Financial Performance - Operating revenue for the reporting period reached CNY 344,480,502.99, representing a growth of 38.29% year-on-year[7] - Net profit attributable to shareholders was CNY 32,278,766.14, an increase of 88.20% compared to the same period last year[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 23,989,184.89, up 145.48% year-on-year[7] - Basic earnings per share for the reporting period was CNY 0.0403, an increase of 84.86% compared to the same period last year[7] - Total operating revenue for the current period reached ¥344,480,502.99, a significant increase of 38.3% compared to ¥249,105,309.92 in the previous period[49] - Net profit for the current period was ¥32,273,682.73, representing a 87.5% increase from ¥17,220,833.41 in the same period last year[52] - The company reported a total comprehensive income of ¥32,016,778.81, significantly higher than ¥12,237,100.44 from the previous period[55] - The company reported a total comprehensive income of ¥91,238,553.50 for the current period, compared to ¥4,166,401.16 in the previous period[72] Cash Flow - The net cash flow from operating activities for the year-to-date was CNY 20,522,901.16, reflecting a significant increase of 121.21%[7] - Net cash flow from operating activities improved significantly to ¥20,522,901.16, a turnaround from a negative cash flow of ¥96,747,031.56 in the previous year, marking a 121.21% increase[23] - The total cash inflow from operating activities was ¥1,199,588,984.86, up from ¥932,886,556.47 in the previous period[73] - Net cash flow from operating activities was ¥147,960,267.75, significantly up from ¥62,338,746.38, marking an increase of 137.5%[80] - The company reported a total cash inflow from operating activities of ¥682,100,445.11, with cash outflow for operating activities at ¥534,140,177.36[80] Assets and Liabilities - Total assets at the end of the reporting period amounted to CNY 3,655,504,427.07, a decrease of 4.60% compared to the end of the previous year[7] - The total assets as of September 30, 2019, amounted to ¥3,655,504,427.07, a slight decrease from ¥3,831,930,529.20 at the end of 2018[32] - Total liabilities decreased from ¥723,657,504.30 to ¥542,480,036.70, a reduction of approximately 25%[35] - Current liabilities decreased from ¥701,603,114.83 to ¥522,981,949.18, representing a decline of about 25.5%[35] - Non-current liabilities decreased from ¥22,054,389.47 to ¥19,498,087.52, a decrease of approximately 7%[35] - Total equity increased from ¥3,108,273,024.90 to ¥3,113,024,390.37, reflecting a growth of about 0.2%[38] - The company's cash and cash equivalents decreased by 53.78% to ¥568,306,413.27 from ¥1,229,651,139.98, attributed to investments made with idle funds[29] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 19,833[11] - The largest shareholder, Shen Jiyi, held 10.34% of the shares, with a total of 82,858,645 shares[11] Costs and Expenses - Operating costs rose to ¥242,365,272.98, reflecting a 47.64% increase from ¥164,159,538.23, primarily due to higher sales volume[20] - Total operating costs amounted to ¥333,274,921.63, up from ¥251,019,457.24, reflecting a rise of 32.7%[49] - Research and development expenses increased to ¥72,877,701.13, up 11.5% from ¥65,312,682.18, indicating a continued focus on innovation[49] - The company’s sales expenses increased to ¥207,969,317.23 from ¥172,161,036.49 in the previous period[69] Non-Recurring Items - The company reported a non-recurring gain of CNY 23,401,585.07 for the year-to-date, primarily from government subsidies and investment management income[7] - The company’s financial expenses turned positive with a reported income of ¥6,135,444.17, compared to an expense of ¥3,251,447.27 in the previous year, indicating increased interest income[20] Inventory and Receivables - Inventory surged by 168.81% to ¥106,564,965.95, up from ¥39,642,886.60, due to increased costs of unverified construction projects[29] - Accounts receivable decreased from ¥873,456,617.15 to ¥766,337,703.19, a reduction of about 12.2%[39]

Financial Performance - The company's operating revenue for the first half of 2019 was ¥521,090,540.80, representing a 25.15% increase compared to ¥416,367,506.49 in the same period last year[23]. - The net profit attributable to shareholders of the listed company was -¥33,296,928.25, an improvement of 45.13% from -¥60,683,871.46 in the previous year[23]. - The net cash flow from operating activities was -¥94,527,094.03, which is a 15.42% improvement compared to -¥111,762,512.40 in the same period last year[23]. - The basic earnings per share for the reporting period was -¥0.0416, improving by 44.90% from -¥0.0755 in the same period last year[23]. - The diluted earnings per share also stood at -¥0.0416, reflecting the same percentage improvement as the basic earnings per share[23]. - The weighted average return on net assets was -1.07%, an improvement of 1.07% from -2.14% in the previous year[23]. - The company reported a financial loss of RMB 7,208,111.71, a decrease of 362.86% compared to the previous year due to increased interest income from guarantees[42]. - The company reported a forecasted net profit of ¥13.5 million to ¥18.5 million for the period from July to September 2019, which is a decrease of 21.29% compared to the same period last year[86]. Assets and Liabilities - The total assets at the end of the reporting period were ¥3,595,357,576.32, down 6.17% from ¥3,831,930,529.20 at the end of the previous year[23]. - The net assets attributable to shareholders of the listed company decreased by 1.10% to ¥3,074,802,461.74 from ¥3,108,855,355.32 at the end of the previous year[23]. - The company's cash and cash equivalents decreased by 50.85% year-on-year, primarily due to a net outflow from financial products[42]. - The company's cash and cash equivalents decreased to ¥891,089,420.01, accounting for 24.78% of total assets, down from 32.09% in the previous year[51]. - The company's short-term borrowings decreased to ¥163,274,125.00, representing 4.54% of total liabilities, down from 6.22% in the previous year[51]. - The total assets decreased by 7.31% due to repayments of bank loans, impacting the liquidity position[51]. - Total liabilities decreased from CNY 723,657,504.30 to CNY 521,340,533.89, a decrease of about 27.9%[187]. - The company's equity attributable to shareholders decreased from CNY 3,108,855,355.32 to CNY 3,074,802,461.74, a decline of approximately 1.1%[187]. Revenue Breakdown - Total revenue for security products reached ¥318,623,760.57, with a gross margin of 73.73%, reflecting a year-on-year increase of 25.56%[46]. - Total revenue for security services was ¥177,827,960.84, with a gross margin of 76.63%, showing a year-on-year increase of 30.42%[46]. - Revenue from the financial sector amounted to ¥115,264,599.32, with a gross margin of 78.12%, representing a year-on-year increase of 10.34%[46]. - Total operating revenue for the first half of 2019 was CNY 521,090,540.80, an increase of 25.1% compared to CNY 416,367,506.49 in the same period of 2018[198]. Expenses and Costs - The total operating costs for the first half of 2019 were CNY 594,831,195.48, up 16.0% from CNY 512,667,939.75 in the previous year[198]. - Research and development expenses increased by 10.20% to RMB 164,459,562.85[42]. - The cost of raw materials increased by 21.45% year-on-year, now accounting for 36.01% of total operating costs[47]. - Sales expenses rose to CNY 240,770,848.76, an increase of 21.5% compared to CNY 198,061,968.46 in the first half of 2018[198]. Investments and Projects - The company has invested CNY 39.49 million in the Smart Security Protection System project, achieving a progress rate of 91.54%[67]. - The Safety Data Science Platform project has been fully completed with an investment of CNY 20.63 million[67]. - The total amount of raised funds is CNY 771.78 million, with CNY 71.66 million invested during the reporting period[61]. - Cumulative investment of raised funds reached CNY 738.38 million, representing 95.7% of the total raised[61]. Shareholder Information - The total number of shares increased from 799,674,141 to 800,789,859, representing a growth of approximately 0.14%[140]. - The number of restricted shares decreased by 119,932,822, resulting in a total of 80,384,827 restricted shares, which is 10.04% of the total shares[140]. - The number of unrestricted shares increased by 121,048,540, leading to a total of 720,405,032 unrestricted shares, which is 89.96% of the total shares[140]. - The company’s basic earnings per share and diluted earnings per share decreased due to the increase in share capital[144]. - The total number of shareholders at the end of the reporting period was 21,133[149]. Risk Management - The company faces various operational risks and has outlined measures to address these risks in the report[6]. - The company faces risks related to changes in tax policies that could adversely affect its performance, particularly concerning software and integrated circuit industries[88]. - The company is implementing measures to retain core personnel, including stock incentive plans and performance assessment systems[89]. Corporate Governance - The company has not encountered any issues regarding the management and disclosure of raised funds[70]. - The company did not engage in any significant related party transactions during the reporting period[114]. - The company did not undergo any changes in its controlling shareholder or actual controller during the reporting period[158]. - The company's board of directors and senior management did not experience any changes during the reporting period[169].

Financial Performance - Total revenue for Q1 2019 was ¥191,219,053.87, representing a 15.86% increase compared to ¥165,039,821.42 in the same period last year[7] - Net profit attributable to shareholders was -¥24,338,924.96, an improvement of 14.56% from -¥28,487,924.73 year-on-year[7] - The company's revenue showed steady growth during the reporting period, benefiting from industry development[25] - The net loss for the current period was ¥24,512,110.39, an improvement compared to a net loss of ¥28,663,094.99 in the previous period, showing a reduction in losses of about 14.9%[70] - Basic and diluted earnings per share improved to -0.0304 from -0.0354, indicating a positive trend in earnings performance[73] - The company reported a total profit of ¥10,188,654.75 for the current period, compared to a loss of ¥4,348,909.35 in the previous period, marking a significant turnaround[74] Cash Flow - Net cash flow from operating activities was -¥119,402,216.01, a decline of 25.68% compared to -¥95,008,537.21 in the previous year[7] - Cash inflow from operating activities reached 292,287,966.87, up from 250,715,904.22 in the previous period[81] - The net cash flow from operating activities was 13,023,756.89, down from 56,748,043.99 in the previous period[85] - Cash outflow from investment activities totaled 750,581,921.09, compared to 1,456,255,002.39 in the previous period[84] - The net cash flow from investment activities was -270,872,658.56, an improvement from -1,027,933,998.94 in the previous period[84] - Cash inflow from financing activities was 136,546,302.54, compared to 342,533.00 in the previous period[84] - The net cash flow from financing activities was -85,133,428.08, an improvement from -2,879,962.54 in the previous period[84] Assets and Liabilities - Total assets at the end of the reporting period were ¥3,619,979,324.02, down 5.53% from ¥3,831,930,529.20 at the end of the previous year[7] - The company's total liabilities decreased from 3,831,930,529.20 yuan to 3,619,979,324.02 yuan[49] - Total liabilities amounted to CNY 484,665,915.36, a decrease of 33.05% from CNY 723,657,504.30[53] - Total owner's equity reached CNY 3,135,313,408.66, an increase of 0.04% from CNY 3,108,273,024.90[56] - Current assets totaled CNY 2,003,837,911.20, down 7.44% from CNY 2,165,265,324.63[60] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 21,935[10] - The largest shareholder, INVESTOR AB LIMITED, held 18.33% of the shares, totaling 146,742,476 shares[11] - A significant share transfer occurred, with Investor AB Limited transferring 15,140,579 shares and Lenovo Investment transferring 39,956,969 shares to investment funds[32] - After the share transfer, the combined holdings of the investment funds reached 111,081,607 shares, accounting for 13.88% of the total share capital[32] - The company currently has no controlling shareholder or actual controller following the recent share transfers[32] Operational Insights - The company has been actively expanding into international markets, establishing wholly-owned subsidiaries in Hong Kong, the USA, Japan, Singapore, and the UK[29] - The company has implemented measures to retain core employees, including stock incentive plans and performance assessment systems[29] - The company expects to incur losses in the first half of 2019 due to seasonal sales characteristics, with a warning against inferring annual profitability from quarterly data[41] - The company faces risks related to seasonal losses, as new orders and sales revenue are typically lower in the first half of the year[25] - Changes in tax incentive policies could adversely affect the company's performance, particularly regarding corporate income tax rates and VAT refunds[26] Investment and R&D - Research and development expenses rose to ¥65,133,561.45, up from ¥57,903,280.00, indicating an increase of approximately 12.5%[67] - The company plans to continue focusing on R&D and market expansion strategies to enhance future performance[72] Financial Reporting and Compliance - The report for the first quarter of 2019 has not been audited, which may affect the reliability of the financial data presented[102] - The company has implemented new financial and leasing standards, which may impact future financial reporting[102] - The company has no violations regarding the management and disclosure of raised funds[40] - The financial report does not provide specific user data or future guidance, limiting insights into operational performance[101]

Financial Performance - The company's operating revenue for 2018 was ¥1,345,040,751.20, representing a 7.17% increase from ¥1,255,110,707.41 in 2017[29]. - The net profit attributable to shareholders for 2018 was ¥168,070,150.66, a 10.31% increase compared to ¥152,367,683.85 in 2017[29]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥122,250,414.09, which is a significant increase of 36.82% from ¥89,349,023.17 in 2017[29]. - The net cash flow from operating activities for 2018 was ¥85,480,342.50, up 12.64% from ¥75,891,136.51 in 2017[29]. - The total assets at the end of 2018 amounted to ¥3,831,930,529.20, reflecting a 1.87% increase from ¥3,761,452,844.79 at the end of 2017[29]. - The net assets attributable to shareholders at the end of 2018 were ¥3,108,855,355.32, an increase of 8.48% from ¥2,865,854,850.91 at the end of 2017[29]. - The basic earnings per share for 2018 was ¥0.21, a 5.00% increase from ¥0.20 in 2017[29]. - The diluted earnings per share for 2018 was also ¥0.21, consistent with the basic earnings per share[29]. - The company achieved a net profit of RMB 168,070,150.66 for the year 2018, with a total distributable profit of RMB 870,190,500.29[140][144]. - The cash dividend payout ratio for 2018 was 100%, consistent with the company's profit distribution policy[139][144]. Revenue Breakdown - The company reported a total of ¥70,323,589.94 in VAT refunds related to software products, classified as non-recurring gains[39]. - The company experienced a quarterly revenue breakdown with Q4 2018 generating ¥679,567,934.79, the highest among the quarters[30]. - The revenue from security products was CNY 823,593,181.51, accounting for 61.23% of total revenue, with a slight increase of 0.37% year-on-year[77]. - The revenue from security services grew significantly by 34.03% year-on-year, reaching CNY 453,388,887.87, which accounted for 33.71% of total revenue[77]. - The company’s revenue from the financial sector was CNY 280,137,766.66, with a gross margin of 79.82%, reflecting a 24.11% increase year-on-year[80]. - The company’s revenue from the telecommunications sector was CNY 330,224,003.17, with a gross margin of 79.37%, showing a growth of 38.30% year-on-year[80]. Market Expansion and Strategy - The company has established wholly-owned subsidiaries in Hong Kong, the United States, Japan, Singapore, and the United Kingdom to expand its international market presence[12]. - The company has a comprehensive strategy to monitor and mitigate risks associated with overseas market expansion, including local regulations and currency fluctuations[12]. - The company aims to expand its market share in the domestic information security industry and actively explore international markets, striving to become a globally influential information security enterprise[127]. - The company plans to strengthen strategic partnerships with regional governments and industry authorities to contribute to the construction of secure government networks[131]. - The company is committed to optimizing its sales organization management system to enhance business development capabilities and meet the growing security needs of various industries[129]. Innovation and R&D - The company emphasizes innovation and has established a culture of excellence, driving sustainable development through continuous R&D investment[68]. - Research and development expenses for 2018 amounted to ¥317,293,765.92, which is 23.59% of the operating revenue, up from 23.10% in 2017[95]. - The company increased its R&D personnel to 758, which is 27.85% of the total workforce[95]. - The company is actively upgrading existing product security features and developing new cloud platform security products to meet evolving security demands[92]. - The company has a clear plan for continuous innovation in security capabilities and product offerings to maintain competitiveness and profitability[134]. Employee and Talent Management - The company emphasizes the importance of retaining core technical personnel to maintain its technological advantage and has implemented stock incentive plans to stabilize its workforce[8]. - The company is committed to continuous employee training and development as part of its talent strategy to drive growth[11]. - In 2018, the company provided 1,662 hours of training across 2,791 courses, with over 25,651 participants[193]. - The company is committed to enhancing employee welfare, including supplementary medical insurance and various benefits such as birthday celebrations and team-building activities[193]. Risk Management - The company faces risks related to seasonal losses, particularly due to its client base primarily consisting of government and telecom sectors, which have specific budget approval timelines[4]. - The company benefits from a reduced corporate income tax rate of 10% due to its status as a key software enterprise, which could be adversely affected by changes in tax policies[8]. - The company has successfully implemented various security systems, including threat analysis and cloud security platforms, which have received positive customer feedback[132]. Corporate Governance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management, ensuring accountability[4]. - The company has not experienced any non-compliance with the commitments made by its major shareholders[152]. - The company has not faced any major litigation or penalties during the reporting period[162][163]. Shareholder and Investment Information - The profit distribution plan includes a cash dividend of 0.60 RMB per 10 shares, totaling 48,031,737.42 RMB (before tax) to all shareholders[13]. - The company reported a total of 41.32 million yuan in investment income, accounting for 22.21% of total profit[100]. - The company has a total of 280.12 million yuan in restricted assets, primarily for bid and performance guarantees[104]. - The company plans to use up to RMB 300 million of idle raised funds to purchase principal-protected financial products, with a total of RMB 685.8 million in financial products purchased in 2018, generating a return of RMB 10.04 million[120]. Community Engagement and Social Responsibility - The company organized 13 teams for the "Good Walker" charity event, raising RMB 47,685.22 to donate care packages to students in Guizhou[196]. - The company does not fall under the category of key pollutant discharge units as per environmental protection regulations[198]. - The company has not initiated any targeted poverty alleviation programs in the reporting year and has no subsequent plans[197].

Financial Performance - Operating revenue increased by 45.78% to CNY 249,105,309.92 for the current period, and by 24.91% to CNY 665,472,816.41 year-to-date[8] - Net profit attributable to shareholders increased by 246.04% to CNY 17,151,590.88 for the current period, with a year-to-date loss of CNY 43,532,280.58, a decrease of 25.13%[8] - Basic earnings per share rose by 248.30% to CNY 0.0218 for the current period[8] - The company reported a comprehensive income total of ¥12,237,100.44, compared to a comprehensive loss of ¥10,029,734.10 in the previous period[40] - Operating profit for the current period was ¥20,500,701.48, a significant recovery from an operating loss of ¥25,229,295.89 in the previous period[39] - Total profit for the current period was ¥20,642,627.51, compared to a total loss of ¥8,088,213.38 in the previous period[39] - The company achieved a total operating revenue of ¥665,472,816.41, up from ¥532,778,914.10, reflecting a growth of approximately 25%[45] Cash Flow and Liquidity - The company reported a net cash flow from operating activities of CNY -96,747,031.56 year-to-date, a decrease of 6.75%[8] - Cash and cash equivalents decreased by 63.22% to ¥639,907,406.79 from ¥1,739,875,993.83 due to the company's investment in financial products[19] - The company experienced a net decrease in cash and cash equivalents of ¥899,418,619.30 during the period[57] - Cash inflow from other operating activities was ¥5,672,583.71, compared to ¥14,011,024.71 in the previous period, indicating a decline of 59.5%[56] - The company reported a net cash flow from financing activities of -¥72,856,522.94, a significant decrease from ¥564,207,809.62 in the previous period[57] Assets and Liabilities - Total assets decreased by 5.83% to CNY 3,542,018,286.97 compared to the end of the previous year[8] - Total liabilities decreased from CNY 895,580,629.95 to CNY 659,602,330.46, a reduction of approximately 26.4%[32] - Total current liabilities decreased from CNY 868,246,404.28 to CNY 635,005,338.40, a decline of approximately 26.9%[32] - Total non-current assets increased from CNY 910,905,533.69 to CNY 965,208,606.25, an increase of about 6.0%[31] - Shareholders' equity increased from CNY 2,865,872,214.84 to CNY 2,882,415,956.51, an increase of about 0.6%[33] Investment and Development - The company received government subsidies of CNY 4,438,298.54 related to R&D projects[9] - The company’s development expenses surged by 261.29% to ¥64,668,654.28 from ¥17,899,505.66, reflecting ongoing project investments[19] - Research and development expenses rose to ¥65,312,682.18, up from ¥57,692,534.06, indicating an increase of approximately 13.8%[39] - The company achieved investment income of 24,946,894.56 CNY, significantly higher than 7,890,762.73 CNY in the previous period, marking an increase of approximately 215.5%[46] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 27,853[12] - The largest shareholder, INVESTOR AB LIMITED, holds 18.32% of the shares, totaling 146,742,476 shares[12] - The company did not conduct any repurchase transactions among the top 10 shareholders during the reporting period[13] Financial Ratios and Metrics - The weighted average return on equity was 0.59%, a decrease of 1.04% compared to the previous year[8] - The company’s financial expenses increased significantly by 56,622.92% to ¥3,251,447.27 from -¥5,752.44, due to higher loan interest costs[20] - Basic and diluted earnings per share improved to ¥0.0218 from a loss of ¥0.0147 in the previous period[40]

Financial Performance - Total revenue for the reporting period was ¥416,367,506.49, an increase of 15.05% compared to ¥361,898,551.72 in the same period last year[25]. - Net profit attributable to shareholders was -¥60,683,871.46, a decrease of 30.79% from -¥46,396,728.93 year-on-year[25]. - The net cash flow from operating activities was -¥111,762,512.40, reflecting a decline of 5.23% compared to -¥106,207,671.11 in the previous year[25]. - The company reported a basic and diluted earnings per share of -¥0.0755, down 26.89% from -¥0.0595 in the same period last year[25]. - The company achieved operating revenue of CNY 416.37 million, a year-on-year increase of 15.05%[38]. - The net profit attributable to shareholders was CNY -60.68 million, a decrease of 30.79% compared to the previous year, primarily due to increased R&D and marketing investments[38]. - The company reported a net loss for the period was ¥61,073,889.27, compared to a net loss of ¥46,738,907.83 in the previous period, reflecting a deterioration in financial performance[136]. - The company’s total comprehensive income for the period was -17,762,835.16 CNY, compared to 4,901,092.16 CNY in the same period last year, indicating a challenging financial environment[140]. Assets and Liabilities - Total assets decreased by 5.57% to ¥3,551,991,679.05 from ¥3,761,452,844.79 at the end of the previous year[25]. - Cash and cash equivalents decreased by 29.90% due to increased investments in financial products[35]. - The total assets decreased to ¥3,080,178,482.94 from ¥3,165,231,047.12, indicating a reduction of approximately 2.67%[132]. - The company's total current assets decreased to CNY 2,622,186,478.55 from CNY 2,850,547,311.10, reflecting a decline of approximately 8%[127]. - The total liabilities decreased from CNY 895,580,629.95 to CNY 677,583,726.59, representing a decline of approximately 24%[128]. - The company's equity increased to ¥2,823,219,669.03 from ¥2,770,161,442.65, reflecting a growth of 1.92%[133]. Investments and R&D - The company increased its investment in cloud security solutions and related products, focusing on SaaS-based security services[33]. - Significant investment was made in the development of industrial internet security and IoT security products[33]. - Research and development efforts were intensified in big data security and threat modeling using machine learning and AI[34]. - The company reported a 199.48% increase in development expenditures, indicating a rise in ongoing development projects[35]. - R&D expenses increased by 6.87% to CNY 149.23 million, reflecting the company's commitment to enhancing its competitive edge[41]. Market Presence and Strategy - The company has established wholly-owned subsidiaries in Hong Kong, the United States, Japan, Singapore, and the United Kingdom to expand its international market presence[11]. - The company is actively monitoring and assessing risks associated with overseas market expansion, including local operating environments and regulatory changes[11]. - The company maintained a market share of 17.9% in the Web Application Firewall (WAF) market, leading the Greater China region for eight consecutive years[38]. Corporate Governance and Compliance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and senior management[4]. - The company has implemented multiple stock incentive plans since 2014, including stock options and restricted stock plans, to enhance its governance structure and incentive mechanisms[83]. - The company did not engage in any significant related party transactions during the reporting period[87]. - The company reported no significant litigation or arbitration matters during the reporting period[80]. Cash Flow and Financing - The cash flow from operating activities was CNY -111.76 million, a decrease of 5.23% compared to the previous year[41]. - The company reported a cash outflow from investing activities of -383,775,020.82 CNY, compared to -920,637,618.03 CNY in the previous year, showing an improvement in cash management[144]. - Cash inflow from financing activities was 153,818,714.20 CNY, a decrease from 847,905,187.20 CNY in the previous year, indicating reduced financing activities[144]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 27,471[111]. - Investor AB Limited holds 18.24% of the shares, totaling 146,742,476 shares, with 71,124,638 shares under lock-up[111]. - The total number of locked-up shares at the end of the reporting period is 290,157,662 shares, with 92,683,757 shares released during the period[109]. Taxation and Financial Policies - The company is subject to a 10% corporate income tax rate due to its qualification as a key software enterprise, which could be adversely affected by changes in tax policies[8]. - The company does not plan to distribute cash dividends or issue bonus shares during the reporting period[12]. - The company has not sold any major assets or equity during the reporting period[67][68].

Financial Performance - Total revenue for Q1 2018 was ¥165,039,821.42, representing a 24.44% increase compared to ¥132,625,262.73 in the same period last year[8] - Net profit attributable to shareholders was -¥28,487,924.73, an improvement of 47.27% from -¥54,021,711.79 year-on-year[8] - Basic and diluted earnings per share improved to -¥0.0354 from -¥0.0726, reflecting a 51.18% increase[8] - Operating profit improved by 55.57%, resulting in a loss of ¥27,666,047.29 for Q1 2018 compared to a larger loss in Q1 2017[24] - The company reported a significant increase in development expenditures from CNY 17,899,505.66 to CNY 40,177,730.81, an increase of approximately 124.5%[46] - The company reported a total comprehensive loss of CNY 25,287,487.51 for Q1 2018, compared to a loss of CNY 54,204,097.47 in the same quarter last year[55] Cash Flow - Net cash flow from operating activities was -¥95,008,537.21, a decline of 18.01% compared to -¥80,511,555.93 in the previous year[8] - Cash flow from operating activities was CNY 207,704,336.33, slightly down from CNY 218,090,256.32 in the previous year[60] - The net cash flow from operating activities was -95,008,537.21 CNY, compared to -80,511,555.93 CNY in the previous period, indicating a decline in operational cash flow[61] - The total cash outflow for operating activities was 345,724,441.43 CNY, compared to 337,183,177.71 CNY in the previous period, indicating an increase in operational expenses[61] Assets and Liabilities - Total assets decreased by 3.09% to ¥3,645,245,949.20 from ¥3,761,452,844.79 at the end of the previous year[8] - The company's cash and cash equivalents decreased by 64.83% to ¥611,854,286.20 compared to the end of 2017[23] - Total liabilities decreased from CNY 895,580,629.95 to CNY 799,200,897.31, a reduction of about 10.7%[47] - Total equity attributable to shareholders decreased from CNY 2,865,854,850.91 to CNY 2,846,202,858.22, a decline of approximately 0.7%[48] Shareholder Information - Total number of common shareholders at the end of the reporting period is 29,382[16] - The largest shareholder, INVESTOR AB LIMITED, holds 18.24% of shares, totaling 146,742,476 shares[16] - The number of restricted shares at the end of the period is 264,557,014, down from 297,779,363 at the beginning of the period[20] - The company remains without a controlling shareholder or actual controller following recent share transfers[32] Operational Insights - The company faces seasonal sales characteristics, with over 50% of annual revenue typically generated in the fourth quarter[11] - The company is at risk of losing core personnel, which could impact its technological advantages and product development[12] - The company is subject to potential adverse changes in tax policies that could negatively affect its performance[11] - There were no significant changes in the top five suppliers and customers, indicating stable operational conditions[28][29] Investment Activities - The company reported an investment income of CNY 3,312,028.00 during the quarter[54] - The total amount of raised funds was ¥77,177.93 million, with ¥3,887.54 million invested in the current quarter[37] - The cumulative investment from raised funds reached ¥51,290.39 million, representing 66.4% of the total raised funds[37] - The company did not engage in any repurchase transactions among the top ten shareholders during the reporting period[17]

Financial Performance - The company's operating revenue for 2017 was ¥1,255,110,707.41, representing a 15.07% increase compared to ¥1,090,693,867.24 in 2016[21]. - The net profit attributable to shareholders decreased by 30.78% to ¥152,367,683.85 in 2017 from ¥220,124,125.56 in 2016[21]. - The net profit after deducting non-recurring gains and losses was ¥89,349,023.17, down 54.77% from ¥197,550,954.80 in the previous year[21]. - The net cash flow from operating activities was ¥75,891,136.51, a decrease of 18.94% compared to ¥93,622,173.45 in 2016[21]. - The total assets at the end of 2017 reached ¥3,761,452,844.79, an increase of 38.74% from ¥2,711,227,178.95 at the end of 2016[21]. - The net assets attributable to shareholders increased by 49.32% to ¥2,865,854,850.91 at the end of 2017 from ¥1,919,265,179.45 at the end of 2016[21]. - The basic earnings per share decreased by 33.33% to ¥0.20 in 2017 from ¥0.30 in 2016[21]. - The weighted average return on equity was 6.48%, down from 12.47% in 2016, reflecting a decline of 5.99%[21]. - The total profit was CNY 182.62 million, a year-on-year decrease of 29.41%[47]. - The net profit attributable to shareholders was CNY 152.37 million, a year-on-year decrease of 30.78%[47]. - The net profit after deducting non-recurring gains and losses was CNY 89.35 million, a year-on-year decrease of 54.77%[47]. Dividend Policy - The company plans to distribute a cash dividend of 0.60 RMB per 10 shares (including tax) to all shareholders, based on a total share capital of 803,137,302 shares[11]. - The cash dividend payout ratio for 2017 was 100%, consistent with the company's profit distribution policy[120]. - The company distributed a cash dividend of RMB 1.199959 per 10 shares in 2016, totaling RMB 47,786,637.67, which was 21.71% of the net profit[119]. - The company has maintained a consistent cash dividend policy over the past three years, with a focus on returning profits to shareholders[123]. Market Expansion and Strategy - The company has established wholly-owned subsidiaries in Hong Kong, the United States, Japan, Singapore, and the United Kingdom to expand its international market presence[11]. - The company acknowledges risks associated with overseas market expansion, including local operating environments and regulatory changes[11]. - The company aims to enhance its market share in the domestic information security sector while actively exploring international markets to become a globally influential cybersecurity enterprise[106]. - The global information security market presents significant growth opportunities, with the company expanding its presence in regions such as the US, Japan, Hong Kong, Singapore, and the UK[114]. - The company is transitioning from product-based offerings to solutions and services, aiming to increase the revenue share from industry-specific solutions and technology solutions[113]. Research and Development - The company has a strong focus on employee training and development as part of its talent strategy to drive growth[10]. - The company's R&D investment amounted to ¥289,875,551.21 in 2017, representing 23.10% of total revenue[76]. - The number of R&D personnel increased to 1,315 in 2017, up from 1,160 in 2016[76]. - The company has invested RMB 15,502.1 million in the acquisition of Yisaitong, achieving an investment progress of 100.06%[94]. - The company is focusing on research and development of new technologies, with a dedicated team led by the Chief Technology Officer, Zhao Liang[200]. Risk Factors - The company faces risks related to potential changes in tax incentive policies that could adversely affect its performance[8]. - The company has acknowledged risks associated with overseas market expansion, including local operating environments and regulatory changes[11]. - The company has a seasonal distribution of profits, with expenses occurring relatively evenly throughout the quarters, impacting profit visibility[7]. Corporate Governance - The company is committed to maintaining high standards of corporate governance, as evidenced by the recent board restructuring and the appointment of independent directors[197]. - The company has not reported any non-standard audit reports for the current period[135]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[134]. Employee Engagement and Welfare - The company emphasizes employee welfare, providing additional medical insurance and various benefits, including birthday celebrations and team-building activities[167]. - The company has established long-term partnerships with universities to support talent development in the information security industry[167]. - In 2017, the company recruited 175 fresh graduates from 24 universities, enhancing its talent pool[168]. Product Development and Innovation - The next-generation firewall (NF) achieved a throughput of 80G and received a high-performance wall sales license from the Ministry of Public Security[32]. - The company's intrusion detection system (IDS) successfully adapted to domestic hardware and operating systems, marking a significant step in product localization[32]. - The cloud security management system (NCSS) became the first product in China to obtain a sales license for cloud security management platforms[35]. - The company has launched multiple security solutions, including cloud security solutions and industry-specific solutions, achieving high customer satisfaction and recognition[48]. Financial Position and Investments - The company's cash and cash equivalents increased by 83.52% compared to the beginning of the year, primarily due to the proceeds from a non-public offering[36]. - The company completed a non-public stock issuance, raising net funds of CNY 771.78 million for project funding[47]. - The company has committed RMB 39,488.41 million to the Smart Security Protection System project, with a cumulative investment of RMB 19,246.22 million, representing 48.74% of the total[94]. Customer Base and Market Share - The company has a diverse and high-quality customer base, including government, telecommunications, finance, energy, and healthcare sectors[42]. - The company maintains a leading market share in key products, consistently ranked first in market share in China according to various industry reports[44].

Financial Performance - Operating revenue for the reporting period was ¥170,880,362.38, a decrease of 14.61% compared to the same period last year[7]. - Net profit attributable to shareholders of the listed company was -¥11,744,241.71, a decline of 200.68% year-on-year[7]. - Basic earnings per share were -¥0.0147, down 191.88% from the same period last year[7]. - Net profit for the first nine months was a loss of ¥58,646,895.84, a decrease of 519.03% compared to a profit of ¥13,995,777.45 in the previous year[20]. - The company's operating revenue for the current period was ¥258.71 million, a decrease of 10.83% compared to ¥290.27 million in the previous period[48]. - The net profit for the current period was a loss of ¥58.65 million, compared to a profit of ¥14.00 million in the previous period, indicating a significant decline[47]. - The total profit for the current period was a loss of ¥53.83 million, contrasting with a profit of ¥23.77 million in the previous period[47]. - The operating profit for the current period was a loss of ¥77.84 million, compared to a loss of ¥15.31 million in the previous period[47]. - The total comprehensive income for the current period was a loss of ¥55.77 million, compared to a profit of ¥13.06 million in the previous period[47]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥3,310,884,421.69, an increase of 22.12% compared to the previous year[7]. - Net assets attributable to shareholders of the listed company were ¥2,610,667,783.71, reflecting a growth of 36.02% year-on-year[7]. - Total assets increased to ¥3,310,884,421.69 from ¥2,711,227,178.95, reflecting a significant growth in total assets[31]. - Total liabilities decreased to CNY 305,691,520.27 from CNY 375,963,374.86, a reduction of 18.6%[36]. - Cash and cash equivalents decreased by 35.20% to ¥614,378,596.41 from ¥948,049,423.20 due to investment of idle funds[17]. - Cash and cash equivalents at the end of the period decreased to 146,074,458.26 CNY from 418,099,866.91 CNY, reflecting liquidity challenges[57]. Cash Flow - The net cash flow from operating activities was -¥90,629,592.51, showing a 5.20% improvement year-to-date[7]. - The cash flow from operating activities showed a net outflow of ¥90.63 million, slightly improved from a net outflow of ¥95.61 million in the previous period[53]. - The cash flow from investing activities resulted in a net outflow of ¥1.04 billion, compared to a smaller outflow of ¥87.46 million in the previous period[53]. - The company experienced a significant increase in sales expenses, which rose to CNY 54,216,400.58 from CNY 36,371,899.17, indicating higher marketing efforts[43]. - The company’s cash flow challenges are evident with a net decrease in cash and cash equivalents of -504,920,342.72 CNY during the reporting period[57]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 33,679[11]. - The largest shareholder, INVESTOR AB LIMITED, held 18.41% of the shares, amounting to 146,742,476 shares[11]. - The company did not engage in any repurchase transactions among the top ten shareholders during the reporting period[12]. Investment Activities - The company received cash from investment activities amounting to ¥958,000,000.00, attributed to investment management[22]. - The company raised ¥781,275,444.04 from non-public offerings, marking a 1,505.62% increase compared to ¥48,658,784.50 in the previous year[22]. - Total cash inflow from investment activities was 915,685,088.04 CNY, a substantial increase compared to 11,152.11 CNY in the previous period[56]. - Cash outflow from investment activities surged to 1,902,477,173.53 CNY, compared to 70,142,699.25 CNY in the prior period, resulting in a net cash flow from investment activities of -986,792,085.49 CNY[56]. Operational Costs - Total operating costs increased to CNY 213,659,590.80, up 5.3% from CNY 203,171,110.83 year-over-year[38]. - The total operating costs for the year-to-date period were CNY 649,278,184.30, an increase from CNY 541,220,302.95, indicating rising operational expenses[46]. - The company recorded operating expenses of ¥132.69 million for sales and ¥147.59 million for management, both higher than the previous period's figures[48]. Other Financial Metrics - The company reported non-recurring gains and losses totaling ¥27,803,557.02 for the year-to-date[8]. - The company reported a total comprehensive income of CNY -10,029,734.10 for the quarter, contrasting with CNY 9,310,204.43 in the previous year[41]. - Other comprehensive income after tax was CNY 1,878,253.91, a recovery from a loss of CNY -2,255,985.00 in the same quarter last year[41]. - The company did not conduct an audit for the third quarter report, which may affect the reliability of the financial data presented[58].

Financial Performance - Total revenue for the reporting period was CNY 361,898,551.72, an increase of 14.82% compared to CNY 315,182,106.13 in the same period last year[24]. - Net profit attributable to shareholders was a loss of CNY 46,396,728.93, a decrease of 1,736.96% compared to a profit of CNY 2,834,316.55 in the same period last year[24]. - The net cash flow from operating activities was a negative CNY 106,207,671.11, improving by 9.34% from a negative CNY 117,147,829.05 in the previous year[24]. - Total assets increased by 21.93% to CNY 3,305,856,761.90 from CNY 2,711,227,178.95 at the end of the previous year[24]. - Net assets attributable to shareholders rose by 36.51% to CNY 2,619,929,389.61 from CNY 1,919,265,179.45 at the end of the previous year[24]. - The company reported a significant increase in capital reserves from RMB 960,500,860.99 to RMB 1,327,576,425.52, which is an increase of about 38.3%[147]. - The company reported a total comprehensive income of 36,746,108.33 CNY for the current period[183]. Market Presence and Expansion - The company has established wholly-owned subsidiaries in Hong Kong, the USA, Japan, Singapore, Germany, and the UK to expand its international market presence[10]. - The company is actively monitoring and assessing risks associated with its overseas market expansion efforts[10]. - The company maintained a market share of 20.8% in the Greater China WAF market, leading for seven consecutive years from 2010 to 2016[32]. Tax and Financial Incentives - The company is eligible for a reduced corporate income tax rate of 10% under national tax incentives for key software enterprises[7]. - The company has highlighted the potential impact of changes in tax policies on its financial performance[7]. Research and Development - R&D investment rose to 139.63 million yuan, marking a 46.61% increase compared to the previous year, driven by more development projects and increased personnel costs[43]. - The company obtained 7 domestic invention patents and 11 software copyright certificates during the reporting period, enhancing its core competitiveness[36]. Risks and Challenges - The company faces risks related to potential declines in performance from its acquisition of Yisaitong, which has completed performance commitments for 2014, 2015, and 2016[11]. - The company acknowledges the risk of core personnel turnover affecting its technological advantages and product development[8]. - The company emphasizes the importance of internal control and operational management post-acquisition to mitigate integration risks[12]. Shareholder and Equity Information - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period[79]. - The company has a commitment to not transfer or delegate management of its shares for 36 months post-IPO, with a lock-up period of at least 24 months for major shareholders[83]. - The company plans to implement a share buyback program if the stock price falls below the audited net asset value per share for 20 consecutive trading days[85]. - The total number of shares held by the top ten shareholders is 446,000,000, with a significant increase of 146,961,676 shares during the reporting period[128]. Corporate Governance and Compliance - The company has not engaged in derivative investments or entrusted loans during the reporting period[69][70]. - The company has not encountered any breaches of commitments during the reporting period[81]. - The company did not experience any penalties or rectification issues during the reporting period[91]. - There were no major related party transactions reported during the period[100]. Financial Management and Investments - The company completed a private placement, raising a net amount of 771.78 million yuan to support strategic transformation projects[41]. - The company has temporarily used idle raised funds to purchase financial products amounting to ¥712,000,000[61]. - The total amount of raised funds was ¥926,705,400, with ¥28,285,200 invested during the reporting period and a cumulative investment of ¥177,685,200[57]. Operational Changes and Strategies - The company is transitioning from a traditional product model to a solution and security operation model (P2SO) to enhance business capabilities[41]. - The company has implemented stock option incentive plans since 2014, with adjustments made in 2017, including a reduction in the exercise price from 22.60 CNY to 11.24 CNY[93]. Financial Reporting and Audit - The financial report for the first half of 2017 was not audited[88]. - The semi-annual financial report for 2017 was not audited, which may impact the reliability of the financial data presented[142].