深圳兆日科技股份有限公司 2018 年第三季度报告全文 深圳兆日科技股份有限公司 2018 年第三季度报告 2018 年 10 月 1 深圳兆日科技股份有限公司 2018 年第三季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人魏恺言、主管会计工作负责人陈自力及会计机构负责人(会计主 管人员)李景声明：保证季度报告中财务报表的真实、准确、完整。 2 深圳兆日科技股份有限公司 2018 年第三季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 874,140,541.50 | | 892,198,221.55 | -2.02% | | 归属于上市公司股东的净资产 （元） | 831,209,637. ...

Research and Development - The company is actively exploring research and transformation directions in financial information security and payment security, with a clear strategy in financial ticket anti-counterfeiting and corporate mobile payment communication and security[5]. - The company has significantly increased its R&D investment and management expenses, which may negatively impact performance due to rising costs[6][7]. - The company is focusing on technology innovation to enhance its main business revenue and improve profitability, aiming for sustainable development[8]. - The company maintains a focus on R&D in the fields of anti-counterfeiting technology and secure mobile payment systems, with a commitment to innovation and quality management[30]. - The company's R&D investment was 24.96 million yuan, accounting for approximately 23.08% of operating revenue, with management expenses increasing by 12.26% year-on-year[41]. - The company is committed to enhancing its talent pool through training and recruitment to support its research and development efforts[87]. - The company is exploring the application of paper texture anti-counterfeiting technology in other financial technology innovation fields[63]. Financial Performance - Total revenue for the reporting period was ¥108,139,349.06, an increase of 6.92% compared to ¥101,138,454.67 in the same period last year[23]. - Net profit attributable to shareholders decreased by 28.35% to ¥12,213,946.33 from ¥17,047,655.53 year-on-year[23]. - Net profit after deducting non-recurring gains and losses fell by 62.41% to ¥5,719,603.31 from ¥15,214,042.80 in the previous year[23]. - Basic and diluted earnings per share decreased by 28.21% to ¥0.0364 from ¥0.0507 year-on-year[23]. - The company's total profit for the reporting period was 29.05 million yuan, a decrease of 6.07% year-on-year[41]. - The company reported a total share count of 336,000,000, with 330,895,067 shares being unrestricted, accounting for 98.48% of total shares[119]. - The company reported a total revenue of 128,651,931.86 CNY for the first half of 2018, with a net profit of 1,020,027.36 CNY[83]. - The net profit attributable to the parent company was CNY 12,213,946.33, compared to CNY 17,047,655.53 in the same period last year, a decline of about 28.5%[147]. - The total profit for the first half of 2018 was CNY 29,054,859.35, down from CNY 30,932,146.42, a decrease of about 6.1%[146]. Cash Flow and Investments - Net cash flow from operating activities improved significantly to ¥6,881,925.42, a 135.78% increase from -¥19,232,314.15 in the same period last year[23]. - Investment activities generated a net cash flow of 69,848,499.21, a substantial increase of 355.36% compared to the previous year, attributed to changes in the amount invested in financial products[47]. - The total amount of cash and cash equivalents increased by 36,447,193.80, marking a 147.89% improvement compared to the previous year[48]. - The net cash flow from operating activities was 6,881,925.42 CNY, a significant improvement compared to a net outflow of 19,232,314.15 CNY in the previous period[154]. - Cash inflow from investment activities totaled 414,183,718.63 CNY, compared to 232,164,315.07 CNY in the prior period, indicating a 78.3% increase[155]. - The company received 406,830,000.00 CNY from investment recoveries, significantly higher than 230,000,000.00 CNY in the previous period, marking a 76.8% increase[158]. Market Strategy and Competition - The company plans to adopt more proactive and flexible marketing strategies to expand market share and maintain industry leadership amid intensified competition in traditional electronic payment systems[8]. - The company is experiencing intensified market competition in traditional electronic payment password systems, necessitating more aggressive marketing strategies to maintain market share[87]. - The company's marketing expenses increased by 8.76% year-on-year, reflecting its commitment to promoting new products and the Zhaori brand[41]. Dividend and Shareholder Information - The company will not distribute cash dividends, issue bonus shares, or increase capital using reserves[9]. - The company plans not to distribute cash dividends or issue bonus shares for the half-year period[91]. - The profit distribution for the current period included a distribution to owners (or shareholders) amounting to -40,320,000.00 CNY[164]. Assets and Liabilities - Total assets at the end of the reporting period were ¥864,033,391.29, a decrease of 3.16% from ¥892,198,221.54 at the end of the previous year[23]. - Total liabilities decreased from CNY 32,140,696.07 to CNY 22,722,751.50, a decline of about 29.2%[138]. - The total equity attributable to shareholders decreased from CNY 854,900,150.98 to CNY 826,794,097.31, a decrease of approximately 3.3%[139]. Corporate Governance and Compliance - The company did not engage in any major litigation or arbitration matters during the reporting period[98]. - There were no significant related party transactions or major contracts during the reporting period[102][111]. - The company has not implemented any employee incentive plans or stock ownership plans during the reporting period[101]. - The company and its controlling shareholders did not have any significant integrity issues during the reporting period[100]. - The financial report for the first half of the year was not audited[96]. Subsidiaries and Contributions - The subsidiary Beijing Zhaori Technology Co., Ltd. contributed significantly to the net profit, accounting for over 10% of the company's total net profit[82]. - The total assets of Beijing Zhaori Technology Co., Ltd. were reported at 108,798,455.79 CNY, with net assets of 58,716,807.76 CNY[83]. - The subsidiary Nantong Zhaori Microelectronics Co., Ltd. reported an operating income of 30,251,377.71 CNY[83]. Financial Management and Strategy - The company is focusing on investments in currency market tools and bonds as part of its financial strategy[75]. - The company has a total of 4,500 million in self-owned funds with a guaranteed floating return of 4.75%[75]. - The company has not reported any expected impairment or inability to recover principal from entrusted financial management[79].

Financial Performance - Total revenue for Q1 2018 was ¥52,601,257, representing a 12.73% increase compared to ¥46,662,607 in the same period last year[8]. - Net profit attributable to shareholders decreased by 48.58% to ¥4,062,634.20 from ¥7,901,640.71 year-on-year[8]. - Net profit after deducting non-recurring gains and losses fell by 62.59% to ¥2,595,581.37 compared to ¥6,938,765.65 in the previous year[8]. - Basic and diluted earnings per share decreased by 48.51% to ¥0.0121 from ¥0.0235 year-on-year[8]. - The total comprehensive income for Q1 2018 was CNY 8,575,465.95, compared to CNY 11,919,712.15 in the previous year, indicating a decline in overall profitability[51]. Cash Flow and Assets - The net cash flow from operating activities improved by 48.25%, reaching -¥8,430,377.05, compared to -¥16,291,631.85 in the same period last year[8]. - The company's cash flow from operating activities increased by 48.25% year-on-year, driven by higher sales volume and revenue[20]. - Cash and cash equivalents decreased to ¥232,267,393.24 from ¥330,768,613.75[41]. - The balance of monetary funds at the end of the period was RMB 232.27 million, a decrease of 29.78% from the beginning of the year[17]. - The company reported a net decrease in cash and cash equivalents of CNY 98,501,220.51, compared to a decrease of CNY 10,752,178.32 in the prior year[58]. Investment and R&D - The company is focusing on R&D in financial information security and payment security, with ongoing risks related to market promotion and product adoption[10]. - Increased investment in R&D and marketing may impact overall profitability due to rising operational costs[11]. - The company’s R&D expenses increased by 15.70% to RMB 29.98 million, reflecting a focus on new product development[17]. - The cumulative investment in the electronic payment password system upgrade project reached CNY 60.81 million, accounting for 80.64% of the committed investment, with a surplus of CNY 14.60 million, representing 19.36% of the total commitment[33]. - The financial bill anti-counterfeiting product R&D and industrialization project had a cumulative investment of CNY 32.57 million, which is 80.91% of the committed investment, with a surplus of CNY 7.68 million, accounting for 19.09% of the total commitment[33]. Market Position and Products - The company aims to enhance its market share and competitiveness through innovative financial technology products amid intensifying market competition[11]. - The company has developed the "Yin Qitong" system, a comprehensive mobile payment solution for corporate clients, enhancing communication and security between banks and enterprises[22]. - The "Yin Qitong" system has received positive market feedback and is now seen as a key tool for banks to innovate their corporate payment services, achieving a market-leading position in the mobile payment sector[24]. - The financial票据纸纹防伪 system has been upgraded to automate the identification of paper bill features, significantly improving efficiency and reducing costs in the verification process[22]. - The company is working on miniaturizing and modularizing the financial票据纸纹防伪 terminal devices for use in innovative financial technology areas[22]. Operational Costs - Operating costs for the same period were RMB 22.86 million, reflecting a year-on-year increase of 35.64%[21]. - Total operating costs amounted to ¥42,403,518.41, up from ¥33,076,919.15 in the previous period[49]. - Sales expenses rose by 34.51% to RMB 5.57 million, attributed to increased marketing efforts[19]. - The gross profit margin for Q1 2018 was approximately 68.5%, compared to 61.5% in Q1 2017, indicating improved cost management[53]. Liabilities and Equity - Total liabilities decreased significantly to ¥16,721,265.47 from ¥32,140,696.07, indicating a reduction of approximately 48.1%[43]. - Total equity increased to ¥868,632,991.43 from ¥860,057,525.48, showing a growth of about 1.8%[44]. - The company has not reported any significant changes in the feasibility of projects or any major discrepancies in the use of raised funds[33]. Awards and Recognition - The company has received the "Golden Pine Award" for best financial technology innovation, recognizing the "Yin Qitong" system's contributions to corporate mobile payment security[24].

Financial Performance - The company's operating revenue for 2017 was CNY 231,099,705.44, representing a 20.64% increase compared to CNY 191,567,566.69 in 2016[22]. - The net profit attributable to shareholders for 2017 was CNY 18,944,257.22, a slight decrease of 0.83% from CNY 19,102,625.46 in 2016[22]. - The net profit after deducting non-recurring gains and losses was CNY 14,299,193.40, down 36.81% from CNY 22,629,470.91 in 2016[22]. - The net cash flow from operating activities for 2017 was CNY 27,884,912.83, a decrease of 17.77% compared to CNY 33,910,079.28 in 2016[22]. - The total assets at the end of 2017 were CNY 892,198,221.54, a decrease of 0.55% from CNY 897,100,711.35 at the end of 2016[22]. - The net assets attributable to shareholders at the end of 2017 were CNY 854,900,150.98, an increase of 0.45% from CNY 851,075,893.76 at the end of 2016[22]. - The company reported a basic earnings per share of CNY 0.0564 for 2017, a decrease of 0.88% from CNY 0.0569 in 2016[22]. - The total revenue for 2017 reached ¥231,099,705.44, representing a year-on-year increase of 20.64% compared to ¥191,567,566.69 in 2016[45]. - The electronic payment password system accounted for 96.25% of total revenue, generating ¥222,425,175.75, up 16.40% from ¥191,083,504.81 in 2016[46]. Research and Development - The company reported a significant increase in R&D investment, indicating a focus on innovation in financial technology, particularly in financial security and payment safety[6]. - The company aims to convert R&D investments into tangible productivity to enhance profitability and ensure sustainable growth[9]. - The company's R&D investment totaled CNY 56.92 million in 2017, a decrease of 8.88% year-on-year, accounting for 24.63% of the annual revenue[56]. - The number of R&D personnel increased to 167, representing 62.55% of the total workforce[56]. - The company is actively exploring new product development in electronic payment systems and anti-counterfeiting technologies, aiming to enhance market competitiveness[6]. - The company is exploring new applications for its paper texture anti-counterfeiting technology in the financial technology sector[73]. Market Strategy and Competition - The market penetration of traditional electronic payment products is increasing, but competition remains a significant risk, prompting the company to adopt more flexible marketing strategies[9]. - The company is focusing on expanding its market share in the emerging corporate mobile payment sector, which is subject to regulatory and market uncertainties[6]. - The company is committed to improving its talent acquisition and retention strategies to maintain a high-quality workforce essential for its growth[7]. - The company is focused on expanding its technical and marketing teams to support new product development and promotion[41]. - The company launched the "YinQitong" mobile payment system, which facilitates communication between banks and enterprises, enhancing efficiency in corporate payment processes[39]. Financial Management and Dividends - The company plans to distribute a cash dividend of 1.20 RMB per 10 shares, based on a total of 336 million shares, while no bonus shares will be issued[9]. - The cash dividend for the year 2017 is set at 1.20 RMB per 10 shares, totaling a distribution of 40,320,000 RMB, which represents 100% of the total distributable profit of 89,346,571.61 RMB[91]. - The company adheres to a cash dividend policy that mandates at least 20% of the annual distributable profit to be allocated as cash dividends, ensuring compliance with regulatory guidelines[94]. - The company distributed cash dividends of RMB 40,320,000 for the year 2017, which represents 212.83% of the net profit attributable to ordinary shareholders[96]. Operational Efficiency - The company employs a light asset operation model, outsourcing most of its production while maintaining quality control through strict management processes[31]. - The company reported a significant increase in the production volume of ticket anti-counterfeiting products, rising by 46.27% to 5,346,489.2 units[49]. - The company's inventory increased by 50.89% to 2,107,201 units, reflecting a rise in production to meet increased orders[49]. - The total operating costs for the ticket anti-counterfeiting industry were ¥83,977,539.90, up 22.09% from the previous year[48]. Governance and Compliance - The governance structure ensures equal rights for all shareholders, particularly minority shareholders, and maintains transparency in decision-making processes[162]. - The company has established an independent financial accounting department with a complete accounting system and financial management policies, allowing for independent banking and tax compliance[166]. - The company has not engaged in any significant related party transactions during the reporting period[108]. - The company has maintained compliance with all commitments made by its controlling shareholders and actual controllers[106]. - The company has no significant internal control deficiencies reported during the evaluation period, indicating strong internal governance[176]. Awards and Recognition - The company received multiple awards for its innovations, including the "Blue Shield Cup" for security anti-counterfeiting technology and a safety application award for the YinQitong system[40]. - The company has been recognized for its contributions to technology, including awards for its payment password system project[146]. Employee Management - The company has established a competitive salary management system to attract and retain talent, ensuring internal fairness and external competitiveness[158]. - The total number of employees in the company is 267, with 200 in the parent company and 67 in major subsidiaries[156]. - The professional composition includes 17 production personnel, 48 sales personnel, 167 technical personnel, 11 financial personnel, and 24 administrative personnel[156]. - The company emphasizes employee training through various methods, including internal and external training, to enhance employee skills and corporate cohesion[159].

Financial Performance - Operating revenue for the reporting period was CNY 58,246,865.31, representing an increase of 18.86% year-on-year[7] - Net profit attributable to shareholders was CNY 8,546,227.19, up 25.34% compared to the same period last year[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 7,230,101.45, an increase of 13.79% year-on-year[7] - Basic earnings per share for the reporting period were CNY 0.0254, reflecting a growth of 25.12% compared to the same period last year[7] - The weighted average return on net assets was 1.00%, an increase of 0.20% compared to the previous year[7] - Net profit for the period increased by 17.70% compared to the previous year, influenced by the growth in sales volume and effective cost management[17] - Net profit for the period reached CNY 13,645,148.79, compared to CNY 11,098,941.27 in the same period last year, representing a growth of approximately 23%[42] - The net profit attributable to shareholders of the parent company was CNY 8,546,227.19, an increase from CNY 6,818,549.51, reflecting a growth of about 25%[42] - Net profit for the period was ¥38,061,091.12, representing a 18.0% increase from ¥32,159,498.47 in the same period last year[50] Assets and Liabilities - Total assets at the end of the reporting period were CNY 896,484,274.15, a decrease of 0.07% compared to the end of the previous year[7] - The company's cash balance at the end of the period was 283.19 million CNY, a decrease of 29.37% from the beginning of the period, primarily due to investments in bank wealth management products and increased expenses[15] - Accounts receivable at the end of the period amounted to 43.62 million CNY, an increase of 720.93% from the beginning of the period, driven by year-end settlement characteristics of bank clients and increased revenue[15] - The company's inventory balance at the end of the period was 55.01 million CNY, an increase of 36.41% from the beginning of the period, due to increased production materials and product stocking[15] - The company's fixed assets at the end of the period were 115.89 million CNY, up 53.99% from the beginning of the period, as completed renovations were transferred from construction in progress[15] - The company's total equity increased from CNY 856,126,297.44 to CNY 879,067,388.56, indicating a growth of approximately 2.7%[36] - Total current liabilities decreased from CNY 40,974,413.91 to CNY 17,416,885.59, a reduction of about 57.5%[35] - Total assets as of September 30, 2017, amounted to CNY 896,484,274.15, showing a slight decrease from CNY 897,100,711.35 at the beginning of the period[36] Cash Flow - The net cash flow from operating activities was CNY -16,309,857.35, a significant decrease of 574.22% compared to the same period last year[7] - The cash inflow from operating activities totaled CNY 155,164,409.71, compared to CNY 151,404,414.40 in the previous period, reflecting an increase of approximately 2%[57] - The net cash outflow from operating activities was CNY -16,309,857.35, a significant decline from the previous period's net inflow of CNY 3,439,288.00[57] - The cash inflow from investment activities amounted to CNY 373,752,260.28, a substantial increase from CNY 1,466,835.62 in the prior period[58] - The net cash outflow from investment activities was CNY -71,921,610.78, compared to CNY -195,926,700.06 in the previous period, indicating an improvement[58] - The cash inflow from financing activities was CNY 2,517,152.00, while the cash outflow was CNY 29,520,000.00, resulting in a net cash outflow of CNY -29,520,000.00[60] - The total cash and cash equivalents at the end of the period were CNY 283,188,039.59, down from CNY 342,969,952.54 in the previous period[58] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 35,532[11] - The largest shareholder, Xinjiang Chaojun Equity Investment Co., Ltd., held 22.67% of the shares[11] - The company reported no significant changes in the number of restricted shares during the reporting period[13] Investment and Expenses - The company reported an investment income of 3.75 million CNY, a 155.81% increase year-on-year, mainly from interest income on wealth management products[18] - The company reported an investment income of CNY 1,587,945.21, an increase from CNY 541,684.93 in the previous period[42] - The company incurred cash payments to employees totaling CNY 45,228,877.96, which is an increase from CNY 39,640,200.14 in the previous period, reflecting a rise of approximately 14.5%[57] - The company reported a significant increase in cash paid for purchasing goods and services, totaling CNY 78,904,378.88, compared to CNY 64,914,866.53 in the prior period, representing a rise of approximately 21.5%[57] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[41] - The company plans to continue expanding its market presence and invest in new product development to drive future growth[50]

Financial Performance - Total revenue for the first half of 2017 was CNY 101,138,454.67, representing a 19.29% increase compared to CNY 84,784,842.37 in the same period last year[19]. - Net profit attributable to shareholders was CNY 17,047,655.53, up 14.21% from CNY 14,927,209.82 year-on-year[19]. - Basic earnings per share increased to CNY 0.0507, a rise of 14.19% from CNY 0.0444 in the same period last year[19]. - The company's total operating revenue for the first half of 2017 reached ¥101,138,454.67, an increase of 19.3% compared to ¥84,784,842.37 in the same period last year[131]. - Net profit attributable to shareholders of the parent company was ¥17,047,655.53, up 14.2% from ¥14,927,209.82 in the previous year[132]. - Operating profit for the period was ¥30,947,672.26, an increase of 19.5% compared to ¥26,024,476.48 in the same period last year[131]. - Total comprehensive income for the period reached CNY 12,265,033.84, compared to CNY 10,492,111.48 in the previous period, reflecting an increase of approximately 16.9%[135]. Cash Flow and Investments - Net cash flow from operating activities was negative CNY 19,232,314.15, a decline of 114.09% compared to negative CNY 8,983,433.20 in the previous year[19]. - Cash inflow from operating activities totaled CNY 91,694,471.62, slightly down from CNY 92,161,046.52 in the prior period[138]. - Cash outflow from operating activities increased to CNY 110,926,785.77, compared to CNY 101,144,479.72 in the previous period, indicating a rise of approximately 9.3%[138]. - Cash flow from investment activities showed a net outflow of CNY -27,353,087.82, an improvement from CNY -115,930,673.86 in the previous period[138]. - The company recovered CNY 230,000,000.00 from investments, a significant inflow compared to CNY 0 in the previous period[140]. - The total cash outflow from investment activities was CNY 259,517,402.89, significantly higher than CNY 116,855,824.55 in the prior period, indicating increased investment activity[138]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 881,638,078.20, down 1.72% from CNY 897,100,711.35 at the end of the previous year[19]. - Total liabilities decreased from ¥40,974,413.91 to ¥16,215,838.43, a decline of approximately 60%[123]. - The company's total equity increased from ¥856,126,297.44 to ¥865,422,239.77, reflecting a growth of about 1.5%[124]. - The company's cash and cash equivalents decreased from ¥400,944,348.21 to ¥324,836,434.09, a decline of approximately 19%[121]. - Accounts receivable increased significantly from ¥5,313,670.10 to ¥35,561,252.81, representing a growth of about 570%[121]. - Inventory rose from ¥40,327,597.88 to ¥49,267,509.75, an increase of approximately 22%[121]. Operational Highlights - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company is focusing on the development of public mobile payment products, responding to the competitive landscape in the financial technology sector[34]. - The company actively promoted new products through targeted marketing strategies, including participation in exhibitions and media coverage[36]. - The company has established a sales talent incentive mechanism to enhance the promotion of new products and improve sales team performance[36]. - The company maintains a strong market position in financial information security and payment safety, with established relationships with major banks[30]. Research and Development - R&D expenses increased, leading to a 26.80% rise in management expenses to 30.14 million yuan[34]. - Research and development expenses increased by 23.18% to ¥24,477,551.76, primarily due to an increase in R&D personnel[38]. - The company is focusing on commercializing its paper texture anti-counterfeiting technology in the financial ticket anti-counterfeiting sector[70]. Risks and Challenges - The company faces risks including business transformation, rising costs, and market competition[4]. - The company is facing risks related to business transformation, rising costs, and intensified market competition[70]. - R&D investment has been increasing as a percentage of revenue, leading to higher management and sales expenses[70]. Shareholder Information - The total number of shareholders at the end of the reporting period was 38,114[105]. - Xinjiang Chaojun Equity Investment Co., Ltd. holds 22.67% of the shares, totaling 76,181,952 shares, with a decrease of 7,077,000 shares during the reporting period[105]. - The company reported a total of 336 million shares outstanding, with 330.9 million shares (98.48%) being unrestricted shares[104]. Compliance and Governance - The financial report for the first half of 2017 was not audited[119]. - The company has not engaged in any major litigation or arbitration matters during the reporting period[83]. - The company has not conducted any significant related party transactions during the reporting period[89]. - The company has confirmed that there are no major environmental protection issues or liabilities[100].

Financial Performance - Total revenue for Q1 2017 was CNY 46,662,607.98, representing a 15.41% increase compared to CNY 40,433,634.58 in the same period last year[7] - Net profit attributable to shareholders was CNY 7,901,640.71, a 2.52% increase from CNY 7,707,607.60 year-on-year[7] - Net profit excluding non-recurring items decreased by 9.97% to CNY 6,938,765.65 from CNY 7,707,394.43 in the previous year[7] - The company's net profit for the first quarter remained basically flat year-on-year due to increased operating costs and R&D expenses[20] - The company reported a total profit of CNY 15,588,676.88 for Q1 2017, compared to CNY 15,076,684.98 in the previous year, marking an increase of approximately 3.4%[50] - The net profit for Q1 2017 was CNY 11,919,712.15, slightly up from CNY 11,825,888.80 in the same period last year, representing an increase of approximately 0.8%[54] - Basic and diluted earnings per share for Q1 2017 were both CNY 0.0235, up from CNY 0.0229 in the previous period, reflecting a growth of about 2.6%[54] Cash Flow and Liquidity - Operating cash flow was negative at CNY -16,291,631.85, a decline of 34.29% compared to CNY -12,131,327.22 in the same period last year[7] - Cash and cash equivalents at the end of the reporting period amounted to CNY 390.19 million, a decrease from CNY 400.94 million at the beginning of the period[40] - The net cash flow from operating activities was -16,291,631.85 CNY, compared to -12,131,327.22 CNY in the previous period, indicating a decline in operational performance[57] - The total cash and cash equivalents at the end of the period were 390,192,169.89 CNY, a decrease from 429,815,446.25 CNY in the previous period[58] - The company experienced a net increase in cash and cash equivalents of -10,752,178.32 CNY, compared to -135,041,274.61 CNY in the previous period, indicating an improvement in cash management[58] Assets and Liabilities - Total assets at the end of the reporting period were CNY 881,855,895.46, down 1.70% from CNY 897,100,711.35 at the end of the previous year[7] - The company's accounts receivable balance at the end of the period was RMB 24.68 million, an increase of 364.39% compared to the beginning of the year, and a year-on-year increase of 67.28% from RMB 14.75 million[17] - The company's fixed assets amounted to RMB 90.88 million, an increase of 20.76% compared to the beginning of the year, while construction in progress decreased by 37.30% to RMB 24.70 million[17] - Total liabilities at the end of the period were CNY 13,809,885.87, a decrease from CNY 40,974,413.91[42] - Total equity attributable to shareholders of the parent company was CNY 858,977,534.47, compared to CNY 851,075,893.76 at the beginning of the period[43] Research and Development - The company is focusing on R&D in financial information security and payment security, with a clear strategy in financial invoice anti-counterfeiting and mobile payment communication[10] - Increased investment in R&D and marketing has led to rising operational costs, which may negatively impact performance[10] - The company launched new products such as the multifunctional password device and paper texture anti-counterfeiting equipment, contributing to revenue growth in the first quarter[20] - The company has made significant progress in the research and market promotion of financial票据 anti-counterfeiting and corporate mobile payment security, with ongoing optimization and upgrades based on customer feedback, laying the foundation for large-scale promotion[22] - The company has increased its R&D efforts in corporate mobile payment security, forming a series of products including the 银企通 system and MSTP mobile cloud communication platform, which contributed to the performance during the reporting period[23] Investment Activities - The company used RMB 70 million of raised funds to purchase a principal-protected floating income financial product from 包商银行, which has matured and generated interest income of RMB 636,000[25] - The company also invested RMB 30 million of raised funds in another principal-protected floating income financial product from 广东华兴银行, which is still active and has not yet matured[26] - The company utilized RMB 30 million of its own funds to purchase a principal-protected floating income financial product from 包商银行, which has matured and generated interest income of RMB 253,300[26] - The total amount of raised funds for the project "Electronic Payment Password System Upgrade" is CNY 75.4161 million, with a cumulative investment ratio of 80.64%[31] - The total amount of raised funds for the project "Financial Bill Anti-Cloning Product R&D and Industrialization" is CNY 40.2572 million, with a cumulative investment ratio of 80.91%[31] - The company has invested a total of CNY 115.6733 million in committed investment projects, with CNY 93.385 million utilized by the end of the reporting period[31] - The company has utilized CNY 28 million of the raised funds for supplementary working capital, with no significant discrepancies reported[31] Operational Costs - The company's operating revenue for the first quarter was RMB 46.66 million, an increase of 15.41% year-on-year, while operating costs rose by 23.91% to RMB 16.86 million[18] - Total operating costs for Q1 2017 amounted to CNY 33,076,919.15, up from CNY 26,037,627.75 in the previous period[48] - Management expenses increased to CNY 11,260,694.05 from CNY 8,243,591.64, representing an increase of approximately 36.5%[53] - Sales expenses decreased to CNY 2,572,693.18 from CNY 3,466,781.27, showing a reduction of about 25.7%[53] - The company's accounts payable increased by 71.63% to RMB 5.26 million, primarily due to increased amounts owed to suppliers[18]

Dividend Policy - The company plans to distribute a cash dividend of 0.45 RMB per 10 shares based on a total of 336,000,000 shares, with no bonus shares issued[8]. - The company implemented a cash dividend policy, distributing at least 20% of the annual distributable profit as cash dividends[86]. - For the fiscal year 2016, the company proposed a cash dividend of RMB 0.45 per share, totaling RMB 15,120,000 based on a total share capital of 336,000,000 shares[89]. - The cash dividend accounted for 100% of the total profit distribution for the year[89]. - The cash dividend amount for 2016 was 15,120,000, which accounted for 79.15% of the net profit attributable to ordinary shareholders of 19,102,625.46[94]. - The company has maintained a consistent dividend distribution policy over the past three years, with the latest distribution approved on May 30, 2016[91]. - The company’s profit distribution plan for 2016 is subject to approval at the annual shareholders' meeting[91]. - The company has not made any adjustments to its cash dividend policy during the reporting period[88]. Financial Performance - The company's operating revenue for 2016 was ¥191,567,566.69, a decrease of 4.28% compared to ¥200,143,053.65 in 2015[19]. - Net profit attributable to shareholders was ¥19,102,625.46, down 54.11% from ¥41,630,491.67 in the previous year[19]. - The net cash flow from operating activities was ¥33,910,079.28, a decline of 23.95% compared to ¥44,587,383.87 in 2015[19]. - Basic earnings per share decreased by 54.08% to ¥0.0569 from ¥0.1239 in 2015[19]. - Total assets at the end of 2016 were ¥897,100,711.35, reflecting a slight increase of 0.68% from ¥891,022,918.83 in 2015[19]. - The company reported a net asset attributable to shareholders of ¥851,075,893.76, up 0.77% from ¥844,576,116.30 in 2015[19]. - In Q4 2016, the operating revenue reached ¥57,778,558.11, marking a steady increase throughout the year[21]. - The company experienced a net loss of ¥2,643,133.88 in Q4 2016, contrasting with positive net profits in the first three quarters[21]. Research and Development - The company has significantly increased its R&D investment and marketing expenses to promote new technologies and products, which may negatively impact performance due to rising costs[6]. - The company has actively recruited various professional technical talents to support its R&D efforts in a competitive information technology industry[6]. - The company has ongoing R&D projects including a public mobile payment system and a second-generation paper anti-counterfeiting product, aimed at enhancing user experience[52]. - The company is focused on high-value product development and brand marketing, with a strategy of long-term supplier agreements to ensure quality and stability in raw material sourcing[30]. - The company aims to strengthen its research and development efforts in the corporate mobile payment security sector to establish a leading position in the industry[81]. Market Position and Strategy - The company is focusing on the financial information security and payment security sectors, with clear strategies for product promotion and development in these areas[5]. - The company aims to enhance its competitive advantage through innovation in technology, products, and business models[8]. - The company is in a critical transformation period, with efforts to expand market share and optimize product structure amid intensifying competition[8]. - The company acknowledges the risks associated with business transformation and the need for market validation of new products and services[5]. - The company has maintained a leading position in the financial information security sector, leveraging its technological advantages and established marketing channels[30]. - The introduction of diverse sales models, including equipment leasing, has catered to varied customer needs and enhanced market competitiveness[40]. Financial Management and Cash Flow - The total amount of cash flow details is not provided in the report[55]. - Operating cash inflow decreased by 2.64% to ¥241.18 million in 2016 from ¥247.72 million in 2015[56]. - Net cash flow from operating activities fell by 23.95% to ¥33.91 million in 2016, primarily due to a decline in product sales and increased R&D expenses[56]. - Investment cash inflow dropped significantly by 73.70% to ¥138.29 million in 2016 compared to ¥525.80 million in 2015[56]. - Cash and cash equivalents decreased by 780.47% to -¥163.91 million in 2016, reflecting significant cash outflows[56]. - The company reported a 185.00% increase in cash outflows from financing activities to ¥31.92 million in 2016[56]. - The company’s net profit and cash flow from operating activities showed significant discrepancies, indicating potential liquidity issues[57]. Governance and Compliance - The company has maintained a clean integrity status with no outstanding court judgments or significant debts due[103]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate reporting[162]. - The actual governance status of the company aligns with the regulatory requirements set by the China Securities Regulatory Commission[163]. - The independent directors attended all board meetings and shareholder meetings, demonstrating active participation in corporate governance[167]. - The audit committee held 5 meetings in 2016, focusing on financial supervision and internal control improvements[169]. Employee and Management Structure - The total number of employees in the company is 254, with 146 in the parent company and 108 in major subsidiaries[154]. - The company has a competitive salary management system to attract and retain talent, ensuring alignment with market salary levels[156]. - The company emphasizes employee training, offering various programs to enhance professional skills and corporate culture[157]. - The company has a diverse board with members having extensive backgrounds in finance, technology, and management, enhancing its strategic decision-making capabilities[142][143][144][145].

Financial Performance - Total operating revenue for the reporting period was CNY 49,004,166.21, down 9.14% year-on-year[7]. - Net profit attributable to shareholders was CNY 6,818,549.52, a decrease of 38.06% compared to the same period last year[7]. - Basic earnings per share were CNY 0.0203, down 38.11% year-on-year[7]. - The weighted average return on net assets was 0.80%, a decrease of 0.53% compared to the previous year[7]. - The company achieved operating revenue of RMB 133.79 million in the first three quarters of 2016, a decrease of 7.72% compared to the same period last year[21]. - The net profit attributable to the parent company was RMB 21.75 million, down 33.71% year-on-year[21]. - Total operating revenue for the third quarter was CNY 49,004,166.21, a decrease from CNY 53,936,613.53 in the previous period, representing a decline of approximately 9.4%[55]. - Net profit for the third quarter was CNY 11,098,941.28, compared to CNY 14,858,498.83 in the same period last year, reflecting a decrease of approximately 25.5%[56]. - The net profit attributable to the parent company was CNY 6,818,549.52, down from CNY 11,008,956.39, a decline of about 38.5%[56]. - The company reported a notable increase in other receivables from ¥836,657.82 to ¥1,126,993.81, which is an increase of about 34.7%[47]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 885,687,117.61, a decrease of 0.60% compared to the end of the previous year[7]. - The company's cash and cash equivalents at the end of the period were RMB 342.97 million, a decrease of 39.28% from the beginning of the period[18]. - Accounts receivable increased by 211.98% to RMB 22.74 million, influenced by year-end settlement characteristics of bank clients[18]. - Total current assets decreased from ¥615,315,275.15 to ¥583,468,976.48, a decline of about 5.2%[47]. - Total liabilities decreased from ¥41,399,955.82 to ¥16,507,504.13, a significant drop of about 60.2%[49]. - The company's total equity increased from ¥849,622,963.01 to ¥869,179,613.48, representing a growth of approximately 2.6%[50]. - The company's non-current assets increased from ¥275,707,643.68 to ¥302,218,141.13, indicating a growth of approximately 9.6%[48]. Cash Flow - Cash flow from operating activities decreased by 66.04% year-on-year, primarily due to a decline in sales revenue and an increase in accounts receivable[20]. - The net cash flow generated from operating activities was CNY 3,439,288.00, significantly lower than CNY 10,127,753.18 in the previous period[71]. - The net cash flow from operating activities was -2,725,816.24 CNY, compared to 10,684,858.40 CNY in the previous period, indicating a decline in operational performance[75]. - The company experienced a net increase in cash and cash equivalents of -187,285,900.73 CNY, contrasting with a positive increase of 10,550,489.83 CNY in the previous period[76]. Investment and R&D - The company is focusing on the development of new technologies and products, with significant investments in marketing and R&D leading to increased sales and management expenses[22]. - The electronic payment password system upgrade project has a cumulative investment of RMB 6,081.38 million, achieving an investment ratio of 80.64%[36]. - The financial bill anti-counterfeiting product R&D project has a cumulative investment of RMB 3,257.20 million, achieving an investment ratio of 80.91%[36]. - The company has saved RMB 1,460.23 million in the electronic payment password system upgrade project, representing 19.36% of the total committed investment[36]. - The company has saved RMB 768.52 million in the financial bill anti-counterfeiting product R&D project, representing 19.09% of the total committed investment[36]. Market Risks and Strategies - The company faces market promotion risks for new products, particularly in the context of evolving industry policies and customer acceptance[10]. - There is a risk of declining industry demand and increased market competition, necessitating enhanced management and marketing strategies[11]. - The company aims to improve product development and customer satisfaction to maintain competitive advantages[11]. - The company has identified important risk factors that may adversely affect future operations and has outlined corresponding countermeasures[26]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 38,643[12]. - The largest shareholder, Xinjiang Chaojun Equity Investment Co., Ltd., holds 24.78% of the shares, totaling 83,258,952 shares[13]. - The company has not conducted any repurchase transactions among its top shareholders during the reporting period[15]. - The company is committed to fulfilling its promises regarding stock reduction and other commitments made to shareholders[29]. Product Development and Feedback - The second-generation paper texture anti-counterfeiting product has been successfully mass-produced and is expected to achieve bulk supply in the short term[24]. - The company has made progress in promoting the financial bill paper texture anti-counterfeiting system, aiming to increase its penetration rate among banks[26]. - The company is expanding its paper texture anti-counterfeiting technology into non-financial fields, including product anti-counterfeiting and luxury goods[26]. - The mobile payment security product system has been enhanced and diversified, contributing a small amount to the company's performance[26]. - The company has received positive feedback from several commercial banks regarding the new anti-counterfeiting technology, with some expressing procurement intentions[24].

Financial Performance - Total revenue for the first half of 2016 was ¥84,784,842.37, a decrease of 6.87% compared to ¥91,043,834.41 in the same period last year[15]. - Net profit attributable to ordinary shareholders was ¥14,927,209.82, down 31.51% from ¥21,794,716.90 year-on-year[15]. - Basic earnings per share decreased by 31.59% to ¥0.0444 from ¥0.0649 in the same period last year[15]. - The company achieved operating revenue of 84.78 million yuan, a decrease of 6.87% compared to the same period last year[24]. - Net profit attributable to the parent company was 14.93 million yuan, down 31.51% year-on-year, primarily due to declining sales revenue[24]. - The company reported a total comprehensive income for the period of 14,927,209.82 CNY, a decrease of 15,120,000.00 CNY compared to the previous period[121]. - The company reported a profit distribution of -15,120,000.00 CNY to shareholders, indicating a loss in profit allocation[122]. Cash Flow and Liquidity - The net cash flow from operating activities was -¥8,983,433.20, representing an 81.25% decline compared to -¥4,956,283.27 in the previous year[15]. - Cash and cash equivalents decreased by 27.76% to 408.03 million yuan, primarily due to investments in financial products[27]. - The company's operating cash flow was -8.98 million yuan, a significant decline of 81.25% year-on-year[27]. - The net cash flow from investment activities was -115,930,673.86 CNY, compared to -248,049,821.87 CNY in the previous period, showing an improvement in investment cash flow[116]. - The company experienced a net decrease in cash and cash equivalents of -156,831,406.99 CNY, compared to -264,206,212.68 CNY in the previous period, indicating a reduction in cash burn[116]. Assets and Liabilities - Total assets at the end of the reporting period were ¥870,434,660.46, a decrease of 2.31% from ¥891,022,918.83 at the end of the previous year[15]. - Total current assets decreased from CNY 615,315,275.15 at the beginning of the period to CNY 581,219,747.75 at the end of the period, a decline of approximately 5.5%[98]. - Total liabilities decreased from CNY 41,399,955.82 to CNY 14,871,140.25, a decline of about 64.1%[99]. - Total equity increased from CNY 849,622,963.01 to CNY 855,563,520.21, an increase of approximately 0.5%[100]. Operational Costs and Expenses - Operating costs increased by 7.54% to 30.36 million yuan, influenced by changes in product sales structure[26]. - Sales expenses rose by 38.06% to 10.50 million yuan, driven by increased marketing efforts for new products[26]. - Total operating costs increased to CNY 59,685,516.58, up 17.3% from CNY 50,846,244.13 year-on-year[107]. - The company paid 44,192,275.96 CNY for purchasing goods and services, an increase from 38,648,093.52 CNY in the previous period, reflecting higher operational costs[118]. Market and Product Development - The company is facing market promotion risks for new products, particularly the second-generation "paper pattern anti-counterfeiting product" and "multi-functional password device" due to changing market conditions[21]. - The company is actively promoting two key R&D projects: the "Financial Bill Anti-Cloning Product R&D and Industrialization Project" and the "Electronic Payment Password System Upgrade Project," both progressing as planned[33]. - The upgraded electronic payment password system has received positive market feedback, helping to mitigate the impact of declining gross margins due to intensified market competition[33]. - The company plans to enhance the penetration rate of the paper texture anti-counterfeiting system among banks and gradually promote bill big data services based on market demand[36]. Shareholder and Equity Information - The total number of shares is 336,000,000, with 98.48% being unrestricted shares and 1.52% being restricted shares[84]. - Xinjiang Chaojun Equity Investment Co., Ltd. holds 24.78% of shares, with a decrease of 9,408,000 shares during the reporting period[86]. - The company has maintained a stable shareholder base with no significant changes in shareholding percentages[84]. - The total number of shareholders at the end of the reporting period is 39,980[86]. Financial Management and Risk Control - The company strictly controls risks associated with financial products, selecting only low-risk and high-liquidity products[53]. - The company has no significant litigation or arbitration matters during the reporting period[61]. - The company has no major related party transactions during the reporting period[66]. - The company has no significant contracts or leasing arrangements during the reporting period[72]. Future Outlook and Strategic Plans - The company has set a future outlook with a revenue target of 3 billion RMB for the full year 2016, indicating a projected growth rate of 15%[156]. - The company plans to invest 100 million RMB in research and development for innovative technologies over the next two years[156]. - The company is expanding its market presence, targeting an increase in market share by 10% in key regions, including Southeast Asia and Europe[156].