Financial Performance - The company's operating revenue for Q3 2022 was ¥1,932,559,009.54, representing a 7.96% increase year-over-year[5] - The net profit attributable to shareholders was -¥7,150,528.79, a significant decrease of 1,694.07% compared to the same period last year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥29,630,175.78, down 63.24% year-over-year[5] - The company's operating revenue for the first three quarters reached ¥4,747,570,800.63, an increase of 8.49% year-on-year, despite challenges from recurring COVID-19 outbreaks affecting market demand and business expansion[14] - The net operating profit for Q3 2022 was reported at CNY -685,996,897.37, compared to CNY -285,506,088.84 in Q3 2021, reflecting a deeper loss year-over-year[30] - The total comprehensive income attributable to the parent company was a loss of CNY 740.66 million, compared to a loss of CNY 160.45 million in the previous year[31] Assets and Liabilities - Total assets at the end of the reporting period were ¥10,586,513,609.59, a decrease of 3.32% from the end of the previous year[6] - Total liabilities increased to CNY 3,897,860,595.44 from CNY 3,645,525,372.73, marking an increase of approximately 6.9%[29] - The equity attributable to shareholders decreased by 8.43% to ¥6,688,653,014.15 compared to the end of the previous year[6] - The company's equity attributable to shareholders decreased to CNY 6,688,653,014.15 from CNY 7,304,807,477.36, a decline of about 8.4%[29] Cash Flow - The net cash flow from operating activities was negative at -¥433,523,135.36, a decline of 426.23%, mainly due to reduced cash inflow from operations and increased cash outflow from personnel costs[15] - The cash flow from operating activities showed a net outflow of CNY 433.52 million, worsening from a net outflow of CNY 82.38 million in the same period last year[33] - The net cash flow from investing activities increased by 99.29% to ¥438,276,007.70, due to reduced investment payments compared to the previous year[15] - The company received cash from investment activities totaling CNY 5.58 billion, down from CNY 6.36 billion in the previous year[34] - The net cash flow from financing activities improved by 141.43% to ¥184,062,957.71, primarily due to increased cash from borrowings[15] - The cash flow from financing activities showed a net inflow of CNY 184.06 million, a recovery from a net outflow of CNY 444.28 million in the previous year[34] Shareholder Information - The company’s total share capital as of the last trading day before the report was 415,682,546 shares[7] - The company’s total number of ordinary shareholders at the end of the reporting period was 16,952, with the top ten shareholders holding a combined 68.67% of shares[16] - Major shareholders include He Zhaoxi with 20.27% and Xiong Wu with 17.56% of shares, indicating a concentrated ownership structure[16] - The company plans to repurchase shares with a total amount not exceeding RMB 200 million and not less than RMB 100 million, with a maximum price of RMB 185.00 per share[21] - As of the report date, the company has repurchased 1,255,715 shares, accounting for 0.3021% of the total share capital, with a total transaction amount of RMB 130,912,654.44[21] Research and Development - Research and development expenses rose by 16.72% to ¥1,808,979,934.98, attributed to an increase in R&D personnel and salary adjustments[14] - Research and development expenses for the period were CNY 1,808,979,934.98, compared to CNY 1,549,903,370.49 in the previous year, indicating an increase of approximately 16.7%[30] Government Support and Incentives - The company received government subsidies amounting to ¥10,762,341.33 during the reporting period, contributing to its non-recurring gains[9] - The company has provided guarantees totaling up to RMB 500 million for its distributors to support their development in cloud computing business[23] - The company plans to implement a restricted stock incentive plan, granting 8.8 million shares, which represents approximately 2.12% of the total shares[26] Other Financial Metrics - The company's basic earnings per share for the period was -¥0.02, with diluted earnings per share also at -¥0.02[5] - The company reported a significant increase in fair value changes of financial assets, with a gain of ¥10,756,105.85 compared to a loss in the previous year, marking a 247.17% change[14] - The credit impairment loss increased by 129.06% to -¥22,610,332.82, mainly due to an increase in accounts receivable[15] - The company has a total of 145,171,362 restricted shares at the end of the reporting period, with no shares released during the current period[19] - The company has repurchased 127,500 restricted shares from executives during the reporting period[19] - The company has a guarantee amount of RMB 13.05 million, which accounts for 0.18% of the latest audited net assets[24] - The company has repurchased 127,140 shares from the 2019 equity incentive plan that have not yet been unlocked[19]

Financial Performance - The company reported a decline in operating performance, highlighting risks such as intensified competition in the cybersecurity and cloud computing markets [3]. - The company's operating revenue for the first half of 2022 was approximately ¥2.82 billion, representing an increase of 8.86% compared to the same period last year [15]. - The net profit attributable to shareholders was approximately -¥689.57 million, a decrease of 418.65% year-on-year [15]. - The net cash flow from operating activities was approximately -¥537.28 million, a decline of 535.36% compared to the previous year [15]. - The basic earnings per share were -¥1.67, reflecting a decrease of 406.06% year-on-year [15]. - The total assets at the end of the reporting period were approximately ¥10.40 billion, down 5.03% from the end of the previous year [15]. - The net assets attributable to shareholders decreased to approximately ¥6.58 billion, a decline of 9.93% compared to the previous year [15]. - The weighted average return on net assets was -9.90%, a decrease of 7.87% year-on-year [15]. - The company reported a significant increase in losses, with a net profit margin showing a negative trend [15]. - The company reported a comprehensive diluted earnings per share of -1.6593 CNY per share [16]. - The company achieved total revenue of approximately CNY 2.815 billion, representing a year-on-year growth of 8.86% [76]. - The cybersecurity business generated revenue of approximately CNY 1.519 billion, with a year-on-year growth of 5.24%, accounting for 53.95% of total revenue [78]. - The cloud computing and IT infrastructure business reported revenue of approximately CNY 1.058 billion, showing a year-on-year growth of 20.27%, increasing its share of total revenue to 37.60% [78]. Investment and R&D - The company has committed to enhancing R&D and sales investments, which may lead to higher expenses without guaranteed revenue growth [3]. - Research and development investments increased by 30% in 2022, focusing on artificial intelligence and data security technologies [41]. - Investment in R&D increased by 15%, focusing on cybersecurity technologies and cloud services [44]. - Research and development expenses reached approximately CNY 1.22 billion, compared to CNY 993 million in the first half of 2021, marking an increase of about 22.7% [193]. - The company has maintained a research and development (R&D) expense ratio exceeding 20% of revenue for six consecutive years, with a total of over 2,550 patent applications as of June 30, 2022 [68]. - The company established five R&D centers in major cities, with nearly 40% of its workforce in R&D, and 26% holding master's or doctoral degrees [68]. Market Strategy and Competition - The company continues to focus on enhancing its product offerings and market expansion strategies despite the financial challenges faced [15]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2023 [41]. - The company is experiencing intensified competition in the cybersecurity and cloud computing markets, with many traditional IT giants entering the field, necessitating effective R&D investment and a customer-oriented approach to maintain competitiveness [130]. - The company is closely monitoring the impact of recurring COVID-19 outbreaks on its operations and is prepared to adjust its strategies to mitigate negative effects on business development [133]. - The company plans to focus on improving product and service quality while balancing resource allocation in the market [75]. Compliance and Governance - The board of directors has confirmed the accuracy and completeness of the financial report, with no dissenting opinions from management [2]. - The company is required to comply with specific disclosure requirements related to the software and information technology services industry [3]. - The company has not provided any forward-looking commitments regarding future performance or plans [2]. - The company emphasizes the importance of protecting core technologies and intellectual property to prevent leakage, which could adversely affect innovation and product development [136]. - The company has committed to ensuring that measures to fill the dilution of immediate returns are effectively implemented [152]. Social Responsibility and Community Engagement - The company established the Shenzhen Deepin Technology Public Welfare Foundation in 2021 to coordinate its public welfare strategy and has initiated projects to support rural education [148]. - The company actively participated in pandemic response efforts by providing remote work solutions and donating supplies during severe outbreaks in various cities [148]. - The company has contributed to the development of cybersecurity talent through competitions and forums, attracting over 10,000 participants in its first cybersecurity competition [148]. Financial Management and Fundraising - No cash dividends or stock bonuses will be distributed, and no capital reserve will be converted into share capital [5]. - The company has engaged in entrusted financial management, with a total of RMB 95,848.22 million in entrusted financial products, of which RMB 32,000 million came from fundraising funds [109]. - The company reported a return of RMB 23.11 million from a bank financial product with a reference annualized return rate of 3.09% [110]. - The company has plans for future entrusted financial management, with ongoing strategies to optimize the use of idle funds [110]. - The company has not changed the purpose of the raised funds, maintaining a 0.00% change in usage [100]. Operational Challenges - The company faces risks related to supply chain disruptions and rising hardware procurement costs due to recurring pandemic impacts [3]. - Rising hardware procurement costs due to supply shortages and international factors may lead to delivery delays or inability to deliver products, which the company is addressing by expanding sourcing efforts and locking in supply [134]. - Increased R&D and sales expenses, along with stock incentive plan costs, may not yield the expected revenue and profit growth, posing a risk to the company's profitability [135]. - The company acknowledges the management risks associated with its expanding business scale, which may lead to complexities in organizational structure and management systems [137].

Financial Performance - The company's revenue for Q1 2022 was ¥1,143,993,660.58, representing a 4.76% increase compared to ¥1,092,000,845.13 in the same period last year[4] - The net profit attributable to shareholders was -¥517,748,952.74, a significant decline of 438.90% from -¥96,075,719.14 year-on-year[4] - The diluted earnings per share for the period was -¥1.25, a decrease of 443.48% from -¥0.23 in the same period last year[5] - The weighted average return on equity was -7.35%, a decline of 5.88% compared to -1.47% in the previous year[5] - The net profit for the current period was a loss of ¥517,748,952.74, compared to a loss of ¥96,075,719.14 in the previous period, marking an increase in losses of about 440.5%[26] - Other comprehensive income after tax for the current period was a loss of ¥37,907,166.29, compared to a loss of ¥890,574.14 in the previous period[26] - The total comprehensive income for the current period was a loss of ¥555,656,119.03, compared to a loss of ¥96,966,293.28 in the previous period[26] Cash Flow - The net cash flow from operating activities was -¥693,378,699.12, which is a 66.24% decrease compared to -¥417,092,575.19 in the previous year[4] - Total cash inflow from investment activities was 2,909,808,943.50, up from 1,973,506,843.72 in the previous year[28] - Net cash flow from investment activities increased to 778,894,987.56, compared to 191,298,049.78 in the same period last year[28] - Cash and cash equivalents at the end of the period were 554,346,924.34, compared to 343,144,300.24 at the end of the previous year[29] - The company reported a net increase in cash and cash equivalents of -17,289,980.72, compared to -243,950,357.48 in the previous year[29] Assets and Liabilities - The total assets at the end of the reporting period were ¥9,844,949,234.11, down 10.09% from ¥10,950,332,850.09 at the end of the previous year[5] - The total current assets decreased from RMB 5,265,865,761.17 at the beginning of the year to RMB 4,262,470,133.21[21] - The total liabilities decreased from RMB 3,157,908,620.98 to RMB 2,620,195,170.00, indicating a reduction of about 17%[22] - Non-current assets decreased from RMB 5,684,467,088.92 to RMB 5,582,479,100.90[22] - Total liabilities decreased to ¥3,086,130,797.79 from ¥3,645,525,372.73, a reduction of approximately 15.4%[23] - The total equity attributable to shareholders of the parent company decreased to ¥6,758,818,436.32 from ¥7,304,807,477.36, a decline of about 7.5%[23] Operating Costs and Expenses - Operating costs rose to CNY 470.59 million, reflecting a significant increase of 28.52% from CNY 366.17 million, primarily due to supply chain disruptions and increased hardware procurement costs[12] - Total operating costs increased to ¥1,781,543,701.39 from ¥1,395,814,822.22, reflecting a rise of about 27.6%[25] - R&D expenses increased by 26.69% to CNY 609.66 million, driven by an increase in personnel and salary adjustments[12] - Research and development expenses for the current period were ¥609,655,286.41, up from ¥481,221,354.66, indicating a growth of approximately 26.7%[25] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 18,549, with the top ten shareholders holding significant stakes[14] - The company repurchased shares, resulting in treasury stock increasing by 84.08% to CNY 153.54 million[12] - The company plans to repurchase shares with a total amount not exceeding RMB 200 million and not less than RMB 100 million, with a maximum price of RMB 185.00 per share[19] - As of the report date, the company has repurchased 909,800 shares, accounting for 0.22% of the total share capital, with a total transaction amount of RMB 100,919,212.00[19] Future Outlook - The company anticipates challenges in revenue growth due to ongoing supply chain issues and increased market competition[12] - The company has plans for future expansion and development, focusing on employee stock ownership and incentive plans[19] Miscellaneous - The company reported a total of ¥62,231,940.82 in non-recurring gains and losses for the period[7] - The company experienced a 56.32% decrease in credit impairment losses, amounting to CNY 1.64 million, due to a reduction in accounts receivable[13] - Other comprehensive income showed a significant decline of 231.99%, resulting in a loss of CNY 54.25 million, primarily due to a decrease in the fair value of investments[12] - The report for Q1 2022 was not audited[30]

Financial Performance - The company's operating revenue maintained growth, but net profit declined due to lower-than-expected growth in cybersecurity revenue, an increase in the proportion of lower-margin cloud computing business, and rapid growth in R&D and other expenses [2]. - The company reported a total revenue of RMB 1.5 billion for the year 2021, representing a year-on-year growth of 25% [10]. - Net profit attributable to shareholders for 2021 was ¥272,857,861.09, a decrease of 66.29% compared to ¥809,375,598.76 in 2020 [15]. - The company's operating revenue for 2021 was ¥6,804,903,467.09, representing a 24.67% increase from ¥5,458,395,234.15 in 2020 [15]. - The gross margin for the year was reported at 45%, a slight increase from 43% in the previous year [10]. - The company aims to achieve a net profit margin of 10% for the fiscal year 2022, up from 8% in 2021 [10]. - The company reported a net cash flow from operating activities of ¥991,440,755.51, which is a 24.77% decrease from ¥1,317,874,109.62 in 2020 [15]. - The company experienced a net loss in the first quarter of 2021 amounting to ¥96,075,719.14, while the fourth quarter showed a profit of ¥405,363,717.88 [18]. R&D and Innovation - The increase in R&D expenses and other period costs has led to a higher risk of not achieving expected revenue and profit growth [3]. - The company has allocated RMB 200 million for research and development in next-generation firewall technology [10]. - Investment in R&D increased by 15% in 2021, focusing on cybersecurity technologies and cloud computing solutions, which are expected to enhance competitive advantage [48]. - The company has maintained a research and development expense ratio exceeding 20% of revenue for six consecutive years [73]. - The company launched several key R&D projects, including SASE for secure access and Cloud Brain for advanced threat protection, with expected completion in 2022 [110]. - The company has established R&D centers in Shenzhen, Beijing, Changsha, and Nanjing to drive technological innovation and key technology breakthroughs [62]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a revenue increase of 15% in this region for 2022 [10]. - The company is exploring potential mergers and acquisitions to enhance its product offerings and market share, with a budget of RMB 500 million set aside for this purpose [10]. - The company is committed to enhancing its cybersecurity capabilities in response to the increasing regulatory requirements and market demands [44]. - The company aims to enhance the competitiveness of its security solutions and promote cloud-based transformation of its security business [148]. - The company plans to strengthen the integration of its cloud business, improving the competitiveness and richness of its overall cloud solutions [149]. Regulatory Environment and Compliance - The company is subject to various regulatory frameworks, including the Cybersecurity Law and Data Security Law, which impose obligations on data protection and cybersecurity measures [44]. - The implementation of the Personal Information Protection Law introduces strict requirements for personal data handling, promoting the development of data protection technologies and services [45]. - The company anticipates that the regulatory environment will drive demand for data classification, management, and security products [45]. - The establishment of a regulatory framework for critical information infrastructure is expected to enhance the company's operational compliance and security posture [44]. - The company is focusing on aligning its operations with the evolving regulatory landscape to ensure compliance and mitigate risks associated with data security [45]. Risks and Challenges - The company faces risks including a decline in operating performance, intensified competition in the cybersecurity and cloud computing markets, and potential delays in market expansion due to the pandemic and global chip shortages [3]. - The report highlights the need for investors to recognize the risks associated with forward-looking statements regarding future plans and performance forecasts [2]. - High R&D and sales expenses, along with stock incentive plan costs, pose risks if they do not lead to expected revenue and profit growth [156]. - The company is monitoring the impact of recurring COVID-19 outbreaks on procurement and market expansion, adjusting strategies as necessary to mitigate negative effects [154]. - Global chip shortages have led to increased hardware procurement costs, with risks of delivery delays or inability to deliver products [155]. Corporate Governance - The board of directors has confirmed that all members attended the meeting to review the annual report, ensuring collective responsibility for its content [2]. - The company maintains independence from its controlling shareholder in terms of business, personnel, assets, and finance, with no non-operational fund transfers occurring during the reporting period [166]. - The company has a complete corporate governance structure with independent decision-making and operational processes [170]. - The company has established specialized committees within the board to provide scientific and professional opinions for decision-making [163]. - The company held two shareholder meetings during the reporting period, ensuring equal rights for all shareholders and actively responding to their inquiries [162]. Product Development and Market Position - The company launched multiple innovative products, including the multi-cloud security platform MCSP and the cloud host security protection platform CWPP, to enhance user data security governance [56]. - The company's cloud computing products have achieved significant market presence, with its desktop cloud terminal product ranking first in the Chinese cloud terminal market in 2021 [58]. - The company’s hyper-converged infrastructure (HCI) products have consistently ranked among the top three in the Chinese market from 2017 to 2021 [58]. - The company aims to simplify and secure digital transformation for various sectors, including government, healthcare, education, and finance [55]. - The company is actively promoting business cloudification, online services, and service-oriented models to meet the evolving demands of users [43]. Financial Management - The company approved the use of up to RMB 70 million of idle raised funds for cash management, with a subsequent approval for an additional RMB 60 million [130]. - The company has maintained a focus on high-security, high-liquidity low-risk financial products for managing idle funds [130]. - The total amount of funds raised by the company in 2020 was RMB 888,389,898.48, with a net amount of RMB 881,242,223.75 after deducting issuance costs [129]. - The company reported a fair value loss of ¥4,730,658.63 on financial assets, primarily due to the settlement of euro-denominated borrowings and changes in the fair value of investments [122]. - The company has not changed the use of raised funds and has not sold any significant assets during the reporting period [135][136].