二六三网络通信股份有限公司 2019 年第三季度报告全文 二六三网络通信股份有限公司 2019 年第三季度报告 2019 年 10 月 1 二六三网络通信股份有限公司 2019 年第三季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人李小龙、主管会计工作负责人李光千及会计机构负责人(会计主 管人员)王志慧声明：保证季度报告中财务报表的真实、准确、完整。 2 二六三网络通信股份有限公司 2019 年第三季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 √ 是 □ 否 追溯调整或重述原因：其他原因(2018 年年度权益分派实施，以资本公积向全体股东每 10 股转增 7 股，上年同期基本每股收益和稀释每股收益进行追溯调整） | --- | --- | --- | --- | --- | --- | --- | --- | --- | |------------------ ...

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 510,082,421.31, representing a 20.94% increase compared to the same period last year[24]. - The net profit attributable to shareholders of the listed company was CNY 64,218,171.07, a 60.22% increase year-on-year[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 61,850,307.25, reflecting a 75.51% increase compared to the previous year[24]. - The net cash flow from operating activities reached CNY 57,683,159.07, marking a significant increase of 225.90% year-on-year[24]. - The basic earnings per share for the reporting period was CNY 0.05, up 66.67% from the previous year[24]. - The total assets at the end of the reporting period amounted to CNY 2,552,814,385.13, a slight increase of 0.52% from the end of the previous year[24]. - The net assets attributable to shareholders of the listed company were CNY 1,959,623,352.99, which is a 2.99% increase compared to the previous year[24]. - The weighted average return on net assets was 3.27%, an increase of 1.08% compared to the previous year[24]. Revenue and Cost Analysis - The operating cost increased by 37.52% to ¥231,335,018.16 from ¥168,215,947.35, primarily due to the inclusion of Dayrise Technology and 263 Global Communications in the reporting period[62]. - The gross profit margin for the communication industry was 54.65%, down 5.47% year-on-year, indicating increased costs relative to revenue growth[65]. - The revenue from enterprise business grew by 47.08% to ¥309,051,195.80, while the revenue from personal business declined by 3.99% to ¥193,920,875.77[65]. Investment and R&D - The company is investing heavily in R&D for video technology, utilizing H.265/VP9 codecs to improve audio and video quality while offering low-cost hardware solutions[55]. - Development expenditures increased by 4,608.3 million yuan, a growth rate of 252.45%, mainly due to the ongoing capitalization of the 263 Cloud Vision System project and the 263 E-School live broadcast project[35]. - The company's R&D investment decreased by 4.15% to ¥63,415,527.79, attributed to the amortization of self-developed software from the acquisition of Yandong Technology in 2018[62]. Business Strategy and Market Position - The company focuses on providing enterprise-level SaaS services and international communication services, aiming to become a leading provider in China[34]. - The company has established three main business divisions: Enterprise Communication, International Communication, and North American Internet Services, facilitating better coordination and internal collaboration[48]. - The enterprise communication business has seen steady improvements in product quality and service levels, driven by the "Video+" strategy, enhancing customer service capabilities[48]. - The company has maintained a leading position in the commercial live streaming sector, serving over 1,000 large and medium-sized enterprises and renowned educational institutions globally[50]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares[8]. - The total number of shares after the recent changes is 1,353,705,178, with 85.23% being unrestricted shares[139]. - The company’s total share capital was 795,989,216 shares as of the dividend distribution[147]. - The independent directors agreed to the execution of the stock option incentive plan based on the fulfillment of the exercise conditions[147]. Risk Factors and Legal Matters - The company has disclosed potential risk factors in its report, emphasizing the importance of risk awareness for investors[7]. - The company is closely monitoring exchange rate fluctuations due to significant overseas business revenue, which may impact operational performance[104]. - The company has ongoing litigation involving copyright infringement with a potential amount of RMB 43,413.73 million, currently in the investigation stage[113]. Other Financial Metrics - The company reported a net cash outflow from investing activities of ¥47,778,269.79, a 55.62% improvement compared to the previous year[62]. - The net cash outflow from financing activities was ¥70,709,166.37, a significant increase of 250.84% due to dividend distributions during the reporting period[62]. - The company reported a total of RMB 76,523.31 million in raised funds, with RMB 2,710.41 million invested during the reporting period and a cumulative investment of RMB 44,406.29 million[82].

Financial Performance - The company's operating revenue for Q1 2019 was ¥262,463,173.80, representing a 30.95% increase compared to ¥200,430,080.11 in the same period last year[8]. - Net profit attributable to shareholders for Q1 2019 was ¥36,924,947.38, a significant increase of 165.85% from ¥13,889,636.77 in the previous year[8]. - The net profit after deducting non-recurring gains and losses reached ¥34,687,985.10, marking a 208.00% increase from ¥11,262,293.72 year-on-year[8]. - Basic earnings per share for Q1 2019 were ¥0.05, up 150.00% from ¥0.02 in the previous year[8]. - Operating profit for Q1 2019 was CNY 31,854,487.45, compared to CNY 14,450,464.64 in Q1 2018, indicating a significant increase of about 120%[56]. - Net profit for Q1 2019 reached CNY 36,987,553.09, up from CNY 10,695,378.01 in Q1 2018, reflecting an increase of approximately 245%[56]. Cash Flow - The net cash flow from operating activities was ¥41,078,463.72, showing a remarkable increase of 574.80% compared to ¥6,087,500.53 in the same quarter last year[8]. - The net cash flow from operating activities surged by 574.80% to CNY 41,078,463.72, attributed to increased business volume and the recovery of accounts receivable from China Unicom[25]. - Cash inflow from operating activities totaled ¥266,315,046.34, up from ¥195,669,665.99, indicating a rise of about 36.0%[63]. - Cash outflow from operating activities was ¥225,236,582.62, compared to ¥189,582,165.46, reflecting an increase of approximately 18.8%[63]. - The net cash flow from investing activities improved to ¥41,912,908.41 from a negative ¥6,296,358.38, marking a turnaround of over 769.0%[63]. Assets and Liabilities - Total assets at the end of the reporting period were ¥2,613,232,963.10, reflecting a 2.90% increase from ¥2,539,538,499.89 at the end of the previous year[8]. - Total liabilities decreased to ¥547,134,251.04 from ¥558,737,291.19, marking a reduction of approximately 2.3%[42]. - The total assets as of March 31, 2019, amounted to CNY 2,222,730,705.46, an increase from CNY 2,155,672,476.18 at the end of 2018, representing a growth of about 3%[52]. - Total liabilities as of March 31, 2019, were CNY 347,629,915.12, compared to CNY 316,898,468.93 as of December 31, 2018, showing an increase of about 10%[52]. Shareholder Equity - Net assets attributable to shareholders increased by 4.48% to ¥1,987,937,691.77 from ¥1,902,702,794.12 at the end of the previous year[8]. - The total equity attributable to the parent company increased to ¥1,987,937,691.77 from ¥1,902,702,794.12, representing a growth of about 4.5%[45]. - The company reported a significant increase in undistributed profits, which rose to ¥272,374,750.46 from ¥151,440,953.64, indicating a growth of approximately 79.8%[45]. Costs and Expenses - The operating costs increased by 57.18% to CNY 120,805,130.30, primarily due to a rise in one-time service costs from Shanghai Naiseng IDC and costs from newly included revenues from subsidiaries[25]. - Research and development expenses for Q1 2019 were CNY 29,431,963.75, a decrease from CNY 33,166,832.51 in Q1 2018, indicating a reduction of about 11%[53]. - The financial expenses showed a significant decrease of 1960.72%, resulting in a financial income of CNY -2,095,966.93 due to reduced exchange losses[25]. Other Financial Metrics - The company confirmed a deferred tax asset of CNY 973.36 million based on future profit expectations, impacting the income tax expense significantly[25]. - The company reported a credit impairment loss of CNY 914,425.68 in Q1 2019, while there was no such loss in Q1 2018[56]. - Other comprehensive income after tax for Q1 2019 was CNY -5,027,529.17, compared to CNY -12,819,720.09 in Q1 2018, indicating an improvement[56].

Financial Performance - The company's operating revenue for 2018 was CNY 928,733,524.63, representing an increase of 11.11% compared to CNY 835,851,735.87 in 2017[24] - The net profit attributable to shareholders for 2018 was CNY 86,042,223.02, a significant increase of 177.67% from CNY 30,986,896.11 in 2017[24] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 79,138,319.07, up 618.74% from CNY 11,010,772.43 in 2017[24] - The basic earnings per share for 2018 was CNY 0.11, reflecting a 175.00% increase from CNY 0.04 in 2017[24] - The total assets at the end of 2018 amounted to CNY 2,539,538,499.89, an increase of 6.89% from CNY 2,375,904,975.20 at the end of 2017[24] - The net assets attributable to shareholders at the end of 2018 were CNY 1,902,702,794.12, up 5.01% from CNY 1,811,879,665.90 at the end of 2017[24] - The net cash flow from operating activities for 2018 was CNY 127,495,669.92, a decrease of 9.80% compared to CNY 141,349,980.76 in 2017[24] - The weighted average return on net assets for 2018 was 4.63%, an increase of 2.91% from 1.72% in 2017[24] Revenue Breakdown - The company's total revenue for the year was 1,000,733,425.63 CNY, with a quarterly breakdown showing Q1 at 200,430,080.11 CNY, Q2 at 221,330,942.61 CNY, Q3 at 253,660,776.03 CNY, and Q4 at 253,311,725.88 CNY[29] - Net profit attributable to shareholders for the year was 86,142,222.02 CNY, with quarterly figures of 13,889,636.77 CNY in Q1, 26,192,440.54 CNY in Q2, 29,106,162.80 CNY in Q3, and 16,853,982.91 CNY in Q4[29] - Enterprise business revenue accounted for 53.77% of total revenue, increasing by 31.84% to ¥499,394,272.04 from ¥378,778,834.71[66] - Personal business revenue decreased by 4.70% to ¥411,049,502.57, which constituted 44.26% of total revenue[66] - Revenue from mainland China was ¥541,219,328.44, accounting for 58.27% of total revenue, with a growth of 28.77% compared to the previous year[66] Business Development and Strategy - The company has outlined potential risks and strategies for future development in its board report[6] - The company aims to become a leading provider of enterprise-level SaaS services in China, focusing on corporate communication and collaboration[38] - The company has established three major business divisions: Enterprise Communication, International Communication, and North American Internet Comprehensive Services, facilitating better coordination and internal collaboration[51] - The company plans to focus on international communication services, leveraging the "Belt and Road" initiative to meet the growing demand for cross-border communication[125] - The company aims to enhance its product offerings with a "video+" strategy, establishing a comprehensive layout of its cloud communication services[128] Acquisitions and Partnerships - The company has expanded its international communication services, targeting enterprise users with cross-border communication solutions[38] - The company has formed strategic partnerships with hardware manufacturers like Polycom and Huawei to provide a complete "cloud + end" solution for enterprise communication products[53] - The company has established a strategic partnership with NTT to enhance its international communication business, leveraging NTT's brand and customer resources[60] - The acquisition of iTalkBB Media contributed approximately one million USD in profit while enhancing the Chinese television product line's profitability[60] - The company has acquired Shenzhen Risheng and I-ACCESS, generating revenues of 53.91 million yuan and 57.19 million yuan respectively since acquisition[120] Research and Development - The company invested heavily in R&D for video technology, adopting H.265/VP9 codecs to improve audio and video quality, and introduced low-cost hardware terminals that outperform existing market solutions[53] - Research and development expenses amounted to ¥135,265,671.88, a decrease of 15.67% compared to the previous year[77] - The number of R&D personnel decreased by 8.94% to 601, with R&D investment accounting for 14.76% of operating income[79] - The company maintained a focus on R&D in areas such as live broadcasting, overseas MVNO, enterprise mobile, and IoT[78] Financial Management - The company reported a government subsidy of 4,257,261.84 CNY, which is closely related to its business operations[30] - The company has a total of 10,759,000 CNY in cash and cash equivalents in overseas markets, representing 5.65% of total net assets[42] - The company has a significant portion of its revenue from overseas operations, which exposes it to foreign exchange risks due to currency fluctuations[134] - The company has consistently achieved expected returns across various financial products, demonstrating effective management of entrusted funds[189] Future Outlook - The company expects to achieve a net profit of no less than 162 million yuan in 2019, as per the performance assessment indicators of the stock incentive plan[127] - The upcoming 5G technology is anticipated to significantly enhance user experience in enterprise video conferencing and live streaming services, driving rapid growth in these areas[124] - The company plans to launch a new mobile app, Mobile Plus, in the Canadian market, offering a mobile plan at 50% of the market price for similar products, targeting the Chinese community[132] - The company aims to expand its international cross-border communication business by establishing a direct sales and channel sales system for outbound services in key countries and regions[131] Risk Management - The company has identified risks related to technological innovation, management control, project implementation, currency fluctuations, and goodwill impairment, and is taking measures to mitigate these risks[134][135] - The company will conduct annual goodwill impairment tests to monitor the value of its goodwill, which stands at RMB 110,595.07 million after accounting for accumulated impairment provisions[135] Corporate Governance - The company approved a stock option incentive plan in early 2018, granting 3.6 million options at an exercise price of 7.65 yuan per share[170] - The domestic accounting firm Deloitte Huayong has been retained for three consecutive years, with an audit service fee of 1.97 million yuan[162] - There were no significant lawsuits or arbitration matters reported during the period, and a copyright infringement case was resolved with the withdrawal of the plaintiff[166] Dividend Distribution - The company plans to distribute a cash dividend of 1.00 yuan per 10 shares, totaling 79,498,022 yuan, which represents 100% of the total profit distribution[148] - The company's undistributed profits amount to 91,228,769.17 yuan, which will be carried forward to the next fiscal year[148]

二六三网络通信股份有限公司 2018 年第三季度报告正文 证券代码：002467 证券简称：二六三 公告编号：2018-080 二六三网络通信股份有限公司 2018 年第三季度报告正文 2018 年 10 月 1 二六三网络通信股份有限公司 2018 年第三季度报告正文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人李小龙、主管会计工作负责人李光千及会计机构负责人(会计主 管人员)王志慧声明：保证季度报告中财务报表的真实、准确、完整。 2 二六三网络通信股份有限公司 2018 年第三季度报告正文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 2,527,966,950.39 | 2,375,904,975.20 | ...

Financial Performance - The company's operating revenue for the first half of 2018 was ¥421,761,022.72, representing a 1.49% increase compared to ¥415,557,914.89 in the same period last year[18]. - The net profit attributable to shareholders decreased by 19.24% to ¥40,082,077.31 from ¥49,633,662.83 year-on-year[18]. - The net profit after deducting non-recurring gains and losses increased by 26.32% to ¥35,240,326.26 compared to ¥27,898,313.08 in the previous year[18]. - The net cash flow from operating activities dropped significantly by 73.16% to ¥17,699,665.66 from ¥65,954,426.35 in the same period last year[18]. - The weighted average return on net assets decreased to 2.19% from 2.74% year-on-year[18]. - The cost of goods sold increased by 16.87% to CNY 168,215,947.35, leading to a gross margin of 60.12%, which is a decrease of 5.24% from the previous year[44]. - The personal business segment saw a decline in revenue by 7.55% to CNY 201,982,665.08, which constituted 47.89% of total revenue[43]. - The company's R&D investment decreased by 21.43% to CNY 66,158,281.31, reflecting a strategic shift in focus[41]. - The company reported a significant increase in income tax expenses, rising by 37,550.52% to CNY 8,865,205.68, primarily due to the end of tax exemption periods for certain subsidiaries[41]. - The net profit attributable to shareholders for the first three quarters of 2018 is expected to range from 63.45 million to 76.15 million RMB, representing a growth of 0% to 20% compared to the same period in 2017[77]. Assets and Liabilities - Total assets at the end of the reporting period were ¥2,328,692,586.75, a decrease of 1.99% from ¥2,375,904,975.20 at the end of the previous year[18]. - The net assets attributable to shareholders increased by 2.38% to ¥1,854,912,501.35 from ¥1,811,879,665.90 at the end of the previous year[18]. - Cash and cash equivalents decreased by 110.63 million yuan, a reduction of 14.73%, mainly due to payments for equity transfer related to previous acquisitions[27]. - Accounts receivable increased by 39.09 million yuan, an increase of 61.53%, driven by the inclusion of Shenzhen Risheng in the consolidation scope and growth in teleconference business volume[27]. - Total current assets decreased to ¥999,831,549.91 from ¥1,021,258,673.28, a reduction of approximately 2.1%[130]. - Total liabilities decreased to ¥390,217,556.71 from ¥474,235,027.42, a decrease of approximately 17.7%[131]. - The company's equity attributable to shareholders increased to ¥1,854,912,501.35 from ¥1,811,879,665.90, an increase of about 2.4%[132]. Investments and Acquisitions - The company established a joint venture with NTT, focusing on high-end IDC cloud computing services, enhancing its communication resource integration capabilities[36]. - The company acquired 51% of Shanghai Naisong Communication Technology Co., Ltd. for RMB 9,000 million, with a total investment of RMB 9,125 million planned for the project[68]. - The company plans to use RMB 31,000 million from remaining funds to acquire 100% of Hong Kong I-ACCESS NETWORK LIMITED, with the acquisition approved by the board and shareholders[68]. - The company reported a cumulative investment loss of RMB 71.23 million in the global Chinese mobile communication business as of March 30, 2018, due to significant changes in the market environment[65]. - The company incurred a cumulative investment loss of RMB 16.75 million in the acquisition of 51% stake in Shanghai Naisong Communication Technology Co., Ltd. as of June 30, 2018, primarily due to regulatory delays and high fixed costs associated with IDC services[65]. Strategic Focus and Market Position - The company is focused on providing enterprise-level SaaS services and expanding into international communication services under the "Belt and Road" initiative[26]. - The company aims to become a leading provider of communication services for overseas Chinese families and virtual mobile communication services (MVNO)[26]. - The company expanded its MVNO mobile phone business, achieving a stable growth in active users, contributing to its brand influence among overseas Chinese[37]. - The company has observed a decline in demand for traditional voice and broadband services from enterprise clients, who are increasingly interested in transformative technologies[65]. - The company anticipates that some large IDC projects will only begin billing in late 2018 or 2019, extending the timeline for expected returns on investment[65]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares[6]. - The largest shareholder, Li Xiaolong, holds 17.77% of the shares, totaling 139,894,273 shares, with 114,920,705 shares under lock-up[114]. - The company has 77,409 common shareholders at the end of the reporting period[113]. - The total number of shares increased from 783,580,220 to 787,380,220, reflecting an increase of 3,800,000 shares[108]. - The company granted stock options totaling 3.6 million shares to 106 core technical and business personnel, with an exercise price of 7.65 CNY per share[91]. Financial Management and Reporting - The financial report for the half-year period was not audited[127]. - The company has evaluated its ability to continue as a going concern for the next 12 months and found no significant doubts regarding its sustainability[180]. - The financial report is prepared based on the accrual basis of accounting, adhering to the accounting standards issued by the Ministry of Finance[179]. - The company follows specific accounting treatments for mergers and acquisitions, recognizing goodwill when the acquisition cost exceeds the fair value of identifiable net assets[186]. - The company’s consolidated financial statements are prepared based on control, with subsidiaries included from the date control is obtained[188]. Risks and Challenges - The company faces risks related to rapid technological advancements in the communication industry, which may affect its competitive position if it fails to adapt[78]. - The company has a significant portion of its revenue from overseas operations, making it susceptible to exchange rate fluctuations, particularly with USD, CAD, and AUD[79]. - The company has faced challenges in maintaining profit margins in international data roaming services due to significant price reductions by domestic operators[65].

二六三网络通信股份有限公司 2018 年第一季度报告正文 证券代码：002467 证券简称：二六三 公告编号：2018-040 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人李小龙、主管会计工作负责人李光千及会计机构负责人(会计主 管人员)孟雪霞声明：保证季度报告中财务报表的真实、准确、完整。 2 二六三网络通信股份有限公司 2018 年第一季度报告正文 二六三网络通信股份有限公司 2018 年第一季度报告正文 1 二六三网络通信股份有限公司 2018 年第一季度报告正文 第一节 重要提示 √ 适用 □ 不适用 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业收入（元） | 200,430,080.11 | 205,825,690.67 | -2.62% | | 归属 ...

Financial Performance - The company's operating revenue for 2017 was CNY 835,851,735.87, a slight increase of 0.02% compared to CNY 835,675,220.99 in 2016[18]. - The net profit attributable to shareholders in 2017 was CNY 30,986,896.11, representing a significant increase of 108.19% from a loss of CNY 378,266,158.07 in 2016[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 11,010,772.43, up 103.44% from a loss of CNY 320,492,159.73 in the previous year[18]. - The net cash flow from operating activities increased by 40.67% to CNY 141,349,980.76 in 2017, compared to CNY 100,480,520.81 in 2016[18]. - The basic earnings per share for 2017 was CNY 0.04, a recovery from a loss of CNY 0.48 in 2016, marking an increase of 108.33%[18]. - The weighted average return on equity improved to 1.72% in 2017 from -18.96% in 2016, reflecting a positive turnaround[18]. - The company reported a net profit of CNY 29,399,925.46 in the first quarter of 2017, which was the highest quarterly profit for the year[21]. Revenue Breakdown - The enterprise business revenue reached ¥378.78 million, accounting for 45.32% of total revenue, with a year-on-year growth of 7.30%[44]. - The personal business revenue was ¥431.30 million, representing 51.60% of total revenue, showing a decline of 3.24% from the previous year[44]. - The company's gross profit margin for the communication industry was 63.87%, with a slight increase of 0.18% compared to the previous year[47]. Asset Management - Total assets at the end of 2017 were CNY 2,375,904,975.20, a decrease of 11.99% from CNY 2,699,470,371.38 at the end of 2016[18]. - The net assets attributable to shareholders increased by 1.18% to CNY 1,811,879,665.90 at the end of 2017, compared to CNY 1,790,727,729.33 at the end of 2016[18]. - The company’s total assets included cash of ¥751,119,359.88, which represented 31.61% of total assets, down from 40.80% the previous year[64]. Investment and Acquisitions - The company reported an investment income of ¥21,415,572.29, accounting for 78.50% of total profit, primarily from the acquisition of iTalk Media[62]. - As of the end of 2017, goodwill increased to ¥793,578,221.52, representing 33.40% of total assets, up from 28.25% in 2016, primarily due to the acquisition of iTalk Media[65]. - The company invested ¥5,119,069.74 in Yulore Technology, acquiring a 17.37% stake, with the investment fully paid[71]. Strategic Initiatives - The company expanded its international communication services in line with the national "Belt and Road" strategy[27]. - The company entered the mid-to-high-end IDC cloud computing service sector through a joint venture with NTT, enhancing its communication service capabilities[38]. - The company aims to become a leading provider of enterprise communication services and SaaS solutions in China, leveraging the "Belt and Road" initiative to expand international communication services[93]. Research and Development - Research and development investment amounted to ¥160,402,201.00, a decrease of 5.94% compared to the previous year, with R&D investment accounting for 19.19% of operating revenue[57]. - The number of R&D personnel decreased by 15.71% to 660, while their proportion of total employees increased to 58.93%[57]. Shareholder and Equity Management - The company did not distribute cash dividends or issue bonus shares in 2016 and 2017, maintaining a focus on growth and operational needs[103]. - The company plans to repurchase 740,000 restricted stocks from 27 former employees as part of the 2015 equity incentive plan[115]. - The company plans to grant 3.8 million restricted shares to nine individuals, increasing registered capital by RMB 3,800,000, resulting in a new registered capital of RMB 787,380,220[157]. Corporate Governance - The company has established a governance structure that complies with relevant regulations, ensuring a high level of corporate governance[192]. - The board of directors includes independent directors, ensuring governance and oversight[182]. - The company has engaged Deloitte Huayong as its auditor for the past two years, with an audit fee of 1.87 million CNY[111]. Market Presence and Growth - The company has established nearly 30 physical stores in the US and Canada, enhancing its market presence among overseas Chinese[33]. - The company has seen steady growth in its iTalkBB mobile phone business since its trial operation began in 2017, with plans to complete the trial phase and officially launch in the North American market in 2019[97]. - The company will focus on expanding its Cantonese market in Canada, enhancing sales of phone and television services to maintain market leadership[97]. Risk Management - The company is aware of the impact of exchange rate fluctuations on its overseas revenue, which constitutes a significant portion of its overall income, and will take measures to mitigate these risks[99]. - The company will closely monitor market changes and adjust investment projects as necessary to mitigate risks associated with fundraising and project implementation[99].

Financial Performance - Net profit attributable to shareholders increased by 43.43% to ¥13,820,721.53 for the current period[8] - Operating income rose by 4.59% to ¥211,696,287.57 for the current period[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses surged by 1,295.19% to ¥14,056,997.85[8] - Basic earnings per share doubled to ¥0.02, while diluted earnings per share also doubled to ¥0.02[8] - The weighted average return on net assets was 0.76%, an increase from 0.34%[8] - The company expects to turn a profit in 2017, with a projected net profit of approximately 52.96 million yuan, compared to a net loss of 378.27 million yuan in 2016[23] - The significant change in performance is attributed to a large goodwill impairment loss in the previous year[23] Cash Flow and Investments - Net cash flow from operating activities increased by 55.48% to ¥31,032,241.71[8] - Operating cash flow net amount increased by 44.59% to ¥96,986,668.06, primarily from the recovery of debts[17] - The company incurred a net cash outflow from investing activities of -¥405,394,417.80, a 51.14% decrease compared to the previous period due to reduced purchases of financial products[17] - The company paid out ¥74,864,557.37 in cash from financing activities, a 95.68% increase due to stock repurchase payments[17] Assets and Liabilities - Total assets decreased by 12.79% to ¥2,354,243,941.19 compared to the end of the previous year[8] - Cash and cash equivalents decreased by 35.45% to ¥710,986,128.20 due to payments for previous acquisitions and stock repurchase[16] - Prepayments increased by 37.46% to ¥25,716,317.56 driven by business growth in subsidiaries[16] - Other current assets rose by 60.43% to ¥154,263,675.47, including an increase in bank wealth management products by ¥58.5 million[16] - Long-term equity investments decreased by 58.99% to ¥3,771,131.47 due to the acquisition of iTalk Media[16] Shareholder Information - The total number of shareholders at the end of the reporting period was 74,947[12] - The largest shareholder, Li Xiaolong, holds 17.85% of the shares, with 132,920,705 shares pledged[12] Income and Expenses - Financial expenses improved significantly, showing a decrease of 4403.50% to -¥11,805,740.30 due to increased interest income from time deposits[17] - Investment income fell by 77.98% to ¥19,735,531.90, impacted by significant adjustments in long-term equity valuations from previous acquisitions[17] - Other income recognized in the period amounted to ¥2,002,318.52, related to government subsidies[17] Corporate Governance - The company reported no violations regarding external guarantees during the reporting period[26] - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[27] - The company did not engage in any research, communication, or interview activities during the reporting period[28] Acquisition - The company completed the acquisition of iTalk Media, resulting in an investment income of ¥16,328,324.38[10]

Financial Performance - The company's operating revenue for the first half of 2017 was approximately ¥415.56 million, representing a 0.49% increase compared to ¥413.52 million in the same period last year[17]. - The net profit attributable to shareholders decreased by 42.03% to approximately ¥49.63 million, down from ¥85.62 million in the previous year[17]. - The net profit after deducting non-recurring gains and losses increased by 81.72% to approximately ¥27.90 million, compared to ¥15.35 million in the same period last year[17]. - The net cash flow from operating activities increased by 39.97% to approximately ¥65.95 million, up from ¥47.12 million in the previous year[17]. - The company reported a revenue of 415.56 million yuan for the first half of 2017, a slight increase of 0.49% compared to the same period last year[34]. - The net profit attributable to shareholders decreased by 42.03% to 49.63 million yuan, primarily due to a reduction of 47.23 million yuan in the valuation adjustment of long-term equity investments related to acquisitions[34]. - The company reported a net loss of RMB 608.54 million for the cloud unified communication project due to delays in obtaining necessary business licenses[63]. - The company expects a net profit for the first nine months of 2017 to range between 6,191.67 and 9,049.36 thousand yuan, reflecting a decrease of 35% to 5% compared to the same period last year[70]. Assets and Liabilities - Total assets at the end of the reporting period were approximately ¥2.36 billion, a decrease of 12.67% from ¥2.70 billion at the end of the previous year[17]. - The company's net assets attributable to shareholders increased by 2.37% to approximately ¥1.83 billion, compared to ¥1.79 billion at the end of the previous year[17]. - The company's cash and cash equivalents decreased by 376.37 million yuan, a reduction of 34%, mainly due to payments for previous acquisitions[27]. - Total current assets decreased from CNY 1,337,702,002.82 to CNY 973,343,475.90, a decline of approximately 27.2%[126]. - Total liabilities decreased from CNY 809,530,626.31 to CNY 428,033,225.68, a decline of about 47.1%[127]. - Total equity increased from CNY 1,889,939,745.07 to CNY 1,929,419,440.68, an increase of approximately 2.1%[128]. Investments and Acquisitions - The company completed the acquisition of iTalkMedia, enhancing its IPTV product line competitiveness[37]. - The acquisition of iTalk Media led to a decrease in equity assets by 5.38 million yuan, as the accounting method changed from equity method to consolidated financial statements[27]. - The company has committed to invest 34,000 thousand yuan in the enterprise cloud unified communication project, with 36.33% of the investment completed by the end of the reporting period[60]. - The company invested a total of RMB 9,000 million in acquiring a 51% stake in Shanghai Naiseng Communication Technology Co., Ltd. as part of its cloud unified communication project[63]. - The company has allocated RMB 10,000 million for purchasing principal-protected bank wealth management products, which are yet to be recovered as of June 30, 2017[61]. Business Operations and Strategy - The company has entered the IDC and cloud computing service sector after obtaining the necessary operating license from the Ministry of Industry and Information Technology[25]. - The company remains a leader in the North American Chinese communication service market, particularly in providing comprehensive communication services for overseas Chinese families[26]. - The company plans to enhance its product offerings to meet diverse communication needs for enterprise clients[25]. - The company launched a new video conferencing service based on a SaaS model, enhancing its communication service offerings[35]. - The company aims to enhance its overall layout in enterprise communication and expand its global client development through the acquisition[63]. Shareholder and Equity Information - The company has decided to repurchase 740,000 restricted stocks from 27 former employees as part of its employee incentive plan[86]. - The total number of shares decreased from 796,907,220 to 796,167,220 after the repurchase[106]. - The largest shareholder, Li Xiaolong, holds 17.57% of the shares, totaling 139,894,273 shares, with a pledge of 34,973,568 shares[111]. - The total number of ordinary shareholders at the end of the reporting period was 81,465[111]. - The company terminated the 2015 equity incentive plan due to significant changes in stock price, making it difficult to achieve the intended incentive effect[108]. Risks and Challenges - The company faces risks related to technological innovation, management control, project implementation, and currency fluctuations, which could impact overall performance[72]. - The company has not reported any significant changes in the measurement attributes of major assets during the reporting period[48]. - The company has not engaged in any significant non-raised fund investment projects or major asset and equity sales during the reporting period[64]. Compliance and Governance - The semi-annual financial report has not been audited[81]. - The company has not conducted any major litigation or arbitration matters during the reporting period[83]. - The company has not experienced any penalties or rectification situations during the reporting period[84]. - The company has not engaged in any related party transactions during the reporting period[88]. Accounting Policies and Financial Reporting - The financial statements are prepared based on the accrual basis of accounting, in accordance with the accounting standards issued by the Ministry of Finance[169]. - The company recognizes costs related to mergers, such as audit and legal fees, as they occur[178]. - The company assesses financial assets for impairment at each balance sheet date, recognizing impairment losses when there is objective evidence of impairment[188]. - The company uses aging analysis and percentage of balance methods to assess bad debt provisions for receivables[199].