1 国民技术股份有限公司 2018 年第三季度报告全文 证券代码：300077 证券简称：国民技术 公告编号：2018-068 国民技术股份有限公司 Nation ﴿ 2018 年第三季度报告 2018 年 10 月 国民技术股份有限公司 2018 年第三季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人孙迎彤先生、主管会计工作负责人徐辉先生及会计机构负责人 (会计主管人员)余永德先生声明：保证季度报告中财务报告的真实、准确、完整。 2 国民技术股份有限公司 2018 年第三季度报告全文 会计政策变更的原因及会计差错更正的情况 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否因会计政策变更及会计差错更正等追溯调整或重述以前年度会计数据 √是 □否 追溯调整或重述原因 会计政策变更 | --- | --- | --- | --- | --- | |--------------------------------- ...

国民技术股份有限公司 2018 年年度报告全文 国民技术股份有限公司 NationzTechnologiesInc. 2018 年年度报告 （公告编号：2019-012） 二〇一九年四月 国民技术股份有限公司 2018 年年度报告全文 1 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连 带的法律责任。 公司负责人孙迎彤先生、主管会计工作负责人徐辉先生及会计机构负责人 (会计主管人员)余永德先生声明：保证年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 本报告涉及的未来计划、发展战略等前瞻性描述不构成公司对投资者的实 质承诺，敬请投资者注意投资风险。 公司不需要遵守特殊行业的披露要求。 公司在本报告第四节"经营情况讨论与分析"之"九、公司未来发展的展 望"部分，详细描述了公司经营中可能存在的风险及应对措施，敬请投资者关 注相关内容。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 国民技术股份有限公司 2018 年年度报告全文 目录 | --- | -- ...

Financial Performance - Total operating revenue for the first half of 2018 was ¥411,884,426.27, representing a 15.24% increase compared to ¥357,428,396.89 in the same period last year[19]. - Net profit attributable to shareholders of the listed company decreased by 72.43% to ¥12,398,523.66 from ¥44,238,554.19 in the previous year[19]. - Net profit after deducting non-recurring gains and losses fell by 87.40% to ¥4,973,095.98 from ¥39,367,320.70 in the same period last year[19]. - Basic earnings per share decreased by 75.00% to ¥0.02 from ¥0.08 in the same period last year[19]. - The company achieved operating revenue of 41,188.44 million yuan, an increase of 15.24% year-on-year, but net profit attributable to shareholders decreased by 72.43% to 1,239.85 million yuan[41]. - The company reported a net profit loss due to overdue debts from major client Watma, leading to potential bad debt risks[101]. - The company reported a net loss of CNY 121,039,198.82, compared to a loss of CNY 133,437,722.48 in the previous period, indicating a slight improvement[162]. - The total profit for the current period was ¥27,403,234.93, down 40.0% from ¥45,693,597.09 in the previous period[170]. Cash Flow and Investments - Net cash flow from operating activities was negative at -¥186,114,294.69, a decline of 178.25% compared to -¥66,888,068.50 in the previous year[19]. - Cash inflows from operating activities totaled ¥312,913,496.91, a decrease of 26.4% compared to ¥425,807,213.53 in the previous period[175]. - The company recorded a net cash outflow from operating activities, with cash payments for goods and services amounting to ¥324,950,246.95, slightly down from ¥328,232,093.95[175]. - Cash inflow from investment activities totaled 640,001,071.69 yuan, down from 1,758,685,616.28 yuan in the previous period, reflecting a decrease of approximately 63.7%[181]. - The net cash flow from investment activities improved to 111,169,980.62 yuan, compared to -190,572,239.46 yuan in the previous period, showing a positive turnaround[181]. - The company incurred cash payments for investments totaling 433,911,920.00 yuan, down from 1,877,750,000.00 yuan in the previous period, indicating a reduction in investment spending[181]. Assets and Liabilities - Total assets increased by 52.26% to ¥4,564,096,783.22 from ¥2,960,472,490.26 at the end of the previous year[19]. - Current liabilities rose significantly to CNY 1,801,476,854.35 from CNY 399,420,593.84, an increase of about 351.5%[161]. - The total liabilities increased to CNY 1,831,125,893.27 from CNY 419,350,304.64, an increase of about 336.5%[161]. - The company's cash and cash equivalents decreased to CNY 147,260,428.08 from CNY 319,695,485.98, a decline of about 54.9%[164]. - The total current assets decreased to CNY 1,243,989,306.85 from CNY 1,723,060,563.86, a decline of about 28.0%[165]. Strategic Developments - The company plans not to distribute cash dividends or issue bonus shares[6]. - Future plans and strategic developments are subject to market conditions and investor awareness of risks[5]. - The company is actively developing lithium-ion battery anode materials, indicating a strategic move into the renewable energy sector[30]. - The company expanded its market presence by acquiring a 21.37% stake in Huaxia Chip through its wholly-owned subsidiary, aiming to enhance AI SoC chip technology applications[30]. - The company is focusing on product technology upgrades and supply chain management to reduce costs and enhance market competitiveness[42]. Acquisitions and Investments - The company reported a significant increase in goodwill by 1,879.58% due to the acquisition of 70% equity in Snow Industry[32]. - The company completed the acquisition of 70% equity in Snow Industry, with a remaining payment of ¥199,750,000 yet to be made[49]. - The net profit contribution from Snow Industry was ¥27,968,926.01 after it was included in the consolidated financial statements, marking a significant addition to the company's profit sources[57]. - The company made a major equity investment of CNY 1,336,153,846 in Shenzhen Sinuo Industrial Development Co., Ltd., acquiring a 70% stake[68]. Legal and Regulatory Matters - The company is involved in multiple lawsuits related to securities false statements, with a total amount of 3,312.18 million yuan claimed by investors[111][112][113]. - The company has received a warning and a fine of 300,000 yuan from the China Securities Regulatory Commission for failing to disclose a supplementary agreement in a timely manner[115]. - The company and its executives, including Luo Zhaoxue and Yu Junjie, have been penalized with fines totaling 50,000 yuan for regulatory violations[115]. - The company is currently awaiting court decisions on several ongoing lawsuits, which may impact its financial position[111][112][113]. Research and Development - Research and development expenses increased by 21.32% to ¥72,338,017.68, reflecting the company's commitment to innovation and product development[56]. - The company is focusing on the research, production, and sales of lithium-ion battery anode materials, which is a new business segment added during the reporting period[98]. - The company is actively developing new generation USBKey security control chips to maintain its leading position in the industry[42]. Shareholder Information - The total number of shares increased from 563,393,000 to 563,393,000, with no new shares issued[134]. - The company’s major shareholders include Sun Yingtong with 17,164,400 shares (3.05%) and Liu Yiqian with 8,992,800 shares (1.60%) as of June 30, 2018[142]. - The company’s board of directors saw changes with the resignation of former chairman Luo Zhaoxue, who held 1,175,000 unrestricted shares now locked for six months[137]. - The total number of shareholders as of June 30, 2018, was 102,341[141]. Miscellaneous - The company has not reported any significant non-equity investments during the reporting period[69]. - The company has not faced any major litigation or arbitration matters during the reporting period[109]. - The half-year financial report has not been audited[106].

Financial Performance - Total revenue for Q1 2018 was CNY 195,544,912.72, an increase of 2.58% compared to CNY 190,623,167.03 in the same period last year[9]. - Net profit attributable to shareholders decreased by 31.86% to CNY 14,707,021.61 from CNY 21,582,248.78 year-on-year[9]. - Net profit after deducting non-recurring gains and losses fell by 50.85% to CNY 10,473,656.54 compared to CNY 21,308,178.90 in the previous year[9]. - The company reported a net loss of CNY 147,248,600.41 for the period, compared to a loss of CNY 161,955,622.02 in the previous period, showing an improvement of approximately 9.1%[56]. - The total profit for Q1 2018 was CNY 25,224,167.88, an increase of 29.2% from CNY 19,476,576.33 in the previous year[61]. - The company reported a basic earnings per share of CNY 0.03 for Q1 2018, down from CNY 0.04 in the previous year[61]. - The total comprehensive income for Q1 2018 was CNY 20,731,806.59, a decrease from CNY 21,470,503.25 in the previous year[61]. Cash Flow - The net cash flow from operating activities was negative at CNY -46,057,957.84, a decline of 258.02% from CNY -12,864,711.58 in the same period last year[9]. - The company's operating cash flow for Q1 2018 was negative CNY 46,057,957.84, worsening from negative CNY 12,864,711.58 in the same period last year[64]. - The cash flow from operating activities included 140,035,998.23 CNY from sales of goods and services, down from 192,038,980.49 CNY[66]. - The company reported a total cash outflow from operating activities of 412,618,170.03 CNY, compared to 204,509,892.18 CNY in the previous period[66]. - The total cash inflow from investment activities was 315,182,832.38 CNY, down from 660,585,207.12 CNY in the previous period[66]. - The net cash flow from investment activities improved to 81,938,972.17 CNY, compared to -73,590,403.27 CNY in the previous period[66]. - The company received 102,380,658.75 CNY from borrowings during the financing activities[67]. - The total cash inflow from financing activities was 157,380,658.75 CNY, with a net cash flow of 156,612,800.58 CNY[67]. Assets and Liabilities - Total assets increased by 60.15% to CNY 4,741,342,521.61 from CNY 2,960,472,490.26 at the end of the previous year[9]. - The total liabilities amounted to CNY 2,041,071,822.81, up from CNY 413,787,110.14, reflecting a growth of about 392.5%[54]. - The total equity attributable to shareholders was CNY 2,545,912,465.31, a slight increase from CNY 2,531,348,428.14[56]. - The company's long-term investments increased to CNY 873,059,720.00 from CNY 723,059,720.00, representing a growth of approximately 20.8%[57]. - The remaining balance of the raised funds as of March 31, 2018, was CNY 538.50 million, with CNY 44.50 million in cash management accounts[45]. Investments and Acquisitions - The company acquired 70% of Snow Industry, which added "lithium-ion battery anode materials" to its product categories[36]. - The company is in the process of cash acquisition of 70% equity in Shenzhen Sinuo Industrial Development Co., Ltd.[40]. - The investment in the USB KEY security control chip project reached 103.09% of the committed investment amount of CNY 8,036.00 million[43]. - The investment in the RF technology-based secure mobile payment chip project reached 100.98% of the committed investment amount of CNY 15,346.00 million[43]. - The company plans to invest CNY 200 million in its wholly-owned subsidiary for acquiring part of the equity in Shenzhen Snow Industrial Development Co., Ltd[44]. Operational Challenges and Risks - The company faces risks related to rapid market changes and the need for high-quality development in the integrated circuit design industry[11]. - There is a risk of R&D investments not yielding expected returns due to long market entry cycles and external factors affecting technology acceptance[12]. - The company is facing challenges in the mainstream market for its RCC mobile payment technology due to competition from emerging payment technologies[44]. Management and Expenses - Management expenses rose by 46.03% to CNY 49.02 million from CNY 33.57 million, mainly due to increases in research and development expenses and employee compensation[26]. - The company reported a financial expense of CNY 300,133.25 in Q1 2018, compared to a financial income of CNY 1,883,909.30 in the same period last year[61]. - The investment income decreased by 32.48% to CNY 6.83 million from CNY 10.11 million, attributed to reduced returns from financial products[28]. Shareholder Information - The company did not conduct any repurchase transactions among the top 10 shareholders during the reporting period[17]. - The total number of restricted shares remained at 20,976,300, with no shares released during the reporting period[19]. - The company has not reported any overdue commitments from actual controllers, shareholders, or related parties during the reporting period[41]. - The company has no violations regarding external guarantees or non-operating fund occupation by controlling shareholders during the reporting period[48].

Financial Performance - Operating revenue for the reporting period was ¥181,117,714.60, representing a growth of 49.41% year-on-year[8]. - Net profit attributable to shareholders was ¥6,298,329.63, a significant increase of 306.15% compared to the same period last year[8]. - The net profit after deducting non-recurring gains and losses was ¥290,608.06, up by 108.30% year-on-year[8]. - Basic earnings per share for the reporting period was ¥0.01, reflecting a growth of 257.14% compared to the same period last year[8]. - The weighted average return on equity was 0.20%, a slight increase from 0.15% in the previous year[8]. - The company reported a net cash flow from operating activities of -¥165,198,964.69, a decrease of 28.06% year-on-year[8]. - Total operating revenue for Q3 2017 was CNY 181,117,714.60, an increase of 49.4% compared to CNY 121,221,296.48 in the same period last year[44]. - The net profit for the third quarter reached CNY 5,428,808.14, compared to CNY 1,550,755.56 in the previous year, representing a significant increase[46]. - The total profit for the third quarter was CNY 6,426,885.80, a substantial increase from CNY 788,174.92 in the previous year[46]. - The company's total operating profit for the current period was ¥48,174,748.61, up from ¥33,499,456.97, reflecting a growth of 43.8%[52]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥3,373,947,024.09, an increase of 2.42% compared to the end of the previous year[8]. - Cash and cash equivalents at the end of the period amounted to ¥287,743,789.81, a decrease of 38.72% from the beginning of the period due to payments for construction and external investments[18]. - Inventory at the end of the period was ¥228,644,521.85, up 44.73% from the beginning, as the company increased stock to meet fourth-quarter supply demands[18]. - The total liabilities decreased to CNY 276,469,794.81 from CNY 294,497,792.28, a reduction of approximately 6.1%[43]. - The total equity attributable to shareholders increased to CNY 3,063,067,431.55 from CNY 2,960,554,428.45, representing a growth of 3.5%[43]. Cash Flow - Cash flow from operating activities showed a net outflow of ¥165,198,964.69, worsening from a net outflow of ¥129,005,226.59 in the previous period[55]. - Cash and cash equivalents at the end of the period decreased to ¥287,743,789.81 from ¥353,127,090.13, a decline of 18.5%[56]. - Investment activities resulted in a net cash outflow of ¥19,454,386.56, an improvement from a net outflow of ¥214,667,407.76 in the previous period[56]. - The company experienced a net decrease in cash and cash equivalents of CNY 157,964,986.28, compared to a decrease of CNY 385,832,341.60 in the previous year, indicating a reduction in cash outflow[58]. Shareholder Information - The total number of shareholders at the end of the reporting period was 65,889[12]. - The top shareholder, Liu Yiqian, held 4.38% of the shares, totaling 24,691,300 shares[12]. - The company did not conduct any repurchase transactions among the top 10 shareholders during the reporting period[13]. Other Financial Metrics - Operating costs for the period were ¥393,424,292.74, a year-on-year increase of 43.66% due to rising revenues[23]. - The company reported a 60.92% decrease in income tax expenses to ¥1,601,920.28, primarily due to reduced deferred tax expenses[25]. - Other income for the period was ¥5,726,888.33, a 100% increase year-on-year, due to government subsidies recognized as other income[23]. - The company’s long-term equity investments reached ¥120,000,000.00, a 100% increase from zero at the beginning of the period, reflecting capital contributions to joint ventures[18]. - The company distributed a cash dividend of CNY 1,127.28 million, amounting to CNY 0.2 per share based on a total share capital of 56,364,000 shares[32]. Inventory and Receivables - Prepaid accounts increased by 539.73% to ¥88,168,660.45, primarily due to an increase in prepaid goods[18]. - Other receivables rose by 427.08% to ¥72,018,689.62, mainly due to increased business cooperation deposits[18]. - Accounts receivable increased to CNY 372,777,187.57 from CNY 427,302,888.47, indicating a decrease of about 12.7%[38]. - Inventory rose significantly to CNY 228,644,521.85 from CNY 157,981,089.57, representing an increase of approximately 44.5%[38]. Investment Activities - Cash inflow from investment activities totaled CNY 3,021,365,788.00, an increase from CNY 2,441,870,486.26 in the previous year, representing a growth of approximately 23.7%[58]. - Cash outflow for investment activities was CNY 3,047,040,975.84, up from CNY 2,483,723,418.80, indicating a rise of about 22.7%[58]. - Net cash flow from investment activities was negative CNY 25,675,187.84, an improvement from negative CNY 41,852,932.54 year-over-year[58]. Audit and Compliance - The third quarter report was not audited, which may impact the reliability of the financial data presented[59].

Financial Performance - Total operating revenue for the reporting period was ¥357,428,396.89, an increase of 21.80% compared to ¥293,465,291.06 in the same period last year[16] - Net profit attributable to shareholders of the listed company was ¥44,238,554.19, a decrease of 2.70% from ¥45,468,372.24 in the previous year[16] - Net profit attributable to shareholders after deducting non-recurring gains and losses was ¥39,367,320.70, an increase of 8.61% from ¥36,246,909.74 in the same period last year[16] - The company achieved operating revenue of 357.43 million yuan, a year-on-year increase of 21.80%[29] - Net profit attributable to ordinary shareholders was 44.24 million yuan, remaining stable compared to 45.47 million yuan in the same period last year[29] - The company reported a significant increase in system integration business revenue, growing by 132.31% year-on-year[29] - The company reported a total share count of 563,640,000 as of June 30, 2017, with 95.42% being unrestricted shares[111] - The company reported a comprehensive income total of 43,997,364.75 RMB for the period, indicating a positive performance despite challenges[163] Cash Flow and Assets - The net cash flow from operating activities was -¥66,888,068.50, improving by 27.17% compared to -¥91,837,067.89 in the previous year[16] - The company’s cash and cash equivalents decreased by 33.24% to 469.54 million yuan due to increased cash payments for construction and financial products[24] - The company’s cash flow from operating activities showed a net outflow, but the reduction in losses indicates potential operational improvements moving forward[158] - The cash flow from financing activities resulted in a net inflow of ¥4,143,304.29, contrasting with a net outflow of ¥30,574,223.09 in the previous period[156] - The ending balance of cash and cash equivalents was 124,840,794.31 RMB, down from 417,700,312.58 RMB at the end of the previous period[159] - Total current assets decreased to RMB 2,266,798,749.60 from RMB 2,320,311,528.00, a decline of approximately 2.3%[139] - Total assets at the end of the reporting period were ¥3,305,953,980.86, a slight increase of 0.36% from ¥3,294,161,979.78 at the end of the previous year[16] Equity and Liabilities - Shareholders' equity attributable to shareholders of the listed company increased by 2.93% to ¥3,050,203,171.66 from ¥2,963,461,029.50 at the end of the previous year[16] - Total liabilities decreased to RMB 255,419,184.66 from RMB 330,364,010.83, a reduction of about 22.7%[141] - The total equity increased to RMB 3,054,573,703.60 from RMB 2,960,554,428.45, showing an increase of 3.2%[147] - The total equity attributable to the parent company was 3,050,534,796.20 RMB at the end of the reporting period, reflecting a decrease from the previous balance[163] Research and Development - The company applied for 43 domestic and international patents and obtained 44 patents during the reporting period, totaling 1,269 applications and 581 granted patents by the end of June 2017[25] - Development expenditures rose by 30.02% to 49.41 million yuan, reflecting increased capitalized research and development expenses[24] - The company plans to continue its investment in technology research and development, particularly in secure storage chip solutions[57] - The company has invested a total of 164.87 million in the R&D platform operation project, with an actual investment of 72.25 million, achieving 43.82% of the planned investment progress[65] Investment Activities - The company invested CNY 1,380,000 in establishing a joint venture for the operation of a multi-card integration public service platform in Fujian Province, holding a 46% stake[38] - The company plans to invest USD 3 million to acquire newly issued preferred shares of Ambiq Micro, Inc., which will represent approximately 2.31% of Ambiq's total equity post-investment[40] - The company has reallocated approximately CNY 16.49 million of remaining raised funds for the operation of its R&D platform, optimizing the use of these funds[37] Operational Challenges and Strategies - The company has faced delays in the development of the USB KEY project due to the advanced process development at the wafer foundry, impacting the project timeline[61] - The company plans to enhance customer management and strengthen accounts receivable dynamic management to prevent bad debts[78] - The company aims to optimize inventory management to mitigate risks associated with unsold or excess inventory[79] Corporate Governance and Compliance - The half-year financial report has not been audited[86] - There are no significant litigation or arbitration matters during the reporting period[89] - The company has not engaged in any major related party transactions during the reporting period[94] - The company has not conducted any poverty alleviation initiatives or plans for the reporting period[104] Shareholder Information - The total number of shareholders at the end of the reporting period was 56,415[118] - Liu Yiqian held 24,691,300 shares, representing 4.38% of the total shares, with 24,680,000 shares pledged[118] - The company had no changes in its controlling shareholder during the reporting period[120] - The total number of shares held by the top ten shareholders was 73,000,000 shares, accounting for a significant portion of the total shares[119]

Financial Performance - Total operating revenue for Q1 2017 was ¥190,623,167.03, an increase of 21.59% compared to ¥156,778,641.98 in the same period last year[9] - Net profit attributable to shareholders was ¥21,582,248.78, a decrease of 17.39% from ¥26,126,662.34 year-on-year[9] - Basic earnings per share decreased by 20.00% to ¥0.04 from ¥0.05 in the same period last year[9] - Total operating costs for Q1 2017 were CNY 183,920,481.97, up 25.4% from CNY 146,727,712.44 in the same period last year[55] - Net profit for Q1 2017 was CNY 21,582,248.78, a decrease of 17.5% from CNY 26,126,662.34 in Q1 2016[56] - The total profit before tax was 23,567,298.22 CNY, down from 30,303,440.39 CNY, reflecting a decrease of approximately 22.36%[59] Cash Flow - Net cash flow from operating activities improved to -¥12,864,711.58, a significant increase of 85.43% compared to -¥88,303,215.38 in the previous year[9] - Cash received from sales increased to ¥198,202,900.23, up 87.14% from ¥105,908,751.28 in the same period last year, primarily due to increased sales collections[27] - Total cash inflow from operating activities reached ¥212,672,213.55, up 87.00% from ¥113,731,225.97 in the previous year, mainly due to increased sales collections[27] - Cash flow from operating activities showed a net outflow of -12,864,711.58 CNY, an improvement compared to -88,303,215.38 CNY in the same period last year[60] - The net cash flow from financing activities was 0.00 CNY, compared to a net inflow of 17,429,794.17 CNY in the previous year[63] Assets and Liabilities - Total assets at the end of the reporting period were ¥3,293,219,023.41, a slight decrease of 0.03% from ¥3,294,161,979.78 at the end of the previous year[9] - Total liabilities decreased from RMB 330,364,010.83 to RMB 307,950,551.21, a decline of approximately 6.7%[51] - The company's total assets slightly decreased from RMB 3,294,161,979.78 to RMB 3,293,219,023.41[52] - The total equity as of Q1 2017 was CNY 2,986,227,399.12, an increase from CNY 2,960,554,428.45 in the previous period[54] Investments - The total amount of raised funds is 230,401.97 million, with 2,166.42 million invested in the current quarter[40] - The USB KEY security chip project has achieved an investment progress of 103.09%, with a total investment of 8,284.34 million[40] - The secure storage chip project has an investment progress of 89.13%, with a total investment of 9,064.60 million[40] - The mobile payment chip project has achieved an investment progress of 100.98%, with a total investment of 15,496.77 million[40] - The company has allocated 16,500 million for acquisition expenses, achieving 100% of the planned investment[41] Operational Highlights - The company plans to enhance its market-oriented approach and customer-centric philosophy to optimize its R&D model and supply chain management[12] - The company continues to strengthen its R&D efforts in financial IC card chips, responding to market opportunities and enhancing competitiveness[31] - Sales revenue from financial terminal security chips and modules grew year-on-year, as the company actively expanded its market presence and optimized product performance[31] - RCC product sales revenue increased year-on-year, with the company focusing on continuous product optimization and exploring innovative business models[32] Other Financial Metrics - Financial expenses decreased by 30.19% to CNY -1,883,909.30 from CNY -2,698,523.66, mainly due to reduced interest income[24] - Non-operating income decreased by 54.78% to CNY 3,889,040.91 from CNY 8,600,168.17, primarily due to reduced government subsidy income[24] - Income tax expenses decreased by 153.40% to CNY -2,105,672.45 from CNY 3,943,256.74, reflecting a decline in total profit[26] - The company reported a financial expense of CNY -1,883,909.30, an improvement compared to CNY -2,698,523.66 in Q1 2016[56] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 50,957[15] - The company approved a cash dividend of RMB 0.2 per 10 shares based on a total share capital of 56,364,000 shares as of December 31, 2016[43]

Financial Performance - In 2016, the company's operating revenue reached ¥706,124,094.84, representing a 25.96% increase compared to ¥560,592,462.98 in 2015[14] - The net profit attributable to shareholders was ¥101,207,345.09, up 17.67% from ¥86,006,337.15 in the previous year[14] - The net profit after deducting non-recurring gains and losses was ¥76,972,115.43, a significant increase of 69.49% from ¥45,413,951.57 in 2015[14] - The basic earnings per share rose to ¥0.18, reflecting a 12.50% increase from ¥0.16 in 2015[14] - The total assets at the end of 2016 amounted to ¥3,294,161,979.78, a 2.95% increase from ¥3,199,702,397.68 in 2015[14] - The net assets attributable to shareholders increased by 5.29% to ¥2,963,461,029.50 from ¥2,814,659,942.17 in the previous year[14] - The company reported a negative net cash flow from operating activities of ¥57,162,333.21, worsening by 254.35% compared to ¥-16,131,800.53 in 2015[14] - The weighted average return on equity was 3.52%, an increase of 0.40% from 3.12% in 2015[14] Revenue Growth - The company achieved operating revenue of 70,612.41 million yuan in 2016, representing a year-on-year growth of 25.96%[30] - Net profit attributable to shareholders was 10,120.73 million yuan, an increase of 17.67% compared to the previous year[31] - Revenue from financial terminal security chips grew by 1319% year-on-year, while revenue from financial IC cards increased by 2866%[30] - The overall sales scale of financial terminal security chips and modules significantly increased, with sales revenue showing a substantial year-on-year growth[33] - The company achieved a leading market share in the domestic financial IC card chip market, with sales scale and revenue experiencing significant year-on-year increases[34] - Revenue from the security chip products reached approximately ¥505.86 million, accounting for 72.25% of total revenue, with a year-on-year growth of 27.78%[44] - The revenue from technology service business surged by 370.33% year-on-year, amounting to ¥19.37 million[44] - The company’s revenue from overseas markets increased by 290.68% year-on-year, reaching ¥121.85 million, while domestic revenue grew by 10.81% to ¥578.29 million[44] Investment and R&D - The company applied for 107 domestic and international patents in 2016, with a total of 1226 patents applied for and 537 patents granted to date[26] - The company focused on enhancing product performance and reducing costs, particularly in the development of USBKEY security chips and financial terminal security modules[26] - The company increased its investment in available-for-sale financial assets by 19,360 million yuan, indicating a strategic expansion in financial investments[24] - R&D investment amounted to ¥121,160,681.84 in 2016, representing 17.16% of operating revenue, a significant decrease from 24.18% in 2015[60] - The number of R&D personnel decreased to 211 in 2016, accounting for 66.77% of total employees, up from 65.48% in 2015[60] - The company’s R&D efforts focused on enhancing the security and performance of USBKEY security chips, which have now entered the market promotion phase[57] - The company achieved EMVCo security certification for its financial IC card chips, indicating a high level of technology recognized internationally[57] Cash Flow and Financial Management - Operating cash inflow totaled ¥728,083,039.20 in 2016, a 5.78% increase year-over-year, while cash outflow rose by 11.47% to ¥785,245,372.41[62] - The net cash flow from operating activities was -¥57,162,333.21 in 2016, a decline of 254.35% compared to -¥16,131,800.53 in 2015[63] - Investment cash inflow increased by 74.48% to ¥5,370,015,418.76, while cash outflow rose by 26.02% to ¥5,540,675,029.40[62] - The net cash flow from investment activities improved by 87.06% to -¥170,659,610.64 in 2016, compared to -¥1,319,067,037.96 in 2015[63] - Cash and cash equivalents decreased by ¥257,423,343.31, but this was an improvement of 78.16% from the previous year's decline[62] - The company reported an investment income of ¥95,643,387.53, which constituted 82.16% of total profit, primarily from fund investments and financial management[66] Shareholder and Governance - The company plans to distribute a cash dividend of ¥0.2 per 10 shares, with no bonus shares issued[5] - The company has been recognized for its governance, receiving accolades for its supervisory board's best practices[39] - The company has implemented a stock incentive plan, with various resolutions passed by the board regarding the plan's details and adjustments[118] - The company has a diverse shareholder base with no single entity holding more than 5% of the shares[155] - The company has a strong management team with diverse backgrounds, including experience in finance, technology, and project management[163][164][165] - The company has appointed new independent directors and supervisors to strengthen its governance structure[162] - The company’s management team has a significant number of independent directors, ensuring governance and oversight[173] Risks and Challenges - The company has outlined potential risks and countermeasures in its future development outlook section[5] - The company has identified risks related to rapid technological changes and market competition affecting the lifecycle of products and services[97] - The company is facing risks of inventory losses due to unsold stock and market competition, and plans to improve sales forecasting and inventory control[99] - The company recognizes the challenges in building sustainable profit models in the information security industry amid global economic uncertainties[89] Employee and Management Structure - The total number of employees in the company is 316, with 302 in the parent company and 14 in major subsidiaries[178] - The professional composition includes 211 technical personnel, 36 sales personnel, 45 administrative personnel, 15 management personnel, and 9 financial personnel[178] - The educational background of employees shows 6 with PhDs, 101 with Master's degrees, 154 with Bachelor's degrees, 32 with associate degrees, and 23 with other qualifications[178] - The employee labor contract signing rate is 100%, ensuring compliance with labor laws and regulations[179] - The company has established a comprehensive talent training system, including new employee orientation and various skill training programs[180]

Financial Performance - Total operating revenue for the reporting period was CNY 121,221,296.48, down 1.03% year-on-year, while total revenue from the beginning of the year to the reporting period was CNY 414,686,587.54, an increase of 18.90%[8]. - Net profit attributable to shareholders was CNY 1,550,755.56, a significant decrease of 95.63% compared to the same period last year[8]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY -3,503,264.37, a decline of 110.27% year-on-year[8]. - Basic earnings per share were CNY 0.0028, down 95.67% year-on-year[8]. - The company reported a net profit attributable to shareholders of 42.7 million yuan for the first three quarters, a year-on-year decrease of 27.59%[33]. - Revenue for the first three quarters reached 414.69 million yuan, representing a year-on-year growth of 18.90%[33]. - The net profit for the reporting period, excluding non-recurring gains and losses, was 32.74 million yuan, down 37.39% year-on-year due to declining sales in USBKEY products and lower investment income[31]. - Total operating revenue for the third quarter was CNY 121,221,296.48, a decrease of 1.04% from CNY 122,487,229.48 in the previous year[63]. - Net profit for the third quarter was CNY 1,550,755.56, a significant decline of 95.63% compared to CNY 35,511,747.85 in the previous year[64]. - The total profit for the current period was ¥57,003,766.01, compared to ¥82,393,949.23 in the previous period, indicating a decrease of approximately 30.7%[72]. Cash Flow and Liquidity - The net cash flow from operating activities was CNY -129,005,226.59, a decrease of 90.70% compared to the same period last year[8]. - The company's cash and cash equivalents decreased by 51.42%, from RMB 726,962,368.58 to RMB 353,127,090.13, primarily due to increased cash payments for investments[21]. - The company's cash flow from operating activities decreased by 67.60%, from RMB 144,792,935.65 to RMB 46,909,994.86, primarily due to reduced government subsidies and interest income[27]. - The company reported a net cash outflow from operating activities of ¥129,005,226.59, worsening from a net outflow of ¥67,649,320.13 in the previous period[74]. - The company experienced a net decrease in cash and cash equivalents of -385,832,341.60 RMB during the period[77]. - The cash inflow from sales of goods and services was 360,264,558.89 RMB, compared to 317,769,598.78 RMB in the previous period[76]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 3,131,258,482.08, a decrease of 2.14% compared to the end of the previous year[8]. - The company's total liabilities decreased by 48.84%, from RMB 96,067,921.34 to RMB 49,152,034.88, primarily due to a reduction in payables to suppliers[22]. - The company's total capital stock increased by 99.90%, from RMB 281,960,000.00 to RMB 563,640,000.00, primarily due to a capital increase through a bonus share distribution[24]. - Total current assets decreased from CNY 2,524,998,404.93 to CNY 2,212,989,696.10, a decline of approximately 12.3%[57]. - Total liabilities amounted to CNY 218,877,736.06, down from CNY 359,034,123.48 in the previous year[64]. - Owner's equity increased from CNY 2,815,365,193.05 to CNY 2,889,670,482.53, reflecting a growth of approximately 2.6%[60]. Investments and R&D - The company has invested ¥819.98 million in the research and development of new technologies during the reporting period[46]. - The company is focusing on expanding its influence in the field of trusted computing and enhancing its core technology capabilities[40]. - The company plans to optimize its R&D model and improve supply chain and inventory management to mitigate risks associated with rapid technological changes and market competition[11]. - The company has committed to not providing financial assistance for stock incentive plans during the implementation period[44]. - The company has allocated ¥16,500 million for acquisition expenses, fully utilized as of the reporting period[47]. Market and Product Development - The company is actively optimizing USBKEY security control chips to enhance safety, performance, and adaptability to various application scenarios[34]. - Financial IC card product sales increased year-on-year, driven by the domestic market's push for localization and collaboration with commercial banks[35]. - The RCC product sales saw a significant decline due to the lack of financial industry mobile payment standards, but the company is focusing on innovation and collaboration to enhance its market position[37]. - The company has delayed the development of new chips to meet the latest trusted computing international standards due to market demand changes[48]. - The mobile payment project is facing challenges as RCC technology is not yet aligned with financial industry standards, impacting market promotion[48]. Supplier and Customer Concentration - The total amount from the top five suppliers in the reporting period is ¥176,363,472.66, accounting for 55.81% of total procurement, compared to 42.17% in the previous year[40]. - The total amount from the top five customers in the reporting period is ¥214,618,752.00, representing 51.75% of total revenue, up from 49.65% in the previous year[40].

Financial Performance - Total operating revenue for the first half of 2016 was ¥293,465,291.06, representing a 29.69% increase compared to ¥226,278,839.96 in the same period last year[12]. - Net profit attributable to shareholders was ¥45,468,372.24, a 54.55% increase from ¥29,419,055.39 year-on-year[12]. - The net profit after deducting non-recurring gains and losses was ¥36,246,909.74, showing a significant increase of 99.48% compared to ¥18,171,145.91 in the previous year[12]. - Basic earnings per share increased by 60.00% to ¥0.08 from ¥0.05 year-on-year[12]. - Operating profit reached CNY 33.56 million, reflecting a significant year-on-year growth of 90.93%[21]. - The company reported a net profit of RMB 50,329,596.52 for the first half of 2016, compared to RMB 32,000,000.00 in the same period last year, marking an increase of 57.3%[105]. - The total profit for the first half of 2016 was RMB 50,329,596.52, compared to RMB 32,913,803.35 in the same period last year, marking a growth of 52.8%[106]. Cash Flow and Investments - The net cash flow from operating activities was -¥91,837,067.89, a decline of 334.78% from -¥21,122,512.50 in the same period last year[12]. - The net cash flow from operating activities was negative CNY 91.84 million, a decline of 334.78% compared to the previous year, primarily due to reduced interest income and increased tax payments[22]. - The cash flow from operating activities showed a net outflow of RMB 91,837,067.89, worsening from a net outflow of RMB 21,122,512.50 in the previous year[111]. - Total cash inflow from investment activities was 1,482,554,175.56 RMB, up from 792,735,720.61 RMB year-on-year, reflecting increased investment recovery[114]. - The net cash flow from investment activities was -160,267,748.93 RMB, an improvement from -1,391,069,134.28 RMB in the previous period, showing reduced cash outflow for investments[114]. - The company received 45,000,000.00 RMB from borrowings during the period, contributing to the financing cash inflow[115]. Assets and Liabilities - Total assets at the end of the reporting period were ¥3,153,888,617.21, a decrease of 1.43% from ¥3,199,702,397.68 at the end of the previous year[12]. - The company's total assets as of June 30, 2016, were RMB 3,158,940,421.11, a slight decrease from RMB 3,207,543,058.42 at the beginning of the year[102]. - Total liabilities decreased to RMB 237,343,210.86 from RMB 359,034,123.48, showing a reduction of approximately 34%[102]. - The total equity attributable to the parent company at the end of the period is RMB 2,921,597,210.25, an increase from the previous period[130]. Shareholder Information - The company distributed a cash dividend of 1 RMB per 10 shares, totaling 28,196,000 RMB, based on a total share capital of 281,960,000 shares as of December 31, 2015[56]. - The company plans not to distribute cash dividends or issue bonus shares for the semi-annual period[59]. - The total number of shareholders at the end of the reporting period was 48,032[83]. - Liu Yiqian held 4.38% of shares, totaling 24,691,300 shares, with a pledge status of 24,680,000 shares[83]. - The company granted 9,960,000 shares under the equity incentive plan, with 28,000 restricted shares repurchased and canceled[82]. Research and Development - Research and development investment decreased by 19.64% to CNY 52.71 million, indicating a shift in focus towards efficiency[22]. - The company has applied for 8 domestic and international patents and has obtained 64 authorized patents in the first half of 2016, bringing the total to 1,127 applications and 446 authorized patents[34]. - The company has optimized its chip products and launched a security module chip that meets the new generation of trusted computing international standards, successfully applied in products from Microsoft and Lenovo[47]. Market and Industry - The company faces risks related to the inability to develop rapidly and maintain quality, potentially missing strategic opportunities in the mature traditional security chip market[15]. - The company is focusing on the financial terminal main control chip market, which has seen a concentrated demand surge, contributing to revenue growth[23]. - The overall demand for information security products is rising due to national policies, with the integrated circuit industry experiencing steady growth amid a challenging economic environment[35]. Compliance and Governance - The financial report was approved by the board of directors on August 19, 2016, ensuring compliance with accounting standards[140]. - The company has not encountered any legal violations regarding the management and use of raised funds[44]. - There were no significant litigation or arbitration matters during the reporting period[62]. Accounting Policies - The financial statements are prepared in accordance with the Chinese Accounting Standards, ensuring transparency and accuracy[145]. - The company recognizes revenue from the sale of goods when the significant risks and rewards of ownership have transferred to the buyer, and the amount of revenue can be reliably measured[197].