Corporate Governance - The company has established a governance structure that complies with relevant laws and regulations, ensuring independent operations and protecting minority shareholders' rights[91]. - The board of directors consists of 7 members, including 3 independent directors, meeting the requirements of relevant regulations[92]. - The company maintains independence from its controlling shareholder in terms of business operations, personnel, and financial management[94]. - The company has a robust internal management and control system to enhance operational efficiency and governance standards[91]. - The company has received a civil judgment supporting its claim for repayment from Xingyao Zhiju, although the realization of this claim remains uncertain[86]. - The company is actively working on improving its performance evaluation and incentive mechanisms for management personnel[92]. - The company emphasizes transparent information disclosure, ensuring all shareholders have equal access to information[93]. - The company has established a clear asset ownership structure, with complete ownership of its technology, patents, trademarks, equipment, and real estate[95]. - The company has maintained a stable governance structure with a board of directors, independent directors, and a supervisory board[95]. - The company has a structured approach to assess the performance of senior management, impacting their bonuses and remuneration adjustments[115]. - The company continues to focus on enhancing its governance structure and performance evaluation processes for its leadership team[115]. Financial Performance - The company's operating revenue for 2022 was ¥676,394,166, a decrease of 5.60% compared to ¥716,526,546 in 2021[22]. - The net profit attributable to shareholders was ¥13,955,824, representing a significant increase of 156.55% from a loss of ¥24,680,289 in 2021[22]. - The cash flow from operating activities increased by 78.12% to ¥82,761,018, compared to ¥46,464,637 in the previous year[22]. - The total assets at the end of 2022 were ¥937,473,085, an increase of 16.11% from ¥807,373,603 at the end of 2021[22]. - The net assets attributable to shareholders rose by 125.41% to ¥673,184,297 from ¥298,654,117 in 2021[22]. - The basic earnings per share improved to ¥0.0303 from a loss of ¥0.0576 in 2021, marking a 152.60% increase[22]. - The company reported a total of ¥661,746,044 in main business revenue after deducting rental income, down from ¥701,737,541 in 2021[22]. - The fourth quarter revenue reached ¥200,279,489, contributing to a total annual revenue of ¥676,394,166[25]. - The company recorded a net profit of ¥2,611,151 in the fourth quarter, a recovery from previous losses in earlier quarters[25]. - Non-recurring gains totaled ¥44,054,800 in 2022, compared to ¥14,497,521 in 2021, indicating improved financial performance[30]. Market Position and Strategy - The company is positioned as one of the largest third-party professional technical service providers in the industry, leveraging its extensive experience and established reputation[41]. - The company maintains stable long-term partnerships with major clients, including telecommunications operators and equipment manufacturers, ensuring a steady revenue stream[39]. - The telecommunications service industry is experiencing increased competition, with smaller network optimization service providers facing risks of elimination or reduced market share[37]. - The rapid development of 5G base stations and increasing capital expenditure from major operators are expected to drive market growth and expand business opportunities[40]. - The company plans to continue focusing on mobile communication services and explore opportunities in the 5G application business[76]. - The company is entering the virtual reality industry, which has uncertain development cycles and market acceptance risks for its new products based on the licensed "Three-Body" IP[87]. Research and Development - The company has established a comprehensive R&D, quality control, and management system, enhancing its competitive edge in the telecommunications service industry[40]. - Research and development expenses for 2022 were ¥27,212,749.97, an increase of 2.49% compared to ¥26,552,830.78 in 2021[54]. - The R&D expenditure as a percentage of operating revenue rose to 4.02% in 2022 from 3.71% in 2021[56]. - The number of R&D personnel increased by 8.42% to 219 in 2022, with the proportion of R&D staff rising to 16.86% from 15.42% in 2021[56]. - The company is focusing on enhancing its service and product combination advantage by developing a network big data analysis system to support intelligent network optimization[44]. Cash Flow and Investments - Net cash flow from operating activities increased by 78.12% to ¥82,761,017.66 in 2022, compared to ¥46,464,636.93 in 2021[57]. - Cash and cash equivalents increased by 406.40% to ¥195,826,538.19 in 2022, compared to a decrease of ¥63,911,641.82 in 2021[57]. - Investment activities generated a net cash outflow of ¥23,436,515.09 in 2022, a significant decrease from a net inflow of ¥13,761,512.99 in 2021[58]. - The company’s financing activities resulted in a net cash inflow of ¥136,641,373.52 in 2022, compared to a net outflow of ¥123,333,995.01 in 2021, marking a 210.79% increase[58]. - The total investment during the reporting period was ¥81,714,066.68, a significant increase of 1,374.98% compared to the previous year[65]. Shareholder Information - The company’s stock code is 300025, and it is listed under the name "Huaxing Chuangye" on the Shenzhen Stock Exchange[3]. - The company has a total of 19,082 shareholders as of the end of the reporting period[185]. - The major shareholder, Hangzhou Zhaoxiang, holds 24.06% of the total shares, amounting to 75,120,000 shares[185]. - The company’s shareholding structure includes 99.98% of unrestricted shares held by domestic investors[177]. - The company reported a total of 46,074,010 shares held by Hangzhou Zhaoxiang, the largest shareholder, representing a significant portion of the unrestricted shares[186]. Employee and Management - The company has a total of 1,299 employees, with 1,147 in technical roles, representing approximately 88.4% of the workforce[122]. - The company’s employee training plan emphasizes high-skill and professional technical training to enhance talent development[124]. - The total remuneration paid to directors, supervisors, and senior management in 2022 amounted to 2.8648 million yuan[115]. - The chairman, Zhu Dongcheng, received a total pre-tax remuneration of 446,400 yuan[115]. - The general manager and CFO, Shen Li, received a total pre-tax remuneration of 746,400 yuan[115]. Environmental and Social Responsibility - The company emphasized its commitment to green development and has actively explored digital applications in energy consumption and carbon reduction[136]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[136]. - The company has not reported any major environmental violations or issues during the reporting period, maintaining a clean compliance record[136]. - The company invested in the Huaxing Chuangye Technology Park to retrofit smart meters and build an IoT digital carbon control platform, achieving digital transformation of energy consumption and carbon emissions[137]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% based on new product launches and market expansion strategies[112]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[112]. - A strategic acquisition of a local tech firm is expected to be finalized by Q3 2023, which will enhance the company's technological capabilities[112].

Financial Performance - The company's revenue for Q3 2022 was ¥179,955,993.54, representing a 15.32% increase year-over-year, while the year-to-date revenue decreased by 1.99% to ¥476,114,677.50[5] - Net profit attributable to shareholders for Q3 2022 was ¥4,570,265.99, a significant increase of 1,095.20% year-over-year, with a year-to-date net profit of ¥11,344,673.46, up 188.33%[5] - The basic earnings per share for Q3 2022 was ¥0.0095, reflecting a 955.56% increase year-over-year, while the diluted earnings per share was ¥0.0094, up 944.44%[5] - Total operating revenue for Q3 2022 was CNY 476,114,677.50, a decrease of 1.36% from CNY 485,777,841.23 in the same period last year[27] - The net profit for Q3 2022 was CNY 11,110,063.81, compared to a net loss of CNY 12,904,349.69 in Q3 2021[29] - The company reported a significant increase in investment income, reaching CNY 1,828,842.18, compared to a loss of CNY 62,456.34 in the previous year[27] - Other comprehensive income after tax for Q3 2022 was CNY 66,714,173.43, a substantial recovery from a loss of CNY 127,629.66 in the previous year[29] Assets and Equity - Total assets at the end of Q3 2022 reached ¥1,017,228,448.41, a 25.99% increase compared to the end of the previous year[5] - The company's equity attributable to shareholders increased by 122.60% to ¥664,791,486.97 compared to the end of the previous year[5] - As of September 30, 2022, total current assets increased to RMB 838,224,391.69 from RMB 625,966,133.22 at the beginning of the year, representing a growth of approximately 33.9%[25] - The total assets of the company as of September 30, 2022, amounted to RMB 1,017,228,448.41, compared to RMB 807,373,602.67 at the beginning of the year[25] - The company’s non-current assets totaled RMB 179,004,056.72, slightly down from RMB 181,407,469.45 at the beginning of the year[25] - The equity attributable to shareholders of the parent company increased to CNY 664,791,486.97 from CNY 298,654,116.66, reflecting a strong recovery in shareholder value[26] Cash Flow - Cash flow from operating activities for the year-to-date period was ¥41,623,103.97, showing a substantial increase of 332.92%[5] - The company experienced a 332.92% increase in net cash flow from operating activities, driven by improved project collection[15] - The cash inflow from operating activities totaled CNY 600,540,127.87, a decrease of 4.4% compared to CNY 626,159,578.58 in the previous quarter[31] - The net cash flow from operating activities increased significantly to CNY 41,623,103.97, compared to CNY 9,614,605.53 in the previous quarter[31] - The total cash and cash equivalents at the end of the period reached CNY 249,377,214.79, a significant increase from CNY 36,887,181.89 at the end of the previous quarter[32] - The company reported a decrease in cash received from operating activities, which was CNY 585,275,137.05, compared to CNY 611,698,804.31 in the previous quarter[31] Shareholder Information - The total number of common shareholders at the end of the reporting period is 19,209[17] - The largest shareholder, Hangzhou Zhaoxiang Network Technology Co., Ltd., holds 24.06% of shares, totaling 121,194,010 shares[17] - The company completed a private placement of 75,120,000 shares at a price of RMB 4.59 per share, raising a total of RMB 344,800,800[21] - The company completed a directed share issuance to its controlling shareholder, significantly impacting its cash and equity positions[11] - The company’s major shareholders have pledged or frozen a significant number of shares, impacting their liquidity[17] Financial Management - The company reported a 38.93% decrease in financial expenses year-over-year, attributed to a reduction in financing scale and interest expenses[14] - The company reported a significant reduction in financial expenses, which fell to CNY 9,210,754.60 from CNY 15,081,761.07 year-over-year[27] - The cash outflow for debt repayment was CNY 171,000,000.00, down from CNY 282,000,000.00 in the previous quarter, reflecting improved cash management[32] Investment Activities - Investment income increased by 3,028.19% year-over-year, as the company did not recognize investment losses from its associate, Xingyao Zhiju[14] - The company received CNY 344,800,800.00 from investment absorption, indicating strong investor confidence[32] - The cash outflow from investing activities was CNY 60,902,295.99, up from CNY 16,656,144.63 in the previous quarter, resulting in a net cash flow from investing activities of -CNY 18,844,782.24[31] - The company’s total cash inflow from investment activities was CNY 42,057,513.75, a notable increase from CNY 21,839,344.11 in the previous quarter[31]

Client Dependency - The company's revenue heavily relies on three major clients: China Mobile and its subsidiaries, Huawei Technologies, and ZTE, accounting for 82.06% of total revenue in the first half of 2022[7]. - The company reported a significant increase in reliance on these clients, with sales to them representing 77.21% in 2021 and 73.22% in 2020[7]. - The company maintains long-term stable cooperation with major clients such as telecom operators and equipment manufacturers, enhancing its competitive advantage[38]. Financial Performance - The company reported a revenue of CNY 296,158,683.96 for the first half of 2022, a decrease of 10.18% compared to the same period last year[27]. - The net profit attributable to shareholders was CNY 6,774,407.47, representing a significant increase of 151.22% year-on-year[27]. - The net cash flow from operating activities improved to CNY 41,608,701.98, a remarkable increase of 258.93% compared to the previous year[27]. - The basic earnings per share rose to CNY 0.0158, up 151.13% from a loss of CNY 0.0309 in the same period last year[27]. - The total assets at the end of the reporting period were CNY 778,049,833.47, a decrease of 3.63% from the end of the previous year[27]. - The company reported a net loss of CNY 91,295,378.27 in the first half of 2022, compared to a loss of CNY 98,069,785.74 in the same period of 2021[148]. - The total equity attributable to shareholders increased to CNY 305,449,265.21 from CNY 298,654,116.66, reflecting a growth of 2.6%[148]. Research and Development - The company is focusing on network optimization as a key business area, with human resources being the primary cost driver[11]. - The company has a comprehensive R&D and quality control system, which supports its competitive edge in the bidding process[38]. - The total R&D investment for the period was ¥13,531,675.58, a decrease of 5.33% from ¥14,293,138.43 in the same period last year[50]. - R&D investment focused on the "Hua Xing Unit Active Preventive Monitoring System" and "Digital Twin Project," with completion expected by August and October 2022 respectively, aimed at expanding industry business[56]. - Research and development expenses were CNY 13.53 million, slightly down from CNY 14.29 million in the same period last year[155]. Market Environment and Competition - The company operates in a highly competitive third-party mobile communication technology service industry, which poses risks to its profitability[6]. - The company faces risks related to technological and product updates, emphasizing the need for continuous R&D to maintain competitiveness[8]. - The company acknowledges the risk of losing professional technical personnel, which is crucial for its competitive edge in the industry[10]. - The rapid development of 5G base stations in China is expected to create a favorable market environment, with a target of nearly 367,000 base stations by 2025[39]. - The government policies and industry plans are expected to further expand the market space for the company, particularly in the 5G and new infrastructure sectors[41]. Strategic Investments and Partnerships - The company is actively involved in market expansion and strategic partnerships, as evidenced by its investment in Xingyao Zhiju and the acquisition of Jiesheng Communication[12]. - The company has a risk associated with the investment in Xingyao Zhiju, which is facing operational difficulties, potentially impacting the company's financials[78]. - The company has committed to not engaging in any competitive business activities that may conflict with its main operations, both domestically and internationally[92]. - The company is exploring potential mergers and acquisitions to accelerate growth and market penetration[169]. Cash Flow and Financial Management - The company achieved a significant increase in cash flow from operating activities, amounting to ¥41,608,701.98, a 258.93% improvement compared to a negative cash flow of ¥26,180,653.37 in the previous year[50]. - The company reported a decrease in financial expenses by 32.88%, primarily due to reduced interest expenses from lower financing scale compared to the previous year[50]. - The cash inflow from financing activities was 83,000,000.00 CNY, while cash outflow totaled 102,188,094.79 CNY, resulting in a net cash flow of -19,188,094.79 CNY[165]. - The company paid 76,926,138.42 CNY to employees, which is a slight decrease from 76,993,021.56 CNY in the previous period[162]. Corporate Governance and Compliance - The company has not reported any significant litigation or arbitration matters during the reporting period, indicating a stable legal environment[100]. - There were no major related party transactions or asset acquisitions during the reporting period, reflecting a conservative approach to financial management[102][103]. - The company has not engaged in any significant mergers or acquisitions, maintaining its current operational structure[102][103]. - The financial report for the first half of the year has not yet been audited[97]. Future Outlook - The company plans to expand its market presence and invest in new product development to enhance competitive advantage[169]. - Future guidance indicates an expected revenue growth of 10% for the next quarter, driven by new product launches[169]. - The company aims to enhance operational efficiency through strategic mergers and acquisitions in the upcoming quarters[172]. - The future outlook remains positive, with a projected revenue growth of 10% for the next fiscal year[172].

Financial Performance - The company's revenue for Q1 2022 was ¥145,287,827.57, a decrease of 10.95% compared to ¥163,147,743.88 in the same period last year[3] - The net profit attributable to shareholders was -¥1,688,697.91, an improvement of 71.43% from -¥5,911,473.06 year-on-year[3] - Operating profit for the current period is -¥2,118,463.67, an improvement from -¥5,773,235.43 in the previous period[22] - Net profit for the current period is -¥1,785,412.34, compared to -¥5,816,114.75 in the previous period, indicating a significant reduction in losses[22] Cash Flow - The net cash flow from operating activities increased by 121.15% to ¥4,754,744.20, compared to -¥22,483,639.85 in the previous year[3] - Cash flow from operating activities generated a net amount of ¥4,754,744.20, a recovery from a negative cash flow of -¥22,483,639.85 in the previous period[25] - The company received cash inflows from financing activities totaling ¥35,000,000.00, an increase from ¥20,000,000.00 in the previous period[25] - The company reported a net cash outflow from financing activities of -¥8,680,478.22, an improvement from -¥12,298,375.00 in the previous period[26] Assets and Liabilities - Total assets at the end of the reporting period were ¥776,188,653.08, down 3.86% from ¥807,373,602.67 at the end of the previous year[3] - The company's total liabilities as of March 31, 2022, were RMB 477.93 million, down from RMB 507.27 million at the beginning of the year[18] - The company's total equity as of March 31, 2022, was RMB 298.25 million, a slight decrease from RMB 300.10 million at the beginning of the year[19] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 24,127[9] Investment and Expenses - Financial expenses decreased by 39.14% year-on-year, attributed to a reduction in financing scale and interest expenses[5] - Investment income increased by 180.99% year-on-year, as the company did not recognize investment losses from its associate[5] - The company reported a significant decrease in non-operating expenses by 92.89%, mainly due to reduced penalties and compensation payments compared to the previous year[6] Litigation and Agreements - The company is currently involved in litigation to recover the unpaid share transfer amount, with a court ruling requiring payment of RMB 23.306 million plus overdue payment penalties[14] - The company signed a share transfer agreement with Shanghai Maojing to transfer 82% of Xinzong Communication for a total price of RMB 139.4 million[12] - Shanghai Maojing has paid a total of RMB 116.094 million for the share transfer, but failed to pay the final installment of RMB 23.306 million by the deadline[14] Inventory and Receivables - Accounts receivable decreased from RMB 505.77 million to RMB 475.53 million, indicating a reduction of approximately 5.93%[17] - Inventory increased from RMB 46.38 million to RMB 53.99 million, reflecting an increase of approximately 16.93%[17] Other Financial Metrics - The weighted average return on equity improved to -0.57%, up 1.28% from -1.85% in the same period last year[3] - Other comprehensive income after tax for the current period is ¥63,934.45, compared to ¥31,960.17 in the previous period, showing an increase of 99.83%[23] - Basic and diluted earnings per share for the current period are both -¥0.0039, an improvement from -¥0.0138 in the previous period[23]

Financial Performance - The company reported a significant decrease in performance, with a main business impairment loss of CNY 20.35 million, primarily due to provisions for receivables from Shanghai Maojing and Xingyao Zhiju[8]. - The company's operating revenue for 2021 was ¥716,526,546.39, a decrease of 9.79% compared to ¥794,262,006.32 in 2020[31]. - The net profit attributable to shareholders was -¥24,680,288.70, showing an improvement of 83.56% from -¥150,078,091.85 in the previous year[31]. - The net cash flow from operating activities was ¥46,464,636.93, a significant increase of 1,226.62% compared to -¥4,124,254.07 in 2020[31]. - The total assets at the end of 2021 were ¥807,373,602.67, down 15.88% from ¥959,809,678.04 at the end of 2020[31]. - The basic earnings per share improved to -¥0.0576 from -¥0.3502 in 2020, reflecting an 83.55% increase[31]. - The company reported a total of ¥701,737,541.04 in main business income after deducting rental income from operating revenue[32]. - The weighted average return on net assets was -7.94%, an improvement of 29.61% from -37.55% in 2020[31]. - The company experienced a quarterly revenue of ¥230,748,705.16 in Q4 2021, the highest among the four quarters[34]. - The net profit attributable to shareholders in Q3 2021 was positive at ¥382,384.75, marking a recovery from previous quarters[34]. - The company received government subsidies amounting to ¥664,457.57 in 2021, down from ¥3,212,519.87 in 2020[37]. - The company achieved operating revenue of 716.53 million yuan in 2021, a year-on-year decrease of 9.79%, while the net profit attributable to shareholders was -24.68 million yuan, an increase of 83.56% year-on-year[45]. - The company incurred impairment losses of 20.35 million yuan, primarily due to provisions for equity transfer receivables and loans, which significantly impacted profitability[45]. Revenue and Client Dependency - Revenue dependency on major clients remains high, with sales to China Mobile and its subsidiaries, Huawei, and ZTE accounting for 77.21% of total revenue in 2021[10]. - The revenue from network optimization services was ¥693,750,041.75, accounting for 96.82% of total revenue, down 8.69% from ¥759,789,284.79 in the previous year[55]. - The company received orders worth ¥97,012,345.09 from China Mobile, representing 13.54% of the current operating revenue[50]. - The top five customers accounted for 91.34% of the total annual sales, with the largest customer contributing ¥329,359,317.74, or 45.97% of total sales[66]. Operational Stability and Risks - The company has not made significant changes to its main business during the reporting period, indicating stability in its operations[8]. - The company faces risks from market competition, as the mobile communication technology service industry is highly competitive with many small-scale enterprises[9]. - The company is aware of the risks associated with the loss of professional technical personnel, which is crucial for maintaining its competitive edge[12]. - The company has a guarantee amount of CNY 28 million related to its investment in Xingyao Zhiju, which poses a repayment risk due to the poor operating status of its main asset, Jiesheng Communication[15]. - The company is focusing on network optimization services, where labor costs are a significant part of production costs, indicating potential risks if labor costs rise sharply[97]. Governance and Management - The company has maintained a strong governance structure, ensuring compliance with relevant laws and regulations, and has not experienced any significant discrepancies in governance practices[101]. - The board of directors consists of 7 members, including 3 independent directors, ensuring a balanced and compliant governance structure[102]. - The company has established independent financial management practices, including separate bank accounts and independent tax obligations, ensuring financial autonomy from the controlling shareholder[106]. - The company has maintained a stable management team, with all current directors and supervisors in their positions since November 2020[110]. - The total remuneration for directors, supervisors, and senior management in 2021 amounted to CNY 2.5914 million[128]. - The company has a comprehensive salary and assessment management system for senior management, ensuring alignment with annual work goals[128]. - The independent directors provided valuable professional opinions on the company's operational compliance and decision-making processes[136]. Research and Development - The company's R&D investment amounted to ¥26,552,830.78 in 2021, representing 3.71% of total revenue, a slight decrease from 3.85% in 2020[70]. - The number of R&D personnel decreased by 38.41% from 328 in 2020 to 202 in 2021, with a significant drop in the proportion of R&D staff from 22.67% to 15.42%[70]. - The company is developing a 5G network testing software to enhance its product offerings and improve operational efficiency[69]. - The FlyTool platform for 5G is expected to streamline project operations and reduce costs through integrated tools[69]. Corporate Social Responsibility - The company actively fulfilled its corporate social responsibilities during the pandemic, providing communication support to various regions affected by COVID-19[154]. - The company has established an emergency response team to ensure communication needs during major disasters, such as the severe flooding in Henan Province[154]. - The company emphasizes green development and utilizes ICT technology to explore digital empowerment applications in energy consumption and carbon reduction[152]. - There were no administrative penalties related to environmental issues during the reporting period, and the company is not classified as a key pollutant discharge unit[152]. Share Issuance and Financial Stability - The company plans to issue shares at a price of 4.59 yuan per share to specific investors, with the issuance approved by regulatory authorities[48]. - The company intends to issue shares to specific investors to strengthen its capital structure and improve financial stability[95]. - The company will ensure that the funds used for the subscription of new shares are from its own resources, with no financial assistance from related parties[159]. - The company has committed to maintain a shareholding ratio of over 8% even if the frozen shares are executed and obtained by new shareholders[159]. Legal and Compliance Matters - The company has not engaged in any activities related to market competition with its controlling shareholder, maintaining operational independence[105]. - The company has no significant litigation or arbitration matters during the reporting period[169]. - The company has not experienced any bankruptcy restructuring during the reporting period[170]. - The company has no major related party transactions during the reporting period[171].

Financial Performance - The company's revenue for Q3 2021 was ¥156,043,340.77, a decrease of 20.12% compared to the same period last year[3]. - Total operating revenue for Q3 2021 was ¥485,777,841.23, a decrease of 8.5% from ¥530,793,381.60 in Q3 2020[20]. - Net loss for Q3 2021 was ¥12,904,349.69, compared to a net loss of ¥38,408,084.07 in Q3 2020, representing a 66.5% improvement[21]. - The company's basic earnings per share for the period was ¥0.0009, unchanged from the previous year[3]. - Basic and diluted earnings per share for Q3 2021 were both -0.0300, an improvement from -0.0878 in Q3 2020[22]. Cash Flow - The net cash flow from operating activities increased by 118.90% year-to-date, totaling ¥9,614,605.53[3]. - The net cash flow from operating activities was ¥9,614,605.53, a significant recovery from a negative cash flow of ¥50,870,554.91 in the previous year[24]. - The net cash inflow from investment activities was 5,183,199.48 CNY, a significant decrease compared to 94,859,497.86 CNY in the previous period[25]. - The total cash inflow from financing activities was 226,500,000.00 CNY, down from 387,752,083.33 CNY in the previous period[25]. - The net cash outflow from financing activities was -90,651,690.81 CNY, compared to -137,772,399.52 CNY in the previous period[25]. - The cash and cash equivalents at the end of the period were 36,887,181.89 CNY, down from 61,763,166.59 CNY in the previous period[25]. - The company received 191,500,000.00 CNY in cash from borrowings during the financing activities[25]. - The cash outflow for debt repayment was 282,000,000.00 CNY, compared to 428,976,831.00 CNY in the previous period[25]. Assets and Liabilities - Total assets at the end of the reporting period were ¥825,092,478.10, a decrease of 14.04% from the end of the previous year[3]. - Total liabilities decreased to ¥513,758,404.74 from ¥635,443,625.33, reflecting a reduction of approximately 19.2%[20]. - The total equity attributable to shareholders of the parent company was ¥310,232,336.38, down from ¥323,203,037.14, a decline of about 4.0%[20]. - Accounts receivable decreased from 563,397,329.24 yuan at the end of 2020 to 499,661,195.61 yuan, a reduction of about 11.3%[16]. - Short-term borrowings decreased from 344,543,586.56 yuan to 241,822,735.44 yuan, a reduction of approximately 29.8%[17]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 25,433[12]. - The largest shareholder, Shanghai Fanyin Technology Co., Ltd., holds 11.88% of shares, totaling 50,901,030 shares[12]. - The top ten shareholders hold a significant portion of the company's shares, with the top three alone accounting for 19.03% of total shares[12]. Expenses - Total operating costs for Q3 2021 were ¥504,231,405.26, down 9.5% from ¥557,451,480.46 in the same period last year[20]. - The company experienced a 142.94% increase in other operating expenses, primarily due to increased compensation payments[9]. - Research and development expenses remained stable at ¥20,070,999.81, slightly down from ¥20,130,743.03 in the previous year[20]. - The company reported a decrease in sales expenses to ¥14,548,525.17 from ¥18,317,508.97, a reduction of approximately 20.0%[20]. - Financial expenses decreased by 30.45% year-on-year, attributed to a reduction in financing scale and interest expenses[9]. Other Information - The company has no other non-recurring profit and loss items to report[5]. - The company did not undergo an audit for the third quarter report[27]. - The company plans to issue shares to Hangzhou Zhaoxiang Network Technology Co., Ltd. at a price of 4.59 yuan per share, not exceeding 25% of the total share capital before the issuance[14]. - The company has received approval from the China Securities Regulatory Commission for the stock issuance on July 27, 2021[14]. - Other comprehensive income after tax for Q3 2021 was -¥127,629.66, compared to -¥1,077,522.33 in Q3 2020, indicating a significant reduction in losses[21]. - Investment income decreased by 101.16% due to a lack of large gains from the disposal of subsidiaries compared to the previous year[9]. - The cash inflow from the disposal of subsidiaries and other operating units was 10,000,000.00 CNY[25]. - The cash outflow for other investment activities was 7,500,000.00 CNY[25]. - The net cash inflow from investment activities totaled 21,839,344.11 CNY in the current period[25].

Client Dependence - The company reported a significant reliance on three major clients, with sales revenue from China Mobile, Huawei, and ZTE accounting for 77.88% of total revenue in the first half of 2021[8]. - The company reported a significant reliance on major clients, with sales to China Mobile and its subsidiaries, Huawei, and ZTE accounting for 77.88% of total revenue in the first half of 2021[83]. Financial Performance - The company's operating revenue for the reporting period was ¥329,734,500.46, a decrease of 1.71% compared to the same period last year[37]. - The net profit attributable to shareholders was a loss of ¥13,225,455.85, an improvement of 65.20% year-on-year[37]. - The net cash flow from operating activities was a negative ¥26,180,653.37, showing a 63.08% improvement compared to the previous year[37]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of ¥22,258,470.83, a 55.22% improvement year-on-year[37]. - The weighted average return on net assets was -4.18%, an improvement of 4.14% compared to the previous year[37]. - The company's operating revenue for the current period is approximately ¥329.73 million, a decrease of 1.71% compared to the same period last year[58]. - Operating costs decreased by 3.29% to approximately ¥289.25 million, resulting in an improved gross margin of 12.28%[61]. - The company reported a net loss of CNY 86,614,952.89 in retained earnings, compared to a loss of CNY 73,389,497.04 at the end of 2020, indicating an increase in losses[156]. - The company reported a decrease in comprehensive income of 10,018,723.24 yuan for the current period[186]. Assets and Liabilities - Total assets at the end of the reporting period were ¥872,325,242.88, down 9.11% from the end of the previous year[37]. - The company's total assets decreased to CNY 748,580,858.85 as of June 30, 2021, down from CNY 796,599,702.96 at the end of 2020[160]. - The company's current assets totaled CNY 687,901,105.40, down from CNY 775,426,320.32 at the end of 2020, indicating a decrease of about 11.3%[154]. - The company's total liabilities were CNY 561,316,872.89, down from CNY 635,443,625.33 at the end of 2020, showing a reduction of approximately 11.6%[156]. - The total liabilities as of June 30, 2021, were CNY 494,194,948.80, down from CNY 532,195,069.67 at the end of 2020, a reduction of 7.1%[160]. Research and Development - The company has a comprehensive R&D and quality control system, enhancing its competitive edge in the bidding process[44]. - The company is focusing on technological research and development to expand its business scope, particularly in response to customer needs during emergency situations like the pandemic and floods[49]. - Research and development expenses remained stable at approximately ¥14.29 million, a slight decrease of 0.57% year-on-year[58]. - Research and development expenses for the first half of 2021 were CNY 14,293,138.43, slightly down from CNY 14,374,758.55 in the same period last year[161]. - The company is focusing on enhancing its research and development capabilities to drive future growth and innovation[182]. Market Position and Strategy - The company maintains a stable client base, primarily consisting of telecom operators and equipment manufacturers, with long-term partnerships with major players like Huawei and Ericsson[44]. - The company is positioned to benefit from the ongoing expansion of 5G infrastructure, with an anticipated annual addition of 1 million 5G base stations in China in 2021[46]. - The company has established a strong competitive position as one of the largest third-party professional technical service providers in the network optimization sector, serving major telecom operators and equipment manufacturers[55]. - The company aims to enhance management efficiency by implementing new business management and reimbursement systems, which are expected to improve overall operational efficiency[50]. - The company is actively collaborating with major equipment manufacturers like Huawei and ZTE to strengthen its business operations[49]. - The management indicated plans for market expansion and potential mergers and acquisitions to strengthen its competitive position[182]. Cash Flow and Financing - The net cash flow from investment activities decreased by 85.99% to approximately ¥12.58 million, primarily due to the repayment of loans from the previous year[58]. - The company reported a net cash outflow from financing activities of approximately ¥63.04 million, a 55.35% reduction compared to the previous year[58]. - The company generated rental income of approximately 7.18 million yuan from leasing part of its headquarters office building, contributing to over 10% of the total profit for the reporting period[121]. - The cash flow from operating activities showed a notable improvement, suggesting better operational efficiency and cost management strategies[175]. Corporate Governance and Compliance - The company actively fulfilled its corporate social responsibilities and improved transparency through various communication channels with investors[95]. - The company is not classified as a key pollutant discharge unit and did not face any administrative penalties for environmental issues during the reporting period[95]. - The company maintained compliance with relevant laws and regulations, ensuring the protection of employee rights and satisfaction[95]. - The company has not reported any significant risks affecting the performance of major contracts[126]. - The company has not engaged in any significant asset or equity sales during the reporting period[80]. Shareholder Information - The total number of shares after the recent changes is 428,530,562, with 99.98% being unrestricted shares[134]. - The total number of shareholders at the end of the reporting period is 26,333, with significant changes in shareholding among major shareholders[139]. - The largest shareholder, PanYin Technology, holds 11.88% of the shares, totaling 50,901,030, with a decrease of 7,503,400 shares during the reporting period[139]. - The company has implemented a lock-up period for departing executives, with a 75% lock-up for the first six months post-departure[135]. Risks and Challenges - The company faces risks related to market competition, with a fully competitive environment in the third-party mobile communication technology service industry[83]. - The company has identified risks associated with the loss of professional technical personnel, which are crucial for maintaining competitive advantage in the industry[84]. - The company has provided guarantees amounting to CNY 35,000,000 for the acquisition loan of its joint venture, Starry Intelligence, which is at risk due to the poor operating conditions of its main asset, Jiesheng Communication[86].

Financial Performance - The company's revenue for Q1 2021 was ¥163,147,743.88, representing a 3.10% increase compared to ¥158,242,451.38 in the same period last year[9]. - The net profit attributable to shareholders was a loss of ¥5,911,473.06, an improvement of 80.66% from a loss of ¥30,573,691.21 in the previous year[9]. - The basic earnings per share improved to -¥0.0138, an 80.65% increase from -¥0.0713 in the previous year[9]. - The net profit for Q1 2021 was -¥5,816,114.75, compared to -¥30,867,117.93 in the same period last year, showing a significant reduction in losses[49]. - The total comprehensive income for Q1 2021 was -¥5,784,154.58, compared to -¥30,714,115.38 in the same period last year[49]. - The net cash flow from operating activities improved to -¥22,483,639.85, a 64.70% reduction in loss compared to -¥63,693,155.25 in the same period last year[9]. Assets and Liabilities - Total assets at the end of the reporting period were ¥924,942,646.71, down 3.63% from ¥959,809,678.04 at the end of the previous year[9]. - The company's current assets totaled CNY 739,732,421.74, down from CNY 775,426,320.32 at the end of 2020, indicating a decrease of about 4.60%[38]. - The company's total liabilities as of March 31, 2021, were CNY 563,732,000.00, compared to CNY 570,000,000.00 at the end of 2020, reflecting a decrease of approximately 1.09%[39]. - Total liabilities decreased to CNY 606,360,748.58 from CNY 635,443,625.33[41]. - The total assets decreased to CNY 772,199,673.53 from CNY 796,599,702.96[43]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 28,089[13]. - The largest shareholder, Shanghai Fanyin Technology Co., Ltd., holds 11.88% of the shares, totaling 50,901,030 shares, which are currently frozen[13]. - Hangzhou Zhaoxiang directly holds 3.75% of the company's shares and has voting rights over an additional 11.88% through entrusted voting rights, making it the largest single shareholder[24]. - The company has completed the delivery of 16,074,010 shares to Hangzhou Zhaoxiang, while 50,901,030 shares remain under judicial freeze, posing a risk to control stability[24]. - The company plans to issue shares to Hangzhou Zhaoxiang to increase its holding ratio and consolidate control, pending approval from the Shenzhen Stock Exchange and the China Securities Regulatory Commission[24][26]. Cash Flow and Financing Activities - Cash and cash equivalents decreased by 33.26% compared to the beginning of the period, mainly due to payments for goods and repayment of borrowings[18]. - Cash inflow from financing activities totaled 20,000,000.00 CNY, down from 48,000,000.00 CNY in the previous period, leading to a net cash flow of -12,298,375.00 CNY[57]. - The ending balance of cash and cash equivalents was 74,083,457.07 CNY, a decrease from 86,808,141.74 CNY in the previous period[57]. - The company reported a total cash outflow from operating activities of 221,016,086.08 CNY, compared to 315,363,160.58 CNY in the previous period[56]. Operational Highlights - The company is actively developing 5G network testing software to enhance service capabilities and reduce third-party software procurement costs[21]. - The FlyTool platform (5G version) is expected to be completed by the end of March 2021, aimed at improving efficiency and reducing costs in network optimization[21]. - Research and development expenses increased to ¥2,999,653.09, up from ¥2,233,001.84, indicating a focus on innovation[51]. Risks and Future Plans - The company faces risks from market competition, reliance on major clients, and the need for continuous technology and product updates[22][23]. - The company plans to continue focusing on its main business and aims to achieve its annual operational goals[22].

Financial Performance - The company reported a significant loss due to the impact of COVID-19, with a long period of project disruptions and a total asset impairment loss of CNY 43.0072 million[6]. - The company's long-term equity investment loss from its subsidiary amounted to CNY 50.6293 million, reflecting the financial strain on its operations[6]. - The company's operating revenue for 2020 was ¥794,262,006.32, a decrease of 24.14% compared to ¥1,046,948,302.01 in 2019[31]. - The net profit attributable to shareholders was -¥150,078,091.85 in 2020, an improvement of 29.79% from -¥213,755,509.80 in 2019[31]. - The net cash flow from operating activities was -¥4,124,254.07, a decline of 102.97% compared to ¥138,733,070.94 in 2019[31]. - The total assets at the end of 2020 were ¥959,809,678.04, down 40.46% from ¥1,612,173,326.53 at the end of 2019[31]. - The net assets attributable to shareholders decreased by 32.22% to ¥323,203,037.14 at the end of 2020 from ¥476,821,981.03 at the end of 2019[31]. - The basic earnings per share for 2020 was -¥0.3502, an improvement of 29.79% from -¥0.4988 in 2019[31]. - The company reported a significant decrease in net profit due to asset impairment provisions totaling ¥43,007,208.14 and financial expenses of ¥25,844,250.24[85]. - The company reported a net profit of -106,972,219.79 CNY for the year 2020, resulting in a total distributable profit of -268,560,257.45 CNY, leading to no cash dividends or stock bonuses being issued[116]. Revenue and Client Dependency - Revenue dependency on major clients remains high, with sales to China Mobile and its subsidiaries, Huawei, and ZTE accounting for 73.22% of total revenue in 2020[10]. - The company’s main business includes mobile communication technology services, focusing on network construction, maintenance, and optimization, with a stable customer base of telecom operators and equipment manufacturers[40]. - The company has maintained long-term stable cooperation with major clients such as Huawei, ZTE, Nokia, and Ericsson, enhancing its market position[40]. - The total sales amount from the top five customers was ¥713,790,922.59, accounting for 89.87% of the annual total sales[78]. - The company relies heavily on three major clients: China Mobile and its subsidiaries, Huawei Technologies, and ZTE, with sales revenue from these clients accounting for 62.14%, 58.26%, 78.40%, and 73.22% of total revenue from 2017 to 2020[109]. Operational Challenges - The company has faced challenges in maintaining its competitive edge due to rapid technological advancements in the industry[11]. - There is a risk of increased costs, particularly in labor, which could adversely affect the company's financial management[14]. - The company acknowledges the risk of losing professional technical personnel, which is critical for maintaining its competitive advantage in the market[13]. - The company has experienced a high level of competition in the third-party mobile communication technology service industry, which may impact profitability[109]. - The company is at risk of losing its core technology advantage if it fails to keep pace with industry developments and product updates[109]. Strategic Focus and Future Plans - The company plans to continue its focus on network optimization, which is its core business area, despite the competitive pressures in the industry[6]. - The rapid development of the 5G industry presents significant growth opportunities, with an expected investment of CNY 20 trillion in 5G base station construction over the next five years[42]. - The company plans to focus on 5G construction and related services, aiming to enhance its core business and expand into new application areas[107]. - The company intends to strengthen internal control and standardize operational processes to lay a foundation for future development[108]. - The company aims to optimize its performance evaluation model and enhance talent stability and motivation through improved incentive schemes[108]. - The company plans to pursue refinancing to inject vitality into its operations and optimize its asset-liability structure[108]. Shareholder and Governance Issues - The company does not plan to distribute cash dividends or issue bonus shares for the reporting period[19]. - The company is undergoing a share issuance process to consolidate control, with the current major shareholder holding 15.63% of the total shares[18]. - As of January 21, 2021, a significant portion of the company's voting rights (50,901,030 shares, or 11.88%) is under judicial freeze, posing a risk to control stability[112]. - The company has committed to maintaining the legal rights of all shareholders and will not engage in unfair practices that could harm the company's interests[121]. - The company has established agreements among major shareholders to act in concert, affecting voting rights and share transfers[172]. Research and Development - The company is actively engaged in research and development to keep up with technological advancements in the industry, which is crucial for maintaining competitive advantage[109]. - Research and development expenses decreased by 35.32% to ¥30,558,410.40 in 2020 from ¥47,243,081.91 in 2019[81]. - The company’s R&D investment in 2020 amounted to ¥30,558,410.40, representing 3.85% of total revenue, a decrease from 4.51% in 2019[82]. - The number of R&D personnel decreased to 328 in 2020, accounting for 22.67% of the workforce, up from 16.88% in 2019[82]. Management and Leadership Changes - The company experienced a significant leadership change with the resignation of multiple board members and executives on November 2, 2020, due to an early board re-election[190]. - The new management team includes experienced professionals from various sectors, enhancing the company's strategic capabilities[193][194][195]. - The company is focusing on expanding its market presence and enhancing its operational management through the new leadership team[191][193]. - The management changes are expected to drive innovation and improve decision-making processes within the company[190]. - The leadership transition is part of a broader strategy to align the company's goals with market demands and enhance shareholder value[190]. Compliance and Regulatory Matters - The company has committed to fulfilling its obligations regarding immediate return measures as per the latest regulations from the China Securities Regulatory Commission[121]. - The company has taken measures to ensure compliance with legal and regulatory requirements regarding related party transactions[120]. - The company has not reported any non-standard audit opinions for the current financial period[124]. - There were no significant lawsuits or arbitration matters reported during the fiscal year[131].

Financial Performance - Net profit attributable to shareholders decreased by 67.09% to CNY 372,143.76 for the current period[9] - Operating revenue decreased by 11.60% to CNY 195,339,370.26 compared to the same period last year[9] - Basic earnings per share decreased by 66.67% to CNY 0.0009[9] - The weighted average return on net assets was 0.07%, down by 0.08%[9] - Net profit attributable to the parent company decreased by 922.34% year-on-year, impacted by COVID-19, increased project costs, and higher credit impairment losses[19] - Operating cash flow decreased by 354.93% compared to the same period last year, significantly affected by slow project collections due to COVID-19[20] - The company reported a net loss attributable to shareholders for Q3 2020 of CNY 3,254,070.35, compared to a profit of CNY 1,000,000 in the previous year[42] - The company's net profit for Q3 2020 was -38,408,084.07 CNY, compared to a net profit of 4,039,668.65 CNY in Q3 2019, indicating a significant decline[51] - The total profit for Q3 2020 was -39,591,539.65 CNY, compared to a profit of 3,145,654.85 CNY in Q3 2019, marking a drastic downturn[51] Assets and Liabilities - Total assets decreased by 32.38% to CNY 1,090,185,673.11 compared to the end of the previous year[9] - Cash and cash equivalents decreased by 61.65% compared to the beginning of the period, mainly due to significant loan repayments during the reporting period[17] - Accounts receivable decreased by 37.74% compared to the beginning of the period, primarily due to the disposal of Xinzong Communication[17] - Inventory decreased by 38.51% compared to the beginning of the period, mainly due to the disposal of Xinzong Communication[17] - Total liabilities decreased to CNY 523,256,492.02 from CNY 686,773,418.27 year-on-year[39] - The company’s total equity decreased to CNY 349,238,591.80 from CNY 372,496,216.00 year-on-year[39] - Total assets as of September 30, 2020, were CNY 872,495,083.82, a decrease from CNY 1,059,269,634.27 at the end of 2019[39] - The company holds inventory valued at CNY 209,732,497.94 and other receivables amounting to CNY 18,525,596.38[65] Shareholder Information - The total number of shareholders at the end of the reporting period was 29,760[13] - The largest shareholder, Shanghai Fanyin Technology Co., Ltd., held 13.63% of the shares[13] - The company did not engage in any repurchase transactions during the reporting period[14] Cash Flow - The net cash flow from operating activities was CNY -50,870,554.91, a decrease of 354.93%[9] - Cash and cash equivalents at the end of Q3 2020 stood at 61,763,166.59 CNY, down from 67,531,173.43 CNY in Q3 2019, reflecting liquidity challenges[58] - The cash inflow from operating activities was 740,468,913.58 CNY, down from 919,444,874.05 CNY in the previous year, highlighting a decrease in operational cash generation[58] - The net cash flow from financing activities was -137,772,399.52 CNY, worsening from -65,614,039.57 year-over-year, indicating increased reliance on debt[59] Other Financial Metrics - Non-recurring gains and losses included CNY 7,723,735.50 from the disposal of non-current assets[10] - Research and development expenses for the quarter were CNY 2,207,959.78, a decrease from CNY 2,929,605.65 in the previous year[46] - The company incurred a credit impairment loss of CNY 420,207.88 during the quarter[47] - The company reported a significant other comprehensive loss of CNY -1,229,386.28, compared to a gain of CNY 143,098.06 in the previous year[43] Compliance and 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 their affiliates during the reporting period[27] - The company has committed to not engaging in any competitive business activities that may harm its interests or those of its minority shareholders[24] - The company has not undergone an audit for the third-quarter report, which may affect the reliability of the financial data presented[71] - The company is implementing new revenue and leasing standards starting in 2020, which may impact future financial reporting[71]