Financial Performance - The company's revenue for Q1 2022 was CNY 166,606,986.92, representing a 27.57% increase compared to CNY 130,599,275.73 in the same period last year[3]. - The net profit attributable to shareholders was a loss of CNY 6,455,764.90, an improvement of 41.75% from a loss of CNY 11,082,393.77 in the previous year[3]. - The company reported a net loss of CNY 12,256,730.35 for Q1 2022, compared to a net loss of CNY 21,561,947.07 in Q1 2021[18]. - The net profit for Q1 2022 was -6,390,822.18 CNY, an improvement from -11,388,585.24 CNY in Q1 2021, representing a 43.5% reduction in losses[19]. - Operating profit for Q1 2022 was -12,592,470.68 CNY, compared to -15,046,345.92 CNY in the same period last year, indicating a 16.3% improvement[19]. - The total comprehensive income for Q1 2022 was -6,768,780.71 CNY, compared to -11,681,871.41 CNY in Q1 2021, showing a 42.3% improvement[20]. Cash Flow and Assets - The net cash flow from operating activities was a negative CNY 115,189,203.88, which is an 8.92% increase in outflow compared to a negative CNY 105,757,453.10 in the same period last year[3]. - The company's cash and cash equivalents decreased to CNY 602,572,928.47 from CNY 720,262,648.65 at the beginning of the year, representing a decline of 16.4%[15]. - The cash flow from operating activities was -115,189,203.88 CNY, slightly worse than -105,757,453.10 CNY in the previous year[24]. - The cash and cash equivalents at the end of Q1 2022 were 596,806,723.36 CNY, compared to 346,864,524.50 CNY at the end of Q1 2021, an increase of 72%[24]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,059,459,135.55, a 1.01% increase from CNY 2,038,813,808.93 at the end of the previous year[3]. - The total liabilities increased to CNY 234,041,976.68 from CNY 206,627,869.35, marking an increase of 13.2%[17]. - The total equity attributable to shareholders was CNY 1,818,568,069.46, slightly up from CNY 1,813,891,902.40 at the beginning of the year[17]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 41,775[10]. - The top shareholder, Huang Yu, holds 30.31% of the shares, totaling 126,700,046 shares[10]. Operating Costs and Revenue - The company's operating costs rose by 42.32% to CNY 108,755,968.02, attributed to increased sales of smart terminal products[7]. - The total operating revenue for Q1 2022 was CNY 166,606,986.92, an increase of 27.6% compared to CNY 130,599,275.73 in the same period last year[18]. - The total operating costs for Q1 2022 were CNY 178,863,717.27, up 17.6% from CNY 152,161,222.80 in Q1 2021[18]. - The total operating expenses increased to 266,907,529.40 CNY from 243,520,411.56 CNY, a rise of 9.6%[23]. - Total revenue from operating activities was 151,718,325.52 CNY, up from 137,762,958.46 CNY in Q1 2021, reflecting a growth of 10.1%[23]. Research and Development - Research and development expenses decreased to 19,457,951.37 CNY from 25,950,216.02 CNY, a reduction of 25%[19]. Future Plans - The company plans to continue focusing on market expansion and new product development in the upcoming quarters[12].

Financial Performance - The company achieved operating revenue of 779.31 million yuan, a decrease of 13.26% compared to the same period last year[4]. - The net profit attributable to shareholders of the listed company was a loss of 48.87 million yuan, marking a shift from profit to loss year-on-year[4]. - The decline in revenue was primarily due to a significant drop in sales of USB Key and dynamic token products, alongside rising operating expenses[4]. - The net cash flow from operating activities was ¥8,917,580.37, down 82.28% from ¥50,338,161.99 in the previous year[25]. - The company reported a basic earnings per share of -¥0.12 for 2021, a drop of 180.00% from ¥0.15 in 2020[25]. - The company reported a net profit attributable to shareholders of approximately -¥11.08 million in the first quarter of 2021, indicating ongoing financial challenges[55]. Revenue Breakdown - USB Key products generated revenue of ¥296.57 million, accounting for 38.06% of total revenue, with a year-on-year decrease of 22.96%[53]. - Revenue from smart terminal systems reached ¥216.25 million, representing 27.75% of total revenue, and increased by 45.24% year-on-year[50]. - Chip products contributed ¥100.95 million to revenue, making up 12.95% of total revenue, with a year-on-year increase of 24.21%[50]. - OTP token products generated revenue of ¥39.46 million, accounting for 5.06% of total revenue, showing a significant decline of 68.53% year-on-year[51]. Market Strategy and Development - The company plans to maintain its existing product market while developing new products and expanding into other markets to cultivate new growth points[5]. - The company plans to expand its focus on next-generation security chips, devices, and systems while continuing to develop its core identity authentication business[34]. - The company aims to leverage its technological advantages to enhance its product offerings and market presence in the information security sector[39]. - The company is exploring potential acquisitions to enhance its technology portfolio, with a focus on cybersecurity firms[43]. - The company is focused on expanding its market presence and enhancing its product offerings, particularly in the field of digital security solutions[106]. Research and Development - The company is investing in R&D, with a budget increase of 30% to support the development of new technologies and products[43]. - The company has filed for 10 new patents in 2021, focusing on security technology and user authentication methods[48]. - The company has developed a compatible PIV fingerprint FIDO2 product, expanding its application scenarios and aiming for a broader market share[70]. - The company is focusing on the development of an industrial-grade high-performance 32-bit security master control chip, which has improved performance by over 100% compared to the previous generation[70]. Governance and Management - The company has established a governance structure that complies with relevant laws and regulations, ensuring independent operations in business, personnel, assets, and finance[99][100]. - The company held three shareholder meetings during the reporting period, with participation rates of 56.52%, 43.08%, and 55.78% respectively[102]. - The company experienced a change in management with the resignation of several key personnel, including the deputy general manager and independent directors, indicating potential shifts in strategic direction[105]. - The company has a strong leadership team with diverse backgrounds in technology and finance, which supports its growth strategy[108]. Employee and Compensation - The total remuneration for the board of directors, supervisors, and senior management in 2021 amounted to CNY 10.3943 million[114]. - Employee compensation accounted for 5.50% of the total operating costs in 2021, amounting to RMB 25.65 million, an increase of 0.34% from the previous year[128][129]. - The company approved a restricted stock incentive plan on April 14, 2021, to enhance employee motivation and retention[133]. - A total of 40 internal training sessions were organized, with 1,452 participants, to enhance employee skills and knowledge[130]. Legal and Compliance - There is an ongoing lawsuit regarding patent rights, with the company defending against claims made by Beijing Xinan Century Technology Co., Ltd.[159]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[145]. - The company has not faced any penalties or rectifications during the reporting period[162]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 20% to 1.8 billion yuan[43]. - The company plans to continue expanding into overseas markets as the international market is expected to recover post-pandemic[94]. - Future industry trends will be influenced by the implementation of the Data Security Law and the Personal Information Protection Law in China[91].

Financial Performance - Revenue for Q3 2021 was CNY 217,488,235.29, a decrease of 4.31% compared to the same period last year[3] - Net profit attributable to shareholders was a loss of CNY 12,248,328.06, a decline of 249.22% year-on-year[3] - Total operating revenue for Q3 2021 was ¥534,105,130.80, a decrease of 7.8% compared to ¥579,451,164.87 in the same period last year[18] - Net profit for Q3 2021 was a loss of ¥37,445,520.26, compared to a profit of ¥35,156,273.69 in Q3 2020, marking a significant decline[20] - Operating profit for the period was a loss of ¥52,910,912.89, contrasting with a profit of ¥30,674,722.26 in the previous year[18] - The company reported a total comprehensive loss of ¥40,074,002.18 for the quarter, compared to a comprehensive income of ¥23,378,600.62 in Q3 2020[20] - Basic earnings per share for Q3 2021 were -¥0.09, compared to ¥0.08 in the same period last year[20] Cash Flow and Assets - Cash flow from operating activities showed a net outflow of CNY 161,607,070.67 for the year-to-date, a decrease of 1.97%[3] - Cash flow from operating activities showed a net outflow of ¥161,607,070.67, slightly worse than the outflow of ¥158,489,791.27 in the same quarter last year[24] - The company's cash and cash equivalents as of September 30, 2021, amount to ¥702,292,921.61, a decrease from ¥773,993,305.64 at the end of 2020[15] - Cash and cash equivalents at the end of the period totaled ¥697,381,571.55, down from ¥766,760,020.94 at the beginning of the quarter[24] - Total assets at the end of Q3 2021 were CNY 2,015,580,009.78, down 1.62% from the end of the previous year[3] - Total assets amounted to approximately $2.05 billion, a decrease of $23.84 million compared to the previous period[28] - Current assets totaled approximately $1.62 billion, with a slight adjustment of -$193,860.49[27] - Total current assets decreased to ¥1,448,285,065.91 from ¥1,615,936,182.57 year-over-year[16] Liabilities and Equity - The total liabilities increased to ¥170,999,788.74 from ¥141,297,625.62 year-over-year[17] - Total liabilities reached approximately $141.30 million, an increase of $23.84 million[28] - The total equity attributable to the parent company is ¥1,827,022,567.87, down from ¥1,877,244,632.20 at the end of 2020[17] - Total equity stood at approximately $1.91 billion, unchanged from the previous period[29] Accounts and Expenses - Accounts receivable increased by 61.59% year-to-date, totaling CNY 166,687,367.56, indicating higher customer debts[7] - The company reported a total of 65,069,928.21 in accounts payable as of September 30, 2021, compared to 44,676,292.95 in the previous year[16] - The company has a total of 26,090,112.39 in payable employee compensation, an increase from 23,098,443.50 year-over-year[16] - Management expenses for the first nine months of 2021 were CNY 149,954,880.28, an increase of 47.21% year-on-year, primarily due to higher employee compensation[8] - The company experienced a significant increase in sales expenses, which rose to ¥75,888,790.82 from ¥61,327,987.35 year-over-year, reflecting a 23.9% increase[18] Other Income and Investments - Investment income for the first nine months of 2021 decreased by 69.20%, totaling CNY 4,832,675.57, attributed to reduced financial product returns[8] - Other income for the first nine months of 2021 was CNY 3,729,650.91, a decrease of 38.59% year-on-year, mainly due to reduced government subsidies[9] Shareholder Information - The total number of common shareholders at the end of the reporting period is 37,918[11] - The largest shareholder, Huang Yu, holds 30.31% of the shares, totaling 126,700,046 shares[11] Deferred Tax and Assets - The company reported a significant increase in deferred tax assets by 317.37%, reaching CNY 18,584,563.19, due to the recognition of deductible losses[7] Research and Development - Research and development expenses were ¥67,361,578.34, a slight decrease from ¥68,371,440.70 in the previous year[18] Audit and Standards - The company has not undergone an audit for the third quarter report[30] - The report indicates the implementation of new leasing standards affecting prior comparative data[30]

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 316,616,895.51, a decrease of 10.10% compared to CNY 352,177,301.54 in the same period last year[24]. - The net profit attributable to shareholders was a loss of CNY 25,982,799.98, representing a decline of 201.58% from a profit of CNY 25,579,290.78 in the previous year[24]. - The net cash flow from operating activities was a negative CNY 171,545,896.09, worsening by 45.27% compared to a negative CNY 118,087,007.45 in the same period last year[24]. - The total assets at the end of the reporting period were CNY 2,034,339,248.34, a decrease of 0.70% from CNY 2,048,682,223.97 at the end of the previous year[24]. - The net assets attributable to shareholders decreased by 1.98% to CNY 1,840,000,006.81 from CNY 1,877,244,632.20 at the end of the previous year[24]. - The company reported a total of CNY 347,995,892.81 in trading financial assets, reflecting a 3.33% increase due to additional investments in financial products during the period[57]. - The company reported a total revenue of 190.78 million yuan for the first half of 2021, with a net profit of 49.8 million yuan[72]. - The company reported a total of CNY 54,134,379.60 in contract liabilities, which represents 2.66% of total assets[57]. - The company reported a total of 418,044,000 shares, with 180,272,350 shares subject to restrictions, representing 43.12% of total shares before the change[122]. Research and Development - The company plans to enhance research and development efforts to address increasing competition, despite the associated risks and rising costs[6]. - The company aims to conduct detailed market research prior to R&D activities to improve market judgment capabilities and manage development efficiency[6]. - Research and development expenses increased by 7.10% to CNY 43.69 million, primarily due to higher material and service costs[45]. - The company plans to enhance R&D and industrialization in the information security field, focusing on new scenarios such as 5G and blockchain[33]. - The company reported a strong focus on R&D, with numerous patents filed in 2020 and 2021, indicating a commitment to innovation and market leadership[38]. Market and Product Performance - The company faces risks related to market saturation for its USB Key and OTP products, leading to a decline in demand and pricing pressure[5]. - The company's USB Key products generated revenue of 125.94 million yuan, accounting for 39.78% of total revenue, a year-on-year decrease of 9.58%[31]. - Revenue from smart terminal systems reached 77.70 million yuan, representing 24.54% of total revenue, with a year-on-year increase of 48.46%[31]. - Chip products from the subsidiary Hongsi Electronics generated revenue of 42.02 million yuan, accounting for 13.27% of total revenue, an increase of 14.25% year-on-year[32]. - The revenue from USBKey and dynamic token products decreased, contributing to a gross profit decline of CNY 19.68 million[47]. - The smart terminal revenue grew by 48.46% year-on-year, indicating a shift towards new business growth[47]. Assets and Liabilities - Cash and cash equivalents decreased by 19.56% to CNY 370,649,473.55, primarily due to reduced net cash flow from operating activities and increased investment in financial products[57]. - Accounts receivable increased by 2.35% to CNY 150,285,229.02, mainly due to an increase in receivables from bank clients[57]. - Inventory rose by 4.24% to CNY 442,124,623.61, attributed to an increase in both finished goods and goods in transit[57]. - The company's total liabilities increased from CNY 141,297,625.62 to CNY 177,153,355.63, reflecting an increase of approximately 25.4%[143]. - The company's equity attributable to shareholders decreased from CNY 1,877,244,632.20 to CNY 1,840,000,006.81, a decline of about 2%[144]. Shareholder Information - The largest shareholder, Huang Yu, holds 30.31% of the shares, totaling 126,700,046 shares, after a decrease of 4,434,200 shares[127]. - The second-largest shareholder, Li Wei, holds 12.70% of the shares, totaling 53,084,761 shares, with a decrease of 2,124,650 shares[127]. - The company has 44,267 common shareholders at the end of the reporting period[127]. - A total of 4,434,200 restricted shares were released during the reporting period, reducing the restricted shares to 175,838,150, which is 42.06% of total shares[122]. Corporate Governance and Compliance - The company will not distribute cash dividends or issue bonus shares for the reporting period[9]. - The semi-annual financial report was not audited[101]. - The company did not experience any bankruptcy reorganization during the reporting period[103]. - There were no significant litigation or arbitration matters during the reporting period[104]. - The company reported no penalties or rectification situations during the reporting period[106]. - There were no related party transactions during the reporting period[107]. Strategic Initiatives - The company plans to maintain its existing product market while developing new products and expanding into new markets to foster growth[78]. - The company is actively pursuing new strategies for market expansion, particularly in the fields of digital security and smart devices[39]. - The company aims to expand its market presence by leveraging its patented technologies in various applications, including mobile devices and cloud services[39]. - The company plans to continue investing in R&D to maintain its competitive edge and drive future growth through innovative product offerings[39].

Financial Performance - The company's revenue for Q1 2021 was ¥130,599,275.73, representing an increase of 11.25% compared to ¥117,394,865.24 in the same period last year[7]. - The net profit attributable to shareholders was a loss of ¥11,082,393.77, a significant decrease of 3,418.02% from a profit of ¥334,006.64 in the previous year[7]. - The net cash flow from operating activities was a negative ¥109,018,080.43, worsening by 44.96% compared to a negative ¥75,205,674.24 in the same period last year[7]. - Operating revenue for the reporting period was ¥130,599,300, an increase of 11.25% year-over-year[28]. - Total profit for the reporting period was -¥12,771,300, a decrease of 2221.57% year-over-year[28]. - The net profit for Q1 2021 was a loss of ¥11,388,585.24, compared to a profit of ¥539,675.48 in the same period last year, marking a significant decline[50]. - Net profit for the current period was a loss of ¥10,294,071.37, compared to a loss of ¥4,333,906.54 in the previous period, indicating a worsening of approximately 137%[54]. - Total comprehensive income for the current period was a loss of ¥10,294,071.37, compared to a loss of ¥4,489,122.26 in the previous period, reflecting a significant increase in losses[55]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,070,354,431.32, an increase of 1.06% from ¥2,048,682,223.97 at the end of the previous year[7]. - Total liabilities rose to ¥174,651,705.15 from ¥141,297,625.62 at the end of 2020[42]. - The total assets as of January 1, 2021, were adjusted to 2,072,521,092.60 CNY, an increase of 23,838,868.63 CNY due to the new leasing standards[65]. - The total liabilities increased from 141,297,625.62 CNY to 165,136,494.25 CNY, primarily due to the recognition of lease liabilities[66]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 50,509[11]. - The top shareholder, Huang Yu, holds 30.31% of the shares, totaling 126,700,046 shares[11]. - The company did not engage in any repurchase transactions among the top shareholders during the reporting period[12]. Cash Flow and Investments - Cash and cash equivalents as of March 31, 2021, decreased by 54.25% to ¥354,097,809.35, primarily due to the purchase of financial products[18]. - The company received cash from investment recoveries amounting to ¥370,000,000.00, down from ¥698,979,000.00 in the previous period, indicating a decrease of approximately 47%[58]. - The company’s investment cash outflow totaled 687,395,412.75 CNY in Q1 2021, compared to 562,307,031.94 CNY in Q1 2020, indicating increased investment activity[62]. Expenses - Sales expenses for Q1 2021 were ¥23,176,467.74, an increase of 36.33% compared to the same period last year[21]. - Management expenses for Q1 2021 were ¥29,322,814.32, an increase of 50.59% year-over-year[21]. - Research and development expenses for Q1 2021 were ¥25,950,216.02, compared to ¥24,491,796.35 in the previous period, showing an increase of about 6%[49]. - The company reported a significant increase in sales expenses to ¥18,423,604.37 from ¥13,820,161.41, an increase of approximately 33%[53]. Patents and Innovations - The company obtained 45 domestic patents during the reporting period, including 40 invention patents[28]. Cash Management - Cash and cash equivalents decreased to ¥354,097,809.35 from ¥773,993,305.64 at the end of 2020[40]. - Cash flow from operating activities showed a net outflow of ¥109,018,080.43, compared to a net outflow of ¥75,205,674.24 in the previous period, representing an increase in cash burn of approximately 45%[58]. - The total cash and cash equivalents at the end of Q1 2021 were 138,574,951.18 CNY, down from 392,487,778.94 CNY at the end of Q1 2020, reflecting a decrease of approximately 64.7%[62]. Audit and Compliance - The company did not conduct an audit for the Q1 2021 report, which may affect the reliability of the financial data presented[70]. - There were no violations regarding external guarantees during the reporting period[34].

Financial Performance - The company's operating revenue for 2020 was ¥898,489,702.93, a decrease of 4.38% compared to ¥939,620,454.48 in 2019[19]. - The net profit attributable to shareholders for 2020 was ¥62,699,489.31, down 30.51% from ¥90,234,261.13 in 2019[19]. - The net cash flow from operating activities decreased by 57.75% to ¥50,338,161.99 in 2020 from ¥119,156,859.73 in 2019[19]. - The basic earnings per share for 2020 was ¥0.15, a decline of 31.82% compared to ¥0.22 in 2019[19]. - The total assets at the end of 2020 were ¥2,048,682,223.97, an increase of 2.19% from ¥2,004,795,085.72 at the end of 2019[19]. - The company reported a significant reduction in non-recurring gains, impacting overall profitability[29]. - The total revenue for 2020 was ¥898,489,702.93, a decrease of 4.38% compared to ¥939,620,454.48 in 2019[53]. - Domestic revenue was ¥735,089,961.55, down 6.13% from ¥783,113,374.69 in 2019, while international revenue rose by 4.40% to ¥163,399,741.38[53]. Research and Development - The company aims to increase R&D investment to enhance innovation capabilities, despite rising labor costs and uncertainties in R&D activities[6]. - The overall R&D expenses significantly impact the company's profitability due to the increasing costs associated with R&D activities[6]. - The company plans to enhance its R&D efforts in the information security field, targeting new scenarios such as 5G, blockchain, and digital currency[33]. - The R&D budget has increased by 30%, reflecting the company's commitment to developing new technologies[39]. - The company has filed for 30 new patents related to secure transaction methods, indicating a strong focus on innovation[40]. - The company has a total of 1,381 authorized patents, including 1,050 invention patents, showcasing its strong technological capabilities[36]. - The company's R&D investment in 2020 amounted to ¥95,512,730.98, representing 10.63% of total revenue, an increase from 9.73% in 2019[73]. Market Strategy and Product Development - The company is focusing on maintaining its existing product market while developing new products and exploring new markets to cultivate new growth points[5]. - The company aims to expand its market presence through innovative product offerings and strategic partnerships[30]. - The company is committed to exploring new strategies for market expansion and potential mergers and acquisitions to enhance growth[5]. - The company has established a marketing service system globally, with a focus on sectors such as finance, government, and telecommunications[48]. - The company is actively exploring new strategies for market expansion and product development[131]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2021[40]. - The company successfully entered the national government service platform with its dynamic password authentication system in July 2020[30]. Financial Management and Investments - The company reported a total investment of 317,289,120.00, with a fair value change loss of -938,004.71, and a total income from investments of 20,964,381.00[88]. - The company reported a total investment of 14,000 million in low-risk financial instruments, achieving a yield of 4.03%[131]. - The company has maintained a low-risk investment strategy, with a focus on fixed-income products and market stability[140]. - The company achieved a return of 86.01 million from its investments in low-risk assets[133]. - The company plans to expand its investment portfolio into both domestic and international markets, focusing on bonds and currency markets[131]. - The company has allocated 10,000 million in low-risk investments with a floating interest rate of 3.45%[136]. - The company reported a return of 130.25 million from its self-owned funds in the market tools segment[136]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of 0.2 yuan per 10 shares (including tax) based on a total of 418,044,000 shares[7]. - The cash dividend for the year was set at 0.2 yuan per 10 shares, totaling 8,360,880.00 yuan, representing 100% of the profit distribution[99]. - The total cash dividend for 2020 represented 13.33% of the net profit attributable to the shareholders of the listed company[104]. - The total number of shareholders at the end of the reporting period was 46,173, a decrease from 50,509 at the end of the previous month[152]. - The company has a stable profit distribution policy to ensure reasonable returns to shareholders, adhering to relevant laws and regulations for information disclosure[140]. Operational Challenges - The demand for USB Key and OTP products from banks is declining due to market saturation and intense competition, impacting the company's performance[5]. - The company has faced risks related to goodwill impairment, which could adversely affect its operating performance if the recoverable amount falls below the book value[7]. - The company's fixed assets decreased by 21.95% year-over-year, attributed to normal depreciation[34]. - The company reported a significant decrease in cash flow from operating activities, primarily due to a 14.72% increase in cash paid for goods and services[75]. Corporate Governance and Compliance - The board of directors has ensured the accuracy and completeness of the annual report, taking legal responsibility for any misstatements or omissions[3]. - The company has established a complete and independent governance structure, complying with relevant laws and regulations, with no reported violations[184]. - The company maintains independence in business, personnel, assets, institutions, and finance, ensuring no reliance on the controlling shareholder for operations[185][186]. - The company did not experience any bankruptcy reorganization during the reporting period[112]. - There were no significant penalties or rectification measures during the reporting period[116]. Employee Management - The total number of employees in the company is 967, with 666 in the parent company and 301 in major subsidiaries[178]. - The total employee compensation for 2020 amounted to 27.8993 million yuan, accounting for 5.16% of the total operating costs, an increase of 0.22% from the previous year[180]. - The company has implemented a performance management system to ensure fair and competitive compensation for employees[180]. - The company organized 43 internal training sessions with a total of 1,560 participants to enhance business knowledge and skills[181]. - The company has a total of 90 employees with a master's degree or higher, contributing to a skilled workforce[179].

Financial Performance - Operating revenue for the reporting period was CNY 227,273,863.33, an increase of 9.03% year-on-year [7]. - Net profit attributable to shareholders was CNY 8,208,489.02, a decrease of 54.94% compared to the same period last year [7]. - Net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 3,101,133.56, a decrease of 66.54% year-on-year [7]. - Basic earnings per share were CNY 0.02, a decrease of 50.00% year-on-year [7]. - The weighted average return on equity was 0.45%, a decrease of 0.59% compared to the previous year [7]. - The net profit for the third quarter was CNY 8,420,152.13, compared to CNY 18,452,251.44 in the same period last year, representing a decrease of approximately 54.4% [36]. - The company reported a total profit of CNY 8,564,843.03 for the third quarter, down from CNY 19,540,673.98 in the same period last year [36]. - The total comprehensive income for the quarter was CNY 23,378,600.62, down from CNY 33,927,920.65, a decrease of 31.0% [45]. Cash Flow - The net cash flow from operating activities was CNY -40,402,783.82, a decrease of 370.55% compared to the same period last year [7]. - Net cash flow from operating activities decreased by 99.08% to -¥158,489,791.27, primarily due to increased cash payments for goods and services [16]. - The cash flow from operating activities for the year-to-date period was -186,820,466.66 CNY, worsening from -75,354,147.40 CNY in the previous year [54]. - The net cash flow from investment activities was 46,339,579.08 CNY, a significant improvement from -197,517,977.93 CNY in the same quarter last year [53]. - The net increase in cash and cash equivalents for Q3 2020 was -122,596,058.37 CNY, compared to -295,755,447.30 CNY in Q3 2019, indicating an improvement in cash management [53]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,998,817,304.67, a decrease of 0.30% compared to the end of the previous year [7]. - Cash and cash equivalents decreased by 24.81% to ¥378,206,055.93 compared to the beginning of the year, primarily due to increased cash payments for goods and employee compensation, as well as dividend payments [15]. - Trade receivables increased by 36.18% to ¥168,818,037.99, mainly due to an increase in customer debts [15]. - Inventory rose by 26.60% to ¥438,154,962.63, attributed to increased stockpiling [15]. - Other current assets surged by 293.31% to ¥37,682,000.24, primarily due to the purchase of large certificates of deposit maturing within one year [15]. - The total liabilities decreased to CNY 126,563,245.20 from CNY 128,621,691.36 in the previous period [32]. - Deferred tax assets increased by 35.32% to ¥4,790,682.23, primarily due to the recognition of deductible losses [15]. Shareholder Information - The company reported a total of 49,693 common shareholders at the end of the reporting period [10]. - The top shareholder, Huang Yu, holds 30.31% of the shares, totaling 126,700,046 shares [10]. - The company did not engage in any repurchase transactions during the reporting period [12]. Research and Development - Research and development expenses for Q3 2020 were CNY 27,580,031.13, compared to CNY 24,352,999.42 in the same period last year, reflecting a growth of approximately 9.1% [35]. - Research and development expenses for the quarter were CNY 48,730,135.59, down from CNY 52,852,895.85, a decrease of 7.4% [47].

Financial Performance - The company's operating revenue for the reporting period was ¥352,177,301.54, a decrease of 8.96% compared to the same period last year [22]. - Net profit attributable to shareholders increased by 126.87% to ¥25,579,290.78, while the net profit after deducting non-recurring gains and losses rose by 271.92% to ¥12,470,782.25 [22]. - The basic and diluted earnings per share both reached ¥0.06, representing a 100% increase year-on-year [22]. - The company's revenue for the reporting period was CNY 352,177,301.54, representing a decrease of 8.96% compared to the previous year, primarily due to a decline in USB key and dynamic token sales [47]. - The company reported a net profit of 13,508,762.68 CNY from its subsidiary Beijing Hongsi Electronics Technology Co., Ltd., with an operating income of 48,825,245.6 CNY [78]. - The company reported a net loss of ¥20,902,200 for the current period, which is a significant decrease compared to the previous period's loss of ¥8,646,286.95 [172]. Market Conditions - The company reported a significant risk of market saturation for USB Key and OTP products, with declining demand from banks and a competitive pricing environment impacting overall performance [5]. - The demand for USB Key and OTP online banking products from banks is gradually declining, significantly impacting the company's operating performance due to intense market competition and falling prices [80]. - The company aims to maintain its existing product market while exploring new product development and market expansion to create new growth points [5]. - The company plans to strengthen its position in identity authentication products across various sectors, including banking, insurance, and government, while expanding into international markets [33]. Research and Development - The company plans to increase R&D investment to enhance innovation capabilities, despite rising costs and uncertainties associated with R&D activities [6]. - The company has a strong focus on research and development, with a significant portion of its workforce being highly educated, including master's and doctoral graduates [35]. - The company is investing in R&D, allocating 10% of its revenue towards new technology development [200]. Assets and Liabilities - As of the end of the reporting period, the company's goodwill amounted to CNY 102.29 million, which may require impairment if future economic conditions worsen [8]. - Significant changes in major assets include a 9.63% decrease in equity assets and a 12.98% decrease in fixed assets due to depreciation [34]. - Cash and cash equivalents decreased by 34.02%, primarily due to increased cash payments for goods and employee compensation [34]. - Accounts receivable increased by 31.41%, mainly due to higher receivables from banking clients [34]. - Total liabilities decreased from ¥157,519,802.29 to ¥150,262,622.57, a reduction of about 4.0% [140]. Investment Strategy - The company is focusing on low-risk financial instruments, maintaining a strategy of stable returns [69]. - The company plans to expand its investment in fixed-income products, with a total of 5,100 million allocated at a yield of 3.96% [70]. - The company has reported a consistent investment strategy with a focus on low-risk assets [69]. - The company is exploring new investment opportunities in the derivatives market [70]. Subsidiaries and Joint Ventures - The company has five subsidiaries included in the consolidated financial statements for the reporting period [176]. - The company confirmed its commitment to sustainability, planning to reduce carbon emissions by 30% over the next five years [199]. - The joint venture arrangements are expected to generate an additional $30 million in revenue from shared assets [200]. Shareholder Information - No cash dividends or stock bonuses will be distributed to shareholders for this period [9]. - The total number of common shareholders at the end of the reporting period is 36,874 [118]. - The largest shareholder, Huang Yu, holds 30.94% of the shares, totaling 129,359,446 shares [118]. Future Outlook - The company provided a positive outlook for the next quarter, projecting a revenue growth of 20% [199]. - New product launches are expected to contribute an additional $50 million in revenue by the end of the fiscal year [199]. - The company plans to continue focusing on market expansion and new product development to drive future growth [146].

Financial Performance - Total revenue for Q1 2020 was ¥117,394,865.24, a decrease of 38.27% compared to ¥190,161,641.52 in the same period last year[7] - Net profit attributable to shareholders was ¥334,006.64, down 84.38% from ¥2,137,730.41 year-on-year[7] - Basic earnings per share decreased by 84.31% to ¥0.0008 from ¥0.0051 in the previous year[7] - Gross profit for Q1 2020 was CNY 52.41 million, reflecting a decrease of 46.05% year-on-year due to reduced demand from major banking clients and the impact of COVID-19[23] - Net profit attributable to the parent company for Q1 2020 was CNY 0.33 million, down 84.38% year-on-year[30] - Net profit for Q1 2020 was CNY 539,675.48, compared to CNY 2,422,599.16 in the same period last year, reflecting a significant decline[57] - The company reported a comprehensive loss of CNY 12,840,284.53 for Q1 2020, contrasting with a comprehensive income of CNY 5,508,588.32 in the previous period[58] - The net profit for the first quarter of 2020 was -4,333,906.54 CNY, compared to -3,476,907.43 CNY in the same period last year, indicating a decline of approximately 24.6%[61] - Operating profit for the first quarter was -5,475,091.63 CNY, an improvement from -6,486,997.22 CNY year-over-year, showing a reduction in losses of about 15.6%[61] - Total comprehensive income for the first quarter was -4,489,122.26 CNY, compared to -3,529,864.83 CNY in the previous year, reflecting a decline of approximately 27.2%[62] Cash Flow and Liquidity - The net cash flow from operating activities improved by 28.29%, reaching -¥75,205,674.24 compared to -¥104,878,965.05 in the same period last year[7] - Cash flow from operating activities generated a net outflow of -75,205,674.24 CNY, an improvement from -104,878,965.05 CNY in the same quarter last year, indicating a reduction in cash burn of about 28.5%[65] - Cash inflow from investment activities was 706,692,868.71 CNY, compared to 431,899,211.00 CNY in the previous year, representing an increase of approximately 63.6%[65] - The total cash outflow from operating activities was 197,534,991.55 CNY, down from 257,931,577.54 CNY in the previous year, indicating a decrease of about 23.5%[65] - The cash and cash equivalents at the end of the period increased to 503,377,249.78 CNY from 335,615,332.43 CNY, marking a growth of about 49.9%[66] - The company reported a cash increase of 20,569,481.98 CNY during the quarter, contrasting with a decrease of -282,176,528.30 CNY in the previous year[69] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,982,156,407.41, a decrease of 1.13% from ¥2,004,795,085.72 at the end of the previous year[7] - The company's total assets amounted to CNY 1,833,802,532.43, slightly down from CNY 1,835,154,771.97 in the previous period[53] - Total liabilities increased to CNY 131,758,574.08 from CNY 128,621,691.36 in the previous period[53] - The total current assets decreased to ¥1,535,972,922.15 from ¥1,763,559,339.39 as of December 31, 2019, indicating a decline in liquidity[47] - The total liabilities decreased to ¥147,721,408.51 from ¥157,519,802.29, reflecting improved financial stability[49] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 32,241[11] - The top shareholder, Huang Yu, holds 30.94% of the shares, totaling 129,359,446 shares[11] Research and Development - The company obtained 22 domestic patents during the reporting period, including 13 invention patents[30] - Research and development expenses for Q1 2020 were CNY 24,491,796.35, compared to CNY 23,671,952.41 in the previous period, indicating an increase in investment in R&D[56] - The company plans to increase R&D investment to enhance innovation capabilities despite rising costs and uncertainties[38] Market and Product Development - The company reported a decrease in demand for USB Key and OTP products due to market saturation, impacting overall performance[38] - The company aims to maintain existing product markets while exploring new product development and market expansion[38] - The proportion of total revenue from the top five customers decreased by 12.65% year-on-year, accounting for 33.90% of total revenue in Q1 2020[36] - The company did not disclose any new product developments or market expansion strategies in the current report[69] Tax and Other Income - The company received tax refunds of CNY 9.34 million in Q1 2020, an increase of 55.22% compared to the previous year, primarily due to increased software tax refunds[27] - The company reported non-operating income of ¥1,333,432.80 from government subsidies closely related to business[8] - Other income for Q1 2020 was CNY 5,586,162.16, significantly higher than CNY 321,283.38 in the previous period[56] Accounting and Reporting - The first quarter report was not audited, which may affect the reliability of the financial data presented[71] - The company did not apply new revenue and leasing standards for the first quarter of 2020, indicating stability in accounting practices[70]

Financial Performance - The company's operating revenue for 2019 was ¥939,620,454.48, a decrease of 12.33% compared to ¥1,071,782,404.96 in 2018[20]. - The net profit attributable to shareholders for 2019 was ¥90,234,261.13, down 32.29% from ¥133,273,482.46 in 2018[20]. - The net profit after deducting non-recurring gains and losses was ¥47,280,754.19, a decline of 50.05% from ¥94,662,557.38 in 2018[20]. - The net cash flow from operating activities increased significantly to ¥119,156,859.73, up 1,361.25% from ¥8,154,433.36 in 2018[20]. - The total assets at the end of 2019 were ¥2,004,795,085.72, a slight decrease of 0.39% from ¥2,012,625,462.11 at the end of 2018[20]. - The total equity attributable to shareholders increased by 4.73% to ¥1,834,141,989.69 at the end of 2019, compared to ¥1,751,262,705.75 at the end of 2018[20]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the year, representing a growth of 15% year-over-year[41]. - The gross margin improved to 45%, up from 42% in the previous year, indicating better cost management[42]. - The company achieved operating revenue of CNY 939.62 million in 2019, a decrease of 12.33% compared to the previous year[50]. - Net profit attributable to shareholders was CNY 90.23 million, down 32.29% year-on-year, primarily due to a significant decline in demand from major banking clients[50]. Product Performance - The company's USB Key products generated revenue of ¥46,110.29 million, accounting for 49.07% of total revenue, a year-on-year decrease of 19.54%[31]. - OTP dynamic token products generated revenue of 192.66 million CNY, accounting for 20.50% of total revenue, a year-on-year decrease of 34.01%[32]. - Chip products revenue reached 96.57 million CNY, representing 10.28% of total revenue, with a year-on-year growth of 36.30%[32]. - Smart terminal systems generated revenue of 53.72 million CNY, making up 5.72% of total revenue[32]. - Encryption lock products revenue was 34.60 million CNY, accounting for 3.68% of total revenue, a year-on-year decrease of 19.40%[32]. - Card products revenue was 30.25 million CNY, representing 3.22% of total revenue, with a year-on-year increase of 7.23%[33]. - The company's revenue from chip products increased by 36.30% to CNY 96.57 million, reflecting growth in this segment[58]. - Revenue from dynamic tokens was CNY 192.66 million, making up 20.50% of total revenue, with a decline of 34.01%[58]. - Revenue from USB Key products was CNY 461.10 million, accounting for 49.07% of total revenue, representing a 19.54% decrease[58]. Research and Development - The company aims to increase R&D investment to enhance innovation capabilities, despite rising labor costs and uncertainties in R&D activities[6]. - The company emphasizes the importance of detailed market research before R&D to improve market judgment capabilities[6]. - The company is committed to strict management of development progress and effectiveness during the R&D process to maximize efficiency[6]. - The company continues to focus on research and development in information security devices and solutions, maintaining a complete industry chain from chip design to product sales[31]. - The company has filed multiple patents related to security input methods, blockchain technology, and data transmission, with several patents granted in 2019[43][44][45][46][47]. - The company completed three major R&D projects, including a Bluetooth fingerprint access control system, a cloud speaker IoT system, and a unified identity authentication platform, with a total of 3 patents applied for[72]. - The company is focusing on enhancing its R&D capabilities, with a budget increase of 20% for the upcoming fiscal year[45]. Market Strategy - The company is focusing on maintaining its existing product market while developing new products and exploring new markets to create new growth points[5]. - The company has established a marketing service system globally, with a focus on sectors such as finance, government, and telecommunications[31]. - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[41]. - A strategic acquisition of a technology firm was announced, aimed at enhancing R&D capabilities and product offerings[42]. - The company plans to explore potential acquisitions to bolster its technology portfolio, with a target of completing at least one acquisition by the end of 2020[45]. - The company plans to enhance market share in existing USB Key and OTP product areas to mitigate the impact of price reductions[106]. - The company is actively exploring the application of security chips in various fields, including IoT, smart transportation, and public safety[106]. - The company intends to expand its product development and market outreach in response to the growing demand for information security solutions[109]. Legal and Compliance - The company is involved in a lawsuit against Beijing Xinan Century Technology Co., Ltd. and Wuhan Xinan Luojia Technology Co., Ltd. regarding the infringement of its utility model patent, with a claim for 5 million yuan in damages[127]. - In a separate case, the company won a judgment against the same defendants, ordering them to pay 750,000 yuan for economic losses and reasonable expenses incurred to stop the infringement[128]. - The company has filed an administrative lawsuit against the Patent Reexamination Board regarding the invalidation of its patent, seeking to overturn the decision[129]. - The company has reached a settlement in a shareholder equity transfer dispute, resulting in the recovery of 79,708,595.23 yuan in capital from the defendant[129]. - The company is currently appealing a decision from the Beijing Intellectual Property Court regarding a patent invalidation case, with the case still pending[129]. - The company has been actively involved in patent litigation to protect its intellectual property rights, reflecting its commitment to innovation and market position[128]. - The company has engaged in multiple legal proceedings, highlighting the competitive nature of its industry and the importance of safeguarding proprietary technology[129]. Shareholder Information - The total number of shares before the change was 418,044,000, with 48.98% being restricted shares and 51.02% being unrestricted shares[160]. - The number of restricted shares decreased by 5,982,934, resulting in a total of 198,794,106 restricted shares, which is 47.55% of the total[160]. - The number of unrestricted shares increased by 5,982,934, leading to a total of 219,249,834 unrestricted shares, which is 52.45% of the total[160]. - Huang Yu holds 30.94% of the shares, totaling 129,359,446 shares, with 100,019,584 shares under lock-up[166]. - Li Wei holds 13.38% of the shares, totaling 55,917,628 shares, with 41,938,221 shares under lock-up[166]. - Lu Zhou holds 12.59% of the shares, totaling 52,634,756 shares, with 39,476,067 shares under lock-up[166]. - The company has a total of 36,026 shareholders at the end of the reporting period[166]. - The top 10 unrestricted shareholders include Huang Yu with 29,339,862 shares, Li Wei with 13,979,407 shares, and Lu Zhou with 13,158,689 shares[167]. Corporate Governance - The company has established a complete governance structure, including a board of directors, supervisory board, and management team, in compliance with relevant laws and regulations[198]. - There were no significant discrepancies between the company's governance practices and the regulatory requirements set by the China Securities Regulatory Commission[199]. - The company maintains independence in business operations, personnel management, asset control, and organizational structure from its controlling shareholders[200]. - The total remuneration for the board of directors, supervisors, and senior management in 2019 was CNY 8.55 million[190]. - The company employed a total of 932 staff members, with 444 being technical personnel, representing 47.7% of the workforce[192]. - Employee compensation accounted for CNY 28.63 million in operating costs, which is 4.94% of the total operating costs for the year[193]. - The number of core technical personnel increased from 104 in 2018 to 119 in 2019, representing 12.77% of the total workforce[194]. - The company conducted training for 1,722 person-times to enhance employee skills and knowledge[195].