationization sector, the wholly-owned subsidiary Yantai Huadong Electronic Software Technology Co., Ltd. specializes in software development and technical services for ports, shipping, and manufacturing [4]. - The company maintains its leading position in the domestic market and has successfully expanded into overseas markets [4]. - In the urban intelligent transportation sector, the company has invested in Anhui Wantong Urban Intelligent Transportation Technology Co., Ltd. to develop high-tech software and hardware products with independent intellectual property rights [4]. Group 3: Recent Developments - The "Xingyun Tianxia" platform, launched on November 20, 2015, integrates various services for traffic participants, leading to significant user growth [5]. - The company plans to develop vehicle-mounted products and services related to the post-vehicle market, leveraging its internet advantages [6]. - The company is actively pursuing technological research and market expansion in the port shipping informationization field, establishing a new subsidiary to enhance its capabilities [6]. Group 4: Employee Stock Ownership Plan - The first phase of the employee stock ownership plan involves up to 310 participants, with a total funding cap of 75 million yuan [8]. - As of November 11, 2016, the company purchased 4,616,241 shares at an average price of 15.87 yuan per share, representing 1.32% of the total share capital [8]. - The purchased shares are subject to a lock-up period of 12 months from the announcement date [9].

Business Overview - Anhui Wantong Technology Co., Ltd. is a leading enterprise in the digitalization of the transportation industry, integrating information technology, intelligence, and IoT [4] - The company focuses on SaaS applications in transportation, smart cities, military electronics, and public safety, providing comprehensive system integration solutions [4][5] Revenue and Growth - In 2019, the company achieved a revenue of CNY 1.46 billion, a year-on-year increase of 16.83% [6] - The net profit attributable to shareholders was CNY 169 million, representing a growth of 59.30% compared to the previous year [6] Market Expansion - The company has expanded its business to over 20 provinces in China, including Beijing, Anhui, Jiangsu, and others, accelerating its national strategy [5] - In the port and shipping sector, the company has maintained a domestic market advantage while successfully entering international markets in Latin America, Africa, the Middle East, and Southeast Asia [5] Industry Trends - The development of 5G and vehicle networking is accelerating the industrialization of smart transportation [7] - The integration of new technologies such as big data, AI, and IoT is driving significant changes in the transportation sector [8] Strategic Initiatives - The company is actively exploring new infrastructure opportunities, focusing on 5G, AI, and big data to enhance its competitive edge [10][12] - A new infrastructure business unit has been established to integrate high-end talent and develop smart transportation solutions [11] Talent and Innovation - The company has built a strong R&D team in big data and IoT, which is crucial for sustainable development [14] - Continuous investment in talent acquisition and development is prioritized to enhance organizational capabilities [14] Capital Operations - The company seeks strategic partnerships in big data, AI, and IoT to maximize its core technology advantages [14] - It plans to leverage capital market platforms for mergers, strategic cooperation, and investments to enhance its market position [14]

[Key Financial Data](index=1&type=section&id=I.%20Key%20Financial%20Data) This section provides an overview of the company's core financial performance, including key accounting data, financial indicators, non-recurring gains and losses, and reasons for significant changes in financial metrics [Key Accounting Data and Financial Indicators](index=1&type=section&id=(I)%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company's Q3 2022 and year-to-date operating performance significantly declined, with Q3 revenue down 38.91% and net profit attributable to shareholders turning to a loss, while year-to-date net loss expanded to RMB 111 million, alongside a reduction in total assets and shareholder equity Key Income Statement Indicators for Q3 and YTD 2022 | Indicator | Current Period (Q3) (RMB) | YoY Change | Year-to-Date (YTD) (RMB) | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 137,762,272.65 | -38.91% | 466,457,969.37 | -20.50% | | Net Profit Attributable to Shareholders of Listed Company | -29,170,354.99 | -549.90% | -111,109,552.36 | -959.46% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | -32,420,036.57 | -776.02% | -122,772,772.32 | -1,618.86% | | Basic Earnings Per Share (RMB/share) | -0.0711 | -552.87% | -0.2708 | -962.42% | Key Balance Sheet Indicators as of September 30, 2022 | Indicator | End of Current Period (RMB) | End of Prior Year (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 2,483,178,133.87 | 2,785,711,884.88 | -10.86% | | Total Equity Attributable to Shareholders of Listed Company | 1,749,976,155.13 | 1,861,085,707.49 | -5.97% | [Non-recurring Gains and Losses and Amounts](index=2&type=section&id=(II)%20Non-recurring%20Gains%20and%20Losses%20and%20Amounts) Year-to-date, the company's total non-recurring gains and losses amounted to RMB 11.66 million, primarily from government subsidies and investment income from disposing of trading financial assets, which partially offset operating losses Key Non-recurring Gains and Losses Items Year-to-Date | Item | Amount Year-to-Date (RMB) | | :--- | :--- | | Government Subsidies | 9,194,247.07 | | Investment Income from Trading Financial Assets, etc. | 2,782,023.64 | | Reversal of Impairment Provisions for Receivables Subject to Individual Impairment Testing | 2,285,641.54 | | **Total** | **11,663,219.96** | [Reasons for Changes in Key Financial Data and Indicators](index=3&type=section&id=(III)%20Reasons%20for%20Changes%20in%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Significant changes in financial indicators include increased prepayments, decreased other receivables, and reduced employee compensation; financial expenses rose, while credit and asset impairment losses substantially increased due to bad debt provisions and subsidiary asset impairment, expanding the net loss, though operating cash flow improved, investing cash flow saw a substantial outflow - Credit impairment losses decreased by **327.02%** year-on-year (recorded as a negative number in accounting, indicating an increase in loss), primarily due to individual bad debt provisions for current accounts in the current period[9](index=9&type=chunk) - Asset impairment losses are a new item in the current period, primarily due to asset impairment at subsidiary Saiying Technology[9](index=9&type=chunk) - Net cash flow from operating activities improved by **52.23%** compared to the same period last year, mainly due to the company strengthening the collection of receivables[10](index=10&type=chunk) - Net cash flow from investing activities decreased by **285.94%** year-on-year, primarily due to increased cash outflow from the purchase of structured deposits in the current period[10](index=10&type=chunk) [Shareholder Information](index=5&type=section&id=II.%20Shareholder%20Information) This section details the company's shareholder structure, including the total number of common shareholders and the top ten shareholders' holdings [Common Shareholder Holdings](index=5&type=section&id=(I)%20Total%20Number%20of%20Common%20Shareholders,%20Number%20of%20Preferred%20Shareholders%20with%20Restored%20Voting%20Rights,%20and%20Top%20Ten%20Shareholder%20Holdings) As of the end of the reporting period, the company had 28,544 common shareholders, with Tibet Jingyuan Enterprise Management Co., Ltd. as the largest shareholder at 19.97% holding, and some shares held by Southern Yingu Technology Co., Ltd., Yi Zenghui, and Lin Mushun were pledged or frozen - As of the end of the reporting period, the company had a total of **28,544** common shareholders[12](index=12&type=chunk) Top Five Shareholder Holdings | Shareholder Name | Shareholder Nature | Holding Percentage | Number of Shares Held | Share Status | | :--- | :--- | :--- | :--- | :--- | | Tibet Jingyuan Enterprise Management Co., Ltd. | Domestic Non-State-Owned Legal Person | 19.97% | 81,927,654 | - | | Southern Yingu Technology Co., Ltd. | Domestic Non-State-Owned Legal Person | 7.97% | 32,685,693 | Partially Pledged | | Fujian Guangju Information Technology Service Co., Ltd. | Domestic Non-State-Owned Legal Person | 4.97% | 20,398,816 | - | | Yi Zenghui | Domestic Natural Person | 3.50% | 14,343,958 | Fully Frozen | | Fujian Weiran Asset Management Co., Ltd. - Weiran No. 20 | Other | 3.11% | 12,741,880 | - | [Other Significant Matters](index=6&type=section&id=III.%20Other%20Significant%20Matters) This section addresses critical issues including past audit opinions, subsidiary performance commitments, suspension of key industry qualifications, and ongoing litigation [Past Audit Issues and Subsidiary Performance Commitments](index=6&type=section&id=(I)%20Non-Standard%20Audit%20Opinion%20on%202020%20Financial%20Report%20and%20Completion%20of%20Saiying%20Technology's%20Performance%20Commitment) The impact of the non-standard audit opinion on the company's 2020 financial report was eliminated in March 2022, and subsidiary Chengdu Saiying Technology Co., Ltd. successfully completed its 2017-2019 performance commitment with a cumulative completion rate of 101.43% - The company's board of directors believes that the impact of matters related to the qualified opinion in the 2020 audit report has been eliminated, confirmed by the supervisory board, independent directors, and accounting firm[15](index=15&type=chunk) - According to the audit report, subsidiary Saiying Technology achieved a cumulative performance completion rate of **101.43%** for 2017-2019, fulfilling its performance commitment[16](index=16&type=chunk) [Suspension of Subsidiary's Key Industry Qualifications](index=7&type=section&id=(II)%20Suspension%20of%20Subsidiary's%20Key%20Industry%20Qualifications) Full-owned subsidiary Saiying Technology's key industry qualification certificate is suspended due to the change in actual controller and the new controller Mr. Huang Tao's overseas permanent residency, which has adversely affected Saiying Technology's operations and financial condition, with solutions still uncertain - Due to the company's actual controller, Mr. Huang Tao, holding overseas permanent residency, the key industry qualification certificate of wholly-owned subsidiary Saiying Technology is suspended after its expiration[17](index=17&type=chunk) - The qualification suspension has led to unfavorable changes in cooperation between major business clients and Saiying Technology, adversely affecting its production, operations, and financial condition[17](index=17&type=chunk) [Subsidiary's Overdue External Loan](index=8&type=section&id=(III)%20Subsidiary's%20Overdue%20External%20Loan%20Not%20Recovered) Subsidiary Saiying Technology's RMB 10 million loan to Xi'an Qizheng in June 2021 is overdue, and Saiying Technology won the first-instance lawsuit, with active collection efforts underway and potential court enforcement if not repaid - Subsidiary Saiying Technology's **RMB 10 million** loan to Xi'an Qizheng is overdue and unrecovered, with a first-instance judgment in its favor obtained in September 2022[19](index=19&type=chunk) [Litigation Related to Ankang Big Data Industrial Park Project](index=8&type=section&id=(IV)%20Matters%20Related%20to%20Ankang%20Big%20Data%20Industrial%20Park%20Project) The company's wholly-owned subsidiary Huadong Electronics filed two lawsuits to recover a total of RMB 55 million in performance bonds and prepayments for the Ankang Big Data Industrial Park project, with one case awaiting judgment and the other delayed by jurisdiction objections - Subsidiary Huadong Electronics is pursuing litigation to recover **RMB 25 million** in performance bonds from Ankang Qiyun and **RMB 30 million** in prepayments from Jiangsu Nantang[20](index=20&type=chunk) - Both cases are currently under trial, with one delayed due to jurisdiction objections, leading to uncertainty regarding the timing of fund recovery[20](index=20&type=chunk)[21](index=21&type=chunk) [Quarterly Financial Statements](index=9&type=section&id=IV.%20Quarterly%20Financial%20Statements) This section presents the company's unaudited consolidated financial statements for the third quarter of 2022, including the balance sheet, income statement, and cash flow statement [Consolidated Balance Sheet](index=9&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of September 30, 2022, total assets were RMB 2.48 billion, down 10.86% from the beginning of the year; total liabilities were RMB 660 million, down 21.69%; and equity attributable to the parent company was RMB 1.75 billion, down 5.97%, with asset and liability decreases mainly driven by reduced receivables, cash, payables, and employee compensation Key Items from Consolidated Balance Sheet (Unit: RMB) | Item | September 30, 2022 | January 1, 2022 | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 540,575,878.38 | 748,675,161.18 | -27.80% | | Accounts Receivable | 508,195,087.03 | 634,593,550.58 | -19.92% | | **Total Assets** | **2,483,178,133.87** | **2,785,711,884.88** | **-10.86%** | | Accounts Payable | 401,161,549.98 | 514,894,470.86 | -22.09% | | **Total Liabilities** | **659,524,162.41** | **842,282,652.93** | **-21.69%** | | Total Equity Attributable to Parent Company Shareholders | 1,749,976,155.13 | 1,861,085,707.49 | -5.97% | | **Total Liabilities and Equity** | **2,483,178,133.87** | **2,785,711,884.88** | **-10.86%** | [Consolidated Income Statement](index=11&type=section&id=2.%20Consolidated%20Income%20Statement%20Year-to-Date) For the first three quarters of 2022, total operating revenue was RMB 466 million, down 20.50% year-on-year; operating profit turned from a RMB 23 million profit to a RMB 116 million loss due to RMB 46.88 million in asset impairment losses and RMB 18.62 million in credit impairment losses, resulting in a net loss attributable to parent company shareholders of RMB 111 million, a 959.46% decrease Key Items from Consolidated Income Statement (Year-to-Date, Unit: RMB) | Item | Current Period Amount | Prior Period Amount | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 466,457,969.37 | 586,724,314.55 | -20.50% | | Total Operating Costs | 531,132,169.51 | 590,066,527.09 | -10.00% | | Credit Impairment Losses | -18,621,185.77 | 8,202,586.69 | -327.02% | | Asset Impairment Losses | -46,884,312.14 | 0.00 | Not Applicable | | Operating Profit | -116,227,164.05 | 22,997,305.50 | -605.40% | | **Net Profit Attributable to Parent Company Shareholders** | **-111,109,552.36** | **12,927,862.37** | **-959.46%** | [Consolidated Cash Flow Statement](index=13&type=section&id=3.%20Consolidated%20Cash%20Flow%20Statement%20Year-to-Date) For the first three quarters of 2022, net cash flow from operating activities was -RMB 125 million, an improvement from the prior year; net cash flow from investing activities was -RMB 81 million due to structured deposit purchases; net cash flow from financing activities turned positive at RMB 4.35 million; and the period-end cash and cash equivalents balance was RMB 516 million Key Items from Consolidated Cash Flow Statement (Year-to-Date, Unit: RMB) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -125,320,860.89 | -262,320,916.16 | | Net Cash Flow from Investing Activities | -81,180,356.62 | 43,658,813.40 | | Net Cash Flow from Financing Activities | 4,351,048.25 | -31,083,789.31 | | **Net Increase in Cash and Cash Equivalents** | **-202,145,322.73** | **-249,745,892.07** | | **Cash and Cash Equivalents at End of Period** | **516,454,260.30** | **554,629,091.98** | [Audit Report](index=15&type=section&id=(II)%20Audit%20Report) The company's 2022 third-quarter report is unaudited - The company's third-quarter report is unaudited[33](index=33&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2022 was ¥328,695,696.72, a decrease of 9.01% compared to ¥361,227,627.39 in the same period last year[21]. - The net loss attributable to shareholders was ¥81,939,197.37, representing a significant decline of 1,371.55% from a profit of ¥6,444,063.25 in the previous year[21]. - Basic and diluted earnings per share were both -¥0.1997, a decrease of 1,380.13% from ¥0.0156 in the previous year[21]. - The total profit was CNY -88,949,750.48, representing a decline of 789.65% year-on-year[32]. - The company's total comprehensive income for the first half of 2022 was CNY 26,836,700.76, compared to CNY 6,736,093.61 in the same period of 2021, marking a growth of approximately 298%[177]. Cash Flow and Assets - The net cash flow from operating activities improved to -¥57,809,475.49, a 76.89% increase compared to -¥250,106,394.91 in the same period last year[21]. - Total assets at the end of the reporting period were ¥2,519,222,687.79, down 9.57% from ¥2,785,711,884.88 at the end of the previous year[21]. - Cash and cash equivalents decreased to ¥537,604,100.53 from ¥748,675,161.18, representing a decrease of about 28.19%[163]. - The company's total assets decreased to CNY 2,209,465,474.63 from CNY 2,253,267,698.18, reflecting a reduction in both current and non-current assets[169]. Revenue Breakdown - Revenue from the highway sector fell by 19.34% to ¥191,255,955.35, accounting for 58.19% of total revenue[54]. - Revenue from system integration dropped by 20.15% to ¥213,458,312.18, with a gross margin of 13.48%[57]. - Revenue from urban intelligent transportation decreased by 12.91% year-on-year, while gross margin increased by 9.85% due to the settlement of high-quality projects[60]. - Revenue from smart security increased by 81.35% year-on-year, driven by the increase in geological disaster security project settlements[60]. Strategic Focus and Development - The company is focusing on smart transportation and smart city sectors, aligning with the "14th Five-Year Plan" and exploring new business models[32]. - The company is actively developing integrated solutions for smart cities, including projects in Anhui and Chongqing[31]. - The "14th Five-Year Plan" emphasizes the acceleration of smart transportation development, which is expected to drive future growth opportunities for the company[36]. - The company aims to leverage the "14th Five-Year Plan" to accelerate the construction of a strong transportation nation, focusing on smart transportation and utilizing technologies such as 5G, cloud computing, big data, and artificial intelligence[38]. Operational Risks and Management - The company faced various operational risks, which are detailed in the report, along with corresponding mitigation strategies[4]. - The company emphasizes the importance of understanding the differences between plans, forecasts, and commitments in its future operational outlook[4]. - Increased market competition has pressured profit margins, leading to a decline in gross profit margins[87]. - The company is addressing risks related to the suspension of important industry qualifications, which could impact business operations[88]. Governance and Compliance - The company has maintained a stable control structure following changes in its major shareholder and actual controller, ensuring governance stability[98]. - The company guarantees the independence of its management and financial personnel, ensuring no conflicts of interest with its controlling entities[103]. - The company has established an independent financial department and accounting system[104]. - The company received a regulatory correction order from the Anhui Securities Regulatory Bureau on April 14, 2022, requiring it to rectify issues identified during inspections[114]. Shareholder Information - The total number of shares before the change was 410,245,949, with 6.67% being restricted shares and 93.33% being unrestricted shares[143]. - The largest shareholder, Tibet Jingyuan Enterprise Management Co., Ltd., holds 19.97% of shares, totaling 81,927,654 shares[149]. - The company’s board received resignation reports from two directors, resulting in a 100% lock-up of their shares for 6 months post-resignation[144]. - The new controlling shareholder is Tibet Jingyuan Enterprise Management Co., Ltd., effective from February 28, 2022[153]. Legal Matters - The company is involved in several lawsuits, with amounts at stake including 2,500,000 CNY and 3,000,000 CNY for contract disputes[112]. - The company has initiated lawsuits against two companies regarding unpaid amounts totaling 5,600 million related to the Ankang Big Data Industrial Park project[138]. - The company has a total of 8 other lawsuits involving its subsidiaries, with no significant impact reported[112]. Employee and Social Responsibility - The company emphasizes social responsibility, adhering to principles of fairness, integrity, and environmental protection, aiming for a win-win outcome for culture, customers, employees, shareholders, and the environment[98]. - The company has a robust employee training program, focusing on enhancing employee recognition and belonging, with various training sessions held during the reporting period[99]. - The company actively organized employee participation in COVID-19 prevention efforts during local outbreaks, demonstrating its commitment to community support[100].

Financial Performance - The company's operating revenue for 2021 was ¥1,007,263,586.90, a decrease of 36.09% compared to ¥1,575,948,973.29 in 2020[19]. - The net profit attributable to shareholders of the listed company was -¥90,379,690.39 in 2021, an improvement of 53.73% from -¥195,323,003.92 in 2020[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -105,736,833.65 CNY, a 49.41% improvement from -208,995,555.41 CNY in the previous year[21]. - The net cash flow from operating activities was -78,968,625.25 CNY, a decline of 202.41% compared to 77,110,839.78 CNY in the previous year[21]. - The basic and diluted earnings per share were both -0.2195 CNY, showing a 53.69% improvement from -0.4740 CNY in the previous year[21]. - Total assets decreased by 2.00% to 2,785,711,884.88 CNY from 2,842,665,306.97 CNY at the end of the previous year[21]. - The net assets attributable to shareholders decreased by 5.06% to 1,861,085,707.49 CNY from 1,960,378,815.48 CNY at the end of the previous year[21]. - The total profit was -¥89,456,591.84, an increase of 50.67% year-on-year[40]. - The company reported a net loss of -14,407,324.64 CNY in Q4 2021, compared to a profit of 20,851,387.89 CNY in Q4 2020[26]. Business Strategy and Development - The company plans not to distribute cash dividends, issue bonus shares, or increase share capital from reserves[5]. - The company plans to strengthen its core competitiveness through R&D innovation in response to the competitive market environment driven by national policies and digital transformation opportunities[32]. - The company aims to capture significant opportunities in the digital transformation of the transportation sector, particularly in intelligent transportation systems[32]. - The company is actively exploring new business models and commercial strategies to support its transformation towards smart transportation and smart cities[40]. - The company has signed commercial cooperation agreements with Huawei and ZTE Industrial Fund to enhance smart port capabilities[39]. - The company is focusing on the development of smart ports, integrating emerging technologies like AI and big data to improve operational efficiency[38]. - The company has expanded its smart highway network across over 20 provinces in China, enhancing its national strategy[41]. - The company is developing a comprehensive smart port solution that includes a big data platform for port management and decision-making[42]. - The company has established partnerships with major port enterprises to meet the information technology needs along the Belt and Road Initiative[43]. R&D and Innovation - The company emphasizes technology innovation and has multiple copyrights and patents, along with various industry certifications[49]. - The company aims to integrate existing technologies with big data, cloud computing, and artificial intelligence to innovate its business structure and model[51]. - The company is focusing on the development of a smart highway system, integrating 5G, IoT, big data, and AI technologies to enhance operational efficiency and reduce costs[66]. - The research on the intelligent networked highway ATC system aims to achieve unmanned toll stations, improving operational reliability and efficiency while lowering costs[66]. - The company is developing a highway digital health monitoring system to support unmanned operations and enhance data perception and analysis capabilities[66]. - The smart highway construction is positioned as a key trend, with significant investments in new services and technologies to strengthen the company's competitive edge[66]. - The company is enhancing its existing software and modules to reduce implementation costs and improve product quality, targeting a reduction in labor and time costs[67]. - The intelligent container terminal operating system is designed to automate operations, with a focus on smart planning and real-time monitoring, expected to drive significant economic benefits[67]. - The intelligent cargo handling system is being upgraded to improve recognition reliability and operational efficiency, with a strong market demand anticipated in the next 3 to 5 years[67]. Governance and Management - The company is currently under the control of Tibet Jingyuan Enterprise Management Co., Ltd., which holds a 19.97% stake[18]. - The company has not made any adjustments or restatements to previous years' accounting data[19]. - The company’s financial report has been verified by the accounting firm Asia-Pacific (Group) CPA[19]. - The company maintains complete independence in business, assets, personnel, finance, and institutions, with no controlling shareholders or actual controllers[122]. - The company has a fully independent employee team, with senior management exclusively working for the company and not holding positions in controlling shareholders' entities[123]. - The company has a clear and independent asset ownership structure, with no misuse of assets by management or shareholders[125]. - The company operates an independent financial management system, adhering to accounting regulations and maintaining separate bank accounts[126]. - The company has implemented a robust governance structure that aligns with regulatory requirements, ensuring no significant discrepancies exist[120]. - The company has been proactive in addressing compliance issues and has taken steps to rectify past financial irregularities[118]. Shareholder Relations and Proposals - The company received regulatory letters from the Shenzhen Stock Exchange regarding improper use of raised funds for cash management and financial assistance, leading to corrective actions and disclosures[118]. - The company held multiple shareholder meetings during the reporting period, with participation rates of 83.64%, 69.63%, and 57.65% for various meetings[128]. - The company is navigating complex shareholder dynamics that could influence its strategic direction and operational effectiveness[157]. - The board's discussions highlight the ongoing challenges in balancing shareholder interests with effective corporate governance[157]. - The company emphasized the importance of maintaining management stability to protect shareholder value and market perception[157]. - The company is committed to protecting its interests and those of all shareholders against what it perceives as abusive shareholder rights[159]. - The company is facing significant governance challenges due to shareholder proposals that may disrupt operational stability and signal management instability to the market[160]. - The board has expressed concerns regarding the legitimacy of shareholder proposals from Tibet Jingyuan, citing potential violations of company regulations and the impact on shareholder interests[160]. Financial Management and Compliance - The company reported a significant issue with the management and use of raised funds, indicating potential losses due to non-compliance with approval procedures[179]. - The company plans to utilize surplus raised funds to permanently supplement working capital, amounting to 5,600,000 CNY[178]. - The company has faced criticism regarding the external borrowing of funds, which violated approval procedures and highlighted deficiencies in internal controls[179]. - The company is undergoing a special audit to ensure the safety of funds and compliance with regulations[178]. - The company has acknowledged the need for further verification of the authenticity of transactions involving its subsidiaries[179]. - The company is actively working on improving its internal control systems to prevent future issues related to fund management[179]. - The company has reported that some of its investment projects have been terminated, leading to a reassessment of fund allocation[178]. Employee Management and Compensation - The total number of employees at the end of the reporting period was 1,327, with 548 in the parent company and 779 in major subsidiaries[184]. - The total employee compensation during the reporting period was ¥69,301,983.61, accounting for 9.02% of the total company costs[186]. - The proportion of core technical personnel was 35.87%, with their compensation accounting for 38.79% of the total[186]. - The company has established a competitive compensation and benefits system, reflecting efficiency and fairness principles[186]. - The company has implemented a dynamic salary adjustment and management system to motivate employees[186]. - The company has developed a comprehensive training system to enhance employee skills and career development[188]. Future Outlook and Strategic Initiatives - The company plans to continue its strategic initiatives aimed at market expansion and technological innovation in the upcoming fiscal year[132]. - The company aims to enhance operational efficiency and promote organic business growth by integrating internal products and external market resources[103]. - The company is committed to deepening its presence in smart transportation and smart city sectors, expanding its marketing service network across the country and internationally[103]. - The company plans to hold the second extraordinary general meeting on April 7, 2021, to review the proposal from Tibet Jingyuan Enterprise Management Co., Ltd. regarding amendments to the company's articles of association[169].