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]

Financial Performance - Net profit attributable to shareholders decreased by 33.29% to ¥754,431.37 for the current period[9] - Operating revenue for the current period was ¥195,590,754.72, down 11.49% year-on-year[9] - The company reported a net loss of ¥37,245,147.85 for the year-to-date, a significant decline of 913.98%[9] - Basic earnings per share decreased by 33.33% to ¥0.0018[9] - The weighted average return on net assets was 0.16%, down 8.76% compared to the same period last year[9] - Net profit attributable to the parent company decreased by 913.98% year-on-year, impacted by COVID-19 and increased project costs[19] - Operating cash flow net amount decreased by 364.84% compared to the same period last year, significantly affected by slow project collections due to COVID-19[19] - The company reported a net loss in retained earnings of CNY -184,199,909.30 compared to CNY -161,588,037.66 in the previous period[38] - The total profit for Q3 2020 was a loss of CNY 39.08 million, compared to a profit of CNY 3.15 million in the previous year[51] - The company reported a total comprehensive income of CNY -709,029.42 for Q3 2020, compared to CNY 1,206,824.57 in the previous year[43] Assets and Liabilities - Total assets decreased by 32.42% to ¥1,089,535,799.27 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 period[17] - Accounts receivable decreased by 37.69% compared to the beginning of the period, primarily due to the disposal of Xinzong Communication[17] - Inventory decreased by 38.75% compared to the beginning of the period, mainly due to the disposal of Xinzong Communication[17] - Total current assets amounted to ¥833,274,472.37, down from ¥1,390,691,412.46, a decline of about 40.06%[32] - Total liabilities decreased to CNY 523,271,575.09 from CNY 686,773,418.27 year-over-year[38] - Current liabilities totaled CNY 523,271,575.09, down from CNY 654,247,093.93 in the previous period[38] - Total assets amounted to CNY 1,612,173,326.53, with current assets at CNY 1,390,691,412.46, and non-current assets at CNY 221,481,914.07[64] - Total liabilities reached CNY 1,132,916,438.09, with current liabilities at CNY 1,100,390,113.75 and non-current liabilities at CNY 32,526,324.34[66] Shareholder Information - The number of ordinary 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, totaling 58,404,430 shares[13] - The company’s control will change as Shanghai Fanyin transfers 3.75% of shares to Ruian Chuangxiang, with the remaining shares' voting rights also delegated[20] - The company confirmed that all commitments made to minority shareholders were fulfilled on time[23] Cash Flow - The net cash flow from operating activities was negative at -¥52,846,781.80, a decrease of 364.84%[9] - The net cash flow from operating activities for Q3 2020 was -52,846,781.80 CNY, a decrease from 19,954,514.14 CNY in Q3 2019[58] - Total cash inflow from operating activities was 739,522,376.36 CNY, down from 919,444,874.05 CNY year-over-year[58] - The cash outflow from operating activities was 792,369,158.16 CNY, compared to 899,490,359.91 CNY in the previous year[58] - The net cash flow from investing activities was 94,420,053.62 CNY, a significant improvement from -2,218,618.35 CNY in Q3 2019[59] - Cash inflow from financing activities totaled 382,752,083.33 CNY, down from 561,900,000.00 CNY in the same quarter last year[59] Operational Efficiency - Operating costs decreased to CNY 60,384,116.36 from CNY 62,432,127.34, reflecting a reduction of approximately 3.3%[45] - The total operating costs for the year-to-date period were CNY 556,568,290.70, down from CNY 758,444,216.86, indicating a reduction of approximately 26.6%[49] - Research and development expenses for Q3 2020 were CNY 5,755,984.48, a decrease of 48.3% from CNY 11,150,004.77 in the same quarter last year[45] - The company experienced a significant increase in credit impairment losses, reporting CNY -2,625,674.97 compared to CNY 15,385,875.77 in the previous year[41] Compliance and Commitments - The company reported no violations regarding external guarantees during the reporting period[25] - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[26] - The company did not engage in any research, communication, or interview activities during the reporting period[27] - The company has made commitments to avoid any competitive activities with its main business[23] - There are no performance forecasts applicable for the year 2020[24] - The company has not undergone an audit for the third quarter report, which may affect the reliability of the financial data presented[70]

Financial Performance - The company's operating revenue for the reporting period was ¥335,454,011.34, a decrease of 37.05% compared to the same period last year [29]. - The net profit attributable to shareholders was -¥37,999,579.22, representing a decline of 1,203.12% year-on-year [29]. - The net cash flow from operating activities was -¥70,914,746.15, a decrease of 85.79% compared to the previous year [29]. - The total assets at the end of the reporting period were ¥1,097,117,957.60, down 31.95% from the end of the previous year [29]. - The company's operating profit was -¥39,773,013.25, a decline of 1,500.77% year-on-year [45]. - The company's weighted average return on equity was -8.32%, down 8.77% from the previous year [29]. - The company's total liabilities decreased to CNY 658,217,709.27 from CNY 1,132,916,438.09, indicating a reduction of 41.8% [148]. - The total assets decreased to CNY 892,304,640.41 from CNY 1,059,269,634.27, reflecting a decline of 15.8% [152]. Customer Base and Revenue Sources - In the first half of 2020, the company's revenue from China Mobile and its subsidiaries accounted for 13.61% of total operating income, down from 32.18% in 2019, indicating a diversification in customer base [7]. - The company is focusing on expanding its customer base beyond major clients like China Mobile to reduce dependency risks [7]. - The company has been gradually increasing its sales proportion to other telecom operators and communication equipment suppliers, indicating a strategic shift in its client portfolio [8]. - Revenue from major customer China Mobile accounted for 13.61% of total revenue in the first half of 2020, down from 32.18% in 2019, indicating a diversification strategy [76]. Investment and Financial Management - The company has acknowledged the risks associated with investment and acquisition projects, which may not yield expected returns due to industry uncertainties [12]. - The company reported a credit impairment loss of ¥19.25 million, an increase of 48.36% due to provisions for receivables [57]. - The company has a financial assistance agreement with its controlling shareholder, providing up to ¥40 million at an interest rate of 7% over a period not exceeding 30 months [95]. - The company has approved a total of 10,000 million in guarantees during the reporting period, with actual occurrences totaling 2,500 million [103]. Operational Strategies and Future Plans - The company plans to enhance its management capabilities to mitigate risks associated with rapid growth and extensive service coverage across the country [9]. - The company is actively developing new technologies and products to keep pace with industry advancements and maintain competitive advantages [10]. - The company plans to focus on 5G optimization and business data analysis as part of its strategy for the upcoming construction peak in 2020 [37]. - The company plans to continue developing new technologies and products to maintain competitiveness in the rapidly evolving telecommunications industry [76]. Risk Management and Challenges - The company recognizes the importance of retaining skilled technical personnel to maintain its competitive edge in the mobile communication technology service industry [11]. - The company has recognized risks related to market competition, reliance on major customers, and management challenges due to rapid growth [76]. - The company is committed to improving its product offerings and management strategies to address potential risks and enhance operational efficiency [14]. Shareholder and Equity Information - The total number of shares after the recent changes is 428,530,562, with 93.13% being unrestricted shares [121]. - The largest shareholder, Fan Yin Technology, holds 15.63% of the total shares, amounting to 66,975,040 shares, which are currently frozen [127]. - The company has not implemented any employee incentive plans during the reporting period [91]. - The company reported a total of 45,998,653.26 CNY in dividends from Mingxun Network, with 20,000,000 CNY paid by December 31, 2019, and the remaining 25,998,653.26 CNY to be paid by December 31, 2020 [116]. Cash Flow and Liquidity - Cash and cash equivalents decreased significantly to ¥36.34 million, down from ¥129.37 million, a reduction of 2.97% in total asset proportion [58]. - The cash flow from operating activities was -¥70,914,746.15, a decline of 85.79% year-on-year, impacted by the COVID-19 pandemic [50]. - The cash inflow from financing activities totaled 215,500,000.00 CNY, while outflow was 356,677,799.15 CNY, leading to a net cash flow of -141,177,799.15 CNY, contrasting with a positive net cash flow of 39,002,937.35 CNY in the prior period [164]. Legal and Compliance Matters - There were no significant lawsuits or arbitration matters during the reporting period [88]. - The company has not engaged in any major related party transactions during the reporting period [92]. - The half-year financial report was not audited [86]. Research and Development - Research and development expenses decreased by 35.25% to ¥14,374,758.55, mainly due to reduced R&D investment in Xinzong Communication [50]. - The company is enhancing its smart network optimization analysis platform to support 5G network data collection and analysis, expanding its service offerings [46].

Financial Performance - Total revenue for Q1 2020 was ¥158,242,451.38, a decrease of 32.09% compared to ¥233,023,763.31 in the same period last year[8] - Net profit attributable to shareholders was -¥30,573,691.21, representing a decline of 313.49% from -¥7,394,080.66 year-on-year[8] - Basic and diluted earnings per share were both -¥0.0713, a decrease of 312.14% compared to -¥0.0173 in the same period last year[8] - Operating revenue decreased by 32.09% year-on-year, significantly impacted by the COVID-19 pandemic[17] - The net profit attributable to the parent company decreased by 313.49% year-on-year, due to delays in project acceptance and settlement caused by the pandemic[18] - The net cash flow from operating activities decreased by 48.14% year-on-year, also affected by the pandemic[18] - The company reported a significant increase in prepayments, which rose to CNY 50,209,382.01 from CNY 8,261,968.58, marking an increase of over 507%[39] - The net profit for Q1 2020 was a loss of CNY 30,867,117.93, compared to a loss of CNY 7,775,825.09 in the same period last year, indicating a significant decline[50] - The total comprehensive income for Q1 2020 was a loss of CNY 30,714,115.38, compared to a loss of CNY 8,013,671.14 in the previous year[51] - The company's operating profit for Q1 2020 was a loss of CNY 31,075,076.76, compared to a loss of CNY 8,752,714.40 in the previous year[50] Cash Flow and Assets - Net cash flow from operating activities was -¥63,693,155.25, down 48.14% from -¥42,994,655.94 in the previous year[8] - The company's cash and cash equivalents decreased by 42.80% compared to the beginning of the period, primarily due to payments for goods and repayment of bank loans[16] - The company's cash flow from investing activities increased by 810.41% year-on-year, primarily due to the repayment of loans and acquisition-related payments[18] - Cash inflow from financing activities totaled 48,000,000.00 CNY, while cash outflow was 93,187,167.37 CNY, leading to a net cash flow of -45,187,167.37 CNY, contrasting with a positive net cash flow of 6,742,520.98 CNY in the prior period[59] - The ending balance of cash and cash equivalents was 86,808,141.74 CNY, down from 73,328,787.24 CNY in the previous period[59] - The company reported a total cash inflow from operating activities of 52,945,395.35 CNY, a decrease from 100,775,948.47 CNY in the prior period[60] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 38,422[11] - The largest shareholder, Shanghai Fanyin Technology Co., Ltd., held 15.63% of the shares, totaling 66,975,040 shares[11] Operational Developments - No significant new products, technologies, market expansions, or mergers and acquisitions were reported during the quarter[10] - The company is actively developing new technologies, with progress on 4G and 5G network optimization tools completed by March 2020[22] - The company is focusing on 5G network optimization and new application data value analysis, having completed technical reserves and personnel training for the upcoming 5G construction peak in 2020[23] - The company is enhancing its big data intelligent application platform to support 5G, including user complaint handling and network issue pinpointing[24] - The company signed significant contracts with China Mobile, including a framework contract worth approximately 37.42 million and another for about 43.02 million[20] Financial Position - Total assets at the end of the reporting period were ¥1,547,757,913.24, a decrease of 4.00% from ¥1,612,173,326.53 at the end of the previous year[8] - Net assets attributable to shareholders decreased by 6.40% to ¥446,286,360.18 from ¥476,821,981.03 at the end of the previous year[8] - Accounts receivable stood at CNY 911,559,338.55, down from CNY 941,921,487.12, indicating a decrease of about 3.2%[39] - Inventory increased to CNY 231,624,083.31 from CNY 209,732,497.94, reflecting an increase of approximately 10.4%[39] - Total liabilities decreased to CNY 630,727,268.32 from CNY 686,773,418.27[46] - Total equity as of March 31, 2020, was CNY 362,825,799.64, down from CNY 372,496,216.00[46] Risk Management and Compliance - The company recognizes the risks associated with market competition and management due to its rapid growth and extensive service coverage[25] - The company has committed to reducing and standardizing potential related party transactions to ensure fairness and compliance with market principles[31] - There were no violations regarding external guarantees during the reporting period[33] - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[34] Research and Development - Research and development expenses for Q1 2020 amounted to CNY 2,233,001.84, down from CNY 2,986,337.51 in the previous year[53] - The company reported a financial asset impairment loss of CNY 2,539,812.26 in Q1 2020[54] - The company is committed to continuous R&D to keep pace with industry technology upgrades and maintain its competitive edge[26] Other Information - The company has not yet audited the first quarter report, indicating that the figures may be subject to change[64] - The company did not apply new revenue and leasing standards for the first quarter of 2020, which may affect future financial reporting[63]

Revenue and Financial Performance - In 2019, the company's revenue from China Mobile and its subsidiaries accounted for 32.18% of total revenue, compared to 30.29% in 2018[7]. - The company's operating revenue for 2019 was ¥1,046,948,302.01, a decrease of 23.24% compared to ¥1,363,927,579.23 in 2018[27]. - The net profit attributable to shareholders was -¥213,755,509.80, representing a decline of 2,054.88% from a profit of ¥10,934,429.94 in the previous year[27]. - The net cash flow from operating activities was ¥138,733,070.94, down 22.58% from ¥179,184,286.28 in 2018[27]. - The total assets at the end of 2019 were ¥1,612,173,326.53, a decrease of 18.96% from ¥1,989,419,739.46 at the end of 2018[27]. - The net assets attributable to shareholders decreased by 37.10% to ¥476,821,981.03 from ¥758,041,217.67 in 2018[27]. - The company reported a basic earnings per share of -¥0.4988, a significant drop from ¥0.0255 in the previous year[27]. - The company reported a net profit of -83,652,306.47 CNY for 2019, leading to a total distributable profit of -161,588,037.66 CNY as of December 31, 2019[128]. - The total cash dividend amount for 2019 was 0.00 CNY, representing 0.00% of the net profit attributable to ordinary shareholders[129]. Customer Base and Market Strategy - The company has been actively expanding its customer base beyond China Mobile to reduce dependency on a single major client[8]. - The company is focusing on improving its talent retention strategies to address the risk of losing skilled technical personnel[11]. - The company has recognized the risk of management challenges due to rapid growth and is focused on improving management levels and resource allocation[117]. - The company is actively working to reduce reliance on major clients by expanding its customer base to other telecom operators and equipment suppliers[116]. Research and Development - The company has recognized the need for continuous research and development to keep pace with technological advancements in the industry[10]. - The company is actively developing new technologies for 4G and 5G networks, with projects initiated in July 2019 and expected to be completed within 10 months[80]. - The company has completed service technology reserves and personnel training for 5G network optimization and business data analysis[39]. - The company plans to focus on the development and application of new technologies and software in response to the 5G market transformation[38]. - The company’s R&D investment in 2019 amounted to ¥47,243,081.91, representing 4.51% of its operating revenue[82]. Operational Challenges and Risks - The company acknowledges the risks associated with investment and acquisition projects due to industry uncertainties[12]. - The company has identified risks related to technology and product updates, emphasizing the need for continuous R&D to maintain competitiveness[118]. - The company has faced investment and acquisition risks, particularly regarding the performance of its subsidiary, Interlink Bay, from which it holds a 17% stake[120]. - The ongoing trade tensions with the United States may impact the development of various industries, including telecommunications[38]. - The company experienced a loss in the fourth quarter primarily due to the operational decline and losses of its subsidiary, Xinzong Communication[30]. Cost Management and Efficiency - Total operating costs decreased by 20.56% year-on-year, amounting to ¥916,071,674.94 in the current period compared to ¥1,153,136,884.92 in the previous year[74]. - Direct costs accounted for 79.10% of total operating costs, down from 76.28% in the previous year, with a reduction of 17.62% in absolute terms[74]. - The company reported a significant decrease in indirect costs by 78.27%, from ¥53,146,555.49 to ¥11,550,937.39[74]. - The company optimized its organizational structure to better adapt to market conditions and enhance operational efficiency[57]. Shareholder and Governance Matters - The company has maintained a consistent policy of not distributing cash dividends over the past three years[129]. - The company has ensured that minority shareholders have had opportunities to express their opinions and that their rights are protected[127]. - The company has fulfilled all commitments made by its actual controllers and shareholders during the reporting period[130]. - The company has a total of three vice general managers, with two having resigned in 2020 for personal reasons[199]. - The actual controller of the company is Zhu Dingkai, who is also the chairman and general manager of the company[190]. Social Responsibility and Community Engagement - The company has actively fulfilled its social responsibilities since its listing in 2009, ensuring fair treatment of all investors[168]. - The company invested CNY 60,000 in September 2019 for the construction of a sports field at a primary school in Enshi Prefecture, contributing to educational improvement in impoverished areas[171]. - The company plans to continue its targeted poverty alleviation efforts in 2020, guided by Xi Jinping's thoughts on socialism with Chinese characteristics for a new era[174]. Financial Reporting and Compliance - The company implemented changes in accounting policies due to the revised financial reporting standards, affecting the 2018 financial statements significantly[133]. - The new financial instrument standards shifted the impairment measurement from an "incurred loss model" to an "expected credit loss model" for financial assets[135]. - The financial reporting changes were adopted retrospectively, affecting the comparability of financial statements[133]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[132].