Financial Performance - The company's operating revenue for the first half of 2021 was ¥260,270,625.69, representing a 0.60% increase compared to ¥258,710,660.79 in the same period last year[22]. - The net profit attributable to shareholders was -¥28,585,806.84, an improvement of 53.23% from -¥61,121,994.33 year-on-year[22]. - The net cash flow from operating activities was -¥61,392,039.71, showing a 40.46% improvement compared to -¥103,106,351.78 in the previous year[22]. - The basic earnings per share were -¥0.04, which is a 55.56% improvement from -¥0.09 in the same period last year[22]. - The company reported a net profit margin improvement, with the weighted average return on net assets increasing to -3.04% from -7.15% year-on-year[22]. - The net profit after deducting non-recurring gains and losses was -¥51,953,333.02, a 31.05% improvement from -¥75,348,683.83 in the previous year[22]. - The company reported a significant decline in active user numbers and revenue scale for the Tangren Digital platform due to market challenges[44]. - The company’s overall financial performance was impacted by increased labor costs and business expenses due to the expansion of new products and markets[88]. - The company reported a total investment income of ¥6,714,372.10, accounting for -15.48% of total profit, primarily due to the transfer of equity in subsidiaries[72]. - The company reported a net loss of CNY 29,452,721.87 in retained earnings as of June 30, 2021, compared to a profit of CNY 5,493,084.97 at the end of 2020[175]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,580,986,046.53, a decrease of 5.63% from ¥1,675,238,726.47 at the end of the previous year[22]. - The net assets attributable to shareholders decreased by 3.17% to ¥874,463,628.55 from ¥903,049,435.39 at the end of the previous year[22]. - The company's cash and cash equivalents decreased from ¥374,104,587.77 at the end of the previous year to ¥253,206,423.31, a reduction of 32.29%[74]. - Accounts receivable decreased slightly from ¥388,516,555.87 to ¥355,902,577.38, a decline of 8.38%[74]. - Inventory increased significantly from ¥171,525,559.91 to ¥243,173,453.78, an increase of 42.00%, attributed to new project inventory[74]. - Contract liabilities rose from ¥140,715,525.67 to ¥249,747,104.00, an increase of 77.73%, indicating more prepayments for new projects[75]. - The total liabilities decreased from CNY 707,548,359.13 to CNY 660,370,137.70, a decrease of about 6.67%[174]. - The company's equity attributable to shareholders decreased from CNY 903,049,435.39 to CNY 874,463,628.55, a decline of approximately 3.17%[175]. Business Operations and Strategy - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company aims to leverage national policy support to expand its network security business and enhance its competitive edge through continuous R&D investment[43]. - The company is focusing on developing new business areas in response to increasing market competition and evolving user needs[42]. - The company is actively managing its portfolio of subsidiaries to optimize financial performance and mitigate losses[88]. - The company aims to maintain a competitive advantage through these commitments and restrictions on key personnel[110]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its service portfolio[199]. - The company is committed to continuous monitoring of industry trends and technological advancements to maintain its competitive edge in the cybersecurity market[90]. Research and Development - R&D expenses accounted for approximately 20% of total revenue, with an increase of 11.94% to CNY 87.52 million[61]. - The company has maintained a high level of R&D investment to keep pace with industry demands and technological advancements[43]. - The R&D expenditure for the current period was 60 million yuan, representing a 10% increase from the previous period, aimed at enhancing product capabilities[200]. Market and Industry Trends - The network security industry is projected to exceed 250 billion yuan by 2023, with a compound annual growth rate of over 15%[42]. - The market size of China's network security industry was approximately 53.2 billion RMB in 2020, with a year-on-year growth rate of 11.3% despite the pandemic's impact[50]. - The forecast for China's network security market spending in 2021 is expected to reach 10.22 billion USD, with a compound annual growth rate (CAGR) of 16.8% from 2020 to 2024[50]. - The company is focusing on technological advancements and innovation to improve service offerings and customer satisfaction[199]. Legal and Compliance Issues - The company is involved in ongoing litigation regarding equity transfer disputes, with a first-instance judgment requiring payments of 8.422 million yuan and 11.578 million yuan to plaintiffs, pending appeal[94]. - The company has faced risks related to administrative penalties for its subsidiary, Tangren Digital, due to operating games without proper licenses, although no penalties have been imposed to date[96]. - The company has established a governance structure and internal control systems to prevent related party transactions and fund occupation risks[112]. Shareholder and Equity Information - The total number of shares before the change was 673,630,150, with a decrease of 23,921,734 shares, resulting in a total of 649,708,416 shares after the change[151]. - Major shareholder Jing Xiaojun held 26.65% of the shares, totaling 179,497,684 shares, with no changes during the reporting period[156]. - The company did not undergo any changes in its controlling shareholder or actual controller during the reporting period[162]. Future Outlook - Future guidance indicates a cautious outlook with expected revenue growth of approximately 10% in the next quarter[198]. - The company plans to enhance its market expansion strategies and invest in new product development to drive future growth[199].

Financial Performance - The company's operating revenue for 2020 was ¥877,989,175.90, a decrease of 11.87% compared to ¥996,255,799.76 in 2019[17] - The net profit attributable to shareholders in 2020 was ¥17,080,549.53, a significant increase of 116.87% from a loss of ¥101,246,695.46 in 2019[17] - The net cash flow from operating activities reached ¥191,401,515.93, representing a remarkable increase of 5,297.34% compared to ¥3,546,219.71 in 2019[17] - The total assets at the end of 2020 amounted to ¥1,675,238,726.47, reflecting a growth of 3.91% from ¥1,612,229,072.76 at the end of 2019[17] - The net assets attributable to shareholders increased by 2.09% to ¥903,049,435.39 at the end of 2020, up from ¥884,540,139.70 in 2019[17] - The basic earnings per share for 2020 was ¥0.0254, a turnaround from a loss of ¥0.1489 in 2019, marking a 117.06% improvement[17] - The weighted average return on net assets was 1.91% in 2020, a significant recovery from -26.61% in 2019[17] - The company reported a decrease in net profit after deducting non-recurring gains and losses, amounting to -¥16,804,713.22 in 2020, an improvement of 93.18% from -¥246,167,287.23 in 2019[17] - Total revenue for 2020 was ¥877,989,175.90, a decrease of 11.87% compared to ¥996,255,799.76 in 2019[65] - Revenue from the cybersecurity segment was ¥389,386,080.65, accounting for 44.35% of total revenue, down 1.67% from the previous year[65] - Revenue from asset management was ¥330,995,259.98, representing 37.70% of total revenue, an increase of 1.31% year-over-year[65] - Revenue from cultural entertainment dropped significantly by 42.65% to ¥153,825,138.68, which accounted for 17.52% of total revenue[65] - Export revenue fell by 51.17% to ¥45,879,729.41, constituting 5.22% of total revenue[65] Market and Business Operations - The company’s main business is focused on the development, publishing, and operation of online games, with a significant emphasis on casual games such as card and mahjong games[35] - The network security business is based on independent innovation, providing comprehensive solutions through self-research and integration, with four major R&D bases established in Shenzhen, Beijing, Wuhan, and Chengdu[36] - The company has developed a range of cybersecurity products, including zero-trust security and cloud security solutions, targeting various sectors such as government and finance[29] - The company is focusing on expanding its market presence through comprehensive solutions in public safety and emergency response, leveraging big data and AI technologies[28] - The company has established a market sales and service system covering various regions, with over 30 branches nationwide to ensure timely customer support[43] - The company is recognized as a key software enterprise and has received multiple certifications and honors, enhancing its competitive edge in the network security field[45] - The company aims to enhance its data governance and security solutions, particularly in the context of 5G and IoT security management[34] - The network security industry in China maintained growth throughout 2020, driven by the implementation of new policies and regulations[39] - The company operates in a favorable policy environment due to the increasing government and enterprise focus on information security and data protection[60] - The number of regulatory policies and guidelines relevant to the network security industry has been increasing, providing a solid foundation for market growth[58] Risks and Challenges - The company has acknowledged potential risks including technology updates, seasonal sales fluctuations, and core talent loss, which are detailed in the report[5] - The company faces risks related to rapid technology updates, seasonal sales fluctuations, and potential core talent loss due to competition in the cybersecurity industry[114][115][116] - The company has ongoing litigation regarding the performance commitments of its subsidiaries, with uncertain impacts on current and future profits[120][121] - The company has faced risks related to the gaming industry, including competition, market demand misalignment, and regulatory tightening[119] Investments and Subsidiaries - In May 2020, the company established a wholly-owned subsidiary with a registered capital of CNY 10 million, and later increased its investment to CNY 22 million, holding 55% of the subsidiary[52] - The company transferred 8.70% equity of Yun'anbao for CNY 20 million, resulting in an investment gain of CNY 14.71 million, positively impacting operational funds[53] - The company established a new subsidiary, Shenzhen Hongbo Data Technology Co., Ltd., with a 55% ownership stake during the reporting period[80] - The company has agreed to invest RMB 1,000 million in a venture capital fund, representing a 4% stake in the partnership[159] Compliance and Governance - The company reported no significant discrepancies between financial reports under international and Chinese accounting standards[20][21] - The company is required to comply with the Shenzhen Stock Exchange's disclosure requirements for software and information technology services[65] - The company confirmed compliance with the Shenzhen Stock Exchange's disclosure requirements for network security-related businesses[74] - The company has established principles for related party transactions to ensure fairness and compliance with legal regulations[134] - The company has committed to avoid non-operating fund occupation and has established a governance structure to ensure compliance[137] - The company has implemented measures to ensure that major shareholders adhere to regulations regarding related party transactions and external guarantees[137] Shareholder and Dividend Policies - The company plans not to distribute cash dividends or issue bonus shares for the year[6] - The company did not distribute cash dividends for the fiscal year 2019, and the cumulative distributable profits were negative as of the end of 2019[127] - The company has not proposed any cash dividend distribution for the fiscal year 2020, despite having positive profits available for distribution[130] - The company’s cash dividend policy and distribution plan have been executed in accordance with its articles of association and relevant regulations[129] Legal Matters - The company is involved in a lawsuit with a claimed amount of RMB 13,456.08 million, awaiting judgment, which may impact future profits[149] - Another lawsuit involves a claimed amount of RMB 18,310.57 million, with a first-instance judgment requiring payment of RMB 1.5 million in penalties[149] - The company has a total of 59 legal cases, with 3 cases settled through mediation, and one case in mediation involving a payment of RMB 42,511.69 million[150] Research and Development - Research and development expenses for 2020 were CNY 178,286,257.02, a decrease of 9.74% from CNY 197,515,252.71 in 2019, representing 20.31% of total revenue[86] - The company has established a mobile internet security governance platform, addressing regulatory compliance and safety in mobile applications[33] - The company has received government subsidies amounting to CNY 20,162,483.21, which are closely related to its business operations[23] Awards and Recognition - In March 2020, the company won the Guangdong Province Science and Technology Progress Award for its mobile internet application auditing platform, showcasing its technological advancements[45] - The company received multiple awards in 2020, including recognition as an "Outstanding Enterprise" and "Best Cooperation Unit" at the Hubei Information Network Security Industry Analysis Conference[54]

Financial Performance - The company's revenue for Q1 2021 was ¥93,745,916.09, a decrease of 0.42% compared to ¥94,144,441.86 in the same period last year[8]. - The net profit attributable to shareholders was -¥22,348,895.77, representing an improvement of 51.58% from -¥46,161,003.84 year-on-year[8]. - The operating profit was -27.68 million yuan, an increase of 35.72% year-on-year[20]. - The basic earnings per share were -¥0.0332, an improvement of 51.53% from -¥0.0685 in the same period last year[8]. - The company reported a total comprehensive loss of CNY 29,218,878.20 for the first quarter, compared to a loss of CNY 46,387,927.03 in the previous period[47]. Cash Flow - The net cash flow from operating activities was -¥75,733,630.83, showing a 19.53% improvement compared to -¥94,115,241.40 in the previous year[8]. - Cash flow from operating activities increased significantly to CNY 233,882,312.00 from CNY 149,703,567.44, indicating stronger cash generation[53]. - The net cash flow from investment activities was 8,362,440.83 CNY, compared to -2,585,562.46 CNY in the previous period, showing a positive turnaround[55]. - The net cash flow from financing activities was -35,361,249.99 CNY, a decline from 52,901,339.51 CNY in the previous period, indicating reduced financing inflow[55]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,554,252,076.91, a decrease of 7.22% from ¥1,675,238,726.47 at the end of the previous year[8]. - The total liabilities decreased to CNY 618,940,587.77 from CNY 707,548,359.13, a reduction of approximately 12.6%[38]. - The company's total equity decreased to CNY 935,311,489.14 from CNY 967,690,367.34, a decline of about 3.3%[39]. Shareholder Information - The total number of shareholders at the end of the reporting period was 51,408[12]. - The largest shareholder, Jing Xiaojun, holds 26.65% of the shares, amounting to 179,497,684 shares[12]. Legal Matters - The company is involved in a legal dispute regarding a share transfer, with a court ruling requiring the defendants to pay a penalty of 1.5 million yuan[22]. - The company has initiated legal proceedings against the compensation obligor for failing to fulfill performance compensation obligations, with a total compensation amount of ¥35.94 million claimed[27]. Investment and Compensation Obligations - The company reported non-recurring gains and losses totaling ¥7,979,116.81, primarily from government subsidies and asset disposals[9]. - The company committed to a net profit of no less than 45 million yuan for the year 2014, 58.74 million yuan for 2015, 63 million yuan for 2016, and 66 million yuan for 2017, totaling a minimum of 232.74 million yuan over the four years[25]. - The company has a profit compensation obligation for the years 2014 to 2017, with the compensation parties being Ding Weiguo, Jiang Liqin, Liu Quan, and Zhu Yao, who will bear the compensation responsibility proportionate to their equity in Tangren Digital[25]. Operational Efficiency - The company reported a 30.73% decrease in selling expenses year-on-year, mainly due to reduced promotional expenses from a subsidiary[20]. - The company recorded a 62.83% decrease in financial expenses year-on-year, attributed to reduced interest income[20]. - Research and development expenses increased to CNY 42,290,881.32 from CNY 39,319,988.09, reflecting a focus on innovation[46]. Inventory and Receivables - Accounts receivable decreased to ¥337.06 million from ¥388.52 million, a reduction of about 13.2%[35]. - Inventory increased to ¥212.97 million from ¥171.53 million, reflecting an increase of approximately 24.2%[35].

证券代码：300311 证券简称：任子行 公告编号：2020-093 任子行网络技术股份有限公司 关于参加2020深圳辖区"诚实守信，做受尊重的上市公司" 上市公司投资者网上集体接待日活动的公告 本公司及董事会全体成员保证信息披露的内容真实、准确和完整，没有虚假 记载、误导性陈述或重大遗漏。 为进一步加强与投资者的互动交流工作，任子行网络技术股份有限公司（以 下简称"公司"）将参加由深圳上市公司协会、深圳市全景网络有限公司共同举 办的"诚实守信，做受尊重的上市公司"——2020 深圳辖区上市公司投资者网 上集体接待日活动，现将有关事项公告如下： 本次集体接待日活动将在深圳市全景网络有限公司提供的网上平台，采取网 络远程的方式举行，投资者可以登录"全景•路演天下"网站（http://rs.p5w.net/） 或关注微信公众号：全景财经，参与公司本次投资者集体接待日活动，活动时间 为 2020 年 12 月 8 日 9:00 至 17:00。 届时公司副总经理、董事会秘书胡炳明先生及财务总监李志强先生将通过网 络文字交流形式与投资者进行沟通。 欢迎广大投资者积极参与。 特此公告。 任子行网络技术股份有限公司 董事 ...

Financial Performance - Operating revenue for the reporting period was CNY 156,486,908.40, down 13.04% year-on-year, and year-to-date revenue decreased by 34.57% to CNY 415,197,569.19[7]. - Net profit attributable to shareholders was CNY 12,135,134.32, an increase of 163.97% compared to the same period last year[7]. - Basic earnings per share for the reporting period were CNY 0.0180, up 163.38% year-on-year[7]. - The company's operating revenue decreased by 35% year-on-year, primarily due to delays in the acceptance of certain cybersecurity projects and reduced income from the game "Bubble Pepper"[20]. - The net profit for the third quarter was a loss of ¥49,671,743.69, compared to a profit of ¥52,485,518.44 in the previous year[64]. - The total comprehensive income for the quarter was a loss of ¥49,671,743.69, compared to a gain of ¥52,485,518.44 in the same period last year[65]. - The net profit for the third quarter of 2020 was CNY 6,349,970.29, a significant decrease from CNY 69,412,832.75 in the same period last year, reflecting a decline of approximately 90.9%[68]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,588,225,230.56, a decrease of 1.49% compared to the end of the previous year[7]. - The company's total liabilities as of September 30, 2020, were CNY 687.3754 million, compared to CNY 662.4568 million at the end of 2019[47]. - The company's equity attributable to shareholders decreased to CNY 836.3026 million from CNY 884.5401 million[48]. - The company's inventory increased by 39% compared to the beginning of the year, mainly due to increased project stocking[19]. - The company's total restricted shares at the end of the period were 163,377,782 shares, with a total of 6,202,107 shares released from restrictions during the period[16]. - Total current assets amounted to ¥707,312,285.03, with cash and cash equivalents at ¥138,141,323.10[84]. - Non-current assets totaled ¥953,262,138.22, including long-term equity investments of ¥714,261,751.12[84]. Cash Flow - The net cash flow from operating activities was CNY 91,231,940.31, an increase of 313.33% compared to the same period last year[7]. - The net cash flow from operating activities was negative at CNY -11,874,411.47, an improvement from CNY -187,636,610.25 in the same period last year[72]. - The cash inflow from investment activities was CNY 195,359,688.40, compared to CNY 342,667,742.87 in the previous year, showing a decrease of about 42.9%[72]. - The cash outflow from financing activities was CNY 140,808,461.20, down from CNY 164,513,061.44 in the same period last year, indicating a reduction of approximately 14.4%[73]. - The total cash inflow from operating activities was CNY 732,126,681.25, compared to CNY 748,328,059.78 in the previous year, reflecting a decrease of about 2.2%[70]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 58,605[11]. - The largest shareholder, Jing Xiaojun, holds 28.50% of the shares, totaling 191,996,184 shares[11]. Legal Matters - The company has initiated litigation against former shareholders of Paojiao Sizhi for performance compensation obligations, with the case accepted by the Shenzhen Intermediate People's Court[25]. - The company has filed a lawsuit against the original shareholders of Tangren Digital Technology Co., Ltd. for performance compensation obligations, with a total of 1,935,547.35 yuan in bank accounts and other assets being frozen[26]. - The company has initiated legal proceedings against the compensation obligors for failing to fulfill their profit compensation obligations, with a total of 1,935,547.35 yuan in bank accounts and other assets being frozen[33]. Investment and Capital Management - The company approved the establishment of a venture capital fund in collaboration with 13 other companies, aiming to invest in new generation information technology, industrial manufacturing, and biomedicine sectors[27]. - The company agreed to transfer 8.70% of its equity in Shenzhen Yun'anbao Technology Co., Ltd. for 20 million yuan, optimizing its asset structure and resource allocation[28]. - The company reported an investment income of ¥14,245,212.20, a decrease from ¥27,495,186.31 in the previous year[63]. Performance Commitments - The actual net profits of Shenzhen Paojiaozi Information Technology Co., Ltd. for the years 2017, 2018, and 2019 were 35.75 million, 32.53 million, and 9.34 million respectively, totaling 77.63 million, which is below the promised cumulative net profit of no less than 150 million[34]. - The performance commitment period for Shenzhen Paojiaozi Information Technology Co., Ltd. includes a minimum profit requirement of 4 million for 2017, 5 million for 2018, and 6 million for 2019, totaling 15 million[32]. - The cumulative actual net profit of Tang Renzi Digital for 2017 was 12.63 million, which did not meet the promised 6.6 million[32].

Financial Performance - The company's operating revenue for the first half of 2020 was ¥258,710,660.79, a decrease of 43.10% compared to ¥454,636,780.73 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was -¥61,121,994.33, representing a decline of 184.74% from ¥72,125,533.93 in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥75,348,683.83, a decrease of 309.60% compared to ¥35,948,893.21 in the same period last year[18]. - The total profit for the period was CNY -55.71 million, representing a decline of 169.04% year-on-year[50]. - The company's net loss for the first half of 2020 was a loss of ¥61,577,442.90, compared to a profit of ¥72,142,372.31 in the first half of 2019[173]. - The company's total comprehensive income for the first half of 2020 was a loss of ¥61,577,442.90, compared to a gain of ¥72,142,372.31 in the first half of 2019[173]. - The company's total comprehensive income for the period was a loss of 14,767,000 yuan, further emphasizing the financial challenges faced[191]. Cash Flow and Assets - The net cash flow from operating activities improved to -¥103,106,351.78, an increase of 28.83% from -¥144,871,355.61 in the previous year[18]. - Cash and cash equivalents increased to ¥280.63 million, representing 17.17% of total assets, up from 13.90% in the previous year, mainly due to bank loans obtained[67]. - The company's cash flow from operating activities for the first half of 2020 was ¥347,221,206.95, compared to ¥434,865,833.56 in the first half of 2019[178]. - The total assets at the end of the reporting period were ¥1,634,576,474.55, an increase of 1.39% from ¥1,612,229,072.76 at the end of the previous year[18]. - The company's total assets reached CNY 1.72 billion as of June 30, 2020, up from CNY 1.66 billion at the end of 2019, indicating asset growth despite losses[168]. - The company's inventory increased significantly to RMB 196,173,643.59 from RMB 145,008,884.06, representing a growth of approximately 35.3%[162]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares[6]. - The total equity attributable to shareholders decreased to CNY 825.18 million as of June 30, 2020, from CNY 884.54 million at the end of 2019, reflecting the impact of accumulated losses[165]. - The total number of shares issued by the company reached 67,363.02 million shares as of June 30, 2020[197]. - The company has a registered capital of 67,998.882 million yuan[197]. - The largest shareholder, Jing Xiaojun, held 191,996,184 shares, representing 28.24% of total shares, with a decrease of 19,388,846 shares during the reporting period[144]. Research and Development - The company maintained R&D expenses at over 10% of total revenue, focusing on industrial internet, 5G security, and zero trust technologies[50]. - Research and development expenses were CNY 78.19 million in the first half of 2020, slightly down from CNY 79.29 million in the same period of 2019, reflecting ongoing investment in innovation[170]. - The company has established R&D bases in Shenzhen, Beijing, Wuhan, and Chengdu, enhancing its technological capabilities and product offerings in network security[35]. Market and Business Operations - The company’s gaming segment operates under a self-managed model, with a focus on online advertising and marketing for its games, covering 95 cities nationwide[34]. - The company reported a non-operating income of CNY 14,226,689.50, which includes government subsidies of CNY 13,398,128.06 and other non-recurring gains[23]. - The company’s market expansion strategy includes deepening customer cooperation and broadening product categories to enhance service quality[35]. - The company is exploring potential mergers and acquisitions to strengthen its market position[188]. Legal and Compliance Issues - The company is involved in ongoing litigation related to the acquisition of 泡椒思志, with a civil lawsuit filed in May 2020 for performance compensation[93]. - The company is actively pursuing legal measures to recover compensation and protect the rights of all investors[107]. - The company has not reported any media controversies during the reporting period[113]. Risks and Challenges - The company faces risks related to seasonal sales fluctuations, with higher demand typically in the second half of the year[85]. - There are potential risks regarding product sales not meeting expectations due to increased competition and project delays caused by the pandemic[86]. - The company acknowledges the risk of being replaced by emerging IT technologies such as cloud computing, big data, and IoT if it fails to keep pace with industry trends[90]. Employee and Management - The company emphasizes the importance of retaining and cultivating mid-to-senior level talent to meet rapid development needs in the competitive cybersecurity industry[88]. - The company has implemented measures to optimize employee compensation and benefits to attract and retain key management and business personnel[89].

Financial Performance - The company's operating revenue for 2019 was approximately ¥996.26 million, a decrease of 15.51% compared to ¥1,202.71 million in 2018[16]. - The net profit attributable to shareholders was a loss of approximately ¥101.25 million, representing a decline of 147.21% from a profit of ¥139.17 million in 2018[16]. - The basic earnings per share for 2019 was -¥0.1489, a decrease of 146.93% compared to ¥0.21 in 2018[16]. - Total assets at the end of 2019 were approximately ¥1.61 billion, down 20.61% from ¥2.39 billion at the end of 2018[16]. - The net assets attributable to shareholders decreased by 10.36% to approximately ¥884.54 million from ¥1.37 billion in 2018[16]. - The company reported a net cash flow from operating activities of approximately ¥3.55 million, a decline of 105.08% compared to a cash outflow of ¥69.87 million in 2018[16]. - The company achieved operating revenue of CNY 996.26 million, a year-on-year decrease of 15.51%[49]. - The net profit attributable to shareholders was CNY -1,012.47 million, a year-on-year decrease of 147.21%[49]. - The company's core network security business generated revenue of CNY 396 million, a year-on-year decline of 27.78%[50]. - The gaming business reported operating revenue of CNY 268 million, a year-on-year decline of 11.27%[51]. - The company incurred an impairment loss of CNY 251.04 million on goodwill related to the subsidiary, Bubble Pepper Wisdom, due to underperformance in 2019[52]. - The total operating revenue for 2019 was CNY 996.26 million, a decrease of 15.51% from CNY 1.179 billion in 2018[61]. - The revenue from the cybersecurity segment was CNY 396.02 million, down 27.78% from CNY 548.31 million in 2018, while the asset management segment saw a slight increase of 1.22%[61]. - The total revenue from the cultural entertainment segment decreased by 11.27% year-on-year, amounting to ¥268,204,099.97[68]. - The company reported a net profit of 213.41 million after adjustments, an increase of 53.5% compared to the previous figure of 138.11 million[131]. Operational Strategy - The company plans not to distribute cash dividends or issue bonus shares for the year[5]. - The company is focused on developing comprehensive network security solutions, covering various sectors including public safety and cloud security[26]. - The company has invested in and acquired subsidiaries to expand its internet value-added services, forming a business group centered around Tangren Digital and others[26]. - The company aims to enhance its mobile internet security governance through comprehensive solutions addressing behavior and content safety[32]. - The company aims to leverage national policies and the "Belt and Road" initiative to explore new market opportunities while consolidating existing ones[37]. - The company plans to focus on its core cybersecurity business, leveraging its first-mover advantage to expand partnerships and promote products across multiple regions and countries[97]. - The company aims to enhance its product competitiveness by investing in new technologies and products, particularly in emerging fields such as industrial internet security and 5G security[97]. Research and Development - R&D expenses accounted for over 10% of total revenue, reflecting the company's commitment to innovation[47]. - The company holds 52 registered trademarks and 702 software copyright certificates, with 59 authorized patents, including 46 invention patents[47]. - The company established the "Beiyou-Yahon 5G Security Joint Laboratory" to develop 5G security solutions[46]. - The company has a high-quality R&D team, with over 64% of employees engaged in research and development[45]. - The company is actively researching cutting-edge technologies in network security for product transformation and comprehensive solutions[26]. Market and Customer Insights - Tangren Digital's cumulative registered users reached 8.5992 million, with an average monthly active user count of approximately 52,400 in 2019[34]. - The mobile gaming subsidiary, Paojiao Sizh, achieved a cumulative registered user base of 29.61 million, with an average monthly active user count of 591,000 and monthly paying users of 96,000[34]. - The company reported a significant increase in export revenue, which rose by 240.19% to CNY 93.96 million[61]. - The top five customers accounted for 16.48% of the total annual sales, with the largest customer contributing 6.43%[77]. Compliance and Governance - The company has established a self-inspection team to address issues identified in its financial reporting for previous years[16]. - The company has committed to reducing and regulating related party transactions to protect the interests of shareholders, especially minority shareholders[122]. - The management team has agreed to notify the company of any business opportunities that may compete with its operations[122]. - The company has emphasized the importance of compliance with laws and regulations in all related party transactions[122]. - The company has committed to improving its governance structure and internal control systems to prevent related party fund occupation[126]. - The company received a corrective order from the Shenzhen Securities Regulatory Commission on December 19, 2019, due to issues related to investment decision-making and internal control deficiencies[138]. - The company has established a long-term plan for ongoing training and compliance monitoring to prevent future accounting irregularities[160]. Risks and Challenges - The company faces various operational risks, including seasonal sales risks and integration risks from mergers and acquisitions[4]. - The company acknowledges risks related to product sales not meeting expectations, particularly in the context of the ongoing impact of COVID-19 on delivery and bidding processes[103]. - The company is exploring suitable incentive schemes to strengthen motivation among its core team members[100]. - The company faces seasonal risks in sales, with a significant portion of revenue typically realized in the second half of the year due to client procurement cycles[102]. Financial Adjustments and Audits - The company adjusted its financial statements due to accounting policy changes, impacting accounts receivable, prepaid expenses, and goodwill among others, with a total net profit adjustment of 75.29 million[131]. - The company has ceased to consolidate Guangzhou Shuwu Information Technology Co., Ltd. in its financial reports due to its deregistration[132]. - The company appointed Zhongxinghua Accounting Firm as its auditor for the 2019 fiscal year, with an audit fee of 1 million[133]. - The company is currently in the process of self-inspection and correction of previous accounting errors as mandated by regulatory authorities[131]. - The company has implemented corrective measures to ensure timely accounting recognition and reporting of transactions, improving the efficiency of document transfer processes[153].

Financial Performance - The company's operating revenue for 2019 was approximately ¥996.26 million, a decrease of 15.51% compared to ¥1,202.71 million in 2018[16]. - The net profit attributable to shareholders was a loss of approximately ¥101.25 million, representing a decline of 147.21% from a profit of ¥139.17 million in 2018[16]. - The basic earnings per share for 2019 was -¥0.1489, down 146.93% from ¥0.21 in the previous year[16]. - The total assets at the end of 2019 were approximately ¥1.61 billion, a decrease of 20.61% from ¥2.39 billion at the end of 2018[16]. - The net assets attributable to shareholders decreased by 10.36% to approximately ¥884.54 million from ¥1.37 billion in 2018[16]. - The company reported a net cash flow from operating activities of approximately ¥3.55 million, a significant decline from -¥69.87 million in 2018[16]. - The weighted average return on net assets was -26.61% for 2019, a significant drop from 10.74% in 2018[16]. - The company achieved operating revenue of 996.26 million yuan, a year-on-year decrease of 15.51%[50]. - The net profit attributable to shareholders was -101.25 million yuan, a year-on-year decrease of 147.21%[50]. - The company reported a significant increase in export revenue, which rose by 240.19% to CNY 93.96 million in 2019[62]. Revenue Breakdown - The revenue from the cybersecurity segment was CNY 396.02 million, down 27.78% year-on-year, while the asset management segment saw a slight increase of 1.22% to CNY 326.72 million[62]. - The online entertainment business reported operating revenue of 268 million yuan, a year-on-year decline of 11.27%, but with an 18.39% increase in gross margin[52]. - The total revenue from the game "青云传" in Q4 reached ¥35,704,320, with a user count of 282,826 and 46,113 paying users[67]. - The "文化娱乐" sector reported a revenue of ¥268,204,099.97, with a gross margin of 76.68%, down 11.27% year-over-year[69]. - The total revenue from "青云诀" in Q1 was ¥6,580,600.00, with 43,233 users and 5,135 paying users[67]. Investments and Acquisitions - The company invested USD 1 million to establish a wholly-owned subsidiary in Hong Kong to support its overseas business development and respond to the "Belt and Road" initiative[56]. - In November 2019, the company invested CNY 10 million in Chengdu Chain Security Technology Co., acquiring a 5.39% stake, focusing on blockchain security compliance[57]. - The company has invested in and acquired subsidiaries to expand its internet value-added services, forming a business group centered around three subsidiaries[26]. - The company invested ¥66,000,000.00 during the reporting period, a significant increase of 120.00% compared to the previous year[91]. Research and Development - The company maintained R&D expenses at over 10% of total operating revenue, reflecting a commitment to innovation[48]. - The company focuses on enhancing its research and development capabilities to maintain a competitive edge in the network security sector[38]. - The company is actively researching cutting-edge technologies in network security for product transformation[26]. - The company’s total R&D investment was approximately ¥197.5 million, representing 19.83% of total revenue, an increase of 17.22% year-over-year[82]. Operational Risks and Compliance - The company has acknowledged various operational risks, including seasonal sales risks and integration risks from potential mergers and acquisitions[5]. - The company is undergoing a comprehensive self-examination following regulatory measures imposed by the China Securities Regulatory Commission[16]. - The company is addressing potential litigation risks related to equity transfer disputes, which may impact future profits[109]. - The company has a risk of administrative penalties related to its subsidiary's gaming operations, which may affect future operations[111]. Governance and Internal Controls - The company is focused on enhancing its internal control systems and governance to mitigate risks associated with related party transactions[126]. - The management team committed to a minimum tenure of 60 months to ensure the sustainable development and competitive advantage of Tangren Digital[123]. - The company has established a governance structure to prevent related party fund occupation and ensure independent operations in business and finance[126]. - The company is committed to improving the professional capabilities of its financial personnel through training and recruitment[159]. Shareholder Returns and Dividends - The company plans not to distribute cash dividends or issue bonus shares for the year[6]. - The company plans not to distribute any cash dividends for the year 2019 due to negative retained earnings of -141,887,277.87 RMB[118]. - The cumulative undistributed profits attributable to shareholders at the end of 2019 were 12,416,956.48 RMB[118]. - The cash dividend payout ratio for 2018 was 9.35% of the net profit attributable to shareholders[120]. Legal and Regulatory Matters - The company received an administrative regulatory decision from the Shenzhen Securities Regulatory Bureau, requiring corrective actions due to financial reporting issues[138]. - The company is currently in the process of addressing issues related to internal controls and financial accounting practices as mandated by regulatory authorities[138]. - The company established a special rectification working group led by the chairman to implement detailed rectification measures and plans in response to the Shenzhen Securities Regulatory Commission's decision[139]. Market Outlook - The global cybersecurity market is projected to reach $164.89 billion by 2021, with China's cybersecurity market expected to reach 92.68 billion yuan, indicating significant growth potential in the sector[98]. - The company plans to focus on its core cybersecurity business, leveraging its first-mover advantage to expand partnerships and promote products across multiple regions and countries[99]. - The company aims to enhance its product competitiveness by investing in new technologies and products, particularly in emerging fields such as industrial internet security and 5G security[99].

Financial Performance - Total revenue for Q1 2020 was ¥94,144,441.86, a decrease of 54.54% compared to ¥207,096,971.83 in the same period last year[8] - Net profit attributable to shareholders was -¥46,161,003.84, representing a decline of 510.58% from ¥11,242,923.71 in the previous year[8] - Basic and diluted earnings per share were both -¥0.0685, a decrease of 512.65% from ¥0.0166 in the same period last year[8] - The company reported a net loss of CNY 33,969,815.53 for the period, compared to a profit of CNY 12,416,956.48 in the previous period[34] - The company reported a total comprehensive loss of CNY -46,387,927.03 for Q1 2020, compared to a comprehensive income of CNY 11,252,097.69 in the same period last year[42] Cash Flow - The net cash flow from operating activities improved by 38.88%, amounting to -¥94,115,241.40 compared to -¥153,995,482.42 in the previous year[8] - Cash inflow from operating activities was 166,811,579.66 CNY, down from 235,504,683.97 CNY year-on-year, representing a decrease of approximately 29.2%[48] - Cash outflow from operating activities totaled 260,926,821.06 CNY, compared to 389,500,166.39 CNY in the previous period, indicating a reduction of about 33.1%[49] - The net cash flow from investment activities was -2,585,562.46 CNY, compared to 96,616,296.40 CNY in the previous period, reflecting a substantial decrease[49] - Cash inflow from financing activities was 65,000,000.00 CNY, up from 30,135,548.29 CNY year-on-year, representing an increase of about 115.5%[50] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,606,014,832.57, a slight decrease of 0.39% from ¥1,612,229,072.76 at the end of the previous year[8] - Total liabilities rose to CNY 701,535,438.29 from CNY 662,456,814.77, reflecting an increase of about 5.6%[33] - The company's equity attributable to shareholders decreased to CNY 839,247,275.99 from CNY 884,540,139.70, a decline of about 5.1%[34] - Total liabilities decreased to CNY 727,931,472.13 from CNY 754,136,013.60 year-over-year[40] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 57,857[12] - The largest shareholder, Jing Xiaojun, holds 29.31% of the shares, amounting to 199,282,484 shares, with 158,538,772 shares pledged[12] Government Support - The company received government subsidies amounting to ¥4,119,685.35 during the reporting period[9] - The company received non-operating income of 4.30 million yuan, primarily from government subsidies[21] Operational Metrics - Operating costs fell by 71.95% year-on-year, correlating with the decline in revenue[19] - Research and development expenses for Q1 2020 were CNY 39,319,988.09, slightly up from CNY 38,294,690.38 year-over-year[40] - Sales expenses for Q1 2020 were CNY 58,032,349.85, down from CNY 65,335,143.98 in the previous year[40] Inventory and Receivables - Accounts receivable decreased by 35.44% compared to the beginning of the year, mainly due to the maturity of certain bank acceptance bills[19] - The company experienced a 100% decrease in inventory shares, as restricted stocks reached the conditions for unlocking[19] - Inventory increased to CNY 177,282,440.22 from CNY 145,008,884.06, marking an increase of approximately 22.2%[31]

Financial Performance - Operating revenue for the reporting period was CNY 179,954,028.36, down 39.12% year-on-year, and year-to-date revenue was CNY 634,590,809.09, down 24.83%[8] - Net profit attributable to shareholders of the listed company was a loss of CNY 18,968,879.41, a decrease of 153.02% year-on-year, with a year-to-date net profit of CNY 53,156,654.52, down 51.89%[8] - Basic earnings per share for the reporting period was -CNY 0.0284, a decrease of 153.99% year-on-year, and year-to-date was CNY 0.0788, down 51.51%[8] - The net profit for Q3 2019 was a loss of ¥19,656,853.87, compared to a profit of ¥35,834,514.75 in Q3 2018, representing a significant decline[41] - Total operating revenue for the period was ¥634,590,809.09, a decrease of 25% compared to ¥844,236,324.90 in the previous period[47] - Net profit for the period was ¥52,485,518.44, a decline of 52% from ¥110,693,301.97 in the previous period[49] - The total profit for the period was ¥64,231,623.50, down 47% from ¥122,292,084.73 in the previous period[49] Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,344,952,233.13, a decrease of 1.68% compared to the end of the previous year[8] - Total current assets increased to ¥1,342,801,013.11 as of September 30, 2019, up from ¥1,187,785,809.62 at the end of 2018, representing a growth of approximately 13.04%[31] - Total liabilities decreased to ¥796,556,449.02 from ¥958,266,891.28, a reduction of about 16.87%[32] - Total current liabilities were CNY 712,866,587.60, remaining stable compared to the previous period[66] - Total liabilities stood at CNY 958,266,891.28, unchanged from the previous reporting period[67] - The company's long-term borrowings decreased by 100% compared to the beginning of the year, due to repayment of bank loans[19] Cash Flow - The net cash flow from operating activities for the year-to-date was -CNY 187,636,610.25, down 15.49%[8] - Cash inflows from operating activities totaled CNY 748,328,059.78, down from CNY 862,522,739.83, indicating a decrease of about 13.2%[56] - The net cash flow from operating activities was negative at CNY -187,636,610.25, worsening from CNY -162,475,248.57 in the previous period[57] - Cash inflows from financing activities were CNY 160,125,400.00, down from CNY 317,575,817.42, representing a decline of about 49.7%[58] - The net cash flow from financing activities was negative at CNY -4,387,661.44, compared to a positive CNY 121,081,320.82 in the previous period[58] Shareholder Information - Net assets attributable to shareholders of the listed company increased by 8.93% to CNY 1,490,853,543.12[8] - The total number of ordinary shareholders at the end of the reporting period was 48,030[12] - The largest shareholder, Jing Xiaojun, holds 33.88% of the shares, with 230,410,832 shares pledged[12] Expenses - The company's operating costs decreased by 52.82% year-on-year, mainly due to a decline in operating revenue and reclassification of certain service fees[20] - The company's sales expenses increased by 67.22% year-on-year, primarily due to the reclassification of certain service fees[20] - Research and development expenses for the quarter were ¥42,408,291.82, up 11.5% from ¥38,203,650.39 in the previous year[40] - Sales expenses rose to ¥186,301,939.43, an increase of 67% from ¥111,411,720.18 in the previous period[47] Investment Activities - The company reported non-recurring gains and losses totaling CNY 43,490,999.92 for the year-to-date[10] - The company's investment income increased by 624.80% year-on-year, mainly due to the transfer of equity in Beijing Minglue[20] - The net cash flow from investment activities increased by 183.63% year-on-year, attributed to the redemption of financial products and the transfer of equity[21] - The company reported an investment income of ¥27,495,186.31, significantly higher than ¥3,793,473.87 in the previous period[47] Legal Matters - The company faced a lawsuit regarding equity transfer disputes, but its daily operations were not significantly affected during the account freeze period[22] Other Financial Metrics - The weighted average return on net assets was -1.26%, a decrease of 4.02% compared to the previous year[8] - The company experienced a credit impairment loss of ¥8,173,136.29, with no comparable figure in the previous period[49] - The total comprehensive income for the period was CNY 69,412,832.75, compared to CNY 67,859,805.30 in the previous period, reflecting an increase of approximately 2.3%[54]