Financial Performance - Total revenue for Q1 2018 was ¥214,070,386.50, a decrease of 2.73% compared to ¥220,078,426.26 in the same period last year[8] - Net profit attributable to shareholders was ¥11,541,160.50, an increase of 8.76% from ¥10,611,172.06 year-on-year[8] - Net profit after deducting non-recurring gains and losses was ¥6,406,022.95, down 23.29% from ¥8,351,487.47 in the previous year[8] - Basic earnings per share increased by 29.00% to ¥0.0258 from ¥0.02 year-on-year[8] - Operating profit for the first quarter was 15.27 million RMB, an increase of 10.16% year-on-year[19] - The net profit for Q1 2018 was CNY 11,072,700.82, down 23.8% from CNY 14,528,172.12 in Q1 2017[42] - The total profit for Q1 2018 was CNY 14,935,300.67, a decrease of 20.5% from CNY 18,738,822.13 in the previous year[41] - The gross profit margin for Q1 2018 was approximately 82.0%, compared to 71.4% in Q1 2017[44] Cash Flow and Liquidity - The net cash flow from operating activities was -¥126,317,220.70, a decline of 71.27% compared to -¥73,751,741.85 in the same period last year[8] - Cash and cash equivalents decreased by 143.74 million RMB, a reduction of 44.74%, primarily due to increased employee salary payments and expenses[18] - Cash outflow from operating activities increased by 101.96 million RMB, a rise of 34.86%, due to higher payments for procurement, salaries, and year-end bonuses[18] - Cash inflow from investment activities increased by 15.24 million RMB, a growth of 38%, mainly from the recovery of bank financial products[18] - Cash outflow from investment activities decreased by 212.74 million RMB, a reduction of 72.09%, due to last year's payments for employee stock ownership plans and acquisitions[18] - Cash inflow from financing activities decreased by 110 million RMB, a reduction of 100%, as there were no borrowings during the reporting period[18] - The ending cash and cash equivalents balance was 158,320,774.62 CNY, down from 104,560,784.59 CNY, reflecting a decrease of approximately 49.8%[49] Assets and Liabilities - Total assets at the end of the reporting period were ¥2,261,050,659.76, a decrease of 1.21% from ¥2,288,808,970.69 at the end of the previous year[8] - Total liabilities decreased to CNY 964,923,681.92 from CNY 1,003,754,693.66, reflecting a reduction of approximately 3.9%[34] - The company's total equity increased to CNY 1,296,126,977.84 from CNY 1,285,054,277.03, indicating a growth of about 0.8%[35] - The total current assets decreased to ¥877.03 million from ¥934.02 million, reflecting a decline of about 6.1%[32] Operational Challenges and Risks - The company completed acquisitions of Tangren Digital, Paojiao Sizh, and Beijing Yahon, but faces integration risks and potential impacts on future performance[10] - The company is at risk of core talent loss due to increasing competition in the cybersecurity industry, necessitating improvements in employee retention strategies[10] - The company is exposed to risks from new technologies like cloud computing, which could disrupt traditional IT business models if not adapted to[10] - The gaming industry faces regulatory risks that could impact the company's operations in mobile gaming, requiring compliance with new policies[11] - The company is focusing on enhancing its product offerings and market expansion strategies in the upcoming quarters[40] Investment and Fund Utilization - The total amount of raised funds is RMB 42,793 million, with RMB 1,063.49 million invested in the current quarter[24] - Cumulative amount of raised funds utilized is RMB 43,535 million, with a cumulative change in purpose amounting to RMB 1,062.01 million, representing 2.48% of the total[24] - The company has invested RMB 19,685 million in the acquisition of Suzhou Tangren Digital Technology Co., Ltd., achieving 100% of the promised investment[25] - The company has allocated RMB 7,532.45 million for the upgrade and optimization of network content and behavior auditing products, achieving 100.02% of the planned investment[25] - The company has invested RMB 5,652.47 million in the construction of a network information security supervision platform, achieving 99.98% of the planned investment[25]

Financial Performance - The company's operating revenue for 2017 was ¥1,076,908,064.59, representing a 62.46% increase compared to ¥662,859,791.50 in 2016[18]. - The net profit attributable to shareholders for 2017 was ¥149,268,092.48, a 36.26% increase from ¥109,549,436.73 in 2016[18]. - The net cash flow from operating activities increased by 119.87% to ¥201,622,734.01 in 2017, up from ¥91,701,033.10 in 2016[18]. - The total assets at the end of 2017 were ¥2,288,808,970.68, reflecting a 28.10% increase from ¥1,786,720,007.45 at the end of 2016[18]. - The basic earnings per share for 2017 was ¥0.33, a 32.00% increase compared to ¥0.25 in 2016[18]. - The company reported a significant decline in net profit excluding non-recurring gains and losses, with a loss of ¥45,804,917.92 in 2017 compared to a profit of ¥92,281,713.25 in 2016, marking a 149.64% decrease[18]. - The company’s weighted average return on equity for 2017 was 11.94%, up from 9.32% in 2016[18]. - The company’s non-recurring gains for 2017 totaled ¥195,073,010.40, significantly higher than ¥17,267,723.48 in 2016[24]. - The company achieved total operating revenue of 1,076.91 million yuan, a year-on-year increase of 62.46%[44]. - The net profit attributable to shareholders of the parent company was 149.27 million yuan, reflecting a year-on-year growth of 36.26%[44]. Dividend and Capital Management - The company plans to distribute a cash dividend of 0.30 RMB per 10 shares to all shareholders, based on a total of 447,930,709 shares[5]. - The company will increase its capital reserve by converting 5 shares for every 10 shares held by shareholders[5]. - The proposed profit distribution plan for 2017 includes a cash dividend of RMB 0.30 per 10 shares, totaling RMB 13,437,921.27, which represents 9.00% of the net profit attributable to shareholders[104]. - The cash dividend payout ratio for 2016 was 20.46%, with a total cash dividend of RMB 22,416,566.55[104]. - The company plans to increase its total share capital from 447,930,709 shares to 671,896,064 shares through a capital reserve transfer, issuing 5 new shares for every 10 shares held[101]. Risk Management - The company acknowledges potential risks including integration risks from mergers and acquisitions, talent loss, and policy risks in the online gaming industry[5]. - The company has a comprehensive risk disclosure in the section discussing future development prospects[5]. - The company faces risks related to talent retention due to increasing competition in the cybersecurity industry, necessitating improvements in employee incentives[96]. - The company is at risk of being replaced by new technologies such as cloud computing if it fails to keep pace with industry trends[96]. - The gaming industry is subject to increasing regulatory scrutiny, which poses risks for the company's subsidiaries involved in mobile gaming operations[96]. Technology and Innovation - The company emphasizes the importance of new technology applications, such as cloud computing, in driving industry transformation[5]. - The company has established R&D bases in Shenzhen, Beijing, Wuhan, and Chengdu to enhance its technological capabilities and product offerings[33]. - The company’s research and development expenditure accounted for over 10% of sales revenue for the past three years[41]. - The company holds over 40 national core technologies and has applied for 126 patents, with 17 patents granted during the reporting period[41]. - The company is investing in R&D, allocating $E million towards the development of new technologies and products[187]. Market and Client Base - The company operates in the internet security and gaming sectors, focusing on public network security solutions and game development[28]. - The company has expanded its client base to include sectors such as public security, telecommunications, military, education, healthcare, finance, and energy, with some operations extending overseas[28]. - The company reported a cumulative registered user base of 8.47 million for its gaming platform "Tangrenyou" with an average monthly active user count of approximately 64,300 and monthly paying users around 13,700 in 2017[32]. - The "6998" gaming platform achieved a cumulative registered user count of 3.59 million, with an average monthly active user count of about 42,000 and monthly paying users around 3,400 in 2017[33]. Acquisitions and Investments - The company acquired 44% of Beijing Yahon for 183.92 million yuan to promote long-term development[44]. - The company acquired 100% equity of Shenzhen Paojiao Sizhi Information Technology Co., Ltd. for a cash transaction of 41 million RMB[45]. - The company completed the acquisition of Suzhou Tangren Digital Technology Co., Ltd. for RMB 196.85 million, with a completion rate of 100.00%[83]. - The company invested CNY 183.92 million to acquire 44% equity of Beijing Yahon Century Technology Development Co., Ltd. from minority shareholders, completed in August 2017[159]. Governance and Compliance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management[4]. - The company has established a governance structure consisting of the shareholders' meeting, board of directors, supervisory board, and management team, complying with relevant regulations[197]. - The board of directors consists of 7 members, including 3 independent directors, meeting legal and regulatory requirements[198]. - The company adheres to strict information disclosure practices, ensuring timely and accurate communication with shareholders and stakeholders[199]. - The company has not experienced any significant discrepancies in governance compared to regulatory standards set by the China Securities Regulatory Commission[200]. Employee Relations - The company has a dedicated investor relations team to handle inquiries and maintain communication with shareholders[15]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 4.9867 million CNY[191]. - The company employed a total of 1,627 staff, with 943 in technical roles and 394 in sales[193]. - The company has established a comprehensive internal training system, focusing on new employee training and professional skills development[195]. - The company plans to enhance internal training mechanisms to improve employee skills and support future growth[195]. Shareholder Information - The total number of ordinary shareholders increased from 32,328 to 34,028 during the reporting period[173]. - The largest shareholder, Jing Xiaojun, holds 39.49% of the shares, totaling 176,903,996 shares, with 132,677,997 shares under lock-up[173]. - The company’s stock structure includes significant pledges, with Jing Xiaojun pledging 104,150,300 shares[173]. - The company reported no changes in the controlling shareholder or actual controller during the reporting period[176]. - The company has no preferred shares outstanding during the reporting period[180].

Financial Performance - Operating revenue for the reporting period reached CNY 190,545,913.41, a 42.06% increase year-on-year [8]. - Net profit attributable to shareholders increased by 80.03% to CNY 39,248,695.28 for the reporting period [8]. - The net profit after deducting non-recurring gains and losses was CNY 34,049,224.40, up 65.73% year-on-year [8]. - Basic earnings per share rose by 80.00% to CNY 0.09 for the reporting period [8]. - Total operating revenue for Q3 2017 was CNY 190,545,913.41, an increase of 42% compared to CNY 134,126,067.88 in the same period last year [41]. - Net profit for Q3 2017 reached CNY 38,747,239.79, compared to CNY 25,835,031.27 in Q3 2016, marking a 50% increase [42]. - The net profit attributable to shareholders of the parent company was CNY 39,248,695.28, up from CNY 21,801,685.82, representing an increase of 80% [42]. - Basic and diluted earnings per share for Q3 2017 were both CNY 0.09, compared to CNY 0.05 in the same quarter last year [43]. - Net profit for the period was ¥21,676,451.62, compared to ¥5,883,952.41 in the same period last year, marking an increase of approximately 268% [46]. - Operating profit for the period was ¥7,983,705.49, up from ¥1,702,969.43 in the previous year, indicating a growth of approximately 368% [46]. - The total profit for the period was ¥21,676,451.62, compared to ¥6,000,045.23 in the previous year, reflecting an increase of approximately 261% [46]. Assets and Liabilities - Total assets increased by 30.44% to CNY 2,330,508,448.51 compared to the end of the previous year [8]. - Total assets as of Q3 2017 amounted to CNY 2,527,824,904.85, an increase from CNY 1,716,637,858.49 year-over-year [39]. - The total liabilities increased to RMB 1,146,409,386.97 from RMB 515,260,671.57, indicating a rise of approximately 122% [35]. - Total liabilities for Q3 2017 were CNY 1,219,512,719.12, compared to CNY 474,965,586.83 in the previous year, indicating a significant increase [39]. - The company's equity attributable to shareholders decreased to RMB 1,147,767,816.63 from RMB 1,236,960,194.49, a decline of about 7.2% [36]. Cash Flow - The company reported a net cash flow from operating activities of CNY 8,582,677.60, a significant increase of 153.93% [8]. - The net cash flow from operating activities increased by CNY 24.50 million, a growth of 153.93% compared to the same period in 2016, mainly due to increased collections and expanded consolidation scope [21]. - The cash inflow from operating activities totaled CNY 793,680,927.54, compared to CNY 404,669,326.96 in the previous period, representing an increase of approximately 96% [57]. - The net cash flow from operating activities was CNY 8,582,677.60, a significant improvement from a net outflow of CNY 15,913,129.98 in the same period last year [57]. - The total cash outflow from investing activities was CNY 441,396,946.39, up from CNY 156,507,959.79, indicating increased investment activity [58]. - The cash outflow for purchasing goods and services was CNY 442,356,492.86, compared to CNY 201,304,543.53 in the previous period, reflecting increased operational costs [57]. Shareholder Information - The total number of shareholders at the end of the reporting period was 36,405 [12]. - The largest shareholder, Jing Xiaojun, holds 39.49% of the shares, with 132,677,997 shares pledged [12]. - The company declared a cash dividend of RMB 0.500359 per 10 shares based on a total share capital of 448,009,392 shares after the repurchase of 321,939 restricted shares [26]. - The company’s cash dividend policy was executed in compliance with its articles of association and shareholder resolutions [27]. Regulatory and Compliance - The company received a warning and a fine of CNY 300,000 from the China Securities Regulatory Commission due to an ongoing investigation [22]. - The company reported no violations regarding external guarantees during the reporting period [28]. - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period [29]. Other Financial Metrics - The company received government subsidies amounting to CNY 9,626,554.87 during the reporting period [9]. - The company's goodwill increased by CNY 353.29 million, a growth of 49.92% compared to the end of 2016, mainly due to the acquisition of Shenzhen Paojiao Sizi Information Technology Co., Ltd. [17]. - The company acquired 44% of the minority shareholders' equity in Beijing Yahon Century Technology Development Co., Ltd. for CNY 183.92 million, resulting in full ownership of the subsidiary [23]. - The company reported a significant increase in other payables, which rose by CNY 332.32 million, a staggering increase of 1671.63%, primarily due to unpaid acquisition payments during the reporting period [18]. - Deferred income for Q3 2017 was CNY 35,712,000.00, down from CNY 42,124,000.00, indicating a decrease of approximately 15% [39].

Financial Performance - Total revenue for the reporting period reached ¥459,840,117.28, an increase of 88.81% compared to ¥243,544,421.30 in the same period last year[21]. - Net profit attributable to shareholders decreased by 5.02% to ¥45,930,852.09 from ¥48,360,522.93 year-on-year[21]. - Net profit after deducting non-recurring gains and losses fell by 8.87% to ¥40,753,802.80 compared to ¥44,721,981.89 in the previous year[21]. - The net cash flow from operating activities was negative at -¥35,399,649.90, a decline of 159.55% from -¥13,639,048.98 in the same period last year[21]. - Total assets increased by 25.28% to ¥2,238,424,575.83 from ¥1,786,720,007.45 at the end of the previous year[21]. - Net assets attributable to shareholders rose by 4.47% to ¥1,292,295,636.64 from ¥1,236,960,194.49 at the end of the previous year[21]. - The average return on equity decreased to 3.57% from 4.24% year-on-year[21]. - The company reported a total profit of approximately CNY 57.16 million, compared to CNY 62.45 million in the same period last year, reflecting a decrease of 8.0%[146]. - Basic and diluted earnings per share were both CNY 0.10, compared to CNY 0.11 in the first half of 2016[147]. Capital Structure and Shareholder Information - The company reported a decrease in registered capital from 448,331,331 to 448,009,392 due to the repurchase and cancellation of 321,939 unvested restricted stocks[20]. - The total number of shares decreased from 448,331,331 to 448,009,392, a reduction of 321,939 shares[117]. - The number of restricted shares held by major shareholders decreased by 19,917,276 shares, from 246,441,115 to 226,523,839 shares[123]. - The proportion of restricted shares held by major shareholders decreased from 54.97% to 50.56%[117]. - The total number of shareholders at the end of the reporting period was 41,540[125]. - The largest shareholder, Jing Xiaojun, holds 39.49% of the shares, totaling 176,903,996 shares, with 99,300,200 shares pledged[125]. Investment and Acquisition Activities - The company acquired 100% equity of Shenzhen Paojiao Sizhi Information Technology Co., Ltd. for ¥410 million, resulting in goodwill of ¥353 million[35][42]. - The company completed the acquisition of 100% equity in subsidiary Paojiao Sizhi, which generated 145 million yuan in revenue but incurred a net loss of 1.45 million yuan during the reporting period[71]. - The total investment during the reporting period was ¥469,000,000.00, representing a dramatic increase of 1,489.83% compared to the previous year[53]. - The company has included new subsidiaries in its consolidated financial statements, such as Renwang An and Ren Zhi Ju, and acquired subsidiaries like Paojiao Sizhi[175]. Research and Development - Research and development expenses amounted to ¥52,761,756.47, representing 11.47% of total revenue[44]. - The company holds over 40 national core technologies and has been granted 442 software copyright registrations[38][44]. - The number of games operated on the platform increased to 171, with 52 new games launched during the reporting period[44]. - Research and development expenses rose by 99.91% to ¥52,761,756.47, reflecting a significant increase in R&D investment[46]. Risks and Challenges - The company faces various risks including integration risks from mergers and acquisitions, human resources and management risks, technological innovation risks, and risks related to industry policies[5]. - The company is experiencing a talent shortage in key management areas, which may hinder its rapid development[73]. - The company is at risk of not keeping pace with technological advancements and industry trends, which could affect its competitive edge in the information security sector[74]. - The company faces risks related to integration after acquisitions, including potential instability in the management team of Tangren Digital, which could impact future performance[72]. Corporate Governance and Compliance - The company emphasizes the importance of accurate and complete financial reporting, with key personnel affirming the integrity of the financial statements[4]. - The company received a notice from the China Securities Regulatory Commission (CSRC) regarding an investigation for suspected violations of information disclosure laws[77]. - If the company is found guilty of significant violations, it may face suspension of its stock listing according to Shenzhen Stock Exchange rules[77]. - The company has organized internal training on information disclosure and corporate governance to prevent future issues[77]. Financial Reporting and Audit - The half-year financial report has not been audited[84]. - The financial report was approved on August 25, 2017, by the company's board of directors[174]. - The financial statements are prepared based on the going concern assumption and comply with the relevant accounting standards[176]. - The company’s financial reporting adheres to the enterprise accounting standards, reflecting its financial position, operating results, and cash flows accurately[179]. Cash Flow and Liquidity - The company's cash and cash equivalents decreased from 329,895,127.62 CNY at the beginning of the period to 262,820,286.51 CNY at the end[136]. - The net cash flow from financing activities totaled 164,000,000.00 CNY, with a net cash flow of 160,659,964.41 CNY, a significant improvement from -12,211,796.93 CNY in the previous period[155]. - The net cash flow from operating activities was -35,399,649.90 CNY, compared to -13,639,048.98 CNY in the previous period, indicating a decline in operational cash generation[154]. - The company reported a total cash outflow from operating activities of 521,303,995.66 CNY, compared to 269,153,856.99 CNY in the previous period[154].

Financial Performance - Total revenue for Q1 2017 reached ¥220,078,426.26, representing a 115.43% increase compared to ¥102,159,811.18 in the same period last year[8] - Net profit attributable to shareholders was ¥10,611,172.06, up 16.46% from ¥9,111,489.09 year-over-year[8] - Net profit excluding non-recurring items was ¥8,351,487.47, reflecting a 17.95% increase from ¥7,080,631.54 in the previous year[8] - The company's total revenue for the reporting period reached CNY 220,078,426.26, representing a year-on-year growth of 115.43%[25] - The net profit attributable to the parent company was CNY 10,611,172.06, showing a year-on-year increase of 16.46%[25] - Net profit for Q1 2017 was CNY 14,528,172.12, up from CNY 13,798,014.51 year-over-year, reflecting a growth of approximately 5.3%[56] Assets and Liabilities - The company's total assets increased by 15.89% to ¥2,070,667,883.44 from ¥1,786,720,007.45 at the end of the previous year[8] - As of March 31, 2017, the company's total assets amounted to CNY 2,070,667,883.44, an increase from CNY 1,786,720,007.45 at the beginning of the year[47] - The total current liabilities rose to CNY 632,087,998.01, compared to CNY 271,697,082.56, indicating a substantial increase of approximately 133%[49] - The company's total liabilities reached CNY 874,073,348.44, up from CNY 515,260,671.57, marking an increase of around 69.8%[49] - The company's total liabilities rose to CNY 995,533,922.19, compared to CNY 474,965,586.83 in the previous year, which is an increase of approximately 109.7%[53] Cash Flow - The net cash flow from operating activities was negative at -¥73,751,741.85, worsening by 58.90% compared to -¥46,423,018.04 in the same period last year[8] - The net cash flow from operating activities decreased by 58.87% year-on-year, primarily due to increased salary and year-end bonus payments.[24] - Cash inflow from operating activities was 218,718,668.22 CNY, significantly higher than 92,507,684.38 CNY in the previous year[63] - Cash outflow from operating activities totaled 292,470,410.07 CNY, compared to 138,930,702.42 CNY in the same period last year, reflecting increased operational costs[64] - The net cash flow from financing activities was 108,302,026.03 CNY, indicating a positive cash position from financing efforts[65] Acquisitions and Investments - The company completed the cash acquisition of 100% equity in Paojiao Sizhi, with future performance risks associated with this acquisition[10] - The company completed the cash acquisition of 100% equity in Shenzhen Paojiao Sizh Information Technology Co., Ltd. on January 17, 2017[26] - The company acquired bank loans of 100 million RMB, significantly increasing cash flow from financing activities.[24] - The company reported a total of RMB 36,169.47 million allocated to committed investment projects, with a cumulative investment of RMB 36,090 million[39] - The company utilized RMB 5,153.8 million of the raised funds for supplementary working capital and fixed asset purchases[39] Operational Challenges - The company faces risks related to talent acquisition and retention in a rapidly evolving technology sector[11] - The company is facing risks related to integration after acquisitions, including potential performance forecast risks and goodwill impairment risks[28] - There is a risk of human resource and management challenges due to a lack of mid-to-senior level talent in key operational areas[28] - The company received a notice from the China Securities Regulatory Commission regarding an investigation into potential information disclosure violations[30] - The company is actively cooperating with the investigation and has organized training to enhance the awareness of information disclosure among its executives[31] Financial Management - The company's cash and cash equivalents decreased by 66.51% compared to the beginning of the period, primarily due to share repurchases and payments for the acquisition of Shenzhen Paojiao Sizh Information Technology Co., Ltd.[24] - The company's cash and cash equivalents decreased to CNY 110,471,393.59 from CNY 329,895,127.62, reflecting a decline of approximately 66.5%[47] - The company's total equity attributable to shareholders decreased to CNY 1,128,939,037.23 from CNY 1,241,672,271.66, a decline of approximately 9.1%[53] - The company has not encountered any overdue commitments from actual controllers, shareholders, or related parties during the reporting period[36] - The company has not experienced any significant changes in the feasibility of its projects during the reporting period[39]

Financial Performance - The company's operating revenue for 2016 was ¥662,859,791.50, representing an increase of 84.17% compared to ¥359,912,426.63 in 2015[18]. - The net profit attributable to shareholders for 2016 was ¥109,549,436.73, a growth of 67.58% from ¥65,371,071.24 in 2015[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥92,281,713.25, up 65.36% from ¥55,805,689.87 in 2015[18]. - The net cash flow from operating activities for 2016 was ¥91,701,033.10, an increase of 21.99% compared to ¥75,167,993.08 in 2015[18]. - The total assets at the end of 2016 were ¥1,786,720,007.45, reflecting a 12.70% increase from ¥1,585,379,830.21 at the end of 2015[18]. - The net assets attributable to shareholders at the end of 2016 were ¥1,236,960,194.49, a rise of 10.67% from ¥1,117,709,700.20 at the end of 2015[18]. - The company achieved total revenue of ¥662,859,791.50 in 2016, an increase of 84.17% compared to ¥359,912,426.63 in the previous year[36]. - Operating profit reached ¥111,471,890.04, up 140.25% from ¥46,398,572.95 in 2015[36]. - The company reported a net profit of RMB 6,337.01 million for the year, slightly exceeding the forecast of RMB 6,300 million[102]. Profit Distribution - The company reported a profit distribution plan, proposing a cash dividend of 0.50 RMB per 10 shares, based on a total of 448,331,331 shares[4]. - The cash dividend total for 2016 was RMB 22,416,566.55, representing 100% of the profit distribution total[88]. - The cash dividend amount in 2016 was 22,416,566.55, representing 20.46% of the net profit attributable to ordinary shareholders of 109,549,436.73[93]. - The cash dividend amount in 2015 was 10,463,556.99, which accounted for 16.01% of the net profit attributable to ordinary shareholders of 65,371,071.24[93]. - The cash dividend amount in 2014 was 6,402,635.20, representing 15.48% of the net profit attributable to ordinary shareholders of 41,356,224.36[93]. - The total number of shares for the profit distribution plan as of December 31, 2016, was 448,331,331, with a cash dividend of RMB 0.50 per 10 shares[91]. Risks and Challenges - The company faces various risks including integration risks from mergers and acquisitions, human resources and management risks, and risks related to technological advancements and industry policies[4]. - The company emphasizes the importance of risk awareness for investors regarding potential stock suspension[4]. - The company faces risks related to potential suspension of its stock listing due to an ongoing investigation by the China Securities Regulatory Commission[84]. - The company faces risks related to post-merger integration and the stability of management teams from acquired entities[81]. Investments and Acquisitions - The company acquired 100% equity of Shenzhen Paojiao Sizhi Information Technology Co., Ltd. for ¥41 million, with the transaction approved by the shareholders in 2017[36]. - The company invested 28 million yuan in Beijing Minglue Software System Co., Ltd. as part of its major asset changes[31]. - The company established two investment funds in October 2016, focusing on information security and cultural creativity[37]. - The company has been actively exploring the online gaming business since 2013, with investments and acquisitions for external growth[86]. Research and Development - The company has maintained a research and development investment ratio of over 10% of sales revenue for the past three years, demonstrating a commitment to innovation[33]. - Research and development expenses amounted to ¥77,137,500, representing 11.64% of total revenue, focusing on proprietary software and hardware products[39]. - The company is investing 50 million yuan in R&D for new technologies aimed at enhancing cybersecurity solutions[168]. - The company plans to enhance R&D and technological innovation to improve core competitiveness in 2017[79]. Market and User Growth - Cumulative registered users of Tangren You reached 8.47 million, with an average monthly active user count of approximately 140,000 and an average monthly paying user count of about 16,000 in 2016[29]. - The company reported a significant increase in revenue from the Huabei region, which grew by 1,140.68% to ¥125,362,942.66[44]. - User data showed a 20% increase in active users, reaching 5 million by the end of the reporting period[168]. - The company plans to expand its product offerings in network content and behavior auditing, targeting various sectors including military, education, and finance[26]. Governance and Compliance - The company emphasizes the importance of accurate and complete information disclosure in its governance practices[163]. - The company has not faced any non-standard audit reports during the reporting period, indicating stable financial practices[104]. - The company maintains a governance structure that complies with the relevant laws and regulations, ensuring the protection of shareholder rights[178]. - The company has established a complete governance structure, including a shareholder meeting, board of directors, and supervisory board, operating independently from shareholders[182]. Employee and Management Structure - The total number of employees in the company is 1,135, with 531 in the parent company and 604 in major subsidiaries[172]. - The company has established a performance evaluation and incentive system for its directors and senior management, ensuring transparency and compliance with regulations[180]. - The management team has committed to a minimum tenure of 60 months to maintain competitive advantage and ensure the sustainable development of Tangren Digital[99]. - The company emphasizes talent development and plans to enhance internal training mechanisms in 2017 to support rapid growth[175]. Financial Management - The company has not engaged in any major guarantees or leasing activities during the reporting period, reflecting a conservative financial strategy[129][128]. - The company has no overdue principal or accumulated income from entrusted financial management, indicating effective cash management[132]. - The company has not reported any major contracts or loan activities, maintaining a low-risk profile in its financial dealings[134][133]. - The company has not made any significant equity investments during the reporting period[61]. Audit and Internal Controls - The audit opinion was a standard unqualified opinion, indicating that the financial statements fairly reflect the company's financial position as of December 31, 2016[200]. - The audit was conducted by Beijing Yongtuo Accounting Firm, with the report signed on April 24, 2017[197]. - The company has implemented necessary internal controls to prevent significant misstatements due to fraud or error[198]. - There were no significant internal control deficiencies reported during the reporting period, indicating effective internal control systems[191].

Financial Performance - Total revenue for the reporting period reached CNY 134,126,067.88, a 54.27% increase year-on-year[7] - Net profit attributable to shareholders increased by 40.79% to CNY 21,801,685.82 for the reporting period[7] - The net profit after deducting non-recurring gains and losses rose by 50.54% to CNY 20,544,695.11[7] - Basic earnings per share increased by 66.67% to CNY 0.05 for the reporting period[7] - The weighted average return on equity improved to 1.86%, up from -0.48% in the previous year[7] - The operating profit for the quarter was CNY 23,978,103.74, compared to CNY 9,923,805.33 in the same period last year, reflecting a growth of approximately 141.5%[51] - The net profit for the quarter reached CNY 25,835,031.27, a significant increase from CNY 14,765,698.31, marking a growth of around 75.0%[51] - The total operating revenue for the third quarter was CNY 134,126,067.88, an increase from CNY 86,944,425.91 in the previous period, representing a growth of approximately 54.0%[50] - The total operating revenue increased to ¥377,670,489.18 from ¥206,929,645.46, representing a growth of approximately 82.5% year-over-year[58] - Net profit for the period reached ¥82,052,861.89, compared to ¥26,822,363.33 in the previous period, marking a growth of approximately 205.5%[59] Cash Flow and Liquidity - The company reported a net cash flow from operating activities of -CNY 15,913,129.98, a decrease of 68.63% year-to-date[7] - The net cash flow from operating activities increased by 34.81 million yuan, up 68.63% year-on-year, primarily due to increased sales collections during the reporting period[21] - The net cash flow from investing activities decreased by 81.79 million yuan, a decline of 112.56% compared to the previous year, mainly due to the acquisition of subsidiaries in the prior year[21] - The net cash flow from financing activities decreased by 214.52 million yuan, a drop of 106.04% year-on-year, primarily due to the absence of a directed share issuance that occurred in the previous year[22] - The company reported a net cash outflow from operating activities of ¥15,913,129.98, an improvement from a larger outflow of ¥50,723,529.69 in the previous period[66] - The net cash flow from investment activities was -53,096,712.96 CNY, an improvement from -196,110,777.71 CNY year-over-year, suggesting better investment management[70] - Cash and cash equivalents at the end of the period totaled 35,670,231.93 CNY, down from 162,819,249.30 CNY in the previous period, indicating a liquidity squeeze[71] - The company reported a total cash outflow from operating activities of 254,826,006.79 CNY, up from 189,360,570.95 CNY in the previous period, reflecting increased operational costs[70] Asset Management - Total assets increased by 5.94% to CNY 1,679,621,879.81 compared to the end of the previous year[7] - As of the end of the reporting period, cash and cash equivalents decreased by CNY 180.71 million, a reduction of 52.34%, primarily due to cash payments for investment activities[19] - Accounts receivable increased by CNY 77.15 million, an increase of 63.42%, mainly due to revenue growth leading to higher accounts receivable[19] - Inventory increased by CNY 49.21 million, an increase of 79.31%, mainly due to increased project stocking leading to higher outgoing goods[19] - Total non-current assets grew to $1.12 billion from $1.03 billion, driven by increases in available-for-sale financial assets and investment properties[43] - The company reported a significant increase in accounts payable, rising to $82.62 million from $60.66 million, indicating higher operational expenses or purchases[44] Investment and Restructuring - The company is actively pursuing a major asset restructuring, with plans to disclose a restructuring proposal by October 28, 2016[11] - The company confirmed that it has fulfilled its capital contribution obligations to Tangren Digital, with no instances of false or delayed contributions reported[29] - The company plans to disclose the major asset restructuring proposal or report by October 28, 2016, following the suspension of its stock trading since August 29, 2016[35] - The acquisition of Suzhou Tangren Digital Technology Co., Ltd. was completed with a cash payment of CNY 19.69 million, achieving 100% of the planned investment[32] Risks and Governance - The company is facing integration risks related to acquisitions, particularly concerning the performance of Tangren Digital[10] - There are talent risks due to rapid expansion, necessitating improvements in recruitment and retention strategies[10] - The company has established commitments from key executives to avoid competition during their tenure and for three years post-employment, safeguarding business integrity[28] - The company is committed to reducing and regulating related party transactions, enhancing transparency and governance[28] - The management team has committed to not utilizing related party relationships for personal gain[29] - The company has ensured that all agreements signed by Tangren Digital do not contain restrictive clauses that would hinder asset transfers[29] Shareholder Commitments - The company announced a cash dividend of RMB 0.35 per 10 shares for the 2015 fiscal year, with a total share capital adjustment to 448,331,331 shares after the dividend distribution[36] - The company received 10,292,106.70 CNY in cash for dividend distributions, compared to 6,221,600.00 CNY in the previous period, indicating a commitment to shareholder returns despite cash flow issues[71] - The compensation obligations are tied to the company's performance, ensuring accountability and alignment with shareholder expectations[28]

Financial Performance - Total revenue for the first half of 2016 reached ¥243,544,421.30, representing a 102.98% increase compared to ¥119,985,219.55 in the same period last year[18]. - Net profit attributable to ordinary shareholders was ¥48,360,522.93, a significant increase of 261.03% from ¥13,395,301.69 year-on-year[18]. - The net profit after deducting non-recurring gains and losses was ¥44,721,981.88, up 438.17% from ¥8,309,945.74 in the previous year[18]. - Basic earnings per share increased to ¥0.11, reflecting a 450.00% rise from ¥0.02 in the previous year[18]. - The company achieved total operating revenue of CNY 243.54 million in the first half of 2016, representing a year-on-year growth of 102.98%[27]. - Net profit attributable to shareholders of the parent company reached CNY 48.36 million, an increase of 261.03% compared to the same period last year[27]. - The company reported a total profit for the first half of 2016 of CNY 62,452,113.52, compared to CNY 14,254,806.47 in the same period of 2015, reflecting an increase of about 338.5%[115]. - The company reported a net profit margin of 10% for the first half of 2016, which is an improvement from 8% in the same period last year[157]. Cash Flow and Liquidity - The net cash flow from operating activities improved to -¥13,639,048.98, a 60.58% reduction in losses compared to -¥34,597,019.95 in the same period last year[18]. - The company’s operating cash flow improved by 60.58%, resulting in a net cash flow from operating activities of CNY -13.64 million[28]. - Total cash inflow from operating activities was ¥255,514,808.01, compared to ¥95,911,016.24 in the last period[122]. - Cash and cash equivalents at the end of the period totaled ¥284,810,178.33, up from ¥179,251,783.93 in the last period[124]. - The company received tax refunds amounting to ¥9,906,154.28, an increase from ¥6,457,167.06 in the prior period[122]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,636,680,224.22, a 3.24% increase from ¥1,585,379,830.21 at the end of the previous year[18]. - The company’s total liabilities were CNY 483,592,570.26, slightly up from CNY 481,840,847.94 at the beginning of the period[108]. - The equity attributable to shareholders increased to CNY 1,159,401,064.20 from CNY 1,117,709,700.20, marking a growth of about 3.7%[108]. - The company's current assets totaled CNY 583,430,636.70, compared to CNY 560,109,237.52 at the beginning of the period, reflecting an increase of approximately 4.7%[106]. - The company's total liabilities increased to CNY 452,714,737.35 from CNY 412,795,600.55, reflecting a rise of approximately 9.7%[115]. Research and Development - Research and development expenses increased by 186.40% to CNY 26.39 million, reflecting a significant investment in R&D[28]. - Ongoing research and development efforts are set to increase, with an investment of 100 million RMB planned for new technology initiatives in 2016[157]. Market Position and Strategy - The company is positioned to benefit from the growing demand for network security solutions, as highlighted by significant global cybersecurity incidents in the first half of 2016[37]. - The company is actively pursuing its annual operational plan, which has shown positive results in the first half of 2016[42]. - The company is exploring potential mergers and acquisitions to enhance its market position, with a budget of 500 million RMB allocated for strategic acquisitions in the next 12 months[157]. - The company plans to continue its market expansion and product development strategies in the upcoming quarters[135]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company distributed a cash dividend of 0.35 RMB per share for the 2015 fiscal year, based on a total share count of 298,958,771 shares, resulting in a total cash distribution of approximately 104.63 million RMB[59]. - The total number of shareholders at the end of the reporting period is 31,766[93]. - The largest shareholder, Jing Xiaojun, holds 39.46% of shares, totaling 176,903,996 shares, with 55,982,396 shares pledged[93]. Risks and Challenges - There were no significant risks reported during the period[24]. - The company is facing risks related to talent acquisition and retention, which may impact its rapid growth and operational efficiency[43]. - The integration risks following acquisitions remain a concern, particularly regarding the performance of Tangren Digital[43]. - The evolving IT environment and emerging technologies pose strategic and innovation risks that the company must navigate to maintain its competitive edge[43]. Compliance and Governance - The financial statements were approved by the board on August 5, 2016, indicating a commitment to transparency and governance[141]. - The company emphasizes compliance with laws and regulations regarding related party transactions[75]. - The financial report for the first half of 2016 was not audited, which may impact the reliability of the financial data presented[103]. Investment and Capital Management - The company reported a total fundraising amount of RMB 42,793,000, with cumulative investment of RMB 41,244,000[45]. - The company plans to use excess raised funds for equity investments and fixed asset purchases, with RMB 500 million allocated for equity investments and RMB 4,281.54 million for fixed assets[49]. - The total amount of funds raised for investment projects was RMB 36,169.4 million, with a cumulative actual investment of RMB 12,408.2 million[49].

Financial Performance - Total revenue for Q1 2016 reached ¥102,159,811.18, representing a 91.13% increase compared to ¥53,450,300.13 in the same period last year[7] - Net profit attributable to shareholders was ¥9,111,489.09, up 124.78% from ¥4,053,583.97 year-over-year[7] - Net profit excluding non-recurring items surged to ¥7,080,631.54, a remarkable increase of 1,352.87% from ¥487,356.16 in the previous year[7] - Basic earnings per share rose to ¥0.0305, reflecting a 124.26% increase compared to ¥0.0136 in the same quarter last year[7] - The company reported a total comprehensive income of CNY 13,798,014.51 for the quarter, compared to CNY 3,911,073.00 in the same period last year[52] Assets and Liabilities - The company's total assets at the end of the reporting period were ¥1,600,262,835.63, a slight increase of 0.94% from ¥1,585,379,830.21 at the end of the previous year[7] - The net assets attributable to shareholders increased to ¥1,128,627,264.28, marking a 0.98% rise from ¥1,117,709,700.20 at the end of the last fiscal year[7] - Total current assets increased to ¥577,946,745.23 from ¥560,109,237.52, representing a growth of approximately 1.5%[42] - Total non-current assets decreased slightly to ¥1,022,316,090.40 from ¥1,025,270,592.69, a decline of about 0.3%[43] - Total liabilities decreased marginally to ¥481,119,763.86 from ¥481,840,847.94, a reduction of approximately 0.15%[44] - Total equity increased to ¥1,119,143,071.77 from ¥1,103,538,982.27, showing a growth of about 1.4%[45] Cash Flow - The company reported a net cash flow from operating activities of -¥46,423,018.04, worsening by 53.25% compared to -¥30,292,767.41 in the same period last year[7] - Operating cash inflow totaled ¥92,507,684.38, a significant increase from ¥34,783,018.59 in the previous period[58] - Operating cash outflow reached ¥138,930,702.42, compared to ¥65,075,786.00 in the prior period, resulting in a net cash flow from operating activities of -¥46,423,018.04[59] - Cash and cash equivalents at the end of the period were ¥297,516,112.08, down from ¥223,888,216.59 year-over-year[60] Operational Risks - The company faces integration risks post-acquisition, including potential profitability forecast risks and goodwill impairment risks[9] - There is a noted risk of talent shortages in management and technical areas, which could hinder the company's growth amidst the industry's rapid development[9] - The company emphasizes the need for continuous innovation to keep pace with evolving IT environments and emerging technologies, which poses a risk if not adequately addressed[10] Shareholder Commitments and Compensation - The company committed to a net profit of no less than 45 million yuan for 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 established a compensation obligation for stakeholders if the actual net profit does not meet the promised figures during the commitment period[25] - The compensation obligation for profit is set at a maximum of CNY 602.56 million, which is the total transaction price for the acquisition[26] - If the cumulative actual net profit of Tangren Digital is less than the promised net profit by the end of the reporting period, the compensation amount will be calculated based on the formula provided, ensuring accurate financial accountability[26] - The company emphasizes protecting the interests of its shareholders, especially minority shareholders, through these compensation and repurchase mechanisms[27] Investment and Fund Utilization - The total amount of raised funds is CNY 427.93 million, with a cumulative investment of CNY 412.44 million as of the reporting period[32] - The company has committed to not using raised funds for financial investments or other non-operational purposes[30] - The company has ensured that no related parties will occupy or misappropriate the raised funds[30] - The company has reported no significant changes in the feasibility and expected benefits of the investment projects[32] Expenses - Sales expenses rose by RMB 7.83 million, an increase of 115.36%, attributed to a rise in personnel and related costs[20] - Management expenses increased by RMB 18.96 million, up 115.21%, mainly due to changes in the scope of consolidation[20] - The company experienced a significant increase in sales expenses, which rose to CNY 14,620,220.87 from CNY 6,788,752.56[51] - Management expenses also increased to CNY 35,418,321.67, up from CNY 16,457,609.31 in the previous year[51]

Financial Performance - The company achieved total operating revenue of RMB 359.91 million in 2015, representing a year-on-year growth of 21.27%[91]. - Operating profit for the year was RMB 46.39 million, an increase of 49.67% compared to the previous year[91]. - Net profit attributable to shareholders reached RMB 65.37 million, up 58.07% year-on-year[91]. - The company's operating revenue for 2015 was CNY 359,912,426.63, representing a year-over-year increase of 21.27% compared to CNY 296,780,115.60 in 2014[19]. - The net profit attributable to shareholders for 2015 was CNY 65,371,071.24, a significant increase of 58.07% from CNY 41,356,224.36 in 2014[19]. - The net cash flow from operating activities reached CNY 75,167,993.08, marking a substantial increase of 140.13% compared to CNY 31,302,727.51 in the previous year[19]. - The total assets of the company at the end of 2015 amounted to CNY 1,585,379,830.21, reflecting a 152.41% increase from CNY 628,105,029.18 at the end of 2014[19]. - The net assets attributable to shareholders increased to CNY 1,117,709,700.20, up 144.89% from CNY 456,421,703.20 in 2014[19]. - The basic and diluted earnings per share for 2015 were both CNY 0.26, representing a 44.44% increase from CNY 0.18 in 2014[19]. Dividends and Share Capital - The company reported a cash dividend of 0.35 RMB per 10 shares and a capital reserve increase of 5 shares for every 10 shares held[6]. - The proposed cash dividend distribution for 2015 is RMB 0.35 per 10 shares, totaling RMB 10,463,556.99, which is 16.01% of the net profit attributable to shareholders[106]. - The cash dividend accounted for 100% of the profit distribution total, with a total cash dividend amounting to RMB 10,463,556.99[104]. - In 2015, the company distributed cash dividends of RMB 0.55 per share and conducted a capital reserve increase, doubling its total share capital to 232,823,098 shares[103]. - The company plans to increase its share capital by 5 shares for every 10 shares held, based on a total share capital of 298,958,771 shares[105]. - The total share capital increased from 116,411,549 shares to 232,823,098 shares after a cash dividend of 0.55 RMB per 10 shares and a capital reserve conversion on June 2, 2015[154]. - Following the issuance of new shares, the total share capital rose to 298,958,771 shares as of September 21, 2015[154]. Acquisitions and Restructuring - The company completed a significant asset restructuring involving cash and share issuance to acquire 100% of Suzhou Tangren Digital Technology Co., Ltd. and 51% of Beijing Yahon Century Technology Development Co., Ltd., resulting in goodwill of CNY 70,768,000[34]. - The acquisition of 51% of Beijing Yahon Century Technology Development Co., Ltd. was completed for a total consideration of 15 million RMB on March 30, 2015[115]. - The acquisition of 100% of Tangren Digital was approved on September 19, 2014, and the transaction was finalized on August 18, 2015, following regulatory approval[116]. - The company has expanded its consolidation scope by adding two new subsidiaries: Beijing Yahon Century Technology Development Co., Ltd. and Suzhou Tangren Digital Technology Co., Ltd.[115]. Research and Development - R&D investment has consistently accounted for over 10% of the company's sales revenue for the past three years, demonstrating a strong commitment to innovation[36]. - The company has established four major R&D bases in key cities, enhancing its research capabilities and market responsiveness[35]. - R&D investment totaled RMB 53.33 million, accounting for 14.82% of operating revenue, focusing on proprietary software and hardware products[46]. - The company holds over 40 national core technologies and has applied for 70 patents, with 12 patents granted, including 5 invention patents[36]. - Over 55% of the company's 871 employees are R&D personnel, with nearly 60% holding a bachelor's degree or higher, enhancing its innovation capabilities[35]. Talent Management - The company is experiencing a shortage of mid-to-senior talent in management, marketing, and technology development, which may hinder its growth[4]. - The company is focused on enhancing employee retention strategies to mitigate the risk of losing core technical personnel[4]. - The company is focusing on talent development through external recruitment and internal training to strengthen its workforce and enhance team cohesion[97]. - The company has a remuneration policy that includes basic salary, performance pay, social security, and housing fund[177]. Risks and Challenges - The company faces integration risks post-merger, including profit forecast realization risk and goodwill impairment risk[4]. - The company anticipates significant revenue growth from new projects, but increased depreciation and amortization costs may impact future earnings if projects do not meet expected performance[5]. - The rapid growth of user data and new technologies increases the complexity of information security, requiring higher performance and functionality from security products[5]. - Risks include integration challenges post-acquisition, potential talent shortages in key management areas, and the need for effective retention strategies for core technical personnel[97]. - The company faces technological advancement risks due to the evolving IT environment and the need for timely product upgrades[99]. Corporate Governance - The company’s financial report is guaranteed to be true, accurate, and complete by its board and management[3]. - The management team has pledged to ensure that all related party transactions are conducted at fair market prices and comply with legal requirements[109]. - The company has established specialized committees under the board, including an audit committee and a remuneration and assessment committee, with independent directors holding a two-thirds majority[182]. - The audit committee conducted internal reviews of the company's 2014 annual report and 2015 quarterly reports to ensure the completeness and accuracy of major financial disclosures[193]. - The company has reported zero significant deficiencies in internal controls during the reporting period, indicating effective oversight[198]. Market Position and Strategy - The company has established itself as a leading provider of comprehensive internet security solutions in China, participating in major national cybersecurity projects and setting multiple industry standards[35]. - The company plans to consolidate its existing market position while actively expanding into new markets, particularly in public wireless network security management[95]. - The network security industry in China is expected to grow over 30% in 2015, with the market size surpassing RMB 67 billion[94]. - The company has initiated four strategic focuses: expanding market share, enhancing R&D capabilities, improving service systems, and building a strong brand[95].