Financial Performance - The company's revenue for Q1 2021 was ¥29,886,133.83, representing a decrease of 17.10% compared to ¥36,050,086.18 in the same period last year[7] - Net profit attributable to shareholders was ¥871,309.91, a significant decline of 93.85% from ¥14,169,345.71 year-over-year[7] - Basic earnings per share dropped to ¥0.0106, down 95.41% from ¥0.2308 in the same quarter last year[7] - Total profit fell by 89.02% to ¥1,968,733.23 from ¥17,932,623.60, driven by declines in revenue and gross profit[16] - The net profit for Q1 2021 was ¥1,814,879.23, compared to ¥15,078,532.91 in Q1 2020, reflecting a significant decline[40] - The total comprehensive income for Q1 2021 was ¥1,814,879.23, compared to ¥15,078,532.91 in Q1 2020[40] Cash Flow - The net cash flow from operating activities was -¥40,559,505.08, worsening by 27.58% compared to -¥31,791,343.39 in the previous year[7] - Cash and cash equivalents decreased by 46.55% to ¥164,997,710.95 from ¥308,713,994.36 due to investments in bank wealth management products and repayment of bank loans[16] - The cash flow from operating activities for Q1 2021 was negative at -¥40,559,505.08, worsening from -¥31,791,343.39 in the same period last year[45] - The net cash flow from operating activities was -50,289,782.04 CNY, compared to -34,186,560.77 CNY in the previous period, indicating a decline in operational cash generation[49] - Total cash inflow from operating activities was 33,851,982.91 CNY, down from 48,204,204.81 CNY, reflecting a decrease of approximately 29.7%[48] - The net cash flow from investment activities was -78,610,551.92 CNY, significantly worse than -267,659.97 CNY in the previous period[49] Assets and Liabilities - Total assets at the end of the reporting period were ¥833,180,418.06, a decrease of 6.65% from ¥892,565,832.84 at the end of the previous year[7] - The company's total assets decreased to CNY 911,020,830.70 from CNY 978,206,750.99 at the end of 2020, a decline of 6.8%[36] - Total liabilities decreased to CNY 232,817,354.81, down 22.4% from CNY 299,949,527.44 in the previous period[37] - The total liabilities and equity amounted to CNY 911,020,830.70, consistent with the total assets[37] Shareholder Information - The total number of shareholders at the end of the reporting period was 18,373[11] - Jiangsu Tianfu Investment Co., Ltd. held the largest share with a 36.16% stake, amounting to 29,590,000 shares[11] Investment and R&D - The company has invested 60.60% of the planned funds in the operation service center and marketing network construction project, totaling ¥12,800,000 out of ¥21,121,430[22] - The R&D center upgrade project has seen 93.10% of the planned funds utilized, with ¥9,018,530 invested out of ¥9,686,840[22] - Research and development expenses rose to CNY 4,726,044.94, reflecting an increase of 30.6% compared to CNY 3,620,169.50 in Q1 2020[39] - The company reported a significant increase in research and development expenses, totaling ¥4,362,596.95, compared to ¥3,073,393.41 in the previous year, indicating a focus on innovation[41] Operational Challenges - Operating revenue declined by 17.10% to ¥29,886,133.83 from ¥36,050,086.18, primarily due to a decrease in security operation service revenue[16] - Gross profit decreased by 32.78% to ¥14,470,710.82 from ¥21,528,694.77, attributed to a lower gross margin from security system solution projects[16] - Total operating costs increased to CNY 29,946,957.33, up 7.0% from CNY 27,978,119.49 in the previous year[39] - The company incurred a financial expense of -¥39,768.67, a significant improvement compared to ¥1,023,017.39 in the previous year[41] - The company reported a profit before tax of ¥1,968,733.23 for Q1 2021, down from ¥17,932,623.60 in the previous year, highlighting a challenging operating environment[40]

Financial Performance - The company's operating revenue for 2020 was ¥307,987,857.36, a decrease of 15.54% compared to ¥364,644,584.68 in 2019[24]. - The net profit attributable to shareholders for 2020 was ¥66,150,742.78, down 9.79% from ¥73,332,885.54 in 2019[24]. - The company achieved total operating revenue of 308 million yuan in 2020, a decrease of 15.54% compared to the previous year[81]. - The net profit attributable to shareholders was 66.15 million yuan, down 9.79% year-on-year[81]. - The company reported a basic earnings per share of ¥1.05 for 2020, a decrease of 11.76% from ¥1.19 in 2019[24]. - The company reported a significant increase in cash flow from operating activities, indicating improved operational efficiency[24]. - Cash received from sales increased by 43.06% to CNY 404 million, and net cash flow from operating activities surged by 165.05% to CNY 114 million[84]. - The total cash and cash equivalents increased by 2,111.34% to ¥193,298,685.16, driven by the proceeds from the initial public offering[104]. Market Risks and Competition - The company faces significant risks from intensified market competition, particularly from new entrants in the security industry[4]. - The rise of mobile payments may reduce the demand for bank security solutions, impacting the company's growth in the banking sector[6]. - The company is at risk of losing its technological advantage if it fails to keep up with rapid advancements in security technology[8]. - Rising labor costs due to increased demand for talent in artificial intelligence and IoT sectors are affecting the company's profitability[9]. - The company recognizes the risk of intensified market competition and plans to adapt its strategies in product development, cost control, and service quality to maintain its competitive edge[130]. Operational Developments - The company has expanded its operations with subsidiaries established in multiple provinces, which may pose management challenges[10]. - The company has developed a cloud-based intelligent monitoring and alarm system tailored for the banking sector, covering ATMs and bank branches[37]. - The company has developed an intelligent video surveillance system for the rail transit industry, structured in three levels: station/vehicle depot, OCC/BCC/police station, and TCC/bus team, all connected via a dedicated network[39]. - The company has built a multi-level service network across major cities in China, providing tailored security solutions and operational services to various industries[52]. - The company has established a strong industry position, being a vice-chairman unit of the China Security Prevention Products Industry Association and having participated in the formulation of 67 national and industry standards[64]. Research and Development - The company has established a comprehensive R&D management system and maintains a high level of investment in R&D, focusing on technology and product innovation[71]. - R&D investment amounted to CNY 23.997 million, representing 7.79% of total revenue, with 31 patents applied for during the reporting period[82]. - The company has developed key technologies in various fields, including intelligent recognition technology and non-invasive liquid detection technology, enhancing its competitive position[71]. - The company is committed to increasing R&D investment to keep pace with rapid technological advancements in security systems and related fields[133]. - The company aims to enhance its service offerings from specialized security system functions to comprehensive intelligent security system operations, leveraging advancements in AI and big data[51]. Shareholder and Dividend Policies - The company reported a profit distribution plan of 3 RMB per 10 shares (including tax) for a total of 81,840,000 shares[11]. - The cash dividend distributed over the last three years amounts to 24,552,000 yuan in 2020, 18,414,000 yuan in 2019, and 18,414,000 yuan in 2018, representing 37.12%, 25.11%, and 25.39% of the net profit attributable to ordinary shareholders respectively[145]. - The company has a clear profit distribution policy, ensuring that cash dividends will be prioritized when the company is profitable and has positive retained earnings[140]. - The company has committed to not reducing its shareholdings during the lock-up period and will continue to hold shares long-term after the lock-up expires[149]. - The company will ensure compliance with regulations regarding share reduction and will not sell more than 50% of their holdings within 12 months after leaving their positions[148]. Strategic Focus and Future Plans - The company plans to deepen its focus on three main sectors: rail transit, finance, and urban security, aiming to expand its market share and enhance service standards[125]. - The company aims to mitigate seasonal revenue fluctuations by promoting long-term operational services to establish deeper customer relationships[131]. - The company is actively exploring new business growth points in various industries to mitigate the adverse effects of reduced demand for traditional banking services due to the rise of mobile payments[132]. - The company has set a goal to explore new industry applications, particularly in hazardous materials management, smart healthcare, and smart education, to identify new growth opportunities[126]. - The company is focused on leveraging big data, AI, and IoT applications to enhance its service offerings and operational capabilities[125].