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]

Financial Performance - The company's operating revenue for 2019 was ¥239,673,516.43, representing an increase of 11.04% compared to ¥215,843,734.68 in 2018[23]. - The net profit attributable to shareholders for 2019 was ¥12,660,717.05, a 3.60% increase from ¥12,220,671.80 in 2018[23]. - The net profit after deducting non-recurring gains and losses was ¥3,640,286.61, showing a significant increase of 70.93% from ¥2,129,695.82 in 2018[23]. - The total operating revenue for 2019 was CNY 239,673,516.43, representing an increase of 11.04% compared to CNY 215,843,734.68 in 2018[66]. - The revenue from the bill anti-counterfeiting industry was CNY 227,061,318.24, accounting for 94.74% of total revenue, with a year-on-year increase of 7.22%[66]. - The company achieved total operating revenue of 240 million yuan in 2019, an increase of 11.04% year-on-year[55]. - The company's net profit attributable to shareholders was 12.66 million yuan, a slight increase of 3.60% compared to the previous year[56]. Research and Development - The company reported a significant increase in R&D and management expenses, which rose rapidly and accounted for a large proportion of operating income[9]. - Research and development expenses amounted to 58.32 million yuan, accounting for 24.33% of total operating revenue, with an 18.80% year-on-year growth[55]. - The total R&D investment reached ¥70,739,378.47, accounting for 29.51% of the annual revenue, indicating a strong commitment to innovation[76]. - The company has established several R&D centers in Shenzhen, Wuhan, Xi'an, and Beijing, enhancing its technological innovation capabilities[34]. - The company expanded its R&D personnel to 272, which constitutes 75.35% of the total workforce, marking a 50.28% increase year-on-year[63]. - The company applied for 12 new invention patents and received 3 invention patent authorizations during the reporting period, bringing the total effective patents to 57[61]. Marketing and Sales - The company is actively investing in marketing and promotion to support the application of new technologies and products in the financial industry, leading to increased sales expenses[9]. - The company has established a nationwide market sales network, utilizing flexible sales models including direct sales, bank agency sales, equipment leasing, and customized product solutions[36]. - Sales expenses increased by 6.29% to ¥31,188,781.59 in 2019, reflecting the company's focus on market promotion during its transformation phase[74]. Financial Position - The total assets at the end of 2019 were ¥887,661,901.23, a slight decrease of 0.40% from ¥891,215,777.64 at the end of 2018[23]. - The net assets attributable to shareholders increased by 2.12% to ¥844,350,737.54 from ¥826,800,822.78 at the end of 2018[23]. - The company's cash and cash equivalents net decrease was ¥202,856,807.34, a drastic change of 670.67% year-on-year[77]. - As of the end of 2019, cash and cash equivalents increased to ¥412,593,356.5, representing 46.48% of total assets, up from 33.23% at the beginning of the year, a change of 13.25%[86]. - Accounts receivable rose to ¥21,449,281.03, accounting for 2.42% of total assets, an increase of 1.02% from 1.40% at the beginning of the year, primarily due to outstanding settlements from clients[86]. - Inventory increased to ¥66,740,965.87, representing 7.52% of total assets, up from 6.72%, driven by higher stocking demands from consignment clients[86]. Dividend Policy - The profit distribution plan approved by the board is to distribute a cash dividend of 0.6 yuan per 10 shares (including tax) based on a total of 336 million shares, with no bonus shares issued[10]. - The cash dividend for 2018 was set at RMB 0.6 per share, totaling RMB 20.16 million, which is 100% of the profit distribution amount[115]. - The company’s cash dividend policy mandates that at least 20% of the distributable profits must be allocated as cash dividends each year[113]. - The total distributable profit for the year was RMB 49.13 million, with the cash dividend representing the entire distribution[115]. - The proposed dividend for 2019 is subject to approval at the annual shareholders' meeting[119]. Risks and Challenges - The company faces risks from intensified market competition as the penetration rate of traditional electronic payment systems increases, potentially impacting performance[7]. - The company acknowledges the risks associated with the rapid transformation of the financial technology industry and is committed to maintaining its leading position in the traditional anti-counterfeiting industry[10]. - The company recognizes the risks of technological innovation and market competition and is taking comprehensive management measures to address these challenges[10]. - The company acknowledges potential risks in the rapidly evolving financial technology sector, particularly regarding market acceptance of its innovations[108]. Corporate Governance - The company maintains a governance structure that ensures equal rights for all shareholders, particularly minority shareholders[197]. - The board of directors operates independently and adheres to legal and regulatory requirements in its decision-making processes[198]. - The company emphasizes transparency in information disclosure, with the chairman as the primary responsible person for disclosures[199]. - The company actively respects and protects the rights of stakeholders, promoting balanced interests among all parties involved[199]. Employee and Management - The total number of employees in the company is 361, with 237 in the parent company and 124 in major subsidiaries[191]. - The professional composition includes 272 technical personnel, 53 sales personnel, and 8 production personnel[191]. - The total remuneration paid to directors, supervisors, and senior management in 2019 amounted to 7.0766 million yuan[189]. - The remuneration decision for directors and supervisors is made by the shareholders' meeting, while senior management remuneration is determined by the board of directors[189].

Financial Performance - Operating revenue for the reporting period was CNY 59,794,126.80, representing an increase of 18.55% year-on-year[7]. - Net profit attributable to shareholders was CNY 3,111,639.87, a decrease of 29.53% compared to the same period last year[7]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 2,699,762.24, down 24.82% year-on-year[7]. - Basic earnings per share for the reporting period were CNY 0.0093, a decrease of 29.01% compared to the same period last year[7]. - The weighted average return on net assets was 0.38%, down 0.15% from the previous year[7]. - Operating revenue for the period was CNY 170.99 million, reflecting a 7.83% year-over-year growth due to stable product sales and gross margin[16]. - Net profit for the current period was ¥8,241,815.09, down 14.5% from ¥9,641,980.59 in the previous period[42]. - The total profit for the current period was ¥11,773,259.49, reflecting a decrease from ¥14,593,392.00 in the previous period[42]. - Net profit for the period was ¥29,155,215.37, a decrease of 6.59% from ¥31,215,094.90 in the same period last year[50]. - The total profit for the period was ¥39,739,208.79, compared to ¥43,648,251.35 in the previous period, marking a decrease of 9.25%[50]. Cash Flow and Assets - The net cash flow from operating activities for the year-to-date was CNY -15,655,510.14, a decrease of 217.85%[7]. - The company's cash and cash equivalents increased by 20.86% to CNY 367.95 million due to reduced investment in financial products and increased time deposits[15]. - Cash and cash equivalents at the end of the period increased to 367,948,582.33 CNY, compared to 274,336,517.60 CNY at the end of the previous period, marking a growth of approximately 34.2%[59]. - The total cash inflow from operating activities was 185,363,584.37 CNY, while the total cash outflow was 201,019,094.51 CNY, leading to a net cash flow deficit[58]. - The company achieved a cash inflow from operating activities of ¥176,083,536.00, slightly up from ¥175,532,616.82 in the previous period[57]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 49,499[11]. - The largest shareholder, Xinjiang Chaojun Equity Investment Co., Ltd., held 19.88% of the shares, amounting to 66,791,952 shares[11]. - As of the report date, the controlling shareholder, Xinjiang Chaojun Equity Investment Co., Ltd., has reduced its holdings by 3.33 million shares, accounting for 0.99% of the total share capital[20]. - The controlling shareholder plans to reduce up to 6.72 million shares, representing 2.00% of the total share capital, within a six-month period starting from June 10, 2019[20]. Liabilities and Equity - Total assets at the end of the reporting period were CNY 863,794,315.46, a decrease of 3.08% compared to the end of the previous year[7]. - Total liabilities decreased significantly from CNY 59,012,008.85 to CNY 22,595,331.30, a reduction of about 61.7%[33]. - Owner's equity increased from CNY 832,203,768.79 to CNY 841,198,984.16, an increase of approximately 1.2%[34]. - Total liabilities and owner's equity decreased from CNY 891,215,777.64 to CNY 863,794,315.46, a decline of about 3.1%[34]. Research and Development - Research and development expenses surged by 22.35% to CNY 36.28 million as the company intensified investment in financial technology innovation[16]. - Research and development expenses rose significantly to ¥14,741,993.71, a 37.0% increase from ¥10,699,912.43 in the previous period[41]. - Research and development expenses increased to ¥36,277,710.28, representing a rise of 22.36% compared to ¥29,651,871.58 in the previous period[48]. Investment Income - Investment income dropped by 59.65% to CNY 3.26 million, impacted by reduced interest income from financial products[16]. - The company’s investment income was ¥454,561.91, down from ¥970,173.17 in the previous period[41]. - The investment income for the period was ¥3,255,285.61, down from ¥8,067,086.68, reflecting a decrease of 59.62%[48]. Government Subsidies - The company received government subsidies amounting to CNY 1,502,000.00 during the reporting period[8]. Other Financial Metrics - The company reported a significant increase in other receivables by 243.13% to CNY 4.66 million, mainly due to accrued interest on time deposits[15]. - The company approved the use of up to RMB 140 million of idle funds for low-risk financial products, with a two-year term starting from January 7, 2019[19]. - The company redeemed RMB 4 million from a financial product with Ningbo Bank, earning interest income of RMB 41.42 thousand during the period from December 13, 2018, to March 13, 2019[19]. - The company has no violations regarding external guarantees during the reporting period[25]. - There are no non-operating fund occupations by the controlling shareholder or related parties during the reporting period[26].

Financial Performance - Total revenue for the first half of 2019 was CNY 111,194,976.95, representing a 2.83% increase compared to CNY 108,139,349.06 in the same period last year[18]. - Net profit attributable to shareholders decreased by 23.04% to CNY 9,399,258.58 from CNY 12,213,946.33 year-on-year[18]. - Basic earnings per share fell by 23.08% to CNY 0.0280 from CNY 0.0364 in the same period last year[18]. - The company reported a slight increase of 0.84% in net profit after deducting non-recurring gains and losses, reaching CNY 5,767,443.44 compared to CNY 5,719,603.31 last year[18]. - The company achieved operating revenue of 111 million RMB, a year-on-year increase of 2.83%[35]. - The net profit attributable to shareholders was 9.40 million RMB, a decline of 23.04% year-on-year[36]. - The company reported a significant decrease in investment income to ¥2,800,723.70, down from ¥7,096,913.51, due to changes in wealth management product interest income[42]. - The company reported a total cash outflow from financing activities of 39,360,000.00 yuan in the first half of 2019, compared to 40,320,000.00 yuan in the same period of 2018, indicating a decrease of approximately 2.4%[150]. Cash Flow and Assets - Net cash flow from operating activities turned negative at CNY -25,440,329.83, a decline of 469.67% compared to CNY 6,881,925.42 in the previous year[18]. - The net cash flow from investment activities rose by 75.83% to ¥122,811,221.42, mainly from purchasing wealth management products[42]. - Cash and cash equivalents at the end of the first half of 2019 totaled 362,457,419.72 yuan, slightly down from 367,215,807.55 yuan at the end of the first half of 2018[150]. - Accounts receivable increased to RMB 36,892,504.68 from RMB 12,848,304.64 at the end of 2018, indicating a significant growth in receivables[129]. - Total assets decreased by 3.72% to CNY 858,050,179.19 from CNY 891,215,777.64 at the end of the previous year[18]. - Total liabilities decreased from CNY 59,012,008.85 to CNY 25,093,010.12, a decline of approximately 57.6%[132]. - The company reported cash and cash equivalents of RMB 362,457,419.72 as of June 30, 2019, an increase from RMB 304,446,528.13 at the end of 2018[129]. Research and Development - The company invested 21.54 million RMB in R&D expenses, reflecting a year-on-year increase of 13.63%[36]. - The company has implemented strict internal controls in its R&D management processes, achieving CMMI-4 certification[25]. - The company has increased its intangible assets due to capitalized R&D expenditures reaching their intended use[28]. - The company is committed to enhancing its competitiveness through continuous investment in new products and technologies, despite rising operational costs[27]. - The company has adjusted its research and development direction in response to the dynamic changes in market demand for financial information security, particularly due to the development of financial technology[64]. Market Position and Strategy - The company focuses on financial technology, specializing in bill anti-counterfeiting and secure payment products, with major clients including national banks[25]. - The traditional electronic payment password system remains a stable revenue source, while new products like the mobile payment system are expected to drive future growth[27]. - The company has established long-term stable partnerships with major commercial banks, leading to a strong market presence[32]. - The company is actively expanding its overseas business and technology cooperation, with a registered capital of 990 million USD for its overseas investment and acquisition initiatives[75]. - The company is facing risks from industry changes and technological innovation, particularly in the financial technology sector, which is rapidly evolving[78]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares[5]. - The total number of common shareholders at the end of the reporting period is 55,175[114]. - The largest shareholder, Xinjiang Chaojun Equity Investment Co., Ltd., holds 20.20% of shares, totaling 67,861,952 shares, with a decrease of 3,920,000 shares during the reporting period[114]. - The company reported a profit distribution of 40.32 million yuan to shareholders, indicating a reduction in profit allocation compared to prior periods[159]. Compliance and Governance - The financial report for the first half of 2019 was not audited[127]. - The company has not engaged in any significant related party transactions during the reporting period[95]. - The company has not faced any penalties or rectification issues during the reporting period[92]. - The company has committed to not engaging in any competitive business with its subsidiaries, ensuring compliance with its commitments[84]. Operational Risks - The company is facing risks and has outlined corresponding measures in its operational analysis section[4]. - Increased investment in research and development has led to rising expenses, putting pressure on operating performance[78]. - The traditional electronic payment password system is widely used in banks, but increased market competition poses risks to the company's performance[79].