证券代码：300369 证券简称：绿盟科技 绿盟科技集团股份有限公司投资者关系活动记录表 编号：2022-005 | --- | --- | --- | |-------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Financial Performance - The company's revenue for Q3 2022 was ¥553,335,720.44, representing a 20.23% increase year-over-year[4]. - The net profit attributable to shareholders for Q3 2022 was -¥38,419,809.26, a slight increase of 0.75% compared to the same period last year[4]. - The net profit excluding non-recurring gains and losses for the same period was -¥55,253,449.16, a decrease of 16.82% year-over-year[4]. - Total operating revenue for the current period reached ¥1,387,715,116.74, an increase from ¥1,232,032,506.68 in the previous period, representing a growth of approximately 12.7%[30]. - Net profit attributable to shareholders of the parent company was a loss of ¥253,977,037.88, compared to a loss of ¥30,292,217.11 in the previous period[33]. - The comprehensive income totalled a loss of ¥245,833,298.55, compared to a loss of ¥28,409,456.16 in the previous period[33]. Assets and Liabilities - The total assets at the end of Q3 2022 were ¥4,247,906,972.42, down 10.85% from the end of the previous year[4]. - Total current assets decreased to ¥2,562,493,071.86 from ¥3,175,784,853.40 year-on-year[21]. - Total assets amounted to ¥4,247,906,972.42, down from ¥4,765,042,452.58[24]. - Total liabilities decreased to ¥698,330,968.35 from ¥1,001,675,582.95 year-on-year[24]. - The total liabilities decreased to ¥829,705,636.56 from ¥1,129,199,294.49, a reduction of about 26.5%[30]. - The total equity attributable to shareholders of the parent company decreased to ¥3,418,278,724.43 from ¥3,636,090,709.45, a decline of about 6.0%[30]. Cash Flow - The company's cash flow from operating activities was -¥110,657,702.50, reflecting a significant decrease of 653.00% year-over-year[10]. - The company reported a net cash inflow from operating activities of ¥1,788,242,676.73, compared to ¥1,650,406,435.90 in the previous period[33]. - Operating cash inflow totaled ¥1,937,758,295.12, an increase from ¥1,801,931,094.63 in the previous period[36]. - Operating cash outflow amounted to ¥2,048,415,997.62, compared to ¥1,781,920,575.74 previously, resulting in a net cash flow from operating activities of -¥110,657,702.50, down from ¥20,010,518.89[36]. - Investment cash inflow was ¥1,892,472,187.75, a decrease from ¥2,769,571,661.65 in the prior period[36]. - Financing cash inflow was ¥48,072,800.00, compared to ¥14,092,643.60 previously[40]. Shareholder Information - Total number of common shareholders at the end of the reporting period was 34,077[14]. - The largest shareholder, Shen Jiyi, holds 10.05% of shares, totaling 80,250,145 shares[14]. Expenses - The company's development expenditure increased by 2341.80% to ¥111,218,330.18 due to new R&D projects[10]. - The company experienced a 37.75% increase in operating costs, totaling ¥545,284,747.06, due to rising hardware costs and increased delivery inputs[10]. - Research and development expenses rose to ¥430,814,233.21 from ¥332,675,536.31, reflecting an increase of approximately 29.5%[30]. - The financial expenses decreased by 133.63% to -¥913,282.03, attributed to increased interest income[10]. - The financial expenses showed a significant decrease, with interest expenses at ¥3,345,384.18 compared to ¥2,784,900.47 in the previous period[30].

Financial Performance - The company's operating revenue for the first half of 2022 was ¥834,379,396.30, representing an increase of 8.11% compared to ¥771,814,456.72 in the same period last year[29]. - The net profit attributable to shareholders of the listed company was -¥215,557,228.62, a significant decrease of 2,661.05% from ¥8,416,749.87 in the previous year[29]. - The basic earnings per share were -¥0.2699, down 2,599.07% from ¥0.0108 in the same period last year[29]. - The total assets at the end of the reporting period were ¥4,384,197,855.32, a decrease of 7.99% from ¥4,765,042,452.58 at the end of the previous year[29]. - The net assets attributable to shareholders of the listed company were ¥3,429,042,678.88, down 5.69% from ¥3,636,090,709.45 at the end of the previous year[29]. - The company reported a net cash flow from operating activities of -¥12,902,079.58, a decline of 107.95% compared to ¥162,283,344.56 in the same period last year[29]. - The weighted average return on net assets was -6.06%, a decrease of 6.31% compared to 0.25% in the previous year[29]. - The company reported a total of 6,928,533.91 CNY in net profit for the period, after accounting for various non-operating income and expenses[34]. - The company received government subsidies amounting to 9,205,772.31 CNY, which are closely related to its normal business operations[34]. Product Development and Innovation - The company is focusing on new product development and market expansion strategies, although specific details were not disclosed in the report[5]. - The company launched several new products, including the Green Alliance Magic Firewall (NF-SSE) and the Green Alliance SD-WAN Firewall (NF-WAN) during the reporting period[40]. - The company introduced new security services such as the Green Alliance Enterprise Attack and Defense Capability Maturity Assessment Service to meet diverse customer needs[44]. - The company has introduced innovative products and services in areas such as network intrusion prevention, vulnerability scanning, and DDoS attack mitigation, contributing to sustained revenue growth[64]. - The company has established a unified security management platform, leveraging big data and threat intelligence for comprehensive security solutions[65]. Market Position and Recognition - The company achieved a market share of 17.9% in the Chinese response and orchestration software market, ranking first for eleven consecutive years according to IDC[48]. - The company was recognized as a representative vendor in the SOAR market by Gartner in their report on Security Orchestration, Automation, and Response Solutions[49]. - The company has been listed as a representative vendor in cloud security for three consecutive years according to Gartner's Hype Cycle for ICT in China, 2022[50]. - The company's firewall products were included in Forrester's Now Tech report for enterprise firewalls, indicating strong market positioning[50]. - The company received multiple awards, including the first prize for the "Excellent Case of Collaborative Education in Cyberspace Security" for its project with Huazhong University of Science and Technology[50]. Financial Strategy and Investments - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company’s procurement strategy involves selecting suppliers through competitive bidding and maintaining long-term agreements with qualified suppliers[46]. - The company reported a decrease in investment income, with a loss of ¥641,875.77, primarily from long-term equity investments[86]. - The total investment during the reporting period was ¥15,655,125.48, representing a decrease of 65.40% compared to ¥45,240,000.00 in the same period last year[92]. - The company has no significant asset or equity sales during the reporting period[102]. Employee and Talent Management - The company has implemented an employee stock ownership plan and equity incentive plan to stabilize core employees, covering mid-level management and key technical personnel[109]. - The company has established a performance evaluation system that closely links the contributions of mid-level management and key technical personnel to their compensation, ensuring market competitiveness[109]. - The company is committed to enhancing employee training and development as part of its talent strategy to drive growth[109]. - The employee stock ownership plan includes 154 employees holding a total of 823,800 shares, representing 1.03% of the company's total equity[123]. Risks and Challenges - The company faced significant risks and challenges, which are detailed in the section on risks and countermeasures[5]. - The company faces risks related to seasonal losses, tax policy changes, and potential loss of core personnel[107]. - The company is actively monitoring the impact of the ongoing pandemic on its operations, which has affected project bidding, material procurement, and project delivery[111]. Corporate Social Responsibility - The company has initiated the "Beijing Green Alliance Charity Foundation" to support charitable activities and social welfare projects[131]. - The company has formed strategic partnerships with several universities to foster talent in the information security industry[129]. Shareholder Information - The company emphasizes shareholder rights and actively returns value to investors through cash dividends, ensuring timely and accurate information disclosure[128]. - The total number of common shareholders at the end of the reporting period was 36,055[178]. - The largest shareholder, Shen Jiyi, holds 10.05% of shares, totaling 80,250,145 shares, with a decrease of 2,608,500 shares during the reporting period[178].

Revenue and Profitability - The company's revenue for Q1 2022 was ¥326,553,622.31, representing a 34.64% increase compared to ¥242,538,839.02 in the same period last year[7]. - The net profit attributable to shareholders was a loss of ¥114,999,926.42, which is a 154.01% increase in loss compared to a loss of ¥45,273,468.89 in the previous year[7]. - The company's diluted earnings per share for Q1 2022 was -¥0.1439, reflecting a 153.79% increase in loss compared to -¥0.0567 in the same period last year[7]. - The net profit for Q1 2022 was a loss of CNY 118,454,561.07, worsening from a loss of CNY 40,830,887.79 in Q1 2021[41]. - The total comprehensive income attributable to the parent company was -$111.08 million, compared to -$42.96 million in the previous period[44]. - The basic earnings per share were -$0.1440, compared to -$0.0567 in the previous period, reflecting a decline in performance[44]. Cash Flow - The net cash flow from operating activities was ¥12,607,126.92, a significant improvement of 156.61% from -¥22,271,200.71 in the same period last year[7]. - The net cash flow from investing activities was -¥82,121,234.92, a decline of 222.08% compared to ¥67,267,226.70 in the previous year, mainly due to reduced purchases of financial products[17]. - Cash inflows from operating activities totaled $798.84 million, up from $590.85 million in the previous period, showing a positive trend in cash generation[48]. - The net cash flow from operating activities was $12.61 million, a recovery from a negative $22.27 million in the previous period[48]. - The net cash flow from investing activities was -$82.12 million, compared to a positive $67.27 million in the previous period, indicating increased investment outflows[51]. - The net cash flow from financing activities was -$10.72 million, compared to -$219.20 million in the previous period, showing a reduction in cash outflows[51]. - The cash and cash equivalents at the end of the period were $574.14 million, compared to $416.38 million at the end of the previous period, indicating improved liquidity[51]. Assets and Liabilities - The total assets at the end of the reporting period were ¥4,522,743,567.43, a decrease of 5.08% from ¥4,765,042,452.58 at the end of the previous year[7]. - Total current assets decreased from RMB 3,175,784,853.40 at the beginning of the year to RMB 2,903,119,209.42 at the end of the reporting period[29]. - Total liabilities decreased to CNY 973,236,264.32 in Q1 2022 from CNY 1,129,199,294.49 in Q1 2021, a reduction of approximately 13.8%[36]. - The company's equity attributable to shareholders decreased to CNY 3,549,214,610.48 in Q1 2022 from CNY 3,636,090,709.45 in Q1 2021, a decline of about 2.4%[36]. Expenses - Research and development expenses increased by 62.14% to ¥141,489,251.62, driven by higher personnel costs and related operational expenses[11]. - Total operating costs for Q1 2022 were CNY 469,726,863.40, up from CNY 316,736,767.15 in Q1 2021, indicating an increase of about 48.2%[41]. - Financial expenses surged by 1636.18% to ¥2,009,807.11, primarily due to foreign exchange losses[16]. - R&D expenses in Q1 2022 reached CNY 141,489,251.62, compared to CNY 87,264,379.60 in Q1 2021, reflecting a rise of approximately 62.2%[41]. Shareholder Information - Total number of common shareholders at the end of the reporting period was 35,256[21]. - The largest shareholder, Shen Jiya, holds 10.05% of shares, totaling 80,250,145 shares[21]. - The second largest shareholder, China Electronics Technology Group (Chengdu) Investment Fund Management Co., holds 7.01% of shares, totaling 55,984,059 shares[21]. - The company has a total of 15,938,436 shares held in the repurchase special account, accounting for 2.00% of the total share capital[24]. Other Activities - The company established the Beijing Green Alliance Public Welfare Foundation, incurring donation expenses of ¥8,000,000 during the reporting period[11]. - The company plans to establish a public welfare foundation with an investment of RMB 8 million[26]. - The company terminated a share transfer agreement for 40,000,000 shares originally planned to be sold at RMB 15.30 per share[26].

Financial Performance - The company's operating revenue for 2021 was ¥2,608,995,096.45, representing a 29.80% increase compared to ¥2,010,044,336.08 in 2020[29]. - The net profit attributable to shareholders for 2021 was ¥344,541,707.28, an increase of 14.42% from ¥301,128,591.09 in 2020[29]. - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 8.64% to ¥235,867,508.01 in 2021 from ¥258,162,527.08 in 2020[29]. - The net cash flow from operating activities for 2021 was ¥75,871,779.87, a significant decrease of 82.99% compared to ¥446,115,488.46 in 2020[29]. - The total assets at the end of 2021 were ¥4,765,042,452.58, an increase of 8.94% from ¥4,373,868,083.68 at the end of 2020[29]. - The net assets attributable to shareholders at the end of 2021 were ¥3,636,090,709.45, up 3.99% from ¥3,496,691,687.45 at the end of 2020[29]. - The basic earnings per share for 2021 was ¥0.44, a 15.79% increase from ¥0.38 in 2020[29]. - The company's total revenue for the fiscal year 2021 was approximately ¥2,607,988,893.27, representing a year-on-year increase of 29.81%[110]. - The net profit attributable to shareholders for Q1 2021 was approximately -¥45,273,468.8, while the annual net profit for 2021 was approximately ¥374,833,924[104]. - Revenue from security products reached approximately ¥1,602,401,211.98, accounting for 61.42% of total revenue, with a year-on-year growth of 19.48%[108]. Market Position and Strategy - The company is positioned to benefit from the increasing demand for cybersecurity solutions driven by the growth of the digital economy and new technologies[43]. - The company holds a leading market share of 24.2% in the domestic anti-DDoS hardware security product market, according to IDC 2021[60]. - The company's WEB application firewall (WAF) system has a market share of 14.3%, ranking first in China's hardware WAF market[60]. - The company is recognized as a leading brand in the domestic cybersecurity industry and has participated in major national security projects, enhancing its market position[95]. - The company maintains a leading market share in the cybersecurity sector, consistently ranking first in market share or competitive strength in various reports[95]. - The company aims to expand and consolidate its leading position in the domestic information security industry, focusing on market strategy, technology R&D, and operational management to increase market share and brand image[156]. Product Development and Innovation - The company launched 12 new products in 2021, expanding its product categories to over 70, including solutions for cloud security, industrial security, and threat intelligence[53]. - The company has established eight laboratories dedicated to research in cloud computing security, industrial internet security, and data intelligence security, enhancing its core competitiveness[53]. - The company emphasizes independent research and development, with a strategy driven by customer needs and key technological innovations[55]. - The company launched several new products, including the Green Alliance Integrated Terminal Security Management System V6.0 and the Green Alliance Network Traffic Analysis System NTA V4.5, enhancing its competitive edge[135]. - The company is focusing on zero-trust solutions, integrating various technologies to enhance security capabilities and address diverse user scenarios[135]. Talent and Human Resources - The company faces risks related to the loss of core personnel, which could impact product development and necessitate additional resources for recruitment and training[8]. - The company emphasizes the importance of maintaining a stable core employee base through stock ownership plans and performance-based compensation systems[11]. - The company has implemented a talent development strategy to enhance employee training and retention, aiming to cultivate a skilled workforce for future growth[11]. - The number of R&D personnel increased by 33.30% year-on-year to 1,237, accounting for 27.97% of the total workforce[130]. - Total R&D investment reached ¥535,858,750.17, representing 20.54% of operating revenue, an increase from 18.18% in the previous year[132]. Risk Management - The company acknowledges the risks associated with expanding into overseas markets, including local operating environments, policies, regulations, and foreign exchange fluctuations[12]. - The company's annual report highlights the need for investors to be aware of the risks associated with seasonal revenue fluctuations and the potential impact on overall profitability[6]. - The company is subject to a 10% corporate income tax rate due to its qualification as a key software enterprise under national policies, which could be adversely affected by future changes in tax incentives[7]. Governance and Compliance - The company has held multiple shareholder meetings during the reporting period to ensure compliance with governance standards and protect shareholder interests[167]. - The company has no controlling shareholder or actual controller, ensuring independence in operations, assets, and finances[173]. - The board of directors held 11 meetings during the reporting period, adhering to established rules for effective decision-making[168]. - The supervisory board consists of 3 members, including 1 employee supervisor, and held 8 meetings in the reporting period to oversee financial and operational compliance[169]. - The company maintains a transparent information disclosure system, ensuring timely and accurate communication with all shareholders[170]. Cash Flow and Investments - Operating cash inflow totaled CNY 2,669,360,797.66, an increase of 23.26% compared to CNY 2,165,690,143.34 in 2020[136]. - Net cash flow from operating activities decreased by 82.99% to CNY 75,871,779.87 from CNY 446,115,488.46 in the previous year[139]. - Investment cash inflow increased by 15.51% to CNY 3,456,070,912.09, while investment cash outflow decreased by 15.58% to CNY 3,153,816,933.52[136]. - The net increase in cash and cash equivalents was CNY 66,037,517.42, compared to a decrease of CNY 421,201,161.22 in the previous year, marking an 11.20% improvement[136]. Awards and Recognition - The company was awarded the "2021 Excellent Application Case in Industrial Information Security" and "2021 Excellent Member Unit" by the Industrial Information Security Industry Development Alliance[68]. - The company’s data desensitization system won the "2021 Annual Network Innovation Product" award at the China Digitalization Conference[66]. - The company has received multiple awards in 2021, including the "2021 Annual Cloud Security Solution Award" and "2021 Annual Anti-Fraud Solution Award" for its innovative solutions[84]. - The company was recognized as a Representative Vendor in the Gartner 2021 Market Guide for Security Threat Intelligence Products and Services, being the only domestic vendor mentioned in the intelligence subscription service category[77].

Financial Performance - The company's revenue for Q3 2021 was ¥460,218,049.96, representing a 17.08% increase year-over-year, while the revenue for the first nine months reached ¥1,232,032,506.68, up 30.67% compared to the same period last year[3] - Total operating revenue for the third quarter reached ¥1,232,032,506.68, an increase of 30.7% compared to ¥942,859,525.61 in the same period last year[33] - Total operating costs amounted to ¥1,331,962,081.64, up from ¥1,006,559,796.15, reflecting a year-over-year increase of 32.3%[33] - The company reported a net loss from operating profit of ¥36,074,827.37, contrasting with a profit of ¥3,945,890.99 in the same quarter last year[33] - The net profit for the period was -30,458,058.63, compared to -8,050,150.92 in the previous period, indicating a significant increase in losses[36] - The basic and diluted earnings per share were both -0.0389, a decline from -0.0098 in the previous period[39] - The total comprehensive income attributable to the parent company was -28,243,614.64, compared to -9,920,955.90 in the previous period[36] Cash Flow and Liquidity - The company's cash flow from operating activities for the first nine months was ¥20,010,518.89, reflecting a significant decline of 90.09% year-over-year[3] - Cash flow from operating activities generated a net amount of 20,010,518.89, down from 202,022,074.06 in the previous period[41] - The company reported a total operating cash inflow of 1,801,931,094.63, an increase from 1,452,989,231.89 in the previous period[41] - Total cash inflow from investment activities was 2,769,571,661.65, compared to 1,339,995,326.07 in the previous period, showing a substantial increase[43] - The net cash flow from investment activities was 112,573,689.70, a recovery from a negative cash flow of -913,292,330.48 in the previous period[43] - Cash and cash equivalents at the end of the period totaled 385,381,055.59, compared to 259,356,938.67 in the previous period[43] - The company's cash and cash equivalents decreased to approximately RMB 472.49 million from RMB 636.85 million, representing a decline of 25.7%[22] Assets and Liabilities - Total assets as of September 30, 2021, were ¥3,977,186,971.63, a decrease of 9.07% from the end of the previous year[3] - Total assets decreased to ¥3,977,186,971.63 from ¥4,373,868,083.68, representing a decline of 9%[29] - The company's total equity attributable to shareholders decreased by 7.94% to ¥3,219,143,957.18 compared to the end of the previous year[3] - The company's total equity decreased to ¥3,218,300,297.18 from ¥3,496,013,868.97, reflecting a decline of 8%[29] - Total liabilities decreased to ¥758,886,674.45 from ¥877,854,214.71, a reduction of 13.5%[29] - Non-current liabilities increased to ¥111,109,606.80, up from ¥53,914,475.73, marking a rise of 105.5%[29] - Current liabilities increased from ¥823,939,738.98 to ¥849,164,333.40, reflecting a rise of ¥25,224,594.42[54] Research and Development - The company's R&D expenses for the first nine months increased to ¥332,675,536.31, a rise of 38.54% compared to the same period last year, indicating a focus on innovation[10] - Research and development expenses were ¥332,675,536.31, compared to ¥240,126,653.05 in the previous year, indicating a significant increase of 38.4%[33] Shareholder Information - The top 10 shareholders hold a total of 15,938,436 shares in the company's repurchase account, accounting for 2.00% of the total share capital[17] - The company has a significant shareholder, Shen Jiyi, holding 10.38% of the shares, totaling 82,858,645 shares[16] - The company is undergoing a share transfer agreement involving 40 million shares, which will change the ownership structure but will not affect the controlling shareholder status[19] - The company has identified consistent action among certain shareholders, including China Electronics Fund and Cybersecurity Fund, indicating potential strategic alignment[17] Inventory and Other Income - The company reported a significant increase in inventory, which rose by 93.18% to ¥125,134,138.74, attributed to increased raw material stock and ongoing project deliveries[7] - The company recorded a substantial increase in other income, which rose by 39.57% to ¥60,611,062.45, primarily due to increased VAT refunds on software products[10]

Financial Performance - The company's operating revenue for the first half of 2021 was approximately ¥771.81 million, representing a 40.39% increase compared to ¥549.76 million in the same period last year[26]. - The net profit attributable to shareholders of the listed company was approximately ¥8.42 million, a significant turnaround from a loss of ¥30.88 million in the previous year, marking a 127.25% improvement[26]. - The net cash flow from operating activities was approximately ¥162.28 million, which is a 19.07% increase from ¥136.29 million in the same period last year[26]. - The basic earnings per share for the reporting period was ¥0.0108, compared to a loss of ¥0.0387 per share in the same period last year, reflecting a 127.91% increase[26]. - The company reported a net profit of approximately -¥3.12 million after deducting non-recurring gains and losses, an improvement of 93.55% from -¥48.48 million in the previous year[26]. - The weighted average return on net assets was 0.25%, a significant increase from -0.92% in the same period last year, reflecting a 1.17% improvement[26]. - The gross profit margin for security products decreased by 8.83% to 68.52%, while the gross profit margin for security services decreased by 10.92% to 66.68%[74]. - The company reported a significant increase in financial expenses, with a year-on-year change of 11,393.80% due to increased exchange losses[73]. - The total cash and cash equivalents decreased by ¥39,201,232.01, an improvement of 89.52% compared to the previous year[73]. - The company’s investment income was ¥12,465,467.98, showing a negative change of -562.06%[79]. Assets and Liabilities - Total assets at the end of the reporting period were approximately ¥3.97 billion, a decrease of 9.15% from ¥4.37 billion at the end of the previous year[26]. - The net assets attributable to shareholders of the listed company were approximately ¥3.22 billion, down 7.97% from ¥3.50 billion at the end of the previous year[26]. - The company’s accounts receivable decreased to ¥503,710,812.26, representing a decline of 1.33% year-on-year[81]. - The company’s inventory increased to ¥108,616,475.49, reflecting a rise due to increased raw material stocking and project delivery[81]. - The total liabilities decreased from 877,854,214.71 to 756,445,727.24, a reduction of approximately 13.8%[194]. - Current liabilities decreased from 823,939,738.98 to 647,293,616.52, representing a decline of about 21.4%[194]. - Owner's equity decreased from 3,496,013,868.97 to 3,217,125,528.57, a decrease of approximately 8.0%[197]. - The capital reserve increased from 1,389,930,421.73 to 1,392,343,529.93, a growth of about 0.2%[197]. Shareholder Information - The total number of shareholders at the end of the reporting period was 23,613, with the largest shareholder holding 10.38% of the shares[164]. - The largest shareholder, Shen Jiya, holds 82,858,645 shares, representing 10.38% of the total shares[164]. - The company has a share repurchase account holding 24,176,436 shares, which accounts for 3.03% of the total share capital[167]. - The company plans to use its own funds between RMB 1.8 billion and RMB 3.6 billion for share repurchase purposes[159]. - The total number of shares before the recent change was 798,138,173, with a total of 209,700 shares reduced, resulting in a new total of 798,347,873 shares[156]. - The number of restricted shares decreased from 65,247,390 (8.17%) to 64,012,861 (8.02%), a reduction of 1,234,529 shares[156]. - The number of unrestricted shares increased from 732,890,783 (91.83%) to 734,335,012 (91.98%), an increase of 1,444,229 shares[156]. Corporate Governance and Strategy - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[7]. - The company has implemented an employee stock ownership plan and stock incentive plan to retain core technical personnel and management, linking their compensation to performance[108]. - The company has adjusted its 2021 stock incentive plan, reducing the number of incentive recipients from 195 to 192 and the number of restricted shares from 3.408 million to 3.362 million[118]. - The company has experienced a risk of core personnel turnover, which could impact product development and necessitate additional recruitment efforts[108]. - The company is actively monitoring and assessing risks associated with overseas market expansion, including local regulations and currency fluctuations[109]. Market Position and Innovation - The company focuses on information security, providing a range of products and services including security research, security products, security solutions, and security services[35]. - The company has established eight laboratories dedicated to various fields of security research, enhancing its core competitiveness and technological innovation[36]. - The company emphasizes customer-driven product development and continuous innovation to meet market demands[40]. - The company launched 14 categories and 28 commercial products during the reporting period, focusing on security protection, auditing, management, and assessment to support channel business expansion[55]. - The company was recognized as a top supplier in the APT detection market in China, highlighting its competitive position in the cybersecurity industry[46]. - The company has been awarded multiple honors, including the "Outstanding Technical Support Unit" by the National Information Security Vulnerability Database in 2020[46]. - The company has developed a comprehensive security solution for various sectors, including government, finance, telecommunications, energy, transportation, education, and healthcare[47]. - The company has adopted a "Smart Security 3.0" concept to guide its technology product innovation and align with national cybersecurity development strategies[55]. - The company is focusing on enhancing partner quality and optimizing its organizational structure to support its channel strategy transformation[55]. Regulatory and Compliance - The implementation of new cybersecurity regulations, such as the "Cybersecurity Law" and "Data Security Law," is expected to drive growth in the information security industry[51]. - The company is eligible for a reduced corporate income tax rate of 10% under national tax incentives for key software enterprises, which could be adversely affected by future policy changes[104]. - No significant environmental issues or administrative penalties reported during the period[122]. - No major lawsuits or arbitration matters occurred during the reporting period[132]. - The company did not engage in any significant related-party transactions during the reporting period[133]. Research and Development - Research and development investment increased to ¥183,277,781.27, reflecting a growth of 21.54% compared to the previous year[73]. - The company is actively involved in research on emerging security fields such as cloud security, IoT security, and blockchain security[35]. - The company has achieved CMMI Level 5 certification, indicating high software capability maturity[44].

Financial Performance - The company's operating revenue for 2020 was CNY 2,010,044,336.08, representing a 20.28% increase compared to CNY 1,671,091,024.50 in 2019[18]. - The net profit attributable to shareholders for 2020 was CNY 301,128,591.09, a 32.94% increase from CNY 226,510,778.11 in 2019[18]. - The net profit after deducting non-recurring gains and losses was CNY 258,162,527.08, which is a 40.50% increase compared to CNY 183,752,082.59 in 2019[18]. - The net cash flow from operating activities for 2020 was CNY 446,115,488.46, up 28.93% from CNY 346,015,579.01 in 2019[18]. - The basic earnings per share for 2020 was CNY 0.38, reflecting a 35.71% increase from CNY 0.28 in 2019[18]. - The total assets at the end of 2020 were CNY 4,373,868,083.68, a 7.14% increase from CNY 4,082,277,759.29 at the end of 2019[18]. - The net assets attributable to shareholders at the end of 2020 were CNY 3,496,691,687.45, which is a 3.36% increase from CNY 3,383,111,965.57 at the end of 2019[18]. - The weighted average return on equity for 2020 was 8.68%, an increase of 1.69% from 6.99% in 2019[18]. - The company reported a comprehensive diluted earnings per share of CNY 0.3772 after accounting for changes in share capital[18]. - The company reported a net profit attributable to shareholders of RMB 301,128,591.09 for the year 2020[149]. Cash Flow and Investments - The net cash flow from operating activities for 2020 was ¥446,115,488.46, an increase of 28.93% year-on-year[100]. - The net cash flow from investment activities decreased by 261.48% in 2020, primarily due to increased purchases of financial products[100]. - The net cash flow from financing activities decreased by 37.84% in 2020, mainly due to reduced external loans and share repurchases[100]. - The company reported an investment income of ¥39,960,623.60, accounting for 11.99% of total profit[102]. - The total investment amount for the reporting period was CNY 2,500,000, a significant decrease of 93.10% compared to CNY 36,240,000 in the previous year[111]. - The company reported a surplus of CNY 44,091.82 from fundraising, attributed to interest income and fees, which will be used to supplement working capital[124]. Revenue Breakdown - Revenue from security products was 1,341.18 million yuan, a 22.21% increase year-on-year; revenue from security services was 643.34 million yuan, up 18.09%[64]. - Revenue from the information security sector was ¥2,009,113,621.75, accounting for 99.95% of total revenue, with a year-on-year growth of 20.32%[77]. - Revenue from security products was ¥1,341,182,435.33, making up 66.72% of total revenue, and increased by 22.21% compared to the previous year[81]. - The North China region saw a significant revenue decline of 45.44%, with revenue dropping to ¥308,794,803.49 from ¥565,930,348.54[77]. - The Southwest region experienced a remarkable growth of 174.41%, with revenue increasing to ¥284,234,617.18 from ¥103,581,639.96[77]. Research and Development - The company has established eight laboratories focusing on various aspects of cybersecurity, enhancing its research capabilities in cloud computing and IoT security[31]. - The company emphasizes independent research and development, with a focus on customer needs and technological innovation[33]. - Research and development expenses for 2020 amounted to ¥357,200,258.01, representing a 14.75% increase compared to 2019[94]. - The company invested ¥365,434,139.82 in R&D in 2020, which is 18.18% of its operating revenue[96]. - The number of R&D personnel increased to 928 in 2020, representing 27.28% of the total workforce[96]. Market Position and Strategy - The company maintains a leading market share of 14.8% in the Asia-Pacific intrusion detection and prevention hardware market, ranking first among Chinese manufacturers[36]. - The company's Web Application Firewall (WAF) achieved the highest market share in China according to IDC's 2020 report[37]. - The company has signed multiple benchmark projects with global telecom operators and Fortune 500 companies for its Anti-DDoS System (ADS), maintaining the number one market share in Greater China for six consecutive years[37]. - The company is focusing on research and development in the new infrastructure sector, including cloud security and 5G security solutions[70]. - The company is strengthening its partner ecosystem and channel cooperation to enhance market reach[64]. Corporate Governance and Compliance - The company has no significant discrepancies between financial reports prepared under international and Chinese accounting standards[22][23]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[160]. - The company did not face any delisting situations after the annual report disclosure[166]. - There were no significant litigation or arbitration matters during the reporting period[167]. - The company did not experience any penalties or rectification situations during the reporting period[168]. Social Responsibility and Community Engagement - The company actively fulfills its social responsibilities and maintains shareholder rights, providing timely and accurate information disclosure[194]. - The company donated network information security materials to Wuhan People's Hospital and provided comprehensive information security services during the pandemic[199]. - The company offered free technical support to all hospitals in epidemic areas and assisted in equipment inspection and upgrades[199]. - The company provided 24/7 free emergency response services to the healthcare sector, ensuring cybersecurity during the pandemic[199]. - The company proposed a "Five Defenses" security solution for the healthcare industry, focusing on health information platforms and remote medical services[199]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 0.78 per 10 shares (including tax) to all shareholders[4]. - The cash dividend distribution plan for 2020 is set at RMB 0.78 per 10 shares, totaling approximately RMB 60,386,807.29[152]. - The cash dividend amount represents 100% of the total distributable profit for the year, which is RMB 1,213,639,216.86[149]. - The total cash dividend, including other methods, amounts to RMB 189,621,879.17, fully utilizing the distributable profits[149]. - The cash dividends for the last three years have shown a consistent payout trend, with a total cash dividend of RMB 156,305,539.00 distributed over the period[153].

Financial Performance - The company's revenue for Q1 2021 was ¥242,538,839.02, representing a 47.04% increase compared to ¥164,952,473.04 in the same period last year[9] - The net profit attributable to shareholders was -¥45,273,468.89, an improvement of 25.36% from -¥60,656,463.33 year-on-year[9] - The basic earnings per share were -¥0.0567, an improvement of 25.39% from -¥0.0760 in the same period last year[9] - The company achieved operating revenue of CNY 242.54 million in Q1 2021, a year-on-year increase of 47.04%[28] - The net loss attributable to shareholders was CNY 45.27 million, a decrease in loss of 25.36% compared to the previous year[28] - The company reported a total comprehensive loss of CNY -43,173,188.02 for Q1 2021, compared to a loss of CNY -55,302,207.68 in the previous year, marking an improvement of about 22%[67] Cash Flow - The net cash flow from operating activities was -¥22,271,200.71, a decline of 324.39% compared to -¥5,247,818.41 in the previous year[9] - The company’s cash flow from investing activities showed a net inflow of CNY 67.27 million, a significant improvement compared to the previous year[27] - Cash inflow from operating activities totaled ¥590,849,191.56, compared to ¥398,711,339.76 in the previous period, indicating a 48.3% increase[77] - The company reported a net cash inflow from investment activities of ¥67,267,226.70, a significant recovery from a net outflow of ¥288,625,627.93 in the previous period[82] - The net cash flow from operating activities was -$16.31 million, a significant decrease from $119.72 million in the previous period[86] - Cash inflow from investment activities totaled $463.14 million, compared to $50.21 million last year, indicating a substantial increase[86] Assets and Liabilities - The total assets at the end of the reporting period were ¥3,919,484,949.83, down 10.39% from ¥4,373,868,083.68 at the end of the previous year[9] - The total liabilities decreased to ¥695,132,714.19 from ¥877,854,214.71, reflecting a decline of about 21%[51] - The total equity attributable to shareholders decreased to ¥3,225,238,247.34 from ¥3,496,691,687.45, a decline of approximately 8%[54] - Total assets decreased to CNY 3,380,925,080.93 from CNY 3,673,404,267.90, a decline of about 8%[61] - Total liabilities decreased to CNY 182,441,278.30 from CNY 233,155,418.85, a reduction of approximately 22%[61] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 22,808[12] - The largest shareholder, Shen Jiyi, held 10.38% of the shares, totaling 82,858,645 shares[12] Operational Efficiency - The company reported a significant increase in prepaid expenses, rising by 171.26% to CNY 50.24 million due to increased payments to suppliers[24] - Inventory increased by 43.04% to CNY 92.65 million, attributed to higher raw material purchases and costs of ongoing projects[24] - The company’s accounts payable decreased by 44.47% to CNY 130.59 million, indicating settlement of supplier payments[24] - Total operating costs for Q1 2021 were CNY 316,736,767.15, up from CNY 243,539,842.63, indicating a rise of about 30%[64] Research and Development - Research and development expenses for Q1 2021 were CNY 87,264,379.60, up from CNY 67,870,241.13, indicating an increase of approximately 28%[64] - Research and development expenses rose to ¥44,741,140.59, up from ¥35,782,198.08, reflecting a 25% increase in investment in innovation[72] Government Support - The company received government subsidies amounting to ¥477,294.21 during the reporting period[9] Future Outlook - The company expects to continue facing losses in the first half of the year due to seasonal sales characteristics, with performance concentrated in the second half[37]

[Important Notice](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) [Content of Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA%E5%86%85%E5%AE%B9) The company's management ensures the truthfulness, accuracy, and completeness of this quarterly report, with all directors attending the review meeting - Company management guarantees the truthfulness, accuracy, and completeness of this quarterly report, free from false statements, misleading representations, or material omissions[3](index=3&type=chunk) - All directors attended the board meeting that reviewed this quarterly report[4](index=4&type=chunk) - The company's principal officer, head of accounting, and head of accounting department guarantee the truthfulness, accuracy, and completeness of the financial statements in the quarterly report[4](index=4&type=chunk) [Company Profile](index=3&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) [Key Accounting Data and Financial Indicators](index=3&type=section&id=%E4%B8%80%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company reported a 14.11% Q3 revenue increase but a 28.66% decline in net profit, with year-to-date revenue up 8.93% and net profit turning to a loss, while operating cash flow surged 884.37% Key Financial Indicators (Year-over-Year Change) | Indicator | Current Period (Q3) | Year-to-Date (YTD) | | :--- | :--- | :--- | | Operating Revenue (RMB) | 393,095,342.84 (+14.11%) | 942,859,525.61 (+8.93%) | | Net Profit Attributable to Shareholders (RMB) | 23,027,951.02 (-28.66%) | -7,856,137.49 (-671.60%) | | Net Cash Flow from Operating Activities (RMB) | 65,734,408.42 (-42.86%) | 202,022,074.06 (+884.37%) | | Basic Earnings Per Share (RMB/share) | 0.0289 (-28.29%) | -0.0098 (-653.85%) | | Total Assets (RMB) | 3,868,496,587.38 (-5.24% vs Year-Beginning) | - | | Net Assets Attributable to Shareholders (RMB) | 3,284,795,045.86 (-2.91% vs Year-Beginning) | - | Non-Recurring Gains and Losses (Year-to-Date) | Item | Amount (RMB) | | :--- | :--- | | Gains/Losses from Entrusted Investments or Asset Management | 24,778,035.98 | | Government Grants Recognized in Current Period P&L | 4,033,984.42 | | **Total** | **26,209,145.61** | - The company classified software product VAT refunds (**RMB 38,996,385.92**) as recurring gains and losses[11](index=11&type=chunk) [Shareholder Information](index=4&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of the reporting period end, the company had 22,174 common shareholders, with Shen Jiye as the largest at 10.38%, and two concerted party groups among the top ten - Total common shareholders at the end of the reporting period were **22,174**[12](index=12&type=chunk) Top Five Shareholders' Holdings | Shareholder Name | Holding Percentage | Number of Shares Held | | :--- | :--- | :--- | | Shen Jiye | 10.38% | 82,858,645 | | Qidi Technology Services Co., Ltd. | 8.28% | 66,065,553 | | CETC (Chengdu) Network Security Equity Investment Fund Partnership (Limited Partnership) | 7.01% | 55,984,059 | | CETC Electronic Information Industry Investment Fund (Tianjin) Partnership (Limited Partnership) | 6.90% | 55,097,548 | | Leiyan Investment Co., Ltd. | 4.24% | 33,864,988 | - Concerted party relationships exist between Shen Jiye and Yi'an Baocheng, and among CEC Fund, Net Security Fund, and CETC Investment Holdings Co., Ltd[15](index=15&type=chunk) [Changes in Restricted Shares](index=5&type=section&id=%E4%B8%89%E3%80%81%E9%99%90%E5%94%AE%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) Total restricted shares decreased from 72.29 million to 68.55 million, mainly due to the lifting of major asset restructuring restrictions and changes in executive lock-up shares Summary of Changes in Restricted Shares | Shareholder Name/Item | Restricted Shares at Beginning of Period | Released from Restriction This Period | Added to Restriction This Period | Restricted Shares at End of Period | | :--- | :--- | :--- | :--- | :--- | | **Total** | **72,289,084** | **3,981,117** | **237,033** | **68,545,000** | | Shen Jiye | 62,143,984 | 0 | 0 | 62,143,984 | | Wang Jianguo | 1,342,664 | 1,342,664 | 0 | 0 | | Ruan Xiaoxun | 1,269,470 | 1,269,470 | 0 | 0 | - Restricted shares from major asset restructuring held by multiple shareholders were lifted on **September 30, 2020**[16](index=16&type=chunk)[18](index=18&type=chunk) [Significant Events](index=7&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [Significant Changes in Financial Data and Reasons](index=7&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Significant financial changes include decreased cash and increased financial assets due to wealth management, higher inventory and fixed assets from project investments, reduced short-term borrowings, and improved operating cash flow offset by increased investment outflows Key Balance Sheet Changes and Reasons (Year-to-Date) | Item | Change Percentage | Primary Reason | | :--- | :--- | :--- | | Cash and Cash Equivalents | -71.32% | Due to the company using idle funds to purchase wealth management products | | Financial Assets Held for Trading | 173.51% | Due to the company using idle funds to purchase wealth management products | | Inventories | 153.18% | Due to increased costs of unaccepted construction projects and the new revenue standard | | Fixed Assets | 104.91% | Due to Chengdu subsidiary's office building being reclassified to fixed assets | | Development Expenditures | 2348.25% | Due to increased capitalization of R&D expenses for new projects | | Short-term Borrowings | -74.37% | Due to repayment of bank loans in this period | | Advances from Customers | -96.04% | Reclassified to contract liabilities due to implementation of new revenue standard | Key Cash Flow Statement Changes and Reasons (Year-to-Date) | Item | Change Percentage | Primary Reason | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 884.37% | Due to significant increase in business collections this period | | Net Cash Flow from Investing Activities | -62.44% | Due to increased purchases of wealth management products compared to the same period last year | | Cash Paid for Other Financing Activities | 309.28% | Due to payment of domestic guarantee for foreign loan margin this period | [Investor Relations Activities](index=8&type=section&id=%E5%85%AB%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%8E%A5%E5%BE%85%E8%B0%83%E7%A0%94%E3%80%81%E6%B2%9F%E9%80%9A%E3%80%81%E9%87%87%E8%AE%BF%E7%AD%89%E6%B4%BB%E5%8A%A8%E7%99%BB%E8%AE%B0%E8%A1%A8) The company held a conference call with institutional investors on August 31, 2020, with details publicly disclosed - The company held a conference call on **August 31, 2020**, for institutional investors, with details disclosed on Juchao Information Network[29](index=29&type=chunk) [Financial Statements](index=9&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) [Financial Statements](index=9&type=section&id=%E4%B8%80%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides the company's consolidated and parent financial statements for Q3 2020, highlighting a year-to-date net loss, Q3 profitability, and strong operating cash flow [Consolidated Balance Sheet](index=9&type=section&id=1%E3%80%81%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of September 30, 2020, total assets were RMB 3.87 billion (down 5.24% from year-end) and total liabilities RMB 585 million (down 16.47%), reflecting significant cash reduction and financial asset increase due to wealth management Key Consolidated Balance Sheet Items | Item | September 30, 2020 (RMB) | December 31, 2019 (RMB) | | :--- | :--- | :--- | | **Total Assets** | **3,868,496,587.38** | **4,082,277,759.29** | | Cash and Cash Equivalents | 347,702,385.44 | 1,212,246,678.92 | | Financial Assets Held for Trading | 1,259,220,397.26 | 460,396,222.22 | | **Total Liabilities** | **584,700,044.32** | **699,970,283.09** | | **Total Equity Attributable to Parent Company Shareholders** | **3,284,795,045.86** | **3,383,111,965.57** | [Consolidated Income Statement for the Current Period (Q3)](index=14&type=section&id=3%E3%80%81%E5%90%88%E5%B9%B6%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E8%A1%A8) In Q3 2020, operating revenue grew 14.11% to RMB 393 million, but net profit attributable to parent shareholders declined 28.66% to RMB 23.03 million, primarily due to increased costs and R&D expenses Consolidated Income Statement (2020 Q3 vs 2019 Q3) | Item | 2020 Q3 (RMB) | 2019 Q3 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 393,095,342.84 | 344,480,502.99 | | Operating Profit | 29,747,107.29 | 29,732,958.12 | | Net Profit Attributable to Parent Company Shareholders | 23,027,951.02 | 32,278,766.14 | | Basic Earnings Per Share | 0.0289 | 0.0403 | [Consolidated Income Statement from Year-Beginning to End of Reporting Period (YTD)](index=18&type=section&id=5%E3%80%81%E5%90%88%E5%B9%B6%E5%B9%B4%E5%88%9D%E5%88%B0%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E5%88%A9%E6%B6%A6%E8%A1%A8) For the first three quarters of 2020, cumulative operating revenue grew 8.93% to RMB 943 million, but net profit attributable to parent shareholders significantly declined to a loss of RMB 7.86 million Consolidated Income Statement (2020 YTD vs 2019 YTD) | Item | 2020 YTD (RMB) | 2019 YTD (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 942,859,525.61 | 865,571,043.79 | | Operating Profit | 3,945,890.99 | -3,983,736.76 | | Net Profit Attributable to Parent Company Shareholders | -7,856,137.49 | -1,018,162.11 | | Basic Earnings Per Share | -0.0098 | -0.0013 | [Consolidated Cash Flow Statement from Year-Beginning to End of Reporting Period (YTD)](index=22&type=section&id=7%E3%80%81%E5%90%88%E5%B9%B6%E5%B9%B4%E5%88%9D%E5%88%B0%E6%8A%A5%E5%91%8A%E6%9C%AB%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the first three quarters of 2020, net operating cash flow surged 884.37% to RMB 202 million due to increased collections, while net investing cash outflow was RMB 913 million, mainly for wealth management products, and financing outflow was RMB 37 million Consolidated Cash Flow Statement (2020 YTD vs 2019 YTD) | Item | 2020 YTD (RMB) | 2019 YTD (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 202,022,074.06 | 20,522,901.16 | | Net Cash Flow from Investing Activities | -913,292,330.48 | -562,240,095.14 | | Net Cash Flow from Financing Activities | -37,201,201.02 | -42,984,345.28 | | Net Increase in Cash and Cash Equivalents | -751,719,053.89 | -579,730,458.30 | [Explanation of Financial Statement Adjustments](index=25&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E8%B0%83%E6%95%B4%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) Effective January 1, 2020, the company adopted the new revenue standard, retrospectively adjusting opening balances of accounts receivable, inventories, advances from customers, contract liabilities, and retained earnings, with retained earnings decreasing by approximately RMB 44.21 million - The company first adopted the new revenue standard on **January 1, 2020**, and retrospectively adjusted its opening financial statements[90](index=90&type=chunk) Key Consolidated Balance Sheet Adjustments at Year-Beginning | Item | Before Adjustment (RMB) | After Adjustment (RMB) | Adjustment Amount (RMB) | | :--- | :--- | :--- | :--- | | Accounts Receivable | 726,775,476.02 | 649,266,923.72 | -77,508,552.30 | | Inventories | 52,705,318.57 | 86,007,708.54 | 33,302,389.97 | | Advances from Customers | 94,930,969.43 | 12,108,488.67 | -82,822,480.76 | | Contract Liabilities | 0 | 74,487,346.67 | 74,487,346.67 | | Retained Earnings | 1,094,494,803.56 | 1,050,288,641.23 | -44,206,162.33 | [Audit Report](index=31&type=section&id=%E4%B8%89%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This quarterly report remains unaudited - The company's third-quarter report is **unaudited**[109](index=109&type=chunk)