Financial Performance - The company's operating revenue for Q3 2021 was ¥159,739,779, a decrease of 32.98% compared to the same period last year[3]. - The net profit attributable to shareholders was ¥9,136,748.37, down 56.17% year-on-year, while the net profit after deducting non-recurring gains and losses was a loss of ¥7,624,781.39, a decrease of 148.51%[3]. - Total operating revenue for the third quarter was CNY 413,421,367.96, a decrease of 56.1% compared to CNY 940,890,390.27 in the same period last year[26]. - The company reported a net loss of CNY 398,977.44, compared to a net profit of CNY 177,907,934.72 in the previous year[27]. - The basic and diluted earnings per share were CNY 0.0029, significantly lower than CNY 0.1929 in the same quarter last year[27]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,468,777,737.90, an increase of 31.15% compared to the end of the previous year[3]. - The total current assets amounted to CNY 1,466,548,009.26, up from CNY 971,630,265.56, indicating a growth of about 51%[24]. - The total liabilities increased to CNY 411,250,011.25, compared to CNY 398,834,611.02 at the end of the previous period[26]. - Total liabilities amounted to CNY 398,834,611.02, a decrease of CNY 24,427,226.06 compared to the previous period[34]. - Non-current liabilities were CNY 29,972,615.26, down from CNY 42,294,574.18, indicating a reduction of CNY 12,321,958.92[34]. Cash Flow - The cash flow from operating activities for the year-to-date was ¥21,113,890.18, a decrease of 89.61% compared to the same period last year[3]. - Cash received from investment increased by 234.04% to 1,176,816,750.00, attributed to increased redemption of financial products[9]. - The net cash flow from operating activities for Q3 2021 was CNY 21,113,890.18, a significant decrease of 89.6% compared to CNY 203,253,353.63 in Q3 2020[29]. - The net increase in cash and cash equivalents for Q3 2021 was CNY 614,604,067.37, a significant rise from CNY 24,998,274.85 in Q3 2020[30]. Investment and Development - The company’s investment income increased by 1063.33% to ¥6,474,506.72, primarily due to gains from redeeming financial products[8]. - The company’s development expenditure rose by 37.43% to ¥47,762,318.57, driven by ongoing investments in 5G RF chip and military technology projects[8]. - The company is investing CNY 169,981,000 in the construction of the Xi'an High-tech Tianhe Defense Phase II - 5G Communication Industrial Park, covering an area of approximately 260 acres[19]. - The company is actively developing new products in the 5G communication sector, including isolators, circulators, and RF microwave chips, as part of its industrial park project[20]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 55,605[11]. - The largest shareholder, He Zenglin, holds 25.11% of the shares, amounting to 129,971,700 shares, with 71,744,775 shares pledged[11]. - The company did not distribute dividends during the current period, leading to a 89.58% decrease in cash paid for dividends and interest to 2,057,186.56[9]. Fundraising Activities - The company raised a total of 1,962,066 shares through private placements to support funding, with the largest single contribution being 1,111,838 shares[15]. - The fundraising efforts are expected to bolster the company's financial position and facilitate strategic investments in technology and market expansion[16]. - The successful completion of this fundraising round positions the company favorably for future market opportunities and competitive advantages[16]. Tax and Expenses - The total tax expense decreased by 110.82% to -3,037,103.69 due to a reduction in total profit[9]. - Cash received from tax refunds increased by 739.41% to 12,153,035.92, primarily due to tax rebate receipts[9]. - Research and development expenses were CNY 58,193,896.58, an increase of 11.6% from CNY 52,281,931.56 in the same period last year[26]. Other Financial Metrics - The company reported a significant increase in cash and cash equivalents, reaching ¥734,956,716.05, up 510.67% from the previous year-end[8]. - The total equity attributable to shareholders increased by 65.38% to ¥2,051,642,245.59 compared to the end of the previous year[3]. - The company has implemented the new leasing standards since January 1, 2021, affecting the accounting treatment of leases[34].

Financial Performance - The company's operating revenue for the first half of 2021 was approximately ¥253.68 million, a decrease of 63.89% compared to ¥702.53 million in the same period last year[21]. - The net profit attributable to shareholders of the listed company was a loss of approximately ¥7.66 million, representing a decline of 112.25% from a profit of ¥62.50 million in the previous year[21]. - The net profit after deducting non-recurring gains and losses was a loss of approximately ¥21.91 million, down 132.56% from a profit of ¥67.30 million in the same period last year[21]. - The basic earnings per share were -¥0.02, a decrease of 114.29% compared to ¥0.14 in the previous year[21]. - The total profit for the period was -1,167.83 million RMB, down 107.61% year-on-year, while the net profit attributable to shareholders was -765.62 million RMB, a decline of 112.25%[43]. - The company reported a total comprehensive loss of CNY 9.60 million for the first half of 2021, compared to a comprehensive income of CNY 130.94 million in the same period of 2020[200]. Assets and Liabilities - The total assets at the end of the reporting period were approximately ¥1.88 billion, an increase of 0.04% from ¥1.88 billion at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company increased by 18.41% to approximately ¥1.47 billion from ¥1.24 billion at the end of the previous year[21]. - Total liabilities rose to ¥408,434,931.13 from ¥398,834,611.02, with current liabilities slightly increasing[191]. - The company's equity attributable to shareholders increased to ¥1,468,946,204.72 from ¥1,240,529,239.15, indicating strong retained earnings[192]. - The company reported a total liabilities increase to CNY 330.42 million in the first half of 2021, up from CNY 246.40 million in the same period of 2020, representing a growth of 34.06%[196]. Research and Development - The company has a strong R&D focus on disruptive technologies, aligning with national defense modernization goals outlined in the 14th Five-Year Plan[37]. - R&D investment reached 60.88 million yuan, accounting for 13% of operating revenue, reflecting a 29.45% increase compared to the same period last year[51]. - Research and development expenses for the first half of 2021 were CNY 41.10 million, an increase of 23.93% from CNY 33.16 million in the first half of 2020[197]. Business Strategy and Market Position - The company has established three main business systems: military equipment, communication electronics, and next-generation integrated electronic information, focusing on five key business sectors including 5G RF and industry big data[29]. - The company aims to leverage its technological advantages to provide customized solutions based on clients' OPEX and CAPEX metrics, enhancing customer and product value[31]. - The company plans to enhance its core competitiveness in military equipment by focusing on technology upgrades and new product development[45]. - The company is committed to expanding its market presence both domestically and internationally, particularly in the telecommunications sector[43]. - The company aims to leverage the significant opportunities presented by 5G communication construction to expand the production capacity of civilian communication electronic products[105]. Risk Management - The management has highlighted potential risks and corresponding measures in the report, urging investors to pay attention to investment risks[4]. - The company is facing risks related to management and operational capabilities due to its rapid growth and expansion[105]. - The company is facing risks from international political and economic complexities, particularly due to US export controls affecting its clients and suppliers[108]. Corporate Governance and Compliance - The company has established a robust investor relations management system, ensuring timely and accurate disclosure of financial reports and maintaining good communication with investors[122]. - The company has not faced any administrative penalties for environmental issues during the reporting period and complies with relevant environmental laws[120]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[129]. Subsidiaries and Acquisitions - The company has established two new subsidiaries, Tianhe Jiamei and Guangsu Xincai, to enhance its layout in basic materials and 5G RF business, with the thermal conductive materials product line progressing smoothly[47]. - The acquisition of remaining equity in Huayang Communication and Nanjing Biao has been completed, enhancing the company's strategic layout in the communication electronics business[53]. - The company has completed the acquisition of 16% equity in Nanjing Biao, with a total investment of 163.4 million CNY[80]. Social Responsibility - The company actively participates in social responsibility initiatives, including supporting rural revitalization efforts by purchasing 1,052 barrels of cooking oil for local government projects[125]. - The company emphasizes safety production management, achieving a level 3 standardization in safety production while implementing comprehensive safety management practices[121].

Financial Performance - The company's operating revenue for Q1 2021 was ¥146,679,298.26, a decrease of 48.50% compared to ¥284,787,257.24 in the same period last year[7] - The net profit attributable to shareholders was ¥14,821,164.89, down 39.82% from ¥24,628,793.08 year-on-year[7] - The net profit after deducting non-recurring gains and losses was ¥5,943,726.98, reflecting a decline of 66.47% compared to ¥17,725,807.14 in the previous year[7] - The basic earnings per share decreased by 70.00% to ¥0.03 from ¥0.10 in the same period last year[7] - The diluted earnings per share also decreased by 70.00% to ¥0.03 from ¥0.10 year-on-year[7] - The weighted average return on equity was 1.16%, down from 2.14% in the same period last year, a decrease of 0.98%[7] - The company reported a net profit for Q1 2021 of CNY 15,646,948.99, a decrease from CNY 50,532,009.60 in the same period last year, representing a decline of approximately 69.0%[54] - The operating profit for Q1 2021 was CNY 18,202,411.19, down from CNY 56,959,877.66 in the previous year, indicating a decrease of about 68.1%[53] Cash Flow and Liquidity - The net cash flow from operating activities increased by 18.19% to ¥33,410,039.61 from ¥26,063,213.71 in the same period last year[7] - As of March 31, 2021, cash and cash equivalents increased by 42.15% to ¥171,077,349.22 from ¥120,352,648.68 at the end of 2020, primarily due to increased net cash from operating activities[18] - Cash received from sales of goods and services was 306.07 million CNY, reflecting a 64.37% increase[20] - Cash inflow from investment activities totaled ¥473,377,455.69, a substantial rise from ¥15,000,000.00 in the previous period[61] - The net cash flow from investment activities was ¥11,899,380.67, recovering from a negative cash flow of -¥71,671,797.05 in the prior period[61] - Cash and cash equivalents at the end of the period amounted to ¥171,077,349.22, up from ¥62,079,634.78 at the end of the previous period, marking an increase of approximately 175%[62] - The net increase in cash and cash equivalents for the current period was ¥50,727,009.51, contrasting with a decrease of -¥12,448,765.80 in the previous period[62] Assets and Liabilities - The total assets at the end of the reporting period were ¥1,918,513,446.99, representing a 1.92% increase from ¥1,882,464,255.08 at the end of the previous year[7] - The total liabilities amounted to CNY 419,245,812.97, compared to CNY 398,834,611.02 previously[45] - The company's accounts receivable amounted to 264 million RMB, accounting for 14.03% of the audited total assets for 2020[26] - The total current assets of the company as of March 31, 2021, were CNY 965.78 million, a decrease from CNY 971.63 million on December 31, 2020, reflecting a decline of approximately 0.6%[43] - The total non-current assets for the first quarter of 2021 were ¥1,014,892,438.55, with long-term equity investments at ¥924,529,075.58[72] Government Support and Subsidies - The company received government subsidies amounting to ¥10,178,084.74 during the reporting period, primarily related to business-related government support[8] - The company received government subsidies amounting to 10.18 million CNY, an increase of 34.36% year-on-year[20] Strategic Direction and Business Segments - The company plans to continue focusing on military equipment, communication electronics, and new generation comprehensive electronic information as part of its strategic direction[21] - The company has established five major business segments: military equipment, 5G RF, IoT perception, industry big data, and digital ocean, to enhance strategic integration[27] - The company aims to expand its civilian communication electronic product capacity, leveraging the significant opportunities presented by 5G communication construction in China[25] Risk Management and Internal Controls - The company aims to enhance its internal control mechanisms and subsidiary management systems to mitigate management risks associated with rapid growth and acquisitions[24] - The company is actively managing accounts receivable risks by classifying customer risk levels and enhancing collection efforts[26] - The company acknowledges the risks posed by international political and economic uncertainties, particularly due to U.S. export controls affecting its clients and suppliers[27] Research and Development - The company is focusing on enhancing its R&D capabilities and market validation to mitigate risks associated with new technology development[27] - Research and development expenses increased to CNY 16,765,164.78 in Q1 2021, compared to CNY 15,744,101.36 in the previous year, reflecting a growth of approximately 6.5%[52] Investments and Asset Restructuring - The company has completed the share transfer procedures for a major asset restructuring approved by the China Securities Regulatory Commission, with the new shares listed on February 5, 2021[28] - The company received approval from the China Securities Regulatory Commission for the issuance of shares to purchase assets and raise matching funds, with the transaction involving a 49.016% stake in Nanjing Biao and a 40% stake in Huayang Communication[32] - The company is actively engaging with investors to advance the fundraising efforts related to the asset purchase[32] New Projects and Initiatives - The company plans to invest 1.69981 billion RMB in the construction of the 5G Communications Industrial Park project, covering an area of approximately 260 acres[29] - The company has initiated the 5G circulator expansion project within the 5G industrial park, which has received necessary approvals and environmental impact assessments[31] - The company established a subsidiary, Xi'an Tianhe Jia Mo Industrial Materials Co., Ltd., with a registered capital of CNY 15 million, in which the company holds a 70% stake, focusing on the R&D, production, and sales of electronic packaging materials[33] - The company jointly invested in the establishment of Copper River Guangsu Chip Material Technology Co., Ltd. with a registered capital of CNY 10 million, where the company holds a 34% stake, aimed at developing high-performance copper-clad laminates and environmentally friendly circuit board processes[33]

Financial Performance - The company's operating revenue for 2020 was ¥1,222,639,512.74, representing a 40.89% increase compared to ¥867,780,083.99 in 2019[15] - The net profit attributable to shareholders was ¥102,900,853.73, showing an increase of 18.58% from ¥86,780,003.78 in the previous year[15] - The net profit after deducting non-recurring gains and losses was ¥94,545,133.08, which is a 56.08% increase from ¥60,576,630.53 in 2019[15] - The cash flow from operating activities reached ¥334,043,574.04, marking a significant increase of 311.66% from ¥81,146,446.72 in 2019[15] - The total assets at the end of 2020 were ¥1,882,464,255.08, a 4.94% increase from ¥1,793,803,565.27 at the end of 2019[15] - The net assets attributable to shareholders increased by 9.18% to ¥1,240,529,239.15 from ¥1,136,174,492.13 in 2019[15] - The basic earnings per share for 2020 were ¥0.24, a 20.00% decrease from ¥0.36 in 2019[15] - The diluted earnings per share also stood at ¥0.24, reflecting the same decrease as the basic earnings per share[15] - The weighted average return on equity was 8.61%, up from 7.94% in the previous year[15] - The total profit for the year was 239 million yuan, up 41.67% year-on-year[44] Revenue Breakdown - Total revenue for the first quarter was approximately ¥284.79 million, with a peak in the second quarter at ¥417.74 million, followed by ¥238.36 million in the third quarter and ¥281.75 million in the fourth quarter[18] - Net profit attributable to shareholders was ¥24.63 million in the first quarter, reaching ¥37.87 million in the second quarter, then declining to ¥20.84 million in the third quarter and ¥19.55 million in the fourth quarter[18] - The company achieved a revenue of 1.223 billion yuan in 2020, an increase of 40.89% compared to the previous year[44] - The 5G RF business segment generated an annual sales revenue of ¥1,140,000,000, up 62.92% from the previous year, with a net profit of ¥225,000,000[46] - The electronic components manufacturing sector accounted for 85.48% of total revenue, with a significant increase of 67.27% year-on-year[54] - Domestic sales contributed 92.45% of total revenue, increasing by 45.08% from the previous year, while international sales accounted for 7.55% with a slight increase of 4.13%[55] Investment and R&D - The company's construction in progress increased by 38,824,545.82 yuan, a growth of 130.11%, primarily due to investments in the 5G communication industry park[32] - Development expenditures rose by 13,148,903.28 yuan, a 60.86% increase, driven by increased investment in 5G RF chip and military technology R&D projects[32] - The company maintains a strong R&D focus, with significant investments in technology innovation and numerous patents obtained[38] - The company has committed to increasing its R&D budget to 400 million yuan in 2021, a 20% increase from 2020[156] - Investment in R&D increased by 30% in 2020, focusing on developing advanced defense technologies and enhancing product offerings[150] Strategic Focus and Market Development - The company has integrated its resources into three main business systems: military equipment, communication electronics, and new generation comprehensive electronic information[25] - The company focuses on developing a new generation of comprehensive short-range defense systems and expanding into digital military applications and 5G military applications[25] - The company aims to provide solutions for smart cities and environmental protection through IoT sensing and edge computing technologies[26] - The company plans to enhance its R&D efforts and expand its product range to maintain and grow market share[119] - The company is focusing on the development of 5G IoT sensing and industry big data applications, indicating a strategic shift towards advanced technology solutions[100] Subsidiaries and Partnerships - The company has established partnerships with over 30 countries under the Belt and Road Initiative, with nine system-level military trade projects initiated[39] - The company has a complete industrial layout with 14 subsidiaries across various regions, enhancing its operational resilience[37] - The company has expanded from 1 wholly-owned subsidiary to 8 wholly-owned and 6 controlled subsidiaries, indicating rapid growth and diversification of its business[128] - The subsidiary Xi'an Tianwei Electronics System Engineering Co., Ltd. has total assets of CNY 856,571,428.48 and net assets of CNY 706,343,045.59, contributing significantly to the company's net profit[98] Compliance and Governance - The company has committed to ensuring that all information provided during the restructuring process is true, accurate, and complete, with no misleading statements or omissions[145] - The company has adhered to all legal disclosure obligations and has not omitted any agreements or arrangements that should have been disclosed[146] - The company has implemented measures to ensure that compensation systems are linked to the execution of return measures[162] - The company has committed to maintaining clear and undisputed ownership of its shares in Huayang Communication, with no existing pledges, freezes, or disputes as of the date of the commitment letter[176] Future Outlook - The company provided a positive outlook for 2021, projecting a revenue growth of 25% driven by new product launches and market expansion strategies[149] - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2023[151] - The company aims to enhance its product performance and innovation capabilities in response to the modernization of military equipment and technology upgrades[112] - The company has set a performance guidance of 1.75 billion RMB in revenue for the next fiscal year, reflecting a strong growth trajectory[184]

Financial Performance - The company's operating revenue for 2019 was approximately ¥867.78 million, representing a 228.72% increase compared to ¥263.99 million in 2018[17]. - The net profit attributable to shareholders for 2019 was approximately ¥86.78 million, a significant recovery from a net loss of ¥170.22 million in 2018[17]. - The net cash flow from operating activities for 2019 was approximately ¥81.15 million, compared to a negative cash flow of ¥213.66 million in 2018[17]. - The total assets at the end of 2019 were approximately ¥1.79 billion, an increase of 28.08% from ¥1.40 billion at the end of 2018[17]. - The net assets attributable to shareholders at the end of 2019 were approximately ¥1.14 billion, an increase of 8.19% from ¥1.05 billion at the end of 2018[17]. - The basic earnings per share for 2019 was ¥0.36, recovering from a loss of ¥0.71 per share in 2018[17]. - The weighted average return on equity for 2019 was 7.94%, a significant improvement from -14.96% in 2018[17]. - The company reported a quarterly revenue of ¥294.97 million in Q4 2019, showing a consistent growth trend throughout the year[19]. - The net profit attributable to shareholders in Q4 2019 was approximately ¥32.43 million, indicating strong performance in the last quarter[19]. - The company reported a net profit of 26,203,373.25 yuan for the year 2019, a significant increase from 13,597,986.79 yuan in 2018, representing a year-over-year growth of approximately 93.5%[23]. Business Development and Strategy - The company has developed a dual-use "All-Domain Intelligent Perception Big Data System," which has been promoted in various regions including Shaanxi, Hainan, and Yunnan, achieving certain progress with successful demonstration projects in Hainan[27]. - The military products business experienced substantial growth during the reporting period, driven by the demand for 5G-related products, which also saw rapid growth[29]. - The company is advancing the development of 5G communication RF microwave passive devices and high-integration microwave SOC chips, with self-developed switches, LNAs, and small signal amplifiers entering small batch verification stage[28]. - The company has established three major business systems: "Comprehensive Electronic Information," "Advanced Communication and IoT," and "Smart Ocean," along with five major business segments including military equipment and intelligent security[27]. - The company’s production model is based on a "small core, large collaboration" approach, ensuring compliance with strict national military standards for military products[29]. - The company’s sales model combines market demand-driven strategies with comprehensive services including design solutions, equipment development, and after-sales support[30]. - The company has implemented a complete supply chain management system to ensure rapid response to strategic business needs, with a qualified supplier list for military products[31]. - The company has established a ten-year technology development plan and a five-year product development plan, focusing on military and civilian integration[45]. - The company is actively pursuing military research procurement orders and has made progress in several military pre-research projects[66]. Revenue and Market Expansion - The company achieved operating revenue of ¥86,778.01 million, a year-on-year increase of 228.72%, and net profit of ¥14,659.02 million, marking a turnaround to profitability[41]. - The communication electronics segment saw significant market breakthroughs, supplying six major global equipment manufacturers and expanding production capacity[43]. - The international market has shown positive growth, with foreign revenue reaching ¥88,680,023.58, a 106.54% increase from ¥42,937,016.99 in the previous year[51]. - Domestic revenue reached approximately ¥772.37 million, representing a year-on-year increase of 258.24%[54]. - The company is targeting the 5G market, aiming to provide qualified products to major telecom equipment manufacturers like Huawei, ZTE, and Samsung[126]. - The company is actively pursuing market opportunities in the defense equipment sector, particularly in information technology and military modernization[116]. Research and Development - The company is focused on research and development in radio frequency and millimeter-wave technology[88]. - The company has maintained a high level of R&D investment, focusing on innovation to enhance market competitiveness and optimize product structure[129]. - The company is actively involved in the research and development of electronic products, software, and hardware, aiming to expand its technological capabilities[106]. - The company is focusing on integrating its capabilities in the integrated circuit and electronic device sectors to enhance its market position[116]. Financial Management and Investments - The company reported a government subsidy of 19,557,677.45 yuan in 2019, up from 14,624,639.62 yuan in 2018, indicating a 33.3% increase[23]. - The company’s non-recurring gains and losses totaled 26,203,373.25 yuan in 2019, compared to 13,597,986.79 yuan in 2018, reflecting a significant increase in non-operating income[23]. - The company’s total revenue for the reporting period reached ¥867,780,083.99, representing a significant increase of 228.72% compared to ¥263,987,162.81 in the previous year[50]. - The company has made significant advancements in its military product orders, with steady progress in key model products and successful contract execution[44]. - The company has engaged in wealth management activities, with a total investment of CNY 20,810,000 in bank financial products, all of which were reported to be performing without any overdue amounts[181]. Corporate Governance and Compliance - The company has not faced any bankruptcy reorganization matters during the reporting period[157]. - The company has not encountered any major litigation or arbitration matters during the reporting period[158]. - The company has not issued any non-standard audit reports during the reporting period[153]. - The company has retained the domestic accounting firm Tianjian CPA for audit services, with a fee of CNY 700,000, and has provided services for 9 consecutive years[156]. - The company has not made any commitments to small and medium shareholders that were not fulfilled on time[151]. Social Responsibility and Community Engagement - The company has actively participated in educational poverty alleviation, helping one rural student from a poor family to attend university with an investment of CNY 0.3 million[191]. - The company has invested CNY 1.5 million in various poverty alleviation initiatives during the reporting period[191]. Future Outlook - The company aims to leverage the national military-civilian integration strategy to enhance its market position and technological capabilities over the next decade[123]. - The company plans to invest CNY 169,981 million in the construction of the second phase of the Xi'an High-tech Tianhe Defense 5G Communication Industrial Park project, covering an area of approximately 260 acres[195]. - The company’s 2020 revenue target is set at no less than 1.3 billion RMB, with a maximum expense growth rate of 20%[124].

西安天和防务技术股份有限公司 2020 年第三季度报告全文 西安天和防务技术股份有限公司 2020 年第三季度报告 2020 年 10 月 1 西安天和防务技术股份有限公司 2020 年第三季度报告全文 第一节 重要提示 公司董事会、监事会及除以下存在异议声明的董事、监事、高级管理人员 外的其他董事、监事、高级管理人员均保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人贺增林、主管会计工作负责人彭华及会计机构负责人(会计主管 人员)魏玉芬声明：保证季度报告中财务报表的真实、准确、完整。 西安天和防务技术股份有限公司 2020 年第三季度报告全文 √ 适用 □ 不适用 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 1,937,826,587.44 | 1,793,803,565.27 ...

Financial Performance - The company's operating revenue for the reporting period reached ¥702,528,937.81, representing a 97.72% increase compared to ¥355,311,109.99 in the same period last year[16]. - Net profit attributable to shareholders was ¥62,503,467.57, up 41.81% from ¥44,075,894.71 year-on-year[16]. - The net profit after deducting non-recurring gains and losses was ¥67,300,113.92, reflecting a significant increase of 109.43% compared to ¥32,134,695.97 in the previous year[16]. - The basic earnings per share rose to ¥0.14, a 40.00% increase from ¥0.10 in the same period last year[16]. - Operating profit for the first half of 2020 was ¥151,902,373.65, up 105.1% from ¥73,647,917.09 in the first half of 2019[176]. - The total comprehensive income for the first half of 2020 was a loss of approximately ¥13.57 million, compared to a loss of ¥9.57 million in the same period of 2019[183]. - The company reported a net loss of approximately 17.52 million yuan for the first half of 2020[197]. Assets and Liabilities - Total assets at the end of the reporting period amounted to ¥2,022,326,263.13, marking a 12.74% increase from ¥1,793,803,565.27 at the end of the previous year[16]. - The total liabilities increased to ¥614,311,952.03 from ¥529,083,566.86, reflecting an increase of about 16.1%[168]. - The company's total equity rose to CNY 1,408,014,311.10 from CNY 1,264,719,998.41, indicating an increase of approximately 11.3%[169]. - The total amount of restricted assets at the end of the reporting period is CNY 65.2996 million[56]. - The total liabilities at the end of the current period were 432.00 million yuan, indicating a stable financial position[191]. Cash Flow - The net cash flow from operating activities was ¥64,035,772.56, showing a slight decrease of 3.01% compared to ¥66,020,419.65 in the previous year[16]. - The net cash flow from financing activities was ¥10.79 million in the first half of 2020, a recovery from a net outflow of ¥4.61 million in the same period of 2019[184]. - The company reported a net cash outflow from investment activities of ¥38.31 million in the first half of 2020, compared to a smaller outflow of ¥29.10 million in the same period of 2019[183]. Research and Development - The company’s research and development expenses increased by CNY 9,939,056.45, a growth of 46.00%, attributed to the acquisition of patents and the capitalization of technological achievements[29]. - R&D investment totaled 47.03 million yuan, representing a 39.04% increase year-on-year, with 41 patents applied for during the reporting period[43]. - The company is focusing on the development of big data technology and intelligent network control systems[75]. - The company will continue to enhance its research and development capabilities and collaborate with universities and research institutions to maintain technological leadership[85]. Business Strategy and Operations - The company has established three major business systems: "Comprehensive Electronic Information," "Advanced Communication and IoT," and "Digital Ocean," along with five major business segments[23]. - The company’s core business includes military equipment, smart security, comprehensive electronics, communication electronics, and intelligent maritime defense[23]. - The company aims to implement the "Tianrong Project" to support national innovation capabilities in the digital field, focusing on disruptive technological innovation and key 5G communication technologies[32]. - The company is actively engaged in mergers and acquisitions to enhance its technological capabilities and market reach[80]. Risk Management - The company emphasizes the importance of risk management and has detailed its potential risks and countermeasures in the report[4]. - The company plans to strengthen its internal control mechanisms and subsidiary management systems to mitigate management risks[83]. - The company is facing risks related to the approval of major asset restructuring, which requires shareholder and regulatory approvals[85]. Shareholder Information - The major shareholder, He Zenglin, holds 30.09% of the shares, with a total of 129,971,700 shares after a reduction of 56,565,200 shares during the reporting period[145]. - The company has a total of 31,857 shareholders at the end of the reporting period[145]. - The company is in compliance with the necessary regulatory approvals for its share issuance and capital increase plans[140]. Legal Matters - The company is currently involved in a lawsuit regarding a payment dispute amounting to 170.74 million yuan, which has been accepted by the court and is in the execution phase[104]. - The company has successfully won a lawsuit against a party for payment disputes, which has now moved to the execution stage[104]. - The company is involved in multiple lawsuits, including a labor dispute with an employee amounting to 24.88 million yuan and another with a subsidiary totaling 124.22 million yuan[106]. Social Responsibility - The company is committed to fulfilling its social responsibility in poverty alleviation and will continue to participate in related initiatives[131].

Financial Performance - Total operating revenue for Q1 2020 was ¥284,787,257.24, representing a 72.99% increase compared to ¥164,630,593.18 in the same period last year[7] - Net profit attributable to shareholders was ¥24,628,793.08, up 10.09% from ¥22,371,228.40 year-on-year[7] - Net profit excluding non-recurring gains and losses decreased by 14.67% to ¥17,725,807.14 from ¥20,772,857.99 in the previous year[7] - Basic earnings per share increased to ¥0.10, up 11.11% from ¥0.09[7] - The company's net profit for the reporting period was CNY 24.63 million, an increase of CNY 2.26 million, or 10.09% year-on-year[19] - Operating revenue reached CNY 284.79 million, a significant increase of 72.99% compared to CNY 164.63 million in the previous year[17] - The total operating profit for Q1 2020 was approximately ¥56.96 million, compared to ¥34.09 million in Q1 2019, representing a growth of 67.5%[62] - The net profit for Q1 2020 reached ¥50.53 million, an increase of 78.1% from ¥28.39 million in the same period last year[62] - The total comprehensive income for Q1 2020 was ¥50.53 million, compared to ¥28.39 million in Q1 2019, marking an increase of 78.1%[63] Cash Flow and Assets - The net cash flow from operating activities was ¥26,063,213.71, a significant improvement from a negative cash flow of ¥11,174,769.58 in the same period last year[7] - Cash received from sales of goods and services rose by 105.82% to CNY 186.20 million, reflecting improved cash collection[18] - Cash inflows from operating activities amounted to approximately ¥203.97 million, significantly higher than ¥97.37 million in the previous year, representing a growth of 109.0%[69] - The company reported a cash inflow from financing activities of CNY 34,180,000.00, compared to CNY 1,400,000.00 in the same period last year[71] - The company experienced a net decrease in cash and cash equivalents of CNY 12,448,765.80 during the quarter[71] - The company's cash and cash equivalents decreased from 142,221,278.44 yuan at the end of 2019 to 129,772,512.64 yuan by March 31, 2020[52] - The company has a total of 1,068,515,263.49 yuan in current assets as of March 31, 2020, compared to 956,003,130.83 yuan at the end of 2019[52] Liabilities and Equity - Total liabilities increased to CNY 118,872,222.40 from CNY 107,362,748.62 year-on-year[58] - The total equity attributable to shareholders rose to CNY 964,436,037.62 from CNY 969,086,824.95[58] - The company’s total liabilities included short-term borrowings of CNY 31,000,000.00 as of December 31, 2019[77] - The company reported a total of CNY 240,000,000.00 in share capital[81] - The company’s retained earnings stood at CNY 183,331,994.74 as of January 1, 2020[81] Market and Growth Opportunities - The company anticipates new market opportunities as the impact of the COVID-19 pandemic lessens, particularly in military products and 5G business[19] - The company aims to enhance its marketing service capabilities and increase market share in response to national policy directions and technological advancements[19] - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2021[40] - A strategic acquisition of a competitor is under consideration, which could potentially increase market share by 15%[41] Research and Development - Investment in new technology development increased by 30% year-over-year, with a focus on enhancing product capabilities[39] - The company has established a partnership with a leading tech firm to enhance its R&D capabilities, aiming for a 20% increase in innovation output[37] - The company’s research and development expenses for Q1 2020 were ¥2.19 million, compared to ¥1.12 million in Q1 2019, reflecting an increase of 95.5%[65] Contracts and Orders - The company has signed significant contracts, including a portable air defense missile command system with a domestic military unit, although specific contract amounts were not disclosed[20] - The total amount of new orders during the reporting period was 493.66 million RMB, with an unexecuted order amount of 389.29 million RMB as of March 31, 2020[21] Operational Challenges - The ongoing COVID-19 pandemic has caused delays in operations and may impact the company's production and performance[29] - The company is currently in the preparatory stage for a major asset restructuring, which is subject to shareholder and regulatory approval[28]

Financial Performance - The company's operating revenue for 2019 was approximately ¥867.78 million, representing a 228.72% increase compared to ¥263.99 million in 2018[17]. - The net profit attributable to shareholders was approximately ¥86.78 million, a significant recovery from a loss of ¥170.22 million in the previous year[17]. - The net profit after deducting non-recurring gains and losses was approximately ¥60.58 million, compared to a loss of ¥183.81 million in 2018[17]. - The net cash flow from operating activities was approximately ¥81.15 million, a recovery from a negative cash flow of ¥213.66 million in 2018[17]. - The total assets at the end of 2019 were approximately ¥1.79 billion, an increase of 28.08% from ¥1.40 billion at the end of 2018[17]. - The net assets attributable to shareholders increased by 8.19% to approximately ¥1.14 billion from ¥1.05 billion in 2018[17]. - The basic earnings per share for 2019 was ¥0.36, recovering from a loss of ¥0.71 per share in 2018[17]. - The weighted average return on equity was 7.94%, a significant improvement from -14.96% in the previous year[17]. - The company achieved a revenue of ¥86,778.01 million, a year-on-year increase of 228.72%, and net profit of ¥14,659.02 million, with a net profit attributable to the parent company of ¥8,678.00 million, marking a turnaround from loss to profit[41]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of ¥0.73 per 10 shares, with a capital reserve conversion of 8 shares for every 10 shares held[4]. - The company’s cash dividend policy was deemed compliant with the requirements of the shareholders' meeting and the company's articles of association[139]. - The company’s net profit attributable to shareholders was negative in 2018, leading to no cash dividends being distributed for that year[138]. - The company has not proposed any cash dividend distribution plan for the year 2019, pending approval from the annual shareholders' meeting[142]. - The company's retained earnings as of December 31, 2019, amounted to RMB 86,780,003.78, with the entire cash dividend amounting to 100% of the profit distribution total[139]. Business Development and Strategy - The company has outlined potential risks and countermeasures in its future development outlook section[4]. - The company is focusing on the development of underwater autonomous vehicles (AUVs) and multi-parameter detection systems to provide comprehensive digital solutions for marine environmental sensing[28]. - The company’s core business segments include military equipment, intelligent security, comprehensive electronics, communication electronics, and intelligent marine defense[27]. - The company has established a complete supply chain management system to ensure rapid response to strategic business needs[31]. - The company has established a ten-year technology development plan and a five-year product development plan, optimizing its R&D structure and management processes[45]. - The company is actively pursuing opportunities in the marine monitoring sector, which is expected to see significant investment growth under the national marine power strategy[121]. - The company is committed to advancing the "Tianrong Project" to enhance its market presence and achieve scale benefits in various industry applications[126]. Research and Development - The company is increasing its R&D investment to drive innovation and optimize product structure, focusing on key technologies such as AI, 5G, and data security[130]. - The company’s R&D investment in 2019 was approximately ¥91.82 million, accounting for 10.58% of its operating revenue, a significant decrease from 33.55% in 2018 due to a substantial increase in revenue[69]. - Key technological innovations include over 30 critical technologies in areas such as video pattern recognition and artificial intelligence algorithms, supporting various military and civilian products[46]. - The company is enhancing its technical research and development capabilities by collaborating with universities and research institutions to maintain a competitive edge[134]. Market Performance - The company’s military products business experienced significant growth during the reporting period, driven by advancements in 5G-related business[29]. - The communication electronics segment saw significant growth, supplying six major global equipment manufacturers and expanding production capacity[43]. - The international market has shown positive development, particularly in military trade and aviation products, with a focus on the "Belt and Road" initiative[44]. - Domestic revenue accounted for 89.78% of total revenue, amounting to ¥779,100,060.41, while international revenue was ¥88,680,023.58, representing 10.22%[51]. Subsidiaries and Investments - The company established a wholly-owned subsidiary in Hainan with an investment of ¥100,000,000 to focus on 5G and defense-related applications[86]. - The company has seven wholly-owned subsidiaries and seven holding subsidiaries, expanding its operational footprint in various technology sectors[108]. - The company completed the acquisition of 100% equity in Xi'an Pengjia Electronic Technology Co., Ltd. for CNY 1,000,000 to expand sales channels and enhance product depth and user stickiness[199]. Compliance and Governance - The company has improved its corporate governance structure and risk management capabilities, enhancing operational efficiency and resource allocation[47]. - The company has adhered to commitments regarding non-competition and related party transactions, ensuring business independence and asset integrity[151]. - The company has maintained compliance with all relevant laws and regulations regarding shareholding and capital management[150]. - The company has not reported any non-standard audit opinions for the current reporting period[154]. Social Responsibility - The company has actively participated in social responsibility initiatives, including educational support for impoverished students in Shaanxi Province[190]. - The company has committed to social poverty alleviation efforts, including purchasing agricultural products from impoverished households[191]. - The company has provided financial support of CNY 300,000 for impoverished students, benefiting 1 student[194].

[Part I Important Notice](index=2&type=section&id=Part%20I%20Important%20Notice) This section confirms the truthfulness, accuracy, and completeness of the quarterly report, with all directors attending the review and key personnel guaranteeing financial statement integrity [Important Notice](index=2&type=section&id=Important%20Notice) The Board of Directors, Supervisory Board, and senior management guarantee the quarterly report's truthfulness, accuracy, and completeness, with all directors and key financial personnel affirming the financial statements - The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, assuming individual and joint legal responsibility[3](index=3&type=chunk) - All directors attended the Board of Directors meeting to review this quarterly report[4](index=4&type=chunk) - Company head He Zenglin, chief accountant Peng Hua, and head of accounting department Wei Yufen declare that the financial statements in the quarterly report are true, accurate, and complete[4](index=4&type=chunk) [Part II Company Profile](index=3&type=section&id=Part%20II%20Company%20Profile) This section details the company's key financial performance, shareholder structure, and changes in restricted shares during the reporting period [I. Key Accounting Data and Financial Indicators](index=3&type=section&id=I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company reported significant year-on-year growth in total assets, net assets, operating revenue, and net profit, alongside improved basic earnings per share and detailed non-recurring gains and losses Key Accounting Data and Financial Indicators (As of September 30, 2019) | Indicator | End of Reporting Period/Year-to-Date (CNY) | End of Prior Year/Prior Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | **Balance Sheet Items** | | | | | Total Assets | 1,605,362,930.85 | 1,400,525,683.44 | 14.63% | | Net Assets Attributable to Shareholders of Listed Company | 1,103,963,715.97 | 1,050,212,822.15 | 5.12% | | **Income Statement Items** | | | | | Operating Revenue (Year-to-Date) | 572,808,203.83 | 141,094,217.77 | 305.98% | | Net Profit Attributable to Shareholders of Listed Company (Year-to-Date) | 54,352,826.77 | -73,445,692.12 | 174.00% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains and Losses, Year-to-Date) | 40,387,579.51 | -80,470,171.00 | 150.25% | | Net Cash Flow from Operating Activities (Year-to-Date) | 1,356,371.05 | -233,077,044.11 | 100.58% | | Basic Earnings Per Share (Year-to-Date) | 0.2265 | -0.3060 | 174.02% | | Weighted Average Return on Net Assets (Year-to-Date) | 5.05% | -7.20% | 11.25% | Non-Recurring Gains and Losses (Year-to-Date) | Item | Amount (CNY) | Description | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | -88,398.51 | | | Government Grants Recognized in Current Profit/Loss | 4,917,002.25 | Primarily government subsidies received, recognized as other income according to accounting standards | | Gains/Losses from Entrusted Investments or Asset Management | 1,490,574.98 | Primarily income from wealth management products purchased from banks | | Reversal of Impairment Provisions for Receivables and Contract Assets Subject to Separate Impairment Testing | 10,847,225.25 | Reversal of impairment provisions for accounts receivable previously subject to separate impairment testing | | Other Non-Operating Income and Expenses Apart from the Above | 428,963.68 | | | Less: Income Tax Impact | 2,887,361.97 | | | Impact on Minority Interests (After Tax) | 743,058.42 | | [II. Total Number of Shareholders and Top Ten Shareholders' Holdings at Period-End](index=4&type=section&id=II.%20Total%20Number%20of%20Shareholders%20and%20Top%20Ten%20Shareholders%27%20Holdings%20at%20Period-End) As of the reporting period end, the company had 29,821 common shareholders, with controlling shareholders holding significant pledged shares, and related party relationships disclosed - Total number of common shareholders at the end of the reporting period: **29,821**[11](index=11&type=chunk) Top 10 Shareholders' Holdings (As of September 30, 2019) | Shareholder Name | Shareholder Nature | Shareholding (%) | Number of Shares Held | Number of Restricted Shares Held | Pledged or Frozen Shares (Number) | | :--- | :--- | :--- | :--- | :--- | :--- | | He Zenglin | Domestic Natural Person | 37.09% | 89,006,500 | 73,253,175 | Pledged 86,694,000 | | Liu Danying | Domestic Natural Person | 4.67% | 11,203,200 | 8,731,800 | Pledged 10,392,400 | | Zhang Jianfei | Domestic Natural Person | 1.33% | 3,201,473 | 0 | - | | Wu Hongwei | Domestic Natural Person | 1.22% | 2,920,000 | 0 | - | | Nie Xinyong | Domestic Natural Person | 1.17% | 2,810,134 | 0 | - | | Zhang Faqun | Domestic Natural Person | 1.09% | 2,624,600 | 1,968,450 | - | | Lu Yanlong | Domestic Natural Person | 1.00% | 2,400,000 | 0 | - | | Wang Jian | Domestic Natural Person | 0.89% | 2,142,797 | 0 | Pledged 2,142,700 | | Weng Renyuan | Domestic Natural Person | 0.84% | 2,010,500 | 0 | - | | Guo Wang | Domestic Natural Person | 0.59% | 1,418,000 | 0 | - | - The company's controlling shareholder and actual controller, Mr. He Zenglin, and Ms. Liu Danying are a married couple, and Mr. Zhang Faqun is a director and deputy general manager of the company[12](index=12&type=chunk) [III. Changes in Restricted Shares](index=5&type=section&id=III.%20Changes%20in%20Restricted%20Shares) At the end of the reporting period, the company's total restricted shares amounted to **85,998,875**, primarily comprising shares locked by directors and senior executives, with specific unlocking schedules Changes in Restricted Shares (As of September 30, 2019) | Shareholder Name | Restricted Shares at Beginning of Period | Restricted Shares Unlocked This Period | Restricted Shares Increased This Period | Restricted Shares at End of Period | Reason for Restriction | Proposed Unlocking Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | He Zenglin | 73,253,175 | 0 | 0 | 73,253,175 | Director/Senior Executive Locked Shares | 25% of shares held at year-end unlocked at the beginning of each year | | Liu Danying | 8,731,800 | 0 | 0 | 8,731,800 | Quasi-Senior Executive Locked Shares | 25% of shares held at year-end unlocked at the beginning of each year | | Zhang Faqun | 1,968,450 | 0 | 0 | 1,968,450 | Director/Senior Executive Locked Shares | 25% of shares held at year-end unlocked at the beginning of each year | | Chen Jianfeng | 120,150 | 0 | 0 | 120,150 | Director Locked Shares | 25% of shares held at year-end unlocked at the beginning of each year | | He Zengyong | 102,600 | 0 | 0 | 102,600 | Quasi-Senior Executive Locked Shares | 25% of shares held at year-end unlocked at the beginning of each year | | Wang Baohua | 822,150 | 0 | 274,050 | 1,096,200 | Senior Executive Locked Shares Due to Expiry of Term | Locked for 6 months from resignation date, then unlocked | | Zhang Guanrang | 105,300 | 0 | 35,100 | 140,400 | Senior Executive Locked Shares Due to Expiry of Term | Locked for 6 months from resignation date, then unlocked | | Wang Shuanzhu | 341,700 | 0 | 113,900 | 455,600 | Senior Executive Locked Shares Due to Expiry of Term | Locked for 6 months from resignation date, then unlocked | | Zhang Lei | 19,575 | 0 | 6,525 | 26,100 | Supervisor Locked Shares Due to Expiry of Term | Locked for 6 months from resignation date, then unlocked | | Wang Zhenping | 104,400 | 0 | 0 | 104,400 | Resigned Senior Executive Locked Shares | Within the original term and 6 months after its expiry, the number of shares transferred annually shall not exceed 25% of the company shares held | | Total | 85,569,300 | 0 | 429,575 | 85,998,875 | -- | -- | [Part III Significant Events](index=7&type=section&id=Part%20III%20Significant%20Events) This section outlines major financial data changes, progress on significant projects, unfulfilled commitments, cash dividend policy, and warnings regarding cumulative net profit [I. Significant Changes in Key Financial Data and Indicators During the Reporting Period and Reasons](index=7&type=section&id=I.%20Significant%20Changes%20in%20Key%20Financial%20Data%20and%20Indicators%20During%20the%20Reporting%20Period%20and%20Reasons) The company experienced substantial changes in balance sheet, income statement, and cash flow items, driven by asset acquisitions, revenue growth from 5G and military products, and new accounting standards Significant Changes in Balance Sheet Items and Reasons (As of September 30, 2019 vs. December 31, 2018) | Item | September 30, 2019 (CNY) | December 31, 2018 (CNY) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 92,281,741.54 | 195,912,986.75 | -52.90% | Due to increased purchases of fixed assets and other long-term assets | | Financial Assets Held for Trading | 2,500,000.00 | N/A | N/A | Reclassification of floating-rate wealth management products under new financial instrument standards | | Accounts Receivable | 320,883,393.51 | 165,633,495.24 | 93.73% | Increase in receivables due to increased revenue | | Inventories | 245,773,544.05 | 184,955,783.77 | 32.88% | Increase in raw materials required due to capacity enhancement and increase in goods dispatched | | Development Expenditures | 12,754,469.57 | 4,007,575.21 | 218.26% | R&D projects obtaining patents and achieving technological transformation, capitalized | | Taxes Payable | 22,972,649.43 | 3,681,253.07 | 524.04% | Increase in corporate income tax payable due to increased net profit | Significant Changes in Income Statement Items and Reasons (January-September 2019 vs. January-September 2018) | Item | January-September 2019 (CNY) | January-September 2018 (CNY) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 572,808,203.83 | 141,094,217.77 | 305.98% | Due to increased communication electronics revenue from 5G products and military product revenue | | Net Profit Attributable to Shareholders of Listed Company | 54,352,826.77 | -73,445,692.12 | 174.00% | | | Credit Impairment Losses | -3,165,073.45 | N/A | N/A | Reporting of financial asset impairment provisions under new financial instrument standards | | Asset Impairment Losses | 0 | -27,308,645.31 | -100.00% | Reversal of impairment provisions for accounts receivable previously subject to separate impairment testing | | Income Tax Expense | 17,428,579.74 | -15,028,106.83 | 215.97% | Due to increased net profit | Significant Changes in Cash Flow Statement Items and Reasons (January-September 2019 vs. January-September 2018) | Item | January-September 2019 (CNY) | January-September 2018 (CNY) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Cash Received from Sales of Goods and Services | 388,614,127.82 | 140,070,705.96 | 177.44% | Increase in sales collections | | Cash Received from Disposal of Investments | 216,223,856.65 | 1,601,700,000.00 | -86.50% | Due to decreased redemption of wealth management products | | Cash Paid for Acquisition of Fixed Assets, Intangible Assets, and Other Long-Term Assets | 99,514,481.73 | 74,629,547.08 | 33.34% | Payment for land acquisition | [II. Progress, Impact, and Solutions for Significant Events](index=9&type=section&id=II.%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Events) The company is actively developing the 'Xigaoxin Tianhe Defense Phase II - 5G Communication Industrial Park Project,' having secured land parcels and progressing with subsequent administrative procedures - The company's Board of Directors on February 27, 2019, and the Shareholders' Meeting on March 15, 2019, approved the 'Proposal on Proposed Investment and Construction of Xigaoxin Tianhe Defense Phase II - 5G Communication Industrial Park Project'[21](index=21&type=chunk) - The project has a planned land area of approximately **260 mu** and a total investment of **CNY 1,699.81 million**[21](index=21&type=chunk) - As of now, on August 29, 2019, the company successfully bid for two land parcels for the project for **CNY 85.04 million** and signed a 'State-Owned Construction Land Use Rights Transfer Contract' with the Xi'an Natural Resources and Planning Bureau[21](index=21&type=chunk) [III. Unfulfilled Commitments](index=9&type=section&id=III.%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) During the reporting period, there were no overdue unfulfilled commitments by the company's actual controller, shareholders, related parties, acquirers, or the company itself - During the reporting period, there were no overdue unfulfilled commitments by the company's actual controller, shareholders, related parties, acquirers, or the company itself[22](index=22&type=chunk) [IV. Execution of Cash Dividend Policy](index=9&type=section&id=IV.%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E7%8E%B0%E9%87%91%E5%88%86%E7%BA%A2%E6%94%BF%E7%AD%96%E7%9A%84%E6%89%A7%E8%A1%8C%E6%83%85%E5%86%B5) The company did not implement a cash dividend policy during the reporting period - The company did not implement a cash dividend policy during the reporting period[23](index=23&type=chunk) [V. Warning of Significant Changes in Cumulative Net Profit](index=9&type=section&id=V.%E3%80%81%E9%A2%84%E6%B5%8B%E5%B9%B4%E5%88%9D%E8%87%B3%E4%B8%8B%E4%B8%80%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%9F%E6%9C%AB%E7%9A%84%E7%B4%AF%E8%AE%A1%E5%87%80%E5%88%A9%E6%B6%A6%E5%8F%AF%E8%83%BD%E4%B8%BA%E4%BA%8F%E6%8D%9F%E6%88%96%E8%80%85%E4%B8%8E%E4%B8%8A%E5%B9%B4%E5%90%8C%E6%9C%9F%E7%9B%B8%E6%AF%94%E5%8F%91%E7%94%9F%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E8%AD%A6%E7%A4%BA%E5%8F%8A%E5%8E%9F%E5%9B%A0%E8%AF%B4%E6%98%8E) The company has not issued a warning regarding potential cumulative net profit losses or significant changes compared to the prior year-end for the period from the beginning of the year to the end of the next reporting period - The company has not issued a warning regarding potential cumulative net profit losses or significant changes compared to the prior year-end for the period from the beginning of the year to the end of the next reporting period[23](index=23&type=chunk) [VI. Irregular External Guarantees](index=9&type=section&id=VI.%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) During the reporting period, the company had no irregular external guarantees - The company had no irregular external guarantees during the reporting period[23](index=23&type=chunk) [VII. Non-Operating Fund Occupation by Controlling Shareholder and Related Parties](index=10&type=section&id=VII.%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) During the reporting period, there was no non-operating occupation of funds by the controlling shareholder or its related parties from the listed company - During the reporting period, there was no non-operating occupation of funds by the controlling shareholder or its related parties from the listed company[24](index=24&type=chunk) [Part IV Financial Statements](index=11&type=section&id=Part%20IV%20Financial%20Statements) This section presents the company's consolidated and parent company financial statements, including balance sheets, income statements, and cash flow statements, along with explanations for accounting adjustments [I. Financial Statements](index=11&type=section&id=I.%20Financial%20Statements) This section provides the company's consolidated and parent company balance sheets, income statements, and cash flow statements for the current period and year-to-date, detailing financial position, operating results, and cash flows [1. Consolidated Balance Sheet](index=11&type=section&id=1.%20Consolidated%20Balance%20Sheet) Consolidated Balance Sheet Key Data (As of September 30, 2019) | Item | September 30, 2019 (CNY) | December 31, 2018 (CNY) | | :--- | :--- | :--- | | Total Current Assets | 789,316,806.58 | 652,103,166.57 | | Total Non-Current Assets | 816,046,124.27 | 748,422,516.87 | | Total Assets | 1,605,362,930.85 | 1,400,525,683.44 | | Total Current Liabilities | 361,527,902.49 | 247,638,348.50 | | Total Non-Current Liabilities | 31,735,060.46 | 33,939,240.43 | | Total Liabilities | 393,262,962.95 | 281,577,588.93 | | Total Equity Attributable to Parent Company Shareholders | 1,103,963,715.97 | 1,050,212,822.15 | | Minority Interests | 108,136,251.93 | 68,735,272.36 | | Total Equity | 1,212,099,967.90 | 1,118,948,094.51 | | Total Liabilities and Equity | 1,605,362,930.85 | 1,400,525,683.44 | [2. Parent Company Balance Sheet](index=14&type=section&id=2.%20Parent%20Company%20Balance%20Sheet) Parent Company Balance Sheet Key Data (As of September 30, 2019) | Item | September 30, 2019 (CNY) | December 31, 2018 (CNY) | | :--- | :--- | :--- | | Total Current Assets | 83,861,949.61 | 613,583,595.26 | | Total Non-Current Assets | 988,794,468.46 | 419,208,947.55 | | Total Assets | 1,072,656,418.07 | 1,032,792,542.81 | | Total Current Liabilities | 80,671,242.94 | 26,969,715.54 | | Total Non-Current Liabilities | 20,804,950.54 | 21,579,950.51 | | Total Liabilities | 101,476,193.48 | 48,549,666.05 | | Total Equity | 971,180,224.59 | 984,242,876.76 | | Total Liabilities and Equity | 1,072,656,418.07 | 1,032,792,542.81 | [3. Consolidated Income Statement for the Current Period](index=17&type=section&id=3.%20Consolidated%20Income%20Statement%20for%20the%20Current%20Period) Consolidated Income Statement Key Data for the Current Period (Q3 2019) | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 217,497,093.84 | 59,482,986.20 | | Total Operating Costs | 179,078,061.07 | 84,271,182.37 | | Operating Profit | 37,105,505.31 | -24,221,718.07 | | Total Profit | 37,645,481.68 | -24,419,659.42 | | Net Profit | 31,108,605.56 | -19,867,625.36 | | Net Profit Attributable to Parent Company Shareholders | 10,276,932.06 | -20,964,092.19 | | Minority Interest Income/Loss | 20,831,673.50 | 1,096,466.83 | | Basic Earnings Per Share | 0.0428 | -0.0874 | | Diluted Earnings Per Share | 0.0428 | -0.0874 | [4. Parent Company Income Statement for the Current Period](index=19&type=section&id=4.%20Parent%20Company%20Income%20Statement%20for%20the%20Current%20Period) Parent Company Income Statement Key Data for the Current Period (Q3 2019) | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Operating Revenue | 517,948.94 | 6,618,808.37 | | Operating Profit | -5,874,838.53 | -7,824,413.21 | | Total Profit | -5,190,677.57 | -7,859,751.21 | | Net Profit | -3,495,983.20 | -5,314,017.20 | | Net Profit from Continuing Operations | -3,495,983.20 | -5,314,017.20 | | Total Comprehensive Income | -3,495,983.20 | -5,314,017.20 | [5. Consolidated Income Statement Year-to-Date](index=21&type=section&id=5.%20Consolidated%20Income%20Statement%20Year-to-Date) Consolidated Income Statement Key Data Year-to-Date (January-September 2019) | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 572,808,203.83 | 141,094,217.77 | | Total Operating Costs | 468,366,818.13 | 208,575,007.56 | | Operating Profit | 110,753,422.40 | -84,672,793.12 | | Total Profit | 111,182,386.08 | -84,871,483.81 | | Net Profit | 93,753,806.34 | -69,843,376.98 | | Net Profit Attributable to Parent Company Shareholders | 54,352,826.77 | -73,445,692.12 | | Minority Interest Income/Loss | 39,400,979.57 | 3,602,315.14 | | Basic Earnings Per Share | 0.2265 | -0.3060 | | Diluted Earnings Per Share | 0.2265 | -0.3060 | [6. Parent Company Income Statement Year-to-Date](index=23&type=section&id=6.%20Parent%20Company%20Income%20Statement%20Year-to-Date) Parent Company Income Statement Key Data Year-to-Date (January-September 2019) | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Operating Revenue | 887,751.96 | 10,330,531.53 | | Operating Profit | -18,952,056.44 | -14,049,184.86 | | Total Profit | -18,272,107.48 | -14,095,331.12 | | Net Profit | -13,062,652.17 | -9,332,669.71 | | Net Profit from Continuing Operations | -13,062,652.17 | -9,332,669.71 | | Total Comprehensive Income | -13,062,652.17 | -9,332,669.71 | [7. Consolidated Cash Flow Statement Year-to-Date](index=25&type=section&id=7.%20Consolidated%20Cash%20Flow%20Statement%20Year-to-Date) Consolidated Cash Flow Statement Key Data Year-to-Date (January-September 2019) | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 1,356,371.05 | -233,077,044.11 | | Net Cash Flow from Investing Activities | -107,205,677.99 | -1,779,260.25 | | Net Cash Flow from Financing Activities | 1,048,192.99 | 16,738,497.62 | | Net Increase in Cash and Cash Equivalents | -104,801,113.95 | -218,117,806.74 | | Cash and Cash Equivalents at Period-End | 16,749,052.44 | 61,618,056.57 | [8. Parent Company Cash Flow Statement Year-to-Date](index=27&type=section&id=8.%20Parent%20Company%20Cash%20Flow%20Statement%20Year-to-Date) Parent Company Cash Flow Statement Key Data Year-to-Date (January-September 2019) | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 47,192,525.76 | -188,911,068.52 | | Net Cash Flow from Investing Activities | -96,704,357.28 | 3,896,322.52 | | Net Cash Flow from Financing Activities | 0 | 0 | | Net Increase in Cash and Cash Equivalents | -49,511,831.52 | -185,014,746.00 | | Cash and Cash Equivalents at Period-End | 8,931,298.46 | 36,563,521.92 | [II. Explanation of Financial Statement Adjustments](index=29&type=section&id=II.%20Explanation%20of%20Financial%20Statement%20Adjustments) This section details the company's financial statement adjustments effective January 1, 2019, under new financial instrument standards, primarily involving reclassification and measurement of financial assets - The company adjusted relevant financial statement items upon adopting new financial instrument standards effective **January 1, 2019**[60](index=60&type=chunk) - Notes receivable of **CNY 42,921,506.94** were reclassified to receivables financing, changing from amortized cost measurement to fair value measurement[64](index=64&type=chunk) - Other current assets of **CNY 17,400,000.00** were reclassified to financial assets held for trading, changing from amortized cost measurement to fair value measurement[65](index=65&type=chunk) - The company reclassified equity investments held for over one year totaling **CNY 35,057,380.00** as 'Other Non-Current Financial Assets,' and non-trading equity investments totaling **CNY 6,000,000.00** as 'Other Equity Instruments Investments'[66](index=66&type=chunk) [1. Adjustments to Financial Statements at the Beginning of the Year Due to New Financial Instrument Standards](index=29&type=section&id=1%E3%80%812019%20%E5%B9%B4%20%E8%B5%B7%E6%89%A7%E8%A1%8C%E6%96%B0%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E5%87%86%E5%88%99%E3%80%81%E6%96%B0%E6%94%B6%E5%85%A5%E5%87%86%E5%88%99%E6%88%96%E6%96%B0%E7%A7%9F%E8%B5%81%E5%87%86%E5%88%99%E8%B0%83%E6%95%B4%E6%89%A7%E8%A1%8C%E5%BD%93%E5%B9%B4%E5%B9%B4%E5%88%9D%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9B%B8%E5%85%B3%E9%A1%B9%E7%9B%AE%E6%83%85%E5%86%B5) This subsection details the reclassification and measurement changes for financial assets on the consolidated and parent company balance sheets as of January 1, 2019, due to the adoption of new financial instrument standards Consolidated Balance Sheet Adjustments (January 1, 2019) | Item | December 31, 2018 (CNY) | January 1, 2019 (CNY) | Adjustment Amount (CNY) | | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 0 | 17,400,000.00 | 17,400,000.00 | | Notes Receivable | 42,921,506.94 | 0 | -42,921,506.94 | | Receivables Financing | 0 | 42,921,506.94 | 42,921,506.94 | | Other Current Assets | 29,366,960.09 | 11,966,960.09 | -17,400,000.00 | | Available-for-Sale Financial Assets | 41,057,380.00 | 0 | -41,057,380.00 | | Other Equity Instruments Investments | 0 | 6,000,000.00 | 6,000,000.00 | | Other Non-Current Financial Assets | 0 | 35,057,380.00 | 35,057,380.00 | Parent Company Balance Sheet Adjustments (January 1, 2019) | Item | December 31, 2018 (CNY) | January 1, 2019 (CNY) | Adjustment Amount (CNY) | | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 0 | 13,400,000.00 | 13,400,000.00 | | Other Current Assets | 19,161,122.35 | 5,761,122.35 | -13,400,000.00 | | Available-for-Sale Financial Assets | 41,057,380.00 | 0 | -41,057,380.00 | | Other Equity Instruments Investments | 0 | 6,000,000.00 | 6,000,000.00 | | Other Non-Current Financial Assets | 0 | 35,057,380.00 | 35,057,380.00 | [2. Explanation of Retrospective Adjustments for New Financial Instrument/Lease Standards](index=35&type=section&id=2%E3%80%812019%20%E5%B9%B4%20%E8%B5%B7%E6%89%A7%E8%A1%8C%E6%96%B0%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E5%87%86%E5%88%99%E6%88%96%E6%96%B0%E7%A7%9F%E8%B5%81%E5%87%86%E5%88%99%E8%BF%BD%E6%BA%AF%E8%B0%83%E6%95%B4%E5%89%8D%E6%9C%9F%E6%AF%94%E8%BE%83%E6%95%B0%E6%8D%AE%E8%AF%B4%E6%98%8E) The company did not retrospectively adjust prior comparative data for the new financial instrument or lease standards effective from 2019 - The company did not retrospectively adjust prior comparative data for the new financial instrument or lease standards effective from **2019**[73](index=73&type=chunk) [III. Audit Report](index=35&type=section&id=III.%20Audit%20Report) The company's third-quarter report is unaudited - The company's third-quarter report is unaudited[73](index=73&type=chunk)