Revenue and Profit - Revenue for Q1 2022 was CNY 386,055,693.36, an increase of 17.29% compared to CNY 329,145,737.18 in the same period last year[3] - Net profit attributable to shareholders decreased by 1.62% to CNY 30,953,691.43 from CNY 31,462,503.73 year-on-year[3] - Net profit excluding non-recurring gains and losses increased by 28.76% to CNY 28,421,187.63 from CNY 22,073,223.29 in the previous year[3] - The net profit for the first quarter was CNY 29,120,333.27, slightly up from CNY 28,885,512.16 year-over-year[23] - The total comprehensive income for the period was CNY 34,283,586.04, compared to CNY 29,146,196.72 in the previous period, representing an increase of approximately 17.3%[24] - The company reported a basic and diluted earnings per share of CNY 0.04, unchanged from the previous period[24] Cash Flow and Liquidity - The net cash flow from operating activities improved by 20.71%, reaching CNY -143,017,748.92 compared to CNY -180,371,345.32 in the same period last year[3] - Cash inflows from operating activities totaled CNY 310,194,960.39, while cash outflows were CNY 453,212,709.31, resulting in a net cash outflow of CNY 143,017,748.92[27] - The company’s cash and cash equivalents at the end of the period amounted to RMB 602,128,724.94, down from RMB 781,443,391.33 at the beginning of the year[18] - The ending balance of cash and cash equivalents was CNY 545,302,406.44, down from CNY 891,904,820.37 in the previous period[28] - The net cash flow from investing activities was -CNY 60,478,698.47, an improvement from -CNY 191,269,571.27 in the previous period[27] - The total cash inflow from financing activities was CNY 135,000,000.00, compared to CNY 1,020,490,000.00 in the previous period, reflecting a significant decrease of approximately 86.8%[28] Assets and Liabilities - Total assets at the end of the reporting period were CNY 4,833,304,674.06, a decrease of 0.62% from CNY 4,863,530,760.78 at the end of the previous year[3] - The total liabilities decreased to CNY 2,596,636,001.92 from CNY 2,658,926,675.27[20] - The company’s total equity rose to CNY 2,236,668,672.14 from CNY 2,204,604,085.51[21] - Owner's equity attributable to shareholders increased by 1.57% to CNY 2,214,587,509.95 from CNY 2,180,294,683.75 at the end of the previous year[3] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 49,564[8] - The top shareholder, Lu Nan, holds 7.24% of the shares, totaling 62,739,500 shares[8] - The company repurchased a total of 33,497,450 shares, accounting for 3.87% of the total share capital, with a total transaction amount of RMB 229,612,367.24[15] - The highest transaction price during the share repurchase was RMB 7.08 per share, while the lowest was RMB 6.48 per share[15] Expenses - Total operating costs amounted to CNY 363,464,962.64, compared to CNY 309,189,573.52 in the prior period, reflecting a significant increase[22] - Financial expenses surged by 1323.58% to CNY 25,110,582.49, primarily due to increased convertible bond interest expenses[6] - Research and development expenses were CNY 31,781,348.68, showing a decrease from CNY 33,341,951.70 in the last period[22] - The company paid CNY 119,083,407.65 to employees, an increase from CNY 102,007,292.10 in the previous period[27] Investments - Development expenditures rose by 64.92% to CNY 9,385,571.94, reflecting ongoing investment in development projects[6] - The long-term equity investments increased to CNY 402,435,736.46 from CNY 400,277,572.33[21] - Cash inflows from investment activities were CNY 39,269,956.84, significantly lower than CNY 174,646,697.43 in the previous period[27] Convertible Bonds - The company completed the distribution of interest for its convertible bonds, with a total interest payment of RMB 3,267,783.60 for the period[12] - As of March 31, 2022, the company had 8,169,288 convertible bonds remaining, with a total remaining amount of RMB 816,928,800[13]

Financial Performance - The company reported a profit distribution plan of 0.13 RMB per 10 shares (including tax) based on a total of 869,411,466 shares, with no bonus shares issued[5]. - The company's operating revenue for 2020 was approximately ¥1.46 billion, a decrease of 7.54% compared to ¥1.57 billion in 2019[18]. - The net profit attributable to shareholders for 2020 was approximately ¥94.47 million, down 36.00% from ¥147.61 million in 2019[18]. - The net profit after deducting non-recurring gains and losses was approximately ¥20.92 million, a decline of 82.53% from ¥119.73 million in 2019[18]. - The total cash dividends distributed over the last three years amounted to CNY 41,493,691.46, reflecting a consistent dividend policy[157]. - The company's total revenue for the reporting period was 1,471.26 million CNY, a decrease of 6.53% compared to the previous year[50]. - The net profit attributable to shareholders was 104.89 million CNY, down 28.94% year-on-year, primarily due to increased R&D investment in the smart medical sector and a significant decline in the business of the commercial intelligence segment[50]. - Revenue from the commercial intelligence segment decreased by 29.84% year-on-year, amounting to a reduction of 250.86 million CNY compared to 2019[50]. - The smart medical business achieved a revenue growth of 20.20% year-on-year despite challenges posed by the COVID-19 pandemic[49]. Research and Development - The company has a strong focus on research and development in new technologies and products to enhance its market position[11]. - The company’s research and development expenditure totaled 203.14 million yuan, accounting for 13.81% of revenue, with a year-on-year growth of 26.02%[40]. - The company is focusing on developing an Industrial IoT platform to enhance service capabilities in industrial manufacturing, aiming for rapid market expansion[86]. - The company is committed to improving internal management systems to address challenges arising from its expanding scale and complexity[140]. - The company is actively managing accounts receivable to mitigate risks associated with slow collection, which could impact cash flow and operational funding[142]. Technology and Innovation - The company operates in various sectors including RFID technology, IoT, and cloud computing, which are critical for its business strategy[11]. - The company is focused on developing a comprehensive smart healthcare ecosystem, leveraging technologies such as IoT, AI, and big data[27]. - The company is the first in the industry to develop a cloud-native solution for smart healthcare, achieving KCSP certification[40]. - The company has established a smart healthcare ecosystem service platform based on a microservices architecture, enhancing user experience across various levels[40]. - The company has developed over 60 single-disease data resource libraries and data science application service platforms, enhancing its leading position in medical AI[42]. Market Strategy and Expansion - The company aims to expand its market presence through strategic partnerships and acquisitions in the technology sector[11]. - The company has established long-term stable partnerships with over 300 clients and agents globally, exporting products to more than 70 countries and regions[43]. - The company is exploring potential mergers and acquisitions to strengthen its market position and broaden its product offerings[48]. - The company aims to enhance the interoperability of local medical information platforms and improve the efficiency of healthcare delivery systems[120]. - The company is recognized as a leading provider of comprehensive smart healthcare solutions and is the first in China to offer international standard information construction services to overseas hospitals[125]. Risk Management - The company emphasizes the importance of risk management in its future development outlook, as detailed in the report[5]. - The company faces risks from international trade policies and currency fluctuations, particularly affecting its commercial intelligence business with a significant export ratio[141]. - The ongoing COVID-19 pandemic poses risks to the company's export sales and timely collections in its smart healthcare business[144]. - The company has identified potential impairment risks related to goodwill from acquisitions, particularly if future performance does not meet expectations[147]. - The company is committed to proactive management of exchange rate risks through appropriate tools and insurance for its export business[141]. Corporate Governance - The financial report is guaranteed to be true, accurate, and complete by the company's management, including the CEO and accounting head[4]. - The company has established a dedicated investor relations team to enhance communication with shareholders and stakeholders[15]. - The company has implemented a stock option and restricted stock incentive plan approved by the board on December 16, 2019, to motivate employees[186]. - The company has fulfilled all commitments made to minority shareholders on time[161]. - The company has maintained a continuous relationship with Tianjian Accounting Firm for 14 years, with the current audit fee set at 1.07 million CNY[182].

Financial Performance - The company reported a significant decrease in net profit due to large impairment provisions and interest expenses from convertible bonds, with operating cash flow increasing substantially due to the recovery of bank guarantees and repayments [6]. - The company's operating revenue for 2021 was ¥961,549,939.60, a decrease of 33.93% compared to ¥1,455,255,702.92 in 2020 [24]. - The net profit attributable to shareholders was -¥727,023,296.46 in 2021, representing a decline of 869.59% from ¥104,893,557.97 in 2020 [24]. - The net profit after deducting non-recurring gains and losses was -¥802,615,651.41, a decrease of 3,936.85% compared to ¥31,342,664.40 in 2020 [24]. - The cash flow from operating activities showed a significant improvement, reaching ¥134,041,273.63 in 2021, compared to -¥13,707,363.29 in 2020, marking a 1,429.52% increase [24]. - The total assets at the end of 2021 were ¥4,863,530,760.78, an increase of 3.27% from ¥4,709,698,920.00 at the end of 2020 [25]. - The net assets attributable to shareholders decreased by 25.73% to ¥2,180,294,680.75 in 2021 from ¥2,935,486,830.00 in 2020 [25]. - The basic earnings per share for 2021 was -¥0.87, a decline of 890.91% from ¥0.12 in 2020 [24]. - The weighted average return on equity was -27.64% in 2021, down from 3.62% in 2020 [24]. Market Trends and Opportunities - According to IDC, the total IT spending in China's healthcare industry is projected to reach 104.15 billion yuan by 2024, with the healthcare application software market expected to grow at a compound annual growth rate of over 15% [7]. - The healthcare informationization industry is anticipated to experience rapid growth, presenting both opportunities and challenges for the company's business [9]. - The smart medical segment saw a 6.6% increase in new orders compared to the previous year, while existing orders increased by approximately 40% [9]. - The ongoing COVID-19 pandemic has delayed project deployments in hospitals, impacting revenue, but the company expects long-term negative effects to diminish as new product cycles emerge and pandemic management stabilizes [6]. - The government has introduced several policies in 2021 to promote the development of smart healthcare systems, creating new opportunities for the industry [38]. Strategic Partnerships and Collaborations - The company has established long-term strategic partnerships with major international firms such as Huawei, Baidu, and IBM, enhancing its position in the smart healthcare solutions market [8]. - The company has established long-term stable partnerships with over 300 clients and agents, exporting products to more than 70 countries and regions [43]. - The company is actively expanding its overseas smart medical market, being the first domestic company to provide international standard information construction services to foreign hospitals [58]. Technological Innovation and R&D - The company aims to leverage five core technologies: IoT, AI, big data interaction, microservices framework, and blockchain to drive innovation in the healthcare sector [9]. - The company achieved a total R&D investment of 214.21 million yuan, accounting for 22.28% of its revenue, with a year-on-year growth of 5.45% [57]. - The company has filed for 7 invention patents, 27 utility model patents, and 79 software copyrights during the reporting period, showcasing its commitment to innovation [60]. - The company developed a medical cloud ecosystem service system, transitioning its product system from V2.0 to V3.0 microservice architecture [64]. - The THINKGO+ cognitive engine was developed, capable of automating data processing and knowledge engineering, supporting over 60 disease data resource libraries [65]. - The company is developing a clinical decision support system based on a generalized medical knowledge graph, which is expected to significantly impact future developments in precision medicine [98]. Product Development and Offerings - The company has developed an intelligent open platform that serves as a crucial foundation for transforming healthcare information technology models in China [40]. - The E-Smart 3.0 smart medical cloud service platform is central to the company's smart hospital solutions, integrating various medical services and data [47]. - The company has launched several new software systems in 2021, such as the Smart Pillbox Management APP and the Emergency Call Management Platform, indicating a focus on innovative healthcare solutions [14][15]. - The company has developed a smart community healthcare platform that offers comprehensive health management services, targeting key demographics such as infants, pregnant women, and the elderly [49]. - The company has expanded its software portfolio with systems for remote consultation, unified payment, and resource reservation, aiming to enhance patient care and streamline hospital operations [25][26][27][28][29]. Financial Management and Investment - The company reported a significant increase in non-operating income from non-current asset disposals, amounting to approximately ¥48.33 million in 2021, compared to ¥4.94 million in 2020 [31]. - The company has committed CNY 57,000,000 to the IoT smart medical traceability project, with a cumulative investment of CNY 16,837,770, achieving 39.58% of the planned investment [125]. - The company has allocated CNY 5,000,000 for working capital, which has been fully utilized [125]. - The company has invested CNY 33,300,000 in the AI medical innovation service project, with only 0.39% of the planned investment realized so far [125]. - The company has committed CNY 17,000,000 for the new generation smart medical application R&D project, with a cumulative investment of CNY 176,420 [125]. Governance and Compliance - The company has established a comprehensive internal control system to enhance governance and ensure the achievement of operational goals [163]. - The company operates independently from its largest shareholder, with no significant reliance on them for assets, personnel, or business operations [165]. - The company has implemented a performance evaluation and incentive mechanism for senior management, combining base salary with performance assessments [160]. - The company adheres to strict information disclosure practices, ensuring timely and accurate reporting to maintain transparency with investors [161]. - The company has been proactive in addressing past compliance issues and ensuring adherence to regulations moving forward [184].

Financial Performance - The company's revenue for Q3 2021 was ¥314,655,998.45, representing a 1.67% increase year-over-year, while the year-to-date revenue decreased by 6.17% to ¥964,574,632.37[3]. - Net profit attributable to shareholders for Q3 2021 was ¥28,440,267.88, a decrease of 7.02% compared to the same period last year, and a year-to-date decrease of 27.47% to ¥55,850,321.75[3]. - The net profit excluding non-recurring gains and losses for Q3 2021 was ¥20,662,036.14, a significant increase of 1,606.06% year-over-year, with a year-to-date increase of 1.17% to ¥28,855,296.45[3]. - Total operating revenue for the current period is ¥964,574,632.37, a decrease of 6.2% from ¥1,027,992,675.14 in the previous period[25]. - Net profit for the current period is ¥53,961,510.94, down 31.9% from ¥79,305,135.46 in the previous period[27]. - Basic and diluted earnings per share decreased to ¥0.0654 from ¥0.0886, a decline of 26.5%[28]. Assets and Liabilities - The company's total assets increased by 13.98% year-over-year, reaching ¥5,382,536,397.81 at the end of the reporting period[3]. - The company's total liabilities increased, with long-term borrowings rising by 47.26% to ¥852,500,635.59, reflecting a shift in financing structure[8]. - The company's total liabilities increased to CNY 2,407,107,163.49 from CNY 1,723,676,546.16, reflecting a growth of approximately 39.6%[23]. - The total current liabilities decreased to CNY 920,640,042.84 from CNY 1,129,899,965.62, a reduction of about 18.6%[23]. - The company's long-term borrowings rose to CNY 852,500,635.59 from CNY 578,917,980.54, indicating an increase of approximately 47%[23]. Cash Flow - Cash flow from operating activities for the year-to-date period was ¥20,263,579.85, reflecting a substantial increase of 164.18% compared to the previous year[9]. - Cash flow from operating activities generated a net amount of ¥20,263,579.85, compared to a net outflow of ¥31,574,966.66 in the previous period[31]. - Financing activities generated a net cash inflow of ¥687,042,340.02, compared to a net inflow of ¥82,548,100.36 in the previous period, indicating improved financing conditions[31]. - Investment activities resulted in a net cash outflow of ¥248,593,548.86, worsening from a net outflow of ¥166,318,115.96 in the previous period[31]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 49,954[11]. - The largest shareholder, Hangzhou Sichuang Medical Technology Group Co., Ltd., holds 10.50% of shares, totaling 90,912,612 shares[11]. - The second-largest shareholder, Lu Nan, owns 7.24% of shares, amounting to 62,739,500 shares[11]. - The company has a total of 33,493,668 shares repurchased, representing 3.87% of the total share capital[12]. - The company has a total of 90,912,612 unrestricted shares held by its largest shareholder[12]. Dividends and Share Capital - The company plans to distribute a cash dividend of 0.13 RMB per share based on the total share capital[16]. - As of September 30, 2021, the company's registered capital is 866,129,866 RMB[16]. - The convertible bond conversion price was adjusted from 8.27 RMB to 8.26 RMB per share[16]. - The company completed the cancellation of 3,281,600 restricted shares as part of its stock incentive plan[17]. - The total number of restricted shares at the end of the period is 29,811,359[15]. Other Financial Metrics - The company experienced a 58.95% decrease in other income to ¥26,908,513.56, mainly due to a reduction in government subsidies[9]. - The company reported an increase in financial expenses to ¥50,278,972.38 from ¥21,248,780.18, primarily due to higher interest expenses[25]. - The company implemented the revised Accounting Standard No. 21 for Leases starting January 1, 2021, resulting in adjustments to the financial statements[36].

Financial Performance - The company's operating revenue for the first half of 2021 was approximately ¥649.92 million, a decrease of 9.55% compared to ¥718.50 million in the same period last year[21]. - The net profit attributable to shareholders was approximately ¥27.41 million, down 40.95% from ¥46.42 million in the previous year[21]. - The net profit after deducting non-recurring gains and losses was approximately ¥8.19 million, a significant decline of 70.00% compared to ¥27.31 million in the same period last year[21]. - Basic earnings per share were ¥0.03, down 40.00% from ¥0.05 in the same period last year[21]. - Diluted earnings per share were also ¥0.03, reflecting the same decline of 40.00% compared to the previous year[21]. - The weighted average return on net assets was 0.89%, down 0.70% from 1.59% in the previous year[21]. - The gross profit margin for the company was 38.14%, reflecting a slight increase of 1.23% year-on-year[48]. - The company reported a net increase in cash and cash equivalents of CNY 199,241,615.77, a staggering increase of 12,138.11%[49]. - The company reported a total revenue of ¥649,918,633.92 for the current reporting period, representing a decrease of 9.55% compared to ¥718,499,781.76 in the same period last year[45]. Cash Flow and Investments - The net cash flow from operating activities improved to approximately ¥87.97 million, a turnaround from a negative cash flow of ¥184.23 million in the previous year, representing an increase of 147.75%[21]. - Operating cash inflow for the first half of 2021 reached CNY 798,378,369.13, a significant increase from CNY 611,004,337.40 in the same period of 2020, representing a growth of approximately 30.5%[199]. - Cash inflow from financing activities totaled CNY 1,318,590,000.00, a substantial rise from CNY 744,861,724.87 in the same period last year, marking an increase of approximately 77.0%[200]. - Cash outflow from investment activities surged to CNY 925,006,925.24, up from CNY 166,181,763.05 in the first half of 2020, leading to a net cash flow from investment activities of CNY -492,863,027.45[200]. - The company reported a loan repayment rate of 100% during the reporting period[176]. Research and Development - The company's R&D investment reached ¥10,392.59 million, accounting for 15.99% of total revenue, with a year-on-year growth of 39.59%[39]. - Research and development expenses increased by 39.59% to CNY 103,925,946.11, primarily due to increased project investments[49]. - The company has developed multiple patents and software copyrights, indicating a strong commitment to innovation in the medical application solutions sector[75]. - The company has received 23 software copyrights, 10 utility model patents, and 5 invention patents during the reporting period, showcasing its commitment to innovation[42]. Market and Business Strategy - The company focuses on five core technologies: IoT, AI, big data interaction, microservice framework, and blockchain, aiming to create a comprehensive ecosystem in smart healthcare and IoT applications[28]. - The smart healthcare segment provides integrated solutions to hospitals, enhancing patient safety and clinical efficiency through IoT and AI technologies[29]. - The company aims to expand its market presence internationally while maintaining a strong focus on domestic market growth[32]. - The company is actively expanding its overseas smart medical market, having undertaken the "smart hospital" project for the Chinese University of Hong Kong, marking a significant achievement in international recognition[40]. - The company is exploring market expansion opportunities, particularly in the healthcare technology sector, to drive future growth[108]. Risks and Challenges - The company faces intensified market competition in the smart healthcare sector, necessitating increased investment in technology and market expansion[73]. - The company faces risks related to accounts receivable collection, which may impact cash flow and increase operational funding needs due to slow collection rates[78]. - The ongoing COVID-19 pandemic may adversely affect the company's export sales and timely collections in its smart medical business[79]. - Management risks are anticipated due to the company's expanding scale and complex organizational structure, prompting a need for improved internal management systems[76]. - The company has identified goodwill impairment risks from acquisitions, particularly if future performance of acquired companies does not meet expectations[83]. Shareholder and Governance - The company has not distributed cash dividends or bonus shares for the half-year period[88]. - The company has implemented a stock option and restricted stock incentive plan to motivate employees and align their interests with shareholders[89]. - The company has committed to a net profit of no less than HKD 2.6 million for the fiscal year 2018, HKD 4 million for fiscal year 2019, and HKD 5.6 million for fiscal year 2020[104]. - The company has established a strategic partnership with investment funds to support its capital increase initiatives, enhancing financial flexibility[108]. - The company has maintained a conservative approach with no guarantees exceeding 50% of net assets[134]. Corporate Structure and Management - The company has appointed new senior management, including a new general manager and vice chairman, effective from August 18, 2021[147]. - The company completed the election of the fifth board of directors and supervisory board on August 18, 2021[139]. - The new board includes members with extensive experience in technology and finance, enhancing the company's leadership[140][143]. - The company has undergone a change in accounting policies, which may impact financial reporting[148]. Compliance and Internal Controls - The company has implemented measures to strengthen internal controls and auditing processes to prevent future occurrences of fund occupation[113]. - The company is focused on maintaining compliance with regulatory requirements, ensuring that all financial obligations are met in a timely manner[107]. - The company is committed to transparency and accountability in its financial reporting, which is crucial for investor confidence and market reputation[107].

Financial Performance - The company's operating revenue for the first half of 2021 was approximately ¥649.92 million, a decrease of 9.55% compared to ¥718.50 million in the same period last year[21]. - The net profit attributable to shareholders was approximately ¥27.41 million, down 40.95% from ¥46.42 million in the previous year[21]. - The net profit after deducting non-recurring gains and losses was approximately ¥8.19 million, a significant decrease of 70.00% compared to ¥27.31 million in the same period last year[21]. - Basic earnings per share were ¥0.03, down 40.00% from ¥0.05 in the same period last year[21]. - Diluted earnings per share were also ¥0.03, reflecting the same decrease of 40.00% compared to the previous year[21]. - The weighted average return on net assets was 0.89%, down 0.70% from 1.59% in the previous year[21]. - The company reported a significant increase in cash and cash equivalents, with a net increase of ¥199,241,615.77, representing a 12,138.11% rise[47]. - The gross profit margin for the total revenue was 38.14%, with a slight increase of 1.23% compared to the previous year[49]. - The company reported a net profit of ¥39.52 million, reflecting a profit margin of approximately 12.25%[72]. - The company reported a total comprehensive income for the first half of 2021 of CNY 23.02 million, a decrease from CNY 46.33 million in the same period of 2020[193]. Cash Flow and Assets - The net cash flow from operating activities improved to approximately ¥87.97 million, a turnaround from a negative cash flow of ¥184.23 million in the previous year, representing an increase of 147.75%[21]. - The company's total assets at the end of the reporting period were approximately ¥5.26 billion, an increase of 11.45% from ¥4.72 billion at the end of the previous year[21]. - The company's total liabilities increased to CNY 2,293,084,960.62 from CNY 1,723,676,546.16, reflecting a growth of about 33%[184]. - The company's cash and cash equivalents decreased slightly to CNY 600,909,057.50 from CNY 608,244,262.41, a decline of about 0.2%[182]. - Total current assets increased to CNY 2,834,393,683.75 from CNY 2,363,339,439.15 at the end of 2020, representing a growth of approximately 19.9%[183]. Research and Development - The company invested a total of 10,392.59 million CNY in R&D, accounting for 15.99% of its revenue, with a year-on-year growth of 39.59%[40]. - Research and development expenses increased by 39.59% to ¥103,925,946.11, primarily due to increased project investments[47]. - The company has developed multiple patents and software copyrights, indicating a strong commitment to innovation in the medical industry[76]. Market and Product Development - The company focuses on five core technologies: IoT, AI, big data interaction, microservice framework, and blockchain, aiming to create a comprehensive ecosystem in smart healthcare and IoT applications[28]. - The smart healthcare segment aims to enhance patient safety and clinical efficiency, providing integrated information solutions to hospitals and healthcare institutions[29]. - The E-Smart 3.0 smart healthcare cloud service platform is central to the company's offerings, facilitating the integration of traditional medical services with modern technology[30]. - The company is actively expanding its market presence both domestically and internationally, primarily targeting large and medium-sized hospitals[33]. - The company has established itself as a leading provider of smart healthcare solutions in China, contributing to the development of national healthcare information standards[34]. Risks and Challenges - The company is facing intensified competition in the smart medical and commercial intelligence sectors, necessitating increased investment in technology and market expansion[74]. - The company is exposed to international trade policy and exchange rate fluctuation risks, particularly in its commercial intelligence business with significant export proportions[80]. - The ongoing COVID-19 pandemic poses a risk to the company's export sales in business intelligence and timely collections in smart healthcare, which could significantly impact performance[82]. - Management risks are anticipated due to the company's expanding scale and complex organizational structure, prompting a need for improved internal management systems[77]. Shareholder and Governance - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company emphasizes shareholder rights protection by adhering to relevant laws and regulations, ensuring timely and accurate information disclosure[100]. - The company has implemented a stock option and restricted stock incentive plan, granting 12.32 million stock options and 10.14 million restricted shares to 66 and 63 participants, respectively[93]. - The company has maintained a strong governance structure with the appointment of independent directors and supervisors to enhance oversight[147]. Legal and Compliance - The company reported a litigation involving a claim of unfair related-party transactions with a potential liability of CNY 20 million, which is currently in the first-instance court proceedings[120]. - A labor dispute lawsuit was filed against a former executive, claiming damages of CNY 2.06 million, with the first-instance hearing yet to be scheduled[120]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[98].

Dividend Distribution - The company plans to distribute a cash dividend of 0.13 RMB per 10 shares to all shareholders, based on a total of 869,411,466 shares[5]. - The cash dividend distribution for 2020 was set at RMB 0.13 per 10 shares, totaling RMB 11,302,349.06, which represents 10.78% of the net profit attributable to shareholders[137]. - The total cash dividend amount for 2019 was RMB 15,649,406.39, with a distribution of RMB 0.18 per 10 shares[137]. - The company has a policy that mandates a minimum of 20% cash dividend distribution during significant capital expenditure phases[134]. Financial Performance - The company's operating revenue for 2020 was ¥1,471,264,743.10, a decrease of 6.53% compared to ¥1,573,993,606.47 in 2019[18]. - The net profit attributable to shareholders for 2020 was ¥104,893,557.97, down 28.94% from ¥147,607,911.10 in 2019[18]. - The net profit after deducting non-recurring gains and losses was ¥31,342,664.40, a decline of 73.82% from ¥119,728,829.88 in 2019[18]. - The net cash flow from operating activities was negative at ¥13,707,363.29, compared to a positive cash flow of ¥4,016,052.21 in 2019, marking a 441.31% decrease[18]. - Total revenue for 2020 was ¥1,471,264,743.10, a decrease of 6.53% compared to ¥1,573,993,606.47 in 2019[65]. - The company achieved operating revenue of 1,471.26 million yuan, a decrease of 6.53% year-on-year; operating profit was 125.42 million yuan, down 23.82%; net profit attributable to shareholders was 104.89 million yuan, a decline of 28.94%[46]. Market and Business Strategy - The company is focused on expanding its market presence and enhancing its product offerings in the healthcare technology sector[11]. - The company aims to enhance patient safety, medical quality, and clinical efficiency through its smart medical solutions, leveraging IoT, big data, and AI technologies[27]. - The company is focused on expanding its smart healthcare ecosystem, which includes smart hospitals, health management, and big data-driven AI services[28]. - The company aims to enhance its market position through the development of intelligent medical platforms and services, targeting various healthcare institutions[82]. - The company is actively pursuing the development of integrated healthcare solutions, as evidenced by the launch of multiple interconnected software platforms[14]. Research and Development - The company is committed to ongoing research and development to innovate new products and technologies in the healthcare field[11]. - The total R&D investment reached 203.1 million yuan, accounting for 13.81% of operating revenue, reflecting a year-on-year growth of 26.02%[36]. - The company focused its R&D expenses on forward-looking business lines such as single-disease AI services, successfully obtaining a patent for an AI invention during the reporting period[47]. - The company has made continuous investments in independent research and development of artificial intelligence technology, solidifying its leading position in the medical AI field with over 60 single-disease data resource databases and applications[38]. - The company is focusing on developing an Industrial IoT platform to enhance service capabilities in the industrial manufacturing sector[76]. Technology and Innovation - The company has implemented advanced technologies such as RFID and IoT to improve its product efficiency and customer experience[11]. - The company has developed proprietary technologies such as the THINKGO+ cognitive engine, which combines advanced big data, AI, and blockchain technologies[38]. - The company’s artificial intelligence medical cognitive engine, THINKGO, is utilized for statistical analysis and modeling of real-world clinical big data[30]. - The company has established a comprehensive IoT platform for smart business solutions, covering supply chain management, retail, manufacturing, and smart cities, and has built long-term partnerships with over 300 global clients[39]. - The company is committed to integrating IoT, AI, and cloud computing technologies to create a comprehensive healthcare service model[116]. Governance and Compliance - The company has established a strong governance structure to ensure compliance and transparency in its operations[11]. - The company is committed to improving its governance structure and risk management practices, ensuring compliance with regulations and enhancing operational efficiency[62]. - The company has not identified any major impacts on its delisting indicators or risk warning indicators due to the identified misstatements[150]. - The independent directors have urged the management to take effective measures to recover the occupied funds and improve the operational environment[153]. Challenges and Risks - The decline in performance was primarily due to increased R&D investment in the smart medical sector, significant business downturn in the business intelligence segment, and new equity incentive expenses[46]. - The company acknowledges potential risks from international trade policies and currency fluctuations, particularly affecting its export business[123]. - The ongoing pandemic poses risks to the company's sales and cash flow, potentially leading to significant performance declines if not controlled[125]. - The company faces intensified competition in the smart medical and commercial intelligence sectors, necessitating continuous technological advancements and market exploration[121]. Investment and Funding - The company raised 817 million yuan through the issuance of convertible bonds, with net proceeds of 805.59 million yuan allocated to various innovative projects, enhancing its market position and operational capabilities[61]. - The company successfully issued 8.17 billion RMB worth of convertible bonds, with 8.17 million bonds at a face value of 100 RMB each, to fund projects in internet + AI medical innovation and marketing system expansion[125]. - The company has committed to using up to RMB 18,000 million of idle raised funds to temporarily supplement working capital, with a usage period not exceeding 12 months[101]. Environmental and Social Responsibility - The company adheres to environmental protection standards, with all emissions within the regulatory limits[189]. - The company actively fulfills its social responsibilities and complies with relevant laws and regulations[188]. - The company has implemented training programs to enhance employee skills and maintain employee rights[187]. - The company has received feedback from the China Securities Regulatory Commission regarding its bond issuance[191]. Shareholder and Equity Management - The company has a long-term commitment not to transfer or entrust the management of its shares within 36 months from the date of listing[141]. - The company has fulfilled its commitments regarding share transfer restrictions and other obligations as of the reporting date[141]. - The total number of shares increased from 859,275,466 to 869,411,466, with an increase of 10,136,000 shares due to the issuance of restricted stock[196]. - The number of restricted shares decreased by 95,389,400, resulting in a total of 34,593,670 restricted shares, which is 3.98% of the total shares[196].

Financial Performance - The company's operating revenue for Q1 2021 was ¥329,145,737.18, a decrease of 1.25% compared to ¥333,323,551.29 in the same period last year[7]. - Net profit attributable to shareholders increased by 42.16% to ¥31,462,503.73 from ¥22,131,834.99 year-on-year[7]. - The net profit after deducting non-recurring gains and losses rose by 54.56% to ¥22,073,223.29 compared to ¥14,281,279.87 in the previous year[7]. - Basic earnings per share increased by 33.33% to ¥0.04 from ¥0.03 year-on-year[7]. - The company reported a total comprehensive income for the quarter of CNY 26,560,034.51, compared to CNY 17,427,093.54 in the previous period, indicating a growth of about 52.5%[73]. - Net profit for the quarter was CNY 28,885,512.16, up from CNY 22,025,430.47, indicating a year-over-year increase of about 31.1%[72]. Cash Flow and Liquidity - The net cash flow from operating activities was negative at ¥180,371,345.32, worsening by 38.34% from a negative ¥130,383,163.44 in the same period last year[7]. - The cash inflow from operating activities totaled CNY 301,939,890.59, a decrease from CNY 327,283,192.51 in the previous period[79]. - The net cash outflow from operating activities was CNY -180,371,345.32, compared to CNY -130,383,163.44 in the prior period, indicating a worsening cash flow situation[80]. - The total cash and cash equivalents at the end of the period amounted to CNY 891,904,820.37, a significant increase from CNY 469,305,480.16 in the previous period[81]. - The company’s cash and cash equivalents increased by 55.19%, totaling CNY 943.95 million, primarily due to the proceeds from convertible bonds[19]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥5,360,110,615.47, an increase of 13.51% from ¥4,722,321,862.47 at the end of the previous year[7]. - Current liabilities decreased to CNY 810,106,186.93 from CNY 1,129,899,965.62, a reduction of approximately 28.3%[63]. - Non-current liabilities increased significantly to CNY 1,322,682,794.81 from CNY 593,776,580.54, marking an increase of about 123%[63]. - The total liabilities increased to CNY 2,132,788,981.74 from CNY 1,723,676,546.16, indicating a rise of approximately 23.8%[63]. Investments and Expenditures - Development expenditures surged by 202.26% to CNY 48.19 million, driven by increased investment in capitalized projects[19]. - The company reported a cash inflow from investment activities of CNY 174,646,697.43, significantly higher than CNY 32,980,800.69 in the previous period[80]. - The company raised a total of RMB 57,299.99 million through a non-public offering of 51,390,100 shares at RMB 11.15 per share, with a net amount of RMB 56,540.28 million after deducting fees[51]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 47,437[11]. - The largest shareholder, Hangzhou Sichuang Medical Technology Group Co., Ltd., held 10.46% of the shares, amounting to 90,912,612 shares[11]. - The company intends to repurchase shares with a total amount not less than RMB 150 million and not exceeding RMB 300 million, with a repurchase price capped at RMB 11 per share[41]. Risks and Challenges - The company faces intensified market competition and technological development risks, prompting strategies to enhance its competitive edge[22][23]. - The ongoing COVID-19 pandemic poses risks to the company's export sales and timely collections in its smart healthcare business[29]. - The company is exposed to international trade policy and exchange rate fluctuations, particularly in its commercial intelligence business, which has a significant export ratio[27]. - The company is at risk of talent loss in the knowledge-intensive healthcare sector, which could negatively impact profitability if key personnel are not replaced promptly[26]. Strategic Initiatives - The company is expanding into the digital health service market centered on single-disease AI services, opening new growth opportunities[20]. - A strategic cooperation agreement was signed between the wholly-owned subsidiary and Shandong Inspur Cloud Service Information Technology Co., Ltd. to collaborate on medical innovation application projects[40]. - The company has initiated several projects, including AI-based medical applications and marketing system expansion, with specific funding allocations detailed in the report[50].

Financial Performance - Net profit attributable to shareholders decreased by 4.18% to CNY 30,587,200.89 for the reporting period[9] - Operating revenue for the reporting period was CNY 309,492,893.38, a decline of 10.06% year-on-year[9] - The net profit after deducting non-recurring gains and losses dropped by 95.95% to CNY 1,211,099.53[9] - Basic earnings per share decreased by 10.89% to CNY 0.0352[9] - The weighted average return on equity was 1.04%, down by 0.41% compared to the previous year[9] - Total operating revenue for Q3 2020 was CNY 309,492,893.38, a decrease from CNY 344,101,775.15 in the previous period[38] - Net profit for Q3 2020 was CNY 31,335,774.64, slightly down from CNY 31,736,419.41 in the same period last year[40] - The company reported a total comprehensive income of CNY 27,030,357.09 for Q3 2020, down from CNY 31,565,980.50 in the previous year[41] Assets and Liabilities - Total assets increased by 11.58% to CNY 4,713,652,580.08 compared to the end of the previous year[9] - Total current assets increased to CNY 2,487,003,673.96 as of September 30, 2020, up from CNY 2,255,461,284.14 at the end of 2019, representing an increase of approximately 10.25%[30] - Non-current assets totaled CNY 2,226,648,906.12, an increase from CNY 1,969,155,467.77, marking a growth of approximately 13.09%[31] - Total liabilities increased to CNY 1,616,051,784.69 from CNY 1,280,490,427.53, which is an increase of approximately 26.23%[32] - The company's total equity reached CNY 3,097,600,795.39, up from CNY 2,944,126,324.38, representing an increase of approximately 5.21%[33] - Total liabilities reached CNY 1,280,490,427.53, with current liabilities at CNY 1,011,384,916.44 and non-current liabilities at CNY 269,105,511.09[63] Cash Flow - The company reported a net cash flow from operating activities of CNY -31,574,966.66, an increase of 77.72% year-to-date[9] - Net cash flow from operating activities improved by 77.72% to -¥31,574,966.66 from -¥141,699,636.49 due to optimization of the business model[18] - Cash inflow from financing activities was CNY 761,123,862.83, compared to CNY 403,882,800.00 in the previous period, leading to a net cash flow of CNY 82,548,100.36[56] - The cash inflow from operating activities totaled CNY 1,181,259,933.15, an increase from CNY 1,003,030,301.92 in the previous period[55] Shareholder Information - The total number of shareholders at the end of the reporting period was 48,830[13] - The largest shareholder, Hangzhou Sichuang Medical Technology Group Co., Ltd., held 10.46% of the shares[13] Research and Development - Research and development expenses increased by 21.11% to ¥122,645,992.93 from ¥101,264,304.18 due to the rise in R&D projects including the main data management platform software[17] - Research and development expenses for Q3 2020 were CNY 57,845,914.98, compared to CNY 36,202,396.48 in the previous year, reflecting a significant increase[39] Government Support - The company received government subsidies amounting to CNY 51,197,307.45 during the reporting period[10] Other Financial Metrics - Management expenses increased by 45.23% to ¥140,181,127.43 from ¥96,521,102.01 primarily due to increased equity incentive expenses[17] - Other income rose by 101.71% to ¥65,546,199.09 from ¥32,494,497.41 due to enhanced innovation capabilities leading to special funding subsidies[17] - Long-term borrowings increased by 95.20% to ¥524,477,568.41 from ¥268,687,211.09 as part of the company's financing structure optimization[17]

Financial Performance - The company's operating revenue for the first half of 2020 was approximately ¥718.50 million, a decrease of 0.73% compared to ¥723.77 million in the same period last year[19]. - The net profit attributable to shareholders was approximately ¥46.42 million, down 48.04% from ¥89.34 million year-on-year[19]. - The net profit after deducting non-recurring gains and losses was approximately ¥27.31 million, a decline of 64.93% compared to ¥77.88 million in the previous year[19]. - The net cash flow from operating activities was negative at approximately -¥184.23 million, worsening by 36.63% from -¥134.84 million in the same period last year[19]. - The basic earnings per share decreased by 54.55% to ¥0.05 from ¥0.11 in the same period last year[19]. - The diluted earnings per share also fell by 54.55% to ¥0.05 compared to ¥0.11 in the previous year[19]. - Operating profit was CNY 59.37 million, down 41.83% year-on-year[49]. - The smart medical business revenue grew approximately 26.80% year-on-year, while the business intelligence segment revenue decreased by about 21.48%[49]. - The company incurred an additional CNY 18.92 million in stock incentive expenses, which impacted net profit calculations[49]. - The net profit for the first half of 2020 was CNY 47,969,360.82, down 44.05% from CNY 85,712,790.08 in the same period last year[180]. Assets and Liabilities - The total assets at the end of the reporting period were approximately ¥4.56 billion, an increase of 7.91% from ¥4.22 billion at the end of the previous year[19]. - The total liabilities rose to CNY 1,502,358,948.36, compared to CNY 1,280,490,427.53 at the end of 2019, indicating an increase of approximately 17.3%[172]. - The total equity attributable to shareholders of the parent company reached CNY 3,004,651,237.42, up from CNY 2,891,926,589.19, reflecting an increase of approximately 3.9%[173]. - The company's current assets totaled CNY 2,422,003,150.71, up from CNY 2,255,461,284.14 at the end of 2019, reflecting a growth of approximately 7.4%[171]. - The company's total liabilities to total assets ratio was approximately 32.9% as of June 30, 2020, compared to 30.3% at the end of 2019[171]. Cash Flow - The total cash flow from operating activities for the first half of 2020 was a net outflow of CNY 184,226,366.86, worsening from a net outflow of CNY 134,837,270.53 in the same period of 2019[188]. - The company reported a total cash inflow from financing activities of CNY 744,861,724.87 in the first half of 2020, compared to CNY 263,899,497.20 in the same period of 2019[189]. - The cash and cash equivalents at the end of the first half of 2020 amounted to CNY 506,631,827.00, an increase from CNY 214,153,844.83 at the end of the first half of 2019[189]. - The company’s cash and cash equivalents decreased to CNY 274,556,138.06 from CNY 376,117,706.45, a drop of 27.14%[175]. - The company experienced a decrease in cash flow from investing activities due to significant investment payments of 627,382,802.27 CNY[192]. Research and Development - The company invested 74.45 million CNY in R&D, accounting for 10.36% of its operating revenue, emphasizing its commitment to innovation and technology accumulation[39]. - Research and development investment rose by 14.43% to ¥74,448,951.15, primarily due to increased projects related to the main data management platform[62]. - The company has made significant investments in artificial intelligence, focusing on the development of the ThinkGo cognitive engine, which enhances clinical diagnosis capabilities through deep learning[42]. - The company has received 39 software copyrights, 12 utility model patents, and 4 invention patents during the reporting period, showcasing its commitment to innovation[43]. - The company’s research and development team is actively working on technologies related to supply chain management and new retail industry transformations[43]. Market Position and Strategy - The company is a leading provider of smart medical solutions in China, actively participating in the development of national standards for hospital information interoperability[33]. - The company aims to build an "Android" for the medical industry, developing a smart open platform architecture to enhance healthcare services and support personalized medical applications[40]. - The company is focused on expanding its overseas smart healthcare market, which in turn enhances its domestic market influence[41]. - The company is transitioning its smart medical business from a system sales model to an operational service model, aiming for stable service revenue[55]. - The company plans to enhance its technology architecture and expand market efforts in smart hospitals and medical communities[50]. Shareholder and Equity Information - The company reported a total share capital of 859,275,466 shares, with 10,136,000 new shares issued during the reporting period, resulting in a new total of 869,411,466 shares[141]. - The largest shareholder, Lu Nan, holds 11.35% of the shares, with a total of 98,715,500 shares[151]. - The company has a significant portion of shares pledged, with Lu Nan's shares being subject to pledge[151]. - The company confirmed that all commitments made to minority shareholders were fulfilled in a timely manner[113]. - The company plans to engage in daily related transactions with affiliated entities totaling no more than RMB 54 million for the year 2020[121]. Compliance and Governance - The company did not conduct an audit for the semi-annual financial report[109]. - There were no major litigation or arbitration matters during the reporting period[111]. - The company has not experienced any penalties or rectification issues during the reporting period[112]. - The company has implemented a stock option and restricted stock incentive plan, granting 12.321 million stock options and 10.136 million restricted shares to 66 and 63 incentive recipients respectively[115]. - The company is currently fulfilling its commitments regarding the management of its shares and has no plans to engage in competitive activities with its subsidiaries[105].