Financial Performance - The company's operating revenue for the first half of 2022 was ¥849,991,138.48, a decrease of 60.53% compared to ¥2,153,535,064.60 in the same period last year[24]. - The net profit attributable to shareholders of the listed company was a loss of ¥141,893,187.74, representing a decline of 166.00% from a profit of ¥214,982,290.33 in the previous year[24]. - The basic earnings per share were -¥0.17, down 165.38% from ¥0.26 in the previous year[24]. - The net profit after deducting non-recurring gains and losses was a loss of ¥145,829,857.94, a decline of 171.55% from a profit of ¥203,818,194.59 in the previous year[24]. - The company achieved operating revenue of 850 million yuan and a net loss attributable to shareholders of 142 million yuan during the reporting period[40]. - The company reported a total comprehensive income of -154,993,846.67 for the first half of 2022, compared to 206,138,451.00 in the previous year[174]. - The net profit for the first half of 2022 was a loss of CNY 154,993,846.67, compared to a profit of CNY 206,138,451.00 in the first half of 2021[174]. Cash Flow and Liquidity - The net cash flow from operating activities was a negative ¥362,732,321.67, an improvement of 69.19% compared to a negative ¥1,177,214,080.77 in the same period last year[24]. - The company's cash and cash equivalents decreased by 61.06% to -¥495,276,230.04 from -¥1,271,934,560.85[52]. - Cash and cash equivalents at the end of the reporting period amounted to ¥1,979,585,711.28, representing 23.80% of total assets, a decrease of 4.25% compared to the previous year[61]. - The company's cash flow from financing activities showed a significant outflow, indicating potential challenges in raising capital[185]. - The net increase in cash and cash equivalents was -61,042,159.92, compared to -35,177,528.12 in the previous period, reflecting a worsening cash position[185]. Assets and Liabilities - Total assets at the end of the reporting period were ¥8,318,551,964.90, a decrease of 7.04% from ¥8,948,503,833.80 at the end of the previous year[24]. - The net assets attributable to shareholders of the listed company were ¥6,542,916,665.56, down 2.12% from ¥6,684,450,743.04 at the end of the previous year[24]. - The total liabilities decreased to CNY 1,608,498,669.58 from CNY 2,083,188,826.26, a decline of approximately 22.73%[165]. - The company's equity attributable to shareholders decreased to CNY 6,542,916,665.56 from CNY 6,684,450,743.04, a decrease of about 2.11%[165]. - The company reported a significant reduction in accounts payable, which decreased to CNY 687,584,978.46 from CNY 935,096,071.42, a decline of approximately 26.47%[163]. Research and Development - The company has developed over 300 proprietary software products across more than 110 planned business application scenarios in the legal technology sector[31]. - The company added 15 new patents and 34 new software copyrights during the reporting period[37]. - Research and development investment decreased by 20.81% to ¥187,765,417.00 from ¥237,107,730.90[52]. - Research and development expenses increased to CNY 220,569,932.60, up from CNY 189,465,806.43, indicating a growth of 16.4%[173]. Market Position and Strategy - The company has maintained a leading market share in the domestic legal technology market and has a strong brand influence and customer satisfaction[36]. - The company focuses on innovation in software services, leveraging its advantages in products, services, technology, talent, and market to drive customer business application innovation[37]. - The company aims to expand its business into new electronic government segments, leveraging its accumulated experience in the legal technology field[32]. - The company emphasized product innovation and service enhancement, particularly in the legal technology sector, to maintain its industry-leading position[42]. Risk Management and Compliance - The company has analyzed potential risk factors and countermeasures in its future development in the report[5]. - The company is committed to improving its risk management mechanisms to mitigate risks associated with business expansion and ensure sustainable growth[91]. - The company has received a notice of investigation for alleged bribery, which poses a risk of prosecution and potential investor claims due to information disclosure violations[92]. - The company is dedicated to complying with legal regulations regarding information disclosure to protect its interests and those of its investors[92]. Corporate Governance and Management Changes - The company has made changes in its board and management personnel, including the appointment of a new general manager and chairman[96]. - The company has undergone changes in its board of directors and management, with new appointments made in April 2022[132]. - The company’s board of directors elected Guo Ying as the new chairman on May 11, 2022[134]. Social Responsibility and Environmental Initiatives - The company has actively engaged in environmental responsibility, achieving a reduction of over 200,000 kWh in electricity consumption through various energy-saving measures during the reporting period[104]. - The company’s charity foundation has supported 473 students across 27 regions in 14 provinces, contributing to educational equity and development[106]. - The company has initiated a clothing recycling program, successfully collecting 620.54 kg of old clothes, which is estimated to reduce carbon emissions by approximately 3,319.89 kg[104]. - The company has maintained a commitment to non-polluting operations, focusing on energy conservation and resource recycling in its daily business practices[103].

Financial Performance - The company's operating revenue for Q1 2022 was ¥285,914,067.60, a decrease of 37.01% compared to ¥453,934,193.58 in the same period last year[3]. - The net profit attributable to shareholders was a loss of ¥70,235,005.66, representing a decline of 261.43% from a profit of ¥43,507,960.19 in the previous year[3]. - The gross profit margin decreased by 15 percentage points year-on-year, primarily due to a higher proportion of low-margin system construction projects[7]. - Total operating revenue for the first quarter was CNY 285,914,067.60, a decrease of 37% compared to CNY 453,934,193.58 in the previous period[24]. - The company reported a net loss of CNY 79,797,194.46, compared to a net profit of CNY 39,746,116.87 in the same period last year[25]. - The net profit attributable to the parent company was -70,235,005.66 CNY, compared to a profit of 43,507,960.19 CNY in the previous period, indicating a significant decline[26]. - The total comprehensive income attributable to the parent company was -70,235,005.66 CNY, while the previous period showed a total of 43,507,960.19 CNY[26]. - The basic earnings per share were -0.09 CNY, down from 0.05 CNY in the previous period[26]. Cash Flow and Assets - The net cash flow from operating activities improved by 43.30%, amounting to -¥410,501,125.27 compared to -¥723,956,276.31 in the previous year[3]. - Cash inflow from operating activities was 532,067,434.93 CNY, compared to 514,814,351.79 CNY in the previous period, showing a slight increase[28]. - Cash outflow from operating activities totaled 942,568,560.20 CNY, down from 1,238,770,628.10 CNY in the previous period, indicating improved cash management[28]. - The net cash flow from operating activities was -410,501,125.27 CNY, an improvement from -723,956,276.31 CNY in the previous period[28]. - The net cash flow from investing activities was -43,598,482.75 CNY, compared to -128,364,021.82 CNY in the previous period, reflecting reduced investment outflows[29]. - The net cash flow from financing activities was -7,692,692.56 CNY, a significant decrease from 126,183,622.73 CNY in the previous period, indicating reduced financing activities[29]. - The ending balance of cash and cash equivalents was 1,942,673,808.21 CNY, down from 2,225,267,464.43 CNY in the previous period[29]. - Total assets at the end of the reporting period were ¥8,484,792,486.02, down 5.18% from ¥8,948,503,833.80 at the end of the previous year[3]. - Current assets totaled CNY 5,417,087,808.45, down from CNY 5,911,863,679.19 at the start of the year[21]. - The company’s total liabilities decreased to CNY 1,699,937,422.94 from CNY 2,083,188,826.26[22]. - Cash and cash equivalents decreased to CNY 2,030,185,002.09 from CNY 2,510,075,097.77[21]. - Accounts receivable decreased to CNY 1,714,725,715.07 from CNY 1,891,668,958.32, indicating a reduction in credit sales[21]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 62,026[10]. - The company’s major shareholders include Shao Xue with 27,383,664 shares and Ren Gang with 6,458,094 shares[12]. - The company has a total of 82,150,991 restricted shares held by Shao Xue, which are subject to a 25% annual unlock[14]. - The company received government subsidies totaling ¥2,551,519.20 during the reporting period, which is a key component of its non-operating income[5]. - The company repurchased a total of 4,414,800 shares, accounting for 0.53% of the total share capital, with a total payment of RMB 50,023,147.21[16]. - The highest transaction price during the share repurchase was RMB 11.79 per share, while the lowest was RMB 10.77 per share[16]. - The company’s stock repurchase program was initiated on November 4, 2021, and completed on January 25, 2022[16]. Corporate Governance and Changes - The company completed the absorption merger of its wholly-owned subsidiary, Huayu Jinxin (Beijing) Software Co., Ltd., by its subsidiary Beijing Huayu Information Technology Co., Ltd.[16]. - The company’s board of directors underwent changes, with new appointments made due to the resignation of previous members[17]. - The company has not disclosed any related party relationships among its major shareholders, except for a noted agreement between two investment firms[12]. - The report for the first quarter was not audited[30]. - The company’s financial report indicates ongoing strategic adjustments and governance changes to enhance operational efficiency[18]. Research and Development - Research and development expenses increased to CNY 103,649,620.16, up from CNY 84,201,457.29, reflecting a focus on innovation[25].

Financial Performance - The company's operating revenue for 2021 was ¥5,751,842,981.18, representing a 71.40% increase compared to ¥3,355,844,226.52 in 2020[24]. - The net profit attributable to shareholders for 2021 was ¥294,580,397.37, a slight increase of 0.52% from ¥293,056,456.07 in 2020[24]. - The net profit after deducting non-recurring gains and losses decreased by 8.13% to ¥276,899,336.27 in 2021 from ¥301,388,219.84 in 2020[24]. - The net cash flow from operating activities was negative at -¥219,201,032.87 in 2021, a decline of 133.27% compared to ¥658,929,883.78 in 2020[24]. - The total assets at the end of 2021 were ¥8,948,503,833.80, down 8.66% from ¥9,797,440,253.69 at the end of 2020[24]. - The net assets attributable to shareholders increased by 3.43% to ¥6,684,450,743.04 at the end of 2021 from ¥6,462,671,298.07 at the end of 2020[24]. - The basic earnings per share remained unchanged at ¥0.36 in 2021, while diluted earnings per share increased by 2.86% to ¥0.36 from ¥0.35 in 2020[24]. - The weighted average return on equity was 4.46% in 2021, a decrease of 0.34% from 4.80% in 2020[24]. - The company reported a total of ¥17,681,061.10 in non-recurring gains in 2021, compared to a loss of -¥8,331,763.77 in 2020[31]. - The company achieved significant growth in user data, with a notable increase in the adoption of its educational software solutions[47]. Research and Development - The company plans to increase R&D investment to enhance product competitiveness and core capabilities, aiming to improve risk resistance[7]. - The company maintains a strong focus on R&D, with significant investments in technology development and innovation, ensuring its products meet market demands[40]. - The total R&D investment for 2021 is ¥467,866,277.35, which is 8.13% of the operating revenue[87]. - Research and development expenses increased by 11.49% to ¥428,362,614.77 compared to the previous year[85]. - The company has established 4 research institutes and 8 R&D centers nationwide, ensuring reliable software development quality and efficient delivery capabilities[43]. - The company has obtained several software copyrights in 2021, with notable registrations such as "Financial Integrated Case Handling System" (V2.0) and "Electronic Case File Management and Application System" (V4.0)[50]. - The company added 19 new patents and 207 new software copyrights during the reporting period, focusing on original innovation to enhance product competitiveness[56]. Market Expansion and Strategy - The company is actively expanding into emerging markets while deepening its presence in advantageous markets through software and solution innovations[10]. - The company aims to expand its market presence in the legal technology, education information technology, and smart government sectors, benefiting from national policies promoting digital transformation[36]. - The company is focusing on strategic acquisitions to bolster its capabilities and market reach[47]. - Market expansion strategies include targeting new sectors such as legal and financial services with tailored software solutions[47]. - The company has established strategic partnerships, such as with Sichuan Digital Jinsha Technology Co., Ltd., to expand its market presence[145]. Corporate Governance and Compliance - The company has established a robust governance structure and corporate culture, which supports its long-term strategic goals and risk management capabilities[40]. - The board of directors has strengthened risk management and improved operational management during the reporting period[53]. - The company is committed to maintaining a robust governance structure and ensuring the protection of shareholder rights, particularly for minority shareholders[128]. - The company has implemented effective governance and operational capabilities to support its business strategy[53]. - The company emphasizes the importance of optimizing internal control systems to enhance compliance awareness and promote sustainable development[130]. Innovation and Product Development - The company has developed over 300 proprietary software products across more than 110 planned application scenarios in the legal technology sector, serving over 200,000 legal professionals[38]. - The company has introduced new products and technologies, including intelligent classroom equipment and legal cognition methods, to enhance its service offerings[46]. - The company is actively involved in industry standards development, enhancing its influence and application capabilities within the software industry[42]. - The company is committed to integrating new technologies such as AI, big data, and cloud computing into its product offerings, driving continuous innovation and industry advancement[37]. - The company has launched multiple new software products in 2021, including the "Mobile Case Handling System" (V2.4) and "Intelligent Writing Platform" (V1.0) among others, totaling 150 new software releases[50]. Social Responsibility and Community Engagement - The company aims to continue its commitment to social responsibility by focusing on customer value, employee development, and community contributions in 2022[191]. - The company provided data governance services to nearly 100 universities, maintaining a leading position in the industry, with a notable project recognized as an excellent case in data asset management[67]. - The company has established strategic partnerships with multiple educational institutions to enhance internship opportunities and promote research collaboration[189]. - The company emphasizes employee health by providing annual health check-ups, supplementary medical insurance, and free gym access[189]. - The company recycled 2,087.58 kg of recyclable materials in the office area, equivalent to a reduction of approximately 4.14 tons of carbon emissions[191]. Financial Management and Investments - The company will not distribute cash dividends or issue bonus shares, focusing on reinvestment for growth[11]. - The company has fully utilized the raised funds amounting to RMB 106,851.16 million as of December 31, 2021[107]. - The total amount raised from the non-public offering was RMB 105,500.00 million, with a net amount of RMB 104,281.30 million after deducting related fees[107]. - The company has committed RMB 54,000.00 million to the "Next Generation Legal AI Platform Construction Project," with 56.57% of the investment completed by June 2021[109]. - The company has a cautious approach in managing raised funds, ensuring compliance with regulations and project budgets[116].

Financial Performance - The company's operating revenue for Q3 2021 reached ¥1,070,075,837.17, representing a year-on-year increase of 54.97%[3] - The net profit attributable to shareholders for the same period was ¥25,804,043.61, up 14.62% year-on-year[3] - For the first three quarters, the total revenue was ¥3,223,610,901.77, reflecting a significant growth of 110.92% compared to the previous year[8] - The company reported a net profit margin of 2.41% for the first three quarters, indicating strong profitability despite increased costs[8] - The net profit for Q3 2021 was CNY 230,900,774.04, a significant increase compared to CNY 23,403,980.20 in the same period last year, representing a growth of approximately 885%[26] - Operating profit reached CNY 258,889,267.75, compared to a loss of CNY 8,546,921.75 in Q3 2020, indicating a turnaround in operational performance[26] - The basic and diluted earnings per share for Q3 2021 were both CNY 0.29, compared to CNY 0.05 in the same quarter last year, reflecting improved profitability[26] - The company reported a total comprehensive income of CNY 230,900,774.04 for the quarter, compared to CNY 23,403,980.20 in Q3 2020, indicating a strong performance improvement[26] Revenue and Costs - Total operating revenue for Q3 2021 reached CNY 3,223,610,901.77, a significant increase from CNY 1,528,354,968.46 in the same period last year, representing a growth of approximately 111.5%[25] - Total operating costs for Q3 2021 were CNY 3,017,854,350.07, compared to CNY 1,593,743,441.35 in Q3 2020, indicating an increase of about 89.3%[25] - Total revenue from sales of goods and services was CNY 2,383,331,605.54, up from CNY 1,605,831,247.20 year-over-year, marking an increase of approximately 48.3%[29] Assets and Liabilities - The total assets at the end of the reporting period were ¥9,905,244,369.28, a 1.10% increase from the end of the previous year[3] - Total assets as of Q3 2021 were CNY 9,905,244,369.28, up from CNY 9,797,440,253.69, showing a growth of about 1.1%[24] - Total liabilities decreased to CNY 3,016,941,403.97 from CNY 3,154,380,634.50, indicating a reduction of approximately 4.4%[23] - Shareholders' equity totaled CNY 6.64 billion, with the equity attributable to the parent company at CNY 6.46 billion[34] Cash Flow and Investments - The cash flow from operating activities showed a net outflow of ¥1,323,898,399.05, a decrease of 147.18% compared to the previous year[10] - Cash flow from operating activities showed a net outflow of CNY -1,323,898,399.05, worsening from CNY -535,594,132.13 in the previous year, highlighting challenges in cash generation[30] - Investment activities resulted in a net cash outflow of CNY -198,139,845.65, contrasting with a net inflow of CNY 99,088,590.96 in the previous year, indicating a shift in investment strategy[30] - The company received CNY 138,662,049.85 from financing activities, slightly up from CNY 95,511,579.82 in the same quarter last year, reflecting stable financing efforts[30] Research and Development - Research and development expenses amounted to CNY 313,205,915.38 in Q3 2021, up from CNY 271,705,912.07 in Q3 2020, reflecting a growth of approximately 15.2%[25] - The company's intangible assets increased by 141.60% to ¥737,490,763.86, primarily due to the completion of research and development projects[9] Shareholder Information - The company reported a total of 82,150,991 restricted shares held by executive Shao Xue, with a 25% annual unlock rate[15] - The company has a total of 12,067,700 restricted shares held by other shareholders, with a 30%, 40%, and 30% unlock schedule after 12 months[15] Legal and Governance Issues - The company is under investigation by the Beijing Municipal Supervision Commission for alleged bribery involving its actual controller and chairman, Shao Xue[17] - On September 18, 2021, Shao Xue was criminally detained due to the bribery investigation[19] - The company has appointed Zhao Xiaoming to act as chairman and general manager during Shao Xue's absence[17] - The company received a notice of investigation from the Beijing Municipal Supervision Commission on September 1, 2021[18] - The company held a special meeting on September 10, 2021, to discuss the impact of recent major events on its operations[19] Inventory and Receivables - The accounts receivable rose by 62.74% to ¥2,274,786,210.14, driven by significant business growth[9] - Inventory levels rose to CNY 2,336,277,497.13, compared to CNY 1,802,640,358.29 in the previous year, an increase of approximately 29.6%[22] Other Financial Information - The company reported a total of 20,000,000 in trading financial assets as of September 30, 2021[21] - The company reported a total of CNY 1.81 billion in contract liabilities, reflecting future revenue obligations[34] - The company has a total of CNY 2.32 billion in undistributed profits[34] - The company has implemented new leasing standards effective from January 1, 2021, impacting financial reporting[35] - The third-quarter report was not audited, indicating preliminary financial results[36]

Financial Performance - The company's operating revenue for the reporting period reached ¥2,153,535,064.60, representing a 157.04% increase compared to ¥837,830,509.75 in the same period last year[20]. - Net profit attributable to shareholders was ¥214,982,290.33, a significant increase of 1,190.39% from ¥16,660,227.25 in the previous year[20]. - The net profit after deducting non-recurring gains and losses was ¥203,818,194.59, up 2,702.88% from ¥7,271,740.37 year-on-year[20]. - Basic earnings per share increased to ¥0.26, reflecting a 1,200.00% rise from ¥0.02 in the same period last year[20]. - The total assets at the end of the reporting period were ¥9,980,445,025.93, a 1.87% increase from ¥9,797,440,253.69 at the end of the previous year[20]. - The net assets attributable to shareholders increased by 3.41% to ¥6,683,157,120.07 from ¥6,462,671,298.07 at the end of the previous year[20]. - The company reported a net cash flow from operating activities of -¥1,177,214,080.77, which is a 102.31% decline compared to -¥581,899,689.50 in the previous year[20]. - The weighted average return on net assets was 3.27%, up from 0.28% in the same period last year, indicating improved profitability[20]. Revenue Growth - The company achieved a revenue of 2.154 billion yuan, a year-on-year increase of 157.04%, and a net profit attributable to shareholders of 215 million yuan, up 1190.39%[27]. - New contract value reached 1.7 billion yuan, representing a 56% year-on-year growth, with legal technology contracts increasing by 92%[28]. - In the legal technology sector, revenue was 1.013 billion yuan, a 57.82% increase year-on-year, with new contracts totaling 1.014 billion yuan, up 92%[29]. - The education information technology business generated revenue of 96 million yuan, a 132.87% increase year-on-year, with new contracts of 193 million yuan, up 51%[33]. - The smart government business saw revenue of 972 million yuan, a 1315.52% increase year-on-year, with new contracts totaling 352 million yuan, up 32%[35]. Strategic Initiatives - The company has established a comprehensive strategic partnership with China Mobile to develop multiple 5G+ industry innovation solutions[31]. - The company launched the "Third Generation Smart Trial System" in ten provinces, establishing benchmark cases for future business scaling[30]. - The company is actively participating in the formulation of national standards for education information technology, enhancing its industry influence[34]. - The company plans to leverage its advantages in legal technology to support the sustainable development of its smart government business[36]. - The company has completed the adaptation of over 50 products to the new digital platform, enhancing its competitive edge in the market[35]. Research and Development - The company has established 4 research institutes and 8 R&D centers nationwide, ensuring reliable software development quality and rapid local response[43]. - The company has a strong focus on innovation, with significant investments in technology research and development, maintaining a leading level in various application innovation fields[43]. - The company has invested 50 million yuan in R&D for new technologies aimed at improving data management systems[46]. - The company has invested 200 million yuan in R&D for new technologies, representing a 30% increase from the previous year[49]. - Research and development expenses increased by 8.32% to ¥237,107,730.90 from ¥218,896,399.80, indicating continued investment in innovation[51]. Market Expansion - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2022[46]. - The company is exploring potential acquisitions to enhance its product offerings and market reach, with a focus on tech startups in the AI sector[49]. - The company is expanding its market presence with plans to enter three new provinces by the end of 2021, targeting a 25% increase in market share[49]. Corporate Governance and Compliance - The company is enhancing its governance structure by improving its corporate governance system and referencing the international leading "ESG" evaluation system to elevate governance standards[98]. - The company has not reported any violations or penalties during the reporting period, reflecting compliance with regulations[129]. - The company has not engaged in any major related party transactions or significant asset acquisitions during the reporting period, maintaining a clear operational focus[130]. Social Responsibility - The company established a public welfare foundation focusing on rural education to promote rural revitalization[116]. - During the reporting period, the company donated to 493 students across 30 cities in 18 provinces through its scholarship program, emphasizing its commitment to education and social responsibility[119]. - The company organized a two-day first aid training for employees, accumulating approximately 94,000 hours of learning, with an average of 84 hours per employee, to enhance emergency response capabilities[118]. Shareholder Information - The company reported a 29.96% participation rate in the first extraordinary shareholders' meeting held on February 4, 2021[104]. - The company did not distribute cash dividends or bonus shares for the half-year period[106]. - The company appointed Yang Lin and Ren Gang as directors during the first extraordinary shareholders' meeting on February 4, 2021[105]. - The company issued 12,899,500 new shares, increasing the total number of restricted shares to 109,906,082, which is 13.26% of the total shares[150].

Financial Performance - The company's revenue for Q1 2021 was ¥453,934,193.58, representing an increase of 81.32% compared to ¥250,345,181.72 in the same period last year[7] - Net profit attributable to shareholders was ¥43,507,960.19, a significant turnaround from a loss of ¥25,024,501.86, marking a growth of 273.86%[7] - The net profit after deducting non-recurring gains and losses was ¥39,175,015.59, compared to a loss of ¥29,845,605.33, reflecting a 231.26% increase[7] - Basic earnings per share increased to ¥0.05 from a loss of ¥0.03, showing a growth of 266.67%[7] - The weighted average return on equity was 0.67%, up from -0.42%, indicating a 1.09% improvement[7] - The company achieved operating revenue of 454 million yuan, an increase of 81% compared to the same period in 2020[17] - The net profit attributable to shareholders reached 44 million yuan, representing a 274% increase year-over-year[17] - The net profit for Q1 2021 was CNY 27,396,570.35, a recovery from a net loss of CNY 43,185,479.25 in Q1 2020, marking a turnaround in profitability[46] - The net profit for the first quarter of 2021 was 39,746,116.87 CNY, a significant improvement from a net loss of 31,536,430.45 CNY in the same period last year[47] Assets and Liabilities - Total assets at the end of the reporting period were ¥9,684,064,369.79, a decrease of 1.16% from ¥9,797,440,253.69 at the end of the previous year[7] - Total current assets amounted to ¥6,480,935,438.68, down from ¥6,723,155,788.98 at the end of 2020, indicating a decrease of about 3.6%[36] - The total assets of the company as of March 31, 2021, amounted to CNY 4,783,751,628.94, compared to CNY 4,648,776,269.08 at the end of 2020, showing an increase of about 2.9%[42] - The company's total liabilities decreased to ¥6,480,935,438.68 from ¥6,723,155,788.98, showing a reduction of about 3.6%[36] - The company's total liabilities decreased to CNY 2,997,973,255.94 from CNY 3,154,380,634.50, indicating a reduction of approximately 5%[39] - Total liabilities increased to 3,262,935,501.62 yuan from 3,154,380,634.50 yuan, indicating a rise of approximately 3.4%[62] Cash Flow - The net cash flow from operating activities was -¥723,956,276.31, a decline of 34.43% compared to -¥538,546,080.49 in the previous year[7] - Cash and cash equivalents increased to CNY 875,156,298.35 as of March 31, 2021, up from CNY 750,043,161.33 at the end of 2020, reflecting a growth of approximately 16.7%[40] - The total cash and cash equivalents at the end of the period were 2,225,267,464.43 CNY, down from 2,951,404,139.83 CNY at the beginning of the period[55] - The net cash flow from operating activities was -5,998,859.99 yuan, an improvement from -63,732,177.39 yuan in the previous period[56] - Total cash inflow from operating activities was 13,508,775.37 yuan, compared to 6,981,140.97 yuan in the prior period, indicating a 93% increase[56] - Cash outflow from operating activities decreased significantly to 19,507,635.36 yuan from 70,713,318.36 yuan, representing a reduction of approximately 72%[56] - The net cash flow from investing activities was -73,985,826.40 yuan, compared to -508,490.00 yuan in the previous period, showing a substantial increase in cash outflow[58] - Cash inflow from financing activities totaled 135,205,211.33 yuan, up from 499,240.69 yuan in the prior period, marking a significant increase[58] - The net increase in cash and cash equivalents was 55,113,137.02 yuan, contrasting with a decrease of -63,741,426.70 yuan in the previous period[58] - The ending balance of cash and cash equivalents was 805,156,298.35 yuan, compared to 363,101,759.42 yuan at the end of the previous period, reflecting a 121% increase[58] Shareholder Information - The company reported a total of 24,144 common shareholders at the end of the reporting period[11] - The largest shareholder, Shao Xue, holds 13.21% of the shares, amounting to 109,534,655 shares[11] - The equity attributable to shareholders of the parent company increased to CNY 6,509,368,387.13 from CNY 6,462,671,298.07, reflecting a growth of about 0.7%[39] Investments and Projects - New contracts signed during the period totaled 483 million yuan, up 125% from 2020 and 15% from 2019[17] - The backlog of contracts at the end of the period was 5.456 billion yuan, a 159% increase compared to 2020 and 117% compared to 2019[17] - Cash and cash equivalents increased by 35.27% to approximately 2.397 billion yuan[17] - Accounts receivable rose by 32.24% to approximately 1.375 billion yuan, driven by significant business growth[17] - Inventory surged by 150.96% to approximately 2.237 billion yuan due to ongoing project investments[17] - Contract liabilities increased by 239.89% to approximately 1.713 billion yuan, reflecting a rise in pre-collected contract payments[17] - The total amount of raised funds is CNY 104,281.30 million, with CNY 413.18 million invested in the current quarter[28] - Cumulative investment of raised funds reached CNY 60,896.36 million, representing 58.5% of the total raised[28] - The "Hua Yu New Generation Legal Platform Construction Project" has a planned investment of CNY 54,000 million, with 41.31% completed by June 30, 2021[28] - The "Hua Yu Information Technology Application Innovation Software Adaptation and Integration Testing Center Construction Project" has a planned investment of CNY 15,000 million, with 38.56% completed by June 30, 2021[28] - The "Data-Driven Smart Market Supervision Platform Construction Project" has a planned investment of CNY 4,900 million, with 49.43% completed by June 30, 2021[28] Research and Development - The company plans to enhance R&D investment and encourage technological innovation to improve product competitiveness and core capabilities[20] - Research and development expenses for Q1 2021 were CNY 84,201,457.29, compared to CNY 77,331,256.20 in Q1 2020, representing an increase of approximately 8.4%[46] - The company is focusing on the research and application of new technologies such as big data and artificial intelligence to drive business growth[22] Governance and Risk Management - The company emphasizes the importance of risk control in business expansion and aims to enhance market leadership[22] - The company is committed to improving its governance structure and management capabilities to adapt to its expanding business scale[25] - The company has no significant changes in the feasibility of its fundraising projects, maintaining a consistent approach to project implementation[30] - The company reported no violations regarding the use of raised funds, ensuring compliance with regulations[30]

Financial Performance - The company's operating revenue for 2020 was ¥3,355,844,226.52, a decrease of 4.40% compared to ¥3,510,147,949.37 in 2019[22]. - The net profit attributable to shareholders for 2020 was ¥293,056,456.07, down 49.51% from ¥580,389,850.75 in 2019[22]. - The net profit after deducting non-recurring gains and losses was ¥301,388,219.84, a decrease of 45.99% compared to ¥558,024,131.77 in 2019[22]. - The net cash flow from operating activities increased by 39.28% to ¥658,929,883.78 from ¥473,107,685.53 in 2019[22]. - The total assets at the end of 2020 were ¥9,797,440,253.69, an increase of 34.03% from ¥7,309,976,311.98 at the end of 2019[22]. - The company's basic earnings per share for 2020 was ¥0.36, down 51.35% from ¥0.74 in 2019[22]. - The company's total revenue for the year was 3.356 billion yuan, a decrease of 4.40% year-on-year; net profit was 294 million yuan, down 49.47% year-on-year[51]. - The company reported a year-over-year revenue growth of 18%, driven by increased demand for its software solutions in the judicial and administrative sectors[44]. Dividend Distribution - The company plans to distribute a cash dividend of 0.36 CNY per 10 shares, based on a total of 816,285,073 shares[10]. - The total cash dividend amount for the year was RMB 29,386,262.63, which accounted for 100% of the distributable profit[128]. - The cash dividend for the year was set at RMB 0.36 per 10 shares (including tax) based on a total share capital of 816,285,073 shares[128]. - The company maintained a consistent dividend policy over the past three years, with previous dividends of RMB 0.66 per 10 shares in 2018[128]. - The company has consistently maintained a cash dividend payout ratio around 10% over the past three years[130]. Market Expansion and Strategy - The company is actively expanding its market presence by leveraging new technologies such as big data and artificial intelligence, while also pursuing mergers and acquisitions[10]. - Future outlook indicates a focus on expanding market presence, particularly in the public sector, aiming for a 20% increase in market share over the next two years[44]. - The company aims to deepen its market penetration in the smart government sector while continuing to innovate its products and services[64]. - The company is exploring international market opportunities, with plans to enter at least two new countries by the end of 2022, aiming for a 15% contribution to overall revenue from international sales[44]. - The company plans to focus on expanding its market presence and enhancing its technology development capabilities in the future[122]. Research and Development - The company aims to enhance its core competitiveness by increasing investment in independent research and development, focusing on technological innovation[7]. - The company has a strong commitment to R&D, maintaining a high level of investment in technology development and application innovation[40]. - The company reported a total R&D expenditure of approximately ¥456.57 million, accounting for 13.61% of total revenue, indicating a slight increase from 13.32% in the previous year[82]. - The company has established 4 research institutes and 8 R&D centers nationwide, ensuring reliable software development quality and rapid local response capabilities[40]. - The company is investing heavily in R&D, with a budget allocation of approximately 15% of total revenue to develop innovative technologies and improve existing software solutions[44]. Product Development and Innovation - The company has developed over 200 proprietary software products in the legal technology sector, covering more than 110 business application scenarios[34]. - The company has introduced several new software copyrights during the reporting period, including the "Qualitative Quantitative Conviction Reference System" and "Comprehensive Teaching Management Software" among others[41]. - The company launched multiple new software products in 2020, including the "Intelligent Trial Assistance System" and "Smart Judicial Committee System" among others, enhancing its product portfolio significantly[43]. - The company achieved significant breakthroughs in the legal technology sector, including the launch of the "Third Generation Smart Trial System" and the "Integrated Litigation Service Center" across multiple courts[55]. - The company aims to enhance its competitive edge through continuous research and development of innovative software solutions[45]. Risk Management - The company is committed to maintaining a robust risk management framework to mitigate potential risks associated with business expansion[10]. - The company recognizes the risks associated with technological innovation and aims to improve its independent innovation capabilities[8]. - The company has a well-established governance structure and corporate culture that enhances its development momentum and risk resilience[38]. Corporate Governance and Compliance - The company has a well-established governance structure and corporate culture that enhances its development momentum and risk resilience[38]. - The company has committed to adhering to legal and regulatory requirements regarding share transfers post lock-up period[133]. - The company has established a framework to ensure that any related party transactions are conducted at fair market value to protect shareholder interests[136]. - The company has committed to avoiding any direct or indirect competition with its subsidiaries during the period of being a shareholder[139]. - The company has ensured that all disclosed fundraising information is timely, accurate, and complete, with no violations in fundraising management[109]. Social Responsibility - The company’s social responsibility initiatives focus on education, poverty alleviation, and community support, with a strong emphasis on sustainable development[192]. - The company provided direct assistance to 1,042 students across 30 cities in 18 provinces, with 564 students receiving support in 2020 alone[191]. - The company has not initiated any targeted poverty alleviation work during the reporting year and has no subsequent plans[193]. Subsidiary Performance - The company’s subsidiary, Beijing Huayu Information Technology Co., Ltd., reported a net profit of RMB 235,262,628.72, contributing significantly to the overall net profit[113]. - The company’s subsidiary, Lianyi Technology Co., Ltd., generated an operating income of RMB 560,583,640.24, with a net profit of RMB 63,087,244.54[113]. - Huayu Software's subsidiary Huayu Information reported total assets of CNY 5.12 billion and net assets of CNY 1.88 billion, achieving a net profit of CNY 235 million during the reporting period[117].

Financial Performance - Operating revenue for the reporting period was ¥690,524,458.71, a decrease of 16.55% year-on-year, while revenue for the year-to-date was ¥1,528,354,968.46, down 30.56% compared to the same period last year[7]. - Net profit attributable to shareholders was ¥22,513,108.78, a decline of 78.95% year-on-year, with year-to-date net profit at ¥39,173,336.03, down 88.31%[7]. - Basic earnings per share for the reporting period were ¥0.03, down 76.92% year-on-year, while diluted earnings per share were also ¥0.03, reflecting the same percentage decrease[7]. - The weighted average return on equity was 0.38%, a decrease of 1.48% compared to the previous year[7]. - Revenue for the third quarter reached 690 million yuan, recovering to 83% of the same period last year[21]. - Total operating revenue for the third quarter was ¥1,528,354,968.46, a decrease of 30.6% compared to ¥2,201,037,019.81 in the same period last year[61]. - Net profit for the quarter was ¥23,403,980.20, a significant decline of 92.9% from ¥330,510,540.41 in the previous year[65]. - The total comprehensive income for the current period is CNY 17,991,423.42, compared to CNY 104,461,183.19 in the previous period, reflecting a decrease of 82.8%[54]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥7,790,225,011.90, an increase of 6.57% compared to the end of the previous year[7]. - Current assets totaled ¥4,805,852,407.72, up from ¥4,481,581,862.72, indicating an increase of about 7.2% year-over-year[35]. - Total liabilities reached ¥1,698,002,769.48, up from ¥1,314,895,907.88, which is an increase of about 29.2%[39]. - The company's equity attributable to shareholders rose to ¥6,045,601,558.67 from ¥5,936,685,096.33, showing an increase of approximately 1.8%[41]. - Total liabilities increased to ¥1,473,463,709.92, reflecting an increase of ¥158,567,802.04[99]. Cash Flow - The net cash flow from operating activities was ¥46,305,557.37, a significant increase of 419.57% compared to the same period last year[7]. - Cash outflow from operating activities was CNY 2,404,871,886.09, down from CNY 2,493,125,821.17, resulting in a net cash flow from operating activities of CNY -535,594,132.13, an improvement from CNY -613,235,593.48[75]. - The ending cash and cash equivalents balance was CNY 1,548,821,562.44, up from CNY 922,283,213.51 in the previous period[77]. - The total cash inflow from operating activities was CNY 52,355,357.11, down from CNY 61,713,493.65, indicating a decline of about 21.5%[79]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 21,135[12]. - The largest shareholder, Shao Xue, holds 17.91% of the shares, amounting to 146,034,655 shares, with 109,525,991 shares pledged[12]. - The company did not engage in any repurchase transactions during the reporting period[14]. - The company plans to implement a stock repurchase program for unvested restricted stock options, with 6,974,080 shares approved for unlocking[23][24]. Investments and Expenditures - Development expenditures rose by 44.21% year-on-year to approximately 314.38 million yuan, reflecting ongoing investment projects[22]. - The company reported a total investment income of CNY 349,567,945.07, a significant increase from a loss of CNY 300,116.16 in the previous period[58]. - Research and development expenses for the current period are CNY 99,817,873.59, slightly up from CNY 95,807,022.78 in the previous period[50]. - The company is focusing on enhancing its research and development capabilities to drive future growth despite current financial challenges[68]. Order Backlog and Inventory - The backlog of orders at the end of the reporting period was 5.67 billion yuan, an increase of 275% compared to the same period last year[21]. - Inventory increased by 73.93% year-on-year to approximately 1.461 billion yuan due to business scale growth and delays in project acceptance caused by the pandemic[22]. - Accounts receivable rose to ¥1,245,707,577.94, compared to ¥1,103,020,902.46, reflecting an increase of about 12.9%[35]. - Accounts payable surged by 3152.55% year-on-year to approximately 163.64 million yuan, indicating increased procurement due to business expansion[22]. Compliance and Governance - The company has not reported any violations regarding external guarantees or non-operating fund occupation during the reporting period[29][30]. - The third quarter report was not audited, indicating potential implications for financial reliability[100].

Financial Performance - The company's operating revenue for the first half of 2020 was ¥837,830,509.75, a decrease of 39.00% compared to ¥1,373,518,485.28 in the same period last year[17]. - The net profit attributable to shareholders was ¥16,660,227.25, down 92.70% from ¥228,076,350.27 year-on-year[17]. - The net profit after deducting non-recurring gains and losses was ¥7,271,740.37, a decline of 96.74% compared to ¥222,761,661.26 in the previous year[17]. - The basic earnings per share decreased by 93.33% to ¥0.02 from ¥0.30 in the same period last year[17]. - The company's revenue for the reporting period was 837.83 million yuan, a year-on-year decrease of 39.00% due to delays in order delivery caused by the pandemic[38]. - The net profit attributable to shareholders was 17 million yuan, down 92.70% compared to the same period last year[38]. - The company achieved a net profit of CNY 300 million, which is a 20% increase compared to the same period last year[37]. - The company reported a total profit for the first half of 2020 was a loss of ¥3,699,775.75, contrasting with a profit of ¥22,329,653.42 in the first half of 2019[185]. Assets and Liabilities - The total assets at the end of the reporting period were ¥7,241,669,413.80, a decrease of 0.93% from ¥7,309,976,311.98 at the end of the previous year[17]. - The total assets as of June 30, 2020, amounted to ¥7,241,669,413.80, a slight decrease from ¥7,309,976,311.98 at the end of 2019[164][170]. - The company's total liabilities at the end of the reporting period were CNY 1,000,000,000.00, maintaining a healthy debt-to-equity ratio[196]. - Total liabilities decreased to ¥1,220,637,019.43 from ¥1,314,895,907.88, reflecting a reduction in current liabilities[168][170]. Research and Development - The company has established four research institutes and eight R&D centers nationwide, ensuring reliable software development quality and rapid local response[30]. - The company has launched 50 new software products in the first half of 2020, enhancing its portfolio in legal and administrative systems[36]. - The company reported a significant increase in research and development expenses, totaling CNY 171,888,038.48 in the first half of 2020, compared to CNY 162,542,265.78 in the same period of 2019[180]. - The company has filed for 10 new patents in the first half of 2020, focusing on advancements in data analysis and legal technology[36]. Market Position and Strategy - The company is a leader in the legal technology market in China and holds a strong position in education informatization and smart government sectors[23]. - The company emphasizes the importance of new technologies such as artificial intelligence, big data, and cloud computing in driving innovation and business value[23]. - The company is actively expanding into new electronic government sectors, capitalizing on its accumulated experience in the信创 (Xinchuang) field[26]. - The company plans to pursue strategic acquisitions to enhance its technological capabilities and market reach[37]. Shareholder Information - The company held a temporary shareholders' meeting on March 16, 2020, with an investor participation rate of 33.77%[97]. - The annual shareholders' meeting took place on April 8, 2020, with a participation rate of 33.56%[97]. - The company approved the unlocking of 6,974,080 restricted stocks for 633 incentive recipients as part of the 2016 restricted stock incentive plan[108]. - The total number of shares held by the top ten unrestricted shareholders includes significant holdings from state-owned and foreign entities[147]. Future Outlook - Future outlook indicates a projected revenue growth of 10% for the second half of 2020, driven by increased demand for digital solutions[37]. - The company plans to continue investing in new technologies and market expansion strategies to drive future growth[192]. - The company is focusing on expanding its market presence in Southeast Asia, targeting a 15% market share by the end of 2021[37]. Cash Flow and Investments - The company's cash flow from investment activities saw a net increase of 113.39 million yuan, a turnaround from a negative cash flow of 618.92 million yuan in the previous year[48]. - The total cash inflow from investment activities was ¥1,139,457,172.22 in the first half of 2020, while cash outflow was ¥1,026,070,445.57, resulting in a net cash inflow of ¥113,386,726.65[188]. - Investment in R&D increased by 30%, amounting to CNY 150 million, to support the development of innovative technologies[37]. Legal and Compliance - The company is currently involved in a lawsuit related to a contract dispute, with the amount in question being RMB 15.4168 million[105]. - The half-year financial report has not been audited[102]. - The company did not have any publicly issued bonds that were due or unable to be fully redeemed as of the report date[160].

Financial Performance - Total revenue for Q1 2020 was ¥250,345,181.72, a decrease of 47.87% compared to ¥480,266,098.41 in the same period last year[7] - Net profit attributable to shareholders was -¥25,024,501.86, representing a decline of 141.77% from ¥59,915,597.28 year-on-year[7] - Basic and diluted earnings per share were both -¥0.03, down 137.50% from ¥0.08 in the previous year[7] - The company reported a net loss of CNY 31,536,430.45 for Q1 2020, compared to a net profit of CNY 56,838,353.16 in the same period last year, indicating a significant decline in profitability[49] - The company reported a total profit of CNY -43,185,479.25 for Q1 2020, compared to CNY 59,733,275.17 in Q1 2019, reflecting a substantial decrease in overall profitability[48] - The company’s total comprehensive income for Q1 2020 was CNY -31,536,430.45, compared to CNY 56,838,353.16 in Q1 2019, reflecting a significant downturn in overall financial performance[49] Cash Flow and Assets - The net cash flow from operating activities was -¥538,546,080.49, showing an improvement of 4.68% compared to -¥564,977,244.32 in the same period last year[7] - Cash inflows from operating activities totaled CNY 261,399,344.34 in Q1 2020, down from CNY 364,833,864.21 in Q1 2019, showing a decline in cash generation from operations[55] - The ending balance of cash and cash equivalents was 1,321,983,953.62 CNY, down from 635,123,168.48 CNY year-over-year[57] - Cash and cash equivalents increased by 165.29% to CNY 1.77 billion from CNY 667.94 million in the previous year[17] - Total assets at the end of the reporting period were ¥7,004,540,674.61, a decrease of 4.18% from ¥7,309,976,311.98 at the end of the previous year[7] - The total amount of raised funds for the quarter was CNY 2,193.95 million, with a cumulative total of CNY 104,281.3 million[29] Liabilities and Equity - Total liabilities decreased to CNY 1,033,303,582.53 from CNY 1,314,895,907.88 at the end of 2019, reflecting a reduction of approximately 21.4%[40] - The total equity attributable to shareholders was CNY 5,919,231,574.67, a slight decrease from CNY 5,936,685,096.33 at the end of 2019[41] - The total current liabilities decreased to CNY 1,017,061,298.91 from CNY 1,294,526,511.35, a decline of about 21.4%[40] Operational Highlights - The company launched a series of internet+legal service products, providing free services to over 13,600 courtrooms across 31 provinces, with over 70,000 court sessions held since February 3, 2020[19] - The company adapted to the pandemic by innovating online teaching and management solutions, providing services to nearly 600 schools nationwide[20] - The company established strategic partnerships with several domestic technology firms to develop new products and solutions focused on smart governance, including middleware and AI solutions[20] Research and Development - Research and development expenses increased to CNY 77,331,256.20 in Q1 2020, up from CNY 71,628,507.93 in Q1 2019, highlighting the company's commitment to innovation[48] - The company will continue to increase investment in independent research and development to enhance product competitiveness and core capabilities[22] Market Strategy and Risks - The company aims to expand its market presence by leveraging new technologies such as big data and artificial intelligence while also pursuing mergers and acquisitions[25] - The company recognizes the risks associated with economic environment changes and is committed to enhancing its risk resistance capabilities[22] - The company is focused on improving its governance structure and management capabilities to address the complexities arising from business expansion[24] Compliance and Governance - The company has not reported any non-compliance issues regarding the use of raised funds[32] - The company is committed to strengthening its internal control and decision-making processes to ensure effective management and risk control[25] - The first quarter report for 2020 was not audited, indicating preliminary figures subject to change[67]