Group 1: Business Overview - The company focuses on five main business segments: financial industry, smart payment terminals, IoT, enterprise services, and smart education [1] - The demand for smart cards remains strong, driven by the promotion of digital RMB and the third-generation social security card [1] - The market for communication smart cards is stable, with significant demand for eSIM products due to the growth of 5G and IoT industries [1] Group 2: Financial Performance and Challenges - The company aims to stabilize the gross profit margin of smart card products through product innovation and enhanced sales of high-end products [2] - Rising raw material prices and supply chain challenges are impacting some products, prompting the company to adjust its supply chain strategy [2] - R&D investment in 2020 was approximately 190 million CNY, accounting for about 11% of revenue, with a focus on blockchain, AI, cloud-native, and edge computing technologies [2] Group 3: Digital Currency and Smart Education - The company is developing a digital RMB hardware wallet, currently being tested by some banks, in response to the increasing pilot cities and acceptance scenarios for digital RMB [2] - The smart education business faces challenges due to a historical focus on hardware over software, but the company is working to expand its market presence and improve revenue [2] Group 4: Corporate Governance and Reforms - The transfer of shares by the major shareholder is part of the reform policies for enterprises affiliated with higher education institutions, with necessary approvals obtained from relevant authorities [3]

Financial Performance - The company's operating revenue for Q3 2022 was ¥549,238,407.43, representing a 68.61% increase year-over-year[5]. - Net profit attributable to shareholders reached ¥75,309,237.65, a significant increase of 770.80% compared to the same period last year[5]. - The basic earnings per share (EPS) was ¥0.1751, reflecting a 770.88% increase year-over-year[5]. - The company reported a 30.96% increase in operating revenue for the year-to-date period, driven by improved supply chain management and increased sales of smart card products[11]. - The company's net profit attributable to shareholders for the year-to-date period increased by 454.01%, primarily due to significant growth in international market sales[14]. - Net profit for Q3 2022 was ¥87,702,881.92, a significant recovery from a net loss of ¥28,194,568.82 in Q3 2021[27]. - Basic and diluted earnings per share were CNY 0.2037, an increase from a loss of CNY 0.0575 in the previous period[28]. Assets and Liabilities - Total assets at the end of the reporting period were ¥3,294,753,217.37, up 4.30% from the end of the previous year[5]. - The company's total assets increased to ¥3,294,753,217.37, compared to ¥3,158,930,586.38 at the end of the previous quarter, marking a growth of 4.3%[25]. - The total liabilities increased to ¥1,792,463,547.42 from ¥1,744,343,798.35, reflecting a growth of 2.8%[25]. - The company experienced a 316.75% increase in prepayments due to adjustments in settlement periods with suppliers amid tight supply of key components[8]. Cash Flow - Cash flow from operating activities showed a net amount of ¥74,998.54, marking a 100.03% increase year-to-date[5]. - The net cash flow from operating activities increased by 100.03% compared to the same period last year, primarily due to increased sales revenue and improved collection of sales payments[15]. - The net cash flow from investing activities surged by 608.87% year-on-year, mainly due to the repayment of loans and interest from Deep Creation Intelligent and the equity transfer payment from Tianyu Education[15]. - The net cash flow from financing activities decreased by 492.66% compared to the previous year, primarily due to an increase in the repayment of maturing bank loans[15]. - Cash flow from operating activities generated a net cash inflow of CNY 74,998.54, recovering from a net outflow of CNY 223,590,501.30 in the previous period[29]. - Cash inflow from investment activities totaled CNY 503,616,024.01, down from CNY 856,609,631.77 in the previous period[30]. - The net cash flow from investment activities was CNY 300,473,773.01, compared to a net outflow of CNY 59,047,631.68 in the previous period[30]. - Cash inflow from financing activities was CNY 374,703,004.72, an increase from CNY 163,079,237.79 in the previous period[30]. - The net cash flow from financing activities was a negative CNY 28,368,926.23, worsening from a negative CNY 4,786,732.59 in the previous period[30]. - The cash and cash equivalents at the end of the period amounted to CNY 658,963,014.51, up from CNY 296,763,691.12 at the end of the previous period[30]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 24,845[17]. - The top shareholder, Wuhan Tongyu Investment Partnership, holds 24.58% of the shares, amounting to 105,699,178 shares[17]. - The second-largest shareholder, Wuhan Optics Valley Venture Capital Fund, owns 14.63% of the shares, totaling 62,917,227 shares[17]. - The company has no preferred shareholders with restored voting rights[17]. Operational Changes - The company has decided to dissolve Wuxin Tianyu due to a lack of operational activities and future investment plans[21]. - The company appointed Sun Jing as the vice chairman and Zhang Xinfang as the general manager during the board meeting held on August 1, 2022[21]. Research and Development - Research and development expenses for Q3 2022 were ¥99,269,787.21, down from ¥125,520,061.53, a decrease of 20.9%[27]. Other Financial Metrics - Total operating revenue for Q3 2022 reached ¥1,321,072,343.11, an increase of 31% compared to ¥1,008,775,160.01 in the same period last year[26]. - Total operating costs amounted to ¥1,195,399,084.14, up from ¥1,032,649,531.35, reflecting a rise of approximately 15.7%[26]. - Accounts receivable rose to ¥640,390,278.57, up from ¥418,688,917.83, indicating a 53% increase[25]. - Inventory decreased to ¥355,395,035.83 from ¥413,002,651.45, showing a decline of 14%[25]. - Short-term borrowings increased to ¥691,399,824.73, compared to ¥578,711,070.48, reflecting a rise of 19.4%[25]. - The company's cash and cash equivalents were not explicitly stated but are part of the total current assets of ¥2,077,146,584.07, which increased from ¥1,976,758,530.47[25]. Audit Information - The company did not conduct an audit for the third quarter report[31].

Financial Performance - The company's operating revenue for the first half of 2022 was ¥771,833,935.68, representing a 13.00% increase compared to ¥683,024,382.85 in the same period last year[18]. - The net profit attributable to shareholders was ¥12,292,295.35, a significant turnaround from a loss of ¥13,518,497.54 in the previous year, marking a 190.93% improvement[18]. - The net profit after deducting non-recurring gains and losses was ¥11,471,084.59, compared to a loss of ¥24,065,616.63 last year, reflecting a 147.67% increase[18]. - The company's total assets increased by 5.81% to ¥3,342,606,567.03 from ¥3,158,930,586.38 at the end of the previous year[18]. - The net assets attributable to shareholders rose by 0.88% to ¥1,411,806,279.61 from ¥1,399,513,984.26 at the end of the previous year[18]. - The company reported a basic earnings per share of ¥0.0286, a recovery from a loss of ¥0.0314 per share in the same period last year, representing a 191.08% increase[18]. - The net cash flow from operating activities improved by 42.12%, with a net outflow of ¥226,247,774.17 compared to ¥390,860,222.96 in the previous year[18]. - The company's revenue for the reporting period reached 772 million, an increase of 13.00% year-on-year, while operating costs rose to 589 million, up 18.48%[34]. - The net profit attributable to shareholders was 12.29 million, with a net profit of 11.47 million after deducting non-recurring gains and losses[34]. Business Segments - The main business areas include financial industry services, smart payment terminals, IoT, and enterprise services, focusing on the development and sales of financial IC cards and digital RMB products[26]. - The financial industry segment generated revenue of 163 million, a decrease of 12.67% year-on-year, with operating costs of 118 million, down 9.33%[34]. - The smart payment terminal business achieved revenue of 381 million, an increase of 11.43% year-on-year, with operating costs of 334 million, up 17.34%[36]. - The Internet of Things (IoT) business achieved revenue of 116 million yuan, a year-on-year increase of 158.73%, with operating costs of 85 million yuan, up 161.93%[38]. - The enterprise services segment reported revenue of 7.12 million yuan, a decrease of 32.51% year-on-year, with operating costs of 1.46 million yuan, down 44.31%[39]. - International business revenue reached 101 million yuan, reflecting a significant year-on-year increase of 226.27%, with operating costs of 50 million yuan, up 97.16%[40]. Research and Development - The company launched new products, including a facial temperature measurement verification machine and a smart electronic student ID, enhancing its product portfolio[33]. - The company filed 14 patents during the reporting period, including 9 invention patents, and obtained over 110 certifications for its products from third-party testing agencies[32]. - The company is actively enhancing its research and development capabilities, particularly in data security, cloud computing, and blockchain technologies[34]. - Research and development investment decreased by 18.88% to approximately 83.98 million yuan[43]. - The company's R&D expenses amounted to CNY 60.63 million, a decrease of 29.7% from CNY 86.24 million in the previous year[1]. Market Strategy - The company aims to expand its market presence in the smart payment terminal sector, targeting third-party payment institutions and commercial banks[26]. - The company is focusing on expanding its market share in financial IC cards and promoting new products related to digital currency applications[35]. - The digital RMB pilot program has expanded to 23 regions, which is expected to drive demand for IT system upgrades and digital payment solutions in the financial sector[29]. - The company plans to enhance its IoT product competitiveness and expand into vertical markets such as smart metering and smart security[38]. - The enterprise services segment aims to leverage digital transformation trends to develop and promote smart tax services for small and medium-sized enterprises[39]. Financial Health - Cash and cash equivalents increased to ¥826.8 million, representing 24.74% of total assets, up 11.11 percentage points from the previous year[48]. - Accounts receivable rose to ¥553.7 million, accounting for 16.57% of total assets, an increase of 3.32 percentage points due to new sales during the reporting period[48]. - Fixed assets increased to ¥418.5 million, making up 12.52% of total assets, up 4.92 percentage points as a result of the completion of the data security industrial park project[48]. - Short-term borrowings increased to ¥830.9 million, representing 24.86% of total liabilities, up 6.54 percentage points due to increased inventory payment needs[48]. - The total liabilities of the company reached CNY 1,915,878,842.49, up from CNY 1,744,343,798.35, which is an increase of about 9.83%[133]. - The total equity at the end of the reporting period is CNY 1,426,727,724.54, up from CNY 1,327,767,176.71 at the end of the previous year, indicating an increase of about 7.47%[153]. Corporate Governance - The company does not plan to distribute cash dividends or issue bonus shares[4]. - The company has not implemented any stock incentive plans or employee shareholding plans during the reporting period[72]. - The company reported no major litigation or arbitration matters during the reporting period[91]. - The company has not engaged in any major related party transactions during the reporting period[94]. - The company completed the sale of 77.0370% equity in its subsidiary Tianyu Education, receiving a total of CNY 400 million for the equity transfer and CNY 472 million for debt repayment[107]. Operational Challenges - The company faces risks related to declining sales of traditional smart card products due to supply chain constraints, and is implementing targeted control measures[64]. - The company has increased inventory of key upstream components, such as chips, to address supply shortages and rising prices, but faces potential inventory impairment risks if chip prices decline rapidly[65]. - The company plans to maintain a balance in inventory levels based on production needs to mitigate inventory impairment risks[65]. Accounting and Compliance - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the financial statements reflect a true and complete picture of its financial status[172]. - The company operates under the assumption of going concern, with no significant doubts about its ability to continue operations in the next 12 months[170]. - The financial report for the first half of the year was not audited[129]. - The company uses RMB as its functional currency for accounting purposes[175].

Financial Performance - The company's revenue for Q1 2022 was CNY 347,202,235.88, representing an increase of 18.75% compared to CNY 292,381,342.30 in the same period last year[4]. - Net profit attributable to shareholders was CNY 926,745.46, a significant turnaround from a loss of CNY 14,013,941.63 in the previous year, marking a 106.61% increase[4]. - The net profit after deducting non-recurring gains and losses was CNY 2,733,199.32, up 114.34% from a loss of CNY 19,062,188.23 year-on-year[4]. - Basic and diluted earnings per share were both CNY 0.0022, compared to a loss of CNY 0.0326 per share in the same period last year, reflecting a 106.75% increase[4]. - Operating profit for Q1 2022 was CNY 2,012,179.82, a significant recovery from a loss of CNY 13,409,705.11 in the same period last year[25]. - Net profit for Q1 2022 reached CNY 1,109,740.80, compared to a net loss of CNY 17,914,425.06 in Q1 2021, indicating a turnaround in profitability[26]. Cash Flow - The company's cash flow from operating activities improved, with a net cash flow of -CNY 50,418,319.40, an 81.77% improvement from -CNY 276,608,481.81 in the previous year[4]. - Cash flow from operating activities was CNY 329,185,179.32, an increase from CNY 316,912,448.39 in Q1 2021, indicating improved cash generation[28]. - Total cash inflow from operating activities was 362,842,188.79 CNY, compared to 325,451,680.67 CNY in Q1 2021[29]. - Cash outflow from operating activities totaled 413,260,508.19 CNY, down from 602,060,162.48 CNY year-over-year[29]. - The net cash flow from investing activities was -47,259,913.10 CNY, slightly worse than -44,176,434.05 CNY in the previous year[29]. - The net cash flow from financing activities was 48,483,011.17 CNY, a recovery from -97,448,211.30 CNY in Q1 2021[30]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 3,164,932,337.29, a slight increase of 0.19% from CNY 3,158,930,586.38 at the end of the previous year[4]. - The total current liabilities increased to CNY 1,646,000,000.00 from CNY 1,575,000,000.00, indicating a rise of approximately 4.52%[22]. - Total liabilities as of the end of Q1 2022 were CNY 1,749,235,808.46, slightly up from CNY 1,744,343,798.35 at the end of Q1 2021[23]. - The company reported a total of 1,941,801,480.02 in current assets, down from 1,976,758,530.47, a decrease of about 1.77%[22]. - The company's inventory decreased to CNY 380,477,489.49 from CNY 413,002,651.45, a reduction of about 7.85%[22]. Investments and Expenses - Research and development expenses increased by 55.49% year-on-year, reflecting the company's commitment to investing in new technology[9]. - Research and development expenses decreased to CNY 29,348,163.55 from CNY 47,436,314.55 year-over-year, suggesting a potential shift in investment strategy[25]. - The company reported a decrease in financial expenses to CNY 1,182,880.84 from CNY 2,072,649.79, reflecting improved cost management[25]. Equity and Shareholder Value - The company’s total equity increased to CNY 1,415,696,528.83 from CNY 1,414,586,788.03, indicating a slight growth in shareholder value[23]. - The company transferred 77.0370% equity stake in Tianyu Education to Shenzhen Deep Creation Intelligent Group Co., Ltd. to focus on its main business, receiving CNY 270 million in debt repayment[19]. Other Key Points - The company experienced a 41.62% decrease in notes receivable, primarily due to the maturity and collection of commercial acceptance bills[10]. - The company’s sales revenue from IoT products and cloud speakers increased year-on-year, contributing to the overall revenue growth despite challenges in the supply chain[12]. - The report for Q1 2022 was not audited[31].

Financial Performance - The company's operating revenue for 2021 was ¥1,430,301,662.77, a decrease of 15.54% compared to ¥1,693,529,679.18 in 2020[18]. - The net profit attributable to shareholders was -¥149,872,516.78, representing a decline of 146.76% from -¥60,737,085.52 in the previous year[18]. - The net cash flow from operating activities was -¥254,145,611.54, a significant drop of 202.37% compared to ¥248,252,927.63 in 2020[18]. - The total assets at the end of 2021 amounted to ¥3,158,930,586.38, reflecting a 12.02% increase from ¥2,820,058,176.12 at the end of 2020[18]. - The net assets attributable to shareholders increased by 5.40% to ¥1,399,513,984.26 from ¥1,327,767,176.71 in 2020[18]. - The basic earnings per share for 2021 was -¥0.3485, a decrease of 146.81% from -¥0.1412 in 2020[18]. - The weighted average return on equity was -11.97%, down 7.58 percentage points from -4.39% in the previous year[18]. - The company achieved a total revenue of 1.43 billion yuan in 2021, a year-on-year decrease of 15.54%[38]. - The net profit attributable to shareholders was -150 million yuan, with a net profit of -171 million yuan after deducting non-recurring gains and losses[38]. Revenue Breakdown - Revenue from the financial industry segment was 334 million yuan, down 14.12% year-on-year, with a cost of 245 million yuan, a decrease of 11.09%[38]. - The smart payment terminal business generated revenue of 692 million yuan, a decline of 23.84% year-on-year, with costs amounting to 591 million yuan, down 27.49%[38]. - The Internet of Things (IoT) business achieved revenue of 102 million yuan, a year-on-year increase of 69.80%, with operating costs rising by 105.40% to 80 million yuan[41]. - The company's international business reported revenue of 94 million yuan, a significant year-on-year increase of 121.20%, while operating costs increased by 129.71% to 72 million yuan[43]. - The smart card segment generated revenue of approximately 479 million yuan, accounting for 33.49% of total revenue, with a slight year-on-year increase of 1.10%[46]. - The terminal segment's revenue was approximately 683 million yuan, representing 47.78% of total revenue, but saw a decline of 22.21% year-on-year[46]. - The enterprise services business reported revenue of 32 million yuan, a decrease of 42.12% year-on-year, with operating costs down by 26.41% to 18 million yuan[42]. Investment and R&D - Research and development expenses amounted to 240,674,622.31 yuan, which is 16.83% of the operating revenue, an increase from 11.31% in the previous year[60]. - The number of R&D personnel increased by 16.57% to 992, with R&D personnel now accounting for 42.56% of the total workforce[59]. - The company launched 107 patent applications, including 94 invention patents, enhancing its market competitiveness[36]. - The company aims to enhance its product offerings through R&D in data security, blockchain, cloud computing, artificial intelligence, and smart hardware, focusing on creating differentiated products[91]. Market Strategy and Expansion - The company is focusing on the development of smart payment terminals and IoT solutions, driven by the increasing demand for digital transformation in various industries[29]. - The company is actively participating in the digital economy, aligning with national policies to enhance digital infrastructure and promote digital transformation in traditional industries[27]. - The company plans to expand the issuance scale of high-value communication smart cards and stabilize traditional communication card business[41]. - The company aims to enhance its product offerings in digital currency payment scenarios, leveraging its expertise in big data and cloud computing[40]. - The company is committed to expanding its international business by leveraging cost and technology advantages to penetrate overseas markets, particularly along the Belt and Road Initiative[93]. Risk Management - The company faces risks related to tight supply and rising prices of key upstream components, impacting sales and gross profit margins[4]. - The company is implementing targeted control measures to stabilize product gross margins and improve sales structure through enhanced manufacturing processes[94]. - The company has outlined potential risks and countermeasures in its management discussion and analysis section[4]. - The company faces risks related to declining sales revenue and gross margin due to supply chain issues and rising prices of key components like chips[94]. Corporate Governance - The company maintains independence from its controlling shareholders in terms of decision-making and operational activities[107]. - The governance structure of the company aligns with the regulations set by the China Securities Regulatory Commission[106]. - The company has not faced any penalties or regulatory measures from securities authorities in the past five years[109]. - The company has a clear plan for shareholder dividend returns over the next three years (2021-2023)[109]. - The company has designated specific newspapers and websites for information disclosure to ensure equal access for all shareholders[105]. Shareholder Engagement - The annual shareholders' meeting had a participation rate of 45.46% on May 14, 2021, where key reports and proposals were approved[108]. - The first interim shareholders' meeting had a participation rate of 46.19% on September 27, 2021, approving the election of board members[109]. - The second interim shareholders' meeting had a participation rate of 47.41% on December 6, 2021, where several key proposals regarding stock issuance were approved[109]. - The third interim shareholders' meeting had a participation rate of 19.69% on December 30, 2021, approving the sale of equity in a subsidiary[109]. Environmental Responsibility - The company reported a total emission of 0.11484 tons/year of non-methane total hydrocarbons, which is compliant with the national standards[150]. - The chemical oxygen demand (COD) from wastewater discharge was 0.017 tons/year, also meeting the required standards[150]. - The ammonia nitrogen level in wastewater was recorded at 0.0012 tons/year, in compliance with environmental regulations[150]. - The company has implemented a comprehensive environmental management system, including regular monitoring and third-party assessments of wastewater, waste gas, and noise[155]. - The company has not reported any administrative penalties related to environmental issues during the reporting period[156]. Employee Management - The total number of employees at the end of the reporting period is 2,331, with 1,394 in the parent company and 937 in major subsidiaries[137]. - The company has a total of 992 technical personnel, 692 sales personnel, and 377 production personnel[137]. - The company has established a comprehensive salary system and continuously improves employee compensation and benefits policies[138]. - The company emphasizes training and development for management and technical personnel to support strategic goals[139]. Debt Management - The company is actively managing its debt obligations and ensuring compliance with financial commitments[164]. - The company has a remaining debt of RMB 202 million that has not been paid[165]. - The company is owed RMB 33,056.36 million from Deep Creation Intelligent, which is to be repaid by March 31, 2022, as part of the debt repayment agreement[164]. - The company has made commitments to maintain independence in assets, personnel, finance, and business operations, ensuring no conflicts of interest with related parties[165]. Changes in Management - The company experienced a change in its board, with several directors and supervisors resigning due to various reasons, including work-related issues and term expirations[113]. - The current management team includes experienced professionals with backgrounds in finance, technology, and investment management, enhancing the company's strategic capabilities[114][115][116]. - The company has undergone significant management changes, which may impact its operational strategies moving forward[113]. Related Party Transactions - The company has established a commitment to conduct related party transactions at fair market prices, adhering to legal and regulatory requirements[168]. - The company has no significant related party transactions in daily operations during the reporting period[179]. - The company has no transactions with financial companies that have related relationships[183].

Financial Performance - The company's operating revenue for Q3 2021 was CNY 325,750,777.16, a decrease of 2.93% year-on-year, and a total revenue of CNY 1,008,775,160.01 for the year-to-date, down 18.91% compared to the same period last year[4] - The net profit attributable to shareholders for Q3 2021 was a loss of CNY 11,226,788.85, a decrease of 3.07% year-on-year, with a year-to-date loss of CNY 24,745,286.39, which is an increase of 43.13% compared to the previous year[4] - Total operating revenue for Q3 2021 was ¥1,008,775,160.01, a decrease of 19% compared to ¥1,244,039,776.89 in the same period last year[34] - Net profit for Q3 2021 was -¥28,194,568.82, an improvement from -¥53,421,344.13 in Q3 2020[36] - The company reported a gross margin of approximately -2.35% for Q3 2021, compared to -3.71% in Q3 2020[36] Assets and Liabilities - The company's total assets at the end of the reporting period were CNY 2,800,197,057.01, a decrease of 0.70% from the end of the previous year[5] - The total assets as of Q3 2021 amounted to ¥2,800,197,057.01, a slight decrease from ¥2,820,058,176.12 at the end of the previous quarter[32] - Total liabilities were reported at ¥1,500,995,995.00, compared to ¥1,492,662,545.29 in the previous quarter[32] - The total cash and cash equivalents decreased by -287,998,162.71, compared to a decrease of -313,617,593.13 in the prior period[39] - Total liabilities amounted to approximately CNY 1,492.66 million, with a slight increase to CNY 1,495.01 million[43] Cash Flow - Cash flow from operating activities showed a net outflow of CNY 223,590,501.30 year-to-date, reflecting a significant decrease of 419.72% compared to the previous year[4] - The company's cash flow from operating activities showed a significant improvement, with a net cash outflow of -¥23,168,417.97 in Q3 2021, compared to -¥46,420,602.60 in Q3 2020[36] - The net cash flow from investing activities increased by 83.87% compared to the same period last year, primarily due to significant redemptions of structured deposits and large certificates of deposit, while purchase amounts decreased substantially[23] - The net cash flow from financing activities decreased by 104.99% year-on-year, mainly due to the repayment of maturing bank loans[23] - Cash inflow from operating activities totaled 1,306,886,100.61, up from 1,144,044,742.87, reflecting a growth of approximately 14.2%[39] Inventory and Expenditures - Inventory increased by 56.27% compared to the previous year-end, as the company ramped up stockpiling of chips and components in response to supply shortages[12] - Development expenditures surged by 1,900.96% year-on-year, driven by increased investment in new technologies such as data security, blockchain, and artificial intelligence[13] - Research and development expenses for Q3 2021 were ¥125,520,061.53, slightly up from ¥124,367,466.04 in the previous year[35] Shareholder Information - As of September 30, 2021, the total number of ordinary shareholders was 20,029[25] - The largest shareholder, Wuhan Tongyu Investment Partnership, holds 24.58% of the shares, equating to 105,699,178 shares[25] Other Information - The report for the third quarter was not audited, which may affect the reliability of the financial data presented[44] - The company has not disclosed any new product developments or market expansion strategies in this report[45] - There were no mentions of mergers or acquisitions in the third quarter report[45] - The company did not provide specific future outlook or performance guidance in the available documents[45]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥683,024,382.85, a decrease of 24.81% compared to ¥908,447,459.02 in the same period last year[19]. - The net profit attributable to shareholders was -¥13,518,497.54, an improvement of 58.56% from -¥32,623,134.56 year-on-year[19]. - The net cash flow from operating activities was -¥390,860,222.96, representing a decline of 84.88% compared to -¥211,417,855.61 in the previous year[19]. - The total assets at the end of the reporting period were ¥2,464,510,573.75, down 12.61% from ¥2,820,058,176.12 at the end of the previous year[19]. - The net assets attributable to shareholders decreased by 1.02% to ¥1,314,248,679.17 from ¥1,327,767,176.71 at the end of the previous year[19]. - The basic earnings per share improved to -¥0.0314 from -¥0.0759, reflecting a 58.63% increase[19]. - The weighted average return on net assets was -1.02%, an improvement of 1.29 percentage points from -2.31% in the previous year[19]. - The company reported a net profit attributable to shareholders of -13.52 million yuan, indicating a loss[34]. - The net loss for the first half of 2021 was CNY 15.72 million, an improvement from a net loss of CNY 43.40 million in the first half of 2020[131]. - Total comprehensive income for the first half of 2021 was CNY 3,010,741.99, compared to CNY 5,878,660.06 in the same period of 2020, representing a decrease of approximately 48.8%[134]. Revenue and Costs - The company achieved operating revenue of 683 million yuan, a year-on-year decrease of 24.81%[34]. - The financial industry business generated operating revenue of 186 million yuan, a year-on-year increase of 36.13%, with sales volume of smart cards growing approximately 40%[34]. - The company’s smart payment terminal business reported revenue of 342 million CNY, a year-on-year decline of 50.05%, with operating costs of 285 million CNY, down 52.93% year-on-year[35]. - Total operating costs for the first half of 2021 were CNY 688.06 million, down 26.5% from CNY 937.39 million year-on-year[129]. - Operating costs decreased by 33.37% to 497.264 million CNY from 746.273 million CNY, as the company optimized its product sales structure[40]. Research and Development - R&D expenses increased by 9.22% as the company intensified investment in new technologies such as AI, blockchain, and cloud-native solutions[34]. - R&D investment increased by 27.48% to 103.521 million CNY, focusing on new technologies such as data security, blockchain, and artificial intelligence[41]. - The company has filed 41 patents during the reporting period, including 30 invention patents, and has received multiple international certifications for its financial IC card products[32]. Business Segments and Initiatives - The company is focusing on enhancing its smart manufacturing capabilities and has invested in automation and intelligent equipment to improve production efficiency[33]. - The company’s enterprise service and IoT businesses are in the cultivation phase, with revenue from new businesses remaining relatively small[34]. - The K12 smart education business is expected to benefit from government initiatives aimed at enhancing educational infrastructure and information technology[31]. - The IoT business achieved revenue of 45.0036 million CNY, an increase of 84.57% year-on-year, with operating costs of 32.2964 million CNY, up 108.23% year-on-year[36]. - The smart education business reported revenue of 65.2311 million CNY, a significant increase of 234.88% year-on-year, with operating costs of 20.7811 million CNY, up 146.82% year-on-year[38]. Financial Position and Assets - Cash and cash equivalents decreased to 328,073,145.74, representing 13.31% of total assets, down by 7.94 percentage points due to the repayment of maturing debts[48]. - Accounts receivable increased to 739,647,579.97, accounting for 30.01% of total assets, up by 3.94 percentage points[48]. - Inventory rose to 385,928,277.96, making up 15.66% of total assets, an increase of 6.18 percentage points as the company stocked up on chips and components in response to market supply shortages[48]. - The company's total liabilities decreased from CNY 1,492,662,545.29 to CNY 1,152,830,605.98, a reduction of about 22.8%[123]. - The company's total assets decreased from CNY 2,820,058,176.12 to CNY 2,464,510,573.75, reflecting a decline of approximately 12.6%[124]. Shareholder Information - The total number of shares is 430,056,000, with 4,067,212 shares subject to limited sale conditions, representing 0.95% of total shares[105]. - The largest shareholder, Wuhan Huagong Venture Capital Co., Ltd., holds 102,727,390 shares, representing 23.89% of total shares[109]. - The second largest shareholder, Wuhan Optics Valley Venture Capital Fund Co., Ltd., holds 62,917,227 shares, which is 14.63% of total shares[109]. - The company’s major shareholder, Guanggu Fund, reduced its holdings by 9,370,483 shares, accounting for 2.18% of the total share capital[101]. - The total number of common stock shareholders at the end of the reporting period is 25,762[109]. Risks and Challenges - The company faces risks related to tight supply and rising prices of key components, which may affect the shipment volume and gross profit margin of smart card and smart payment terminal products[4]. - The company faces risks related to declining prices of key products such as smart cards and payment terminals, which may weaken profitability[64]. - There is a risk of supply chain constraints for critical components, particularly chips, which could lead to increased costs and reduced sales volume[65]. - The company aims to strengthen supply chain management and accelerate smart manufacturing to control product costs and stabilize gross margins[65]. Compliance and Governance - The half-year financial report has not been audited[84]. - The company has not faced any environmental penalties or violations during the reporting period, adhering to environmental regulations[78]. - The company has established emergency response plans for environmental incidents and conducts regular drills[76]. - There are no significant litigation or arbitration matters reported during the period[86]. - The company has not engaged in any major related party transactions during the reporting period[89]. Accounting Policies - The financial statements are prepared based on the going concern assumption and comply with the relevant accounting standards issued by the Ministry of Finance[166]. - The company confirms that there are no significant doubts regarding its ability to continue as a going concern for the next 12 months[167]. - The accounting policies and estimates are tailored to the company's operational characteristics, particularly regarding revenue recognition[168]. - The company adheres to the accounting standards, ensuring that the financial statements accurately reflect its financial position as of June 30, 2021[169].

Financial Performance - The company's operating revenue for Q1 2021 was ¥292,381,342.30, representing a 54.92% increase compared to ¥188,724,954.24 in the same period last year[7]. - The net profit attributable to shareholders was -¥14,013,941.63, an improvement of 69.16% from -¥45,436,956.18 year-on-year[7]. - The basic earnings per share were -¥0.0326, improving by 69.16% from -¥0.1057 in the same period last year[7]. - The weighted average return on equity was -1.06%, an increase of 2.17 percentage points from -3.23% year-on-year[7]. - The company reported a net loss for Q1 2021 of CNY 17,914,425.06, an improvement from a net loss of CNY 52,238,320.58 in Q1 2020[48]. - Operating profit for Q1 2021 was CNY -13,409,705.11, compared to CNY -46,502,768.56 in the previous year, indicating a reduced loss[47]. - The total operating profit for Q1 2021 was CNY 3,717,472.88, a turnaround from an operating loss of CNY 14,562,431.21 in Q1 2020[49]. Cash Flow and Liquidity - The net cash flow from operating activities was -¥276,608,481.81, which is a 9.97% decline compared to -¥251,534,774.97 in the previous year[7]. - Cash and cash equivalents decreased by 69.93% compared to the end of the previous year, primarily due to the repayment of maturing debts[17]. - The company reported cash inflows from investment activities of CNY 326,680,630.59, a decrease from CNY 632,612,246.54 in the previous year[52]. - The company reported a net cash outflow from financing activities of -96,880,380.05 CNY in Q1 2021, contrasting with a net inflow of 99,983,256.39 CNY in Q1 2020[55]. - The net cash flow from investment activities was -35,511,527.09 CNY, compared to -88,537,753.46 CNY in the same period of 2020, indicating an improvement[55]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,525,685,649.15, down 10.44% from ¥2,820,058,176.12 at the end of the previous year[7]. - The company's total equity as of March 31, 2021, was CNY 1,309,481,205.77, down from CNY 1,327,395,630.83, reflecting a decrease of approximately 1.9%[40]. - Total liabilities decreased to CNY 1,170,867,635.49 from CNY 1,438,943,010.27 at the end of 2020, reflecting a reduction of 18.7%[44]. - The company's inventory rose to CNY 335,296,558.89, up from CNY 267,390,583.40, indicating an increase of around 25.4%[36][37]. - The company reported a significant reduction in short-term borrowings, which decreased to CNY 130,010,569.08 from CNY 162,330,000.00, a decline of about 19.9%[38][39]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 23,305[11]. - The top three shareholders held a combined 45.20% of the company's shares, with Wuhan Huagong Venture Capital holding 23.89%[11]. Research and Development - R&D expenses increased by 34.31% year-on-year, primarily due to reduced R&D activities during the pandemic in the previous year[19]. - The company launched a series of algorithm model research and development in video, documents, and OCR, laying the foundation for future core competitiveness[22]. - The company has initiated technology research and productization work around digital currency, enhancing its future business capabilities[22]. Market and Operational Strategy - The company expanded its market promotion of financial IC card products, with sales volume and revenue increasing year-on-year[24]. - The company is actively adjusting its supply chain strategy to address the tight supply of key components in the smart payment terminal industry[25]. Compliance and Governance - The company has not reported any violations regarding external guarantees during the reporting period[30]. - There were no overdue commitments from the actual controller, shareholders, or related parties during the reporting period[31]. - The company did not engage in any research, communication, or interview activities during the reporting period[32].

Financial Performance - The company's operating revenue for 2020 was ¥1,693,529,679.18, a decrease of 23.44% compared to ¥2,212,106,995.85 in 2019[16] - The net profit attributable to shareholders for 2020 was a loss of ¥60,737,085.52, representing a decline of 131.57% from a profit of ¥192,396,750.47 in 2019[16] - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of ¥91,882,864.51, a significant drop of 1739.14% compared to a profit of ¥5,605,549.39 in 2019[16] - The company's total assets increased by 5.18% to ¥2,820,058,176.12 at the end of 2020, up from ¥2,681,196,269.31 at the end of 2019[16] - The net assets attributable to shareholders decreased by 7.11% to ¥1,327,767,176.71 at the end of 2020, down from ¥1,429,432,553.06 at the end of 2019[16] - The company reported a negative basic earnings per share of ¥-0.1412 for 2020, compared to ¥0.4474 in 2019, marking a decline of 131.56%[16] - The company achieved operating revenue of 1.694 billion yuan, a year-on-year decrease of 23.44%[37] - The net profit attributable to shareholders was -60.7371 million yuan, indicating a significant decline in profitability[37] - The smart card business generated revenue of 479 million yuan, down 31.42% year-on-year[37] - The smart payment terminal business reported revenue of 908 million yuan, a decrease of 25.56% compared to the previous year[37] - The IoT business saw revenue growth of 720.31%, reaching 14.4741 million yuan, although it remains at a small scale[37] - The smart education business achieved revenue of 226 million yuan, an increase of 21.44% year-on-year, but still operates at a loss[37] - The company reported a total revenue of 1.5 billion RMB for the fiscal year 2020, representing a year-over-year growth of 15%[176] Research and Development - The company plans to enhance its research and development in new technologies such as artificial intelligence and blockchain to seize new market opportunities[4] - The company invested ¥191,490,824.88 in R&D in 2020, which accounted for 11.31% of its operating revenue, an increase from 10.72% in 2019[63] - The company is actively exploring new technologies such as blockchain, artificial intelligence, and cloud computing across various business sectors, including finance and education[60][62] - The company has developed a range of new products, including AI-powered solutions for education and finance, and is enhancing its smart payment terminal technology[61][63] - The company is focused on enhancing management capabilities and leadership through targeted training programs[182] Market Trends and Strategies - The company aims to upgrade its existing products and services while exploring new application scenarios and business models in response to the digitalization trend[4] - The company plans to enhance its IoT product offerings and expand its customer base in 2021, focusing on industry-specific solutions[41] - The company aims to leverage digital transformation trends in tax services to provide more valuable financial services to small and micro enterprises[42] - The company is exploring new business models and application scenarios to adapt to the digitalization trends in various industries[89] - The company plans to expand its market share in high-end financial IC cards and personalized credit cards, targeting higher-margin products[90] - The company is focusing on providing IoT terminal solutions with eSIM and secure modules, tapping into the growing IoT market[87] - The education sector is anticipated to benefit from new infrastructure initiatives, enhancing the demand for smart education solutions[88] Operational Challenges - The company acknowledges potential risks in its future operations and has outlined corresponding countermeasures in its report[4] - The company has faced challenges in the ETC card market due to saturation and industry policy impacts, affecting overall performance in the latter half of the year[18] - The company faces risks related to declining product prices due to intense competition in the smart payment terminal market[93] - There is a risk of rising product costs due to tight supply of key components, particularly chips, which could lead to a decline in gross margins[93] - Talent retention is a challenge due to competition from major tech companies in Wuhan, prompting the company to improve its talent development and incentive mechanisms[94] Corporate Governance and Compliance - The company has committed to maintaining independence in operations, assets, finance, and business from its controlling shareholders and related parties since 2010, with normal compliance reported[105] - The company has ensured that related transactions will be conducted fairly and transparently, adhering to legal and regulatory requirements, with normal compliance reported[106] - The company has made commitments to avoid any business competition with its controlling shareholders and related parties, with normal compliance reported since 2010[106] - The company has reported no non-operating fund occupation by its controlling shareholders or related parties during the reporting period[110] - The company has a robust internal control evaluation process, ensuring compliance and effective oversight of financial reporting[200] Shareholder and Management Changes - The company has experienced changes in its board, with several resignations including independent directors Sun Zhen and Sun Qie due to work reasons[167] - The term for the current board and supervisory committee is set to expire on July 11, 2020, with a delay in the renewal process due to ongoing share transfer activities[165] - The company has appointed a new financial officer, Sun Jing, who will continue to serve as general manager[167] - The company is focused on maintaining stability during the transition period of its share transfer and management changes[165] - The independent directors who resigned were involved in the company’s governance, indicating a potential shift in oversight and strategic direction[167] Social Responsibility - The company donated 1.6 million yuan worth of educational software and hardware products and 500,000 yuan in public welfare funds to support education in impoverished areas[131]

Financial Performance - Net profit attributable to shareholders was -¥10,892,374.37, a decrease of 112.49% year-on-year[7]. - Operating revenue for the reporting period was ¥335,592,317.87, down 37.30% compared to the same period last year[7]. - Basic earnings per share were -¥0.0253, a decrease of 112.48% compared to the same period last year[7]. - Operating profit, total profit, net profit, and net profit attributable to shareholders decreased by 121.91%, 122.23%, 132.70%, and 124.08% respectively compared to the same period last year, mainly due to the pandemic's impact on production and sales[21]. - The company expects a significant decline in net profit attributable to shareholders for the full year compared to the previous year due to the pandemic's impact on sales and a decrease in investment income from the sale of stocks[24]. - The net loss for Q3 2020 was CNY 10,020,560.32, compared to a net profit of CNY 78,962,902.44 in Q3 2019, representing a significant decline[43]. - Net profit for the current period is CNY -53,421,344.13, compared to a net profit of CNY 163,357,249.63 in the previous period, representing a significant decline[48]. - Total comprehensive income for the current period is CNY -53,421,344.13, compared to CNY 163,357,249.63 in the previous period[49]. Cash Flow - The net cash flow from operating activities was ¥168,396,623.69, an increase of 203.57% year-on-year[7]. - Net cash flow from operating activities decreased by 98.10% compared to the same period last year, primarily due to reduced sales collections[21]. - The net cash flow from operating activities was -CNY 43,021,231.92, worsening from -CNY 21,716,676.57 in the same period last year[53]. - The cash inflow from operating activities was CNY 1,144,044,742.87, a decrease of 14.66% compared to CNY 1,340,845,467.50 in the previous period[53]. - The cash inflow from investment activities totaled CNY 1,934,141,922.37, significantly increasing from CNY 398,357,784.47 in the previous period[55]. - The net cash flow from investment activities was -CNY 366,101,546.92, compared to a positive CNY 54,582,840.43 in the same period last year[55]. - The cash inflow from financing activities was CNY 142,330,000.00, slightly down from CNY 151,245,000.00 in the previous period[55]. - The net cash flow from financing activities improved to CNY 95,959,245.12 from -CNY 119,923,770.35 in the same period last year[55]. - The company experienced a net decrease in cash and cash equivalents of CNY 313,617,593.13, compared to a decrease of CNY 86,620,228.59 in the previous period[55]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥2,830,286,654.43, an increase of 5.56% compared to the end of the previous year[7]. - The total liabilities rose to CNY 1,494,619,375.78, compared to CNY 1,250,010,404.74, reflecting an increase of approximately 19.5%[35][36]. - Total liabilities increased to CNY 1,440,542,012.12 in Q3 2020 from CNY 1,166,584,118.70 in Q3 2019, marking a rise of 23.4%[42]. - The company reported a significant increase in long-term equity investments, totaling CNY 71,467,400.64[62]. - The total amount of deferred tax assets is CNY 67,386,154.55, which may provide future tax benefits[62]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 22,108[11]. - The largest shareholder, Wuhan Huagong Venture Investment Co., Ltd., holds 23.89% of the shares[11]. - The company did not conduct any repurchase transactions among the top 10 shareholders during the reporting period[12]. Operational Metrics - Cash and cash equivalents decreased by 48.54% compared to the end of the previous year, primarily due to reduced sales collections impacted by the pandemic[17]. - Trade financial assets increased by 159.28% compared to the end of the previous year, mainly due to an increase in structured deposits[17]. - Accounts receivable notes decreased by 97.53% compared to the end of the previous year, primarily due to the maturity of receivable notes[17]. - The company reported a significant decrease in employee compensation payable, which fell to CNY 29,291,856.01 from CNY 82,975,925.68, a drop of about 64.7%[35][36]. - The company has indicated a focus on new product development and market expansion strategies moving forward[48]. Accounting and Reporting - The company is actively adjusting its financial reporting in accordance with the revised accounting standards effective from January 1, 2020[65]. - The report indicates a change in accounting standards effective from January 1, 2020, impacting revenue recognition and contract liabilities[70].