Business Performance and Financial Results - The company's operating revenue for the reporting period was ¥63,087,564.82, a decrease of 33.38% compared to the same period last year[23]. - The net loss attributable to shareholders was ¥45,695,495.09, representing a significant increase of 466.32% from the previous year's loss of ¥8,068,838.72[23]. - The net cash flow from operating activities was -¥59,525,962.72, a decline of 72.04% compared to -¥34,600,843.92 in the same period last year[23]. - The total assets at the end of the reporting period were ¥816,682,541.24, down 7.59% from ¥883,740,336.94 at the end of the previous year[23]. - The weighted average return on net assets was -5.66%, a decrease of 4.65% from -1.01% in the previous year[23]. - The company's operating revenue for the first half of 2022 was 63.09 million yuan, a decrease of 33.38% compared to the same period last year[48]. - The operating cost for the same period was 31.45 million yuan, down 10.98% year-on-year, indicating a decline in sales volume and a drop in the gross profit margin of high-margin products[48]. - The net profit attributable to shareholders was -45.70 million yuan, a decrease of 466.32% compared to the previous year, primarily due to reduced sales and increased expenses[46]. - The company's total revenue from the electronic payment password system was CNY 55,354,647.66, down 34.60% year-on-year, with a gross margin of 51.56%[50]. - The revenue from the bill anti-counterfeiting industry was CNY 55,446,065.26, also down 34.50% year-on-year, with a gross margin of 51.63%[50]. Research and Development - The company is currently in a critical period of business expansion and transformation, with a significant increase in R&D expenses, which now account for a large proportion of operating revenue, posing risks to operating performance[5]. - The company is focusing on technological innovation in the banking mobile business sector to align with the digital transformation needs of the banking industry, although there are risks associated with market acceptance[4]. - The company's R&D model includes internal development, commissioned development, and partnerships with universities and research institutions, ensuring strong innovation capabilities[35]. - R&D expenses increased to 45.70 million yuan, a year-on-year growth of 11.81%, accounting for 72.44% of operating revenue, reflecting the company's focus on innovation[46]. - The company has recognized the risks associated with rising costs due to increased R&D investments and the need for innovation in a rapidly changing financial technology landscape[5]. - The company is actively exploring and adjusting its R&D strategies in response to the evolving market demands in the financial technology sector[70]. - The company is committed to enhancing data construction capabilities as a key factor in its digital transformation strategy[32]. Market Position and Strategy - The company plans to maintain its leading position in the traditional anti-counterfeiting industry through proactive marketing strategies, aiming to alleviate operational pressure during the transformation period[8]. - The company aims to leverage its advantages in financial information security and anti-counterfeiting technology to promote the commercial application of its corporate banking platform and related technologies[8]. - The company has established long-term stable partnerships with major commercial banks, enhancing its market position in financial information security[42]. - The company has established a nationwide market sales network, utilizing direct sales and bank agency sales to meet customer needs[36]. - The company is committed to sustainable development and business transformation through a deep understanding of fintech innovation trends and established marketing channels[8]. - The company is promoting the application of paper texture anti-counterfeiting technology in product traceability and other anti-counterfeiting fields[70]. Operational Challenges - The ongoing pandemic has impacted the company's operations, affecting sales and technical personnel travel, leading to delays in bank projects and procurement issues, which directly influence product sales[6]. - The traditional electronic payment password system has been widely used in banks for many years, but increasing market penetration may lead to intensified competition, impacting performance[7]. - The company experienced a rise in period expenses, with sales, management, and R&D expenses all increasing compared to the previous year[44]. - The sales of traditional electronic payment password systems were significantly impacted by market competition and the COVID-19 pandemic, particularly in the East China region[45]. - Increased expenditure on research and development is putting pressure on the company's operating performance as it seeks to upgrade and expand its business[89]. - The company is facing risks related to industry transformation and technological innovation, particularly in the context of the banking sector's digital transformation[89]. Financial Management and Investments - The company will not distribute cash dividends, issue bonus shares, or increase capital from reserves[9]. - The company has not reported any changes in its registered address, office address, or contact information during the reporting period[20]. - The company has not sold any significant assets or equity during the reporting period, maintaining its asset base[84][85]. - The company has implemented strict approval procedures for the use of raised funds to protect investor interests[66]. - The company has not reported any significant changes in the use of raised funds during the reporting period[71]. - The company has completed all investment projects using raised funds, totaling RMB 9,338.58 million[66]. - The company has no restricted assets as of the end of the reporting period[61]. - The company has not engaged in any major guarantees during the reporting period[128]. - The company has not encountered any issues or discrepancies in the management and use of raised funds[70]. Employee and Corporate Governance - The company emphasizes employee welfare by providing various benefits, including commercial insurance and meal subsidies, to enhance employee satisfaction[104]. - The company maintains long-term strategic partnerships with suppliers, focusing on quality and service to build a competitive supply chain[104]. - The company has not faced any environmental penalties and adheres strictly to environmental protection laws, with no pollution incidents reported[101]. - The company has not reported any environmental pollution incidents or violations of environmental regulations during the reporting period[105]. - The company has not engaged in any investor communication activities during the reporting period[92]. - The company has not experienced any major litigation or arbitration matters during the reporting period[114]. - The company has not reported any preferred shares or bond-related situations during the reporting period[148][151]. Future Outlook - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2023[75]. - New product development includes the launch of a next-generation smart device, expected to contribute an additional 1,000 million yuan in revenue in 2023[75]. - The company has set a performance guidance for 2023, projecting a revenue growth of 8% to 12%[75]. - The company is exploring potential mergers and acquisitions to enhance its technology capabilities and market reach[75]. - Future guidance indicates a cautious outlook, with expectations of gradual recovery in market demand[177].

Financial Performance - The company's operating revenue for 2021 was ¥200,327,185.52, a decrease of 6.29% compared to ¥213,764,371.81 in 2020[25]. - Net profit attributable to shareholders was ¥26,579,604.09, a significant increase of 232.66% from a loss of ¥20,035,532.47 in 2020[25]. - The net cash flow from operating activities was -¥29,702,322.28, a decline of 247.38% compared to ¥20,153,614.22 in 2020[25]. - Basic and diluted earnings per share were both ¥0.0791, reflecting a 232.72% improvement from -¥0.0596 in 2020[25]. - Total assets at the end of 2021 amounted to ¥883,740,336.94, an increase of 1.39% from ¥871,604,271.45 at the end of 2020[25]. - The company's net assets attributable to shareholders rose to ¥830,734,809.16, up 3.31% from ¥804,155,205.07 in 2020[25]. - The company's total sales revenue for 2021 was approximately 200.33 million yuan, a decrease of 6.29% compared to the previous year[52]. - The electronic payment password system generated sales of about 174.02 million yuan, down 5.94% year-on-year[57]. - The company's revenue from the anti-counterfeiting industry was approximately ¥175.54 million, a decrease of 6.05% year-over-year, with a gross margin of 63.10%[59]. - The gross profit margin for traditional business products remained stable despite a slight decline in sales revenue[49]. Research and Development - The company reported a significant increase in R&D expenses, which have risen rapidly and now constitute a large proportion of operating revenue, posing a risk to operating performance[7]. - R&D expenses for 2021 amounted to approximately 99.18 million yuan, an increase of 15.99% compared to the previous year, representing 44.79% of total revenue[53]. - The company's R&D investment in 2021 amounted to ¥89,728,260.73, representing 44.79% of its operating revenue, an increase from 35.63% in 2020[71]. - The number of R&D personnel increased by 22.99% from 261 in 2020 to 321 in 2021, with a notable rise in the proportion of personnel holding bachelor's degrees[70]. - The company applied for 10 new invention patents and was granted 6 during the reporting period, bringing the total number of effective patents to 64[50]. - The company’s R&D capabilities have been enhanced through CMMI-4 certification, ensuring alignment with international project management standards[46]. Strategic Initiatives - The company is actively embracing opportunities in the financial industry transformation, focusing on technological innovation in the corporate mobile banking sector to meet market demands[10]. - The company plans to maintain its leading position in the traditional anti-counterfeiting industry through proactive marketing strategies during its transformation phase[10]. - The company is committed to advancing its corporate mobile payment platform and anti-counterfeiting technologies to achieve sustainable development and business transformation[10]. - The company’s digital transformation efforts are aligned with the broader banking industry's shift towards digital networks and customized services[19]. - The company aims to build an ecological service system by integrating various resources needed for enterprise operations, enhancing the overall service offering[45]. - The company is positioned as a leader in the financial information security sector, driving the digital transformation of corporate banking services[42]. Financial Technology and Innovation - The financial technology sector is undergoing rapid changes, and the company faces risks associated with industry transformation and competition[6]. - The company’s fintech investments are focused on building digital financial information infrastructure, including AI and blockchain applications[39]. - The company has implemented the "YinQitong" public business platform, which is currently in use by dozens of banks, enhancing its financial technology capabilities[71]. - The company’s "YinQitong" platform integrates various resources to provide comprehensive digital services for enterprises, enhancing user engagement and expanding the customer base[43]. - The company is focusing on the "YinQitong" business platform to enhance digital transformation in corporate banking, aiming to improve service capabilities and create a new financial service ecosystem for small and micro enterprises[108]. Governance and Management - The company emphasizes the importance of risk awareness among investors regarding future plans and performance forecasts[5]. - The company has maintained a stable management team, with no resignations or dismissals reported during the year[121]. - The board includes members with extensive backgrounds in technology and finance, such as Wei Kaiyan, who has led significant projects recognized by national awards[122]. - The company has a diverse board with international experience, including members from the UK, Singapore, and Hong Kong[123]. - The total remuneration paid to the board of directors, supervisors, and senior management in 2021 amounted to CNY 6.6679 million[130]. - The company has a structured remuneration management system for its directors and senior management, established in February 2011[130]. Shareholder and Financial Management - The company will not distribute cash dividends, issue bonus shares, or increase capital from reserves[11]. - The company reported a total shareholding of 53,461,500 shares at the beginning of the period, with a decrease of 1,605,000 shares, resulting in an ending total of 51,856,500 shares[121]. - The company has not experienced any changes in the tenure of directors, supervisors, or senior management during the reporting period[121]. - The company has not sold any significant assets or equity during the reporting period[102][103]. - The company has not made any changes to the use of raised funds during the reporting period[101]. - The company has not engaged in any significant related party transactions during the reporting period[174]. Compliance and Internal Control - The company has established a comprehensive internal control system, covering governance, procurement, R&D, sales, and human resources[147]. - There were no significant internal control deficiencies identified during the reporting period[148]. - The company has maintained a focus on compliance with relevant laws and regulations throughout its operations[137]. - The financial report indicates that the company has not faced any penalties from regulatory authorities in the past three years[130]. - The company has not undergone any bankruptcy restructuring during the reporting period[172]. Environmental and Social Responsibility - The company strictly adhered to environmental protection laws and did not face any administrative penalties related to environmental issues during the reporting period[155]. - The company implemented various management techniques to enhance operational efficiency and reduce carbon emissions, including paperless and remote work practices[155]. - The company has a comprehensive employee welfare system, including social insurance and additional commercial insurance for major illnesses and accidents[157]. - The company has not disclosed any significant environmental issues and has maintained compliance with environmental regulations throughout the reporting period[159].

Financial Performance - The company's revenue for Q1 2022 was ¥36,769,436.07, a decrease of 2.20% compared to ¥37,597,637.18 in the same period last year[3]. - The net profit attributable to shareholders was -¥17,732,814.47, representing a decline of 356.72% from -¥3,882,640.94 year-on-year[3]. - Total operating revenue for Q1 2022 was CNY 36,769,436.07, a decrease of 2.2% compared to CNY 37,597,637.18 in the previous period[22]. - Net profit for Q1 2022 was a loss of CNY 15,966,432.40, compared to a loss of CNY 897,353.74 in the same period last year[24]. - The company reported a basic and diluted earnings per share of -0.0528, compared to -0.0116 in the previous period[25]. Cash Flow and Liquidity - The net cash flow from operating activities was -¥36,073,205.94, a decrease of 4.63% compared to -¥34,476,890.09 in the previous year[7]. - Cash inflow from operating activities totaled CNY 30,402,843.26, down from CNY 40,591,703.98 in the previous period[27]. - The total cash and cash equivalents at the end of the period were 80,540,774.38 CNY, an increase from 75,554,265.27 CNY in the previous year[29]. - The company experienced a net decrease in cash and cash equivalents of -35,433,065.97 CNY, compared to -43,792,282.80 CNY in the previous year, indicating a slight improvement in cash management[29]. Assets and Liabilities - The company's total assets decreased by 4.61% to ¥843,003,735.61 from ¥883,740,336.94 at the end of the previous year[3]. - Total liabilities amounted to CNY 19,687,220.89, compared to CNY 44,457,389.82 in the previous period[21]. - The total current assets decreased from RMB 468,537,131.71 to RMB 431,776,911.42, a reduction of about 7.8%[19]. - The company's non-current assets totaled RMB 411,226,824.19, slightly down from RMB 415,203,205.23, indicating a decrease of around 1.2%[19]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 37,627[9]. - The number of restricted shares held by the controlling shareholder Wei Kaiyan decreased from 2,877,433 to 2,164,933 after the release of 712,500 shares[12]. - The top ten shareholders hold a total of 52,311,452 shares, representing a significant portion of the company's equity structure[10]. Research and Development - Research and development expenses increased by 19.18% to ¥23,485,621.65 from ¥19,705,731.70 in the same period last year[7]. - Research and development expenses rose to CNY 23,485,621.65, an increase of 19.0% from CNY 19,705,731.70 in the previous period[22]. Investment Activities - The company plans to use up to RMB 100 million of idle raised funds for cash management, investing in low-risk financial products with a maximum investment period of twelve months[14]. - The company has engaged in wealth management activities, including the redemption of RMB 7 million principal from a wealth management product with a return of RMB 36.86 thousand[15]. - The company has also utilized its own funds for wealth management, with a total of RMB 20 million invested in various financial products, yielding returns of RMB 16.77 thousand and RMB 30.37 thousand from different products[16]. Operational Efficiency - The company experienced a significant increase in sales expenses, which reached CNY 6,998,124.18, compared to CNY 6,281,701.20 in the previous period[22]. - The cash flow from operating activities totaled 66,476,049.20 CNY in outflows, compared to 75,068,594.07 CNY in the previous year, indicating improved operational efficiency[28]. Audit and Reporting - The company did not conduct an audit for the first quarter report, which may affect the reliability of the financial data presented[29].

Financial Performance - The company's revenue for Q3 2021 was ¥48,892,711.54, a decrease of 9.57% compared to the same period last year[3]. - The net profit attributable to shareholders was -¥10,081,204.61, representing a decline of 150.95% year-over-year[3]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥10,682,354.61, down 165.91% from the previous year[3]. - The basic earnings per share for Q3 2021 was -¥0.0300, a drop of 150.00% year-over-year[3]. - The net profit for Q3 2021 was -5,879,813.36 CNY, a significant decrease compared to the net profit of 13,974,548.12 CNY in the same period last year, representing a decline of approximately 142%[20]. - The operating profit for Q3 2021 was 3,215,987.15 CNY, down from 20,124,730.98 CNY in Q3 2020, indicating a decrease of about 84%[20]. - The total comprehensive income for Q3 2021 was -5,879,813.36 CNY, contrasting with 13,974,548.12 CNY in Q3 2020, representing a decline of approximately 142%[21]. - The basic and diluted earnings per share for Q3 2021 were both -0.0540 CNY, compared to 0.0055 CNY in the same period last year, indicating a negative shift in earnings[21]. Cash Flow and Liquidity - The operating cash flow for the year-to-date period was -¥48,247,332.19, a significant decrease of 8,540.08% compared to the same period last year[3]. - Cash flow from operating activities showed a net outflow of -48,247,332.19 CNY, compared to a minor outflow of -558,412.96 CNY in the previous year[24]. - Total cash and cash equivalents at the end of Q3 2021 were 74,293,237.44 CNY, down from 86,979,026.00 CNY at the end of Q3 2020, reflecting a decrease of approximately 14.6%[25]. - Cash and cash equivalents decreased to ¥319,293,237.44 as of September 30, 2021, down from ¥400,350,183.87 at the end of 2020, a decline of 20.2%[15]. Assets and Liabilities - The total assets at the end of the reporting period were ¥828,496,397.79, a decrease of 4.95% from the end of the previous year[3]. - Total assets decreased to ¥828,496,397.79 as of September 30, 2021, down from ¥871,604,271.45 at the end of 2020, a decline of 4.9%[16]. - The company's total equity as of September 30, 2021, was ¥802,072,008.84, slightly down from ¥807,951,822.20 at the end of 2020, a decrease of 0.9%[17]. - Total liabilities decreased to ¥26,424,388.95 as of September 30, 2021, down from ¥63,652,449.25 at the end of 2020, a significant decrease of 58.6%[17]. Operating Performance - Total operating revenue for Q3 2021 was ¥143,592,356.71, a decrease of 9.4% compared to ¥157,919,442.89 in Q3 2020[19]. - Total operating costs increased to ¥148,687,911.62 in Q3 2021, up from ¥140,648,922.16 in Q3 2020, representing an increase of 5.4%[19]. - The company reported a decrease in product sales revenue and cash inflow from operations, leading to a substantial decline in net cash flow from operating activities[7]. - The total revenue from sales of goods and services received was 143,322,178.21 CNY, a decrease from 153,330,338.03 CNY in the previous year[24]. Research and Development - The company experienced a significant increase in R&D expenses, which rose by ¥18,612,900 compared to the previous year due to increased investment and personnel[7]. - Research and development expenses rose significantly to ¥63,195,965.90 in Q3 2021, compared to ¥44,583,050.26 in Q3 2020, marking an increase of 41.7%[19]. Investment Income - The company reported cash inflow from investment activities of 338,367,202.88 CNY, a significant increase from 135,947,085.05 CNY in the previous year, marking an increase of about 148%[24]. - The company reported a significant increase in investment income received, totaling 7,333,567.08 CNY, compared to 3,447,085.05 CNY in the previous year, marking an increase of approximately 112%[24]. Other Financial Information - Non-recurring gains included government subsidies of ¥706,000 and dividends from Yunqi Fund amounting to ¥6,564,715[5]. - Interest income from financial products purchased with idle funds amounted to ¥9.12 for a product redeemed in Q3 2021[11]. - The company approved the use of up to ¥14,000 million of idle self-owned funds for low-risk financial products, with a rolling usage policy[12]. - The company incurred interest expenses of 9,095,800.51 CNY in Q3 2021, compared to 8,068,164.01 CNY in the previous year, reflecting an increase of about 12.7%[20]. - Accounts receivable increased to ¥41,947,793.98 as of September 30, 2021, compared to ¥24,146,939.71 at the end of 2020, an increase of 73.5%[15].

Financial Performance - The company's operating revenue for the first half of 2021 was ¥94,699,645.17, a decrease of 8.82% compared to ¥103,854,904.04 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was -¥8,068,838.72, representing a decline of 237.74% from ¥5,858,225.41 in the previous year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥15,174,458.57, a decrease of 918.05% compared to ¥1,854,959.36 in the same period last year[21]. - The net cash flow from operating activities was -¥34,600,843.92, down 692.30% from ¥5,841,809.40 in the previous year[21]. - Basic earnings per share were -¥0.0240, a decline of 237.93% from ¥0.0174 in the same period last year[21]. - The company's total comprehensive income for the period decreased by 7,454,484 yuan, reflecting a significant decline compared to the previous period[182]. - The company reported a net loss of RMB 20,160,000 for the first half of 2021[185]. Assets and Liabilities - Total assets at the end of the reporting period were ¥831,112,031.25, a decrease of 4.65% from ¥871,604,271.45 at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company were ¥796,086,366.35, down 1.00% from ¥804,155,205.07 at the end of the previous year[21]. - Cash and cash equivalents decreased to ¥332.74 million, accounting for 40.04% of total assets, down from 45.93% last year, primarily due to significant cash outflows from operating activities and dividend payments to minority shareholders[62]. - Accounts receivable increased to ¥37.52 million, representing 4.51% of total assets, up from 2.77% last year, attributed to year-end concentrated settlements by certain customers[62]. - Inventory rose to ¥57.29 million, accounting for 6.89% of total assets, compared to 6.35% last year, indicating a slight increase in stock levels[62]. - The total liabilities decreased to CNY 11,545,047.13 from CNY 20,818,435.43 year-on-year[157]. Research and Development - The company’s R&D expenses significantly increased due to the non-capitalization of R&D costs, which were previously capitalized at ¥11,087,200 in the same period last year[34]. - Research and development expenses increased by 38.76% to 40.88 million yuan, with no capitalized R&D expenses during the reporting period[45]. - The company operates several R&D centers in Shenzhen, Wuhan, Xi'an, and Beijing, enhancing its technical innovation capabilities through a combination of various R&D models[30]. Business Operations - The company has successfully delivered its upgraded Yinqitong system to over ten banks, contributing to its performance during the reporting period[34]. - The company increased its investment and promotion of the Yinqitong system to capitalize on the digital transformation opportunities in the banking sector[34]. - The company maintains a light asset operation model, outsourcing most hardware production while ensuring strict quality control throughout the production process[33]. - The company has established a nationwide market sales network, utilizing flexible sales models such as direct sales, leasing, and customized solutions to meet customer needs[31]. Dividends and Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company reported a total of 336,000,000 shares, with 98.86% being unrestricted shares and 1.14% being restricted shares[130]. - The largest shareholder, Xinjiang Chaojun Equity Investment Co., Ltd., holds 16.51% of the shares, totaling 55,456,952 shares, with a decrease of 355,000 shares during the reporting period[135]. Compliance and Governance - All directors attended the board meeting to review this report, ensuring the accuracy and completeness of the financial statements[3]. - The half-year financial report was not audited[107]. - The company has maintained compliance with all commitments made to shareholders and stakeholders[111]. Market Position and Industry Trends - The company is positioned as a national high-tech enterprise focusing on financial technology, specializing in bank corporate mobile payment security products and anti-counterfeiting technologies[28]. - The company is facing risks related to industry transformation and technological innovation, particularly in the context of digital banking[90]. - The company plans to maintain its leading position in the traditional ticket anti-counterfeiting industry through proactive marketing strategies[91].

Financial Performance - The company's operating revenue for Q1 2021 was ¥37,597,637.18, representing a 13.10% increase compared to ¥33,243,794.95 in the same period last year[7]. - The net profit attributable to shareholders was a loss of ¥3,882,640.94, an improvement of 31.19% from a loss of ¥5,642,810.32 in the previous year[7]. - The basic earnings per share were -¥0.0116, showing a 30.95% improvement from -¥0.0168 in the previous year[7]. - The net profit attributable to the parent company increased by 31.19% compared to the same period last year[18]. - The net profit for the first quarter of 2021 was -4,780,980.74 CNY, compared to -5,380,804.76 CNY in the same period last year, showing an improvement of approximately 11.1%[55]. - The company reported a comprehensive loss of CNY 897,353.74 for Q1 2021, compared to a comprehensive loss of CNY 4,433,762.40 in the previous period[52]. Cash Flow - The net cash flow from operating activities was negative at ¥34,476,890.09, a decline of 72.40% compared to ¥-19,998,423.43 in the same period last year[7]. - The net cash flow from operating activities was -34,476,890.09, a decrease of 72.40% compared to the previous year, mainly due to increased personnel expenses[17]. - The cash flow from financing activities resulted in a net outflow of -16,320,000.00 CNY, with no cash inflow reported[60]. - The company paid cash dividends of 16,320,000.00 to minority shareholders during the reporting period, significantly impacting financing cash flow[17]. Assets and Liabilities - Total assets at the end of the reporting period were ¥829,798,864.35, down 4.80% from ¥871,604,271.45 at the end of the previous year[7]. - Total current assets decreased from CNY 504.21 million as of December 31, 2020, to CNY 465.87 million as of March 31, 2021, a decline of approximately 7.6%[41]. - Total liabilities decreased from CNY 63.65 million as of December 31, 2020, to CNY 22.74 million as of March 31, 2021, a significant reduction of about 64.3%[43]. - The total liabilities for Q1 2021 were CNY 10,873,313.99, a decrease from CNY 20,818,435.43 in the previous period[47]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 40,037[10]. - Xinjiang Chaojun Equity Investment Co., Ltd. held 16.51% of the shares, making it the largest shareholder with 55,456,952 shares[10]. - The company did not engage in any repurchase transactions during the reporting period[11]. Research and Development - Research and development expenses increased by 21.84% to 19,705,731.70, as the company did not capitalize R&D costs during the reporting period[16]. - The company is focusing on the development of the "Yin Qitong" system, which aims to enhance bank corporate customer operations and create a comprehensive service ecosystem[19]. - The company is exploring commercial applications for its paper texture anti-counterfeiting technology, aiming for large-scale application in the anti-counterfeiting industry[21]. - The company is committed to digital transformation in banking, integrating more resources and services to expand its service ecosystem[21]. - The company is enhancing its corporate mobile payment products and services, integrating office OA, ERP, and CRM to cover various business activities, aiming for precise marketing and operational efficiency[22]. Investment and Fund Management - The company received investment income of 6,564,715.00, including a dividend of 656.47 from Yunqi Fund[16]. - As of the report date, the company has invested a total of 14 million RMB in low-risk financial products, with 1 million RMB in a principal-protected product and 2 million RMB in a floating income product that generated 15.78 thousand RMB in interest[26]. - The total amount of raised funds is CNY 587.49 million, with CNY 104.97 million invested in the current quarter[31]. - Cumulative investment of raised funds reached CNY 540.61 million, with no changes in usage reported[31]. Project Updates - The "Electronic Payment Password System Upgrade Project" has reached the predetermined usable state, contributing to part of the performance[32]. - The "Financial Bill Anti-Counterfeiting Product R&D and Industrialization Project" has been mass-produced and sold in multiple commercial banks, contributing to the company's performance[32]. - The investment progress of the "Electronic Payment Password System Upgrade Project" is at 80.64%[31]. - The company plans to continue promoting paper texture anti-counterfeiting technology in the smart banking and financial bill anti-counterfeiting fields[32]. Risks and Challenges - The company is facing risks from industry transformation and technological innovation, particularly in the B2B market, which may affect the acceptance of its innovations during the digital transition of banks[24]. - Rising operational costs due to increased R&D, management, and sales expenses are putting pressure on the company's financial performance, with these costs significantly impacting revenue ratios[24].

Financial Performance - The company reported a net profit attributable to shareholders of -20.04 million yuan, a significant decline compared to the previous year, primarily due to the impact of the pandemic on sales and a 46.63% increase in R&D expenses to 85.51 million yuan[6]. - The company's revenue for 2020 was ¥213,764,371.81, a decrease of 10.81% compared to ¥239,673,516.43 in 2019[26]. - The net profit attributable to shareholders in 2020 was -¥20,035,532.47, representing a decline of 258.25% from ¥12,660,717.05 in 2019[26]. - The company experienced significant losses in the fourth quarter, with a net profit of -¥21,876,554.99[29]. - The company’s net assets attributable to shareholders decreased by 4.76% to ¥804,155,205.07 at the end of 2020[26]. - The company reported a basic earnings per share of -¥0.0596 in 2020, down 258.09% from ¥0.0377 in 2019[26]. - The company reported a net profit decline, with a total loss of approximately 27.52 million RMB for the year[124]. - The cash dividend distribution plan for 2020 reflects the company's financial challenges, as indicated by the negative net profit[127]. Research and Development - The company conducted impairment testing on underperforming R&D projects, resulting in an asset impairment provision of 23.82 million yuan[6]. - Increased expenses in R&D, management, and sales are putting pressure on operating performance, with these costs rising significantly as a percentage of revenue[10]. - The company has established a comprehensive R&D management process, achieving CMMI-4 certification, which enhances its competitiveness in software development[37]. - The company operates several R&D centers in Shenzhen, Wuhan, Xi'an, and Beijing, ensuring efficient and collaborative R&D processes across departments and regions[38]. - R&D expenses increased significantly to CNY 85.51 million, up 46.63% year-on-year, due to increased investment in R&D projects[58]. - The company has developed a new paper texture anti-counterfeiting technology, filling a technological gap in the industry[50]. - The company is exploring and adjusting R&D strategies in response to the dynamic changes in market demand for financial information security[106]. - The company has achieved batch production of the financial bill anti-counterfeiting product, which is now sold in multiple commercial banks nationwide[106]. Market Position and Strategy - The company's traditional electronic payment password system business remains stable, while the new Yinqitong system has been implemented in banks, contributing to performance during the reporting period[8]. - The company focuses on financial technology, specializing in mobile payment security products and anti-counterfeiting technologies for financial documents[36]. - The company plans to continue developing new technologies and products in the financial technology sector[36]. - The company is actively pursuing innovation and technology development to adapt to changes in the financial industry and enhance its competitive position[13]. - The company is actively promoting the application of paper texture anti-counterfeiting technology in smart banking and financial bill anti-counterfeiting fields[106]. - The company emphasizes the importance of operational consulting services for financial institutions, leveraging its expertise in the financial information security sector[116]. Financial Health and Solvency - The company has a low debt-to-asset ratio of 7.3%, indicating strong solvency and no significant risk to its ongoing operations[8]. - The net cash flow from operating activities increased by 150.52% to ¥20,153,614.22 in 2020, compared to ¥8,044,858.22 in 2019[26]. - The total assets at the end of 2020 were ¥871,604,271.45, a decrease of 1.81% from ¥887,661,901.23 at the end of 2019[26]. - The company’s cash flow from operating activities showed a significant improvement, reflecting better management of working capital[85]. - The net increase in cash and cash equivalents was ¥17,756,827.28, a significant improvement from a decrease of ¥202,856,807.34 in the previous year, marking a 108.75% change[86]. Shareholder and Governance - The board approved a profit distribution plan with no cash dividends or bonus shares, indicating a focus on reinvestment rather than immediate shareholder returns[13]. - The company has maintained compliance with its commitments regarding share transfer restrictions for its executives[130]. - The company has a structured approach to performance evaluation and compensation, aligning incentives with company performance[196]. - The company has a diverse board with members holding various international experiences, including positions in Deloitte and GIC Special Investments[188][189]. - The company has undergone changes in its board composition, with several independent directors leaving and new members being elected on May 15, 2020[186]. Legal and Compliance - There were no significant lawsuits, arbitrations, or penalties during the reporting period, indicating a stable legal and compliance environment[139][140]. - The company has not reported any non-standard audit reports for the current period[132]. - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[131]. Employee and Workforce - The total number of employees in the company is 357, with 261 being technical personnel[198]. - The company has a competitive salary management system to attract and retain talent, ensuring alignment with market salary levels[199]. - The company emphasizes training programs aligned with its development strategy and employee needs[200].

Financial Performance - Net profit attributable to shareholders was CNY -4,017,202.89, a decline of 229.10% year-on-year[8] - Operating revenue for the reporting period was CNY 54,064,538.85, down 9.58% compared to the same period last year[8] - Basic earnings per share were CNY -0.0120, a decline of 230.43% compared to the same period last year[8] - The weighted average return on net assets was -0.49%, down from 0.22% in the same period last year[8] - The company's operating revenue for Q3 2020 was approximately ¥157.92 million, a decrease of 7.64% compared to ¥170.99 million in Q3 2019, primarily due to the impact of COVID-19 on sales of electronic payment password systems[18] - The net profit attributable to the parent company's shareholders fell by 85.28% to ¥1.84 million from ¥12.51 million in the same period last year, influenced by declining revenue and increased R&D expenditures[18] - Net profit for Q3 2020 was CNY 839,205.78, compared to CNY 8,241,815.09 in the same period last year, reflecting a significant decline[42] - Total comprehensive income for Q3 2020 was CNY 839,205.78, down from CNY 8,241,815.09 in the same period last year[42] Cash Flow - The net cash flow from operating activities was CNY -6,400,222.36, a decrease of 165.41% year-on-year[8] - Cash flow from operating activities improved significantly, with a net outflow of only ¥558,412.96 compared to ¥15.66 million in the previous period, indicating better cost control and reduced tax payments[18] - The net cash flow from operating activities is -¥558,412.96, an improvement from -¥15,655,510.14 in the previous period[56] - Operating cash inflow for the period was CNY 75,069,183.30, down 37.4% from CNY 120,024,311.76 in the previous period[58] - Net cash flow from operating activities was -CNY 38,627,836.22, compared to -CNY 35,321,189.81 in the previous period[58] - The company reported a decrease in cash flow from operating activities, indicating potential challenges in revenue generation[58] Assets and Liabilities - Total assets at the end of the reporting period were CNY 869,333,356.47, a decrease of 2.06% compared to the end of the previous year[8] - The company's cash and cash equivalents decreased by 7.90% to approximately ¥379.98 million, primarily due to cash dividends paid during the reporting period[17] - Accounts receivable increased by 108.47% to ¥44.71 million, attributed to year-end concentrated settlements by some customers[17] - Inventory decreased by 10.64% to ¥59.64 million, as the company adjusted procurement and production based on market demand and reduced sales due to the pandemic[17] - Total assets as of September 30, 2020, were CNY 784,055,472.42, down from CNY 828,965,664.07 at the end of 2019[36] - Total liabilities decreased to CNY 9,604,970.76 from CNY 21,161,542.69[37] - The company's equity attributable to shareholders decreased to CNY 774,450,501.66 from CNY 807,804,121.38[37] Research and Development - Research and development expenses increased by 22.89% to ¥44.58 million from ¥36.28 million in the previous period, reflecting a significant investment in financial technology innovation products[18] - Research and development expenses were CNY 15,123,390.64, slightly up from CNY 14,741,993.71[40] - Research and development expenses increased to CNY 13,554,885.38 in Q3 2020, compared to CNY 12,223,574.42 in the previous period, indicating a focus on innovation[44] - Research and development expenses increased to ¥41,152,493.90, up 23.1% from ¥33,432,732.10 in the previous period[51] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 37,876[12] - The largest shareholder, Xinjiang Chaojun Equity Investment Co., Ltd., held 17.46% of the shares[12] - The company did not engage in any repurchase transactions among the top 10 shareholders during the reporting period[13] Government Support - The company received government subsidies amounting to CNY 2,798,700.00 during the reporting period[9] Future Plans - The company has indicated plans for market expansion and new product development in the upcoming quarters, focusing on enhancing its competitive edge[44]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥103,854,904.04, a decrease of 6.60% compared to ¥111,194,976.95 in the same period last year[19]. - The net profit attributable to shareholders was ¥5,858,225.41, down 37.67% from ¥9,399,258.58 year-on-year[19]. - The net profit after deducting non-recurring gains and losses was ¥1,854,959.36, a decline of 67.84% compared to ¥5,767,443.44 in the previous year[19]. - Basic earnings per share decreased to ¥0.0174, down 37.86% from ¥0.0280 in the previous year[19]. - The company reported a total profit of CNY 19,341,655.48 in the first half of 2020, compared to CNY 27,965,949.30 in the same period last year, a decrease of 30.9%[147]. - The company achieved a gross profit margin of approximately 57.3% for the first half of 2020, compared to 62.7% in the same period of 2019[145]. - The company reported a decrease in total assets by CNY 31,180,300.96 during the first half of 2020[165]. Cash Flow and Liquidity - The net cash flow from operating activities was ¥5,841,809.40, a significant improvement of 122.96% from a negative cash flow of ¥25,440,329.83 in the same period last year[19]. - The company reported a net cash flow from investment activities of CNY 14,050,193.08, a decrease of 88.6% from 122,811,221.42 CNY in the first half of 2019[154]. - Cash and cash equivalents at the end of the period were 101,405,257.62 CNY, down from 362,457,419.72 CNY at the end of the first half of 2019[155]. - The company received 1,184,438.40 CNY in tax refunds, an increase from 949,991.76 CNY in the first half of 2019[154]. - The company paid 9,809,455.73 CNY in taxes, significantly lower than 21,962,403.16 CNY in the same period last year[154]. Research and Development - The company’s R&D expenses amounted to CNY 29.46 million, accounting for 28% of total revenue, with a year-on-year increase of 36.79%[40]. - The company is undergoing a critical transformation period with significant R&D investments, which have put pressure on its performance, while management expenses have decreased[31]. - The company has developed a new public business innovation platform called "YinQitong," which integrates payment, transaction, enterprise finance, and administrative management services[34]. - The company has achieved CMMI-4 certification, indicating its advanced project management capabilities and enhancing its competitiveness in software development[27]. Assets and Liabilities - Total assets at the end of the reporting period were ¥871,219,219.98, a decrease of 1.85% from ¥887,661,901.23 at the end of the previous year[19]. - The total liabilities decreased from CNY 21,161,542.69 in the first half of 2019 to CNY 12,117,790.49 in the first half of 2020, a reduction of 42.8%[144]. - The company’s total equity as of June 30, 2020, was CNY 845,220,641.99, down from CNY 852,245,299.65, indicating a decrease of about 0.8%[140]. - The company’s inventory decreased to ¥54,858,197.53, representing 6.30% of total assets, down from 8.06% in the previous year[50]. Corporate Governance and Strategy - The board of directors confirmed that all members attended the meeting to review the report, ensuring the accuracy and completeness of the financial statements[4]. - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company has not engaged in any investor communication activities during the reporting period[81]. - The financial report for the first half of 2020 was not audited, which may affect the reliability of the financial data presented[135]. Market Position and Competition - The company is positioned as a leader in the financial bill anti-counterfeiting industry, with its paper texture anti-counterfeiting technology filling a significant gap in the market[34]. - Increased competition in the traditional electronic payment password system may impact the company's performance as new products have not yet contributed significantly to profits[79]. - The company aims to maintain its leading position in the traditional invoice anti-counterfeiting industry through proactive marketing strategies[80]. Subsidiaries and Investments - The subsidiary Beijing Zhaori Technology Co., Ltd. generated a net profit of 2,227,175.69 yuan, contributing significantly to the overall net profit[76]. - The company has established a new subsidiary, Wuhan Zhaori Rongyun Technology Co., Ltd., to focus on the delivery business of the bank-enterprise communication platform[76]. - The total assets of the subsidiary Nantong Zhaori Microelectronics Co., Ltd. amounted to 36,607,675.50 yuan, with a net profit of 20,215,788.4 yuan[76]. - The company is actively expanding its overseas business and technology cooperation through its subsidiary Zhaori Investment Co., Ltd.[76]. Financial Strategy and Risk Management - The overall financial strategy emphasizes stability and risk management, with no expected impairment of entrusted financial products[71]. - The company has not encountered any major changes in project feasibility during the reporting period[64]. - The company is facing risks from industry changes and technological innovation, particularly in the B-end market of financial technology[79].

Financial Performance - Total revenue for Q1 2020 was ¥33,243,794.95, a decrease of 38.21% compared to ¥53,799,096.14 in the same period last year[8] - Net profit attributable to shareholders was -¥5,642,810.32, representing a decline of 242.16% from a profit of ¥3,969,216.86 in the previous year[8] - Basic and diluted earnings per share were both -¥0.0168, down 242.37% from ¥0.0118 in the previous year[8] - The company's operating revenue for Q1 2020 was 33,243,794.95, a decrease of 38.21% compared to the same period last year due to the impact of the COVID-19 pandemic[19] - Net profit for Q1 2020 was a loss of CNY 4,433,762.40, down from a profit of CNY 10,804,455.51 in the same period last year[56] - The total comprehensive income for the current period is -¥5,380,804.76, compared to ¥1,933,854.88 in the previous period[61] Cash Flow and Assets - The net cash flow from operating activities was -¥19,998,423.43, an improvement of 54.63% compared to -¥44,077,541.33 in the same period last year[8] - Cash and cash equivalents decreased significantly by 108.44%, influenced by changes in operating, investing, and financing activities[18] - The company's cash and cash equivalents were RMB 388,254.7 million, compared to RMB 412,593.4 million at the end of 2019[46] - The company's total assets amounted to RMB 868,358.5 million, a decrease from RMB 887,661.9 million at the end of 2019[46] - The company's current assets totaled RMB 493,561.1 million, down from RMB 513,121.9 million at the end of 2019[46] - The total cash and cash equivalents at the end of the period were 51,989,377.95 yuan, down from 265,235,560.57 yuan at the end of the previous period[68] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 44,117[11] - Xinjiang Chaojun Equity Investment Co., Ltd. held 18.46% of the shares, amounting to 62,036,952 shares, with 24,820,000 shares pledged[11] - The company did not engage in any repurchase transactions among the top 10 shareholders during the reporting period[12] Research and Development - Research and development expenses increased by 48.81% to 16,173,557.95, attributed to an increase in R&D personnel[18] - The company reported R&D expenses of CNY 16,173,557.95, an increase from CNY 10,868,646.48 in the previous period[55] - The company is focusing on the promotion of its "Yin Qitong" system, which integrates financial services with various business scenarios, enhancing customer interaction and experience[21] - The company is exploring the application of its paper texture anti-counterfeiting technology in various fields, including financial documents and product packaging[22] Market and Competition - The COVID-19 pandemic has delayed the resumption of work for banks and corporate clients, impacting business operations and system development[27] - Increased competition in the traditional electronic payment market may impact the company's performance as new products have not yet significantly contributed to profits[28] - The company faces risks related to industry transformation and technological innovation, particularly in the B2B market, which may affect market acceptance of its innovations[28] Fund Utilization - The company has utilized RMB 14 million of its raised funds for short-term bank wealth management products, with plans for further investment[30] - The total amount of raised funds is CNY 587.49 million, with CNY 420.61 million already invested[37] - The cumulative proportion of changed use of raised funds is 0.00%[37] - The company has not changed the use of raised funds for any projects[37] Operational Efficiency - The cash flow from operating activities showed a significant decrease in cash outflows, indicating improved operational efficiency[67] - The company has seen a 179.31% increase in accounts payable to 11,027,336.28, due to large amounts from clients not yet settled[18] - The company is experiencing rising R&D and management expenses, which are becoming a significant portion of its revenue, posing risks to operating performance[28]