任子行网络技术股份有限公司 2015 年第三季度报告全文 任子行网络技术股份有限公司 2015 年第三季度报告 2015 年 10 月 1 任子行网络技术股份有限公司 2015 年第三季度报告全文 第一节 重要提示 本公司董事会、监事会及其董事、监事、高级管理人员保证本报告所载资料不存在任何虚假记载、误 导性陈述或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 除下列董事外，其他董事亲自出席了审议本次季报的董事会会议 | 未亲自出席董事姓名 | 未亲自出席董事职务 | 未亲自出席会议原因 | 被委托人姓名 | | --- | --- | --- | --- | | 景晓军 | 董事长 | 出差 | 景晓东 | 公司负责人景晓军、主管会计工作负责人孙文杰及会计机构负责人(会计主管人员)李艺声明：保证季 度报告中财务报告的真实、完整。 2 任子行网络技术股份有限公司 2015 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 公司是否因会计政策变更及会计差错更正等追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增 ...

Financial Performance - Total revenue for the first half of 2015 was CNY 119,985,219.55, representing a 27.83% increase compared to CNY 93,860,207.76 in the same period last year[17]. - Net profit attributable to ordinary shareholders was CNY 13,395,301.69, up 10.01% from CNY 12,176,370.98 year-on-year[17]. - Basic earnings per share increased by 10.36% to CNY 0.0575 from CNY 0.0521 in the same period last year[17]. - Operating profit decreased by 22.43% to CNY 5.65 million year-on-year[26]. - The net profit after deducting non-recurring gains and losses was CNY 8,309,945.74, down 7.73% from CNY 9,006,317.93 in the same period last year[17]. - The company reported a total profit of CNY 14,254,806.47, which is an increase from CNY 12,177,347.05, reflecting a growth of 17.1%[110]. - The company reported a net loss attributable to shareholders of 6,230,600.00 CNY for the period[126]. - The total comprehensive income for the period was 12,056,301.70 CNY, a decrease of 1,338,636.00 CNY compared to the previous period[124]. Cash Flow and Liquidity - Net cash flow from operating activities was negative CNY 34,597,019.95, a decline of 215.03% compared to negative CNY 10,982,019.49 in the previous year[17]. - The company generated CNY 95,911,016.24 in cash from operating activities, compared to CNY 105,366,231.44 in the previous period, a decrease of 8.7%[115]. - The ending balance of cash and cash equivalents decreased to 95,974,033.20 CNY from 203,623,254.19 CNY, reflecting a significant reduction in liquidity[121]. - The company experienced a net decrease in cash and cash equivalents of -99,844,423.87 CNY during the period, compared to -83,949,583.13 CNY in the previous period[121]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 678,659,041.18, an increase of 8.05% from CNY 628,105,029.18 at the end of the previous year[17]. - Total liabilities rose to CNY 217,587,560.21 from CNY 177,168,789.13, representing a growth of 22.8%[102]. - Owner's equity increased to CNY 461,071,480.97 from CNY 450,936,240.05, showing a rise of 2.5%[103]. - The company reported a decrease in employee compensation payable from CNY 12,226,482.68 to CNY 6,315,019.85, a reduction of 48.3%[102]. Investments and Acquisitions - The company completed the acquisition of 51% of Beijing Yahon's shares, enhancing its competitive advantage in the network security business[35]. - The company invested RMB 4.5 million of the raised funds during the reporting period, with a cumulative investment of RMB 211.87 million[39]. - The company acquired 51% equity in Beijing Yahon Technology Development Co., Ltd. for 15 million RMB, which will enhance its market competitiveness[57]. Research and Development - Research and development expenses amounted to CNY 9.22 million, a decrease of 37.98% from the previous year due to personnel costs being included in operating costs[27]. - The company has achieved 100.02% progress on the network content and behavior auditing product upgrade project, with an investment of RMB 7.53 million[42]. - The R&D center expansion project is at 97.59% completion, with an investment of RMB 3.22 million[42]. Shareholder Information - The total number of shares increased from 116,411,549 to 232,823,098 after the 2014 annual equity distribution plan, which included a cash dividend of RMB 0.55 per 10 shares and a capital reserve conversion of 10 shares for every 10 shares held[83]. - The largest shareholder, Jing Xiaojun, holds 51.94% of the shares, amounting to 60,460,800 shares[89]. - The company has not proposed any cash dividend distribution plan for the half-year period[53]. Corporate Governance and Compliance - The company has not engaged in any major non-fundraising investment projects during the reporting period[46]. - The company has implemented measures to prevent related party transactions and ensure independent operations in business, assets, personnel, and finance[76]. - The half-year financial report for 2015 has not been audited[77]. Market Strategy and Future Outlook - The company plans to continue its strategy of balancing organic growth with external investments to enhance its core competitiveness[35]. - The company plans to expand its market presence and invest in new technology development in the upcoming quarters[126]. - The company aims to enhance its product offerings and explore potential mergers and acquisitions to drive growth[126].

Financial Performance - Total revenue for Q1 2015 was ¥53,450,300.13, representing a 30.78% increase compared to ¥40,871,615.20 in the same period last year[8] - Net profit attributable to ordinary shareholders was ¥4,053,583.97, an increase of 18.82% from ¥3,411,441.90 year-on-year[8] - Basic earnings per share increased by 50.00% to ¥0.03 from ¥0.02 in the same period last year[8] - The company's operating revenue for the period was CNY 53.45 million, a year-on-year increase of 30.78%, driven by increased sales[18] - The company's net profit attributable to shareholders was CNY 4.05 million, a year-on-year increase of 18.82%[18] - The net profit for Q1 2015 was CNY 3,911,073.00, compared to CNY 2,795,396.36 in the same period last year, representing a growth of 39.9%[41] - The profit attributable to the parent company's shareholders was CNY 4,053,583.97, an increase from CNY 3,411,441.90, indicating a year-over-year growth of 18.8%[41] Cash Flow - Net cash flow from operating activities was -¥30,292,767.41, worsening by 51.01% compared to -¥20,060,301.49 in the previous year[8] - Operating cash inflow totaled ¥34,783,018.59, slightly down from ¥35,017,832.59 in the previous period[48] - The company reported a net cash flow from operating activities of -¥30,558,543.32, worsening from -¥20,604,097.43 in the prior year[52] - Cash and cash equivalents decreased by ¥38,899,641.86 compared to a decrease of ¥65,480,230.70 in the previous period[50] Assets and Liabilities - Total assets at the end of the reporting period were ¥652,492,023.07, a 3.88% increase from ¥628,105,029.18 at the end of the previous year[8] - Total current assets increased to 413,312,795.67 yuan from 404,147,503.75 yuan, a growth of approximately 2.88%[32] - Total liabilities increased to 198,041,174.40 yuan from 177,168,789.13 yuan, an increase of about 11.73%[34] - The total liabilities as of the end of Q1 2015 were CNY 164,610,386.69, compared to CNY 162,107,592.15 at the end of the previous period[41] - Total equity increased to CNY 453,055,502.01 from CNY 451,591,638.34, showing a slight growth in shareholder equity[41] Operational Performance - The company's operating costs increased by CNY 17,697,010.85, an increase of 119.34%, mainly due to increased revenue and rising R&D labor costs[17] - Operating profit for Q1 2015 was a loss of CNY 1,845,274.17, compared to a loss of CNY 241,897.57 in the previous period, indicating a worsening operational performance[41] - The company reported a significant increase in sales expenses, totaling CNY 6,788,752.56, compared to CNY 7,085,888.36 in the previous period[41] Investments and Projects - The total amount of funds raised by the company was RMB 231.08 million, with an excess of RMB 66.24 million raised[25] - The company invested RMB 288.62 million in the current quarter, with a cumulative investment of RMB 210.25 million[24] - The project "Network Content and Behavior Audit Product Upgrade Optimization" has achieved a completion rate of 97.88% with an investment of RMB 7.37 million[24] - The "Network Information Security Supervision Platform Construction" project has a completion rate of 99.98% with an investment of RMB 5.65 million[24] - The "R&D Center Expansion" project has a completion rate of 97.59% with an investment of RMB 3.22 million[24] Shareholder Information - The company’s major shareholder, Jing Xiaojun, holds 51.94% of the shares, with 60,460,800 shares pledged[13] - The company has not conducted any repurchase transactions among its top shareholders during the reporting period[14] - Cash dividends policy remained unchanged compared to 2014, in compliance with the company's articles of association[28] Risks and Concerns - The company is facing risks related to the suspension of the acquisition of Tangren Digital's 100% equity, including administrative approval and asset valuation risks[11] - The first quarter report was not audited, indicating a potential area of concern for investors[54]

Financial Performance - The company's operating revenue for 2014 was CNY 296,780,115.60, representing a 20.94% increase compared to CNY 245,386,180.86 in 2013[18]. - Operating profit surged to CNY 31,001,153.13, a remarkable increase of 153.56% from CNY 12,226,164.29 in the previous year[18]. - The net profit attributable to shareholders reached CNY 41,356,224.36, marking a 64.50% growth from CNY 25,140,974.57 in 2013[18]. - The total assets of the company at the end of 2014 amounted to CNY 628,105,029.18, a 14.86% increase from CNY 546,858,985.47 in 2013[18]. - The company's total liabilities increased by 36.36% to CNY 177,168,789.13 from CNY 129,930,776.64 in the previous year[18]. - The basic earnings per share rose to CNY 0.37, reflecting a 60.87% increase compared to CNY 0.23 in 2013[18]. - The weighted average return on equity improved to 9.47%, up from 6.09% in the previous year[18]. - The company's cash flow from operating activities decreased by 12.61% to CNY 31,302,727.51 from CNY 35,821,429.72 in 2013[18]. - The total share capital increased by 64.66% to 116,411,549 shares at the end of 2014, compared to 70,700,000 shares in 2013[18]. Research and Development - Research and development investment amounted to 29.93 million, accounting for 10.08% of operating revenue[32]. - The company obtained 1 software copyright, 1 software product registration certificate, and 2 invention patents during the reporting period[32]. - The company has a strong R&D capability, which provides a competitive advantage in responding to new industry user demands[94]. - The company will continue to increase investment in R&D innovation, focusing on productization and solution development to enhance core competitiveness[96]. Market Position and Strategy - The company aims to strengthen its market position in internet security management and expand into public internet access venues like hotels and clubs[46]. - The company plans to leverage partnerships to build an industry alliance ecosystem, aiming for scalable and sustainable business growth[65]. - The company aims to maintain stable growth in its main business revenue while enhancing its core competitiveness in the information security sector[94]. - The company plans to enhance its market presence by focusing on network security auditing, products, and IDC supervision, aiming to increase brand awareness and market share[94]. Financial Management and Profit Distribution - The company implemented a stable profit distribution policy, ensuring cash dividends are at least 20% of the distributable profit when net profit is positive[117]. - The total cash dividend for the reporting period amounted to ¥6,402,635.20, representing 100% of the profit distribution[123]. - The proposed profit distribution plan for 2014 includes a cash dividend of CNY 0.55 per 10 shares and a capital reserve conversion of 10 shares for every 10 shares held, increasing total shares from 116,411,549 to 232,823,098[126]. - The cash dividend payout ratio for 2014 is 15.48% of the net profit attributable to shareholders, compared to 28.12% in 2013 and 19.94% in 2012[130]. Risks and Challenges - The company continues to face management risks due to its expanding scale and complexity[21]. - The company acknowledges risks related to technological advancements and innovation, particularly in adapting to new IT environments and user data growth[101]. - The company is aware of market risks stemming from intensified competition in the information security sector from non-traditional security vendors[102]. - The company recognizes the need to optimize its talent structure and enhance employee retention strategies to support rapid growth[104]. Corporate Governance - The company maintained a standard unqualified audit opinion for its financial statements for the year ended December 31, 2014[184]. - The company has established a mechanism for accountability regarding significant errors in annual report disclosures, which was effectively executed during the reporting period[180]. - The company’s governance structure complies with relevant laws and regulations, with no reported violations[176]. - The company held its annual general meeting on May 13, 2014, and two extraordinary general meetings on August 18 and September 19, 2014[177]. Employee and Management Information - As of December 31, 2014, the company had 614 employees, with 39.25% being research and technical personnel[174]. - The employee education level shows that 52.28% hold a bachelor's degree, while 6.19% hold a master's or doctoral degree[174]. - 65.80% of employees are under the age of 30, indicating a young workforce[174]. - The total remuneration paid to the current and former directors, supervisors, and senior management during the reporting period amounted to approximately CNY 2.754 million[172].

Financial Performance - Total revenue for the reporting period was CNY 73,646,512.47, representing a 37.60% increase year-on-year[6] - Net profit attributable to shareholders increased by 55.68% to CNY 13,286,280.99 for the reporting period[6] - Basic earnings per share rose by 50.00% to CNY 0.12, while diluted earnings per share also increased by 50.00% to CNY 0.12[6] - The weighted average return on equity was 3.09%, up by 1.00% compared to the previous year[6] - The net cash flow from operating activities increased by 431.84% to CNY 14,061,056.02 year-to-date[6] - Revenue for the first three quarters of 2014 reached ¥167,506,700, representing a year-on-year growth of 17.44%[21] - Net profit attributable to shareholders for the same period was ¥25,462,700, reflecting a year-on-year increase of 56.07%[21] - Total operating revenue for the period reached ¥73,646,512.47, an increase from ¥53,522,709.41 in the previous period[46] - Net profit for the period was ¥13,134,221.48, compared to ¥7,842,817.93 in the same period last year, reflecting a significant growth[47] - Total operating revenue for the current period is 167,506,720.23, an increase from 142,627,271.69 in the previous period, representing a growth of approximately 17.4%[51] - Net profit for the current period is 24,463,274.66, compared to 14,107,123.08 in the previous period, showing an increase of around 73.2%[52] Assets and Liabilities - Total assets increased by 5.27% to CNY 575,693,049.49 compared to the end of the previous year[6] - The total amount of raised funds is CNY 23,108 million, with CNY 489.93 million invested in the current quarter[27] - The company's total liabilities decreased from CNY 129,930,776.64 to CNY 110,443,611.85 during the reporting period[41] - The company's cash and cash equivalents decreased from CNY 329,279,776.56 to CNY 294,549,838.68[39] - The company's retained earnings increased from CNY 106,375,415.48 to CNY 124,768,067.45, reflecting a positive profit retention strategy[41] - The company’s total equity rose from CNY 416,928,208.83 to CNY 465,249,437.64, indicating improved financial health[41] Investments and Expenditures - The company has invested RMB 41.78 million in office property to support its operations in the Central China region[28] - The company has completed the capital increase of RMB 5 million in Zhongtian Xinan Technology Co., holding a 20% equity stake[28] - The company has made prior investments totaling RMB 53.81 million in fundraising projects, which have been verified and approved by the board[29] - The network content and behavior audit product upgrade project has a total investment of CNY 7,532.45 million, with 89.42% of the investment completed[27] - The network information security supervision platform construction project has a total investment of CNY 5,652.47 million, with 99.97% of the investment completed[27] - The R&D center expansion project has a total investment of CNY 3,299.55 million, with 97.59% of the investment completed[27] Shareholder Information - The total number of shareholders at the end of the reporting period was 11,767[11] - Major shareholder Jing Xiaojun holds 53.45% of the shares, with 60,460,800 shares pledged[12] Cash Flow - Cash flow from operating activities for the current period is 14,061,056.02, a significant increase from 2,643,872.95 in the previous period[58] - Operating cash flow net amount for the third quarter was ¥6,263,487.34, compared to a loss of ¥757,994.74 in the same period last year, indicating a significant improvement[61] - Total cash inflow from operating activities was ¥145,172,510.05, down 21.7% from ¥185,410,489.44 year-on-year[61] - The ending cash and cash equivalents balance was ¥294,549,838.68, down from ¥328,034,949.52 at the beginning of the period[59] Risks and Compliance - The company faces risks related to major asset restructuring and human resources, particularly in attracting and retaining skilled personnel[9] - The company strictly adheres to commitments regarding stock transfer and management during the specified periods[24] - The company has complied with commitments related to not engaging in competitive businesses during the control period[24] - The company has maintained compliance with stock transfer restrictions post-IPO for specified durations[25] - The company has reported no significant changes in the feasibility of the investment projects[27] Dividend Policy - The company has implemented a cash dividend policy, ensuring that cash dividends will not be less than 20% of the distributable profits for the year[32] - The company is subject to a cash dividend policy that may be adjusted if significant capital expenditures are planned within the next twelve months[32] - The company has a differentiated cash dividend policy, requiring a minimum cash dividend proportion of 80% for mature stages without major capital expenditures, 40% with major expenditures, and 20% for growth stages with major expenditures[33] - The board must propose a profit distribution plan annually, considering industry characteristics, development stage, operating model, profitability, and major capital expenditure arrangements[33]

Financial Performance - Total operating revenue for the first half of 2014 was CNY 93,860,207.76, representing a 5.34% increase compared to CNY 89,104,562.28 in the same period last year[16]. - Net profit attributable to ordinary shareholders was CNY 12,176,370.98, a significant increase of 56.51% from CNY 7,780,149.97 year-on-year[16]. - The net profit after deducting non-recurring gains and losses reached CNY 9,006,317.93, up 81.49% from CNY 4,962,345.99 in the previous year[16]. - Basic earnings per share increased to CNY 0.11, reflecting a 57.14% rise from CNY 0.07 in the same period last year[16]. - The operating profit for the same period was CNY 7.29 million, representing an 80.85% increase compared to the previous year[23]. - The company's operating costs decreased by 12.08% to CNY 30.30 million compared to the previous year[24]. - The company reported a net profit of ¥12,176,300.00 for the current period, contributing to a total equity of ¥421,187,260.00[95]. Cash Flow and Assets - The net cash flow from operating activities improved to -CNY 10,982,019.49, a 42.14% reduction in losses compared to -CNY 18,981,008.78 last year[16]. - The cash flow from operating activities improved, with a net cash outflow of CNY 10.98 million, compared to CNY 18.98 million in the previous year[24]. - Cash and cash equivalents at the end of the period totaled ¥244,833,281.37, down from ¥294,369,247.69, a decrease of 17%[89]. - The company's cash and cash equivalents decreased from ¥329,279,776.56 to ¥244,833,281.37, a decline of approximately 25.6%[74]. - Total current assets decreased from ¥420,636,704.46 to ¥390,390,522.08, a reduction of about 7.2%[74]. - Total assets at the end of the reporting period were CNY 519,747,739.09, down 4.96% from CNY 546,858,985.47 at the end of the previous year[16]. Investments and Dividends - The company plans not to distribute cash dividends or issue bonus shares for this period[5]. - The company plans to distribute a cash dividend of RMB 1.00 per share, totaling RMB 7,070,000, based on a total share capital of 70,700,000 shares[44]. - The company reported a significant increase in investment activities, with cash outflow from investment activities rising by 2,734.89% to CNY 64.93 million[24]. - The company has completed an investment of RMB 500 million in Chuangzi Network Technology (Shanghai) Co., Ltd., acquiring a 15% equity stake[49]. Shareholder Information - The total number of shares before the change was 70.7 million, with 50 million shares (70.72%) being restricted shares[59]. - The company's total share capital increased from 70.7 million shares to 113.12 million shares after the 2013 annual equity distribution[60]. - The largest shareholder, Jing Xiaojun, holds 53.45% of the shares, totaling 60,460,800 shares[62]. - The total number of shareholders at the end of the reporting period was 8,924[62]. Management and Strategy - The company is currently undergoing a major asset restructuring, which is still subject to uncertainties[20]. - There is a risk of talent shortages in key areas such as management and technical development, which could impact the company's growth[20]. - The company anticipates that increased depreciation and amortization expenses from new projects may affect future operating results if the projects do not generate expected benefits[20]. - The company appointed a new vice president and board secretary on March 17, 2014, indicating potential changes in management strategy[69]. Regulatory and Compliance - The financial report indicates a strategic emphasis on compliance with legal and regulatory requirements, which is crucial for operational sustainability[185]. - The company is subject to regulatory approvals for certain projects, which may impact future operations and expansions[184]. Accounting Policies - The company has not changed its accounting policies or estimates during the reporting period[171]. - The company recognizes financial asset transfers when almost all risks and rewards of ownership are transferred or control is relinquished, leading to derecognition of the asset[121]. - The company follows the equity method for accounting for subsidiaries and adjusts the financial statements based on the fair value of identifiable assets and liabilities at the acquisition date[113]. Future Outlook - The rapid development of information technology and increasing security threats are expected to drive future growth in the company's market, particularly in mobile internet security[32]. - The company is committed to expanding its market presence through technology development and service integration[179].

Financial Performance - Total revenue for Q1 2014 was CNY 40,871,615.20, an increase of 28.22% compared to CNY 31,875,459.50 in the same period last year[8] - Net profit attributable to ordinary shareholders was CNY 3,411,441.90, reflecting an 18.48% increase from CNY 2,879,365.98 year-over-year[8] - Basic earnings per share increased by 25% to CNY 0.05 from CNY 0.04 in the same period last year[8] - The company's main business revenue reached 40.87 million yuan, an increase of 28.22% year-on-year[17] - The net profit attributable to the parent company was 3.41 million yuan, reflecting a year-on-year growth of 18.48%[17] - Net profit for Q1 2014 reached CNY 2,795,396.36, compared to CNY 2,275,722.02 in the previous year, marking a growth of 22.9%[38] - Earnings per share for Q1 2014 were CNY 0.05, up from CNY 0.04 in the same quarter last year[38] Cash Flow and Liquidity - The net cash flow from operating activities was negative CNY 20,060,301.49, a decline of 71.78% compared to negative CNY 11,677,291.76 in the previous year[8] - The company reported a decrease in cash flow per share from operating activities to CNY -0.2837, a decline of 71.73% compared to CNY -0.1652 in the previous year[8] - Cash and cash equivalents at the end of the period amounted to RMB 262,554,718.82, down from RMB 329,279,776.56 at the beginning of the period[29] - Cash inflow from operating activities totaled 35,017,832.59 CNY, significantly lower than 58,813,067.58 CNY in the prior year, marking a decline of approximately 40.5%[44] - Cash outflow for operating activities was 55,078,134.08 CNY, compared to 70,490,359.34 CNY in the previous year, a reduction of about 21.8%[44] - Total cash and cash equivalents at the end of the period were 262,554,718.82 CNY, down from 311,993,329.71 CNY, indicating a decrease of about 15.8%[45] Assets and Liabilities - Total assets at the end of the reporting period were CNY 531,371,819.25, down 2.83% from CNY 546,858,985.47 at the end of the previous year[8] - Total assets as of Q1 2014 amounted to CNY 539,685,933.26, a slight decrease from CNY 551,267,511.91 at the end of the previous year[35] - Total liabilities for Q1 2014 were CNY 111,134,677.56, down from CNY 127,224,855.93, indicating a reduction of 12.6%[35] - Total liabilities include accounts payable of RMB 15,381,048.88, down from RMB 19,610,997.57 at the beginning of the period[30] Shareholder Information - The total number of shareholders at the end of the reporting period was 9,396[11] - The largest shareholder, Jing Xiaojun, holds 53.45% of the shares, totaling 37,788,000 shares[11] - Shareholders' equity totaled CNY 428,551,255.70 in Q1 2014, compared to CNY 424,042,655.98 in the previous year, showing a marginal increase[35] Operating Costs and Expenses - Operating costs increased by 3.52 million yuan, a rise of 31.09%, primarily due to the increase in main business income[16] - Management expenses rose by 5.37 million yuan, an increase of 36.29%, driven by talent acquisition and R&D investments[16] - Financial expenses increased by 727,754.62 yuan, indicating significant changes due to interest income received[16] Government Support and Investments - The company received government subsidies amounting to CNY 2,658,400.00 during the reporting period[9] - The total amount of funds raised in this quarter is RMB 23,108 million, with an excess fundraising amount of RMB 6,623.53 million[23] - Cumulative investment in fundraising projects reached RMB 18,629.05 million, with a cumulative change in use of funds ratio of 0%[23] - The network content and behavior audit product upgrade project has a total investment of RMB 7,532.45 million, with 79.78% of the investment completed[23] - The network information security regulatory platform construction project has a total investment of RMB 5,652.47 million, with 90.2% of the investment completed[23] - The R&D center expansion project has a total investment of RMB 3,299.55 million, with 87.09% of the investment completed[23] Other Information - The company is executing its annual business plan in an orderly manner across R&D, management, market expansion, and sales[17] - There were no significant changes in the company's core technology team or key technical personnel during the reporting period[17] - The company has approved the use of RMB 5,000 million of excess funds to purchase office space in Wuhan, with RMB 4,148.09 million already paid[24] - The company’s cash dividend policy remains unchanged compared to the 2013 fiscal year[25] - The company did not conduct an audit for the first quarter report[49]

Financial Performance - The company's operating revenue for 2013 was ¥245,386,180.86, representing a 27.16% increase compared to ¥192,974,175.08 in 2012[19]. - Operating costs increased by 42.79% to ¥119,905,374.33 in 2013 from ¥83,974,440.74 in 2012[19]. - Operating profit decreased by 48.61% to ¥12,226,164.29 in 2013, down from ¥23,788,673.48 in 2012[19]. - Total profit for 2013 was ¥25,717,324.35, a decline of 36.44% from ¥40,460,186.22 in 2012[19]. - Net profit attributable to ordinary shareholders was ¥25,140,974.57, down 35.55% from ¥39,007,060.36 in 2012[19]. - Basic earnings per share fell by 40% to ¥0.36 in 2013, compared to ¥0.60 in 2012[19]. - The net cash flow from operating activities decreased by 52.36% to ¥35,821,429.72 in 2013 from ¥75,195,020.28 in 2012[19]. - The total assets at the end of 2013 were ¥546,858,985.47, a 2.07% increase from ¥535,744,611.99 at the end of 2012[19]. - The total liabilities at the end of 2013 were ¥129,930,776.64, a slight increase of 0.71% from ¥129,012,545.34 in 2012[19]. - The asset-liability ratio was 23.76% at the end of 2013, a decrease from 24.08% at the end of 2012[19]. Research and Development - Research and development expenses reached 37.31 million yuan, accounting for 15.21% of total operating revenue, an increase of 3.53% from 2012[28]. - The company added 1 authorized invention patent and applied for 5 new invention patents during the reporting period, along with 28 new software copyrights[28]. - The company is currently developing three major R&D projects, including upgrades to its core network content auditing products and a multimedia network public opinion analysis platform[34]. - The company reduced its investment activity cash outflow by 53.40% year-on-year, focusing more on R&D personnel investment[35]. Market and Growth Potential - The company anticipates significant growth in the information security sector due to increased government focus and funding, particularly following high-profile security incidents in 2013[50]. - The establishment of the National Security Committee in November 2013 is expected to enhance the national security framework, including information security, providing opportunities for local firms[51]. - The domestic information security investment is currently only 6% of total IT investment, compared to over 15% in developed countries, indicating substantial growth potential[52]. - The integration of security technology with big data is projected to create a market growth of nearly 40 billion in the virtualization sector over the next eight years[53]. - The company aims for a revenue growth of over 30% in 2014 compared to 2013, contingent on market conditions and effective implementation of strategies[62]. Shareholder and Dividend Information - The profit distribution plan for 2013 includes a cash dividend of RMB 1 per 10 shares, totaling RMB 7,070,000, and a capital reserve transfer of 6 shares for every 10 shares held, increasing total shares to 113,120,000[76]. - The company’s cash dividend policy mandates that at least 20% of the distributable profit (excluding undistributed profits from the previous year) must be distributed as cash dividends annually[70]. - The company has established a cash dividend management system to ensure a stable and sustainable dividend mechanism, protecting the rights of minority investors[71]. - The company’s cash dividend distribution for 2012 was announced on June 21, 2013, with the record date set for June 27, 2013[72]. - The company reported a net profit attributable to shareholders of RMB 25,140,974.57 in 2013, with a cash dividend of 7,070,000.00 CNY, resulting in a payout ratio of 28.12%[78]. Corporate Governance - The company has established a standardized corporate governance structure, complying with relevant laws and regulations[113]. - The board of directors includes independent directors, ensuring governance standards are met[109]. - The company has committed to maintaining transparency and avoiding conflicts of interest among its board members[105]. - The company has no reported violations of laws or regulations during the reporting period, reflecting strong compliance[113]. Employee and Workforce Information - The workforce included 648 employees, with 281 in R&D, representing 43.36% of total staff, and 60.96% of employees holding a bachelor's degree or higher[30]. - The proportion of employees under 30 years old was 70.99%, indicating a young workforce[111]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to approximately CNY 2.6897 million[107]. Financial Management and Reporting - The company reported a standard unqualified audit opinion for the financial statements, indicating compliance with accounting standards[121]. - The company’s financial statements are prepared based on the going concern principle, following the relevant accounting standards and disclosure regulations[160]. - The company recognizes impairment losses for financial assets when objective evidence indicates a decline in value[178]. - The company applies the cost method for long-term equity investments where it has control, and the equity method for those with significant influence[191].