Financial Performance - The company's operating revenue for the first half of 2020 was ¥3,384,248,804.19, representing a 1.74% increase compared to ¥3,326,532,778.67 in the same period last year[27]. - The net profit attributable to shareholders for the first half of 2020 was ¥65,674,579.71, a decrease of 57.69% from ¥155,208,377.42 in the previous year[27]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥46,988,360.88, down 59.69% from ¥116,573,390.06 year-on-year[27]. - Basic earnings per share for the first half of 2020 were ¥0.1126, down 57.69% from ¥0.2661 in the previous year[27]. - The comprehensive gross profit margin declined due to an uneven product sales structure influenced by the pandemic[45]. - The total profit for the first half of 2020 was approximately ¥11.28 million, down from ¥147.03 million in the same period of 2019, a decline of 92.34%[183]. - The net profit of the subsidiary Ruijie Networks Co., Ltd. was a loss of CNY 103,465,802.59, contributing to a negative impact on the company's overall net profit[78]. Cash Flow and Assets - The net cash flow from operating activities was -¥943,123,656.42, a decline of 27.86% compared to -¥737,612,839.74 in the same period last year[27]. - Cash and cash equivalents decreased by 8.19% to CNY 1,496,285,783.31, compared to CNY 2,054,034,852.46 in the previous year[62]. - The company's total assets at the end of the reporting period were ¥8,017,422,868.80, an increase of 4.79% from ¥7,650,633,765.03 at the end of the previous year[27]. - The company's current assets totaled CNY 6,069,468,100.53, compared to CNY 5,978,336,958.89 at the end of 2019, indicating an increase of about 1.5%[163]. - The total liabilities increased to CNY 4,500,000,000.00, reflecting a growth of approximately 10% compared to the previous period[161]. Investments and Research - Research and development investment rose by 2.23% to ¥503,239,381.80, up from ¥492,283,369.42 year-on-year[51]. - The company applied for 69 patents in the first half of 2020, including 48 invention patents, enhancing its technological leadership with a total of 1,990 patents by the end of the reporting period[41]. - The company is increasing investment in research and development to keep pace with technological advancements and meet evolving customer demands[82]. Market and Sales - Revenue from enterprise-level network equipment increased by 19.69% to ¥1,886,481,348.63, compared to ¥1,576,132,837.91 in the previous year[56]. - Revenue from international markets increased by 28.76% to ¥710,386,891.86, up from ¥551,714,315.74 year-on-year[57]. - The company experienced a slight increase in sales revenue due to the growth in data center switches and video conferencing systems during the pandemic[45]. Risks and Challenges - The company is facing risks from macroeconomic fluctuations, particularly due to the impact of COVID-19 and ongoing US-China trade tensions, which may create uncertainties for future development[81]. - The company acknowledges the risk of intensified competition in the industry and aims to maintain its market position through differentiated industry application solutions[82]. - The company is dependent on external suppliers for key components, such as chips from Broadcom and Qualcomm, which poses a supply chain risk[83]. Corporate Actions - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[8]. - The company has completed the acquisition of 45% equity in StarNet Wisdom, with the transfer of ownership finalized on July 31, 2020[121]. - The company is in the process of spinning off its subsidiary, Ruijie Networks, for an initial public offering on the Shenzhen Stock Exchange[121].

Financial Performance - The company's operating revenue for Q1 2017 was ¥796,251,383.89, representing an increase of 11.62% compared to ¥713,367,453.87 in the same period last year[8]. - The net profit attributable to shareholders of the listed company was -¥19,108,431.90, a decline of 88.93% from -¥10,114,103.60 year-on-year[8]. - The basic earnings per share for the reporting period was -¥0.0354, reflecting an increase in loss of 88.30% compared to -¥0.0188 in the same period last year[8]. - The net profit attributable to shareholders for the first half of 2017 is expected to be between 50.09 million and 57.79 million RMB, representing a growth of 30% to 50% compared to the same period in 2016[50]. - The company's main products continue to see steady sales growth, contributing to an increase in operating revenue compared to the previous year[50]. Cash Flow and Liquidity - The net cash flow from operating activities was -¥607,676,559.48, which is a 6.93% increase in outflow compared to -¥568,287,490.26 in the previous year[8]. - Cash and cash equivalents decreased by 44.55% to ¥1,109,518,818.31 from ¥2,001,011,862.33 due to a reduction in bank deposits[20]. - The company reported a net increase in cash and cash equivalents of -847,547,807.71 yuan, compared to -1,096,290,814.13 yuan in the previous period, indicating a reduction in cash depletion[96]. - Cash and cash equivalents at the end of the period stood at 1,036,999,338.01 yuan, up from 670,638,823.69 yuan in the previous period, showing a recovery in liquidity[96]. - The company’s cash outflow for operating activities decreased to 352,163,274.02 yuan from 430,726,080.96 yuan, indicating improved operational efficiency[101]. Assets and Liabilities - The total assets at the end of the reporting period were ¥5,034,821,059.59, down 12.43% from ¥5,749,733,120.05 at the end of the previous year[8]. - The company's total liabilities decreased to CNY 1,369,696,863.51 from CNY 2,049,124,253.06, indicating a reduction of approximately 33%[66]. - The equity attributable to shareholders of the parent company was CNY 2,864,191,550.32, a decrease from CNY 2,883,080,508.01[65]. - Deferred income tax assets increased by 33.14% to ¥67,592,203.55 from ¥50,769,382.08 due to an increase in unamortized losses[20]. Shareholder Information - The company reported a total of 35,259 shareholders at the end of the reporting period[12]. - The largest shareholder, Fujian Electronic Information Group Co., Ltd., held 28.00% of the shares, totaling 150,931,950 shares[13]. - The company did not engage in any repurchase transactions among the top 10 shareholders during the reporting period[17]. Investment Activities - Investment activities generated a net cash flow of -¥238,717,791.37, an improvement of 50.85% compared to -¥485,731,278.94 in the previous year, attributed to the recovery of wealth management products[20]. - The company received government subsidies amounting to ¥16,751,030.00 during the reporting period[8]. - The company received 150,000,000.00 yuan related to investment activities, indicating a significant inflow from other investment-related activities[101]. - Cash paid for other investment activities was 427,000,000.00 yuan, compared to 260,000,000.00 yuan in the previous period, reflecting increased investment expenditures[101]. Operational Efficiency - Accounts receivable notes decreased by 79.89% to ¥32,320,779.22 from ¥160,701,964.10 as a result of the collection of matured notes[20]. - Employee compensation payable decreased by 76.17% to ¥94,704,043.13 from ¥397,376,461.74 as performance bonuses from the previous year were paid out[20]. - The company incurred sales expenses of ¥14,082,983.91, a decrease of 19.3% from ¥17,517,422.77 in the previous period[85]. - The company’s cash flow from sales of goods and services increased to 196,383,030.01 yuan from 176,423,704.03 yuan, reflecting growth in revenue generation[97].

Financial Performance - The company's operating revenue for 2017 was ¥7,705,135,612.62, representing a 35.47% increase compared to ¥5,687,658,283.03 in 2016[23]. - The net profit attributable to shareholders for 2017 was ¥470,238,579.87, a 47.20% increase from ¥319,458,028.13 in 2016[23]. - The net profit after deducting non-recurring gains and losses was ¥396,617,375.38, up 40.01% from ¥283,279,576.04 in 2016[23]. - The company's cash flow from operating activities decreased by 48.99% to ¥277,255,509.05 from ¥543,504,943.69 in 2016[23]. - The total assets at the end of 2017 were ¥6,439,912,654.33, a 12.00% increase from ¥5,749,733,120.05 at the end of 2016[23]. - The company's basic earnings per share for 2017 was ¥0.8491, reflecting a 43.28% increase from ¥0.5926 in 2016[23]. - The company reported a significant increase in accounts receivable, which grew by 51.88% due to increased sales revenue[36]. - The company's inventory increased by 31.69% as a result of higher sales volume and preparations for the Spring Festival[36]. - The company achieved a net profit of no less than RMB 45 million, RMB 55 million, and RMB 65 million for the years 2015, 2016, and 2017 respectively, as per the performance commitment[105]. - The company reported a net profit attributable to shareholders of 10,445.05 million yuan for the year 2017, after deducting non-recurring gains and losses[131]. Dividend Distribution - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares, based on a total of 583,280,278 shares[10]. - The cash dividend for 2016 was 1.00 CNY per 10 shares, amounting to 53,911,123.30 CNY (including tax), reflecting a payout ratio of 16.88% of the net profit attributable to shareholders[102]. - The company reported a profit distribution plan for the next three years (2015-2017), emphasizing the importance of reasonable returns to investors and maintaining continuity and stability in profit distribution[123]. - The company will prioritize cash dividends when conditions for cash distribution are met, with annual dividends generally being the norm unless significant investment plans arise[125]. - The company stated that cash dividends will only be distributed if the distributable profit for the year is positive and there are no major investment plans or cash expenditures exceeding 50 million RMB[124]. - The company has committed to maintaining a minimum cash dividend ratio of 40% if there are significant capital expenditure arrangements during its mature development phase[126]. Research and Development - The company emphasizes the importance of continuous design and development of differentiated products to maintain profitability in a competitive market[8]. - The company's R&D investment totaled RMB 998 million, accounting for 12.95% of the annual revenue, with 298 patents applied for during the year[38]. - Research and development expenses amounted to ¥997.82 million, representing a 26.52% increase from the previous year, accounting for 12.95% of total operating revenue[67]. - The company emphasizes the importance of continuous R&D investment to address the challenges of rapid technological advancements and product updates in the industry[92]. - The company aims to enhance its competitive edge by accelerating R&D and innovation in industry-specific solutions to meet diverse customer needs[93]. - The company is investing 10 million in R&D for new technologies aimed at improving product efficiency and reducing costs by 10%[110]. Market Position and Competition - The company faces risks related to high customer concentration and strong seasonality, particularly in the fourth quarter[10]. - The company reported a significant reliance on sectors such as telecommunications, finance, and government for its product sales[10]. - The company acknowledges the potential for intensified competition in its niche markets despite having certain competitive advantages[8]. - The company maintained a market share of 75.7% in the virtualized computer classroom solutions market for three consecutive years[42]. - The cloud desktop and smart terminal segment captured a market share of 43.6%, leading the Chinese market[43]. - The company aims to maintain a leading position in mPOS sales and expand its market presence among major banks and third-party payment operators[89]. Strategic Initiatives and Future Outlook - The company is focusing on innovation and has introduced various smart solutions, enhancing its competitive edge in the market[33]. - Future outlook remains positive with expectations of continued revenue growth driven by market expansion and technological advancements[79]. - The company plans to enhance its operational efficiency and increase the output per capita by refining its internal processes and management practices[88]. - The company intends to expand its cloud computing products in the education sector and explore opportunities in the insurance industry, particularly in the financial sector[89]. - The company plans to strengthen its smart communication business by focusing on integrated communication and video solutions, targeting operators and real estate developers[90]. - The company is actively involved in the development of new products and technologies, although specific details were not disclosed in the report[79]. Shareholder and Governance Matters - The company has successfully maintained a stable profit distribution policy over the past three years, ensuring the protection of minority shareholders' rights[98]. - The company has committed to avoiding competition with its subsidiary, ensuring no direct or indirect involvement in competing businesses[106]. - The company has established a framework for reporting any potential business opportunities that may conflict with its interests[107]. - The company has a commitment to avoid any related party transactions that could harm the interests of the listed company[120]. - The company will not engage in related party transactions that could compromise its independence in market activities[119]. - The company has established a structured approach to governance, with various committees overseeing different aspects of its operations and strategic initiatives[200]. Acquisitions and Investments - The company completed the acquisition of a 22% stake in Fujian Sichuang Software Co., Ltd. for 16.5 million yuan, which is expected to enhance its market position[82]. - The company completed the transfer of 22% equity in Sichuan Software on December 31, 2017, resulting in a reduction of 6 units in the consolidated balance sheet scope compared to the previous period[138]. - The company has established a wholly-owned subsidiary in Turkey with an investment of approximately RMB 71.50 million[165]. - A wholly-owned subsidiary was also established in Malaysia with an investment of approximately RMB 320,000[165]. - The company set up a wholly-owned subsidiary in the United States with an investment of USD 500,000[166]. - The company received approval from the China Securities Regulatory Commission for the issuance of shares to acquire assets[171]. Operational Challenges - The company faces risks from macroeconomic policies and economic slowdown, which may impact product markets, and aims to maintain competitiveness through innovative solutions[91]. - The company has not reported any changes in its main business operations since its listing[21]. - The company has not engaged in any major litigation or arbitration matters during the reporting period[141]. - The company has not implemented any stock incentive plans or employee shareholding plans during the reporting period[143]. - The company has not conducted any major related party transactions during the reporting period[144].

Financial Performance - The company reported a revenue of 1.5 billion RMB for the first half of 2022, representing a year-on-year increase of 15%[19]. - The net profit attributable to shareholders was 200 million RMB, up 10% compared to the same period last year[19]. - The company's operating revenue for the first half of 2022 was CNY 6,695,559,531.25, representing a 26.65% increase compared to the same period last year[38]. - The net profit attributable to shareholders for the same period was CNY 311,601,299.15, reflecting a growth of 25.44% year-on-year[38]. - The total revenue for the reporting period reached ¥6,695,559,531.2, representing a year-on-year increase of 26.65% compared to ¥5,286,800,142.9 in the same period last year[53]. - The total profit for the first half of 2022 was approximately ¥433.87 million, compared to ¥314.96 million in the same period of 2021, marking an increase of 37.8%[172]. - The company's basic earnings per share for the first half of 2022 were ¥0.5342, up from ¥0.4259 in the first half of 2021, representing a growth of 25.5%[173]. Research and Development - The company plans to invest 300 million RMB in R&D for new products and technologies in the next fiscal year[19]. - The company's R&D investment led to the application of 107 patents in the first half of 2022, including 76 invention patents[39]. - Research and development investment increased by 37.58% to ¥928,020,495.04 from ¥674,538,146.13 in the previous year, reflecting the company's commitment to steady growth[43]. - The company aims to increase R&D investment to keep pace with technological advancements and meet evolving customer demands[78]. Market Expansion - Future outlook indicates a projected revenue growth of 20% for the second half of 2022, driven by market expansion and new product launches[19]. - The company is focusing on expanding its market presence in Southeast Asia, targeting a 30% increase in sales in that region[19]. - Revenue from international markets grew by 67.41% year-on-year, amounting to ¥987,482,447.92, which is 14.75% of total revenue[53]. Financial Position - The total assets at the end of the reporting period were CNY 13,177,667,848.24, an increase of 18.47% compared to the end of the previous year[38]. - The company's current assets totaled CNY 10,248,312,031.13, up from CNY 8,502,412,204.31 at the start of the year, indicating a growth of approximately 20.5%[156]. - The total liabilities reached CNY 8,248,311,000.00, reflecting a significant rise from the previous period[159]. - The total equity attributable to shareholders reached ¥4,833,269,261.60 as of June 30, 2022, compared to ¥4,431,056,413.42 at the beginning of the year, showing an increase of about 9.1%[168]. Cash Flow - The company reported a net cash flow from operating activities of -CNY 1,153,748,817.60, a decrease of 24.46% from the previous year[38]. - The company's operating cash flow for the first half of 2022 was -1,153,748,817.60 CNY, compared to -926,970,423.72 CNY in the same period of 2021, indicating a decline in cash flow[182]. - Cash inflow from financing activities was 2,278,050,931.96 CNY, significantly higher than 886,900,000.00 CNY in the same period last year, marking an increase of approximately 157%[185]. Risks and Challenges - The management highlighted potential risks including market competition and supply chain disruptions, with strategies in place to mitigate these risks[4]. - The company reported a risk of macroeconomic fluctuations due to the ongoing COVID-19 pandemic, which may impact future development[76]. - The company faces risks related to high customer concentration and seasonality in sales, particularly in the fourth quarter[79]. - The company relies on external suppliers for key components, which poses a risk to its supply chain stability[79]. Corporate Governance - The company has not distributed cash dividends or conducted any capital increase through public reserves for the reporting period[84]. - The company has not implemented any employee stock ownership plans or other incentive measures during the reporting period[85]. - The company has maintained a commitment to protecting the rights and interests of shareholders and creditors by adhering to relevant laws and regulations[90]. - The company reported no significant litigation or arbitration matters during the reporting period[101]. Environmental and Social Responsibility - The company has implemented advanced environmental management systems and established a series of regulations to achieve harmony between the enterprise and nature[93]. - The company has achieved compliance with wastewater discharge standards, with monitoring results meeting the Grade 3 standard of the Comprehensive Wastewater Discharge Standard (GB8978-1996) at both Jinshan and Haixi parks[1]. - The company has actively engaged in energy-saving and emission-reduction activities, emphasizing the construction of a resource-saving and environmentally friendly enterprise[91].

Financial Performance - The company's operating revenue for Q1 2022 was ¥2,950,478,580.66, representing a 53.72% increase compared to ¥1,919,383,355.43 in the same period last year[7] - Net profit attributable to shareholders was ¥120,092,937.30, a significant increase of 202.88% from ¥39,650,413.22 year-on-year[7] - The net profit after deducting non-recurring gains and losses reached ¥99,465,789.04, marking a 462.21% increase compared to ¥17,691,978.52 in the previous year[7] - Basic earnings per share were ¥0.2059, up 202.79% from ¥0.0680 in the same quarter last year[7] - Net profit for the current period was ¥185,883,857.48, a substantial rise from ¥37,786,342.13 in the previous period, reflecting an increase of approximately 391.5%[37] - Total comprehensive income for the period was 184,797,076.48, compared to 36,968,072.42 in the previous period, showing a significant increase[41] Cash Flow - The company's cash flow from operating activities showed a net outflow of ¥1,134,789,422.79, which is a 3.88% increase in outflow compared to ¥1,092,423,979.22 last year[7] - Cash inflow from operating activities totaled 3,511,841,747.30, compared to 2,636,447,613.62 in the previous period, reflecting a robust increase in cash generation[42] - The net cash outflow from operating activities was -1,134,789,422.79, slightly worse than -1,092,423,979.22 in the previous period, indicating ongoing cash flow challenges[45] - Cash inflow from financing activities was 1,094,353,812.00, compared to 689,000,000.00 in the previous period, showing increased financing activity[48] - The net cash flow from financing activities was 935,550,455.35, up from 637,562,752.89 in the previous period, indicating improved capital raising efforts[48] - The ending cash and cash equivalents balance was 1,690,751,097.17, compared to 1,420,378,004.18 in the previous period, reflecting a stronger liquidity position[48] Assets and Liabilities - Total assets at the end of the reporting period were ¥11,643,141,356.56, reflecting a 4.68% increase from ¥11,122,958,343.17 at the end of the previous year[7] - Total current assets amounted to ¥8,844,675,431.50, up from ¥8,502,412,204.31 at the beginning of the year[27] - Total liabilities rose to ¥5,789,570,737.52, compared to ¥5,470,682,227.01 in the previous period, indicating an increase of about 5.8%[33] Research and Development - The company's R&D expenses for the quarter were ¥431,587,963.47, an increase of 41.85% from ¥304,251,298.80 in the same period last year[15] - Research and development expenses were ¥431,587,963.47, up from ¥304,251,298.80, marking an increase of around 41.8%[37] Equity and Shareholder Information - The company's total equity attributable to shareholders increased to ¥4,816,520,498.92, a 2.64% rise from ¥4,692,754,421.68 at the end of the previous year[7] - The total number of common shareholders at the end of the reporting period was 75,419, with the largest shareholder holding 26.50% of the shares[19] Borrowings and Financing - The company reported a significant increase in short-term borrowings, which rose to ¥1,376,507,162.88, a 224.23% increase from ¥424,540,216.46 at the beginning of the year[15] - The increase in short-term borrowings to ¥1,376,507,162.88 from ¥424,540,216.46 indicates a strategic move to leverage financing for operational needs[33] Government Support and Taxation - The company received government subsidies amounting to ¥28,045,676.57, primarily from various government support programs[10] - Income tax expenses rose by ¥29,882,429.42, an increase of 74.11% year-on-year, mainly due to higher total profit leading to increased tax provisions[18] - The company received tax refunds amounting to 119,361,456.02, compared to 74,676,995.26 in the previous period, indicating improved tax recovery[45] Other Income and Expenses - Credit impairment losses decreased by ¥5,140,236.20, a reduction of 94.11% compared to the previous year, attributed to lower bad debt provisions for receivables[18] - Non-operating expenses decreased by ¥623,107.79, a decline of 52.01% from the previous year, due to reduced losses from fixed asset scrapping and donation expenses[18] - Asset disposal income surged to ¥1,473,477.85, marking an increase of 11,826.68% year-on-year, primarily from gains on the disposal of right-of-use assets[18] - Fair value change income increased to ¥2,024,796.69, reflecting a significant rise compared to the same period last year due to the appreciation of other non-current financial assets[18]

Financial Performance - The company's operating revenue for 2021 was ¥13,548,675,867.07, representing a 31.49% increase compared to ¥10,304,234,309.56 in 2020[30]. - The net profit attributable to shareholders for 2021 was ¥550,406,616.52, up 27.59% from ¥431,379,738.06 in 2020[30]. - The net profit after deducting non-recurring gains and losses was ¥495,952,988.82, a 23.65% increase from ¥401,082,759.58 in 2020[30]. - The company's total assets at the end of 2021 were ¥11,122,958,343.17, reflecting a 27.62% increase from ¥8,715,629,599.90 at the end of 2020[30]. - The basic earnings per share for 2021 was ¥0.9436, which is a 27.58% increase compared to ¥0.7396 in 2020[30]. - The net cash flow from operating activities for 2021 was ¥449,886,057.69, down 39.21% from ¥740,063,570.02 in 2020[30]. - The company received government subsidies amounting to ¥92,576,177.83 in 2021, compared to ¥59,700,526.73 in 2020[36]. - The weighted average return on equity for 2021 was 12.39%, an increase of 2.20% from 10.19% in 2020[30]. - The company reported a net profit of ¥67,558,001.09 in Q4 2021, with total revenue for the quarter reaching ¥4,357,489,807.79[35]. - The company's total revenue for 2021 reached RMB 13,548,675,867.07, representing a year-on-year growth of 31.49%[52]. - The operating profit for 2021 was RMB 665,991,634.28, an increase of 17.25% compared to the previous year[52]. Research and Development - The company has a strong focus on R&D, with significant investments planned for the development of new technologies and products[19]. - The company invested RMB 1,788,921,154.04 in R&D, accounting for 13.20% of its annual revenue[50]. - The company applied for a total of 321 patents in 2021, including 273 invention patents[50]. - The number of R&D personnel increased to 4,886 in 2021, representing a growth of 10.82% from 4,409 in 2020[90]. - The company reported a total R&D investment of ¥1,788,921,154.04 in 2021, an increase of 31.15% compared to ¥1,363,999,882.58 in 2020[90]. - R&D investment accounted for 13.20% of the company's operating revenue in 2021, slightly down from 13.24% in 2020[90]. Market Position and Strategy - The company is focused on integrating AI and IoT technologies, which are expected to drive innovation in its product offerings[19]. - The company plans to expand its market presence through strategic partnerships and potential acquisitions in the technology sector[19]. - The company is actively developing new products in the 5G and AIoT domains to enhance its competitive edge[19]. - The company achieved the number one market share in desktop cloud terminal VDI and thin client in China[45]. - The company maintained a leading position in the Chinese desktop cloud market, with a VDI market share ranking first in China and thin client market share ranking first in the Asia-Pacific region according to IDC data[57]. - The company is focusing on expanding its overseas market presence and optimizing customer structure[52]. - The company emphasizes a strategy of innovation-driven development, enhancing its core competitiveness in smart technology[47]. Operational Efficiency and Costs - The total operating cost for 2021 was CNY 8,927,895,944.95, representing a year-on-year increase of 33.18% from CNY 6,703,799,217.14 in 2020[70]. - Raw materials accounted for 94.81% of the operating costs in 2021, amounting to CNY 8,465,315,576.94, up from 94.21% in 2020[70]. - R&D expenses increased by 30.43% to CNY 1,749,500,330.81 in 2021, compared to CNY 1,341,363,465.36 in 2020[79]. - The sales expenses for 2021 were CNY 1,864,012,522.29, reflecting a 30.89% increase from CNY 1,424,107,800.61 in 2020[79]. - The company’s top five customers accounted for 29.68% of total annual sales, with total sales amounting to CNY 4,021,255,223.84[75]. - The total procurement amount from the top five suppliers was CNY 4,602,701,201.25, representing 40.96% of the total annual procurement[78]. Risk Management - The company emphasizes the importance of addressing risks such as macroeconomic fluctuations, technology risks, and supply chain issues in its management discussion[7]. - The company plans to enhance its supply chain resilience by increasing raw material inventory and diversifying procurement channels to mitigate risks associated with core component supply[125]. - The company is addressing chip supply risks by increasing raw material procurement and developing backup chip solutions[152]. - The company faces risks from macroeconomic fluctuations and will adjust its operational strategies accordingly to mitigate these risks[122]. Governance and Transparency - The company is committed to maintaining transparency and accuracy in its financial reporting, as stated by its management team[6]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate communication of relevant information to investors[175]. - The company has established a performance evaluation and incentive mechanism to enhance operational efficiency and achieve business objectives[174]. - The company emphasizes investor relations management, with a designated secretary responsible for daily interactions and communications with investors[177]. - The company held 3 shareholder meetings during the reporting period, with all resolutions passed in accordance with legal regulations and the company's articles of association[170]. Future Outlook - The company has outlined a future outlook that includes a commitment to sustainable growth and innovation in communication technologies[19]. - The company plans to increase investment in new technology applications such as artificial intelligence, big data, and cloud computing in 2022[113]. - The company aims to achieve steady and sustainable growth in operating performance based on 2021 results[114]. - The company will focus on enhancing its market share in the smart network sector by launching competitive network devices and cloud desktop solutions[116]. - Future performance guidance was not explicitly detailed, but the management expressed optimism about market conditions and growth opportunities[197].

福建星网锐捷通讯股份有限公司 2021 年第三季度报告 证券简称：星网锐捷 证券代码：002396 福建星网锐捷通讯股份有限公司 2021 年第三季度报告 融合创新科技，构建智慧未来 2021 年 10 月 1 福建星网锐捷通讯股份有限公司 2021 年第三季度报告 □ 是 √ 否 证券代码：002396 证券简称：星网锐捷 公告编号：定 2021-004 福建星网锐捷通讯股份有限公司 2021 年第三季度报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、误导性陈述或重 大遗漏。 重要内容提示: 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、准确、完整，不存在 虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声明：保证季度报告 中财务信息的真实、准确、完整。 3.第三季度报告是否经过审计 □ 是 √ 否 一、主要财务数据 (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 | --- | --- | --- | --- | --- | |-------------- ...

Financial Performance - The company reported a total revenue of 1.2 billion RMB for the year 2019, representing a year-on-year growth of 15%[19] - The net profit attributable to shareholders was 150 million RMB, an increase of 10% compared to the previous year[19] - The company's operating revenue for 2019 was ¥9,265,767,751.41, representing a 1.47% increase from ¥9,131,571,813.18 in 2018[27] - The net profit attributable to shareholders for 2019 was ¥593,928,755.53, a 5.28% increase compared to ¥564,134,426.98 in 2018[27] - The net profit after deducting non-recurring gains and losses was ¥543,253,198.73, which is a 19.15% increase from ¥455,932,510.37 in 2018[27] - The net cash flow from operating activities increased by 28.39% to ¥763,057,151.38 in 2019 from ¥594,339,591.58 in 2018[27] - The total assets at the end of 2019 were ¥7,650,633,765.03, a 9.31% increase from ¥6,999,108,789.03 at the end of 2018[27] - The net assets attributable to shareholders increased by 14.91% to ¥4,226,728,082.73 at the end of 2019 from ¥3,678,190,629.71 at the end of 2018[27] - The company reported a basic earnings per share of ¥1.0183 for 2019, up 5.28% from ¥0.9672 in 2018[27] Market Expansion and Strategy - The company plans to distribute a cash dividend of 1.1 RMB per 10 shares, totaling approximately 64 million RMB[7] - The company is focusing on expanding its market presence in Southeast Asia, targeting a 25% increase in market share by 2021[19] - The management has set a revenue growth target of 20% for 2020, driven by new product launches and market expansion efforts[19] - The company aims to leverage historical opportunities and events to provide unique competitive solutions to meet customer needs[40] - The company is focused on expanding its market share in the cloud computing sector by developing tailored solutions for strategic clients[107] - The company aims to strengthen its position in the digital entertainment market by expanding its product offerings and targeting overseas markets[108] Product Development and Innovation - New product development includes the launch of a 5G communication solution, expected to contribute an additional 200 million RMB in revenue in 2020[19] - The company has initiated a strategic partnership with a leading technology firm to enhance its AI capabilities, aiming for a 30% improvement in operational efficiency[19] - The company’s R&D investment led to the application of 274 patents in 2019, including 232 invention patents, enhancing its technological advantage[46] - The company launched the first domestic Kunpeng desktop cloud solution, enhancing its competitive edge in the desktop cloud market[58] - The company is targeting a steady increase in sales of vehicle-mounted remote information terminals and plans to launch 5G communication modules[108] Financial Management and Investments - The company has identified risks related to supply chain disruptions and is implementing measures to mitigate these risks, including diversifying suppliers[7] - The company is exploring potential acquisitions to strengthen its product portfolio, with a budget of 500 million RMB allocated for this purpose[19] - The company reported a significant increase in cash and cash equivalents, with a net increase of 433,992,792.92 CNY compared to a decrease of 21,394,746.96 CNY in the previous year[81] - The company’s financial expenses decreased by 66.36%, from -15,002,218.61 CNY in 2018 to -5,046,736.61 CNY in 2019, due to fluctuations in the exchange rate[73] - The company has committed to distributing at least 10% of the distributable profits as cash dividends each year, after covering losses and allocating statutory reserves[182] Risk Management and Compliance - The company has identified risks from macroeconomic fluctuations and aims to enhance its internal innovation capabilities to mitigate these risks[109] - The company faces a risk of talent shortage due to rapid industry growth, leading to intense competition for high-end technical personnel[114] - The company has implemented competitive compensation policies and innovative reward systems to attract and retain innovative talent, maintaining a stable core technical team[114] - The company has made a commitment to avoid any form of asset or fund occupation by its subsidiaries, ensuring compliance with legal regulations[176] - The company has committed to strict adherence to related transaction agreements with the listed company, ensuring no undue benefits are sought[176] Shareholder Relations and Commitments - The cash dividend policy is designed to provide stable returns to investors, with a total cash dividend of CNY 64,160,830.58 distributed for the 2018 fiscal year[121] - The company has consistently adhered to its profit distribution policy as outlined in its three-year shareholder return plan (2018-2020)[121] - The cumulative net profit commitment for Fujian StarNet Ruijie Communication Co., Ltd. for the years 2017, 2018, and 2019 is not less than 367.5 million yuan[164] - The actual cumulative net profit of StarNet Ruijie must meet or exceed the commitment amount, with specific compensation methods detailed in the related transaction report[167] - The company has confirmed that all commitments made to minority shareholders have been fulfilled on time[182] Accounting and Financial Reporting - The company has implemented new financial instrument accounting standards starting from January 1, 2019, which includes changes in the classification and measurement of financial assets[192] - The new financial instrument standards replaced the "incurred loss" model with an "expected credit loss" model for financial assets measured at amortized cost[192] - The company has made adjustments to its financial statement formats in accordance with the Ministry of Finance's notification issued in April 2019[191] - The completion of performance commitments has no impact on goodwill impairment testing[187] - There were no changes in accounting estimates during the reporting period[194]

Financial Performance - The company's operating revenue for 2018 was ¥9,131,571,813.18, representing an increase of 18.51% compared to ¥7,705,135,612.62 in 2017[29]. - The net profit attributable to shareholders for 2018 was ¥564,134,426.98, a growth of 24.29% from ¥453,875,490.20 in 2017[29]. - The net cash flow from operating activities reached ¥594,339,591.58, showing a significant increase of 114.37% compared to ¥277,255,509.05 in 2017[29]. - The company achieved a basic earnings per share of ¥0.9672, up 18.02% from ¥0.8195 in the previous year[29]. - Total assets at the end of 2018 were ¥6,999,108,789.03, an increase of 8.68% from ¥6,439,912,654.33 at the end of 2017[29]. - The company's total revenue for 2018 reached RMB 9,131,571,813.18, representing an 18.51% increase compared to the previous year[56]. - Operating profit for 2018 was RMB 833,424,487.88, up 18.55% year-on-year[56]. - The net profit margin for 2018 was 11.37%, down from 19.28% in 2017[127]. - The total distributable profit for the year was reported at approximately ¥1.30 billion[128]. Research and Development - Research and development investment totaled RMB 1,079,000,000, accounting for 11.81% of the company's annual revenue[49]. - The company applied for 243 patents in 2018, including 212 invention patents, bringing the total number of patents to 1,740 (1,412 valid)[49]. - The company emphasizes the importance of R&D investment to address technological risks and product competition in the industry[114]. - The company is committed to maintaining a competitive edge by understanding industry application needs and accelerating R&D for differentiated solutions[117]. - Research and development expenses amounted to ¥1,078,762,277.58, an increase of 7.03% year-on-year, constituting 11.81% of operating revenue[82]. Market Position and Strategy - The company maintained a leading position in the communication industry, ranking 27th in the "2018 Top 100 Software Companies in China" list, and 1st in Fujian Province[43]. - The company focuses on providing integrated information solutions for enterprise-level clients, with a product strategy centered around smart solutions[42]. - The company is focused on developing differentiated products to meet varying customer demands across different industries[6]. - The company aims to leverage opportunities in 5G, artificial intelligence, big data, and the Internet of Things to enhance its overall solution capabilities[111]. - The company plans to strengthen its human resources policies to attract and retain high-end technical talent amid fierce competition[117]. Customer and Supplier Concentration - The company acknowledges a high customer concentration and seasonal sales patterns, particularly in the fourth quarter[6]. - The total sales amount from the top five customers reached ¥2,447,269,746.18, accounting for 26.80% of the annual sales[78]. - The total procurement amount from the top five suppliers was ¥2,334,145,826.73, representing 35.77% of the annual procurement[78]. Cash Dividends and Shareholder Returns - The company reported a profit distribution plan of 1.10 RMB per 10 shares, based on a total of 583,280,278 shares[9]. - The cash dividend for 2018 was set at ¥1.10 per 10 shares, with a total cash dividend amounting to ¥64.16 million, which is 100% of the distributable profit[128]. - The cash dividend distribution plan was approved by the board on March 27, 2019, indicating a structured approach to shareholder returns[128]. Risks and Challenges - The company emphasizes the risk of technology and product competition, highlighting the need for continuous innovation to maintain profitability[6]. - The company faces risks from macroeconomic policies and economic slowdown, which may impact product market performance[113]. - The company has committed to fulfilling its promises regarding avoiding competition and related transactions, ensuring compliance with regulatory requirements[131]. Operational Highlights - The company’s thin client product shipments reached 679,000 units in 2018, capturing 48.6% of the domestic market share, maintaining the top position for 17 consecutive years[57]. - The company became the third-largest POS supplier globally in 2018, achieving significant breakthroughs in the commercial bank market[57]. - The revenue from international markets increased by 51.88%, totaling ¥1,874,114,525.29, compared to ¥1,233,915,981.57 in the previous year[63]. - The company established strategic partnerships with over 20 top real estate developers in the smart community sector[58]. Financial Commitments and Compliance - The company has committed to a cash dividend ratio of no less than 10% of the distributable profit after covering losses and allocating statutory reserves for the years 2018 to 2020[182]. - The company will not engage in any competitive business activities that threaten its main business during the period of being a controlling shareholder[179]. - The company has made a commitment to avoid any related party transactions that could harm its legitimate rights and interests[173].

Financial Performance - The company's operating revenue for 2017 was ¥7,705,135,612.62, representing a 35.47% increase compared to ¥5,687,658,283.03 in 2016[29]. - The net profit attributable to shareholders for 2017 was ¥453,875,490.20, a 42.08% increase from ¥319,458,028.13 in 2016[29]. - The basic earnings per share for 2017 was ¥0.8195, up 38.29% from ¥0.5926 in 2016[29]. - Total assets at the end of 2017 were ¥6,439,912,654.33, a 12.00% increase from ¥5,749,733,120.05 at the end of 2016[29]. - The total cost of sales for 2017 was ¥4,744,431,994.48, reflecting a year-on-year increase of 47.20%[73]. - The company reported a net profit of 30 million in 2017, which is a 15% increase compared to the previous year[151]. - The cumulative net profit of Fujian StarNet Ruijie Communication Co., Ltd. for the years 2017, 2018, and 2019 is committed to be no less than 367.5 million yuan, excluding non-recurring gains and losses[179]. - The cumulative net profit of Shengteng Information for the same period is promised to be no less than 247 million yuan, also excluding non-recurring gains and losses[181]. Dividend Policy - The company reported a profit distribution plan of 1.50 RMB per 10 shares, based on a total of 583,280,278 shares[9]. - For 2017, the proposed cash dividend is 1.50 CNY per 10 shares, amounting to a total of 87,492,041.70 CNY[136]. - The cash dividends for 2017 represent 100% of the distributable profits, which are 1,073,254,575.75 CNY[136]. - The net profit attributable to ordinary shareholders for 2017 was 453,875,490.20 CNY, with a dividend payout ratio of 19.28%[135]. - The company has maintained a clear and transparent cash dividend policy, ensuring the protection of minority shareholders' rights[131]. - The cash dividend distribution plans for the past three years have been consistent and aligned with the company's profit distribution strategy[134]. - Independent directors have fulfilled their responsibilities effectively in overseeing the cash dividend policy[131]. Innovation and R&D - The company emphasizes the importance of continuous innovation in network and communication technologies to maintain product profitability[6]. - The company aims to leverage new technologies and market demands to continuously innovate and improve its offerings[44]. - Research and development investment totaled RMB 1,008 million, accounting for 13.08% of the company's annual revenue[50]. - The company applied for 298 patents in 2017, including 230 invention patents, with a total of 1,617 patents accumulated by the end of the reporting period[50]. - The company plans to increase R&D investment to address technology risks and ensure the development of differentiated products[117]. Market Position and Competition - There is a risk of intensified competition in the market, despite the company's competitive advantages in certain segments[6]. - The company aims to maintain a leading position in mPOS sales and actively explore overseas markets, focusing on major state-owned banks and third-party payment operators[113]. - The company acknowledges risks from macroeconomic policies and competition, committing to continuous innovation and collaboration across product lines to maintain a competitive edge[115][116]. - The company recognizes the risk of high customer concentration and seasonality in sales, particularly in the fourth quarter, and aims to diversify its market positioning[118]. Operational Challenges - The company faces challenges due to high customer concentration and seasonal sales patterns, particularly in the fourth quarter[6]. - The company experienced a 42.55% decrease in intangible assets due to the reduction in the scope of consolidation related to the acquisition of Sichuan Software[45]. - The company has not reported any changes in its main business operations since its listing[27]. Strategic Development - The company plans to strengthen its capabilities in smart networks, smart cloud, and other sectors as part of its future development strategy[109]. - In the cloud computing sector, the company plans to deepen its presence in the education industry and expand into the insurance sector, targeting the financial industry to build an ecosystem[113]. - The company aims to enhance operational efficiency and improve output per capita in its strategic initiatives[109]. - The company has established a clear guideline for market expansion and product development, focusing on maintaining competitive advantages in the telecommunications sector[179]. Human Resources - The company is implementing competitive human resource policies to attract and retain high-end technical talent amid industry growth and competition[123]. - The number of R&D personnel increased to 3,788, a growth of 14.61% from 2016[82].