杭州中威电子股份有限公司 2022 年第一季度报告全文 证券代码：300270 证券简称：中威电子 公告编号：2022-024 杭州中威电子股份有限公司 2022 年第一季度报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、误导 性陈述或重大遗漏。 重要内容提示: 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、准确、完 整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声明：保 证季度报告中财务信息的真实、准确、完整。 3.第一季度报告是否经过审计 □ 是 √ 否 一、主要财务数据 (一)主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业收入（元） | 20,877,738.57 | 30,907,201.08 | -32.45% | | 归属于上市公司股东的净利润（元） | -207,376.32 | -5,602,980 ...

Financial Performance - In 2021, Joyware Electronics achieved operating revenue of RMB 243.03 million, a year-on-year increase of 16.53%[6] - The total profit for the year was a loss of RMB 57.89 million, which represents a year-on-year reduction in losses by 55.07%[6] - The net profit attributable to shareholders was a loss of RMB 51.24 million, with a year-on-year decrease in losses of 55.75%[6] - The company's operating revenue for 2021 was ¥243,029,409.70, representing a 16.53% increase compared to ¥208,548,638.81 in 2020[20] - The net profit attributable to shareholders was -¥51,237,165.07, an improvement of 55.75% from -¥115,793,562.89 in 2020[20] - The net cash flow from operating activities was ¥677,490.04, a significant decrease of 98.26% compared to ¥38,852,309.61 in 2020[20] - The total assets at the end of 2021 were ¥990,335,990.92, down 8.36% from ¥1,080,700,849.96 at the end of 2020[20] - The company's basic earnings per share improved to -¥0.17 from -¥0.39 in 2020, reflecting a 56.41% increase[20] - The company's total equity attributable to shareholders decreased by 5.82% to ¥746,478,223.04 at the end of 2021 from ¥792,645,879.65 at the end of 2020[20] - The company's total assets decreased by 8.36% to 990.34 million yuan in 2021[114] - The company's cash flow from operating activities was 677,500 yuan, a significant decrease of 98.26% compared to the previous year[114] Market and Industry Trends - The security industry in China experienced a growth rate of 6% in 2021, with a total output value of ¥902 billion[31] - The smart security market is projected to reach ¥204.5 billion by 2026, with a compound annual growth rate of 26% from 2013 to 2020[33] - The smart city market size in China is projected to reach approximately 25 trillion yuan by 2022, up from 14.9 trillion yuan in 2020, indicating a significant growth potential[37] - In 2021, nearly 4,300 smart city projects were awarded, with a total bid amount of around 108.5 billion yuan, highlighting the increasing demand for smart city solutions[37] - The "14th Five-Year Plan" emphasizes the need for digital transformation and innovation in the security industry, creating new market opportunities in areas such as smart transportation and public safety data[36] - The government aims to accelerate the digital transformation of transportation infrastructure, with a focus on building a high-quality transportation system by 2025[40] - The integration of AI and security systems is expected to enter a rapid development phase, driven by the smart city initiatives and the demand for enhanced public safety[37] - The "Belt and Road" initiative is anticipated to boost international cooperation and trade in the security sector, leveraging China's established security product manufacturing capabilities[36] - The smart highway system market in China is expected to grow significantly due to the increasing investment in intelligent transportation infrastructure[41] - The coal mining industry is set to achieve significant advancements in automation and intelligence, with a focus on reducing labor and enhancing efficiency by 2035[42] Research and Development - The company invested CNY 18.11 million in R&D in 2021, accounting for 7.45% of total revenue[104] - The company holds 74 authorized patents, including 30 invention patents, 25 utility model patents, and 19 design patents[104] - The company added 6 new patents during the reporting period, focusing on AI and IoT technologies[117] - The company aims to improve its AI algorithm capabilities by increasing R&D investment and potentially acquiring mature technology teams[176] - The company is actively involved in the research and development of digital video fiber optic communication technology, with multiple provincial-level key scientific research projects undertaken[196] Strategic Initiatives - The company plans to focus on AI video applications as a core part of its IoT solutions, leveraging the "Joyware Cloud" AIoT video cloud platform[6] - Joyware Electronics aims to expand into the robotics industry through acquisitions to establish a solid foundation for future growth[6] - The company plans to change its control structure by transferring shares to the New Xiang Industry Fund, with a total of 24,224,500 shares transferred[123] - The company established a wholly-owned subsidiary for robotics with an investment of 50 million yuan and acquired 73.92% of Huaxia Tianxin Robotics for 31.08 million yuan[118] - The company intends to pursue both organic growth and external mergers and acquisitions to enhance asset scale and profitability[167] Product Development and Innovation - The company has developed a diverse product system including high-definition IP transmission systems, intelligent event detection devices, and various smart city solutions[47] - The company has launched a smart parking cloud platform that utilizes big data analysis to address urban parking challenges, improving resource utilization[65] - The company’s intelligent analysis products leverage deep learning technology for video data processing, enhancing smart city applications[58] - The company has developed a comprehensive video surveillance platform that integrates real-time playback, storage, control, and alarm linkage, designed for small to medium applications such as schools and communities[68] - The company has launched multiple series of AI intelligent network cameras, achieving a product line of 4 million star light products[105] Corporate Governance - The company has no controlling shareholder, maintaining independence in operations, personnel, assets, and finances[189] - The board of directors consists of 7 members, including 3 independent directors, ensuring a majority of independent oversight[182] - The company has established a performance evaluation and incentive system linking management compensation to business performance[186] - The audit committee operates independently and reports quarterly to ensure the integrity of financial information[187] - The company actively engages with stakeholders to balance interests and enhance investor relations management[185] Operational Challenges - The company has experienced four consecutive years of losses, struggling to expand its business in a competitive market dominated by Hikvision and Dahua[176] - As of the end of the reporting period, accounts receivable amounted to 460.3611 million yuan, accounting for 46.49% of total assets, indicating slow turnover and high credit impairment losses compared to industry peers[174] - The company will implement measures to manage high accounts receivable, including establishing customer credit ratings and optimizing contract payment terms[175] Future Outlook - The company aims to enhance its market competitiveness by providing efficient management tools for property services through various smart applications[142] - The company provided a positive outlook for the next quarter, projecting a revenue increase of 20%[200] - New product launches are expected to contribute an additional $50 million in revenue over the next fiscal year[200] - The management emphasized the importance of sustainability initiatives, targeting a 30% reduction in carbon footprint by 2025[200]

Financial Performance - The company's operating revenue for Q3 2021 was ¥77,920,231.69, representing a 42.47% increase year-over-year[2] - The net profit attributable to shareholders was -¥16,693,924.14, a decrease of 440.25% compared to the same period last year[2] - The net cash flow from operating activities was -¥8,998,999.62, reflecting a 128.75% decrease year-to-date[2] - Total operating revenue for Q3 2021 was CNY 157.90 million, a decrease of 5.00% from CNY 167.56 million in the same period last year[27] - Net loss for Q3 2021 was CNY 23.94 million, compared to a net loss of CNY 17.46 million in Q3 2020, representing an increase in loss of 37.56%[28] - The total comprehensive loss for the period was CNY -23.94 million, compared to CNY -17.46 million in the same period last year[29] - The company's basic earnings per share were -¥0.0558, a decline of 441.75% compared to the previous year[2] - Basic and diluted earnings per share were both CNY -0.0809, compared to CNY -0.0562 in Q3 2020[29] Assets and Liabilities - Total assets at the end of the reporting period were ¥977,026,586.40, down 9.59% from the previous year[3] - As of September 30, 2021, the company's total assets amounted to 977,026,586.40 RMB, down from 1,080,700,849.96 RMB at the end of 2020, reflecting a decrease of approximately 9.57%[24] - The company's current assets totaled 624,794,266.65 RMB, a decrease of 16.67% from 749,865,171.04 RMB at the end of 2020[25] - The company's total liabilities decreased from 287,837,445.13 RMB to 200,127,963.74 RMB, a reduction of approximately 30.54%[26] - The company's equity attributable to shareholders decreased by 2.70% to ¥771,210,017.01[3] - The company's equity attributable to shareholders of the parent company decreased to CNY 771.21 million from CNY 792.65 million, a decline of 2.00%[27] Cash Flow - The net cash flow from operating activities was -8,998,999.62 CNY, a decrease compared to 31,305,717.01 CNY in the previous period[32] - The net cash flow from investing activities was -21,809,918.70 CNY, significantly lower than 98,381,827.99 CNY in the previous period[32] - The net cash flow from financing activities was -76,711,282.34 CNY, compared to -55,833,172.00 CNY in the previous period[32] - The total cash and cash equivalents at the end of the period were 102,588,922.88 CNY, down from 200,450,389.83 CNY at the end of the previous period[32] - The company reported a significant decrease in cash and cash equivalents, with a net decrease of 107,520,200.66 CNY during the period[32] Shareholder Information - The largest shareholder, Shi Xugang, holds 34.61% of the shares, with 96,761,151 shares pledged[12] - The company has a total of 10 major shareholders, with the top 10 holding a significant portion of the shares, including Beijing Haihou Tai Capital Management Co., Ltd. at 8.00%[12] - The total number of restricted shares held by Shi Xugang is 96,761,151, which will be unlocked on January 1, 2022[15] - The company has undergone a change in control, with Shi Xugang transferring 24,224,500 shares to Xinxiang Industrial Fund No. 1, along with the voting rights for 42,392,844 shares[16] - The company plans to issue up to 90,841,800 shares to Xinxiang Industrial Fund No. 1 as part of the control change agreement[16] - The total number of restricted shares at the end of the period is 97,708,251, with no new restricted shares added during the period[15] - The total number of shares held by the top 10 unrestricted shareholders includes 24,224,500 shares held by Beijing Haihou Tai Capital Management Co., Ltd.[12] - The company has a total of 4,514,110 shares held by shareholder Fan Jiechen, with 4,054,900 shares held by He Shuxin[13] Operational Contracts and Agreements - The company signed a product procurement contract with Xi'an Xiangxun Technology Co., Ltd. worth 165,394,500 RMB, representing 79.31% of the company's audited revenue for 2020[21] - The company entered into a construction contract for the Xinjin Expressway project with a total contract value of 191,580,000 RMB, which includes tax[22] - The company has made agreements regarding the recovery of important receivables and operational performance commitments for 2021-2023[17] - The company received a notice from the Shenzhen Stock Exchange regarding the acceptance of its application to issue shares to specific investors[17] Impairment and Losses - The company reported a 86.19% increase in credit impairment losses, amounting to significant financial strain[9] - The company’s total profit loss increased by 34.04% year-over-year, attributed to credit and asset impairment losses[9] - The company reported a credit impairment loss of CNY -29.86 million, an increase from CNY -16.04 million year-on-year[28] Other Information - The company has not yet sold the six idle properties it approved for disposal, which were authorized for sale at prices not lower than the third-party valuation[20] - The company remains in a state without a controlling shareholder or actual controller, pending approval for the private placement[19] - The company did not undergo an audit for the third quarter report[33] - The company has not applied the new leasing standards for the financial statements[33]

Financial Performance - The company's operating revenue for the first half of 2021 was approximately ¥79.98 million, a decrease of 29.14% compared to ¥112.87 million in the same period last year[20]. - The net profit attributable to shareholders was a loss of approximately ¥7.52 million, an improvement of 45.24% from a loss of ¥13.73 million in the previous year[20]. - The net cash flow from operating activities was approximately ¥7.68 million, down 78.60% from ¥35.91 million in the same period last year[20]. - The total assets at the end of the reporting period were approximately ¥952.77 million, a decrease of 11.84% from ¥1.08 billion at the end of the previous year[20]. - The net assets attributable to shareholders were approximately ¥786.71 million, a slight decrease of 0.75% from ¥792.65 million at the end of the previous year[20]. - The basic earnings per share were -¥0.0251, an improvement of 45.32% from -¥0.0459 in the same period last year[20]. - The company achieved total revenue of 79.9766 million yuan, a year-on-year decrease of 29.14%[43]. - The net profit attributable to ordinary shareholders was -7.5203 million yuan, a year-on-year loss reduction of 45.24%[43]. - The company reduced costs by 44.70%, significantly outpacing the revenue decline[43]. - The company reported a net loss of CNY 22,611,879.64 for the period, compared to a loss of CNY 15,091,595.52 in the previous period[147]. - The net loss for the first half of 2021 was CNY 7,246,563.28, an improvement from a net loss of CNY 13,301,353.13 in the first half of 2020, representing a 45.5% reduction in losses[154]. Research and Development - Research and development expenses amounted to ¥8.40 million, representing 10.51% of total revenue, with a decrease of 27.50% from ¥11.59 million in the previous year[55]. - The company employed a total of 139 staff, with 57 in R&D, accounting for 41.01% of the workforce[55]. - The company holds 68 authorized patents, including 26 invention patents, 22 utility model patents, and 20 design patents, covering various IoT-related fields[47]. - The company is committed to enhancing its research and development capabilities to improve product competitiveness and gross margin levels[86]. - The company is focusing on expanding its market presence and enhancing its product offerings through ongoing research and development efforts[173]. Product Development and Innovation - The company has developed a comprehensive range of smart security products, including 4 million star products and some 4K star products, to meet the demand for higher resolution in surveillance[27]. - The company has launched economical thermal imaging products aimed at perimeter protection, indoor fire prevention, and temperature measurement, responding rapidly to market needs during the pandemic[28]. - The company has introduced a series of intelligent servers based on deep learning technology, enhancing product performance to achieve industry-leading levels[29]. - The company continues to innovate in product development, focusing on AI-enabled smart cameras and video management platforms to enhance market competitiveness[29]. - The company has integrated advanced technologies such as AI and big data into its products, enhancing their adaptability to industry development needs[31]. Market and Industry Outlook - The video surveillance industry is expected to maintain high growth potential due to increasing demand for smart city infrastructure and intelligent upgrades[37]. - The application of AI technology is anticipated to enhance video surveillance capabilities, creating new market opportunities[42]. - The competitive landscape is intensifying as leading companies increase R&D investments and expand their sales scope[41]. - The shift from single products to integrated solutions is driving demand for high-level comprehensive service capabilities in the industry[39]. Financial Management and Strategy - The company has implemented a dynamic procurement model based on "safety stock" to ensure timely supply of raw materials for its customized products[35]. - The company has built a comprehensive qualified supplier management system to ensure the quality and timeliness of raw material supply, maintaining stable procurement channels[35]. - The company emphasizes the importance of risk awareness regarding forward-looking statements made in the report[5]. - The company plans to ensure its technology remains industry-leading in high-definition management platforms and smart security solutions[44]. - The company aims to adjust its project portfolio to increase the proportion of security product sales, addressing the long payment cycles associated with system integration projects[84]. Shareholder and Equity Information - The company plans to issue up to 90,841,800 new shares, pending approval from the Shenzhen Stock Exchange and the China Securities Regulatory Commission, which introduces uncertainty to the process[79]. - The company transferred 24,224,500 shares from the original controlling shareholder to Xinxiang Industrial Fund No. 1, which will also receive voting rights for 42,392,844 shares[119]. - The total number of shares after the transfer is 302,806,028, with 32.26% being limited shares and 67.74% being unrestricted shares[125]. - The major shareholder, Shi Xugang, holds 34.61% of the shares, amounting to 104,790,368 shares, after the transfer[127]. - The company has a total of 21,083 common stock shareholders as of the report date[127]. Operational and Compliance Matters - The company has not faced any administrative penalties related to environmental issues during the reporting period[96]. - There were no significant lawsuits or arbitration matters reported during the period[106]. - The company did not engage in any major related party transactions during the reporting period[108]. - The company has not made any significant acquisitions or disposals of assets or equity during the reporting period[109]. - The half-year financial report has not been audited[103]. Cash Flow and Liquidity - The company reported a net cash increase of ¥-72.17 million, a decline of 194.02% compared to an increase of ¥76.77 million in the previous year[55]. - The company's cash and cash equivalents decreased to 153,431,422.13, representing 16.10% of total assets, down from 20.42% the previous year, primarily due to loan repayments[62]. - Total cash and cash equivalents at the end of the first half of 2021 were CNY 137,935,644.23, a decrease of 32.2% from CNY 203,363,218.60 at the end of the first half of 2020[163]. - Cash outflow from investing activities was CNY 3,487,887.59, compared to CNY 51,232,400.00 in the first half of 2020, indicating a significant reduction in investment spending[163]. - Cash flow from financing activities showed a net outflow of CNY 76,369,282.34, worsening from a net outflow of CNY 37,933,606.43 in the previous year[163].

Financial Performance - The company achieved operating revenue of CNY 208.55 million in 2020, a decrease of 11.50% year-on-year[5]. - The total profit for the year was CNY -128.86 million, down 38.67% compared to the previous year[5]. - The net profit attributable to shareholders was CNY -115.79 million, reflecting a decline of 32.37% year-on-year[5]. - The basic earnings per share were CNY -0.39, a decline of 34.48% compared to the previous year[6]. - The total revenue after deducting certain amounts was ¥199,453,282.03 for 2020, showing a significant decline from ¥229,957,083.98 in 2019[18]. - The security segment generated ¥104,384,616.57, accounting for 50.05% of total revenue, down 35.10% from the previous year[83]. - The transportation segment saw an increase in revenue to ¥94,640,555.47, representing 45.38% of total revenue, up 36.95% year-over-year[83]. - The gross profit margin for the security segment was 10.41%, a decrease of 5.95% compared to the previous year[86]. - The company reported a total revenue of 13,715,435.1 million CNY for the year 2020, with a net profit of 339,622.65 million CNY[120]. - The company reported a net profit attributable to shareholders of -115,793,562.89 CNY for the year 2020, with a parent company net profit of -113,161,477.48 CNY[141]. Cash Flow and Assets - The net cash flow from operating activities improved to CNY 38.85 million, an increase of 145.81% compared to the previous year[5]. - The total assets at the end of 2020 were CNY 1.08 billion, a decrease of 18.25% from the previous year[6]. - The net cash flow from operating activities improved by 145.81% to CNY 38.85 million in 2020[75]. - The total assets decreased by 18.25% to CNY 1,080.70 million as of the end of 2020[75]. - The net increase in cash and cash equivalents was ¥83.51 million, representing a 348.18% increase year-on-year, attributed to higher cash recovery from operating activities[98]. - The company's cash and cash equivalents at the end of 2020 amounted to ¥220.70 million, up 52.05% from the beginning of the year[101]. - The inventory decreased by 57.72% to ¥56.09 million, mainly due to improved inventory turnover and provisions for inventory depreciation[101]. Research and Development - The company invested CNY 25.52 million in R&D, accounting for 12.24% of total revenue in 2020[77]. - Research and development expenses for 2020 amounted to ¥25,516,973.08, a decrease of 30.67% compared to the previous year due to a reduction in R&D personnel[94]. - The company is developing a video cloud platform that integrates AI algorithms and industry applications, with significant market potential[95]. - The company is focusing on recruiting industry-related technical and management talents to enhance R&D capabilities and improve product competitiveness[136]. Business Strategy and Market Position - The company aims to transition from a traditional security product provider to a comprehensive security operation and service provider integrating AI and IoT technologies[25]. - The company has maintained its status as a leading provider in the digital video transmission technology sector, focusing on smart city and public safety solutions[25]. - The company is positioned to benefit from the new smart city initiatives launched by the Henan provincial government, which aims to integrate digital economy with urbanization[127]. - The company plans to enhance its existing business by utilizing the advantages of its public platform and the resources of its new actual controller[126]. - The company aims to leverage AI video applications as a core industry IoT solution provider, enhancing its traditional business model to a more efficient "cloud service + operation" model[124]. Regulatory and Compliance Issues - The company received regulatory warnings for inaccurate disclosures and improper use of raised funds, which have since been rectified[82]. - The company faced regulatory scrutiny for improper use of raised funds by controlling shareholders[156]. - The company has fulfilled its information disclosure obligations regarding the changes in project feasibility and funding allocation[115]. - The company faced regulatory measures from the Zhejiang Securities Regulatory Bureau due to violations by the actual controller regarding fund occupation and improper use of raised funds[155]. Shareholder and Equity Changes - The company’s major shareholder, Shi Xugang, transferred 24,224,500 shares to Xinxiang Industrial Fund No. 1, changing the largest shareholder and actual controller of the company[126]. - The company plans to issue up to 90,841,800 new shares to the Xinxiang Industrial Fund No. 1, with expected total fundraising of no more than ¥530,516,112, all of which will be used to supplement working capital[128]. - The company’s shareholding structure changed, with restricted shares decreasing by 9,457,693 shares, resulting in a new total of 104,712,613 restricted shares[184]. - The company’s actual controller is expected to change to the People's Government of Xinxiang City, Henan Province, pending regulatory approvals[179]. Challenges and Industry Outlook - In 2020, the security industry faced significant challenges due to the COVID-19 pandemic, impacting survival and competition dynamics[57]. - The overall industry demand has been insufficient due to external economic factors, impacting the company's revenue growth and future outlook[112]. - The rapid development of the B-end market and the reduction in AIoT technology costs are providing new opportunities for the security industry, marking the beginning of an AI security era[60]. - The construction of smart cities is a core development focus, with China leading globally with 500 pilot cities, creating new demand for security solutions[61]. Corporate Governance and Social Responsibility - The company actively fulfills its corporate social responsibilities and maintains a stable profit distribution policy to return value to shareholders[175]. - The company has not conducted targeted poverty alleviation work in the reporting year and has no subsequent plans[177]. - The independent directors agreed with the profit distribution proposal, emphasizing the need for sustainable development[141].

杭州中威电子股份有限公司 2021 年第一季度报告全文 杭州中威电子股份有限公司 Joyware Electronics Co.,Ltd 2021 年第一季度报告 股票代码：300270 股票简称：中威电子 披露日期：2021 年 4 月 27 日 1 杭州中威电子股份有限公司 2021 年第一季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整，不存在虚 假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人石旭刚、主管会计工作负责人石旭刚及会计机构负责人(会计主管人员)裘学初声明：保证 季度报告中财务报表的真实、准确、完整。 本报告中如有涉及未来的计划、业绩预测等前瞻性陈述的，均不构成公司对投资者的业绩承诺，投资 者应对此保持足够的风险意识，并且应当理解经营计划与业绩承诺之间的差异。 2 杭州中威电子股份有限公司 2021 年第一季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | ...

Financial Performance - Operating revenue for the current period was CNY 54,691,145, representing a decline of 42.25% year-on-year [8]. - Net profit attributable to shareholders was a loss of CNY 3,090,058, marking an 8.26% decrease compared to the previous year [8]. - Basic earnings per share were -0.0103 CNY, a decrease of 9.57% year-on-year [8]. - Total profit decreased by 1050.07% compared to the same period last year, mainly due to an increase in bad debt provision [21]. - The net profit for Q3 2020 was a loss of ¥4,155,520.97, compared to a loss of ¥3,035,847.63 in Q3 2019, indicating a worsening performance [45]. - The total profit for Q3 2020 was a loss of ¥5,769,906.93, compared to a loss of ¥3,130,585.47 in the previous year [44]. - The company experienced a net loss of ¥17,456,874.10 for the year-to-date period, compared to a loss of ¥913,046.14 in the same period last year, indicating a significant deterioration in financial performance [51]. Cash Flow - The net cash flow from operating activities was a negative CNY 4,604,453, an improvement of 82.92% compared to the same period last year [8]. - Net cash flow from operating activities increased by 129.77% compared to the same period last year, primarily due to increased operating receipts and reduced operating expenditures [22]. - The cash flow from operating activities for Q3 2020 was ¥31,305,717.01, a recovery from a negative cash flow of -¥105,163,996.49 in the same quarter last year [59]. - Total cash inflow from operating activities was ¥250,791,599.46, compared to ¥211,390,352.90 in the same period last year, showing an increase of 18.6% [59]. - The net cash flow from operating activities for the current period is CNY 33,382,910.21, compared to a net outflow of CNY 54,748,757.27 in the previous period [61]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,162,427,784.15, a decrease of 12.07% compared to the end of the previous year [8]. - The company's total assets as of September 30, 2020, were CNY 1,170,896,927.20, down from CNY 1,327,446,442.60 at the end of 2019 [39]. - Total liabilities decreased to CNY 265,064,698.74 from CNY 394,845,166.56 year-over-year, reflecting a reduction of approximately 33% [40]. - The total equity of the company as of September 30, 2020, was CNY 896,171,268.41, down from CNY 924,978,859.56 at the end of 2019 [37]. - The total amount of accounts receivable was CNY 425,789,292.69, indicating a stable collection of receivables [69]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 18,377 [12]. - The company has not issued new shares or made any changes to its capital structure that would affect owner equity [9]. - The company did not conduct any repurchase transactions among the top 10 shareholders during the reporting period [14]. Expenses - Research and development expenses decreased by 40.63% compared to the same period last year, primarily due to a reduction in employee compensation [21]. - Financial expenses decreased by 71.87% compared to the same period last year, mainly due to a reduction in interest expenses [21]. - Other income decreased by 47.77% compared to the same period last year, primarily due to a decrease in VAT paid and corresponding tax refunds [21]. - Research and development expenses for Q3 2020 were ¥4,478,478.06, significantly lower than ¥10,773,264.98 in the same quarter last year, indicating a cutback in R&D investment [47]. - The company's sales expenses decreased to ¥12,120,442.48, down 56.5% from ¥27,886,218.15 in the previous year [54]. Compliance and Adjustments - The company has made corrections to previous accounting errors related to the misuse of raised funds and non-operating fund occupation by controlling shareholders [8]. - The company has not reported any non-compliance with external guarantees or misuse of funds by controlling shareholders during the reporting period [28]. - The company has implemented new revenue and leasing standards starting from 2020, requiring adjustments to the financial statements [64]. - The company executed a new revenue recognition standard starting January 1, 2020, which reclassified previously reported "prepayments" to "contract liabilities" [72].

Financial Performance - The company's operating revenue for the first half of 2020 was ¥112,867,858.22, representing a 5.07% increase compared to the same period last year [26]. - The net profit attributable to shareholders of the listed company was -¥13,732,393.60, a decrease of 745.65% year-on-year [26]. - The net cash flow from operating activities improved significantly to ¥35,910,170.80, compared to -¥79,689,401.90 in the previous year, marking a 145.92% increase [26]. - Total assets at the end of the reporting period were ¥1,223,554,064.80, down 7.44% from the end of the previous year [26]. - The net assets attributable to shareholders of the listed company decreased by 2.88% to ¥898,773,745.38 [26]. - The basic earnings per share for the reporting period was -¥0.0459, a decline of 755.71% compared to the previous year [26]. - The total profit amounted to CNY -14.01 million, a year-on-year decrease of 1092.55% [45]. - The total operating revenue for the first half of 2020 was CNY 112,867,858.22, an increase of 5.5% compared to CNY 107,419,774.71 in the first half of 2019 [142]. - The total liabilities decreased to CNY 320,079,184.46 from CNY 394,845,166.56, reflecting a reduction of approximately 18.9% [141]. Investment and Projects - The company has invested 15.79 million yuan in the "Video Cloud Platform Construction Project," with an investment progress of 8.46%, and 10.42 million yuan in the "Video Big Data Intelligent Application Technology R&D Project," with an investment progress of 19.65% [11]. - The company plans to adjust the investment scale of the "Video Cloud Platform Construction Project" from 357.52 million yuan to 186.78 million yuan, and the "Video Big Data Intelligent Application Technology R&D Project" from 74.76 million yuan to 53.01 million yuan [10]. - The cumulative investment in the "Video Cloud Platform Construction Project" is CNY 15.79 million, representing a progress of 8.46% [76]. - The cumulative investment in the "Video Big Data Intelligent Application Technology R&D Project" is CNY 10.41 million, representing a progress of 19.65% [77]. - The company plans to ensure that its comprehensive management platform technology remains industry-leading in the coming years [36]. Accounts Receivable and Financial Management - As of the end of the reporting period, accounts receivable amounted to 432.17 million yuan, accounting for 54.67% of current assets and 35.32% of total assets, indicating a significant increase in receivables risk due to project delays and funding issues [6]. - The company has implemented measures to include accounts receivable management in key performance indicators (KPIs) to reduce the risk of increasing receivables [7]. - The company acknowledges the impact of local fiscal revenue decline on industry demand growth and project timelines, which may lead to delayed customer payments [6]. - The company faces risks related to increasing accounts receivable due to project delays and funding issues, which may affect cash flow and debt levels [72]. - The company’s financial management strategy includes addressing the challenges of receivables recovery and management [72]. Market Competition and Strategy - The company faces intensified market competition as traditional security companies and internet firms expand into the market, which may affect project profitability and financial stability [8]. - The company aims to strengthen internal quality control systems to enhance brand effect and service capabilities in response to market competition [9]. - The company recognizes the risk of new business development and will conduct comprehensive market research to ensure feasibility and market acceptance [12]. - The company emphasizes the importance of project management and will prioritize projects with fiscal support to mitigate implementation risks [14]. - The company plans to strengthen marketing management and market expansion to improve market share [45]. Shareholder and Equity Information - The company will not distribute cash dividends, issue bonus shares, or increase capital using reserves [15]. - The company has not reported any significant changes in shareholder structure during the reporting period [110]. - The total number of common shareholders at the end of the reporting period was 21,195 [117]. - The largest shareholder, Shi Xugang, holds 42.62% of shares, totaling 129,045,468 shares, with a decrease of 9,324,650 shares during the reporting period [117]. - The company plans to repurchase shares with a total fund of no less than RMB 30 million and no more than RMB 50 million, with a maximum repurchase price of RMB 10.00 per share [113]. Regulatory and Compliance Issues - The company received a warning letter from the Zhejiang Securities Regulatory Bureau for inaccurate performance disclosures and improper use of raised funds [90]. - The actual controller, Shi Xugang, and several senior management members were involved in the violation of fund usage regulations, leading to administrative regulatory measures [90]. - The company did not engage in any significant related party transactions during the reporting period [92]. Research and Development - R&D investment for the first half of 2020 was 11.59 million yuan, accounting for 10.27% of total operating revenue [37]. - The company has applied for 19 invention patents that are currently under review [37]. - The company is focusing on integrating AI video applications with industry IoT applications to enhance competitiveness [44]. - The company has initiated research and development for new technologies aimed at improving operational efficiency and product quality, which is expected to yield results in the next fiscal year [160]. Financial Reporting and Accounting Policies - The financial statements reflect the company's financial position, operating results, and cash flows in accordance with accounting standards [176]. - The company has no significant doubts regarding its ability to continue as a going concern for the next 12 months [174]. - The company adheres to specific accounting policies for financial instruments, fixed asset depreciation, and revenue recognition [175]. - The company measures financial liabilities at amortized cost using the effective interest method, with gains or losses recognized in profit or loss upon derecognition or amortization [187].

Financial Performance - The total operating revenue for the reporting period was CNY 107,419,774.71, a decrease of 30.36% compared to the same period last year [25]. - The net profit attributable to shareholders of the listed company was CNY 2,126,924.74, down 76.52% year-on-year [25]. - The net profit after deducting non-recurring gains and losses was CNY -4,412,764.50, a decrease of 149.02% compared to the previous year [25]. - The net cash flow from operating activities was CNY -78,209,401.90, an improvement of 41.69% year-on-year [25]. - The basic earnings per share were CNY 0.0070, down 78.92% from the previous year [25]. - The total assets at the end of the reporting period were CNY 1,383,574,245.69, a decrease of 7.07% compared to the end of the previous year [25]. - The company reported a total profit of CNY 141,110, a decrease of 85.61% year-on-year, attributed to delayed revenue recognition from large-scale projects [33]. - The company achieved total operating revenue of RMB 107.42 million in the first half of 2019, a decrease of 30.36% year-on-year [50]. - The net profit attributable to ordinary shareholders was RMB 2.13 million, down 76.52% compared to the same period last year [48]. - The company reported a significant increase in investment income of RMB 2.82 million, primarily from cash management of idle funds [55]. Accounts Receivable and Cash Management - The accounts receivable balance reached RMB 432.88 million, accounting for 50.42% of current assets and 31.29% of total assets, indicating a significant risk in receivables management [6]. - The company has implemented measures to enhance the management of accounts receivable, including incorporating receivables into KPI assessments for relevant personnel [6]. - Cash and cash equivalents decreased by 84.58% at the end of the period compared to the beginning, primarily due to increased structured deposits and repayment of bank loans [34]. - Accounts receivable notes increased by 47.44% at the end of the period compared to the beginning, mainly due to an increase in bank acceptance bills received [34]. - Prepayments increased by 389.21% at the end of the period compared to the beginning, primarily due to increased prepayments for project engineering and materials [34]. - Other receivables increased by 98.11% at the end of the period compared to the beginning, mainly due to increased mid-term expenses [35]. - Other current assets increased by 201.07% at the end of the period compared to the beginning, primarily due to an increase in structured deposits [35]. Research and Development - The company has invested over 10% of its revenue in R&D for the past three years and plans to further increase R&D investment to enhance product innovation [9]. - The company is developing a non-contact multi-lead psychological and physiological analysis instrument based on deep learning technology, currently piloted in several universities [11]. - R&D investment for the first half of 2019 was 16.71 million yuan, accounting for 15.56% of total operating revenue [38]. - The company has filed for 23 patents that are currently under review, in addition to obtaining 4 new patents during the reporting period [38]. - The company has established a high-quality R&D team, with R&D personnel accounting for 35.76% of the total workforce [41]. Business Development and Strategy - The company is focusing on the development of smart city projects, which have longer sales cycles, impacting revenue recognition timing [32]. - The company aims to transition from a security product provider to a service provider integrating artificial intelligence and IoT technologies [32]. - The company faces risks in new business development due to market acceptance timelines and integration with existing systems [12]. - The company plans to enhance marketing management and market expansion to improve market share and management levels [48]. Fundraising and Investment - The company raised approximately RMB 400 million through a private placement of 30,303,028 shares at RMB 13.20 per share, which will expand its asset scale significantly [10]. - The total amount of raised funds is RMB 389,735,818.95 after deducting underwriting and related fees [67]. - As of June 30, 2019, the balance of raised funds is RMB 206,215,602.06, including net income from financial products and bank interest [69]. - The company has invested RMB 18,880.63 million of the raised funds cumulatively by the end of the reporting period [68]. - The actual use of raised funds in the first half of 2019 is RMB 25,952.29 million [68]. Corporate Governance and Compliance - The company did not conduct any asset or equity acquisitions or sales during the reporting period [104]. - There were no significant litigation or arbitration matters during the reporting period [101]. - The semi-annual financial report was not audited [98]. - The company has not implemented any stock incentive plans or employee shareholding plans during the reporting period [102]. - The company received a warning letter from the regulatory authority for failing to fulfill information disclosure obligations [110]. Shareholder Information - The company’s total share capital is 302,806,028 shares, with 39.08% of shares being limited sale condition shares after a non-public offering [122]. - The company’s major shareholders include individuals with significant holdings, such as Shi Xugang with 113,179,031 shares [128]. - The company’s stock buyback is intended for employee stock ownership plans or equity incentives [125]. - The total number of shareholders at the end of the reporting period was 15,496 [131]. - The controlling shareholder, Shi Xugang, holds 47.85% of the shares, with a total of 144,891,013 shares [132].

Financial Performance - Operating revenue for the reporting period was CNY 94,705,070.20, representing a year-on-year increase of 54.49%[8] - Net profit attributable to shareholders was a loss of CNY 2,854,371.00, an increase in loss of 84.39% compared to the same period last year[8] - Basic earnings per share were CNY -0.0094, a decrease of 84.44% year-on-year[8] - The weighted average return on net assets was -0.28%, a decrease of 1.41% compared to the previous year[8] - Total profit increased by 85.90% compared to the same period last year, driven by increased interest income and reduced bad debt provisions[21] - The net profit for the current period was a loss of ¥3,035,847.63, an improvement from a loss of ¥18,265,927.86 in the previous period, showing a reduction in losses by about 83.4%[48] - The total profit for the current period was a loss of ¥3,130,585.47, which is an improvement from a loss of ¥22,002,215.56 in the previous period, marking a reduction in losses by approximately 85.8%[48] - Operating profit for the current period was reported at -2,672,932.99, compared to -22,173,436.91 in the previous period, indicating a significant improvement in operational efficiency[48] Cash Flow - The net cash flow from operating activities for the year-to-date was CNY -105,163,996.49, a decrease of 37.25%[8] - Net cash flow from operating activities increased by 37.25% compared to the same period last year, due to higher operating receipts and reduced tax payments[21] - The net cash flow from operating activities was -54,748,757.27 yuan, compared to -165,706,295.07 yuan in the previous period, showing an improvement[68] - Total cash inflow from investment activities was 236,082,003.78 yuan, while cash outflow was 129,769,021.54 yuan, resulting in a net cash flow of 106,312,982.24 yuan[68] - Cash inflow from financing activities totaled 70,000,000.00 yuan, with cash outflow of 91,607,421.24 yuan, leading to a net cash flow of -21,607,421.24 yuan[69] - The company experienced a net increase in cash and cash equivalents of 29,956,803.73 yuan, contrasting with a decrease of -52,989,768.89 yuan in the previous period[69] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,445,252,936.67, a decrease of 2.93% compared to the end of the previous year[8] - Cash and cash equivalents decreased by 36.18% compared to the beginning of the period, primarily due to repayment of bank loans[19] - Accounts receivable increased by 31.37% compared to the beginning of the period, mainly due to reclassification of long-term receivables[19] - Inventory increased by 39.47% compared to the beginning of the period, mainly due to an increase in raw materials and goods dispatched[19] - Total liabilities decreased from CNY 458,679,699.97 to CNY 415,471,025.67, a decline of about 9.4%[39] - Current liabilities decreased from CNY 411,154,259.32 to CNY 385,217,692.32, a reduction of about 6.3%[39] - Long-term borrowings decreased from CNY 47,306,666.68 to CNY 30,253,333.35, a decrease of approximately 36.1%[39] - Total equity decreased slightly from CNY 1,030,155,132.14 to CNY 1,029,781,911.00, a decrease of about 0.04%[40] Shareholder Information - The total number of shareholders at the end of the reporting period was 24,876[13] - The largest shareholder, Shi Xugang, holds 47.28% of the shares, with 143,163,518 shares pledged[13] - As of September 30, 2019, the company has repurchased a total of 216,200 shares, accounting for 0.07% of the total share capital, with a total transaction amount of RMB 1,460,175[25] - The company has not implemented a cash dividend plan for the reporting period[28] Government and Other Income - The company reported non-recurring gains and losses totaling CNY 9,877,449.69 for the reporting period[11] - The company has received government subsidies classified as non-recurring gains and losses amounting to RMB 8.9956 million during the reporting period, compared to RMB 5.2193 million in the previous year[29] - The company anticipates software tax rebate income of RMB 2.45 million for the reporting period, down from RMB 21.5606 million in the same period last year[29] Future Plans and Developments - The company signed a cooperation framework agreement with NuraLogix Corporation for the application of TOI blood spectrum optical imaging technology and DeepAffex emotional AI technology in the security field[22] - The company has established connections with several professional psychological health research universities and plans to launch related products and services in the student mental health field this year[23] - The company plans to use self-owned funds or borrowings to repurchase shares, with a total repurchase amount not less than RMB 30 million and not exceeding RMB 50 million[24] - The company is actively discussing and revising the financial relief plan with Hangjin Investment Group, but the progress has been slow and not yet finalized[23] Research and Development - Research and development expenses rose to ¥10,950,994.98, compared to ¥8,237,134.22, reflecting a growth of approximately 33.1%[47] - Research and development expenses were ¥27,664,790.85, slightly decreased from ¥28,275,989.17 in the previous period[54] - The company plans to continue focusing on R&D and improving operational efficiency to enhance profitability in the future[56]