Financial Performance - Operating revenue for the period was CNY 208,460,318.01, a decline of 20.28% year-on-year[7] - Net profit attributable to shareholders decreased by 54.96% to CNY 18,218,393.54 compared to the same period last year[7] - The net profit after deducting non-recurring gains and losses dropped by 60.04% to CNY 9,266,872.91[7] - Basic earnings per share fell by 60.00% to CNY 0.04[7] - The weighted average return on equity was 1.04%, down by 1.35% from the previous year[7] - The company reported a net profit of CNY 6,277,700.90 for Q3 2019, an increase from CNY 5,461,107.27 in the same period last year[37] - The net profit for the third quarter was CNY 18,452,251.44, down 54.8% from CNY 40,798,228.69 year-over-year[39] - The company's operating profit was CNY 15,544,476.12, a decline of 50% from CNY 31,100,572.85 in the previous year[39] - The total profit for the third quarter was CNY 19,540,673.98, down 56.1% from CNY 44,518,754.08 year-over-year[39] - The total comprehensive income for the third quarter was CNY 17,117,750.08, down 59.9% from CNY 42,627,029.34 year-over-year[39] Assets and Liabilities - Total assets decreased by 5.35% to CNY 1,905,017,853.88 compared to the end of the previous year[7] - The total assets as of September 30, 2019, were ¥1,905,017,853.88, down from ¥2,012,625,462.11 at the end of 2018[28] - The company's total assets as of September 30, 2019, were CNY 1,779,345,530.73, down from CNY 1,921,957,234.71 at the end of 2018[33] - Total liabilities decreased to CNY 108,771,441.60 in Q3 2019 from CNY 232,271,262.59 in the same period last year, representing a decline of 53.1%[34] - The company's total equity as of September 30, 2019, was CNY 1,670,574,089.13, slightly down from CNY 1,689,685,972.12 year-over-year[35] - Total liabilities reached CNY 250,763,144.83, with current liabilities at CNY 238,836,801.81 and non-current liabilities at CNY 11,926,343.02[64] - Total equity reached CNY 1,689,685,972.12, including retained earnings of CNY 796,434,134.94[68] Cash Flow - Cash flow from operating activities showed a net outflow of CNY 79,610,726.72, an increase of 67.14% compared to the previous year[7] - The net cash flow from operating activities for the first nine months of 2019 was -¥79,610,726.72, an increase of 67.14% compared to the same period last year, due to reduced cash payments for goods and services[20] - The cash flow from operating activities was CNY 567.94 million, down from CNY 656.75 million in the previous period, reflecting a decrease of about 13.5%[53] - The company reported a decrease in cash received from tax refunds to 18,696,305.68 CNY from 24,161,995.95 CNY[54] - The cash flow from investment activities showed a significant decline, with net cash flow dropping to -178,255,568.38 CNY from a positive 57,547,352.13 CNY in the previous period[58] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 34,808[11] - The top shareholder, Huang Yu, holds 30.94% of the shares, totaling 129,359,446 shares[11] Inventory and Receivables - Accounts receivable increased by 97.64% to ¥192,189,814.04, attributed to an increase in customer debts[18] - Prepayments rose by 108.12% to ¥27,394,433.25, mainly due to increased advance payments to suppliers[18] - Inventory decreased by 11.19% to ¥393,285,853.60, reflecting a reduction in stockpiling[18] - Other current assets increased by 22.09% to ¥671,182,986.60, primarily due to increased purchases of financial products[18] - Accounts receivable increased significantly to CNY 142,974,462.07 from CNY 50,954,052.29, indicating a growth of 179.5% year-over-year[32] - Inventory decreased to CNY 345,471,000.35 from CNY 416,051,037.51, a reduction of 17% compared to the previous year[32] Expenses - Management expenses for the first nine months of 2019 amounted to ¥88,819,299.31, an increase of 41.62% year-on-year, mainly due to higher salaries[19] - Research and development expenses for Q3 2019 amounted to CNY 24,352,999.42, a decrease of 26.2% compared to CNY 32,994,891.12 in the previous year[37] - Research and development expenses for the quarter were CNY 19,202,653.93, a decrease of 34.7% from CNY 29,467,586.09 in the same quarter last year[41] - The company incurred credit impairment losses of CNY 5.40 million during the quarter[46] Other Financial Information - The company received government subsidies amounting to CNY 10,028,998.38 during the reporting period[8] - The company reported a significant decrease in income tax expenses by 86.59% to ¥1,642,224.48 for the first nine months of 2019, due to a reduction in taxable income[19] - The company reported other income of CNY 12.03 million, down from CNY 15.89 million in the previous year, a decline of approximately 24.0%[50] - The company experienced a foreign exchange loss of CNY -3,004,500.00 in other comprehensive income[39] - The company has implemented new financial instrument standards, affecting the classification and measurement of financial assets[64] - The company adopted the new financial instruments standard, changing the impairment loss provision method from "incurred loss" to "expected credit loss"[68] - The third-quarter report was not audited[69]

Business Performance - The company's main business has seen a decline due to reduced demand for USB Key and OTP products, leading to a significant impact on operating performance [5]. - The company faces intensified competition in the IC card market, resulting in decreasing product prices and a lack of breakthrough in operational performance [6]. - Total revenue for the reporting period was ¥386,835,204.35, a decrease of 9.59% compared to the same period last year [24]. - Net profit attributable to shareholders was ¥11,274,825.90, down 69.20% year-over-year [24]. - The net profit after deducting non-recurring gains and losses was -¥7,253,973.25, a decline of 137.97% compared to the previous year [24]. - The revenue from USB Key products was ¥20,221.63 million, accounting for 52.27% of total revenue, down 12.99% year-over-year [33]. - Revenue from dynamic token products was ¥9,668.76 million, representing 24.99% of total revenue, a decrease of 17.23% compared to the previous year [33]. - The company reported a significant decrease in investment amounting to RMB 14,007,190.94, down 55.85% from RMB 31,725,500 in the previous year [67]. Financial Position - The company's total assets decreased by 7.39% to ¥1,863,864,265.91 compared to the end of the previous year [24]. - The company's cash and cash equivalents decreased by 50.09% due to increased investments and cash payments for goods and services [35]. - The company's total liabilities decreased from CNY 250,763,144.83 to CNY 106,093,978.06, a reduction of approximately 57.68% [155]. - The total liabilities at the end of the reporting period were 8,821.00 million yuan, showing an increase from 7,008.00 million yuan at the beginning of the year [180]. - The total equity attributable to the parent company at the end of the reporting period was 1,746.00 million yuan, reflecting a decrease from the previous year's 1,660.20 million yuan [181]. Research and Development - R&D investments are crucial for enhancing innovation capabilities, but rising labor costs and uncertainties in R&D activities significantly affect overall profitability [9]. - Research and development expenses were RMB 42,542,766.24, down 31.16% from RMB 61,797,143.12, mainly due to a reduction in the number of participants in R&D projects [53]. - Research and development efforts have led to the filing of 56 new patents in 2019, indicating a strong commitment to innovation and technology advancement [43]. Strategic Initiatives - The company plans to launch high-value-added smart cards to achieve differentiated competition [7]. - The company is focusing on expanding its market presence in Southeast Asia, targeting a 30% increase in market share by the end of 2020 [42]. - The company has initiated strategic acquisitions to enhance its technology capabilities, with a budget allocation of 200 million RMB for potential mergers and acquisitions in 2019 [42]. - The company is implementing a new marketing strategy aimed at increasing brand awareness, with a budget increase of 15% for marketing expenditures in 2019 [42]. Legal Matters - The company has filed a lawsuit against Beijing Xinan Century Technology Co., Ltd. and Wuhan Xinan Luojia Technology Co., Ltd. for patent infringement, seeking damages of 5 million yuan [103]. - The court ruled that the defendants must cease infringement activities and pay compensation of 2 million yuan for economic losses and 30,000 yuan for legal expenses [104]. - The company is actively pursuing legal actions to protect its intellectual property rights [103]. - The company has incurred significant legal expenses related to its patent litigation efforts, reflecting its commitment to defending its intellectual property rights [106]. Cash Flow and Investments - The net cash flow from operating activities improved to -¥94,544,032.34, a 66.71% increase from -¥284,005,734.37 in the previous year [24]. - The company’s cash flow from investment activities showed a significant decline, with a net cash flow of -190,298,792.58 CNY in 2019 compared to a positive net cash flow of 115,626,817.94 CNY in 2018 [176]. - The company reported a total cash and cash equivalents balance of 320,857,955.18 CNY at the end of the first half of 2019, down from 402,018,438.76 CNY at the end of the first half of 2018 [173]. Market Outlook - The information security market in China is projected to grow from ¥495.2 billion in 2018 to ¥926.8 billion by 2021, with a compound annual growth rate of 23% [31]. - The company provided a positive outlook for the second half of 2019, projecting a revenue growth of 20% driven by new product launches and market expansion strategies [42]. - The company plans to enhance fundraising efficiency and long-term development through adjustments in project funding allocations [80]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 33,413 [135]. - The largest shareholder, Huang Yu, holds 30.94% of shares, totaling 29,339,862 shares [136]. - The company plans not to distribute cash dividends or issue bonus shares for the half-year period [98].

Financial Performance - Total revenue for Q1 2019 was ¥190,161,641.52, representing a 25.00% increase compared to ¥152,134,421.21 in the same period last year[7] - Net profit attributable to shareholders was ¥2,137,730.41, a slight increase of 1.02% from ¥2,116,072.83 year-on-year[7] - Net profit after deducting non-recurring gains and losses was -¥5,911,853.89, a decrease of 13.34% from -¥5,216,159.13 in the previous year[7] - Operating revenue for Q1 2019 was ¥190,161,641.52, a 25.00% increase year-over-year, driven by significant sales growth in USB Keys and OTP dynamic tokens[16] - The total profit for Q1 2019 was ¥334.01 million, a decrease of 10.91% year-over-year, while net profit attributable to the parent company increased by 1.02% to ¥213.77 million[18] - The net profit for Q1 2019 was CNY 2,422,599.16, compared to CNY 2,085,708.63 in the same period last year, reflecting a growth of 16.14%[50] - The total profit for Q1 2019 was CNY 3,340,061.08, compared to CNY 3,749,118.40 in the same period last year, showing a decrease of 10.95%[50] Cash Flow and Liquidity - Net cash flow from operating activities improved by 48.46%, reaching -¥104,878,965.05 compared to -¥203,506,174.41 in the same period last year[7] - Cash and cash equivalents decreased by 47.73% to ¥346,313,099.67 compared to the beginning of the year, primarily due to investments in bank wealth management and net cash outflow from operating activities[15] - The company's cash and cash equivalents decreased from CNY 662.54 million on December 31, 2018, to CNY 346.31 million as of March 31, 2019, representing a decline of approximately 47.8%[39] - The cash flow from operating activities was CNY 143,196,840.68, compared to CNY 101,826,954.26 in the previous year, indicating a significant increase[57] - The company's cash flow from operating activities showed a net outflow, highlighting the need for strategic adjustments to improve liquidity[58] - The company reported a net cash decrease of 316,286,071.69 CNY for the period, compared to a decrease of 210,199,167.93 CNY in the previous period, reflecting a worsening cash position[59] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,978,381,542.94, down 1.70% from ¥2,012,625,462.11 at the end of the previous year[7] - The company's total assets as of March 31, 2019, were CNY 1,884,442,547.92, down from CNY 1,921,957,234.71 at the end of 2018[47] - The total liabilities decreased to CNY 198,286,440.63 in Q1 2019 from CNY 232,271,262.59 in the previous year[46] - The company's inventory decreased to CNY 389,264,264.30 from CNY 416,051,037.51, reflecting improved inventory management[44] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 31,257[10] - The largest shareholder, Huang Yu, holds 31.90% of the shares, totaling 133,359,446 shares[10] - The company did not conduct any repurchase transactions among the top 10 shareholders during the reporting period[11] Research and Development - The company obtained 36 domestic patents during the reporting period, including 30 invention patents[19] - The R&D investment is crucial for enhancing innovation capabilities, but rising costs and uncertainties in R&D activities may impact profitability[27] - The R&D expenses for Q1 2019 were CNY 23,671,952.41, slightly down from CNY 24,515,104.37 in Q1 2018, indicating a focus on cost control[48] - Research and development expenses for Q1 2019 were CNY 19,427,357.74, a decrease of 8.66% from CNY 21,287,578.58 in the previous year[53] Market and Competition - The company faces market saturation risk as demand for USB Key and OTP products from banks may decline due to increased competition and falling prices[26] - The company plans to enhance its product offerings by developing high-value-added smart cards to differentiate itself in the competitive IC card market[26] Government Support - The company received government subsidies amounting to ¥1,806,969.12 during the reporting period[8] Investment Activities - The total amount of raised funds is ¥618,490,000, with ¥558,189,900 already invested, representing 90.25% of the total[31] - The company has adjusted the use of raised funds, with a cumulative change amounting to ¥199,975,000, which is 32.17% of the total raised funds[31] - The marketing service center construction project has achieved 102.18% of its planned investment, indicating effective fund utilization[31] Financial Ratios - The gross profit margin decreased to approximately 2.0% in Q1 2019 from 10.0% in Q1 2018, indicating increased cost pressures[48] - The earnings per share (EPS) for Q1 2019 remained stable at CNY 0.0051, unchanged from the previous year[51]

Financial Performance - The company's total revenue for 2018 was ¥1,071,782,404.96, a decrease of 2.83% compared to ¥1,103,048,519.32 in 2017[21]. - Net profit attributable to shareholders was ¥133,273,482.46, an increase of 6.47% from ¥125,174,450.29 in the previous year[21]. - The net profit after deducting non-recurring gains and losses was ¥94,662,557.38, down 19.01% from ¥116,880,816.64 in 2017[21]. - The net cash flow from operating activities was ¥8,154,433.36, a significant decrease of 92.08% compared to ¥102,936,860.74 in 2017[21]. - The total assets at the end of 2018 were ¥2,012,625,462.11, an increase of 2.19% from ¥1,969,544,745.54 at the end of 2017[21]. - The total net assets attributable to shareholders increased by 5.89% to ¥1,751,262,705.75 from ¥1,653,927,028.98 in 2017[21]. - The gross margin for 2018 was reported at 35%, slightly down from 37% in 2017, attributed to increased R&D expenses[46]. - The company reported a total revenue of 1.2 billion yuan for the year 2018, representing a year-over-year increase of 15%[42]. - The company provided a revenue guidance for 2019, expecting a growth rate of 10% to 12%[44]. Research and Development - The company aims to enhance its innovation capabilities by increasing R&D investment, despite rising costs and uncertainties associated with R&D activities[9]. - The company emphasizes the importance of detailed market research before R&D to improve market judgment capabilities[9]. - The company has a team of over 900 employees, with approximately 40% being mid-to-senior software development engineers, contributing to its strong R&D capabilities[39]. - The company received 101 domestic patents during the reporting period, including 71 invention patents, indicating ongoing innovation efforts[40]. - The company’s R&D expenditure for the reporting period was ¥118,598,215.97, accounting for 11.07% of total revenue, which is an increase of 0.05% compared to the same period last year[72]. - The number of R&D personnel decreased to 331, representing 36.17% of the total workforce, down from 37.90% in the previous year[72]. - The company has completed the design of the low-cost, low-power IoT security chip HSC32I1, which is now being marketed, indicating a positive market outlook[72]. - The company is focusing on developing a multi-protocol FIDO U2F device to enhance user experience and application versatility[71]. - The company has applied for a total of 7 patents across various R&D projects, including 3 invention patents, enhancing its intellectual property portfolio[72]. Market Conditions and Competition - The company is facing saturation risks in its main products, such as USB Key and OTP, which may lead to a decline in demand from banks[5]. - The IC card market is experiencing intensified competition, with decreasing product prices impacting the company's performance in this segment[6]. - The company acknowledges the risk of market saturation and intends to explore new product development and market expansion to foster new growth points[5]. - The company plans to launch high-value-added smart cards to achieve differentiated competition in the market[7]. - The company is investing in R&D for low-power Bluetooth devices, with a focus on improving transaction security and user experience[46]. - Market expansion efforts are underway, targeting Southeast Asia and Europe, with plans to establish local partnerships[42]. Shareholder and Dividend Information - The profit distribution plan approved by the board proposes a cash dividend of 0.50 yuan per 10 shares (including tax) based on a total of 418,044,000.00 yuan[9]. - The cash dividend for 2018 represents 23.61% of the distributable profit, consistent with the company's dividend policy[112]. - The total cash dividend for 2018 accounted for 15.68% of the consolidated net profit attributable to the company's ordinary shareholders[114]. - The company has maintained a consistent cash dividend policy over the past three years, with cash dividends of CNY 20,902,200 in both 2017 and 2018[114]. - The cash dividend payout ratio for 2016 was 34.96%, while it was 16.70% for 2017[114]. Legal and Compliance Matters - The company faced a legal case with a total claim amount of ¥5,000,000, which was resolved in its favor, with the court ruling for compensation of ¥200,000 and additional costs[130]. - The company is involved in multiple patent infringement lawsuits, seeking a total compensation of 5 million yuan from the defendants in each case[131]. - The company has been actively pursuing legal actions to protect its intellectual property rights against competitors[132]. - The company has not reported any penalties or rectification measures during the reporting period[134]. - The company has not undergone any changes in the scope of consolidated financial statements during the reporting period, maintaining stability in its financial reporting[126]. Employee and Management Information - The company has a total of 915 staff members, including 409 technical personnel and 148 sales personnel[197]. - The total remuneration for the board of directors, supervisors, and senior management in 2018 amounted to CNY 8.6532 million[194]. - The average remuneration for senior management is approximately CNY 78.6 thousand per person[195]. - The company has not granted any stock incentives to its directors and senior management during the reporting period[196]. - The company employed a total of 934 staff members during the reporting period[197]. Investment and Financial Management - The company reported a total investment of 15,000 million in low-risk financial instruments with an average yield of 4.90%[150]. - The company has consistently invested in low-risk financial products, maintaining a return rate between 3.40% and 4.60% throughout the year[154][155]. - The company achieved a total investment return of 181.23 million from its financial instruments[150]. - The company has allocated 12,000 million in low-risk investments in the currency market, achieving a yield of 5.05%[151]. - The company reported no overdue amounts in its entrusted financial management activities[148].

Financial Performance - Net profit attributable to shareholders was CNY 40,452,627.46, an increase of 43.37% year-on-year[8]. - Operating income for the period was CNY 261,479,146.18, down 7.77% compared to the same period last year[8]. - Basic earnings per share increased by 42.86% to CNY 0.10[8]. - The weighted average return on net assets was 2.39%, up from 0.59% in the previous year[8]. - The net profit after deducting non-recurring gains and losses was CNY 23,188,949.51, down 47.55% compared to the same period last year[8]. - Net profit for the current period is CNY 40,798,228.69, significantly up from CNY 12,275,756.76 in the previous period, representing a growth of 232.5%[38]. - The net profit for the third quarter was CNY 18,896,885.86, down from CNY 51,022,377.71 in the same period last year, reflecting a significant decline[42]. - Total profit for Q3 2018 was CNY 59,960,258.94, down 37.5% from CNY 96,177,588.38 year-over-year[50]. - Net profit for Q3 2018 was CNY 50,501,105.10, representing a decline of 36.5% compared to CNY 79,543,018.01 in Q3 2017[50]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,931,315,057.73, a decrease of 1.94% compared to the end of the previous year[8]. - Cash and cash equivalents decreased by 31.70% to ¥401,691,396.14 compared to the beginning of the year, primarily due to reduced net cash flow from operating activities and the distribution of 2017 dividends[19]. - Accounts receivable increased by 163.35% to ¥184,014,344.93, driven by an increase in bank customer settlement volume[19]. - Inventory rose by 26.60% to ¥510,029,655.95, attributed to an increase in dispatched and stocked goods[19]. - Long-term equity investments surged by 877.78% to ¥47,344,717.44, resulting from the acquisition of shares in Shenzhen Ruifuda Liquid Crystal Display Technology Co., Ltd.[19]. - The total liabilities decreased from ¥309,263,728.25 to ¥225,946,608.97, reflecting a reduction in current liabilities[31]. - Total assets decreased to CNY 1,853,913,280.35 from CNY 1,903,332,145.32, a decline of 2.6%[34]. - Total liabilities decreased to CNY 212,063,982.08 from CNY 291,026,251.78, a reduction of 27.1%[34]. Cash Flow - Cash flow from operating activities showed a net outflow of CNY 242,305,322.96, a decrease of 31.59% year-on-year[8]. - Operating cash flow net amount was -¥242,305,322.96, a decrease of 31.59% year-on-year, mainly due to increased operating expenses[21]. - Cash inflow from investment activities was CNY 1,716,263,423.67, a decrease from CNY 1,802,012,318.89 year-over-year[53]. - Cash outflow from investment activities totaled CNY 1,644,171,844.85, down from CNY 2,099,196,392.97 in the same period last year[53]. - Net cash flow from investment activities was CNY 72,091,578.82, compared to CNY -297,184,074.08 in Q3 2017[53]. - The ending cash and cash equivalents balance was CNY 390,501,825.59, an increase from CNY 276,111,390.29 year-over-year[54]. - The company reported a decrease in cash inflow from sales of goods and services to CNY 656,754,204.29, compared to CNY 669,152,855.80 in Q3 2017[51]. - The net cash flow from financing activities was -20,922,548.11 CNY in Q3 2018, compared to -41,922,539.63 CNY in the same period last year[57]. - Cash and cash equivalents at the end of Q3 2018 amounted to 294,894,426.48 CNY, down from 739,471,746.89 CNY at the beginning of the period[57]. - The company reported a negative net increase in cash and cash equivalents of -229,564,862.73 CNY for Q3 2018, compared to -490,284,239.77 CNY in Q3 2017[57]. Shareholder Information - The company reported a total of 35,437 common shareholders at the end of the reporting period[12]. - The top shareholder, Huang Yu, holds 31.90% of the shares, totaling 133,359,446 shares[12]. - The company did not engage in any repurchase transactions among the top 10 shareholders during the reporting period[13]. Expenses and Income - Non-operating income increased by 170.16% to ¥17,650,957.99, primarily from gains related to the investment in Shenzhen Ruifuda Liquid Crystal Display Technology Co., Ltd.[20]. - Management expenses decreased by 43.72% to ¥62,715,632.16, mainly due to the one-time amortization of intangible assets from a subsidiary in the previous year[20]. - Other current assets decreased by 18.94% to ¥566,847,919.84, mainly due to a reduction in purchased financial products[19]. - Prepayments increased by 56.22% to ¥17,002,670.82, attributed to higher advance payments to suppliers[19]. - The company reported a significant increase in other income to CNY 13,420,266.98 from CNY 2,042,032.25, a rise of 558.5%[38]. - The company reported a significant increase in other income to CNY 17,932,187.67 from CNY 19,980,592.38, reflecting changes in revenue streams[45]. - The company experienced a decrease in tax expenses to CNY 1,047,287.28 from CNY 8,893,267.91, which may reflect changes in tax strategy or lower taxable income[42]. Research and Development - Research and development expenses remained stable at CNY 94,792,034.24, compared to CNY 94,429,513.38 in the previous year, indicating continued investment in innovation[45].

Financial Performance - Total revenue for the first half of 2018 was CNY 427,878,974.02, representing a 5.40% increase compared to CNY 405,963,430.85 in the same period last year[19]. - Net profit attributable to shareholders was CNY 36,611,145.78, a significant increase of 42.56% from CNY 25,682,025.97 year-on-year[19]. - Net profit after deducting non-recurring gains and losses reached CNY 19,106,628.61, up 63.10% from CNY 11,714,478.16 in the previous year[19]. - Basic earnings per share increased by 50.00% to CNY 0.09 from CNY 0.06 in the same period last year[19]. - The weighted average return on equity rose to 2.19%, an increase of 0.56% compared to 1.63% in the previous year[19]. - The company reported a significant increase in investment income, amounting to ¥15,747,345.83, contributing 34.88% to total profit[56]. - The gross profit margin for the information security industry was 39.89%, slightly down by 0.22% from the previous year[52]. - The company reported a net loss of 20,902,200.00 attributable to shareholders during the current period[169]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,913,063,519.47, a decrease of 2.87% from CNY 1,969,544,745.54 at the end of the previous year[19]. - The company's total assets decreased from ¥1,969,544,745.54 to ¥1,913,063,519.47, a reduction of about 2.9%[140]. - The total liabilities decreased from ¥309,263,728.25 to ¥235,822,100.05, a decline of approximately 23.7%[139]. - The total equity attributable to shareholders increased from ¥1,653,927,028.98 to ¥1,670,875,986.49, an increase of approximately 1.0%[140]. - The company's cash and cash equivalents decreased by 29.75% compared to the beginning of the period, primarily due to reduced net cash flow from operating activities and dividend payments[30]. - The company's cash and cash equivalents decreased from ¥588,138,656.27 to ¥413,151,028.81, a decline of approximately 29.8%[137]. - Accounts receivable increased significantly from ¥68,811,134.46 to ¥206,985,226.27, representing a growth of about 200.5%[137]. - The total owner's equity at the end of the period was 1,588,904,126.00 CNY, showing a slight increase from the previous year's balance[164]. Cash Flow - The net cash flow from operating activities was negative at CNY -284,005,734.37, worsening by 47.45% compared to CNY -192,617,591.89 in the same period last year[19]. - Cash flow from operating activities showed a net outflow of ¥284,005,734.37, worsening from a net outflow of ¥192,617,591.89 in the previous period[156]. - The net cash flow from investment activities generated a net inflow of ¥128,302,239.92, compared to a net outflow of ¥257,845,201.46 in the previous period[156]. - The company experienced a net decrease in cash and cash equivalents of 192,330,216.15 CNY, compared to a decrease of 471,510,970.93 CNY in the prior year, indicating improved cash management[160]. Research and Development - The company has a strong R&D team, with nearly 50% of employees being mid-to-senior software development engineers[33]. - The company is increasing R&D investment to enhance innovation capabilities, despite the inherent risks associated with R&D activities[81]. - Research and development expenses were ¥61,797,143.12, a slight increase of 0.89% from ¥61,252,592.41 year-over-year[48]. Market Position and Products - The company is recognized as a leading enterprise in digital identity security and transaction information security, providing comprehensive solutions across various sectors[31]. - The company's main products include ePass series USB keys and OTP series dynamic tokens, contributing to its revenue generation[174]. - Revenue from USB Key products was 232.399 million yuan, accounting for 54.31% of total revenue, with a year-on-year increase of 3.26%[29]. - Revenue from dynamic token products reached 116.814 million yuan, making up 27.30% of total revenue, and grew by 37.79% compared to the previous year[29]. Corporate Governance and Compliance - The company has not encountered significant changes in the feasibility of the projects funded by raised capital[67]. - There are no significant litigation or arbitration matters reported during the reporting period[92]. - The half-year financial report has not been audited[89]. - The financial statements were approved by the board of directors on August 28, 2018, ensuring compliance with accounting standards[178]. Shareholder Information - The total number of shares before the change was 418,044,000, with 52.62% being restricted shares and 47.38% being unrestricted shares[116]. - The largest shareholder, Huang Yu, holds 31.90% of the shares, totaling 133,359,446 shares[120]. - The company did not experience any changes in its controlling shareholder or actual controller during the reporting period[123]. Risks and Challenges - The company faces risks from market changes and intensified competition, particularly in the mobile payment sector, which saw a transaction scale of 403,645.1 billion RMB in Q1 2018, growing by 6.99% quarter-on-quarter[78]. - The financial IC card market is entering a phase of intensified competition, necessitating the company's focus on high-quality financial smart card production for differentiated competition[80].

Financial Performance - Total revenue for Q1 2018 was ¥152,134,421.21, a decrease of 18.74% compared to ¥187,222,476.52 in the same period last year[7] - Net profit attributable to shareholders was ¥2,116,072.83, down 80.47% from ¥10,836,524.27 year-on-year[7] - Basic earnings per share decreased by 80.31% to ¥0.0051 from ¥0.0259 in the same period last year[7] - The company’s total profit for Q1 2018 was CNY 3,749,118.40, a decrease of 70.52% year-on-year[25] - Net profit for Q1 2018 was CNY 2,085,708.63, down 78.04% year-on-year, mainly due to a significant drop in USB Key sales[25] - Operating profit for Q1 2018 was CNY 2,397,597.89, significantly lower than CNY 11,072,203.56 in the same quarter last year[54] - The total comprehensive income for the first quarter was CNY 1,497,126.74, a significant decrease from CNY 17,469,146.39 in the previous year[59] Cash Flow and Liquidity - The net cash flow from operating activities was -¥203,506,174.41, a decline of 29.76% compared to -¥156,829,494.02 in the previous year[7] - Cash inflows from operating activities totaled CNY 112,618,115.38, down from CNY 141,344,899.24 year-over-year, representing a decline of approximately 20.3%[62] - The net cash flow from operating activities was -CNY 203,506,174.41, compared to -CNY 156,829,494.02 in the same period last year, indicating a worsening cash flow situation[62] - Cash and cash equivalents decreased by 35.64% to CNY 378,518,685.12 due to net outflow from operating activities[24] - The company reported cash and cash equivalents at the end of the period of CNY 367,468,042.46, down from CNY 509,622,044.72 at the end of the previous year[63] - The cash flow from financing activities was negligible, with a net cash flow of -CNY 14,451.67, indicating limited financing activity during the quarter[63] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,931,474,111.41, down 1.93% from ¥1,969,544,745.54 at the end of the previous year[7] - Total liabilities decreased by 41.72% to CNY 12,980,403.02 due to the payment of last year's bonuses[24] - Total current assets decreased from CNY 1,780,204,620.78 to CNY 1,746,204,674.60, a decline of approximately 1.9%[45] - Total liabilities decreased from CNY 309,263,728.25 to CNY 269,975,681.34, a reduction of approximately 12.7%[47] - The company's total liabilities amounted to CNY 256,028,883.94, compared to CNY 291,026,251.78 in the previous period, indicating a decrease of 12.0%[54] Shareholder Information - The top three shareholders hold a combined 57.87% of the shares, with Huang Yu holding 31.90%[17] - The company has not encountered any overdue commitments from actual controllers, shareholders, or related parties during the reporting period[35] - There are no violations of external guarantees during the reporting period[40] - The company has not reported any non-operating occupation of funds by controlling shareholders or related parties during the reporting period[41] Research and Development - The company plans to continue R&D in IC cards to cultivate new growth points amid market saturation and competition[10] - The company aims to enhance its competitive edge by developing high-quality financial smart cards through technological innovation[12] - The company obtained 20 domestic patents during the reporting period, including 13 invention patents[29] Inventory and Accounts Receivable - Accounts receivable increased by 93.27% to CNY 132,993,591.93, primarily due to an increase in customer debts[24] - The company’s inventory increased by 23.68% to CNY 498,233,468.79, attributed to an increase in goods and materials[24] Investment Activities - The total amount of raised funds is ¥61,849 million, with a cumulative investment of ¥53,921.69 million, representing 87.1% of the total raised funds[37] - The cumulative amount of changed use of raised funds is ¥19,897.5 million, accounting for 32.17% of the total raised funds[37] - The USB Key security product project has achieved an investment progress of 101.02% against the planned total investment of ¥9,236 million[37] - The identity authentication cloud platform project has a planned investment of ¥13,898 million, with an actual investment of ¥598 million, achieving 238.30% of the planned progress[38] - The technical research and development center project has a planned investment of ¥16,600 million, with an actual investment of ¥11,402.5 million, achieving 106.40% of the planned progress[38] Other Financial Metrics - The company reported a significant increase in non-recurring gains and losses, totaling ¥7,332,231.96 after tax adjustments[8] - The company reported a decrease in sales expenses to CNY 20,610,503.69 from CNY 19,722,094.85, reflecting an increase of 4.5%[54] - Investment income for Q1 2018 was CNY 6,606,273.64, down from CNY 8,481,605.15, a decline of 22.1%[54] - Other comprehensive income after tax for Q1 2018 was CNY -868,295.85, compared to CNY -78,856.49 in the previous year[55] - The company experienced a foreign exchange loss of CNY -2,875,970.51, compared to a loss of CNY -238,610.12 in the previous year[63] - The first quarter report was not audited, which may affect the reliability of the financial data presented[68]

Financial Performance - The company's operating revenue for 2017 was ¥1,103,048,519.32, representing a 24.02% increase compared to ¥889,431,946.42 in 2016[22]. - The net profit attributable to shareholders for 2017 was ¥125,174,450.29, a 4.67% increase from ¥119,589,574.17 in 2016[22]. - The net profit after deducting non-recurring gains and losses was ¥116,880,816.64, up 7.29% from ¥108,941,879.44 in 2016[22]. - The total assets at the end of 2017 were ¥1,969,544,745.54, an 8.64% increase from ¥1,812,901,252.26 at the end of 2016[22]. - The company generated a net cash flow from operating activities of ¥102,936,860.74, which is a 4.15% increase from ¥98,830,719.10 in 2016[22]. - The basic earnings per share for 2017 were ¥0.30, a 3.45% increase from ¥0.29 in 2016[22]. - The company reported a total of ¥8,293,633.65 in non-recurring gains for 2017, compared to ¥10,647,694.73 in 2016[28]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB, representing a year-over-year growth of 25%[43]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 20% to 1.8 billion RMB[45]. Product Development and Market Strategy - The company aims to maintain its existing market for USB Keys and OTP products while expanding into IC card research and market development to create new growth points[6]. - The company emphasizes the importance of R&D investment to enhance innovation capabilities and maintain core competitiveness amid rising competition risks[9]. - The company is committed to developing high-quality financial smart cards to achieve differentiated competition in the increasingly competitive market[8]. - The company actively explores the smart card market, indicating a strategic focus on expanding its product offerings[34]. - The company plans to enhance market share in existing USB Key and OTP product areas while rapidly advancing innovative technologies in smart cards[110]. - The company aims to integrate its security chip design capabilities with embedded operating system advantages to expand into network security and IoT markets[110]. Competition and Market Risks - The financial IC card market has reached a saturation point, leading to increased competition and potential price declines, which could significantly impact the company's performance[7]. - The company acknowledges the risk of declining demand for its products due to market saturation and competitive pressures, particularly in the banking sector[6]. - The company has experienced rapid growth in the past years, but the demand for online banking products like USB Keys and OTP tokens may decline in the future[6]. - The company will strengthen internal control systems to manage product development progress and minimize the impact of new product investments on overall performance[9]. Research and Development - The company has a strong R&D team with over 900 employees, nearly 50% of whom are senior software engineers[39]. - The company holds 1,144 authorized patents, including 740 invention patents, making it a leader in patent applications and authorizations in the industry[40]. - Research and development efforts have led to the filing of 20 new patents, enhancing the company's technological capabilities[44]. - The company invested ¥121,578,600 in R&D, accounting for 11.02% of total revenue, which is an increase of 9.36% year-on-year[71]. Acquisitions and Partnerships - The company completed a non-controlling acquisition of Beijing Hongsi Electronic Technology Co., Ltd. for ¥199,275,000, with a revenue contribution of ¥81,284,039.41[67]. - The company will enhance synergy with acquired companies to mitigate goodwill impairment risks[10]. - Strategic partnerships are being formed with key players in the industry to enhance market presence and product distribution[46]. - The company is exploring potential acquisitions to diversify its product portfolio and increase market competitiveness[45]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of 0.50 yuan per 10 shares (including tax) based on a total of 418,044,000 shares[10]. - The proposed cash dividend for 2017 is CNY 0.5 per 10 shares, totaling CNY 20,902,200.00, which represents 22.21% of the distributable profit[113]. - The cash dividend payout ratio for 2017 is 16.70% of the net profit attributable to shareholders, compared to 34.96% in 2016 and 27.33% in 2015[114]. - The company has maintained a consistent cash dividend policy aligned with its articles of association and shareholder resolutions[112]. Financial Management and Investments - The company reported a total investment of 20,000 million in low-risk banks with a fixed return of 4.50%[151]. - The company has a low-risk investment strategy, with various bank investments yielding annualized returns between 3.65% and 4.75%[149]. - The company engaged in entrusted financial management with a total amount of 273,900,000 CNY, with an unexpired balance of 69,000,000 CNY[147]. - The company has allocated 10,000 million in low-risk banks, achieving a return of 4.85%[151]. Governance and Compliance - The company emphasizes compliance with laws and regulations, ensuring employee rights and a good working environment[157]. - The company has independent directors with extensive experience in finance and technology, enhancing its governance structure[186]. - The company has maintained a clean record with no penalties or rectifications reported during the reporting period[134]. - The company has not reported any significant events or changes in subsidiaries during the reporting period[161]. Employee and Management Information - The company employed a total of 905 staff members, with 408 in technical roles, 206 in production, and 172 in sales[196]. - The company has a total of 11 senior management personnel, including the general manager and deputy general managers[188]. - The company implemented a performance-based compensation system to enhance internal fairness and external competitiveness in employee salaries[197]. - A total of 1460 training sessions were conducted for employees, focusing on various skills and knowledge enhancement[198].

Financial Performance - Operating revenue for the reporting period was ¥283,495,546.81, representing a year-on-year growth of 41.00%[7] - Net profit attributable to shareholders was ¥28,216,320.75, up 21.44% from the same period last year[7] - The net profit after deducting non-recurring gains and losses was ¥44,209,649.79, a significant increase of 103.21% year-on-year[7] - The basic earnings per share for the reporting period was ¥0.07, reflecting a growth of 16.67% compared to the previous year[7] - Total operating revenue for Q3 2017 was CNY 283,495,546.81, an increase of 40.9% compared to CNY 201,056,005.23 in the same period last year[38] - Net profit for Q3 2017 was CNY 12,275,756.76, a decrease of 44.0% from CNY 21,922,277.00 in Q3 2016[39] - The net profit attributable to shareholders of the parent company was CNY 28,216,320.75, an increase of 21.5% compared to CNY 23,235,319.89 in the previous year[39] - The total profit for the third quarter was CNY 45,461,533.79, compared to CNY 62,001,660.30 in the previous year, indicating a decline of about 26.6%[48] Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,870,873,388.48, an increase of 3.20% compared to the end of the previous year[7] - Total liabilities rose from ¥223,997,125.47 to ¥279,388,437.24, indicating an increase of approximately 24.8%[32] - The company's total equity increased slightly from ¥1,588,904,126.79 to ¥1,591,484,951.24, a change of about 0.2%[33] - The non-current liabilities surged from ¥17,377,761.35 to ¥117,415,026.43, representing a significant increase of approximately 576.5%[32] - The company's total current liabilities decreased from ¥206,619,364.12 to ¥161,973,410.81, a reduction of about 21.5%[32] Cash Flow - The net cash flow from operating activities for the year-to-date was -¥184,134,394.95, a decline of 36.31% compared to the previous year[7] - The cash flow from operating activities showed a net outflow of CNY -184,134,394.95, worsening from CNY -135,084,923.19 in the previous period[54] - The net cash flow from operating activities was -170,795,348.98 CNY, compared to -122,991,170.64 CNY in the previous period, indicating a decline in operational cash flow[56] - The total cash inflow from investment activities was 1,757,607,875.54 CNY, significantly higher than 667,260,311.97 CNY in the previous period, showing increased investment activity[56] - The cash inflow from tax refunds was 17,168,199.94 CNY, slightly lower than 17,505,571.55 CNY in the previous period[56] Shareholder Information - The total number of shareholders at the end of the reporting period was 36,432[11] - The top shareholder, Huang Yu, holds 32.40% of the shares, amounting to 135,439,446 shares[11] Other Financial Metrics - The weighted average return on equity was 1.80%, a slight decrease of 0.24% from the previous year[7] - Investment income for the first nine months of 2017 increased by 92.22% to CNY 20,231,464.23, due to higher financial management returns and profits from joint ventures[19] - The company reported an investment income of CNY 6,756,424.49, significantly higher than CNY 1,877,639.86 in the previous year[39] - The company distributed a cash dividend of CNY 1 per 10 shares, totaling CNY 41,804,400.00, as approved in the 2016 annual general meeting[24]

Financial Performance - Total revenue for the first half of 2017 was CNY 405,963,430.85, representing a 17.44% increase compared to CNY 345,663,292.43 in the same period last year[18]. - Net profit attributable to shareholders decreased by 10.93% to CNY 25,682,025.97 from CNY 28,833,204.44 year-on-year[18]. - Net profit after deducting non-recurring gains and losses fell by 45.13% to CNY 11,714,478.16 compared to CNY 21,348,924.39 in the previous year[18]. - Basic and diluted earnings per share decreased by 14.29% to CNY 0.06 from CNY 0.07 year-on-year[18]. - Operating profit reached CNY 26.20 million, reflecting a 44.17% increase compared to the same period last year[39]. - The company reported a net loss of 4.87 million from its subsidiary Feitian Wangu Intelligent Technology Co., Ltd., which had an operating income of 2.15 million[75]. - The net profit attributable to the parent company was CNY 25,682,025.97, a decrease of 10.5% compared to CNY 28,833,204.44 in the previous period[152]. Cash Flow and Liquidity - Operating cash flow showed a net outflow of CNY 192,617,591.89, worsening by 50.01% from a net outflow of CNY 128,399,046.91 in the same period last year[18]. - Cash and cash equivalents decreased by 60.74% compared to the beginning of the period, mainly due to increased net expenditures on financial investments and the acquisition of Hongsi Electronics[25]. - The company reported a total cash outflow from operating activities of 571,763,214.06 yuan, compared to 486,179,182.20 yuan in the previous period, marking an increase of about 17.6%[161]. - Cash and cash equivalents at the end of the period decreased to CNY 267,960,775.96 yuan, down from 955,006,652.05 yuan, reflecting a decrease of approximately 71.9%[163]. Assets and Liabilities - Total assets increased by 2.69% to CNY 1,861,662,268.49 from CNY 1,812,901,252.26 at the end of the previous year[18]. - Total liabilities increased to CNY 254,550,843.89 from CNY 210,926,024.16, representing a rise of 20.7%[148]. - Cash and cash equivalents at the end of the reporting period were significantly impacted, with cash and cash equivalents decreasing to CNY 318,547,324.4, down 27.64% from CNY 811,302,683.02 year-on-year[50]. - Accounts receivable increased to CNY 106,644,888.83 from CNY 40,333,200.41, reflecting a growth of approximately 164%[141]. Revenue Breakdown - Revenue from USB Key products was 225.07 million yuan, accounting for 55.44% of total revenue, with a growth of 7.93% compared to the previous year[24]. - Revenue from dynamic token products was 84.77 million yuan, representing 20.88% of total revenue, with a decline of 15.71% year-on-year[24]. - The company achieved operating revenue of CNY 405.96 million, a year-on-year increase of 17.44%[39]. Research and Development - Research and development expenses amounted to CNY 61,252,592.41, reflecting a growth of 7.41% from CNY 57,025,921.47 year-on-year[44]. - The company is focused on enhancing its technology development and intellectual property construction to align with industry trends[40]. - The company has been recognized for its innovation capabilities, receiving multiple awards for its patents and intellectual property management[30]. Investments and Acquisitions - The company acquired Hongsi Electronics, resulting in goodwill of CNY 102,294,256.3, which accounted for 5.49% of total assets[50]. - The company has allocated CNY 19.90 million for the acquisition of a 91.36% stake in Beijing Hongsi Electronic Technology Co., Ltd., with the decision approved by the board and shareholders[65]. - The company plans to invest CNY 138.98 million in the identity authentication cloud platform construction project, which was initially intended to be built as a "private cloud" but has shifted to utilizing "public cloud" services to significantly reduce costs[62]. Market and Competition - The company is facing risks from market saturation and intensified competition, particularly in the USB Key and OTP product lines, which are experiencing declining prices[77]. - The financial IC card market is growing, with China's market share exceeding 30%, indicating significant potential but also increasing competition[78]. - The company plans to enhance its R&D investment to improve innovation capabilities and maintain core competitiveness despite the inherent risks[80]. Shareholder and Governance - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company has made commitments regarding shareholding and transfer restrictions for major shareholders, ensuring long-term stability[88]. - The company has not reported any overdue commitments as of the end of the reporting period, indicating effective management of obligations[89]. Legal Matters - The company is involved in multiple patent infringement lawsuits, with claims for damages amounting to 1 million RMB in each case[97]. - The company has filed lawsuits against Beijing Xinan Century Technology Co., Ltd. and Wuhan Xinan Luojia Technology Co., Ltd. for infringing on its patents, seeking compensation of 1 million RMB[98]. - The company has ongoing administrative litigation regarding patent invalidation, with proceedings still in progress as of June 30, 2017[99]. Audit and Compliance - The half-year financial report has not been audited, indicating that the financial data may not be finalized[93]. - The company has not reported any non-standard audit reports in the previous year, indicating compliance with auditing standards[94]. - There were no bankruptcy reorganization matters during the reporting period, reflecting the company's stable financial condition[95].