Financial Performance - The company's operating revenue for 2021 was ¥4,575,014,681.20, a decrease of 19.55% compared to ¥5,686,641,002.77 in 2020[13]. - The net profit attributable to shareholders for 2021 was ¥165,240,702.33, down 24.89% from ¥220,001,222.21 in 2020[13]. - The net profit after deducting non-recurring gains and losses was -¥15,361,414.31, a decline of 111.19% compared to ¥137,258,468.88 in 2020[13]. - The net cash flow from operating activities increased by 4.79% to ¥835,709,940.91 from ¥797,525,770.49 in 2020[13]. - The total assets at the end of 2021 were ¥10,573,490,487.26, an increase of 4.06% from ¥10,160,745,437.56 at the end of 2020[13]. - The basic earnings per share for 2021 were ¥0.07, a decrease of 22.22% from ¥0.09 in 2020[13]. - The company reported a quarterly revenue of ¥1,324,829,755.25 in Q4 2021, showing a consistent increase throughout the year[15]. - The company's total revenue for 2021 was approximately ¥18.06 billion, a decrease of 19.74% compared to the previous year[67]. - The overseas revenue reached ¥155,392.17 million, accounting for 33.97% of total revenue[59]. Research and Development - The company invested 461.31 million yuan in R&D, accounting for 10.08% of operating revenue[51]. - The company has a strong human resource advantage, with over 60% of its employees dedicated to R&D and technical services, fostering a robust talent pool[47]. - The number of R&D personnel decreased by 8.19% to 1,311 in 2021, with the proportion of R&D staff in total employees dropping to 54.69%[77]. - R&D investment amounted to ¥461,308,998.31 in 2021, representing 10.08% of operating revenue, an increase from 8.76% in 2020[79]. - The company aims to increase R&D investment to meet deeper customer needs and enhance differentiated service capabilities[107]. Market Expansion and Strategy - The company is exploring new market opportunities and potential mergers and acquisitions to drive growth[2]. - The company is actively expanding its global presence since 2010, strengthening its overseas business platform and sales system through self-built and acquired resources[26]. - The company plans to invest a total of 1.7398426 billion yuan in the new computing power sharing platform project, sourced from adjustments in the community cloud and cloud security projects[96]. - Future strategies include focusing on five main business lines and expanding into overseas markets to capture industry opportunities[107]. - The company is considering strategic acquisitions to bolster its technology capabilities, with a budget of 500 million RMB allocated for potential deals[127]. Technology and Innovation - The company aims to leverage artificial intelligence (AI) and edge cloud platforms to improve service offerings and customer experience[7]. - The company has established over 400 edge computing nodes globally, enhancing its edge computing capabilities[23]. - The company has developed a comprehensive product matrix around CDN and edge computing, cloud security, and new business directions such as liquid cooling solutions[32]. - The company launched the Edge Computing Platform (ECP) to provide edge computing services, significantly reducing computation latency and costs for applications like video streaming and online education[34]. - The company has developed a comprehensive security platform with 50 capabilities across 10 categories, including DDoS protection and application security, to enhance enterprise security[36]. Corporate Governance and Compliance - The company has established a governance structure that complies with relevant laws and regulations, ensuring effective operation of the board and shareholder meetings[112]. - The company has no controlling shareholder, maintaining independent operations and decision-making capabilities[114]. - The board consists of 7 members, including 3 independent directors, ensuring compliance with legal requirements[115]. - The company maintains strict information disclosure practices, ensuring timely and accurate communication with investors through designated channels[120]. - The company has committed to reducing and regulating related party transactions, ensuring compliance with market fairness principles[180]. Employee Relations and Compensation - The total remuneration for the board of directors, supervisors, and senior management during the reporting period amounts to CNY 14.33 million[136]. - The company has implemented a performance-based compensation system to enhance employee motivation and retention, particularly for the sales team[149]. - The company continues to enhance employee benefits, including commercial insurance and medical reimbursements, while adhering to national regulations[149]. - The company has established a performance evaluation mechanism for senior management linked to annual operational targets and profit goals[165]. - The total number of employees at the end of the reporting period was 2,397, with 944 in the parent company and 1,453 in major subsidiaries[147]. Risk Management - The company acknowledges potential risks including market, technology, management, and overseas business risks, which are detailed in the management discussion section[2]. - A risk management strategy has been established to address market risks, including policy changes and increased competition[108]. - The company is taking measures to mitigate overseas business risks, including compliance with local laws and strengthening intellectual property protection[110]. Social Responsibility - The company donated 300,000 yuan to the "Love Under the Blue Sky" charity during the reporting period[177]. - The company has actively participated in social responsibility initiatives, including donations to underdeveloped regions[177]. - The company does not belong to the key pollutant discharge units as per the environmental protection department[176].

Financial Performance - The company's operating revenue for Q3 2021 was ¥1,195,379,337.50, a decrease of 13.90% year-on-year, and a total revenue of ¥3,250,184,925.95 for the year-to-date, down 27.04% compared to the same period last year[3]. - Net profit attributable to shareholders for Q3 2021 was ¥49,967,509.53, an increase of 59.67% year-on-year, while the year-to-date net profit was ¥141,252,103.97, down 32.12% compared to the previous year[3]. - The basic earnings per share for Q3 2021 was ¥0.0206, up 60.94% year-on-year, while the diluted earnings per share was ¥0.0205, an increase of 61.42%[3]. - In Q3 2021, the company achieved revenue of 119,537.93 million CNY, a decrease of 13.90% year-over-year[16]. - The net profit attributable to shareholders in Q3 2021 was 4,996.75 million CNY, an increase of 59.67% year-over-year[16]. - For the first three quarters of 2021, the company reported revenue of 325,018.49 million CNY, down 27.04% compared to the same period last year[16]. - The net profit attributable to shareholders for the first three quarters of 2021 was 14,125.21 million CNY, a decrease of 32.12% year-over-year[16]. - The company reported a total comprehensive income of ¥85,318,324.12 for Q3 2021, compared to ¥144,316,465.63 in Q3 2020, reflecting a decrease of 40.9%[33]. Assets and Liabilities - Total assets at the end of Q3 2021 were ¥10,611,715,718.79, representing a growth of 4.44% from the end of the previous year[4]. - The company's total liabilities as of September 30, 2021, were CNY 1,735,760,061.71, compared to CNY 1,400,146,062.12 at the end of 2020, indicating an increase of approximately 24%[29]. - The company's total current assets increased to CNY 7,316,723,538.75, up from CNY 5,670,585,894.80 at the end of 2020, representing a growth of approximately 29%[28]. - The company's cash and cash equivalents amounted to CNY 1,818,819,755.01, compared to CNY 1,172,604,462.43 at the end of 2020, reflecting an increase of about 55%[28]. - The total liabilities increased to ¥1,801,928,524.76 from ¥1,466,283,613.12, indicating a rise of 22.8% year-over-year[30]. - The company's total assets reached CNY 10,611,715,718.79 as of September 30, 2021, compared to CNY 10,160,745,437.56 at the end of 2020, reflecting an increase of about 4.4%[29]. Cash Flow - Cash flow from operating activities for the year-to-date was ¥515,643,915.88, a decrease of 4.89% compared to the same period last year[3]. - The net cash flow from operating activities for Q3 2021 was ¥515,643,915.88, a decrease of 4.5% compared to ¥542,130,061.02 in the same period last year[36]. - Total cash inflow from investment activities was ¥5,452,638,794.63, down 29.1% from ¥7,702,030,902.77 in Q3 2020[37]. - The net cash flow from investment activities was -¥835,471,776.23, slightly worse than -¥795,609,068.04 in the previous year[37]. - The total cash outflow from financing activities was ¥178,559,361.46, compared to ¥258,671,962.98 in the same period last year, indicating a reduction of 30.9%[37]. - The company received cash from borrowings amounting to ¥333,204,984.47, an increase from ¥197,946,954.10 in Q3 2020[37]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 120,717, with the largest shareholder holding 10.67% of shares[10]. - The top shareholder, Chen Baozhen, holds 261,062,924 shares, representing 10.67% of the total shares[12]. - Liu Chengyan, the second-largest shareholder, holds 202,507,029 shares, which is 8.27% of the total[12]. - The company has a total of 180,706,886 restricted shares at the beginning of the period, with 6,048,600 shares released during the period[14]. - The number of shares held by the top 10 unrestricted shareholders includes 43,415,919 shares held by a mutual fund[12]. - The company has 151,880,272 shares held by Liu Chengyan that are subject to management lock-up[14]. - The total number of shares held by the top 10 shareholders with unrestricted conditions is 261,062,924 shares[12]. - The company reported a total of 5,171,100 shares released from the first unlock period for 196 incentive objects[15]. Strategic Initiatives - The company has plans for market expansion and new product development, although specific details were not disclosed in the provided content[13]. - The company is focusing on five major business directions for the next five years, including 5G challenges and edge computing[16]. - The company launched a Serverless-based edge computing service in Q3 2021 to enhance user experience[16]. - The company plans to provide comprehensive cloud solutions and managed services to support digital transformation[16]. - The company is committed to developing green data center services through IDC and liquid cooling solutions[16]. Research and Development - Research and development expenses for Q3 2021 amounted to ¥391,460,993.72, a decrease of 15.0% from ¥460,904,541.21 in the same quarter last year[32]. Other Financial Information - The company reported a significant increase in financial assets, with trading financial assets up 36.72% and cash and cash equivalents up 55.11% year-to-date[6]. - The company experienced a 163.69% increase in short-term borrowings compared to the beginning of the year, attributed to new bank loans[7]. - The company reported a 401.74% increase in investment income year-to-date, primarily due to increased returns from financial products[8]. - The net cash flow from financing activities increased by 288.33% year-on-year, mainly due to an increase in bank loans received[8]. - The company has approved a capital increase of CNY 57,000,000 to its wholly-owned subsidiary, Xiamen Wangsu, for the "Wangsu Computing Power Sharing Platform Project"[26]. - The company has extended the construction period of the "Wangsu Computing Power Sharing Platform Project" to December 31, 2022[27]. - The company has applied for credit limits from multiple banks, including China Merchants Bank and China Everbright Bank, to support its financial operations[25]. - The company has adopted the new leasing standards effective January 1, 2021, impacting the financial statements but not adjusting prior comparative data[42]. - The report for the third quarter was not audited, indicating preliminary financial results[42].

Financial Performance - The company reported a revenue of 1.5 billion RMB for the first half of 2021, representing a year-on-year growth of 15%[8] - The net profit attributable to shareholders for the same period was 300 million RMB, an increase of 20% compared to the previous year[8] - The company's operating revenue for the reporting period was ¥2,054,805,588.45, a decrease of 32.99% compared to the same period last year[13] - The net profit attributable to shareholders was ¥91,284,594.44, down 48.37% year-on-year[13] - The net profit after deducting non-recurring gains and losses was -¥18,912,469.10, a decline of 112.03% compared to the previous year[13] - The company’s overall gross margin improved by 0.9 percentage points year-on-year[38] - The company reported a significant increase of 182.51% in net cash flow from financing activities, amounting to approximately ¥78.48 million, due to increased bank loans and reduced loan repayments[54] - The company reported a total comprehensive income of 132,512,689.22 CNY for the current period, compared to a total comprehensive income of 176,789,576.62 CNY in the previous period, indicating a decrease of approximately 25%[179] User and Market Data - User data showed a total of 5 million active users on the platform, marking a 10% increase from the previous half-year[8] - The company serves over 3,000 medium and large clients across more than 70 countries and regions globally[19] - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in market share by the end of 2022[8] - The global CDN market size is expected to increase from USD 9 billion in 2018 to USD 23.2 billion in 2021, indicating a robust market outlook[36] - The number of internet users in China reached 989 million by the end of 2020, with an internet penetration rate of 70.4%[32] Investment and Development - The company plans to invest 200 million RMB in new product development and technology research in the upcoming year[8] - The company is focusing on five major business directions for the next five years, including cloud security and edge computing[19] - The company has launched the Edge Computing Platform (ECP) to provide edge computing services based on globally distributed nodes[22] - The company aims to enhance its cloud services through the MSP platform, which integrates cloud consulting, migration, management, and operation services[35] - The company plans to invest more in CDN, cloud security, cloud computing, and edge computing over the next five years to seize new opportunities in the intelligent era[37] Financial Position and Assets - The total assets at the end of the reporting period were ¥10,358,388,453.65, an increase of 1.95% from the end of the previous year[13] - The company's total assets increased to CNY 11,491,574,863.77 from CNY 11,140,360,204.75 year-over-year[163] - The company's current assets reached CNY 7,014,844,642.91, up from CNY 5,670,585,894.80 at the end of 2020, indicating a growth of about 23.66%[158] - The total equity attributable to shareholders of the parent company was CNY 8,749,251,181.27, up from CNY 8,694,553,134.66, reflecting a growth of about 0.63%[160] Research and Development - R&D investment for the first half of 2021 was 216 million yuan, accounting for 10.52% of operating revenue[38] - The company has established five R&D centers in Xiamen, Shenzhen, Seoul, Silicon Valley, and Moscow, with over 60% of employees engaged in R&D and technical roles[51] - The company has over 600 patents as of June 30, 2021, reflecting its strong focus on technological innovation[47] Risk Management - The management highlighted potential risks including market competition and technological changes, with strategies in place to mitigate these risks[3] - The company faces market risks including policy changes, demand fluctuations, and increased competition, which could impact sales performance[92] - To mitigate market risks, the company plans to enhance market policy analysis, strengthen internal communication, and adjust product offerings quickly in response to demand changes[92] Corporate Governance and Compliance - The company has committed to providing accurate and complete information regarding its major asset restructuring, ensuring no false or misleading statements are made[113] - The company has adhered to its commitment to avoid any direct or indirect competition with its controlled enterprises during the reporting period[113] - The company has promised to reduce and regulate related party transactions, ensuring they are conducted fairly and transparently[114] - The company has not faced any criminal investigations or administrative penalties from regulatory authorities in the past three years[114] Cash Flow and Financing - The net cash flow from operating activities was ¥390,961,710.40, a decrease of 5.06% from the same period last year[13] - The total cash inflow from financing activities was ¥170,041,794.09, compared to ¥116,636,515.81 in the previous year, marking an increase of approximately 45.7%[175] - The net cash flow from financing activities was ¥95,830,592.78, a significant improvement from -¥92,435,482.95 in the same period of 2020[175] Shareholder Information - The total number of shares held by domestic natural persons was 228,006,679, which also decreased by 47,349,793[141] - The company’s stock repurchase and cancellation were approved as part of its equity incentive plan[142] - The company reported a total of 261,062,924 shares held by Chen Baozhen, and 50,626,757 shares held by Liu Chengyan as of the end of the reporting period[149] Social Responsibility - The company donated 150,000 CNY to the "Love Under the Blue Sky" charity during the reporting period, continuing its commitment to social responsibility[111]

Financial Performance - The company's revenue for Q1 2021 was ¥1,038,258,496.74, a decrease of 33.69% compared to ¥1,565,772,237.70 in the same period last year[3] - Net profit attributable to shareholders was ¥41,860,035.16, down 52.08% from ¥87,347,463.17 year-on-year[3] - The net profit after deducting non-recurring gains and losses was ¥11,267,414.16, representing an 80.72% decline from ¥58,448,021.45 in the previous year[3] - Basic earnings per share decreased by 52.37% to ¥0.0171 from ¥0.0359 year-on-year[3] - The company's operating revenue decreased by 33.69% compared to the same period last year, primarily due to a business volume adjustment[12] - In Q1 2021, the company achieved operating revenue of 1,038.26 million CNY, a decrease of 33.69% year-on-year[14] - The net profit attributable to shareholders was 418.60 million CNY, down 52.08% compared to the same period last year[14] - Compared to Q4 2020, the net profit attributable to shareholders increased by 251.24% in Q1 2021[14] Cash Flow and Assets - The net cash flow from operating activities increased significantly by 319.11% to ¥298,586,746.05, compared to ¥71,243,318.13 in the same period last year[3] - The balance of accounts receivable decreased by 45.03% compared to the beginning of the year, mainly due to the maturity and cashing of notes[12] - The company's total assets at the end of the reporting period were ¥10,249,090,858.31, an increase of 0.87% from ¥10,160,745,437.56 at the end of the previous year[3] - The company's total current assets reached ¥6,313,681,378.10, up from ¥5,670,585,894.80 at the end of 2020, reflecting a growth of approximately 11.36%[34] - Cash and cash equivalents increased to ¥1,419,929,027.46 from ¥1,172,604,462.43, representing a growth of about 20.98%[34] - The company's total liabilities were reported at ¥1,527,428,746.70, compared to ¥1,466,283,613.12 at the end of the previous year[36] Shareholder Information - The top shareholder, Chen Baozhen, holds 10.64% of the shares, totaling 261,062,924 shares[6] - The total number of ordinary shareholders at the end of the reporting period was 129,320[6] - Net assets attributable to shareholders increased by 0.31% to ¥8,721,830,905.25 from ¥8,694,553,134.66 at the end of the previous year[3] Business Strategy and Development - The company plans to expand into five key business areas, including edge computing, enterprise network security solutions, and managed service provider capabilities[13] - The company is actively developing new business directions, including security, private cloud, and network products, in response to the challenges posed by 5G trends[13] - The company plans to strengthen its market presence in the government and enterprise sectors, aiming to optimize customer structure and increase new business revenue[14] - The private cloud and hybrid cloud business is now independently operated by EdgeRay Technology, focusing on providing a range of cloud products and services[14] Risk Management - The company faces market risks including policy changes, demand fluctuations, and increased competition, which may impact sales performance[15] - To mitigate risks, the company will enhance market analysis, improve product responsiveness, and invest in R&D for high-value products[16] - The company is also addressing potential management risks by improving governance structures and attracting high-quality management talent[16] Stock Options and Incentives - The company plans to cancel 3.9118 million stock options and repurchase 3.37725 million restricted stocks due to unmet exercise conditions, with a total repurchase amount of approximately RMB 16.95 million at a price of RMB 5.02 per share[18] - The 2020 stock option and restricted stock incentive plan has 1,970.57 million stock options granted to 258 individuals, with a total of 2,297.60 million restricted stocks granted to 208 individuals[19] - The company has amortized RMB 17.12 million of the 2020 stock option and restricted stock incentive plan costs during the reporting period, with a cumulative amortization of RMB 55.60 million[19] Financial Management - The company has increased the limit for purchasing low-risk financial products to RMB 4 billion, with a rolling use of funds allowed within this limit[21] - The company has adjusted the investment scope for low-risk financial products to RMB 3.7 billion and allowed an additional RMB 300 million for medium-risk financial products[21] - The total amount of entrusted financial management by Wangsu Technology is 27,500.00 million, with a low-risk product named Xin Hui 1201[22] Investment Activities - The company has invested ¥2.11 billion (approximately $130.7 million) in acquiring Korean CDN company CDNW and ¥53.4 million (approximately $5.3 million) in acquiring Russian CDN company CDNV, enhancing its global sales and CDN node layout[27] - The cloud security project has a total planned investment of ¥350 million, with ¥222.1 million (approximately 99.38%) already utilized by June 30, 2020[29] - The overseas CDN project has a planned investment of ¥1.05 billion, with ¥539.1 million (approximately 100.77%) already utilized by December 31, 2019[29] Comprehensive Income - The company reported a total comprehensive income of ¥22,555,065.76 for the current period, compared to ¥98,451,079.54 in the previous period[48] - The company recorded an investment income of CNY 12,785,262.27, significantly higher than CNY 637,161.39 in the previous year[42]

Financial Performance - The company's operating revenue for 2020 was ¥5,686,641,002.77, a decrease of 5.34% compared to ¥6,007,497,816.26 in 2019[11]. - Net profit attributable to shareholders was ¥220,001,222.21, an increase of 537.99% from ¥34,483,627.00 in 2019[11]. - The net profit after deducting non-recurring gains and losses was ¥137,258,468.88, up 123.20% from -¥591,523,621.10 in 2019[11]. - The net cash flow from operating activities was ¥797,525,770.49, representing a 30.61% increase from ¥610,596,243.34 in 2019[11]. - Basic and diluted earnings per share were both ¥0.09, an increase of 800.00% from ¥0.01 in 2019[11]. - The total assets at the end of 2020 were ¥10,160,745,437.56, a decrease of 1.65% from ¥10,330,948,687.22 at the end of 2019[11]. - The company's revenue for 2020 was 568,664.10 million CNY, a decrease of 5.34% compared to the previous year, while net profit attributable to shareholders increased by 537.99% to 22,000.12 million CNY[31]. - The company's total revenue for 2020 was ¥5,686,641,002.77, a decrease of 5.34% compared to ¥6,007,497,816.26 in 2019[56]. - CDN business revenue accounted for 94.45% of total revenue, amounting to ¥5,370,960,813.66, with a slight decrease of 1.22% from ¥5,437,144,698.59 in 2019[57]. - Overseas revenue reached ¥190,076,995.50, representing 33.43% of total revenue, showing a growth of 3.04% from ¥184,468,718.67 in 2019[58]. Shareholder Returns - The company reported a total share capital of 2,453,012,204 shares as of December 31, 2020, with a profit distribution plan of cash dividends of 0.1 RMB per 10 shares[2]. - The company’s cash dividend distribution plan reflects a commitment to returning value to shareholders while maintaining operational flexibility[2]. - For the 2020 fiscal year, the company plans to distribute a cash dividend of 0.1 RMB per 10 shares, amounting to 24,448,898.75 RMB (including tax) based on a total share base of 2,444,889,875 shares[115]. - The cash dividend for 2020 represents 100% of the total distributable profit of 4,213,388,544.82 RMB[115]. - The company distributed a cash dividend of 0.3 RMB per 10 shares for the 2019 fiscal year, totaling 72,776,798.25 RMB (including tax) to shareholders[112]. Governance and Compliance - The company emphasizes the importance of accurate financial reporting, with key personnel affirming the completeness and truthfulness of the annual report[2]. - The company’s board of directors has fully attended the meeting to review the annual report, indicating strong governance practices[2]. - The company has committed to providing accurate and complete information during major asset restructuring, ensuring no false statements or significant omissions[119]. - The company has undertaken to avoid any direct or indirect competition with its controlled enterprises, ensuring compliance with relevant laws and regulations[120]. - The company has not faced any criminal investigations or administrative penalties from the securities regulatory authority in the past three years[120]. - The company has committed to timely disclosure of relevant information and documents related to the transaction[121]. - The company has confirmed compliance with regulations regarding related party transactions, ensuring fairness and legality in dealings with controlled enterprises[124]. Risk Management - The company acknowledges potential risks in market, technology, management, and new business development, which are detailed in the future outlook section of the report[2]. - The company faces market risks related to policy changes, market demand fluctuations, and increased competition, and will implement measures to mitigate these risks[105]. - The company recognizes the rapid technological changes in its industry and will focus on timely R&D and talent retention to maintain its core competitiveness[106]. Research and Development - The company invested CNY 49,812.66 million in R&D, representing 8.76% of its operating revenue[49]. - The company has established five R&D centers in Xiamen, Shenzhen, Seoul, Silicon Valley, and Moscow, focusing on continuous technological innovation and product upgrades[36]. - The company has implemented a talent incentive mechanism, with over 60% of its employees engaged in R&D and technical roles, ensuring strong research capabilities[40]. - The company plans to continue increasing R&D investment to respond to market changes and optimize existing products and core technologies[100]. Market Strategy - The company’s future strategies include exploring new markets and enhancing its technological capabilities, although specific numerical targets are not disclosed[2]. - The company continues to expand its CDN and edge computing services to meet the growing demand driven by new technologies such as 5G and AI[19]. - The company is focusing on expanding its enterprise market and enhancing customer stickiness through new business areas like security and cloud computing[50]. - The company plans to strengthen investments in CDN, network security, cloud computing, and edge computing over the next five years[43]. - The company aims to enhance its security capabilities by integrating host security, transmission security, and user access security into a cohesive offering[29]. Subsidiaries and Investments - The company has a wholly-owned subsidiary, Shenzhen Green Cloud Map Technology Co., Ltd., which is involved in its business operations[4]. - The company has established several new subsidiaries, including Shanghai Wangsu Xingchen Data Technology Co., Ltd., with no significant impact on overall operations[97]. - The company made a significant equity investment of ¥100,000,000.00 in Chuang'erxin (Beijing) Education Technology Co., Ltd., acquiring a 16.67% stake[82]. - The company has completed all necessary changes related to the capital increase in Chuang'xin, enhancing its business connections in the education technology sector[187]. Financial Management - The company has a total of 312,560.76 million RMB in entrusted financial management, with a remaining balance of 260,157.86 million RMB[167]. - The company has allocated 370,000 million RMB for low-risk financial products and 30,000 million RMB for medium-risk financial products[168]. - The company’s financial management includes bank, trust, and brokerage products, with no overdue amounts reported[167]. - The total amount of structured deposits managed by the company during the reporting period was significant, reflecting effective cash management strategies[172]. Employee Incentives - The company has implemented an employee stock incentive plan, with adjustments made to the 2016 and 2017 stock option plans[135]. - The stock option and restricted stock incentive plan is part of the company's strategy to enhance employee motivation and retention[199]. - The company approved the grant of 22.3041 million stock options to 300 participants on June 12, 2020[145]. - The total expenses from the 2017 and 2020 stock incentive plans amounted to 12.29 million yuan, accounting for 0.22% of the company's revenue[155].

Financial Performance - Operating revenue for the reporting period was ¥1,388,423,342.36, a decrease of 1.61% year-on-year[3] - Net profit attributable to shareholders was ¥31,294,013.28, representing a significant increase of 200.21% compared to the same period last year[3] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥7,967,311.82, up by 122.65% year-on-year[3] - Basic earnings per share for the reporting period was ¥0.0128, an increase of 200.00% year-on-year[3] - The company reported a total expected return of 762.08 million RMB from structured deposits that are yet to mature[29] - The total operating revenue for Q3 2020 was CNY 1,388,423,342.36, a decrease of 1.9% compared to CNY 1,411,194,902.88 in the same period last year[42] - Net profit for Q3 2020 was CNY 31,207,219.27, a significant recovery from a net loss of CNY 31,146,454.81 in the same quarter last year[44] - The net profit for the third quarter was approximately CNY 207.78 million, down 73.2% from CNY 774.90 million year-over-year[54] - The total comprehensive income for the quarter was approximately ¥12.86 million, compared to a loss of ¥44.69 million in the same period last year[48] Assets and Liabilities - Total assets at the end of the reporting period reached ¥10,365,381,281.84, an increase of 0.33% compared to the end of the previous year[3] - The company's total assets increased to CNY 11,630,776,310.54, up from CNY 11,423,072,401.94 year-over-year, indicating growth in asset base[41] - The company's current assets decreased to ¥5,683,837,488.20 from ¥6,037,284,624.31, reflecting a decline of approximately 5.85%[35] - The company's total liabilities decreased to ¥1,636,009,932.18 from ¥1,699,201,129.87, a reduction of about 3.73%[37] - The total liabilities rose to CNY 2,216,223,565.95, compared to CNY 2,152,306,338.20 in the previous year, reflecting increased short-term borrowings[41] - The company's total liabilities were CNY 2,152,306,338.20, with current liabilities at CNY 1,850,447,807.76[67] Cash Flow - The net cash flow from operating activities was ¥130,331,072.32, a remarkable increase of 1,433.45% compared to the same period last year[3] - The net cash flow from operating activities increased by 164.35% compared to the same period last year, mainly due to an increase in cash received from sales of goods and services[12] - The net cash flow from operating activities for Q3 2020 was CNY 542,130,061.02, an increase of 164.4% compared to CNY 205,083,996.11 in Q3 2019[57] - The total cash outflow for operating activities was CNY 4,168,638,746.44, an increase of 3.5% compared to CNY 4,029,263,374.63 in Q3 2019[57] Shareholder Information - The total number of shareholders at the end of the reporting period was 142,129[6] - The largest shareholder, Chen Baozhen, held 11.94% of the shares, totaling 292,920,924 shares[6] - The company's total equity attributable to shareholders was ¥8,631,219,544.15, reflecting strong shareholder value and financial health[65] Inventory and Receivables - The company's inventory decreased by 38.95% compared to the beginning of the year, mainly due to reduced inventory purchases[11] - The accounts receivable increased to ¥1,744,241,105.40 from ¥1,670,699,072.49, representing a growth of approximately 4.4%[35] - The company's other receivables decreased by 80.39% compared to the beginning of the year, mainly due to a reduction in interest receivables[11] Financial Management and Investments - The company has increased the limit for using idle self-owned funds to purchase low-risk financial products to RMB 4 billion, with a three-year investment period[26] - The company has invested 4,000 million RMB in low-risk financial products with an annualized return of 3.80%[27] - The company has also invested in various low-risk structured products, with amounts ranging from 0.02 million RMB to 2,015.85 million RMB and annualized returns between 0.25% and 2.60%[27] Stock Options and Incentive Plans - The company plans to implement a stock incentive plan, with specific unlocking arrangements for restricted stocks granted in 2017 and 2020[10] - The company decided to cancel 8,533,511 stock options from the 2016 stock option incentive plan due to not meeting exercise conditions[14] - The company completed the registration of 22,304,100 stock options and 24,321,000 restricted shares for 300 and 232 incentive objects, respectively, as of July 6, 2020[23] Future Outlook - Future outlook includes continued focus on market expansion and potential new product development to drive revenue growth[44] - The company has a plan for market expansion through strategic acquisitions and partnerships in the education technology sector[33]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥3,066,599,009.39, representing a decrease of 2.92% compared to ¥3,158,717,626.96 in the same period last year[11]. - The net profit attributable to shareholders of the listed company was ¥176,789,576.62, a significant decline of 78.04% from ¥805,211,088.41 year-on-year[11]. - The net profit after deducting non-recurring gains and losses was ¥157,266,576.07, which is an increase of 23.40% compared to ¥127,443,058.69 in the previous year[11]. - Basic earnings per share decreased by 78.07% to ¥0.0726, down from ¥0.3310 in the previous year[11]. - The diluted earnings per share also fell by 78.09% to ¥0.0722, compared to ¥0.3296 in the same period last year[11]. - The weighted average return on net assets decreased by 6.88 percentage points to 2.03% from 8.91% in the previous year[11]. - The company's total operating revenue for the first half of 2020 was 306,659.90 million yuan, a year-on-year decrease of 2.92%[42]. - The net profit attributable to shareholders for the first half of 2020 was 17,678.96 million yuan, a year-on-year decrease of 78.04%[42]. - The gross margin for the first half of 2020 was reported at 45%, a slight decrease from 48% in the same period last year[101]. Cash Flow and Assets - The net cash flow from operating activities increased by 91.66% to ¥411,798,988.70, up from ¥214,857,990.37 in the same period last year[11]. - The company held cash, time deposits, and financial products totaling 5.265 billion yuan as of June 30, 2020, with a debt ratio of 15.66%[42]. - The company's cash and cash equivalents decreased by CNY 377,959,048.81, representing a decline of 256.94% due to cash outflows from subsidiary disposals[56]. - The company's total assets at the end of the reporting period were approximately 17.11 billion yuan[184]. - The company's cash and cash equivalents at the end of the reporting period were approximately 1.81 billion yuan[184]. - The total liabilities of the company at the end of the reporting period were approximately 7.77 billion yuan[184]. Investments and R&D - The company plans to invest CNY 32,108.76 million in the development of virtualization, containerization, and function computing platforms to enhance its edge computing capabilities[24]. - In the first half of 2020, the company invested CNY 284 million in R&D, a decrease of 19.73% compared to the previous year due to organizational restructuring and a reduction in R&D personnel[49]. - The company plans to pursue strategic acquisitions to enhance its technology capabilities, with a budget of 500 million RMB allocated for potential deals[100]. - Research and development expenses increased by 30% year-on-year, totaling 300 million RMB in the first half of 2020[101]. Market and Business Strategy - The company is expanding its CDN nodes to include storage, computing, transmission, and security functions to meet the growing demand for edge computing[21]. - The company has launched solutions targeting industries such as finance, manufacturing, video, and education to meet evolving customer needs[24]. - The company is committed to enhancing user experience through continuous R&D investment and service reliability improvements[21]. - The company plans to enhance its focus on CDN, cloud security, cloud computing, and edge computing over the next five years[43]. - The company aims to expand its business into the education informationization sector through acquisitions and strategic upgrades[43]. - The company is positioned to leverage its scale advantage to enhance competitive positioning in the CDN industry as it continues to expand its customer base[36]. Shareholder and Governance - The company plans not to distribute cash dividends or bonus shares, nor to increase capital from reserves[2]. - The company reported a commitment to maintain independence in personnel, assets, business, organization, and finance, ensuring no actions that could harm the interests of the company and its shareholders[99]. - The company has adhered to commitments regarding the reduction and regulation of related party transactions, ensuring compliance with market fairness principles[99]. - The company confirmed that there have been no criminal investigations or administrative penalties from regulatory bodies in the last three years[99]. - The management team aims to enhance decision-making capabilities and attract high-quality management talent through improved incentive mechanisms[91]. Compliance and Risk Management - The company emphasizes the importance of adhering to legal regulations and political environments in overseas markets to mitigate international business risks[93]. - The company has not reported any significant impairment in entrusted financial management during the reporting period[82]. - The company has not encountered any media scrutiny during the reporting period[110]. - The company has not been subject to any penalties or corrective actions during the reporting period[110]. Future Outlook - The company expects a revenue growth of 10% for the second half of 2020, projecting a total revenue of approximately 3.3 billion RMB for the full year[100]. - Future outlook remains positive, with management expressing confidence in achieving long-term growth targets despite market challenges[101].

Financial Performance - Total revenue for Q1 2020 was ¥1,565,772,237.70, a decrease of 5.72% compared to ¥1,660,728,704.47 in the same period last year[3]. - Net profit attributable to shareholders was ¥87,347,463.17, down 21.00% from ¥110,561,869.95 year-on-year[3]. - Net profit excluding non-recurring gains and losses was ¥58,448,021.45, a decline of 35.81% compared to ¥91,049,818.78 in the previous year[3]. - Basic earnings per share were ¥0.0359, down 20.93% from ¥0.0454 year-on-year[3]. - Operating profit was 9,249.32 million, down 26.55% year-on-year[13]. - Total profit amounted to 9,547.77 million, reflecting a decline of 24.11% compared to the previous year[13]. - The company reported a net profit of CNY 3,611,842,122.04 in retained earnings, up from CNY 3,524,494,658.86, indicating an increase of 2.5%[36]. - The total comprehensive income for the first quarter was CNY 98,451,079.54, a decrease of 24.7% compared to CNY 130,682,613.11 in the same period last year[46]. Cash Flow and Assets - Net cash flow from operating activities was ¥71,243,318.13, representing a decrease of 21.18% from ¥90,389,826.36 in the same period last year[3]. - Cash flow from operating activities generated a net amount of CNY 71,243,318.13, down from CNY 90,389,826.36 in the previous year, a decline of 21.2%[48]. - Cash flow from investment activities resulted in a net outflow of CNY 315,770,239.29, contrasting with a net inflow of CNY 105,020,881.86 in the same period last year[48]. - As of March 31, 2020, the company's cash and cash equivalents amounted to CNY 1,525,016,843.51, a decrease from CNY 1,646,822,713.05 in the previous period[33]. - Total assets at the end of the reporting period were ¥10,363,111,556.12, an increase of 0.31% from ¥10,330,948,687.22 at the end of the previous year[3]. - The total current assets were CNY 5,605,457,971.91, down from CNY 6,037,284,624.31[33]. - The company reported cash and cash equivalents at the end of the period amounting to CNY 718,439,081.90, down from CNY 1,011,283,055.47 at the end of the previous year[49]. Investments and Expenditures - Research and development expenses increased to CNY 178,974,532.45 in Q1 2020, up from CNY 162,289,426.00 in the previous year, representing a growth of 10.3%[41]. - The company plans to increase R&D investment to enhance responsiveness to market demands and improve product customization capabilities[15]. - The company has adjusted its fundraising projects, reallocating CNY 92,801.42 million from the "Community Cloud" project to the "Wangsu Computing Power Sharing Platform" project[29]. - The total investment for the newly added "Wangsu Computing Power Sharing Platform" project is CNY 173,984.26 million, funded by reallocations from other projects[29]. Liabilities and Equity - The company's total liabilities were CNY 1,682,104,010.69, down from CNY 1,699,201,129.87, a decrease of 1.01%[35]. - Owner's equity totaled CNY 8,681,007,545.43, an increase from CNY 8,631,747,557.35, reflecting a growth of 0.57%[36]. - The total liabilities increased to CNY 2,340,276,494.29 in Q1 2020, compared to CNY 2,152,306,338.20 in the same period last year, marking an increase of 8.7%[39]. Customer and Market Relations - The company reported no significant changes in the nature and structure of its top five customers compared to the same period last year, indicating stable customer relationships[14]. - The company emphasizes the importance of maintaining effective communication with customers to better understand their needs and enhance product offerings[16]. - The company has established a comprehensive market policy analysis and monitoring mechanism to mitigate market risks, including regulatory changes and competition[14]. Stock Options and Employee Incentives - The company has decided to cancel 8,533,511 stock options from its 2016 stock option incentive plan due to unmet exercise conditions[17]. - The company has also canceled 1,932,063 stock options from its 2017 stock option and restricted stock incentive plan due to non-exercise by the designated recipients[17]. - The actual amortization cost for the stock option and restricted stock incentive plan in the reporting period was CNY 1.56 million, with a cumulative amortization cost of CNY 69.36 million[20]. Compliance and Governance - The company has confirmed that there are no violations regarding external guarantees during the reporting period[31]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[31]. - The company has ensured that the disclosure of fundraising usage aligns with actual usage, with no issues of non-compliance reported[29].

Financial Performance - The company's operating revenue for 2019 was ¥6,007,497,816.26, a decrease of 5.21% compared to ¥6,337,460,593.18 in 2018[11]. - The net profit attributable to shareholders for 2019 was ¥34,483,627.00, representing a significant decline of 95.71% from ¥804,151,524.35 in 2018[11]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥591,523,621.10, a decrease of 184.71% compared to ¥698,274,191.49 in 2018[11]. - The company's total assets at the end of 2019 were ¥10,330,948,687.22, down 13.48% from ¥11,940,124,566.31 at the end of 2018[11]. - The company reported a basic earnings per share of ¥0.01 for 2019, a decrease of 96.97% from ¥0.33 in 2018[11]. - The total operating costs for 2019 were ¥4,496,767,560.00, an increase of 6.28% from ¥4,231,024,271.08 in 2018[61]. - The revenue from telecom value-added services was ¥5,975,858,364.29, accounting for 99.47% of total revenue, down 5.69% year-on-year[53]. - The revenue from IDC services was ¥514,111,995.52, representing 8.56% of total revenue, with a year-on-year decrease of 9.96%[53]. - The revenue from CDN services was ¥5,437,144,698.59, which accounted for 90.51% of total revenue, also down 5.41% year-on-year[53]. - The company reported a net profit attributable to shareholders of ¥110,561,869.95 in Q1 2019, compared to ¥694,649,218.46 in Q2 2019, indicating significant fluctuations in quarterly performance[55]. Shareholder Information - The company reported a total share capital of 2,434,015,604 shares as of December 31, 2019, with a profit distribution plan of cash dividends of 0.3 RMB per 10 shares[2]. - The company's cash dividend distribution is based on a total of 2,425,893,275 shares after excluding shares in the repurchase account[2]. - The company plans to distribute a cash dividend of 0.3 yuan per 10 shares, totaling 72,776,798.25 yuan (including tax) for the 2019 fiscal year[129]. - The total number of shares eligible for profit distribution is 2,425,893,275 shares after excluding repurchased shares[129]. - The cash dividend distribution policy has been consistent and complies with the company's articles of association and shareholder resolutions[124]. - The company has repurchased 8,122,329 shares, which do not participate in the profit distribution[124]. - The cash dividend amount distributed in 2018 was 72,984,558.51 yuan (including tax), with a similar dividend of 0.3 yuan per 10 shares[124]. - The total cash dividend (including other methods) for the year was 137,781,908.86 yuan[127]. - In 2019, the cash dividend amount was 72,776,798.25, representing 211.05% of the net profit attributable to ordinary shareholders[130]. - The total cash dividend, including other forms, reached 137,781,908.86, which is 399.56% of the net profit attributable to ordinary shareholders[130]. Risk Factors and Future Outlook - The company emphasizes the importance of risk factors including market, technology, management, and overseas business risks in its future development outlook[2]. - The company's future plans and development strategies are not to be considered as profit forecasts or commitments to investors[2]. - The company plans to enhance its research and development efforts to provide more stable and reliable service experiences for clients[20]. - The company aims to leverage new technologies such as 5G, big data, IoT, and AI to meet the increasing demand for edge computing[21]. - The company plans to enhance its edge computing services to meet the growing demand for digital transformation[25]. - The company will continue to increase R&D investment to respond to market changes and optimize existing products and core technologies[108]. - The company aims to enhance its cloud security and cloud computing business by improving global security coverage and service automation[109]. - The company plans to deepen its focus on the government and enterprise market, increasing investment and strengthening specialized sales teams[112]. - The company will expand its overseas business to increase the proportion of overseas revenue, leveraging its strong R&D capabilities and service experience[113]. - The company is committed to building a comprehensive intelligent business platform with capabilities in transmission, computing, storage, and security[110]. Research and Development - R&D investment for 2019 was 669.62 million CNY, accounting for 11.15% of total revenue[42]. - The total number of patents held by the company reached 324 by December 31, 2019[34]. - The company has established five R&D centers in Xiamen, Shenzhen, Seoul, Silicon Valley, and Moscow[34]. - The number of R&D personnel decreased to 2,099 in 2019, representing 66.17% of the total workforce[69]. - Research and development expenses increased by 12.39% to ¥661,528,188.75, primarily due to increased labor costs for capitalized R&D expenditures[66]. - The company authorized 129 new patents and 37 software copyrights during the reporting period, bringing the total to 324 patents and 266 software copyrights[68]. - The company actively collaborates with universities and industry partners to advance edge computing and IoT technologies[48]. Corporate Governance and Compliance - The company has not engaged in any continuous supervision responsibilities during the reporting period[10]. - The company has fulfilled all commitments made by actual controllers, shareholders, and related parties during the reporting period[132]. - The company has committed to avoiding any direct or indirect competition with its controlled enterprises[134]. - The company has pledged to reduce and regulate related party transactions to ensure compliance with regulations[134]. - The company has ensured the independence of its operations, assets, and finances post-transaction[134]. - The company has maintained compliance with its commitments regarding the repayment of corporate income tax liabilities, ensuring no tax liabilities arose during the reporting period[136]. - The company has committed to not providing financial assistance or guarantees to incentive plan participants, ensuring strict adherence to its equity incentive plan[137]. - The company has not faced any penalties or violations related to its commitments over the reporting period, demonstrating a strong compliance record[137]. - The company has no major litigation or arbitration matters reported during the fiscal year[149]. - The company has maintained a good integrity status with no significant debts due and unpaid by major shareholders[153]. Investments and Acquisitions - The company established CDNetworks Holdings Singapore Pte. Ltd. and acquired 55% of Ningbo Yihui Wangsu Equity Investment Fund Management Co., Ltd., resulting in a 95% ownership post-acquisition[146]. - The company sold 100% of the shares of Xiamen Qinhuai Technology Co., Ltd. and its subsidiaries, as well as 100% of Shenzhen Ruiwang Technology Co., Ltd.[146]. - The company made a significant equity investment of ¥212,500,000.00 in Yunjizhihui Technology Co., Ltd., acquiring a 42.50% stake[81]. - The company has expanded its international presence through acquisitions, including a total investment of RMB 130,701.66 million in a Korean CDN company and RMB 5,341.66 million in a Russian CDN company[87]. - The company sold 100% of its shares in Xiamen Qinhuai for RMB 990 million, contributing RMB 40.56 million to the company's net profit[94]. - The sale of Xiamen Qinhuai is part of the company's strategic focus on CDN, cloud security, and cloud computing[94]. Financial Management - The total amount of entrusted financial management during the reporting period was ¥287,316.69 million, with an unexpired balance of ¥239,071.59 million[185]. - The company invested ¥278,582.86 million in bank financial products and ¥8,733.83 million in broker financial products[185]. - The company achieved a total income of ¥6,358.85 million from various low-risk financial products during the reporting period[187]. - The company utilized idle self-owned funds of ¥300,000 million for financial management, allowing for rolling use of capital[186]. - The annualized return rates for structured deposits ranged from 3.50% to 4.10%[188]. - The company reported no overdue amounts for entrusted financial management during the reporting period[185]. - The income from the Minsheng Bank's financial products included ¥843.47 million from the Cuizhu product and ¥2,697.06 million from the Winner product[186]. - The company has a strong focus on low-risk financial products, with all investments categorized as low-risk or principal-protected floating income[186]. - The structured deposits were primarily aimed at idle fundraising, ensuring capital preservation with floating returns[190]. - The structured deposits were diversified across multiple banks, including Minsheng Bank and China Merchants Bank, to mitigate risk[190]. Employee Stock Incentive Plans - The company decided to cancel 13,000,366 stock options from the 2015 stock option incentive plan due to not meeting the exercise conditions[154]. - The company canceled 6,400,134 stock options from the 2016 stock option incentive plan, leaving a total of 8,533,511 stock options remaining[155]. - The 2017 stock option and restricted stock incentive plan saw adjustments, reducing the number of stock options from 14,738,500 to 14,283,000 due to employee departures[156]. - The company approved the exercise of 4,276,200 stock options and the unlocking of 6,173,400 restricted stocks for eligible participants in the first exercise/unlock period[158]. - The company completed the cancellation of 45,550 stock options and 64,050 stock options from the 2017 incentive plan due to employee departures and other conditions[158]. - The total cost amortized for the 2016 stock option incentive plan during the reporting period was 25.566 million yuan, with a cumulative amortized cost of 12.3142 million yuan[155]. - The company adjusted the exercise price of stock options from 10.19 yuan to 10.16 yuan as part of the 2017 incentive plan[156]. - The company has a total of 419 participants in the first grant of stock options under the 2017 incentive plan, with a total of 13,567,489 stock options granted[157]. - The actual amortization cost for the stock option and restricted stock incentive plan in 2019 was 7.2988 million yuan, with a cumulative amortization cost of 67.7966 million yuan[159]. - The remaining expense for the 2017 stock option and restricted stock incentive plan to be recognized in 2020 is 13.0943 million yuan[161]. Related Party Transactions - The total amount of related party transactions during the reporting period was 335.73 million yuan, with a maximum approved transaction limit of 652 million yuan[170]. - The company engaged in related party transactions with Beijing Qinhuai, with transaction amounts of 110.27 million yuan and 177.81 million yuan for procurement and sales, respectively[170]. - The company reported that the stock incentive plan expenses were allocated across research and development, management, and sales expenses[170]. - The company has not exceeded the approved transaction limits for related party transactions during the reporting period[170]. - The company disclosed that the pricing principles for related party transactions adhered to normal commercial practices under market competition[170]. - The company did not report any significant differences between transaction prices and market reference prices for related party transactions[171]. - The company plans to continue its daily related party transactions as approved in previous board meetings[170]. Market Trends and Strategic Focus - The global CDN market is projected to grow from 9 billion USD in 2018 to 23.2 billion USD by 2021, indicating strong market potential for overseas expansion[105]. - The company plans to focus on CDN services while expanding into cloud security, cloud computing, and edge computing to enhance its global strategy[106]. - The company aims to leverage the increasing demand for integrated solutions beyond single CDN services, including security and application acceleration[104]. - The Chinese government is prioritizing network infrastructure development, which is expected to boost the CDN and cloud computing sectors[100]. - The company is adapting to customer needs shifting from "single service" to "overall solutions" in response to evolving business requirements[104]. - The establishment of CDNetworks Holdings Singapore Pte. Ltd. during the reporting period is part of the company's strategy to enhance its operational footprint[97]. - The company is committed to advancing key technologies in internet and cloud computing infrastructure to support its growth strategy[106]. Corporate Changes and Compliance - The company has undergone significant changes in its major subsidiaries, including the sale of several subsidiaries, which are detailed in the report[97]. - The company will continue to strengthen its governance structure and internal controls to improve management efficiency and adapt to its growing scale[115]. - The company will focus on protecting its intellectual property rights and enhancing overseas IP protection efforts[108]. - The company has not reported any significant changes in the measurement attributes of its major assets during the reporting period[78]. - The company has not faced any bankruptcy reorganization issues during the reporting period[149]. - The company faced a reprimand from the Shenzhen Stock Exchange for a violation related to stock trading by a senior executive, who reduced holdings without adhering to the required notice period[151]. - The senior executive, Shu Minjian, reduced his holdings by 6,734,402 shares, representing 0.2768% of the total share capital, leading to a commitment not to sell shares for 12 months following the reduction[152].

Financial Performance - Operating revenue for the reporting period was ¥1,411,194,902.88, representing a decline of 10.23% year-on-year[3] - Net profit attributable to shareholders was -¥31,229,665.86, a decrease of 119.05% compared to the same period last year[3] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥35,183,072.20, down 124.42% year-on-year[3] - Basic earnings per share for the reporting period was -¥0.0128, a decrease of 119.02% compared to the same period last year[3] - The weighted average return on net assets was -0.33%, a decrease of 2.29 percentage points compared to the previous year[3] - The net cash flow from operating activities for the year-to-date was ¥205,083,996.11, down 25.23% year-on-year[3] - Total operating revenue for Q3 2019 was ¥1,411,194,902.88, a decrease of 10.23% compared to ¥1,572,018,318.95 in the same period last year[34] - Net profit for Q3 2019 was -¥31,146,454.81, compared to a net profit of ¥162,478,490.71 in Q3 2018, indicating a significant decline in profitability[35] - The company's operating revenue for the current period is ¥1,047,349,049.79, a decrease of 17.4% compared to ¥1,268,404,125.33 in the previous period[38] - The net profit for the current period is ¥15,764,284.29, a decrease of 92.3% compared to ¥205,984,966.38 in the previous period[39] - The total comprehensive income for the current period is ¥15,764,284.29, down from ¥205,984,966.38, indicating a significant decline[39] Asset Management - Total assets at the end of the reporting period amounted to ¥11,245,560,639.35, a decrease of 5.82% compared to the end of the previous year[3] - The company's total assets decreased to ¥11,245,560,639.35 from ¥11,940,124,566.31, representing a decline of approximately 5.8%[29] - Total current assets increased to ¥6,215,513,370.03 as of September 30, 2019, compared to ¥6,102,027,977.18 at the end of 2018, reflecting a growth of approximately 1.85%[27] - The balance of trading financial assets increased by 66.84% compared to the beginning of the year, primarily due to an increase in wealth management products[10] - The balance of long-term equity investments increased by 31.09% compared to the beginning of the year, mainly due to new investments in Yunji Zhihui Technology Co., Ltd.[10] - The balance of fixed assets decreased by 38.37% compared to the beginning of the year, primarily due to the disposal of subsidiaries[10] - The company's goodwill remained relatively stable at ¥612,671,227.37, compared to ¥616,213,830.10, showing a slight decrease of about 0.6%[27] Liabilities and Equity - The total liabilities decreased to ¥1,846,588,850.82 from ¥3,256,752,547.43, a reduction of about 43.3%[28] - The equity attributable to shareholders increased to ¥9,410,582,514.01, compared to ¥8,671,613,254.33, marking a growth of approximately 8.5%[29] - The balance of short-term borrowings decreased by 87.59% compared to the beginning of the year, mainly due to the repayment of bank loans[10] - The company reported a decrease in short-term borrowings to ¥136,427,223.25 from ¥1,099,122,656.09, a significant reduction of approximately 87.6%[28] Cash Flow and Investments - The net cash flow from investing activities increased by 127.64% year-on-year, primarily due to the proceeds from the disposal of subsidiaries[12] - The company disposed of non-current assets resulting in a gain of ¥712,765,113.04 during the reporting period[4] - The total cash inflow from investment activities reached CNY 11,753,392,871.53, significantly higher than CNY 5,485,950,451.94 in the previous year, indicating a 114.5% increase[48] - The net cash flow from investment activities was CNY 323,922,420.82, recovering from a negative cash flow of CNY -1,171,811,970.54 in the same quarter last year[48] - The company received CNY 10,007,962,763.87 from investment recoveries, a significant increase from CNY 5,342,443,043.18 in the previous year, marking an 87.5% rise[48] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 149,770[6] - The company repurchased 8,122,329 shares, accounting for 0.33% of the total share capital, with a total transaction amount of CNY 65,005,110.61[22] - The maximum transaction price for the repurchased shares was CNY 8.04 per share, while the minimum was CNY 7.93 per share[22] - The company’s major shareholders, Chen Baozhen and Liu Chengyan, terminated the share transfer framework agreement due to failure to reach consensus on key terms[20] Research and Development - Research and development expenses increased to ¥165,279,855.15 in Q3 2019, up from ¥123,114,010.53, highlighting a focus on innovation[34] - Research and development expenses increased significantly to ¥140,554,103.66, up 93.5% from ¥72,611,116.97 in the previous period[38] - Research and development expenses increased to ¥379.60 million, up 30.2% from ¥291.40 million in the same period last year[44] Compliance and Governance - The company reported no violations regarding external guarantees during the reporting period[24] - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[24] - The company has not issued any warnings regarding potential significant changes in cumulative net profit compared to the previous year[24] - The report for the third quarter was not audited, which may impact the reliability of the financial data presented[61]