Financial Performance - Operating revenue for Q1 2014 was CNY 123,216,993.79, a decrease of 3.02% compared to CNY 127,059,180.60 in the same period last year[8]. - Net profit attributable to shareholders was CNY 14,326,721.98, down 30.22% from CNY 20,530,629.34 year-on-year[8]. - Net profit excluding non-recurring gains and losses was CNY 12,335,408.34, a decline of 34.2% compared to CNY 18,746,866.38 in the previous year[8]. - The net cash flow from operating activities was negative CNY 58,332,697.38, a significant decrease of 1,188.32% from negative CNY 4,527,824.90 in the same period last year[8]. - Total assets at the end of the reporting period were CNY 1,552,045,933.78, down 1.82% from CNY 1,580,829,480.17 at the end of the previous year[8]. - The company's net assets attributable to shareholders increased by 1.08% to CNY 1,364,681,800.55 from CNY 1,350,150,043.04 at the end of the previous year[8]. Accounts and Liabilities - Accounts receivable increased by 44.11% compared to the end of the previous year, primarily due to increased revenue recognition based on project completion progress[15]. - Prepayments increased by 66.40% compared to the end of the previous year, mainly due to increased payments to suppliers[15]. - Other current liabilities decreased by 36.71% compared to the end of the previous year, mainly due to the amortization of government subsidies related to future revenue during the reporting period[20]. Expenses and Income - Financial expenses increased by 67.68% year-on-year, primarily due to a decrease in interest accrued on time deposits during the reporting period[20]. - Investment income increased by 343.50% year-on-year, mainly due to an increase in interest from financial products during the reporting period[20]. - Net cash flow from operating activities decreased by 1,188.32% year-on-year, primarily due to increased payments for purchased goods during the reporting period[21]. - Cash flow from investing activities increased by 426.36% year-on-year, mainly due to an increase in the recovery of financial product funds during the reporting period[21]. Projects and Investments - The company has invested approximately 85 million RMB in the "Ma'anshan Smart Park Project," with a total expected investment of 150 million RMB, scheduled for completion by June 2014[22]. - The company won a bid for the "Fuzhou Government Cloud Computing Platform Project" with a total amount of 15.97 million RMB, accounting for 2.81% of the company's 2012 revenue[24]. - Cumulative direct investment in fundraising projects reached 195.83 million RMB, accounting for 88.83% of the planned total investment of 220.68 million RMB[25]. - The company plans to expand its office space and is in discussions with local government to acquire land for project construction, expected to start in the first half of 2014[26]. Shareholder Information - The number of shareholders at the end of the reporting period was 28,162[11]. - The company’s major shareholder, Mr. Lu Feng, reduced his shareholding by 12.5 million shares, representing 4.018% of the total share capital[23]. Future Outlook - The net profit attributable to shareholders for the first half of 2014 is expected to range from 31.02 million to 61.02 million CNY, representing a year-on-year increase of 20% to 30%[31]. - The net profit for the first half of 2013 was 50.85 million CNY, indicating a significant growth expectation for 2014[31]. - The company anticipates stable business development in 2014, although increased R&D investment and intangible asset amortization may impact performance[31]. - The expected fluctuation in net profit is attributed to increased R&D spending and amortization of intangible assets[31]. Corporate Governance and Strategy - The company has committed to maintaining the confidentiality and ownership of technological achievements through agreements with key personnel[30]. - The actual controller of the company has pledged not to sell shares below a certain threshold for six months, ensuring stability for minority shareholders[30]. - The company is classified as a high-tech enterprise, indicating a focus on innovation and technology[30]. - There are no reported securities investments or holdings in other listed companies[32]. - The company has successfully fulfilled its commitments in a timely manner, with no outstanding obligations[30]. - The company is focused on protecting intellectual property and retaining core personnel amidst high turnover in the technology sector[30].

Financial Performance - In 2013, the company's operating revenue was ¥603,142,394.74, an increase of 6.13% compared to ¥568,319,810.56 in 2012[22]. - The net profit attributable to shareholders was ¥62,838,706.64, a decrease of 49.46% from ¥124,344,607.19 in 2012[22]. - The net profit after deducting non-recurring gains and losses was ¥49,841,085.97, down 58.38% from ¥119,754,808.44 in 2012[22]. - The net cash flow from operating activities was ¥57,140,556.07, a decline of 51.68% compared to ¥118,258,078.90 in 2012[22]. - The total assets at the end of 2013 were ¥1,580,829,480.17, an increase of 6.11% from ¥1,489,736,073.92 at the end of 2012[22]. - The net assets attributable to shareholders were ¥1,350,150,043.04, up 2.37% from ¥1,318,910,791.09 at the end of 2012[22]. - The total revenue for 2013 was 602.94 million yuan, reflecting a year-on-year growth of 6.09%[56]. - The total cost of goods sold for 2013 was 411.04 million yuan, representing a year-on-year increase of 15.48%[59]. - The gross profit margin for the software industry decreased by 5.54% to 31.83% compared to the previous year[66]. Dividends and Share Capital - The company plans to distribute a cash dividend of 0.50 CNY per 10 shares to all shareholders based on the total share capital as of December 31, 2013[5]. - The company will increase its share capital by issuing 10 additional shares for every 10 shares held by shareholders[5]. - The company distributed dividends of ¥31,110,000.00 to shareholders, with a cash dividend of ¥1.5 per 10 shares[32]. - The total capital reserve as of December 31, 2013, is reported at 675,293,237.65 yuan, with plans for a capital reserve conversion of 10 shares for every 10 shares held[120]. - The company's total share capital increased from 207,400,000 shares to 311,100,000 shares after the capital reserve conversion, representing a 50% increase[157]. Investments and Projects - The company invested ¥28,817,600 in Wenxin Lianye, acquiring a 15% stake[33]. - The company signed an investment contract for the establishment of the Xinyang Rongji Software Park project, with an investment of ¥21,000,000[35]. - The company has invested a total of 32,682.83 million yuan in various projects, including 6,764.68 million yuan for the new generation electronic government application platform[52]. - The total amount raised for project investment is 182.23 million yuan, with 85.79% of the planned investment of 220.68 million yuan already utilized[55]. - The company has initiated the construction of the SG-ERP system, integrating six key areas of the power sector, enhancing operational efficiency and risk management capabilities[104]. Risks and Challenges - The company faces risks including rising human resource costs, industry technology risks, and risks associated with new business investments and mergers[13]. - The company faced challenges in meeting expected revenue due to changes in market demand and technology development, leading to a delay in project completion[91]. - The company faces risks related to rising human resource costs and talent shortages, particularly in R&D, which could impact market opportunities[110]. Research and Development - The company's R&D expenditure for the year amounted to 69.19 million yuan, which is 5.12% of the latest audited net assets and 11.47% of total revenue[63]. - The company continues to increase R&D investment to promote product upgrades and meet customer demands[91]. - The company has a strong focus on R&D, with several strategic products developed, including the "Rongji Electronic Document System" and "Rongji I-TASK Management Platform"[183]. - The company has filed for 23 invention patents and holds 12 patents and 99 software copyrights, reflecting its commitment to innovation and intellectual property protection[53]. Corporate Governance and Management - The company emphasizes the importance of accurate and complete financial reporting, with key personnel affirming the integrity of the annual report[4]. - The company aims to enhance its management capabilities to cope with the challenges posed by business expansion, including improving governance structures and internal controls[112]. - The board of directors and management underwent re-election on December 16, 2013, with several new appointments made[190]. - The governance structure includes a clear division of responsibilities among the shareholders' meeting, board of directors, supervisory board, and management[199]. Market Position and Strategy - The company has established a leading position in the electronic government application software sector, becoming one of the most competitive service providers in regions such as Beijing, Fujian, Zhejiang, Henan, and Shanghai[47]. - The company is actively involved in market expansion and has established several subsidiaries to enhance its service offerings[184]. - The company is positioned to benefit from the national strategic emerging industry policies, which aim to optimize the software industry environment and improve development quality[102]. - The company plans to significantly increase its information technology investments in the coming years, capitalizing on the historical opportunity for informationization development[104]. Employee and Shareholder Information - The total number of employees as of December 31, 2013, is 829, with 43.31% being R&D personnel[192]. - The company has a total of 359 R&D personnel, which constitutes 43.31% of the workforce[192]. - The controlling shareholder, Mr. Lu Feng, increased his shareholding by 200,000 shares, representing 0.096% of the total share capital, bringing his total holdings to 68,218,580 shares, or 32.89%[149]. - The company has a total of 10 major shareholders, with no known relationships or agreements among them[167].