Financial Performance - Operating revenue for the current period was CNY 165,809,329.03, representing a 12.13% increase year-over-year[7] - Net profit attributable to shareholders was CNY 2,580,381.03, up 4.29% from the same period last year[7] - Net profit attributable to shareholders after deducting non-recurring gains and losses surged by 259.78% to CNY 2,319,363.36[7] - The total operating revenue for Q3 2019 was CNY 84,931,238.21, an increase from CNY 79,413,136.10 in the previous year, representing a growth of approximately 6.3%[43] - The net profit for Q3 2019 was CNY 2,880,655.65, compared to CNY 2,390,494.17 in the same period last year, indicating an increase of about 20.5%[42] - The total comprehensive income for Q3 2019 was CNY 3,182,702.32, compared to CNY 2,805,784.02 in the same period last year, showing an increase of about 13.4%[42] - The total profit for Q3 2019 was CNY 3,420,690.00, compared to CNY 2,781,256.52 in the same period last year, indicating an increase of about 23.1%[41] Assets and Liabilities - Total assets increased by 1.38% to CNY 1,489,618,908.87 compared to the end of the previous year[7] - Total equity increased by 63.56% to ¥553,756,711 due to a private placement and capital reserve conversion[18] - Total assets as of September 30, 2019, amounted to ¥1,489,618,908.87, a slight increase from ¥1,469,367,398.18 at the end of 2018[30] - Total liabilities decreased to ¥333,853,222.02 from ¥464,594,453.90, indicating improved financial health[37] - The company’s total liabilities reached 496,598,874.06, remaining consistent with previous periods, suggesting stable liability management[60] Shareholder Information - Net assets attributable to shareholders increased by 20.02% to CNY 1,067,859,353.89 compared to the end of the previous year[7] - The total number of ordinary shareholders at the end of the reporting period was 18,206[10] - The largest shareholder, Liaoning Guoke Industrial Co., Ltd., held 26.60% of the shares, amounting to 147,279,042 shares[10] Cash Flow - Cash flow from operating activities showed a negative net amount of CNY -122,686,737.84, a decline of 357.08% compared to the previous year[7] - Operating cash outflow increased by 33.08% to ¥597,817,026.78 from ¥449,219,172.31 due to higher cash payments for goods and services[19] - Cash inflow from financing activities totaled ¥246,602,435.57, significantly higher than ¥53,020,638.95 in the previous year[52] - The net cash flow from operating activities was -96,674,294.98, a significant decline compared to -9,278,401.82 from the previous period, indicating a worsening operational cash flow situation[54] Expenses - Sales expenses rose by 47.62% to ¥49,317,765.14, mainly due to increased market expansion efforts[18] - Financial expenses increased by 43.51% to ¥5,716,084.13, resulting from higher interest expenses due to increased borrowings[18] - Research and development expenses for Q3 2019 were CNY 4,006,532.64, down from CNY 9,160,933.38 in the previous year, indicating a decrease of about 56.3%[43] Investment Activities - Investment cash inflow surged by 206.93% to ¥124,516,127.94 from ¥40,568,532.47, primarily due to increased cash received from investment recoveries[19] - Investment cash outflow rose significantly by 569.19% to ¥285,872,674.62 from ¥42,719,347.19, attributed to increased cash payments for investments[20] - The company reported a total cash outflow from investing activities of 229,108,927.43, compared to 74,975,901.15 in the previous period, indicating increased investment expenditures[56] Other Financial Metrics - Basic earnings per share decreased by 35.62% to CNY 0.0047[7] - The weighted average return on net assets was 0.24%, a decrease of 0.04 percentage points[7] - The company reported a credit impairment loss of CNY -8,647,782.14 for Q3 2019, compared to a loss of CNY -4,709,517.70 in the previous year[41] - The company executed a reclassification of financial assets, moving ¥55,650,000.00 from available-for-sale financial assets to other equity instruments[67]

Strategic Transformation and Acquisitions - The company has achieved substantial progress in strategic transformation, becoming a leading player in the medical information technology sector following the acquisitions of Shanghai Mijian and Shenzhou Shihan[6]. - The company has completed acquisitions of Mijian Information and Shenzhou Shihan, which may lead to increased goodwill and potential impairment risks if market conditions deteriorate[11]. - The company aims to integrate its business systems and enhance operational efficiency following recent acquisitions, which could improve profitability and core competitiveness[11]. Financial Performance - Total revenue for the reporting period reached ¥294,783,892.97, representing a 32.34% increase compared to ¥222,754,134.26 in the same period last year[25]. - Net profit attributable to shareholders was ¥8,932,140.63, up 39.82% from ¥6,388,117.21 year-on-year[25]. - The net profit after deducting non-recurring gains and losses surged by 502.39%, amounting to ¥8,708,777.87 compared to ¥1,445,714.57 in the previous year[25]. - The company's total assets increased by 0.84% to ¥1,481,663,109.93 from ¥1,469,367,398.18 at the end of the previous year[26]. - Shareholders' equity rose by 19.50%, reaching ¥1,063,243,313.68 compared to ¥889,734,869.70 at the end of the previous year[26]. Research and Development - The company is focused on increasing research and development investments to drive product innovation and customer-centric solutions[6]. - The company is focusing on smart healthcare and health data as key development areas, with a joint research center established for early detection of cardiovascular diseases[34]. - The company plans to deepen research in big data and system integration, focusing on urban management and government services[36]. Customer Experience and Market Strategy - The company plans to enhance its product lines and improve customer experience to mitigate risks associated with market competition and seasonal fluctuations[6][7]. - The company has emphasized the importance of talent retention and has implemented incentive mechanisms to attract and retain high-quality personnel amid increasing competition for skilled workers[9]. - The company is committed to integrating its various medical business units to create a unique competitive advantage in clinical medical information and health data analysis[49]. Cash Flow and Financial Management - The net cash flow from operating activities was negative at approximately -¥103.27 million, a decline of 162.41% year-over-year, indicating higher cash outflows than inflows[54]. - The net cash flow from financing activities significantly improved to approximately ¥188.44 million, a 1,709.15% increase, mainly due to increased investment inflows[54]. - The company's cash and cash equivalents decreased by approximately 88.41% to -¥80.81 million, attributed to higher cash expenditures for investments and operational costs[54]. Shareholder and Equity Information - The company did not distribute cash dividends or issue bonus shares for the half-year period[12]. - The company held two shareholder meetings during the reporting period, with investor participation rates of 49.38% and 47.43% respectively[82]. - The largest shareholder, Liaoning Guoke Industrial Co., Ltd., holds 26.60% of shares, totaling 147,279,042 shares, with 54,100,000 shares pledged[131]. Compliance and Risk Management - The company has strengthened its internal control system to ensure compliance, asset safety, and the integrity of financial reporting, while reducing operational risks[52]. - The company has no major litigation or arbitration matters during the reporting period[88]. - The company has not experienced any significant changes in the feasibility of its fundraising investment projects[73]. Operational Efficiency and Cost Control - The company actively promoted comprehensive budget management to control costs through detailed planning and employee participation, enhancing overall strategic goal achievement[50]. - Operating costs increased to approximately ¥188.19 million, a rise of 24.53% compared to the previous year, primarily driven by business growth[54]. - Research and development expenses rose by 51.22% to approximately ¥31.42 million, reflecting increased investment in R&D activities[54]. Capital Structure and Financing - The company raised a total of 168 million RMB in funding during the reporting period, including 160 million RMB from issuing shares and 8.42 million RMB from stock options and restricted stock[51]. - The total amount of raised funds is CNY 330.90 million, with CNY 126.90 million utilized during the reporting period and a cumulative total of CNY 294.90 million invested[70]. - The company has maintained strict management of unused raised funds, which are stored in a dedicated bank account[73].

Financial Performance - Total revenue for Q1 2019 reached ¥137,522,293.94, representing a 43.70% increase compared to ¥95,698,962.45 in the same period last year[9] - Net profit attributable to shareholders was ¥7,037,897.03, up 28.56% from ¥5,474,460.31 year-over-year[9] - Net profit excluding non-recurring gains and losses increased by 49.47% to ¥6,920,553.19 from ¥4,630,088.56 in the previous year[9] - Basic earnings per share rose to ¥0.0202, an 18.82% increase from ¥0.0170[9] - Operating revenue for the reporting period was ¥137,522,293.94, representing a year-on-year increase of 43.70%[22] - The net profit attributable to ordinary shareholders increased by 28.56% year-on-year to ¥7,037,897.03[22] - Net profit for the current period was ¥7,173,134.86, compared to ¥5,468,549.56 in the previous period, reflecting an increase of approximately 31.1%[64] - The total profit for the current period was ¥8,018,602.56, compared to ¥6,576,404.91 in the previous period, representing an increase of approximately 21.9%[64] Cash Flow - The net cash flow from operating activities was negative at -¥120,178,803.19, a decline of 154.60% compared to -¥47,202,574.62 in the same period last year[9] - Cash inflow from operating activities totaled ¥141,144,834.82, compared to ¥95,908,636.42 in the previous period, representing an increase of approximately 47.1%[71] - Cash outflow from operating activities was ¥261,323,638.01, up from ¥143,111,211.04, indicating a rise of about 83.0%[73] - Net cash flow from investing activities was -¥117,905,478.20, compared to -¥14,559,071.53 in the previous period[73] - Cash inflow from financing activities amounted to ¥198,750,110.57, a substantial increase from ¥10,527,572.80[73] - Net cash flow from financing activities was ¥182,674,968.90, compared to -¥6,988,248.22 previously, indicating a positive turnaround[73] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,499,913,945.91, a 2.08% increase from ¥1,469,367,398.18 at the end of the previous year[9] - The total amount of accounts receivable increased, posing a risk as sales scale grows, but the majority is from high-quality clients in education and healthcare sectors[28] - Total liabilities amounted to CNY 579,423,453.28, with current liabilities at CNY 499,398,874.06 and non-current liabilities at CNY 80,024,579.22[79] - The company reported accounts receivable of CNY 313,556,263.98, with accounts receivable at CNY 311,787,613.98 and notes receivable at CNY 1,768,650.00[82] Shareholder Information - The company had a total of 21,010 common shareholders at the end of the reporting period[12] - The largest shareholder, Liaoning Guoke Industrial Co., Ltd., held 26.60% of the shares, totaling 98,186,028 shares[12] - Control of the company changed on January 18, 2019, with GuoKe Industrial becoming the controlling shareholder, holding 98,186,028 shares (29% of total shares)[31] Research and Development - Research and development expenses rose by 68.84% year-on-year, reflecting increased investment in internal R&D projects[20] - Research and development expenses increased to ¥8,142,861.21 from ¥4,822,839.87, marking a growth of about 68.3%[63] Acquisitions and Goodwill - The company completed the acquisition of 100% equity of MiJian Information and ShenZhou Vision, resulting in significant fair value appreciation of identifiable net assets, leading to the recognition of goodwill[29] - The goodwill generated from the acquisitions will not be amortized but will require annual impairment testing, posing a risk to net profit if the acquired companies' performance deteriorates due to adverse macroeconomic conditions[29] - The company aims to enhance profitability and core competitiveness through synergies in technology, capital, industry chain, and market expansion following the acquisitions[30] Financial Adjustments and Compliance - The company adjusted its financial reporting by moving CNY 55,650,000.00 from available-for-sale financial assets to trading financial assets[81] - The company’s financial adjustments reflect compliance with new financial instrument standards, although it is not applicable for retrospective adjustments[83] Future Plans - The company plans to mitigate market competition risks by investing in technology innovation and exploring new service models to enhance user engagement[25] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[66]

Acquisition and Integration - The company completed the acquisition of 100% equity of Shanghai Mijian and Beijing Shenzhou Shihan, enhancing its competitive position in the medical information technology sector[11]. - The company is focused on integrating its operations post-acquisition to enhance profitability and core competitiveness through synergies in various business aspects[12]. - The company acquired 100% equity of Beijing Shenzhou Shihan Technology Co., Ltd. for 28 million yuan[40]. - The company completed the acquisition of 100% equity in Shenzhou Shihan, which has become a new profit growth point, increasing the total shares to 338,572,507[51]. - The company has committed to maintaining its independence post-acquisition, ensuring no related party transactions or competition arise[117]. Financial Performance - The company's operating revenue for 2018 was CNY 626.71 million, representing a 49.70% increase compared to CNY 418.66 million in 2017[26]. - The net profit attributable to shareholders for 2018 was CNY 20.42 million, an increase of 8.52% from CNY 18.82 million in 2017[26]. - The net profit after deducting non-recurring gains and losses decreased by 45.70% to CNY 9.45 million in 2018 from CNY 17.40 million in 2017[26]. - The net cash flow from operating activities surged by 409.19% to CNY 95.09 million in 2018, compared to CNY 18.67 million in 2017[26]. - The total assets at the end of 2018 reached CNY 1.47 billion, a 39.35% increase from CNY 1.05 billion at the end of 2017[26]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 0.12 RMB per share and a stock bonus of 5 shares for every 10 shares held, based on a total share capital of 369,171,141 shares[14]. - The cash dividend represents 21.69% of the net profit attributable to ordinary shareholders, which is 20,423,328.33 CNY for 2018[115]. - The cash dividend payout ratio for 2018 is 100% of the total profit distribution[111]. - The company has maintained a consistent cash dividend policy over the past three years[115]. Research and Development - The company aims to achieve a leading position in differentiated innovation within its niche market through substantial investment in product technology[6]. - Research and development expenses reached ¥38,907,431.66, reflecting a year-on-year increase of 55.63% due to the inclusion of new subsidiaries in the consolidated financial statements[52]. - R&D investment amounted to ¥53,784,782.43, representing 8.58% of total revenue in 2018[71]. - The company aims to enhance its R&D capabilities by leveraging strategic resources from its Boston-based research institute and integrating cutting-edge technologies such as AI and big data to drive innovation in healthcare[96]. Market Position and Strategy - The company was ranked among the top 500 solution providers in China and recognized as one of the top ten ISVs in the medical industry, indicating strong market positioning[47]. - The company is focused on creating a one-stop health O2O service platform to deliver quality healthcare resources and innovative management concepts[36]. - The company plans to continue leveraging capital markets for strategic investments and acquisitions to support its overall development strategy[51]. - The company is committed to improving its internal control systems through regular audits and enhanced supervision to ensure sustainable development and risk management[99]. Employee Engagement and Talent Management - The company emphasizes the importance of talent retention amidst increasing competition for skilled professionals, implementing incentive mechanisms to enhance employee satisfaction[9]. - The company launched an incentive plan for stock options and restricted stock to motivate employees and align with business goals[49]. - The total employee count is 783, with 288 in the parent company and 495 in major subsidiaries[195]. - Employee compensation totaled CNY 149 million, accounting for 23.37% of total company costs[196]. Risk Management and Compliance - The company has enhanced its internal control system to mitigate operational risks and improve management efficiency[51]. - The company has committed to avoiding any competition with its main business and has ensured that it and its controlled enterprises are not engaged in any competitive activities in China or abroad[117]. - The company has established a performance guarantee mechanism, where compensation will be provided if the actual net profit does not meet the promised figures[117]. Product Development and Innovation - The company launched a new smart ward product in 2018, providing an integrated software and hardware solution for inpatient information services[35]. - The company is developing a health big data service platform aimed at chronic disease patients, integrating resources from hospitals, community service centers, and health management centers[70]. - The company is enhancing its surgical anesthesia clinical information system by adding a day surgery module to increase business opportunities and market share[70]. - The company is actively pursuing new product development and technological advancements to stay competitive in the market[122]. Corporate Governance and Management - The company has independent directors with extensive experience in finance and technology, enhancing governance and strategic oversight[190]. - The financial team is led by a qualified CFO with a strong background in auditing and financial management, ensuring accurate financial reporting[191]. - The company completed the election of the fourth board of directors and supervisory board, updating the resumes of relevant directors, supervisors, and senior executives[191]. - The management team includes professionals with significant experience in human resources and operations, contributing to effective organizational management[190].

2018 年第三季度报告全文 荣科科技股份有限公司 Bringspring Science and Technology Co.,Ltd. 2018 年第三季度报告 2018 年 10 月 1 2018 年第三季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人付永全、主管会计工作负责人付永全及会计机构负责人(会计主 管人员)朱迎秋声明：保证季度报告中财务报表的真实、准确、完整。 2 2018 年第三季度报告全文 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 非经常性损益项目和金额 √ 适用 □ 不适用 单位：元 | 项目 | 年初至报告期期末金额 | 说明 | | --- | --- | --- | | 非流动资产处置损益（包括已计提资产减值准备的冲销部分） | 6,847.45 | | | 计入当期损益的政府补助（与企业业务密切相关，按照国家统一 | 10, ...

Strategic Transformation and Acquisitions - The company has achieved substantial progress in strategic transformation, becoming a leading player in the medical information technology sector following the acquisition of Shanghai Mijian and Shenzhou Shihan[6]. - The acquisition of 100% equity in Shenzhou Shihan has expanded the company's asset scale and business scope, aiming to leverage synergies to improve profitability and core competitiveness[12]. - The company completed the acquisition of Shenzhou Shihan, with plans to continue seeking synergistic acquisition targets domestically and internationally to enhance its market and industry layout[6]. - The company acquired 100% equity of Beijing Shenzhou Shihan Technology Co., Ltd. for ¥28,000.00 million[38]. Financial Performance - Total revenue for the reporting period reached RMB 222,754,134.26, an increase of 28.58% compared to RMB 173,243,837.15 in the same period last year[29]. - Net profit attributable to shareholders decreased by 60.64% to RMB 6,388,117.21 from RMB 16,229,665.11 year-on-year[29]. - Net profit after deducting non-recurring gains and losses fell by 91.09% to RMB 1,445,714.57 compared to RMB 16,231,156.32 in the previous year[29]. - Operating profit decreased by 49.33% to ¥7,867,160.48 compared to the same period last year[43]. - The company reported a significant increase in other income, which rose by 413.76% to ¥17,591,761.17, mainly from government subsidies related to daily activities[48]. Cash Flow and Assets - The net cash flow from operating activities improved by 31.30%, reaching RMB -39,353,615.43, compared to RMB -57,285,875.09 in the same period last year[29]. - Total assets increased by 28.15% to RMB 1,351,251,448.72 from RMB 1,054,438,182.89 at the end of the previous year[29]. - Fixed assets increased by ¥6,561,859.48, a growth of 3.38% due to the inclusion of newly consolidated subsidiaries[38]. - Inventory balance increased by ¥46,556,786.31, a significant growth of 146.56% due to the consolidation of new subsidiaries[38]. Risk Management and Competition - The company faces risks related to market competition, emphasizing the need for technological and business model innovation to maintain its competitive edge[6]. - The company has established a risk management framework to enhance its risk management capabilities and employee awareness[6]. - The company has acknowledged the risk of goodwill impairment from acquisitions, particularly if the economic environment or competitive landscape negatively impacts the acquired entities[11]. Talent and Operational Efficiency - The company is actively enhancing its talent incentive mechanisms to retain high-quality personnel amid increasing competition for skilled workers[9]. - The company continues to invest in talent development to improve operational efficiency and project delivery[44]. Strategic Focus and Product Development - The company focuses on smart healthcare and health data, with a strategic emphasis on clinical medical information and health big data as key development areas[34]. - The company is developing a health management O2O platform, integrating resources from hospitals, community clinics, and health management centers[35]. - The company plans to expand its clinical product offerings and healthcare management systems in the future[34]. - The company launched a series of remote medical products, including the Easy Remote Medical series, which received strong market feedback and is expected to become a new profit growth point[71]. Shareholder and Equity Management - The company has committed to not distributing cash dividends or issuing bonus shares, focusing on reinvestment for growth[16]. - The company is undergoing a share transfer process, with the controlling shareholder's stake being transferred to Shanghai Nanwan Information Technology Co., Ltd., which may affect control dynamics[14]. - The company is committed to maintaining stable control and has made assurances regarding the continuity of its main business operations following the share transfer[14]. Investment and Fundraising - The total amount of funds raised was CNY 390 million, with an actual amount of CNY 383.86 million after deducting issuance costs[62]. - Cumulative investment from the raised funds reached CNY 362.97 million, representing 93.06% of the total raised[63]. - The company plans to continue expanding its market presence through strategic investments and partnerships in the healthcare sector[60]. Compliance and Reporting - The financial report is prepared based on the going concern assumption, indicating no significant issues affecting the company's ability to continue operations[156]. - The accounting policies comply with the enterprise accounting standards, ensuring the financial statements reflect a true and fair view of the company's financial position[158]. - The company is committed to timely information disclosure as per regulatory requirements[105].

Financial Performance - Total revenue for Q1 2018 was ¥95,698,962.45, representing a 10.61% increase compared to ¥86,521,659.77 in the same period last year[9] - Net profit attributable to shareholders was ¥5,474,460.31, a significant increase of 52.33% from ¥3,593,709.79 year-over-year[9] - Basic earnings per share rose to ¥0.0170, reflecting a 51.79% increase compared to ¥0.0112 in the same period last year[9] - The company reported a total comprehensive income of ¥5,068,622.43, up from ¥3,500,432.62 in the previous period, reflecting a growth of 44.8%[63] - Net profit for the current period was ¥5,468,549.56, compared to ¥3,558,980.35 in the previous period, representing a year-over-year increase of 53.7%[62] Cash Flow Management - The net cash flow from operating activities improved to -¥47,202,574.62, a 56.37% improvement from -¥108,188,240.59 in the previous year[9] - Cash flow from operating activities showed a net outflow of ¥47,202,574.62, an improvement from a net outflow of ¥108,188,240.59 in the previous period[69] - The company experienced a net cash decrease of 42,155,149.59 during the quarter, compared to a decrease of 122,259,576.29 in the previous period, showing an improvement in cash management[73] - The total cash inflow from operating activities was 92,248,885.55, an increase from 62,321,887.78 in the previous period, indicating improved operational performance[72] Asset Management - The total assets at the end of the reporting period were ¥1,020,462,335.45, a decrease of 3.22% from ¥1,054,438,182.89 at the end of the previous year[9] - The company reported a decrease in asset impairment losses to -¥459,006.68 from ¥1,995,074.17, indicating improved asset management[62] - Total current assets decreased from 694,829,171.04 to 651,387,298.53, a decline of approximately 6.2%[54] - Total non-current assets rose from 359,609,011.85 to 369,075,036.92, an increase of about 2.9%[55] Investment Activities - Cash flow from investing activities decreased by 68.92%, mainly due to reduced cash payments for acquiring subsidiaries and other business units[25] - The company reported cash outflows from investment activities totaling 30,515,402.17, a decrease from 53,613,671.79 in the previous period, indicating reduced investment spending[73] - The company completed the R&D center and office building project with a total investment of 7,000,000 CNY, and the actual investment was 6,910,410 CNY, achieving 98.72% of the planned investment[46] Strategic Acquisitions - The company completed the acquisition of Beijing Shenzhou Shihan Technology Co., Ltd., enhancing its competitive position in the medical information sector[16] - The acquisition of Shenzhou Shihan has been completed, with the company now holding 100% equity in the subsidiary[30] - The company is in the process of acquiring a 100% stake in a medical information technology company, with the transaction still in the planning and verification stage[31] Shareholder Commitments - The controlling shareholders pledged not to reduce their holdings in the company, except for a planned transfer of no more than 2% of shares to an employee stock ownership plan[39] - The controlling shareholders reaffirmed their agreement to act in concert regarding major operational decisions, ensuring unified voting at shareholder meetings[41] - The company has committed to a lock-up period of 36 months for the newly issued shares following their listing[36] Regulatory Compliance - The company has committed to disclose the major asset restructuring plan or report by May 5, 2018, as per regulatory requirements[32] - The company guarantees compliance with all relevant regulations and will not engage in any related party transactions that could harm shareholder interests[38] - The company has committed to maintaining compliance with relevant regulations during the stock issuance process[40] Revenue Growth Strategies - The company is focusing on differentiated innovation in product technology to enhance competitiveness amid increasing market competition[12] - The company plans to expand its product lines and improve cash flow management to mitigate seasonal revenue fluctuations[13] - The company actively pursued new business areas and strategic transformation, contributing to the growth in main business revenue[26]

Acquisitions and Investments - The company completed the acquisition of Beijing Shenzhou Shihan Technology Co., Ltd., enhancing its position in the medical information technology sector[10]. - The acquisition of Shenzhou Shihan is expected to create synergies in technology, funding, and market expansion, potentially improving profitability[10]. - The company acquired the remaining 49% stake in Shanghai Mijian and approved the acquisition of 100% stake in Shenzhou Shihan, enhancing its medical information industry chain[50]. - The company successfully acquired the remaining 49% stake in Shanghai Mijian, making it a wholly-owned subsidiary, which enhances its position in the medical clinical information sector[62]. - The company invested in Shanghai Jinchang Information Technology Co., Ltd. through an industrial fund, expanding its investment portfolio[50]. Financial Performance - The company's operating revenue for 2017 was ¥418,657,673.48, a decrease of 16.70% compared to ¥502,607,273.30 in 2016[24]. - The net profit attributable to shareholders for 2017 was ¥18,820,057.94, down 41.91% from ¥32,397,475.63 in 2016[24]. - The net cash flow from operating activities decreased by 62.15% to ¥18,674,876.00 in 2017 from ¥49,336,256.58 in 2016[24]. - The total assets at the end of 2017 were ¥1,054,438,182.89, a decline of 5.18% from ¥1,112,066,010.96 at the end of 2016[24]. - The net assets attributable to shareholders decreased by 19.55% to ¥709,654,901.21 at the end of 2017 from ¥882,124,184.49 at the end of 2016[24]. - The basic earnings per share for 2017 was ¥0.0586, a decrease of 41.87% compared to ¥0.1008 in 2016[24]. - The company reported a net cash flow from operating activities of ¥18,674,876 in 2017, a decrease of 62.15% compared to ¥49,336,256.58 in 2016[83]. Market Position and Strategy - The company is focusing on the smart healthcare and health data sectors, with a strategic emphasis on clinical medical information and health big data[33]. - The company has established a differentiated strategic positioning in the healthcare data market, considering various factors such as market potential and competition[33]. - The healthcare information technology market in China is projected to reach RMB 44.8 billion in 2017, with a compound annual growth rate (CAGR) of approximately 17.81% expected from 2017 to 2021, reaching RMB 86.3 billion by 2021[38]. - The company has become a leading provider of medical information technology products in China, with a comprehensive range of offerings and a significant market presence, including over 100 new hospital clients added during the reporting period[38]. - The company is focusing on expanding its market share through the development of new features in its anesthesia information system[81]. Risk Management and Challenges - The company faces risks related to market competition, emphasizing the need for technological innovation and new service models to maintain competitiveness[5]. - The company acknowledges the risk of goodwill impairment from the acquisition if the economic environment or competitive landscape deteriorates[10]. - The company is experiencing seasonal revenue fluctuations, with significant income generated in the fourth quarter, leading to cash flow risks[6]. - The company is increasing its investment in talent retention strategies to mitigate the risk of losing high-quality personnel due to industry competition[8]. - The company is focusing on improving accounts receivable management to enhance cash flow efficiency amid growing sales[9]. Research and Development - Research and development investment increased by 5.56% to ¥36,892,569.05 in 2017, indicating a commitment to innovation[65]. - The number of R&D personnel increased to 214 in 2017, accounting for 41.63% of the total workforce, slightly down from 42.25% in 2016[82]. - The company registered 35 new software copyrights during the reporting period, indicating a strong focus on innovation and intellectual property[44]. - The company is committed to leveraging advanced technologies like cloud computing and big data to drive innovation and meet evolving customer needs[39]. - The company is focusing on developing an O2O health management platform that integrates various healthcare resources, aiming to enhance service delivery at the grassroots level[35]. Operational Efficiency - The company plans to integrate its business systems and resources post-acquisition to achieve operational efficiencies and enhance competitive advantages[13]. - The company continues to improve its operational strategies across various aspects, including customer relations, talent management, and risk control[50]. - The company has completed the upgrade of its nursing product line, which now includes management and clinical components, with initial success in big data analysis[80]. - The company launched a new mobile ERP app to enhance operational efficiency and user monitoring capabilities[81]. - The company has implemented an employee stock ownership plan with a total funding not exceeding RMB 60 million, allowing for the purchase of up to 3.78 million shares[144]. Corporate Governance and Compliance - The company has a structured approach to governance, ensuring that remuneration policies are transparent and aligned with performance[196]. - The company has established a plan for employee stock ownership, ensuring that employees are included in the subscription of the new shares[128]. - The controlling shareholders pledged not to transfer or manage their shares for 36 months following the public offering, with annual transfer limits set at 25% of their total holdings during their tenure[128]. - The company has confirmed that all intellectual property rights related to its business operations are clear and free from disputes[128]. - The company has not faced any penalties from securities regulatory agencies for directors, supervisors, and senior management in the past three years[195].

Financial Performance - Operating revenue for the period was CNY 80,600,216.21, a decline of 19.61% year-on-year[7] - Net profit attributable to shareholders was a loss of CNY 4,597,306.46, a decrease of 198.43% compared to the same period last year[7] - Basic earnings per share were -CNY 0.0143, down 198.62% year-on-year[7] - The weighted average return on net assets was -0.65%, a decrease of 1.19 percentage points[7] - Total operating revenue for the current period was ¥80,600,216.21, a decrease of 19.6% from ¥100,267,462.58 in the previous period[42] - Net profit for the current period was a loss of ¥4,609,196.18, compared to a profit of ¥11,630,584.99 in the previous period, reflecting a significant decline in profitability[43] - Total operating revenue for the current period was ¥253,844,053.36, a decrease of 20.2% compared to ¥318,277,605.89 in the previous period[49] - Net profit for the current period was ¥8,617,936.51, down 64.0% from ¥24,019,351.29 in the previous period[50] - Total comprehensive income for the current period was ¥8,114,859.37, compared to ¥24,384,001.29 in the previous period, a decrease of 66.7%[51] Asset and Liability Changes - Total assets decreased by 11.92% to CNY 979,479,731.79 compared to the end of the previous year[7] - Cash and cash equivalents decreased by 66.59% to ¥89,059,976.60 from ¥266,527,437.89, primarily due to increased payments for daily operations and equity transfer[15] - The total liabilities of the company rose to CNY 276,870,721.83 from CNY 207,708,010.02, showing an increase in financial obligations[35][37] - Current assets decreased to ¥553,237,044.12 from ¥712,633,309.23, primarily due to a reduction in cash and cash equivalents[39] - Total liabilities increased to ¥263,623,742.85 from ¥190,557,792.55, indicating a rise in the company's financial obligations[40] - The company's equity attributable to shareholders decreased to CNY 702,606,787.45 from CNY 882,124,184.49, reflecting a decline in shareholder value[37] Cash Flow and Financing Activities - The company reported a net cash flow from operating activities of -CNY 78,288,590.66, reflecting a 9.56% increase compared to the previous year[7] - Cash received from operating activities decreased by 34.84% to ¥10,185,099.17, mainly due to a reduction in government subsidies and receivables[20] - The company obtained loans amounting to ¥136,295,415.90, marking a 100% increase in cash received from borrowings[21] - The total cash outflow from financing activities was 201,799,662.68, significantly higher than 24,650,292.68 in the previous period, reflecting increased financing efforts[58] - The net cash flow from operating activities was -66,361,005.21, compared to -77,367,669.22 in the previous period, indicating an improvement of approximately 14.5%[60] - The cash inflow from operating activities totaled 256,831,705.47, slightly up from 249,416,089.71 in the previous period, showing a modest growth of about 1.7%[60] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 22,306[10] - The top two shareholders, Fu Yanjie and Cui Wantao, each held 25.89% of the shares, totaling 83,207,698 shares[10] - The company approved a shareholder return plan for 2017-2019, ensuring clear standards and mechanisms for dividends[27] - The company reported no overdue commitments from major shareholders or related parties during the reporting period[26] - There were no violations regarding external guarantees during the reporting period[28] - The company has no non-operating fund occupation by controlling shareholders or related parties[29] Operational Efficiency - Total operating costs decreased slightly to ¥86,216,203.10 from ¥87,702,024.59, with operating costs specifically down to ¥57,720,621.62 from ¥63,001,341.38, indicating improved cost management[42] - Sales expenses increased to ¥18,393,211.43 from ¥15,509,682.06, an increase of 18.5%[50] - Management expenses decreased to ¥53,491,373.78 from ¥55,183,817.60, a reduction of 3.1%[50] - Cash outflow for purchasing goods and services was 224,557,968.25, down from 241,542,642.69 in the previous period, indicating a reduction in operational costs[60] Investment and Other Income - Non-recurring gains and losses totaled CNY 315,216.08 for the year-to-date[8] - Other income reached ¥3,424,118.19, reflecting a 100% increase as government subsidies were reclassified under this item[18] - Investment income for the current period was recorded at ¥655.11, showing a positive contribution from investments despite overall losses[43] - The cash flow from investment activities included cash inflows of 2,910,814.10, a significant increase from 223,241.00 in the previous period[60]

Business Focus and Strategy - The company has focused its main business on smart healthcare and health data, aiming for a leading position in niche markets through differentiated innovation and service model exploration [4]. - The company is focusing on smart healthcare and health data as key development areas, with plans to expand into new clinical products and management systems [31]. - The company is leveraging cloud computing and big data technologies to provide integrated cloud solutions for key industries such as healthcare, education, and finance [32]. - The company plans to continue seeking synergistic acquisition targets both domestically and internationally to enhance its core value [42]. - The company is committed to strengthening its technical innovation capabilities, focusing on technologies such as big data and artificial intelligence [42]. - The company aims to improve customer satisfaction through a comprehensive customer feedback mechanism [41]. Financial Performance - Total revenue for the reporting period was ¥173,243,837.15, a decrease of 20.53% compared to ¥218,010,143.31 in the same period last year [23]. - Net profit attributable to shareholders increased by 19.46% to ¥16,229,665.11 from ¥13,585,416.37 year-on-year [23]. - Basic and diluted earnings per share rose by 19.39% to ¥0.0505 from ¥0.0423 in the previous year [24]. - Operating profit increased by 36.46% to ¥15,522,513.97, while total profit rose by 4.61% to ¥15,521,187.48 [40]. - The company achieved operating revenue of ¥173,243,837.15, a decrease of 20.53% compared to the same period last year [40]. - The company reported a net increase in cash and cash equivalents of $91.59 million, a 33.06% improvement from a decrease of $136.82 million in the previous year [45]. - The company reported a total of CNY 119,570,371.12 in fixed assets, which increased from CNY 72,832,025.22, reflecting a growth of about 64.1% [129]. - The company’s total comprehensive income for the period was CNY 27,658,602.97, reflecting a significant increase compared to previous periods [160]. Cash Flow and Assets - The company reported a significant seasonal revenue pattern, with most income generated in the fourth quarter, leading to cash flow volatility risks [5]. - The company has seen an increase in accounts receivable due to sales growth, with a focus on managing collections to enhance cash flow efficiency [9]. - Net cash flow from operating activities improved by 27.62%, reaching -¥57,285,875.09 compared to -¥79,149,460.73 in the same period last year [24]. - Total assets decreased by 6.89% to ¥1,035,407,933.64 from ¥1,112,066,010.96 at the end of the previous year [24]. - Current assets totaled CNY 693,197,276.14, down from CNY 785,140,591.73, indicating a decrease of about 11.7% [129]. - The company's cash and cash equivalents decreased to CNY 174,863,626.22 from CNY 266,527,437.89, representing a decline of approximately 34.4% [128]. Investments and Acquisitions - The company acquired 100% equity of Shanghai Mijian Information Technology Co., Ltd., aiming to leverage synergies while managing integration risks [10]. - The company completed the acquisition of the remaining 49% equity in Shanghai Meehealth, enhancing its market position [42]. - The company acquired a 49% stake in Shanghai Mijian for $201.88 million, indicating a strategic move for market expansion [56]. - The company has committed investment projects totaling CNY 39,000 million, with actual cumulative investment of CNY 38,385.76 million, achieving 98.43% of the planned investment [62]. Risk Management and Compliance - The company emphasized the importance of risk management and established a proactive risk management culture [43]. - The company has assessed its ability to continue as a going concern for the next 12 months, finding no issues that would affect its operations [164]. - The company’s financial statements reflect a commitment to transparency and compliance with accounting standards, providing a true and fair view of its financial position [166]. Shareholder and Dividend Policies - The company will not distribute cash dividends or issue bonus shares, focusing on reinvestment strategies [11]. - The company has a profit distribution plan that states cash dividends should not be less than 20% of the distributable profit in the case of annual profitability and positive retained earnings [78]. - The company has outlined conditions under which stock dividends may be issued, contingent on ensuring sufficient cash dividend distribution [78]. - The company has a three-year shareholder return plan that includes potential mid-term profit distributions based on actual operating conditions [78]. Corporate Governance - The controlling shareholders, Fu Yanjie and Cui Wantao, have committed to avoiding any competition with the company and not engaging in similar business activities [79]. - Fu Yanjie and Cui Wantao have agreed to a joint action agreement to maintain consistent decision-making in the company's management since its establishment [79]. - The company has not reported any inconsistencies in voting results during shareholder meetings since its establishment [79]. - The company has not conducted any major litigation or arbitration matters during the reporting period [83]. Financial Reporting and Accounting Policies - The semi-annual financial report has not been audited [81]. - The company has maintained its accounting policies in accordance with enterprise accounting standards, ensuring the accuracy of its financial reporting [166]. - The company will not adjust the initial figures of the consolidated balance sheet when disposing of subsidiaries or businesses [176]. - The company will ensure that the consolidated financial statements reflect the current status of all parties involved from the point of ultimate control [182].