Financial Performance - Total revenue for Q1 2017 was ¥132,625,262.73, an increase of 14.56% compared to ¥115,768,494.76 in the same period last year[8] - Net profit attributable to shareholders was -¥54,021,711.79, a decrease of 61.86% from -¥33,376,491.29 year-on-year[8] - The company reported a basic earnings per share of -¥0.1451, down 57.73% from -¥0.0920 in the same period last year[8] - The company's operating profit for the first quarter was -6,227.22 million RMB, a decrease of 58.23% compared to the same period last year[26] - The net profit attributable to the parent company decreased by 61.86% year-on-year, amounting to -5,402.17 million RMB, primarily due to reduced operating profit[26] - The net loss for Q1 2017 was CNY 54,187,987.99, compared to a net loss of CNY 33,637,245.37 in Q1 2016, representing a decline of 60.9%[52] - The total comprehensive income attributable to the parent company was -¥54,037,821.27, compared to -¥33,503,682.45 in the previous period[56] Cash Flow - Net cash flow from operating activities was -¥80,511,555.93, representing a decline of 41.76% compared to -¥56,793,338.30 in the previous year[8] - Cash received from sales of goods and services increased by 31.22% year-on-year, totaling 21,809.03 million RMB[27] - Cash and cash equivalents increased to 1,679,614,400.28 yuan from 948,049,423.20 yuan, reflecting a significant growth[43] - The company received cash from financing activities totaling ¥848,214,694.50, a substantial increase from ¥55,529,102.01 in the previous period[59] - The net cash flow from operating activities was -114,458,000.62 CNY, indicating a negative cash flow situation[62] - The net increase in cash and cash equivalents for the quarter was 462,855,744.50 CNY[62] Assets and Liabilities - Total assets increased by 23.77% to ¥3,355,806,359.80 from ¥2,711,227,178.95 at the end of the previous year[8] - The total liabilities increased to CNY 1,489,708,697.40 from CNY 792,223,269.28, indicating a rise of 88.0%[49] - Other non-current liabilities amounted to 77,573.66 million RMB, resulting from funds received from a private placement[25] Shareholder Information - Total number of common shareholders at the end of the reporting period is 28,963[17] - The top 10 shareholders hold a total of 75,619,120 shares, representing 20.32% of the total shares[17] Expenses - Sales expenses increased by 30.39% year-on-year to 7,850.54 million RMB, attributed to higher marketing and promotional expenditures[26] - The company's total operating costs for Q1 2017 were CNY 194,897,470.21, up 25.7% from CNY 155,123,196.09 in Q1 2016[52] - The company reported a significant increase in sales expenses, which reached CNY 78,505,446.25, up 30.3% from CNY 60,207,839.17 in the previous year[52] - Research and development expenses increased to CNY 31,067,775.50, compared to CNY 17,754,797.08 in the same period last year, reflecting a growth of 74.8%[48] Strategic Initiatives - The company has established wholly-owned subsidiaries in multiple countries, including the US, Japan, and Germany, to expand its international market presence[14] - The company is focused on integrating the acquisition of Yisaitong, with potential risks related to performance and operational synergies[16] - The company has implemented stock option and restricted stock incentive plans to retain core technical personnel and maintain competitive advantage[13] Risks and Challenges - Risks include potential changes in tax incentives that could adversely affect performance, as the company benefits from a reduced corporate tax rate of 10%[12] - The company expects to continue incurring losses in the first half of 2017 due to seasonal sales and revenue recognition characteristics[37] - The company faces seasonal sales characteristics, with over 50% of annual revenue typically generated in the fourth quarter[11]

Financial Performance - The company's operating revenue for 2016 was approximately ¥1.09 billion, representing a 24.27% increase compared to ¥877.66 million in 2015[25]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥197.55 million, an increase of 19.56% from ¥165.23 million in 2015[25]. - The basic earnings per share for 2016 was ¥0.61, reflecting a 10.91% increase from ¥0.55 in 2015[25]. - The total assets at the end of 2016 amounted to approximately ¥2.71 billion, a 27.12% increase from ¥2.13 billion at the end of 2015[25]. - The net cash flow from operating activities was approximately ¥93.62 million, a decrease of 30.82% compared to ¥135.33 million in 2015[25]. - The weighted average return on net assets for 2016 was 12.47%, down from 13.44% in 2015[25]. - The total equity attributable to shareholders at the end of 2016 was approximately ¥1.92 billion, a 13.56% increase from ¥1.69 billion at the end of 2015[25]. - The company reported a total non-operating income of CNY 22,573,170.76 in 2016, a decrease of 22.5% compared to CNY 29,098,513.54 in 2015[30]. - The company received government subsidies amounting to CNY 10,900,669.40 in 2016, significantly lower than CNY 33,453,168.00 in 2015[30]. - The total revenue for 2016 reached ¥1,090,693,867.24, representing a 24.27% increase compared to ¥877,664,817.03 in 2015[65]. - The net profit attributable to shareholders was 220.12 million RMB, reflecting a year-on-year growth of 13.28%[54]. - The total profit reached 258.70 million RMB, growing by 20.24% compared to the previous year[54]. Market Presence and Expansion - The company has established wholly-owned subsidiaries in Hong Kong, the United States, Japan, Singapore, Germany, and the United Kingdom to expand its international market presence[11]. - The company is actively monitoring and assessing risks associated with its overseas market expansion to mitigate potential adverse impacts on its operations[11]. - The company plans to continue expanding its market presence and investing in new technologies and products[25]. - The company aims to enhance its market share in the domestic information security sector while actively expanding into international markets, positioning itself as a globally influential cybersecurity enterprise[103]. - The company is actively expanding its global security market presence, having established subsidiaries in regions such as the US, Japan, and Germany to enhance its growth potential[109]. Research and Development - The company acknowledges the risk of declining performance if Yisaitong fails to invest adequately in research and development or adapt to market demands[12]. - The total R&D investment amounted to ¥231,408,610.62, accounting for 21.22% of operating revenue, with a year-on-year growth of 5.53%[76]. - The company plans to continue investing in artificial intelligence and machine learning technologies to enhance its security products and services[61]. - The company has established an innovation center to focus on new product and technology development in response to industry changes[59]. - The company launched a threat intelligence platform in 2016, enhancing its security defense system and operational capabilities[59]. Shareholder Returns and Dividends - The company plans to distribute a cash dividend of 1.20 RMB per 10 shares (including tax) to all shareholders, based on a total share capital of 398,222,087 shares[13]. - The company distributed a cash dividend of 1.100047 CNY per 10 shares, totaling 40,049,631.68 CNY, which represents 20.61% of the net profit attributable to shareholders for 2015[116]. - For 2016, the proposed cash dividend is 1.20 CNY per 10 shares, amounting to 47,786,650.44 CNY, which is 21.71% of the net profit attributable to shareholders of 220,124,125.56 CNY[120]. - The company has maintained a cash dividend payout ratio of 100% for the reported periods, ensuring full distribution of available profits[117]. - The company has consistently increased its cash dividends over the past three years, with amounts of 30,070,715.22 CNY in 2014, 40,049,631.68 CNY in 2015, and 47,786,650.44 CNY in 2016[118]. Risks and Challenges - The company faces risks related to potential changes in tax incentives, which could adversely affect its financial performance if the favorable corporate income tax rate of 10% is altered[8]. - The company emphasizes the importance of retaining core technical personnel to maintain its technological advantage and has implemented stock option and restricted stock incentive plans to stabilize its workforce[9]. - The company reported a significant increase in inventory levels, which rose by 147.56% to ¥6,525,226.96 in 2016 from ¥2,635,848.45 in 2015, attributed to increased stocking for sales[68]. - The company's total liabilities increased significantly, with short-term loans rising to ¥171,905,750.00, up from ¥65,187,200.00, reflecting a 3.28% increase in the proportion of total assets[83]. Corporate Governance and Management - The company has established a performance evaluation system to align the contributions of management and core technical personnel with their compensation, ensuring market competitiveness[10]. - The company has been evaluated as a "CNCERTCC Network Security Emergency Service Support Unit" by the National Computer Network Emergency Technology Processing Coordination Center[38]. - The company has committed to not engaging in direct or indirect interference in daily operations by its investors[127]. - The company has a strategy to manage share transfers primarily through block trades and concentrated bidding in the secondary market after the lock-up period[127]. - The company has ensured compliance with share transfer commitments, with no violations reported[123]. Product and Service Development - The company launched 14 products and services under the "Green Alliance Cloud" by the end of 2016, including three new SaaS solutions[35]. - The company holds 120 invention patents as of December 31, 2016, with 103 patents in China and 6 in the United States[42]. - The company's remote security assessment system maintained a market share of 25.1%, ranking first for five consecutive years in the vulnerability management market[37]. - The company maintains a leading market share in the cybersecurity industry, particularly in government and financial sectors[51]. - The security products segment generated ¥766,525,085.57, making up 70.28% of total revenue, with a year-on-year growth of 19.99%[65]. Investment Activities - The company invested 8.50 million RMB in Apollo Cloud, acquiring a 15.89% stake, enhancing its position in the SDN and big data technology sector[54]. - An investment of 6.00 million RMB was made in Yide Network Technology, obtaining a 15% stake, focusing on big data analysis services[54]. - The company made significant equity investments totaling 35,455,072.88 CNY during the reporting period[87]. - The company completed the construction of a data center with 20 cabinets, 200 servers, and 500M bandwidth, supporting 12,800 virtual CPUs and 20TB memory[56]. Ownership Structure - The company does not have a controlling shareholder, with no single shareholder holding more than 30% of the total shares[193]. - The company reported a diversified ownership structure, with no actual controller identified[194]. - Major shareholders include Investor AB Limited (20.31%), Lenovo Investment (12.72%), Shen Jiya (12.15%), and Lei Yan Investment (8.71%) as of the end of 2016[193]. - The company’s foreign ownership accounted for 20.31% of total shares, with INVESTOR AB holding 75,619,120 shares[191].

Financial Performance - Total operating revenue for the reporting period was CNY 200,119,871.89, representing a year-on-year increase of 37.46%[8] - Net profit attributable to shareholders was CNY 11,664,673.54, a significant increase of 1,480.96% compared to the same period last year[8] - Basic earnings per share for the reporting period was CNY 0.0320, reflecting an increase of 1,432.94% year-on-year[8] - Total revenue for the first nine months reached ¥515,301,978.02, a 40.79% increase compared to ¥366,001,972.38 in the same period last year, driven by enhanced market expansion efforts[27] - Total operating revenue for Q3 2016 was CNY 200,119,871.89, an increase of 37.5% compared to CNY 145,583,619.12 in the same period last year[56] - Net profit for Q3 2016 reached CNY 11,566,189.43, compared to a net loss of CNY 1,292,736.60 in Q3 2015[57] - The company reported a significant increase in sales expenses, which rose to CNY 82,841,401.29 from CNY 57,197,407.71 year-over-year[57] - The company reported a significant increase in asset impairment losses, amounting to ¥12,035,179.03, a 179.91% rise compared to the previous year[27] Cash Flow and Liquidity - The company reported a net cash flow from operating activities of CNY -95,605,806.45, a decrease of 122.99% compared to the previous year[8] - Cash received from operating activities decreased by 69.96% to ¥51,095,604.73, primarily due to the previous year's tax payments made by the original shareholders[30] - Cash paid for purchasing goods and services increased by 41.49% to ¥159,101,803.78, indicating higher procurement expenditures[30] - Cash received from financing activities decreased by 73.83% to ¥48,658,784.50, due to reduced funds raised from share issuance[30] - Cash obtained from borrowings surged by 247.76% to ¥130,203,325.00, driven by increased borrowings from overseas subsidiaries[30] - The cash flow from operating activities for Q3 2016 was negative at CNY -95,605,806.45, worsening from CNY -42,874,054.89 in the same period last year[71] - The company reported a cash inflow from operating activities of CNY 718,497,052.09, an increase from CNY 692,848,161.05 in the previous year[69] - The total cash and cash equivalents at the end of the period amounted to CNY 418,099,866.91, up from CNY 355,672,283.07 in the previous period, reflecting a net increase of CNY 14,634,032.20[75] Assets and Liabilities - Total assets at the end of the reporting period reached CNY 2,185,711,759.04, an increase of 2.48% compared to the end of the previous year[8] - The company's accounts receivable decreased by 67.12% to 17,322,391.92 yuan due to the maturity of notes receivable[25] - Inventory increased by 437.24% to 81,780,057.68 yuan, attributed to increased stock purchases[25] - The company's short-term borrowings rose by 172.37% to 177,547,650.00 yuan, resulting from bank loans obtained by a subsidiary[25] - Other payables surged by 378.84% to 109,643,256.99 yuan, due to provisions for the redemption of restricted stock[25] - The company's total liabilities increased to CNY 489,011,264.51 from CNY 442,892,118.44, with current liabilities rising from CNY 395,175,318.44 to CNY 440,405,110.68[50] - The equity attributable to shareholders of the parent company rose to CNY 1,697,328,713.40 from CNY 1,690,104,745.21, indicating a stable equity position[51] Shareholder Information - The total number of common shareholders at the end of the reporting period is 22,169[17] - The largest shareholder, INVESTOR AB LIMITED, holds 20.72% of shares, totaling 75,619,120 shares[17] - Lenovo Investment Co., Ltd. is the second-largest shareholder with a 12.97% stake, amounting to 47,360,252 shares[17] - The total number of restricted shares at the end of the period is 235,046,567 shares, with various conditions for release[21] - The company has not conducted any repurchase transactions among the top ten shareholders during the reporting period[18] Strategic Initiatives and Risks - The company has established subsidiaries in Hong Kong, the USA, Japan, Singapore, Germany, and the UK to expand its international market presence[13] - The company completed a major asset restructuring with Yisaitong, which has become a wholly-owned subsidiary[14] - The company faces risks related to seasonal fluctuations in operating performance, with over 50% of annual sales typically occurring in the fourth quarter[11] - The company is exposed to risks from potential changes in tax incentives for the software industry, which could adversely affect its performance[11] - The company has implemented a stock incentive plan to retain core employees and mitigate the risk of talent loss[12] Future Plans and Commitments - The company has a target to recover 85% of accounts receivable by the end of 2016, which will impact the unlocking of shares[37] - The company plans to unlock shares based on the recovery of accounts receivable, with specific percentages tied to performance metrics[37] - The company has committed to not transferring or managing its shares for 36 months post-IPO, ensuring stability in shareholding[37] - The company aims to maintain long-term stability and development, avoiding transfer of shares to competitors[37] - The company’s performance in the upcoming quarters will be closely monitored to ensure compliance with financial commitments[37]

Financial Performance - Total revenue for the first half of 2016 was CNY 315,182,106.13, representing a 42.99% increase compared to CNY 220,418,353.26 in the same period last year[16]. - Net profit attributable to ordinary shareholders was CNY 2,834,316.55, a significant turnaround from a loss of CNY 12,794,632.21 in the previous year, marking a 122.15% improvement[16]. - Basic earnings per share increased to CNY 0.0078 from a loss of CNY 0.04, reflecting a 119.50% improvement[16]. - The company achieved a main business revenue of ¥314,662,509.38, representing a year-on-year growth of 42.86%[32]. - The net profit attributable to shareholders was ¥2,834,316.55, a significant increase of 122.15% compared to the previous year, marking a turnaround from losses[32]. - The operating income for the reporting period was ¥315,182,106.13, up 42.99% from ¥220,418,353.26 in the same period last year, driven by enhanced market expansion efforts[34]. - The company reported a total profit of ¥13,385,236.56, reversing from a loss of ¥9,217,269.74 in the same period last year[132]. - The company’s total comprehensive income for the first half of 2016 was ¥3,745,697.67, compared to a loss of ¥13,224,385.25 in the previous year[133]. Cash Flow and Liquidity - The net cash flow from operating activities was negative CNY 117,147,829.05, worsening by 119.05% compared to negative CNY 53,479,752.36 in the same period last year[16]. - Cash flow from operating activities showed a net outflow of ¥117,147,829.05, worsening from a net outflow of ¥53,479,752.36 in the previous year[139]. - Cash inflow from operating activities totaled ¥425,002,735.98, down from ¥488,492,547.51 in the same period last year[139]. - The company’s cash and cash equivalents decreased from CNY 729,893,016.97 at the beginning of the period to CNY 619,568,811.76 at the end of the period, representing a decline of approximately 15.1%[124]. - The company’s cash and cash equivalents decreased by ¥185,117,852.49 during the current period, compared to a decrease of ¥114,754,804.86 in the previous period[140]. - The total cash and cash equivalents at the end of the period is ¥412,218,813.48, up from ¥303,764,233.50 in the previous period, reflecting a net increase of ¥108,454,579.98[143]. Operating Expenses - The operating costs increased to ¥68,602,656.44, reflecting a 41.97% rise in line with revenue growth[34]. - Sales expenses rose to ¥129,456,518.19, a 36.57% increase due to higher marketing investments[34]. - The company reported a significant increase in income tax expenses, totaling ¥10,955,648.54, which is a 186.34% rise due to higher profit levels[34]. - The company’s sales expenses increased to ¥129,456,518.19, up from ¥94,792,069.86, indicating a rise of 37%[132]. - The company’s management expenses decreased to ¥129,299,233.02 from ¥140,429,829.92, a reduction of approximately 8%[132]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,120,034,503.67, a slight decrease of 0.60% from CNY 2,132,871,857.42 at the end of the previous year[16]. - The total liabilities decreased to CNY 417,171,643.55 from CNY 442,892,118.44, a decline of about 5.8%[126]. - The company’s total assets increased to 1,689,979,738.98 CNY, demonstrating a growth in overall financial position[156]. - The total amount of capital reserves converted to capital during the period was 214,790,823.00 CNY, indicating a strategic move to strengthen equity[153]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[6]. - The company approved a cash dividend of 1.10 RMB per 10 shares for the 2015 fiscal year, with adjustments made due to stock options and share repurchases[63]. - The total number of shareholders at the end of the reporting period was 20,526[112]. - Investor AB Limited holds 20.77% of shares, totaling 75,619,120 shares, with no changes during the reporting period[112]. - The company’s major shareholders committed to not reduce their current holdings for a specified period[97]. Research and Development - Research and development investment decreased slightly to ¥95,241,002.98, down 4.73% from the previous year[34]. - The company obtained 12 domestic invention patents and 6 software copyright certificates during the reporting period, enhancing its technological capabilities[43]. - The company operates multiple research and development centers across various cities, including Beijing, Xi'an, Chengdu, and Wuhan[162]. Strategic Initiatives - The company has established subsidiaries in multiple countries, including the US, UK, and Germany, to expand its international market presence[27]. - The company completed a major asset restructuring with Yisaitong, which is now a wholly-owned subsidiary, enhancing its market position in the information security sector[27]. - The company has established strategic partnerships with major cloud service providers, including Tencent and Alibaba, to enhance its cloud security services[49]. - The company is currently in the process of non-public stock issuance to secure funding for its operational transformation and cloud security capabilities[50]. Compliance and Governance - The company has implemented a stock option incentive plan in 2014 to enhance its governance structure and motivate employees[71]. - There were no major litigation or arbitration matters during the reporting period, indicating a stable legal environment[67]. - The company adheres to the accounting standards set by the Ministry of Finance and the China Securities Regulatory Commission, ensuring accurate financial reporting[168]. Future Outlook - The company expects to maintain stable software VAT refund policies, which are anticipated to contribute positively to future earnings[19]. - Future outlook includes plans for market expansion and potential mergers and acquisitions to enhance competitive positioning[155].

Financial Performance - The company reported that over 50% of its annual revenue is generated in the fourth quarter, with net profit in that quarter accounting for over 80% of the total annual profit[9]. - The company's operating revenue for 2015 was approximately RMB 877.66 million, representing a 24.90% increase compared to RMB 702.67 million in 2014[26]. - The net profit attributable to shareholders for 2015 was approximately RMB 194.32 million, a 34.48% increase from RMB 144.50 million in 2014[26]. - The net cash flow from operating activities for 2015 was approximately RMB 135.33 million, up 36.63% from RMB 99.05 million in 2014[26]. - The total assets at the end of 2015 reached approximately RMB 2.13 billion, a 74.37% increase from RMB 1.22 billion at the end of 2014[26]. - The net assets attributable to shareholders at the end of 2015 were approximately RMB 1.69 billion, a 74.18% increase from RMB 970.31 million at the end of 2014[26]. - The basic earnings per share for 2015 was RMB 0.55, an increase of 27.91% compared to RMB 0.43 in 2014[26]. - The company reported a total of RMB 29.10 million in non-recurring gains and losses for 2015, compared to RMB 9.54 million in 2014[31]. - The company achieved a net profit of RMB 41.6 million for the year 2015, fulfilling its performance commitment[88]. - The company achieved a net profit of 194,323,894.17 CNY for the year 2015, which is an increase from 144,503,492.29 CNY in 2014[123]. Tax and Regulatory Issues - The company faced a tax rate increase from 10% to 15% in 2015 due to the lack of re-evaluation as a key software enterprise, which may adversely affect future operating performance[10]. - The company has no significant discrepancies between financial reports prepared under international accounting standards and those prepared under Chinese accounting standards for the reporting period[29]. - The company has not faced any penalties or rectification issues during the reporting period[143]. Acquisitions and Investments - The company completed a significant asset restructuring in 2015, acquiring Yisaitong as a wholly-owned subsidiary, but faces risks related to performance shortfalls and potential goodwill impairment[13][14]. - The company acquired 100% equity of Yisaitong, enhancing its position in the DLP data leakage protection and network content security management sectors[52]. - The company completed acquisitions of 100% of Yisaitong and 55% of Minxun Technology, expanding its consolidated financial statements[66]. - The company invested in several firms, including a 19.91% stake in Kingsoft Security, to strengthen its market influence in the small and medium enterprise sector[52]. - The company has made significant investments in new generation security products, with total commitments reaching RMB 29,258.12 million[90]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of 1.10 yuan per 10 shares, based on a total share capital of 364,087,785 shares[15]. - The cash dividend distribution policy requires at least 30% of the distributable profit to be distributed in cash if there are no major investment plans or cash expenditures, and at least 20% if there are such plans[117]. - The company plans to distribute cash dividends of 1.10 CNY per 10 shares, totaling 40,049,656.35 CNY for the year 2015, which represents 20.61% of the net profit attributable to shareholders[119]. - The company’s profit distribution plan must be approved by the board and the shareholders' meeting, requiring a two-thirds majority vote[117]. Research and Development - The company continues to focus on innovation and has increased R&D investment to meet evolving customer security needs[49]. - R&D investment totaled ¥219,289,326.60, representing 24.99% of total revenue, with a year-on-year growth of 36.19%[72]. - The company is investing 200 million RMB in research and development for new technologies aimed at enhancing cybersecurity solutions[200]. Market Position and Strategy - The company maintained its position as the market leader in vulnerability management software, with its Remote Security Assessment System (RSAS) holding the largest market share in China for five consecutive years[40]. - The company launched cloud-based security products and services in 2015, including self-service internal network vulnerability scanning and comprehensive security monitoring services[43]. - The company aims to enhance its market share and brand image in the domestic information security industry while actively expanding into international markets[102]. - The company plans to enhance its brand promotion efforts, allocating 50 million RMB for marketing initiatives in the next fiscal year[200]. Corporate Governance and Management - The company has established a sound incentive mechanism and constraint mechanism to improve its corporate governance structure[145]. - The company has appointed Ruihua Certified Public Accountants as its auditing firm for the 2015 fiscal year[140]. - The current board includes experienced professionals from various sectors, enhancing the company's strategic direction and governance[195]. - The company has seen multiple executive departures, including the resignation of Vice Presidents and the Chief Operating Officer, indicating potential shifts in management strategy[194]. Financial Health and Cash Flow - The company reported a VAT refund of ¥60,943,691.35, which is classified as a recurring gain due to stable expected policies[32]. - Cash and cash equivalents decreased by 70.99% to CNY 110,062,987.65, primarily due to acquisitions and investment payments[75]. - The company has a remaining balance of RMB 552.61 million in its fundraising account as of December 31, 2015[88]. - The company has not engaged in any related party transactions during the reporting period[148]. Future Outlook - The company expects the domestic information security market to reach 4.822 billion USD by 2019, with a compound annual growth rate of 16.6% from 2014 to 2019[100]. - The company has set a revenue guidance of 1.8 billion RMB for the next fiscal year, indicating an expected growth of 20%[200]. - New product launches are expected to contribute an additional 300 million RMB in revenue in the upcoming year[200].

Financial Performance - Total revenue for Q1 2016 was CNY 115,768,494.76, representing a 79.00% increase compared to CNY 64,676,724.55 in the same period last year[8] - Net profit attributable to shareholders was a loss of CNY 33,376,491.29, an improvement of 25.49% from a loss of CNY 44,791,964.56 year-over-year[8] - The company's operating revenue for Q1 2016 was CNY 11,576.85 million, representing a 79.00% increase compared to CNY 6,467.67 million in Q1 2015[24] - The company's main business revenue increased by 79% compared to the same period last year[26] - The net profit attributable to shareholders grew by 25.49% year-on-year[26] - The company reported a net profit margin of 15% for Q1 2016, an improvement from 12% in the previous year[36] - The net loss for Q1 2016 was CNY 33,637,245.37, an improvement from a net loss of CNY 44,895,166.15 in the previous period[56] Cash Flow and Liquidity - The net cash flow from operating activities was a negative CNY 56,793,338.30, which is an 11.57% improvement compared to a negative CNY 64,222,864.51 in the previous year[8] - Cash received from sales of goods and services increased by 33.95% to CNY 16,620.43 million from CNY 12,408.13 million[24] - Cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets was 1,716.15 million, up 59.54% due to increased capitalized development expenditures[25] - Cash received from investment decreased by 48.46% to 647.74 million, attributed to a reduction in external investment payments[25] - Cash received from financing activities decreased by 83.09% to 2,638.08 million, due to a decrease in share issuance compared to the previous year[25] - Cash obtained from loans was 2,914.83 million, reflecting an increase in bank borrowings during the period[25] - The ending cash and cash equivalents balance is ¥675,070,622.82, down from ¥693,990,641.65 in the previous period[65] - The company reported a cash increase of 100,011,160.18 CNY during the quarter[68] Assets and Liabilities - The total assets at the end of the reporting period were CNY 2,060,602,669.63, down 3.39% from CNY 2,132,871,857.42 at the end of the previous year[8] - The total assets of the company as of March 31, 2016, were approximately ¥2.06 billion, down from ¥2.13 billion at the beginning of the period, representing a decrease of about 3.3%[48] - The company's total liabilities decreased to approximately ¥403 million from ¥442 million, reflecting a reduction of about 9%[49] - The company's total liabilities decreased to CNY 174,328,029.75 from CNY 191,298,183.84[53] - The total equity attributable to shareholders of the parent company was CNY 1,637,716,836.61, down from CNY 1,659,162,788.78[53] Operational Insights - The company experienced seasonal sales characteristics, with over 50% of annual revenue typically recognized in the fourth quarter[11] - The company faced significant risk factors and operational difficulties, with measures proposed to address these issues[27] - The company expects a revenue growth of 25% for the next quarter, driven by new product launches and market expansion strategies[36] - The company plans to expand its market presence in Southeast Asia, targeting a 30% market share within the next two years[36] - A strategic acquisition of a local cybersecurity firm is anticipated to enhance the company's service offerings and customer base[34] Shareholder and Stock Information - The company has implemented stock option and restricted stock incentive plans to retain core technical personnel and management[15] - The total number of restricted shares at the end of the period was 238,195,487 shares, down from 255,932,242 shares at the beginning of the period[22] - The company is committed to maintaining a stable stock price post-IPO, with measures including share buybacks if necessary[34] - The company plans to repurchase shares not exceeding 2% of the total share capital, with conditions for termination based on the weighted average price exceeding the audited net asset value per share from the previous fiscal year[37] - The company’s major shareholders have pledged to increase their holdings proportionally, with a limit of 2% of the total share capital for each single increase[37] Development and R&D - Research and development expenses increased by 10% to 150 million RMB, focusing on cybersecurity technologies[34] - The development expenditures increased by 96.49% to CNY 2,973.55 million from CNY 1,513.32 million, attributed to increased capitalization of development costs[24] Regulatory and Compliance - The company has submitted a non-public offering application to the China Securities Regulatory Commission, with feedback received and addressed[38] - The company has committed to not reducing its holdings in shares for the next six months, ensuring stability in shareholder structure[39] - The company did not undergo an audit for the first quarter report[70]

Financial Performance - The company's operating revenue for 2015 was approximately RMB 877.66 million, representing a 24.90% increase compared to RMB 702.67 million in 2014[26]. - The net profit attributable to shareholders for 2015 was approximately RMB 194.32 million, a 34.48% increase from RMB 144.50 million in 2014[26]. - The net cash flow from operating activities for 2015 was approximately RMB 135.33 million, up 36.63% from RMB 99.05 million in 2014[26]. - The total assets at the end of 2015 were approximately RMB 2.13 billion, a 74.37% increase from RMB 1.22 billion at the end of 2014[26]. - The net assets attributable to shareholders at the end of 2015 were approximately RMB 1.69 billion, a 74.18% increase from RMB 970.31 million at the end of 2014[26]. - The basic earnings per share for 2015 was RMB 0.55, an increase of 27.91% compared to RMB 0.43 in 2014[26]. - The company reported a total of RMB 29.10 million in non-recurring gains and losses for 2015, compared to RMB 9.54 million in 2014[31]. - The company experienced a significant increase in quarterly revenue, with Q4 2015 revenue reaching approximately RMB 511.66 million[28]. - The company's weighted average return on equity for 2015 was 13.44%, down from 16.78% in 2014[26]. - The company achieved a net profit of RMB 41.6 million for the year 2015, fulfilling its performance commitment[88]. Market Position and Strategy - The company maintained its position as the market leader in vulnerability management software, with the Remote Security Assessment System (RSAS) holding the largest market share in China for five consecutive years[40]. - The company launched cloud-based security products and services in 2015, including self-service internal network vulnerability scanning and comprehensive security monitoring services[43]. - The company established a new security defense system based on software-defined architecture, enhancing operational efficiency and emergency response capabilities[43]. - The company was elected as the first chairman unit of the China Cybersecurity Industry Alliance established at the end of 2015[41]. - The company has accumulated over 32,128 vulnerabilities in its Chinese vulnerability database, becoming a widely referenced standard in the industry[41]. - The company received the first batch of "Information Security Level Protection Service Agency Capability Qualification Certificates" from the Ministry of Public Security in 2015[41]. - The company aims to enhance its market share and brand image in the domestic information security industry while actively expanding into international markets[102]. - The company plans to increase marketing investments to improve brand influence and coverage, focusing on establishing itself as a leader in the information security sector[102]. - The company is focusing on the development of cloud computing and big data security products and services, which present significant market opportunities[99]. Investments and Acquisitions - The company completed a major asset restructuring in 2015, acquiring Yisaitong as a wholly-owned subsidiary, but faces risks related to performance shortfalls and potential goodwill impairment[13][14]. - The company acquired 100% equity of Yisaitong, enhancing its position in DLP data leakage protection and network content security management[52]. - The company holds an 11.63% stake in Likong Huakang, strengthening its competitiveness in industrial control network security[52]. - The company has established subsidiaries in Hong Kong, the USA, Japan, Singapore, the UK, and Germany to explore international markets[55]. - The company made significant equity investments totaling ¥569,650,000, including a major acquisition of Yisaitong for ¥498,000,000[84]. - The company is exploring potential acquisitions to enhance its technology portfolio, with a budget of $100 million allocated for this purpose[200]. Research and Development - R&D investment totaled ¥219,289,326.60, representing 24.99% of total revenue, with a year-on-year growth of 36.19%[72]. - Research and development expenses increased by 30%, totaling $75 million, to support innovation in cybersecurity solutions[200]. Shareholder and Dividend Policies - The company plans to distribute cash dividends of RMB 1.10 per 10 shares, totaling RMB 40,049,656.35 for the year 2015, which represents 20.61% of the net profit attributable to shareholders[119]. - The cash dividend distribution policy requires at least 30% of the distributable profit to be distributed in cash if there are no major investment plans or cash expenditures, and at least 20% if there are such plans[117]. - The company emphasizes the protection of shareholder rights in any changes to the profit distribution policy, which must be transparent and compliant with regulations[119]. - The company’s profit distribution plan must be approved by the board and shareholders, requiring a two-thirds majority vote[117]. Compliance and Governance - The company has appointed Ruihua Certified Public Accountants as its auditing firm for the 2015 fiscal year[140]. - The company has not faced any penalties or rectification issues during the reporting period[143]. - The company has established a comprehensive after-sales service system, providing 7×24 support and various customer care services[166]. - The company’s board includes experienced professionals with backgrounds in technology, finance, and law, enhancing its governance structure[196]. - The company’s independent directors bring diverse expertise, including accounting and legal backgrounds, which may strengthen oversight and compliance[197]. Future Outlook - The company provided guidance for the next fiscal year, projecting revenue growth of 25% to $625 million[200]. - New product launches are expected to contribute an additional $50 million in revenue next year[200]. - The company aims to improve operational efficiency, targeting a 5% reduction in costs by the end of the next fiscal year[200].

Financial Performance - Total revenue for the reporting period was ¥145,583,619.12, representing a year-on-year growth of 12.37%[8] - Net profit attributable to shareholders was -¥844,677.85, a decline of 110.84% compared to the same period last year[8] - Basic earnings per share were -¥0.0024, down 104.17% from the previous year[8] - The company reported a substantial increase in operating income from government fund projects, rising by 43.95% to 45,413,390.02 yuan compared to 31,547,041.97 yuan last year[31] - The net profit for Q3 2015 was a loss of CNY 1,292,736.60, compared to a profit of CNY 7,792,082.76 in the previous year, indicating a significant decline[69] - Operating profit for the current period was -¥55,587,803.47, compared to -¥35,175,412.14 in the previous period, indicating a worsening performance[77] - Net profit for the current period was -¥14,336,152.36, a significant increase in loss compared to -¥5,529,714.89 in the previous period[77] Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,708,593,133.38, an increase of 39.69% compared to the previous year[8] - The company's accounts receivable decreased by 56.61% to ¥19,562,210.47 due to the maturity of notes receivable[28] - Inventory increased by 153.86% to ¥57,300,612.64, attributed to the data from the acquired subsidiary Yisaitong[28] - The company's fixed assets rose by 154.54% to ¥89,147,074.53, also due to the acquisition of Yisaitong[28] - The company's total liabilities decreased by 34.85% in accounts payable to ¥49,876,402.22, due to increased payments to suppliers[28] - The company's total liabilities increased by 83.33% to 13,133,276.74 yuan, primarily due to the financial data from the newly consolidated subsidiary Yisaitong[34] Cash Flow - The company's cash flow from operating activities showed a net outflow of -¥42,874,054.89, a decrease of 5.25% year-to-date[8] - Cash received from tax refunds increased by 70.48% to 48,272,454.17 yuan, up from 28,316,125.20 yuan, attributed to increased VAT refunds[33] - Cash received from other operating activities decreased by 64.87% to 170,068,050.15 yuan, down from 484,151,883.70 yuan, due to last year's one-time equity transfer from old shareholders[33] - The net cash received from the acquisition of subsidiaries increased significantly, reflecting the consolidation of the newly acquired subsidiary Yisaitong[33] - The total cash inflow from operating activities decreased to 448,505,092.54 RMB from 790,382,964.42 RMB year-over-year[87] Shareholder Information - The total number of shareholders at the end of the reporting period was 21,931, with the top ten shareholders holding significant stakes[18] - The company has a lock-up period of 36 months for shares held by certain investors, during which they cannot transfer or manage these shares[42] - The company plans to reduce its holdings of shares by no more than 50% in the first 12 months after the lock-up period ends[42] - Major shareholder Lei Yan Investment Co., Ltd. committed to increasing its stake in the company by no less than 40.5 million yuan over the next 12 months, although this commitment has not yet been executed[56] Investment and Growth Plans - The company plans to continue expanding its market presence and enhancing its technological capabilities, aligning with national policies supporting the information security industry[35] - The company has committed to not reducing its current shareholdings in the next six months[46] - The company plans to increase its holdings by no less than CNY 4,050 million within the next 12 months[46] - The company has successfully reduced R&D costs by leveraging existing industry experience, resulting in savings from the fundraising[52] Management and Operational Changes - The management team of Yisaitong has been stabilized to enhance operational efficiency following a major asset restructuring[16] - After becoming a wholly-owned subsidiary, Yisaitong faced management instability and performance risks, prompting the company to reorganize its board and management team to enhance operational management and monitoring[54] - The company's management team is responsible for daily operations, with shareholders exercising rights through the board of directors[42] Fundraising and Financial Commitments - The total amount of raised funds is CNY 50,905.38 million, with CNY 2,116.88 million invested in the current quarter[48] - The company reported a cash balance of 522.61 million remaining from the fundraising, which is held in a dedicated account[52] - The company achieved a utilization rate of 96.43% for the raised funds, with 14,940 million already invested[52] - The company has a profit commitment for Yisaitong, with net profits expected to be no less than 32 million in 2014, 41.6 million in 2015, and 54.08 million in 2016[53]

Financial Performance - Total operating revenue for the first half of 2015 was CNY 220,418,353.26, representing a 10.05% increase compared to CNY 200,287,168.37 in the same period last year[17]. - Net profit attributable to shareholders was CNY -12,794,632.21, a decline of 3.96% from CNY -8,612,141.63 in the previous year[17]. - The net cash flow from operating activities was CNY -53,479,752.36, which is a 25.26% decrease compared to CNY -42,693,915.38 in the same period last year[17]. - The company reported a significant decline in net profit for the first half of 2015, with a loss of CNY 18,878,397.01 compared to a loss of CNY 472,321.79 in the same period of 2014, indicating a year-on-year decrease of CNY 18,406,075.22[29]. - The total profit for the first half of 2015 was -CNY 17,411,109.88, a substantial drop from -CNY 663,295.12 in the previous year, reflecting a year-on-year decrease of CNY 16,747,814.76[29]. - The company achieved operating revenue of CNY 220,418,353.26, a year-on-year increase of 10.05%, driven by the growth of existing businesses and the inclusion of subsidiary Yisaitong's revenue[32]. - The company reported a total comprehensive income of CNY -21,393,263.11 for the current period[169]. Assets and Equity - Total assets increased by 35.41% to CNY 1,656,293,691.58 from CNY 1,223,156,901.99 at the end of the previous year[17]. - Shareholders' equity attributable to the parent company rose by 48.32% to CNY 1,439,198,570.77 from CNY 970,308,156.60 at the end of the previous year[17]. - The total equity of the company rose to CNY 1,460,400,395.87 from CNY 999,927,643.11, indicating an increase of approximately 46.1%[141]. - The total equity attributable to minority shareholders was CNY 447,120.11 at the end of the current period[161]. Cash Flow - The net cash flow from operating activities was -CNY 53,479,752.36, a decline from -42,693,915.38 CNY year-over-year[151]. - Cash inflows from operating activities totaled 488,492,547.51 CNY, down from 813,170,604.72 CNY in the previous period, indicating a decrease of approximately 40%[150]. - Cash outflows from operating activities were 541,972,299.87 CNY, compared to 855,864,520.10 CNY in the prior period, reflecting a reduction of about 37%[151]. - The net cash flow from investing activities was -200,763,217.95 CNY, significantly higher than -25,090,123.43 CNY in the previous period[152]. - Cash inflows from financing activities were 183,731,855.87 CNY, down from 366,252,543.18 CNY year-over-year, representing a decline of approximately 50%[152]. Investments and Acquisitions - The company completed acquisitions of Yisaitong and Minxun Technology, and acquired a 19.91% stake in Kingsoft Security, aiming to integrate product lines and enhance market presence in small and micro enterprises[50]. - The company strategically invested in Hangzhou Bangsheng, which specializes in online and offline anti-fraud, anti-money laundering, identity verification, and big data real-time credit reporting services, aiming to fill market gaps in payment transaction information and business security[51]. - The company completed the acquisition of 100% equity in Yisaitong as of March 10, 2015[68]. - The company used 9.9 million CNY of raised funds to acquire 55% equity in Beijing Minxun Technology Co., Ltd., which was included in the consolidated financial statements on March 1, 2015[80]. Shareholder Information - The company approved a cash dividend of 2.10 CNY per 10 shares, totaling 30,070,715.22 CNY, and a capital reserve conversion of 15 shares for every 10 shares held, increasing total shares to 357,984,705[71]. - The company plans not to distribute cash dividends or issue bonus shares for the half-year period[73]. - The total number of shares increased to 357,984,705 after a capital increase of 214,790,823 shares through a bonus issue[114]. - The company’s stock price must be monitored closely to ensure compliance with the established buyback and shareholding increase conditions[107]. Research and Development - Research and development expenses increased by 29.49% to CNY 99,971,097.34, reflecting the company's commitment to enhancing new product development[33]. - The company obtained 21 domestic invention patents and 5 software copyright certificates during the reporting period, enhancing its intellectual property portfolio[43]. Market Position and Strategy - The company continues to focus on external expansion strategies to enhance its market position and product offerings[50]. - The company is transitioning from a hardware supplier to a solution and security operation model, enhancing its cloud security operation platform[51]. - The company aims to integrate its existing security technology with industrial control advantages through strategic partnerships[76]. Compliance and Governance - The company has established a stock option incentive plan to align the interests of shareholders and management, enhancing the responsibility and mission of the management team[81]. - The company has not encountered any significant changes in the feasibility of its fundraising projects[58]. - The company has committed to not transferring shares to competitors or engaging in competitive activities during the lock-up period[106]. Financial Management - The company has strengthened its financial management and human resources management, optimizing organizational structure and reducing operational costs[51]. - The company has not engaged in any entrusted financial management or derivative investments during the reporting period[64][66].

Financial Performance - Total revenue for Q1 2015 was CNY 64,676,724.55, an increase of 11.64% compared to CNY 57,932,667.63 in the same period last year[8] - Net profit attributable to shareholders was a loss of CNY 44,791,964.56, worsening from a loss of CNY 28,699,941.30 year-on-year, representing a 1.59% increase in loss[8] - The company reported a net loss of 44.79 million yuan for the period[26] - The company reported a total comprehensive loss of CNY 45,013,488.55, compared to a loss of CNY 47,530,292.74 in the previous year[56] - Basic and diluted earnings per share were both -CNY 0.3309, compared to -CNY 0.3495 in the previous period[56] Cash Flow - Net cash flow from operating activities was a negative CNY 64,222,864.51, a decline of 226.52% compared to a positive CNY 50,759,507.07 in the previous year[8] - Cash inflow from operating activities totaled CNY 160,819,235.61, down from CNY 592,561,617.83 in the previous period[61] - The cash outflow for operating activities was 121,952,953.28 CNY, down from 441,676,530.07 CNY in the previous period, indicating improved cash management[66] - Total cash inflow from financing activities was 159,366,493.27 CNY, down from 363,392,134.07 CNY in the previous period, reflecting a decrease of approximately 56%[64] - The net cash flow from investing activities was -23,295,264.45 CNY, compared to -12,407,817.88 CNY in the previous period, showing an increase in cash outflow[63] Assets and Liabilities - Total assets increased by 47.18% to CNY 1,800,280,063.53 from CNY 1,223,156,901.99 at the end of the previous year[8] - Total liabilities amounted to CNY 370,736,051.74, compared to CNY 252,401,625.28 previously[48] - Owner's equity increased to CNY 1,429,544,011.79 from CNY 970,755,276.71[49] - Total current assets as of March 31, 2015, were reported at 1,177,154,154.02 yuan, compared to 1,103,961,593.56 yuan at the beginning of the period, marking an increase of approximately 6.6%[46] Shareholder Information - Total number of shareholders at the end of the reporting period is 7,556[17] - The largest shareholder, INVESTOR AB LIMITED, holds 21.39% of shares, totaling 30,247,648 shares[17] - Lenovo Investment Co., Ltd. is the second-largest shareholder with a 13.39% stake, amounting to 18,944,101 shares[17] - The top 10 shareholders collectively hold significant stakes, with the top four alone accounting for over 67% of total shares[17] Strategic Initiatives - The company has completed the acquisition of Yisaitong, which has become a wholly-owned subsidiary, but faces integration risks if not managed properly[13] - The company is implementing a stock incentive plan to retain core employees and enhance their sense of belonging and ownership[12] - The company plans to address significant risk factors and operational difficulties in its future operations[29] Investment and Fundraising - The total amount of raised funds is CNY 354.13 million, with CNY 21.10 million invested in the current quarter[36] - Cumulative investment of raised funds reached CNY 315.76 million, representing 89.14% of the total raised[36] - The company has invested 970 million yuan in Anhua Jinhui Technology and 2,000 million yuan in Shenzhen Zhidu Technology as part of its external investment strategy[37] Operational Risks - The company reported a significant seasonal loss risk, with over 50% of annual revenue typically generated in the fourth quarter[11] - The company expects to incur losses in the first half of 2015 due to seasonal sales and revenue recognition patterns, cautioning investors against inferring annual profitability from quarterly data[41] Compliance and Governance - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of listing, with a total of 6,767,641 shares involved[31] - The company has confirmed compliance with all commitments made regarding share management and transfer[32] - The company has not provided funds to controlling shareholders or related parties, nor has it violated procedures for external guarantees[42]