Financial Performance - Total revenue for Q1 2020 was ¥182,036,877.16, a decrease of 5.95% compared to ¥193,551,691.09 in the same period last year[8]. - Net profit attributable to shareholders was ¥1,820,061.10, down 72.68% from ¥6,662,778.11 year-on-year[8]. - Net profit excluding non-recurring gains and losses was ¥802,517.36, a decline of 87.45% from ¥6,395,052.76 in the previous year[8]. - Basic earnings per share decreased by 76.81% to ¥0.0048 from ¥0.0207 in the same period last year[8]. - The company's operating revenue for the reporting period was 185.20 million yuan, a decrease of 8.35 million yuan compared to the same period last year, representing a decline of approximately 4.31%[23]. - The net profit attributable to shareholders of the listed company was 1.71 million yuan, down 495.16 thousand yuan year-on-year, reflecting a decrease of about 74.38%[23]. - Net profit for the current period is CNY 2,225,115.73, a decline of 67.7% compared to CNY 6,893,239.16 in the previous period[73]. - The company reported a total comprehensive income of -¥3,565,083.84, compared to -¥4,729,757.43 in the previous period[82]. Cash Flow and Liquidity - Net cash flow from operating activities was -¥182,082,801.96, representing a 76.04% increase in cash outflow compared to -¥131,980,638.53 last year[8]. - Cash and cash equivalents decreased by 49.32% to 318.96 million yuan from 629.29 million yuan in the previous year, primarily due to reduced cash inflows amid the pandemic[22]. - Cash flow from operating activities was -¥182,082,801.96, compared to -¥131,980,638.53 in the previous period[86]. - Cash received from sales and services was ¥112,036,475.24, an increase from ¥102,356,115.90[86]. - The net cash flow from financing activities was -$2,492,686.88, compared to -$8,112,104.63 in the previous period, indicating an improvement[91]. - The total cash and cash equivalents at the beginning of the period were $523,502,504.45, down from $545,829,916.42[91]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,949,634,076.95, down 11.17% from ¥2,194,793,196.87 at the end of the previous year[8]. - Total current assets decreased from ¥1,575,709,008.92 to ¥903,766,649.61, a decline of approximately 42.7%[49]. - Total non-current assets increased from ¥619,084,187.95 to ¥1,045,867,427.34, an increase of approximately 68.9%[52]. - Total liabilities increased from ¥696,460,131.61 to ¥874,907,911.99, an increase of approximately 25.6%[55]. - Total equity attributable to shareholders decreased from ¥1,487,329,627.34 to ¥1,064,754,487.39, a decline of about 28.4%[58]. - The company reported a significant reduction in short-term borrowings from CNY 180,000,000.00 to CNY 80,000,000.00, reflecting a strategy to lower debt levels[65]. Investments and Expenditures - Long-term equity investments increased by 501.34% to 1.10 million yuan, driven by increased investments in joint ventures[22]. - Development expenditures rose by 35.85% to 82.71 million yuan, indicating a significant increase in R&D investment[22]. - The company plans to issue convertible bonds totaling no more than 500 million yuan, with the application for approval accepted by the China Securities Regulatory Commission[26]. - The company has achieved a cumulative benefit of 265.09 million from the projects by the end of the reporting period[31]. - The investment in the "Enterprise Value Accounting and Management Construction Project" reached 996.16 million, with 70.83% of the investment completed[31]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 40,678[12]. - The largest shareholder, Wang Changchun, holds 14.93% of the shares, totaling 71,921,563 shares[12]. Strategic Initiatives - The company has achieved a normal level of resumption of work and is actively promoting project implementation to mitigate the impact of the pandemic[23]. - The company is focusing on market expansion and new product development as part of its strategic initiatives[69].

Business Performance - The company reported its first overseas business profitability in 2019, marking a successful entry into Southeast Asia's banking sector, breaking the dominance of Western technology giants [9]. - The company's operating revenue for 2019 was CNY 1,311,125,161.56, representing a 20.56% increase from CNY 1,087,496,802.95 in 2018 [28]. - The net profit attributable to shareholders for 2019 was CNY 137,926,045.87, a significant increase of 144.32% compared to CNY 56,454,112.92 in 2018 [28]. - The net cash flow from operating activities was CNY 108,827,939.16, a remarkable increase of 504.75% compared to CNY 17,995,400.04 in 2018 [28]. - The total assets at the end of 2019 amounted to CNY 2,194,793,196.87, reflecting a 20.39% increase from CNY 1,823,052,637.57 at the end of 2018 [28]. - The net assets attributable to shareholders increased by 20.86% to CNY 1,487,329,627.34 from CNY 1,230,671,814.67 in 2018 [28]. - The basic earnings per share for 2019 were CNY 0.3028, up 147.39% from CNY 0.1224 in 2018 [28]. - The diluted earnings per share increased by 158.96% to CNY 0.2947 from CNY 0.1138 in the previous year [28]. - The weighted average return on equity for 2019 was 10.16%, an increase of 5.66% compared to 4.50% in 2018 [28]. - The company reported a quarterly revenue of CNY 576,919,045.31 in Q4 2019, contributing significantly to the annual growth [32]. Profit Distribution - The profit distribution plan approved by the board proposes a cash dividend of 0.12 RMB per 10 shares, with a capital reserve conversion of 5 shares for every 10 shares held [5]. - The total number of shares for the profit distribution plan is based on 481,810,269 shares [5]. - The company reported a distributable profit of ¥89,578,894.82 for the year [185]. - The total cash dividend distributed, including other methods, accounted for 100.00% of the profit distribution [185]. - In 2019, the cash dividend amount was ¥5,781,723.23, representing 4.19% of the net profit attributable to ordinary shareholders [188]. Innovation and R&D - The company emphasizes continuous innovation as a core principle, which has been integral to its success in the financial technology sector [9]. - The company has made significant advancements in big data, positioning itself as a leader in the industry [8]. - The company's R&D investment exceeded 10% of its revenue in 2019, reinforcing its technological and product advantages in the financial technology sector [58]. - The company is committed to maintaining long-term core competitiveness through significant R&D investments and continuous innovation [99]. - R&D investment in 2019 amounted to ¥198,733,630.98, representing 15.16% of operating revenue, an increase from 13.31% in 2018 [101]. - The number of R&D personnel increased to 974 in 2019, accounting for 23.35% of the total workforce, down from 25.85% in 2018 [101]. Market Expansion - The company has successfully completed a zero-to-one process in overseas markets over three years, establishing itself as a leader in providing Chinese core solutions [9]. - In 2019, the company achieved overseas revenue of 150.29 million yuan, representing a year-on-year growth of 134.56%, marking a significant milestone in its international expansion strategy [62]. - The company has expanded its overseas business since 2015, establishing a presence in Hong Kong, acquiring companies in Malaysia and Singapore, and increasing its stake in Indonesia to 70% [169][171]. - The company has positioned itself to meet the growing demand for banking information systems in Southeast Asia, with large commercial banks requiring investments exceeding $20 million for information technology upgrades [171]. Risk Management - The company acknowledges potential risks in market competition, talent retention, and product development, urging investors to consider these factors [5]. - The company has maintained a talent retention policy, with over 90% of its workforce being technical and R&D personnel, to mitigate risks associated with talent turnover [173]. - The company faces competition from both traditional financial technology firms and emerging internet companies, necessitating ongoing innovation and technological advancement [172]. Strategic Partnerships - The company has formed a strategic partnership with Tencent Cloud to launch a new generation distributed financial service framework, enhancing system construction models for financial clients [166]. - The company is a member of the Huawei Kunpeng Intelligent Data Alliance, collaborating on the development of a financial data warehouse solution to support clients' data management needs [51]. Financial Health - The net cash flow from financing activities decreased by 126.67% in 2019 compared to 2018, mainly due to increased repayment efforts [129]. - The company's cash and cash equivalents amounted to ¥629,291,507.61, representing 28.67% of total assets, a decrease of 1.39% from the beginning of the year [134]. - Accounts receivable increased to ¥911,922,444.92, accounting for 41.55% of total assets, an increase of 3.17% compared to the beginning of the year [134]. Product Development - The company has developed a comprehensive data governance system for the People's Bank of China, enhancing data quality and security across core areas [51]. - The company has pioneered internet banking transformation solutions, enabling traditional banks to adapt to the fast-paced digital landscape [54]. - The company is focusing on developing a distributed service platform and an open banking service platform to enhance market competitiveness [100]. Acquisitions - The company acquired an 85% stake in COMET WAVE for ¥2,350,203.52, contributing ¥3,836,972.45 in revenue since acquisition [88]. - The company also acquired 100% of Tianyang Dayou for ¥3,507,000.00, which reported a net loss of ¥494,495.56 [91].

Financial Performance - Operating revenue for the quarter was CNY 213,625,442.49, representing a year-on-year increase of 15.19%[8] - Net profit attributable to shareholders decreased by 32.62% to CNY 15,210,366.73 compared to the same period last year[8] - The net profit after deducting non-recurring gains and losses was CNY 14,315,419.17, a decrease of 4.24% year-on-year[8] - Basic earnings per share fell by 49.93% to CNY 0.0362[8] - The company's total comprehensive income was ¥19,542,417.09, down from ¥24,803,774.26, a decrease of 21.2%[62] - The net profit for the current period was ¥15,050,754.90, a decrease of 38.7% from ¥24,625,091.41 in the previous period[56] - The net profit attributable to the parent company's owners for the current period is ¥23,875,257.72, down from ¥30,281,362.57 in the previous period, indicating a decrease of approximately 21.5%[76] - The company reported a net profit for the period of -¥25,604,325.65, improving from -¥47,369,444.88 in the previous period, indicating a reduction in losses[110] Assets and Liabilities - Total assets increased by 38.33% to CNY 2,521,913,142.83 compared to the end of the previous year[8] - Total assets increased to ¥2,900,374,859.00, up from ¥2,184,828,719.10, representing a growth of approximately 32.8% year-over-year[48] - Current assets totaled ¥1,870,020,557.74, compared to ¥1,204,966,793.52, marking an increase of about 55.1%[48] - Total liabilities rose to ¥1,160,802,097.35 from ¥582,646,602.17, reflecting a growth of approximately 99.0%[41] - The company's total liabilities increased to ¥1,814,269,618.35, compared to ¥1,157,468,444.11, marking a rise of 56.7%[54] - Total liabilities amounted to CNY 582,646,602.17, with current liabilities at CNY 303,243,329.06 and non-current liabilities at CNY 279,403,273.11[140] - The total liabilities to equity ratio increased to 1.67 from 1.13, indicating a higher leverage position[54] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 36,102[12] - The largest shareholder, Wang Changchun, held 15.76% of the shares, totaling 75,921,450 shares[13] - Tencent Technology held 6.65% of the shares, amounting to 32,055,000 shares[13] - The total number of restricted shares held by major shareholders at the end of the period was 136,524,714 shares, with a significant portion being executive lock-up shares[20] Cash Flow and Financing - The company's cash and cash equivalents increased by 64.28% year-on-year, reaching ¥903,394,669.67, driven by the need for financing loans due to business expansion[25] - The net cash flow from financing activities rose by 36.32% to ¥325,487,409.45, driven by increased financing loans[28] - Total cash inflow from financing activities reached 1,059,968,935.96, significantly higher than 396,519,076.11 in the prior period, reflecting increased borrowing[129] - The total cash outflow for financing activities was 849,602,617.86, compared to 251,844,793.69 in the previous period, reflecting higher debt repayments and distributions[129] Expenses and Costs - Total operating costs amounted to ¥193,071,256.94, up from ¥169,364,401.09, reflecting a growth of 14.0%[55] - The company's financial expenses rose by 66.13% to ¥9,175,774.55, due to higher interest expenses from financing loans[25] - The company's income tax expenses increased by 108.79% to ¥1,834,253.35, as tax benefits from the previous year were reduced[25] - Research and development expenses for the current period were ¥41,689,831.74, slightly up from ¥41,537,092.38, showing a marginal increase[55] - Research and development expenses increased significantly to ¥7,304,468.69 from ¥3,659,367.66, marking a rise of approximately 99.5%[66] Operational Efficiency - The cash flow from operating activities remains a focus for future growth strategies, with ongoing efforts to enhance operational efficiency[55] - The operating profit for the current period is reported at -¥8,119,285.79, an improvement from -¥19,708,384.21 in the previous period, indicating a reduction in losses by about 58.8%[66] - The cash flow from operating activities totaled 422,009,438.16, slightly lower than 423,191,374.32 in the previous period, indicating stable revenue generation[126] Investment Activities - The total cash outflow from investing activities was 55,918,702.49, down from 93,764,286.75 in the previous period, indicating reduced investment expenditures[126] - The company has ongoing investments in long-term equity, amounting to CNY 608,472,679.53, indicating a focus on strategic growth[143]

Research and Development - The company reported a significant investment in R&D, allocating over 10% of its funds annually to product development[6] - The company emphasizes the importance of managing product development risks due to uncertainties in achieving expected outcomes[8] - The company acknowledges the potential for product development delays and unmet expectations due to various uncertainties in the R&D process[8] - Continuous investment in product R&D is a priority, with a focus on innovative development tailored to different markets and clients[116] - The R&D budget has been increased by 30% to support innovation and product development initiatives[131] - Research and development investment amounted to RMB 78.18 million, an increase of 20.17% year-on-year, with 145 new R&D projects initiated[67] Financial Performance - Total revenue for the reporting period reached ¥520,580,673.76, an increase of 19.90% compared to ¥434,191,547.14 in the same period last year[29] - Net profit attributable to shareholders was ¥8,664,890.99, reflecting a growth of 12.41% from ¥7,708,486.82 year-on-year[29] - The net profit after deducting non-recurring gains and losses was ¥5,187,246.90, up 37.21% from ¥3,780,484.68 in the previous year[29] - The total assets at the end of the reporting period were ¥2,295,257,425.14, representing a 25.90% increase from ¥1,823,052,637.57 at the end of the previous year[29] - The company achieved operating revenue of 520.58 million yuan, an increase of 19.90% year-on-year[56] - Operating costs rose to RMB 296.75 million, reflecting a year-on-year growth of 23.22%[66] - The company maintained a high R&D investment ratio, exceeding 10% of revenue in 2018, which established a strong product and technological advantage[56] Market Competition and Risks - The company faces market competition risks from both traditional financial technology firms and internet companies, impacting its business expansion efforts[6] - The company has a high dependency on its core technical personnel, with over 90% of its workforce in technical roles, posing a risk of technology loss if key personnel leave[6] - The company faces market risks due to increasing competition from internet companies in the financial technology sector, necessitating ongoing investment in research and development[113] - The company has a high risk of talent turnover, with over 90% of its workforce being technical and R&D personnel, which could severely impact its development[115] Strategic Initiatives and Partnerships - The company has established several subsidiaries to enhance its market presence and service offerings, including full ownership of multiple technology firms[17] - The company is actively exploring international market opportunities to expand its technological reach and service capabilities[8] - The company has formed a strategic partnership with Tencent, launching the new generation distributed financial service framework TDBF in 2019[52] - The company is expanding its market presence in Southeast Asia, having established subsidiaries and acquired companies in the region since 2015[53] - The company has joined the financial ecosystem alliance led by Huawei and established a big data laboratory to develop financial data warehouse solutions[53] Shareholder and Capital Management - The company does not plan to distribute cash dividends or issue bonus shares for the current period[9] - The actual controller and shareholders have fulfilled their commitments during the reporting period, with specific conditions for unlocking shares based on audit reports and timeframes[123] - The company has established a lock-up period of 36 months for shares acquired through the transaction, with specific conditions for release based on audit approvals[126] - The company will adjust the lock-up period according to the latest regulatory opinions if there are discrepancies with the current regulations[126] - The company has outlined specific conditions for share release based on the completion of annual audits and the passage of time[126] Future Outlook - The company provided a future outlook, projecting a revenue growth of 25% for the next fiscal year, driven by new product launches and market expansion[131] - New product development includes the launch of a cloud-based solution expected to generate an additional 300 million RMB in revenue[131] - The company aims to reduce operational costs by 15% through improved efficiency measures in the next fiscal year[131] Client and Market Engagement - The company has served nearly 700 clients across various sectors, establishing significant industry barriers[39] - The company focuses on providing comprehensive solutions that support both traditional and internet financial services, addressing the growing demand for system upgrades in Southeast Asia[54] - User data showed an increase in active users by 15% compared to the previous year, reaching 2 million active users[131]

Revenue and Profit - Total revenue for Q1 2019 reached ¥193,551,691.09, an increase of 24.37% compared to ¥155,627,941.09 in the same period last year[8] - Net profit attributable to shareholders was ¥6,662,778.11, representing a significant increase of 90.70% from ¥3,493,792.03 year-over-year[8] - Net profit excluding non-recurring gains and losses was ¥6,395,052.76, up 134.13% from ¥2,731,386.69 in the previous year[8] - Basic earnings per share increased to ¥0.0207, a rise of 76.92% compared to ¥0.0117 in the same period last year[8] - The company's main business revenue reached 193.55 million yuan, a year-on-year increase of 24.37%[27] - Net profit for the current period was ¥6,893,239.16, representing a significant increase of 89.8% from ¥3,638,311.37 in the previous period[67] - Basic earnings per share increased to ¥0.0207 from ¥0.0117, reflecting a growth of 76.1%[67] Assets and Liabilities - The company's total assets at the end of the reporting period were ¥1,811,156,719.84, a slight decrease of 0.65% from ¥1,823,052,637.57 at the end of the previous year[8] - Total current assets decreased from ¥1,251,180,847.20 to ¥1,238,877,166.46, a decline of approximately 1.1%[46] - Total assets decreased from ¥1,823,052,637.57 to ¥1,811,156,719.84, a decline of about 0.7%[46] - Total liabilities decreased from ¥582,646,602.17 to ¥565,700,856.18, a reduction of approximately 2.4%[49] - The company's total liabilities decreased slightly to ¥1,156,067,823.62 from ¥1,157,468,444.11, a reduction of 0.1%[62] - Total equity increased from ¥1,240,406,035.40 to ¥1,245,455,863.66, an increase of about 0.4%[52] - Total equity decreased to ¥1,022,630,517.55 from ¥1,027,360,274.99, a decline of 0.5%[62] Cash Flow - The net cash flow from operating activities was negative at -¥131,980,638.53, worsening by 14.33% compared to -¥115,442,101.87 in the same period last year[8] - Cash flow from operating activities resulted in a net outflow of -131,980,638.53 CNY, compared to -115,442,101.87 CNY in the same quarter last year, indicating a decline in cash generation[81] - Total cash inflow from operating activities was 107,694,415.44 CNY, down from 129,300,639.87 CNY year-over-year[80] - Cash outflow for operating activities totaled 239,675,053.97 CNY, slightly lower than 244,742,741.74 CNY in the previous year[80] - The ending cash and cash equivalents balance was 392,009,207.33 CNY, down from 250,224,255.59 CNY year-over-year[83] - Cash outflow from operating activities totaled 173,357,652.73, compared to 169,537,309.29 in the previous period, indicating increased operational expenses[87] - Cash inflow from operating activities was 84,468,971.59, slightly up from 84,166,287.71 in the previous period[87] Investments and Expenses - The total amount of raised funds is 29,122.62 million, with 242.05 million invested in the current quarter, representing 0.83% of the total[33] - Cumulative investment in projects reached 22,668.33 million, achieving a feasibility rate of 77.73%[33] - The company has adjusted the investment project from "Financial Information Technology Overall Solution" to "Enterprise Value Accounting and Management Construction Project" due to significant changes in project feasibility[34] - Operating costs rose by 54.71% year-on-year, primarily due to an increase in personnel and benefits[24] - Research and development expenses were ¥14,740,246.07, down 40.8% from ¥24,914,176.95 in the previous period[63] - The company reported a decrease in financial expenses to ¥1,244,636.44 from ¥2,687,566.10, a reduction of 53.8%[63] Shareholder Information - The top shareholder, Wang Changchun, holds 16.65% of the shares, with a total of 53,528,900 shares[14] Other Financial Information - The company received government subsidies amounting to ¥302,230.44 during the reporting period[9] - There are no violations regarding external guarantees during the reporting period[39] - There are no non-operating fund occupations by controlling shareholders or related parties during the reporting period[39] - The company has not disclosed any issues regarding the use of raised funds[34] - The company did not undergo an audit for the first quarter report, which may affect the reliability of the financial data presented[91]

Financial Performance - In 2018, the company achieved an annual revenue exceeding RMB 1 billion, marking a 24% year-on-year growth and maintaining a continuous growth for 7 years since its listing, with an average annual growth rate of 31%[6] - The company's operating revenue for 2018 was CNY 1,087,496,802.95, representing a 23.63% increase from CNY 879,652,256.18 in 2017[32] - The net profit attributable to shareholders for 2018 was CNY 56,454,112.92, a decrease of 35.62% compared to CNY 87,686,514.31 in 2017[32] - The net profit after deducting non-recurring gains and losses was CNY 44,970,446.84, down 51.35% from CNY 92,437,421.00 in 2017[32] - The net cash flow from operating activities for 2018 was CNY 17,995,400.04, a significant improvement of 314.23% from -CNY 8,400,063.26 in 2017[32] - The total assets at the end of 2018 were CNY 1,823,052,637.57, an increase of 24.24% from CNY 1,467,399,502.63 at the end of 2017[32] - The net assets attributable to shareholders at the end of 2018 were CNY 1,230,671,814.67, up 14.02% from CNY 1,079,309,623.73 at the end of 2017[32] - The basic earnings per share for 2018 was CNY 0.1836, a decrease of 39.61% from CNY 0.3040 in 2017[32] - The diluted earnings per share for 2018 was CNY 0.1707, down 42.66% from CNY 0.2977 in 2017[32] - The weighted average return on equity for 2018 was 4.50%, a decline of 4.38% from 8.88% in 2017[32] Market Expansion - The overseas market saw a significant increase in sales contracts, achieving a 152% growth in 2018, positioning the company as a leader in internet financial solutions[6] - The company anticipates that the overseas market will be a major growth driver in the future, especially following the issuance of virtual banking licenses in Hong Kong[6] - The company has established a strategy to expand into overseas markets, particularly in Southeast Asia, where it has developed competitive products and gained a good brand image[174] Research and Development - The company plans to invest over 10% of its funds annually in product research and development, focusing on innovative R&D and technology transformation for both domestic and international markets[11] - The company has maintained a leading position in the industry due to its long-term commitment to independent research and development, with a focus on diverse application scenarios[48] - The company launched 118 new product developments and upgrades, with R&D investment increasing by 39.94% to CNY 14,479.02 million[61] - R&D expenses increased by 36.30% to CNY 94,222,023.67, driven by product innovation requirements[83] - The number of R&D personnel increased to 915 in 2018, accounting for 25.85% of the total workforce, up from 24.71% in 2017[96] Strategic Partnerships - The company has entered into a strategic partnership with Tencent to develop the "Yinhutong" platform, expanding its presence in the core systems of state-owned banks and the securities industry[6] - The company established a partnership with Tencent, becoming its second-largest shareholder and collaborating on the "Yinhutong" platform[62] Competitive Landscape - The company is facing competitive pressures from internet giants like Ant Financial and is committed to leveraging its advantages in the traditional B2B market[7] - The financial technology industry is highly competitive, with new entrants like Tencent and Ant Financial raising the bar for technology requirements, necessitating continuous innovation and investment in R&D[175] Profit Distribution - The profit distribution plan includes a cash dividend of RMB 1.50 per 10 shares and a capital reserve conversion of 5 shares for every 10 shares held[14] - The cash dividend for the 2018 profit distribution is proposed to be RMB 1.50 per 10 shares, with a capital reserve increase of 5 shares for every 10 shares held[188] - The cash dividend amount for 2018 represents 85.42% of the net profit attributable to the company's ordinary shareholders[189] - The cash dividend total for 2018 was 100% of the profit distribution amount, indicating a full payout[187] Operational Efficiency - The company is focused on evolving its technology, products, services, and management to ensure long-term competitive capabilities[7] - The company does not have significant seasonality in its main business, but revenue shows seasonal fluctuations influenced by financial institutions' processes[66] - Total operating costs increased by 29.99% to CNY 535,613,612.67, with wages and benefits accounting for 72.44% of total costs[73] Client Base and Projects - The company served a total of 555 clients, including 392 bank clients and 163 non-bank clients, showing significant growth from previous years[62] - The company participated in 13 bids for core banking system projects, winning 7, maintaining a win rate of 53.85%[62] - The company has successfully won key projects from major financial institutions, including the National Development Bank and Agricultural Development Bank, solidifying its leading position in the big data financial technology sector[50] Investment and Financial Management - The company reported a cash surplus of RMB 5.25 million from the non-public offering, resulting from a cash compensation refund due to underperformance of a subsidiary[158] - The company made a significant equity investment of ¥54 million in Shenzhen Changliang Baoming Industrial Investment Partnership, acquiring a 45% stake[138] - The total amount of raised funds from non-public offerings was ¥29,522.62 million, with ¥1,289.85 million utilized during the reporting period[141] Employee Incentives - The company implemented a large-scale employee stock incentive plan benefiting over 600 core employees, reinforcing its core values of shared success[7] - The company emphasizes the importance of talent retention, with over 90% of its workforce being technical and R&D personnel, and has implemented stock incentive policies to maintain core team stability[175]

Financial Performance - Operating revenue for the period reached CNY 185,452,481.64, a year-on-year increase of 23.23%[8] - Net profit attributable to shareholders increased by 190.14% to CNY 22,572,875.75 compared to the same period last year[8] - Basic earnings per share rose by 175.46% to CNY 0.0741[8] - Total operating revenue for Q3 2018 was CNY 185,452,481.64, an increase of 23.2% compared to CNY 150,495,044.35 in the same period last year[36] - Operating profit for the period was CNY 24,551,761.89, up 153.5% from CNY 9,683,549.48 in Q3 2017[38] - Net profit attributable to shareholders was CNY 22,572,875.75, a significant increase of 189.5% compared to CNY 7,780,031.08 in the previous year[38] - The total comprehensive income for the period was CNY 24,803,774.26, compared to CNY 5,752,173.61 in Q3 2017[39] - Net profit for the current period was ¥30,943,296.63, compared to ¥27,082,059.20 in the previous period, representing an increase of 10.5%[46] - The company reported a comprehensive income total of ¥31,473,628.19, up from ¥23,165,493.32, reflecting a growth of 35.5%[47] Assets and Liabilities - Total assets increased by 13.40% to CNY 1,664,004,064.61 compared to the end of the previous year[8] - Current assets totaled CNY 1,138,304,617.23, an increase of 22.0% from CNY 933,516,794.62 at the start of the period[29] - Total liabilities increased to CNY 544,711,571.38, up from CNY 380,446,563.13, marking a rise of 43.1%[31] - Shareholders' equity rose to CNY 1,119,292,493.23, compared to CNY 1,086,952,939.50 at the beginning of the period, reflecting an increase of 2.9%[31] - Total assets increased to CNY 1,968,252,195.40, compared to CNY 1,715,883,553.39 at the end of the previous year[38] Cash Flow - The net cash flow from operating activities for the year-to-date was CNY -218,404,817.16, a decrease of 18.49%[8] - Cash inflow from investment activities totaled 60,391,772.34 CNY, while cash outflow was 93,764,286.75 CNY, resulting in a net cash flow of -33,372,514.41 CNY, a significant decrease from -164,515,076.63 CNY in the prior period[56] - The net cash flow from financing activities was 144,674,282.42 CNY, down from 158,981,376.25 CNY year-over-year, reflecting a decrease in financing efficiency[57] - The total cash and cash equivalents at the end of the period stood at 347,496,860.60 CNY, an increase from 219,335,023.55 CNY in the previous year[57] - The net cash flow from operating activities was -71,832,006.06 CNY, compared to -26,568,221.12 CNY in the previous period, indicating a decline in operational cash generation[56] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 22,315[12] - The largest shareholder, Wang Changchun, holds 16.65% of the shares, with 49,146,675 shares pledged[12] - Tencent holds 6.65% of the shares, amounting to 21,370,000 shares[12] Expenses and Investments - Research and development expenses increased by 80% to CNY 99,035,062.81 due to increased investment in new product development[19] - The company reported a net investment income of CNY 3,928,809.74, a 114% increase due to the disposal of equity in subsidiaries[19] - Research and development expenses rose to CNY 41,537,092.38, representing a 29.3% increase from CNY 32,127,361.88 in Q3 2017[36] - The company experienced an increase in management expenses to ¥144,060,713.44 from ¥105,721,279.74, an increase of 36.1%[45] Other Financial Metrics - The company reported non-recurring gains and losses totaling CNY 11,551,494.95 for the year-to-date[9] - Other income for the period was CNY 1,763,302.99, an increase from CNY 1,080,300.00 in the previous year[38] - Other income rose to ¥6,144,982.02 from ¥2,795,972.05, indicating a growth of 120.5%[45] - The company experienced a negative impact of 1,190,099.58 CNY from exchange rate fluctuations on cash and cash equivalents[57]

Financial Performance - Total revenue for the reporting period was ¥434,191,547.14, an increase of 21.29% compared to ¥357,974,641.91 in the same period last year[25]. - Net profit attributable to shareholders decreased by 59.18% to ¥7,708,486.82 from ¥18,882,427.74 year-on-year[25]. - The net profit after deducting non-recurring gains and losses fell by 74.85% to ¥3,780,484.68 from ¥15,034,215.14 in the previous year[25]. - The company's total assets increased by 13.20% to ¥1,661,034,176.41 from ¥1,467,399,502.63 at the end of the previous year[25]. - The operating cost for the period was CNY 240.83 million, reflecting a growth of 20.60% compared to the previous year[42]. - The net profit attributable to the parent company was CNY 7.71 million, with a 74.85% decrease in net profit after deducting non-recurring gains and losses[42]. - The company achieved operating revenue of CNY 434.19 million, a year-on-year increase of 21.29%[42]. - The gross profit margin for software products was 43.18%, with a year-on-year increase of 2.79%[48]. - The company reported a net profit of CNY 6,318,205.22, a decrease of 67.2% compared to CNY 19,248,521.40 in the previous year[156]. Cash Flow and Financial Risks - The company reported a significant cash flow risk due to project timelines, with cash flow expected to show a large negative figure in the first half of the year[11]. - The company has a well-defined strategy to mitigate cash flow risks through a contract prepayment system, although project completion may take several months to over a year[11]. - The company plans to strengthen cost control and increase accounts receivable collection to mitigate cash flow risks[84]. - The company reported a net cash outflow from operating activities of CNY -212,985,153.17, worsening from CNY -159,548,941.03 in the previous period[164]. - The net cash flow from operating activities was -120,329,858.15 yuan, compared to -69,638,917.97 yuan in the previous period, indicating a decline in operational performance[168]. - The company reported a cash flow from financing activities of CNY 243.38 million, a 105.65% increase due to the issuance of restricted stock[46]. Business Strategy and Market Position - The company is expanding its business towards financial technology, internationalization, and internet integration, which involves substantial product development efforts[10]. - The company acknowledges market risks due to increasing competition in the financial technology sector, with many experienced competitors in various product segments[7]. - The company emphasizes the importance of talent retention, as the loss of key personnel could negatively affect its business and technological innovation[9]. - The company is actively promoting advanced solutions to help financial institutions achieve transformation and upgrade[35]. - The company secured multiple key projects, including core projects for major banks, enhancing its competitive advantage in financial core and big data sectors[43]. Shareholder and Equity Management - The company plans not to distribute cash dividends, issue bonus shares, or convert reserves into share capital[12]. - The company launched a stock incentive plan, granting shares to 617 employees, which is the second implementation since its IPO[38]. - The total number of shares increased from 299,300,846 to 321,517,746 after the issuance of 22,216,900 restricted shares to 617 incentive recipients[122]. - The company’s unrestricted shares decreased from 60.58% to 57.91% of total shares after the issuance of new shares[121]. - The company’s major shareholders have scheduled unlock dates for their restricted shares, with significant amounts set to be released on August 17, 2018[124]. Regulatory and Macroeconomic Environment - The company is facing macroeconomic risks, particularly from regulatory pressures in the financial industry, which may impact its business operations[6]. - The company faces macro risks due to regulatory pressures in the financial industry, impacting its clients, primarily banks[80]. - The competitive landscape in the fintech sector is intensifying, with numerous experienced competitors, prompting the company to maintain high R&D investments[81]. Research and Development - The company maintained a high level of R&D investment to enhance product competitiveness amid increasing market challenges[35]. - Research and development expenses reached CNY 65.05 million, a significant increase of 168.37% year-on-year, driven by new product innovation[46]. - The company is focusing on innovative R&D to extend its solutions towards financialization, internationalization, and internetization, which involves significant uncertainty[83]. Investment and Capital Management - The company invested CNY 86,000,000.00 during the reporting period, a decrease of 42.67% compared to CNY 150,000,000.00 in the same period last year[58]. - The total amount of raised funds is CNY 29,122.62 million, with CNY 547.39 million invested during the reporting period[63]. - The company has committed to various projects, with all cash payments for working capital fully utilized[65]. - The company has not engaged in any entrusted financial management, derivative investments, or entrusted loans during the reporting period[70][71][72]. Corporate Governance and Compliance - The company is committed to ensuring the accuracy and completeness of its financial reports, with key management personnel affirming the integrity of the half-year report[4]. - The company did not experience any major litigation or arbitration matters during the reporting period[93]. - There were no significant penalties or rectification situations reported during the period[94]. - The company has not reported any major environmental protection issues as it is classified as a software enterprise and does not fall under key pollutant discharge units[112].

Dividend Distribution - The company plans to distribute a cash dividend of 0.60 RMB per 10 shares to all shareholders, based on a total of 299,300,846 shares[7]. - The company declared a cash dividend of RMB 0.60 per 10 shares, totaling RMB 17,958,050.76, which represents 20.48% of the net profit attributable to shareholders[102]. - The total distributable profit for the year was RMB 291,754,976.83, with cash dividends accounting for 100% of the profit distribution[102]. - The company has maintained a consistent cash dividend policy over the past three years, with varying amounts per share[103]. - The company is in a growth phase and has significant capital expenditure plans, which influenced the dividend distribution strategy[102]. - The company has committed to maintaining a minimum cash dividend ratio of 20% during profit distributions[102]. Financial Performance - The company reported a total revenue of 1.5 billion RMB for the fiscal year 2017, representing a year-on-year growth of 20%[109]. - The company achieved a net profit of RMB 87,686,514.31 for the year, with a 10% legal surplus reserve not applicable due to no required allocation[102]. - The net profit attributable to shareholders for 2017 was ¥87,686,514.31, a decrease of 13.40% from ¥101,252,902.06 in 2016[20]. - The company achieved a revenue of 878.65 million yuan in the reporting period, representing a year-on-year growth of 35.16%[41]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the year, representing a growth of 20% compared to the previous year[126]. - The company expects a revenue growth of 25% for the upcoming fiscal year, projecting a total revenue of 1.875 billion RMB[111]. Market Position and Strategy - The company is undergoing a transformation from a traditional banking IT service provider to a mixed-mode financial IT service provider, facing significant market challenges and risks[5]. - The financial information services market is highly competitive, with many experienced competitors in various segments, leading to uncertainties in future performance[5]. - The company is focusing on expanding its market presence and developing new products and technologies to adapt to the changing financial landscape[5]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[113]. - The company is committed to strategic partnerships with industry leaders like Tencent Cloud to drive innovation and service delivery[93]. - The company is expanding its market presence by targeting non-bank financial sectors such as financial companies, micro-lending companies, and asset management firms[56]. Research and Development - The company invested approximately 103.47 million yuan in R&D during the reporting period, reflecting its commitment to innovation[37]. - The company conducted over 80 new product developments and upgrades during the reporting period, enhancing its core business systems and big data solutions[30]. - Research and development expenses increased by 30% to 150 million RMB, reflecting the company's commitment to innovation[109]. - The company plans to increase investment in internet finance solutions and big data solutions, while also expanding into international markets in 2018[93]. - The company has established several wholly-owned subsidiaries to provide specialized financial solutions, including core financial solutions and big data solutions[91]. Operational Challenges - The company reported seasonal fluctuations in cash flow and net profit, which pose operational and financial risks[7]. - The company is experiencing pressure and risks from the impact of internet finance on traditional banking profitability models[5]. - The company anticipates cash flow risks, particularly in the first half of the year, due to the nature of project-based revenue recognition[98]. - The company has faced strict management process controls from major banking clients, impacting contract signing and project implementation[7]. Investment and Acquisitions - The company acquired Shanghai Mingda Insurance Brokerage Co., Ltd. for ¥23,200,000.00, gaining 100% ownership[51]. - The company plans to increase its investment in Zhuhai Changliang Internet Industry Equity Investment Fund Partnership by up to CNY 23.76 million, raising the fund size from CNY 10 million to CNY 200 million[147]. - The company will no longer hold equity in Chengdu Changliang Software Co., Ltd., indicating a strategic shift in its investment portfolio[86]. - The company signed a strategic cooperation agreement with Tencent Cloud to build a dedicated financial cloud and establish a financial industry alliance, enhancing mutual trust and business relations[167]. Corporate Governance - The company guarantees that any losses incurred due to breaches of commitments will be compensated, with all profits from such breaches reverting to the company[122]. - The company aims to minimize related party transactions and will follow market principles for any unavoidable transactions[125]. - The company has established a performance compensation mechanism to address any shortfalls in promised profits from acquisitions[118]. - The company continues to focus on maintaining strong governance and oversight through its board and supervisory committee[196]. Shareholder Information - The total number of shares for the dividend distribution was based on 299,300,846 shares[102]. - The company’s total share capital after the changes was 299,300,846 shares, with a total of 7,112,846 shares being adjusted due to various factors[172]. - The company’s unrestricted shares increased from 141,683,100 to 181,323,100, representing 60.58% of the total shares[170]. - The company has a total of 24,105,414 shares under pre-IPO lock-up agreements, with 10,838,232 shares released in the current period[177]. Employee and Talent Management - The company emphasizes the importance of talent acquisition and retention, planning to implement a comprehensive equity incentive plan to motivate employees across various departments[93]. - The company implemented an employee stock incentive plan, with 4,557,499 shares available for unlocking in the third phase[142]. - The leadership team has a combined experience of over 30 years in the technology and finance sectors, contributing to strategic decision-making[199][200].

Financial Performance - Total revenue for Q1 2018 was ¥155,627,941.09, an increase of 22.39% compared to ¥127,156,801.91 in the same period last year[8] - Net profit attributable to shareholders was ¥3,493,792.03, representing a significant increase of 305.44% from ¥861,720.37 year-on-year[8] - Net profit excluding non-recurring gains and losses reached ¥2,731,386.69, up 1,283.10% from ¥197,483.03 in the previous year[8] - Basic earnings per share increased to ¥0.0117, a rise of 290.00% compared to ¥0.0030 in the same period last year[8] - The company's main business revenue reached 155.63 million yuan, an increase of 22.39% compared to the same period last year[24] - Net profit attributable to shareholders was 3.49 million yuan, reflecting a significant growth of 305.44% year-over-year[24] - The growth in revenue was primarily driven by the continuous expansion of financial core solutions and rapid growth in internet finance and big data solutions[24] - The gross profit margin for Q1 2018 was approximately 4.5%, compared to 1.0% in the previous year[49] - The company reported a total comprehensive income of CNY 5,078,429.84 for Q1 2018, compared to CNY 1,895,490.40 in Q1 2017, marking an increase of 167.5%[50] Cash Flow and Liquidity - The company reported a net cash flow from operating activities of -¥115,442,101.87, worsening by 16.01% from -¥99,512,598.14 year-on-year[8] - Cash and cash equivalents decreased by 34.13%, amounting to -131,258,270.15 RMB due to seasonal collection issues in the first quarter[23] - Operating cash inflow totaled CNY 129,300,639.87, up from CNY 75,436,152.17 in the previous period, representing a 71.5% increase[56] - Net cash flow from operating activities was negative CNY 115,442,101.87, compared to negative CNY 99,512,598.14 in the prior period[56] - The ending cash and cash equivalents balance was CNY 253,338,755.39, down from CNY 351,074,831.29 in the previous period[57] - Total cash outflow from operating activities reached CNY 169,537,309.29, compared to CNY 110,102,190.14 in the previous period, indicating a 53.8% increase[60] - The net increase in cash and cash equivalents was negative CNY 131,258,270.35, contrasting with a positive increase of CNY 62,914,704.31 in the previous period[57] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,458,882,114.34, a slight decrease of 0.58% from ¥1,467,399,502.63 at the end of the previous year[8] - The total liabilities as of the end of Q1 2018 were CNY 705,269,337.25, a decrease from CNY 737,127,970.87 at the end of the previous quarter[49] - The total current liabilities decreased to CNY 286,057,918.18 from CNY 291,079,273.43, a reduction of approximately 1.0%[42] - The total liabilities decreased to CNY 372,387,979.67 from CNY 380,446,563.13, a decline of about 2.8%[42] - The equity attributable to shareholders of the parent company was CNY 1,078,982,096.59, down from CNY 1,079,309,623.73, a decrease of approximately 0.03%[43] Operational Efficiency - Management expenses rose by 64.80%, amounting to 23,767,511.07 RMB, reflecting increased investment in R&D during the reporting period[23] - Operating expenses, including sales and management costs, totaled CNY 73,106,181.91 in Q1 2018, compared to CNY 49,250,344.23 in Q1 2017, reflecting a year-over-year increase of 48.5%[49] - The company has implemented effective cost control measures, contributing to improved profitability[24] Risks and Challenges - The company faces market risks due to increasing competition in the financial information technology sector[10] - There are risks associated with talent retention, as the industry requires highly skilled professionals[11] - The company is expanding its business towards financialization, internationalization, and internetization, which involves significant product development risks[11] Fundraising and Investments - The total amount of raised funds was 516.33 million yuan, with 2.35 million yuan invested in the current quarter[30] - Cumulative changes in the use of raised funds amounted to 77.61 million yuan, representing 15.03% of the total raised funds[30] - The company reported a total of 7,542.76 million CNY in raised funds, with 2,200 million CNY allocated for working capital and 5,034.69 million CNY for purchasing the headquarters base in Shenzhen[32] Project Developments - The company has optimized its R&D processes, resulting in a significant reduction in R&D expenses for the new generation banking core business system project[32] - The company decided to terminate the original project for the new generation banking core business system due to changes in market conditions and customer needs, and is now implementing a revised project with new technology architecture[32] - The company has completed the new generation banking core business system project and obtained software copyright registration[34]