Revenue and Profitability - The company's revenue for Q3 2022 reached ¥146,587,269.76, representing a 347.68% increase year-over-year[5] - Operating revenue reached ¥342,721,515.86, an increase of 201.32% compared to ¥113,740,618.25 in the same period last year, primarily driven by the revenue contribution from the newly consolidated subsidiary Donggao[9] - The total revenue for the third quarter of 2022 was RMB 342,721,515.86, a significant increase from RMB 113,740,618.25 in the same period last year, representing a growth of approximately 201.3%[22] - The net profit attributable to shareholders was -¥5,714,783.32, a decrease of 72.93% compared to the same period last year[5] - The net profit for Q3 2022 was -24,508,183.40 CNY, compared to -36,495,580.26 CNY in Q3 2021, showing an improvement of approximately 32.5% year-over-year[23] - Operating profit for Q3 2022 was -25,804,445.07 CNY, an improvement from -38,643,319.18 CNY in the same period last year[23] Assets and Liabilities - Total assets at the end of the reporting period amounted to ¥1,627,619,214.03, reflecting a 55.10% increase from the end of the previous year[5] - The company's total liabilities increased to RMB 510,137,572.85 as of September 30, 2022, compared to RMB 405,453,079.41 at the beginning of the year, reflecting an increase of approximately 25.8%[20] - Total liabilities for lease increased by 78.13% to ¥43,148,303.52, influenced by new lease agreements at Donggao[9] - The company's equity attributable to shareholders reached RMB 1,106,030,254.28 as of September 30, 2022, up from RMB 636,656,761.13 at the beginning of the year, indicating a growth of about 73.5%[20] Cash Flow - Cash flow from operating activities showed a net outflow of -¥51,620,342.14, a 52.99% increase in outflow compared to the previous year[5] - Net cash flow from operating activities improved to -¥51,620,342.14, a 52.99% reduction in outflow compared to -¥109,800,605.50 in the previous year, mainly due to increased cash inflows from Donggao[9] - Cash flow from operating activities was -51,620,342.14 CNY, compared to -109,800,605.50 CNY in Q3 2021, indicating a significant reduction in cash outflow[26] - The company reported a cash flow from financing activities of 499,636,379.28 CNY, a substantial increase from 24,563,984.77 CNY in Q3 2021[26] - The company’s cash flow from investing activities improved to -¥4,160,731.72, a 92.66% reduction in outflow compared to -¥56,653,692.27 in the previous year, influenced by reduced investments in principal-protected financial products[9] Expenses - Total operating costs for the third quarter of 2022 amounted to RMB 365,700,052.95, compared to RMB 152,015,524.75 in the previous year, indicating an increase of about 140.5%[22] - Research and development expenses amounted to ¥38,251,868.90, up 51.55% from ¥25,240,532.59, reflecting increased R&D activities at Donggao[9] - Research and development expenses for the third quarter of 2022 were RMB 38,251,868.90, compared to RMB 25,240,532.59 in the previous year, representing an increase of approximately 51.6%[22] - Sales expenses surged to ¥191,388,715.34, a 383.67% increase from ¥39,569,730.35, largely due to the sales expenses incurred by Donggao[9] - Financial expenses showed a dramatic increase of 515.80%, amounting to -¥5,672,507.33, primarily due to currency fluctuations and increased interest income from bank deposits[9] Shareholder Activities - The company repurchased a total of 5,690,100 shares, representing 1.64% of the total share capital, with a total transaction amount of RMB 51,335,250.16[16] - The company plans to sell repurchased shares within three years after the repurchase results are disclosed, ensuring compliance with relevant regulations[16] Other Financial Metrics - The weighted average return on net assets was -0.46%, an improvement of 3.07% year-over-year[5] - The company recorded a decrease in trading financial assets by 72.67% to ¥4,700,000.00, influenced by the redemption of financial products[8] - The company reported a significant increase in capital reserves, reaching ¥535,253,526.98, a rise of 1651.78% due to a private placement and capital premium during the reporting period[9] - Investment income dropped by 84.78% to ¥330,359.04, compared to ¥2,170,785.20 in the previous year, mainly due to fewer principal-protected financial products purchased last year[9] - The total comprehensive income for Q3 2022 was -24,508,527.29 CNY, compared to -36,495,580.26 CNY in the same period last year[24] - Basic and diluted earnings per share for Q3 2022 were both -0.08 CNY, compared to -0.12 CNY in Q3 2021[24] - The company experienced a foreign exchange impact on cash and cash equivalents of 4,071,211.37 CNY during the quarter[26]

Strategic Transformation and Investments - The company plans to accelerate its strategic transformation and upgrade by increasing investments in the financial derivatives industry through the acquisition of Beijing Donggao, aiming to deepen its layout in securities information services [5]. - The company is focused on strategic transformation in the financial derivatives sector, leveraging acquisitions to enhance its service offerings in securities information [77]. - The company is actively pursuing market expansion and strategic partnerships to enhance its growth prospects [122]. - The company is exploring potential mergers and acquisitions to enhance its competitive edge in the market [177]. - The company is exploring potential mergers and acquisitions to strengthen its competitive position in the market [182]. Financial Performance - The company's operating revenue for the first half of 2022 was ¥196,134,246.09, representing a 142.15% increase compared to ¥80,997,127.49 in the same period last year [22]. - The net loss attributable to shareholders was ¥21,645,829.95, which is a 36.06% increase from a loss of ¥15,908,910.09 in the previous year [22]. - The total assets at the end of the reporting period increased by 57.34% to ¥1,651,130,955.72 from ¥1,049,399,535.18 at the end of the previous year [22]. - The net assets attributable to shareholders rose by 80.75% to ¥1,150,769,231.12 from ¥636,656,761.13 at the end of the previous year [22]. - The company reported a basic and diluted earnings per share of -¥0.07, a decrease of 40.00% from -¥0.05 in the same period last year [22]. Research and Development - The company reported a stable technical team with no significant loss of professional technical personnel during the reporting period, which is crucial for its R&D and product innovation efforts [4]. - Research and development expenses amounted to ¥23,319,204.08, reflecting a 43.47% increase from ¥16,253,369.49 in the previous year, driven by the consolidation of Beijing Donggao's R&D costs [41]. - The company has developed several key products, including intelligent cash handling machines and digital RMB hardware wallets, to meet the evolving needs of the financial sector [32]. - The company emphasizes its competitive advantages in product development, technology, and customer resources, which are crucial for sustainable growth [33]. - The company has developed multiple intelligent decision-making products based on its proprietary research models, which have gained market recognition and show a continuous increase in repurchase rates [36]. Compliance and Risk Management - The company is subject to compliance risks due to the rapid development of the internet financial information service industry and the introduction of new regulations [4]. - The company has committed to monitoring regulatory changes to ensure compliance and mitigate risks associated with policy shifts in the financial services industry [76]. - The company faces risks related to industry demand reduction due to increasing requirements for product functionality and technology parameters from banking systems [4]. - The company faces risks related to industry demand fluctuations, requiring continuous updates to technology and market understanding to maintain competitiveness [75]. Cash Flow and Financing - The net cash flow from financing activities surged to ¥565,305,333.37, a staggering increase of 3,764.64% compared to ¥14,627,629.22 in the previous year, primarily due to a targeted stock issuance [41]. - The company is advancing its fundraising investment projects as planned, although it acknowledges potential impacts from macroeconomic conditions and unforeseen factors [5]. - The company has a total of ¥32,175.46 million remaining in its fundraising account as of June 30, 2022 [58]. - The company utilized 50 million CNY of the raised funds to purchase structured deposits, with the remaining funds stored in a dedicated account [61]. Shareholder and Equity Information - The company has not declared any cash dividends or stock bonuses for the reporting period, indicating a focus on reinvestment [5]. - The company approved the repurchase and cancellation of 2,081,700 shares of restricted stock from 46 incentive recipients due to unmet conditions [86]. - The company granted 14.5 million shares of restricted stock at a price of RMB 19.31 per share to 100 eligible recipients on February 7, 2022 [89]. - The company’s stock repurchase program aligns with the regulations set forth by the Shenzhen Stock Exchange and other relevant laws [133]. - The largest shareholder, Chen Chongjun, holds 37.41% of the shares, with a total of 130,113,389 shares, of which 21,581,438 shares are under pledge [140]. Market and Product Development - The company is actively involved in high-tech areas such as artificial intelligence and blockchain to enhance its service offerings in the financial sector [31]. - The company has maintained its focus on the smart banking and intelligent self-service equipment sectors while exploring new business opportunities [5]. - The company launched its options trading analysis software at the end of 2021, aimed at providing deep analysis of historical trading data to assist asset management institutions and ordinary investors [72]. - The company is committed to enhancing brand awareness and user experience to expand its user base and strengthen user loyalty [70]. Asset Management - Cash and cash equivalents increased to ¥728,583,669.62, accounting for 44.13% of total assets, up from 25.45% at the end of the previous year, primarily due to funds raised from a private placement [45]. - The company reported a significant increase in financial assets, with trading financial assets reaching ¥73,000,000.00 during the reporting period [48]. - The company has a strong management team with extensive experience in the financial equipment industry, contributing to its stable operations and growth [37]. - The company has established a loyal user base of professional individual investors, which supports its business development and product innovation [37].

Financial Performance - The company's operating revenue for 2021 was ¥173,498,483.76, a decrease of 40.60% compared to ¥292,072,800.75 in 2020[19] - The net profit attributable to shareholders for 2021 was ¥15,450,075.89, down 35.60% from ¥23,991,042.01 in the previous year[19] - The net cash flow from operating activities was negative at ¥25,833,903.89, a decline of 139.92% compared to ¥64,721,194.91 in 2020[19] - Basic earnings per share decreased by 37.50% to ¥0.05 from ¥0.08 in 2020[19] - The total operating revenue for 2021 was ¥173,498,483.76, representing a decrease of 40.60% compared to ¥292,072,800.75 in 2020[53] - Revenue from the electronic information industry - finance segment was ¥163,338,138.61, accounting for 94.14% of total revenue, down 42.37% from ¥283,425,991.50 in 2020[53] - The cash counting series revenue decreased by 55.83% to ¥48,791,482.93, while the self-service series revenue increased by 142.31% to ¥8,254,070.45[54] - Domestic revenue was ¥171,303,329.56, which is 98.73% of total revenue, reflecting a 40.97% decrease from ¥290,186,884.95 in 2020[54] - The gross profit margin for the electronic information industry - finance segment was 39.90%, a decrease of 2.17% compared to the previous year[56] Assets and Liabilities - The total assets at the end of 2021 increased by 25.26% to ¥1,049,399,535.18 from ¥837,797,054.78 at the end of 2020[19] - The net assets attributable to shareholders rose by 2.29% to ¥636,656,761.13 compared to ¥622,410,494.82 at the end of 2020[19] - The total operating cost for 2021 was ¥105,600,127.46, down 37.76% from ¥169,664,033.69 in 2020[61] - The total assets at the end of 2021 included cash and cash equivalents of ¥267,060,897.31, which represented 25.45% of total assets, down from 40.92% at the beginning of the year[77] Cash Flow and Investments - The net cash flow from operating activities was -¥25,833,903.89 in 2021, a decline of 139.92% compared to ¥64,721,194.91 in 2020[72] - Investment activity cash inflow increased by 94.57% to ¥236,815,160.64 in 2021, while cash outflow surged by 236.70% to ¥304,669,318.42[73] - The company reported a net cash flow from financing activities of ¥17,917,788.69 in 2021, a turnaround from -¥36,237,194.05 in 2020, marking a 149.45% increase[73] Research and Development - The company invests over 10% of its total revenue annually in research and development, ensuring a strong technological foundation for future growth[42] - The company had a total R&D investment of ¥38,358,930.57 in 2021, which accounted for 22.11% of its operating revenue, a significant increase from 12.12% in 2020[70] - The number of R&D personnel increased to 114 in 2021, up by 12.87% from 101 in 2020, while the proportion of R&D personnel in total staff decreased to 11.13%[70] - R&D expenses rose by 21.81% to ¥38,358,930.57, driven by the expansion of the R&D team at Shanghai Qianyu[66] Market Position and Strategy - The company is positioned in the high-tech sector, providing smart financial system solutions and services, leveraging technologies such as AI and blockchain[30] - The company plans to continue expanding its product offerings and market reach in response to the evolving financial technology landscape[31] - The company aims to create a diversified and personalized internet technology securities information service platform, covering various financial products[46] - The company is actively developing digital RMB supporting devices, including card issuance and payment devices, to meet the growing demand for digital currency[47] Governance and Compliance - The company has a governance structure that complies with the requirements of the "Corporate Governance Guidelines" and relevant regulations[102] - The board of directors consists of 7 members, including 3 independent directors, ensuring compliance with legal and regulatory requirements[100] - The company has established a robust internal control system to enhance governance and operational efficiency[102] - The company emphasizes the protection of shareholder rights, ensuring compliance with laws and regulations in governance structure[148] Shareholder Relations and Dividends - The company plans to distribute a cash dividend of ¥0.10 per 10 shares to all shareholders[5] - The total cash dividend amount is 3,478,346.39 yuan, which accounts for 100% of the total profit distribution[133] - The company has a profit distribution policy that emphasizes stable returns to investors while ensuring sustainable development[131] Acquisitions and Partnerships - The company acquired 51% of Donggao (Beijing) Technology Co., Ltd. for ¥187,680,000 on December 14, 2021[62] - The company has acquired 60% of Shanghai Qianyu Information Technology Co., Ltd. and 51% of Donggao (Beijing) Technology Co., Ltd., enhancing its financial information service capabilities[42] - The company completed the acquisition of 51% of Donggao (Beijing) Technology Co., Ltd. on December 24, 2021, with the registration completed on January 5, 2022[142] Employee and Management Structure - The company has a total of 1,024 employees, with 365 in sales and 126 in technical roles[127][128] - The company has established a performance-based compensation system that links bonuses to key performance indicators (KPIs) related to business objectives and talent development[129] - The current general manager, Li Ruiming, has held various leadership roles in multiple companies, indicating extensive management experience[114] Risks and Challenges - The company is aware of industry risks, including reduced demand and regulatory compliance, and is implementing measures to mitigate these risks[93][94] - The company experienced a significant decrease in sales revenue due to reduced demand from upstream customers in the cash financial equipment sector, prompting increased investment in digital currency-related R&D[70] Future Outlook - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2023[179] - Future guidance estimates a revenue growth of 20% for 2022, aiming for a total revenue of 144 million[179]

Financial Performance - The company's operating revenue for Q1 2022 was ¥101,102,708.13, representing a 260.39% increase compared to ¥28,053,543.20 in the same period last year[3] - The net profit attributable to shareholders was -¥2,064,434.61, an improvement of 82.42% from -¥11,741,833.04 year-on-year[3] - The net cash flow from operating activities was -¥100,192,661.73, a decline of 64.94% compared to -¥60,744,866.78 in the previous year[3] - The company reported a basic and diluted earnings per share of -¥0.01, improving by 66.67% from -¥0.03 in the same period last year[3] - The weighted average return on net assets was -0.26%, an improvement of 1.61% from -1.87% year-on-year[3] - The net profit for Q1 2022 was a loss of ¥160,735.26, compared to a loss of ¥11,655,279.62 in Q1 2021, showing an improvement in loss reduction[24] Assets and Liabilities - Total assets increased by 99.19% to ¥1,578,835,133.70 from ¥792,634,228.02 at the end of the previous year[4] - The company reported a total asset of CNY 1,578,835,133.70 as of March 31, 2022, compared to CNY 1,049,399,535.18 at the beginning of the year, reflecting an increase of approximately 50.4%[20] - The total liabilities decreased to ¥386,343,774.11 from ¥405,453,079.41 year-over-year, reflecting a reduction of approximately 4%[22] - The company’s total liabilities decreased from CNY 1,049,399,535.18 to CNY 1,578,835,133.70, indicating a reduction in financial leverage[21] - The total equity attributable to shareholders increased to ¥1,183,297,965.60 from ¥636,656,761.13, marking an increase of about 86%[22] Cash Flow - The net cash flow from operating activities was -100,192,661.73 CNY, compared to -60,744,866.78 CNY in the previous period, indicating a decline in operational cash flow[28] - Total cash inflow from investment activities was 45,021,217.90 CNY, while cash outflow was 65,892,203.43 CNY, resulting in a net cash flow from investment activities of -20,870,985.53 CNY[29] - The company raised 546,745,004.18 CNY from financing activities, with a net cash flow from financing activities of 547,361,187.73 CNY after accounting for cash outflows[29] - The total cash and cash equivalents at the end of the period amounted to 689,751,470.25 CNY, a significant increase from 263,472,484.69 CNY at the beginning of the period[29] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 11,148[10] - The company issued 43,787,639 shares, fully subscribed by the controlling shareholder, raising CNY 552.6 million, which was deposited into a dedicated account[15] - The company plans to repurchase shares with a budget between CNY 50 million and CNY 100 million, with a maximum price of CNY 20 per share[16] Operating Costs and Expenses - The total operating costs rose by 148.83% to ¥10,000,000, primarily due to the consolidation of Beijing Donggao's operational data[8] - The total operating costs for Q1 2022 were ¥102,492,791.45, up from ¥41,189,617.08 in the previous year, indicating an increase of about 149%[23] - Research and development expenses for Q1 2022 were ¥11,360,655.40, compared to ¥9,250,195.92 in the previous year, indicating an increase of approximately 23%[23] - The company paid 46,572,166.49 CNY in cash to employees, reflecting an increase in personnel costs[28] Inventory and Investments - The company’s inventory decreased slightly to CNY 145,437,929.17 from CNY 150,143,602.99, a decline of approximately 3.7%[21] - The company’s long-term equity investments increased to CNY 17,409,678.53 from CNY 13,804,279.73, marking a growth of about 26.0%[21] - The company reported a cash inflow of 44,123,832.34 CNY from the recovery of investments[29] Miscellaneous - The report for the first quarter was not audited, which may affect the reliability of the financial data presented[30] - The company received tax refunds totaling 668,321.86 CNY during the quarter[28] - Cash received from other operating activities was 5,191,157.47 CNY, contributing to the overall cash inflow from operating activities[28] - The cash outflow for taxes paid was 2,234,658.98 CNY, which is lower than the previous period's 8,621,905.57 CNY[28] - The minority interest increased to ¥9,193,393.99 from ¥7,289,694.64, representing an increase of about 26%[23]

Financial Performance - The company's revenue for Q3 2021 was ¥32,743,490.76, a decrease of 30.43% compared to the same period last year[4] - The net profit attributable to shareholders was -¥21,110,853.39, representing a decline of 92.26% year-over-year[4] - The basic and diluted earnings per share were both -¥0.07, down 75.00% from the previous year[5] - The total operating revenue for Q3 2021 was CNY 113.74 million, a decrease of 21.7% compared to CNY 145.28 million in the same period last year[24] - The net profit for Q3 2021 was a loss of CNY 36.50 million, compared to a loss of CNY 22.08 million in the previous year, representing an increase in loss of 65.5%[25] Assets and Liabilities - Total assets at the end of the reporting period were ¥771,989,747.86, a decrease of 7.85% from the end of the previous year[5] - The total assets as of the end of Q3 2021 were CNY 771.99 million, down from CNY 837.80 million at the end of the previous year, a decrease of 7.8%[23] - The company’s total liabilities decreased by 5.33% compared to the previous year[5] - The total liabilities decreased to CNY 172.36 million from CNY 205.53 million, reflecting a reduction of 16.1% year-on-year[22] - The equity attributable to shareholders of the parent company was CNY 589.25 million, down from CNY 622.41 million, a decline of 5.3%[23] Cash Flow - The company reported a net cash flow from operating activities of -¥109,800,605.50, an increase of 23.95% compared to the previous year[4] - The cash flow from operating activities showed a significant decline, indicating potential liquidity challenges moving forward[27] - The net cash flow from operating activities was -109,800,605.50, an improvement from -144,375,676.25 in the previous period, indicating a reduction in cash outflow[29] - Cash inflow from operating activities totaled 121,488,206.78, down 39.6% from 201,035,483.27 in the previous period[28] - Cash outflow from operating activities was 231,288,812.28, a decrease of 33.0% compared to 345,411,159.52 in the previous period[29] Investment Activities - Investment income for the reporting period was ¥217.08 million, an increase of 57.45% year-over-year[11] - The company’s cash flow from investing activities was -¥56,653,700, a decrease of 9,610.26 million compared to the previous year[12] - Cash inflow from investment activities was 157,800,599.59, significantly higher than 83,423,177.35 in the previous period, marking an increase of 89.0%[29] - The net cash flow from investment activities was -56,653,692.27, contrasting with a positive cash flow of 39,448,899.52 in the previous period[29] Shareholder Information - The total number of common shareholders at the end of the reporting period is 8,132[14] - The largest shareholder, Chen Chongjun, holds 28.39% of shares, totaling 86,325,750 shares, with 64,744,312 shares pledged[14] - The top ten shareholders hold significant stakes, with the top three alone accounting for over 34% of total shares[14] - The total number of shares held by the top ten unrestricted shareholders is 43,000,000[14] - The company is actively managing its shareholder structure, with several shareholders utilizing margin trading accounts[15] Future Plans - The company plans to focus on expanding its market presence and enhancing product development in the upcoming quarters[27] - The company plans to unlock 25% of the executive lock-up shares annually during the lock-up period[17] Operational Costs and R&D - The total operating costs amounted to CNY 152.02 million, down 15.0% from CNY 178.70 million year-on-year[24] - The R&D expenses for the quarter were CNY 25.24 million, which is an increase of 17.0% from CNY 21.44 million in the same period last year[24] Miscellaneous - The company has not made any significant adjustments to its financial statements due to the new leasing standards, which began in 2021[31] - The company has a total of 68,152,690 shares under lock-up agreements, primarily due to executive lock-up and equity incentive plans[18] - The ending cash and cash equivalents balance was 198,095,306.36, slightly up from 191,680,981.94 in the previous period[30] - The company reported a decrease in cash received from sales of goods and services, totaling 107,146,073.89, down 39.8% from 178,076,350.00 in the previous period[28]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥80,997,127.49, a decrease of 17.53% compared to ¥98,212,488.54 in the same period last year[22]. - The net profit attributable to shareholders was a loss of ¥15,908,910.09, representing a decline of 35.86% from a loss of ¥11,709,521.78 in the previous year[22]. - The net cash flow from operating activities improved by 22.56%, amounting to -¥105,108,173.56 compared to -¥135,723,715.09 in the same period last year[22]. - Total assets decreased by 7.55% to ¥774,572,531.96 from ¥837,797,054.78 at the end of the previous year[22]. - The net assets attributable to shareholders decreased by 2.02%, totaling ¥609,865,857.10 compared to ¥622,410,494.82 at the end of the previous year[22]. - The basic earnings per share were -¥0.05, a decrease of 25.00% from -¥0.04 in the same period last year[22]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion CNY for the first half of 2021, representing a year-over-year growth of 25%[62]. - The company provided a positive outlook for the second half of 2021, projecting a revenue growth of 20% to 30%[62]. - The gross margin improved to 45%, up from 40% in the previous year, indicating better cost management and pricing strategies[62]. Research and Development - The company has a strong focus on technological innovation, with 104 software copyrights and 24 software products developed[57]. - The company is investing in R&D for advanced currency processing technologies, with a budget allocation of 200 million CNY for 2021[62]. - Research and development expenses were ¥12,054,397.31, down 13.03% from ¥13,861,024.50 in the previous year[68]. - The company aims to enhance its research and development capabilities to drive future growth and innovation[186]. Product Development and Innovation - The company provides comprehensive smart financial system solutions and financial software services, focusing on advanced technologies such as image recognition, AI, blockchain, and IoT[30]. - The company has developed a cash sorting machine that utilizes leading image processing and anti-counterfeiting technologies, enhancing the security and efficiency of financial transactions[31]. - The intelligent counter product supports various banking services, including digital currency wallet operations, significantly improving customer experience and reducing operational costs[31]. - The company is actively pursuing new product development, with multiple patents filed for advanced cash processing technologies, including a cash transaction system and various cash handling devices[60]. - The company aims to enhance its market presence through the introduction of innovative cash management solutions, which are expected to drive future revenue growth[60]. Market Trends and Opportunities - The company is actively participating in the pilot projects for digital RMB hard wallets, aligning with the growing demand for digital currency solutions[31]. - The company aims to expand its market presence through innovative product development and strategic partnerships in the financial technology sector[30]. - The domestic derivatives market is expected to grow rapidly, with projected trading volumes of 91.07 trillion yuan, 164.11 trillion yuan, and 237.01 trillion yuan for the years 2019, 2020, and 2021 respectively[48]. - The company is exploring potential acquisitions to strengthen its technology portfolio and expand its service offerings[62]. Risk Management - The company is facing operational risks and has outlined measures to mitigate these risks in its report[6]. - The company faces risks related to new product development and market expansion, particularly due to varying requirements from different banking systems[90]. - The company faces risks related to talent retention due to high competition in the financial self-service equipment industry, and it is implementing measures to attract and retain technical and management talent[92]. Corporate Governance and Compliance - The company emphasizes the importance of corporate governance, adhering to various legal regulations and improving internal control systems to ensure fair decision-making and sustainable operations[106]. - Employee rights are protected through compliance with labor laws, including signing labor contracts and providing social insurance for medical, pension, unemployment, work-related injuries, and maternity[106]. - The company actively manages investor relations, ensuring timely and accurate information disclosure to enhance investor recognition and trust[106]. Subsidiaries and Investments - The subsidiary Shanghai Qianyu Information Technology Co., Ltd. generated a net profit of 2,436,924.40 CNY, contributing significantly to the company's overall performance[89]. - The company’s subsidiary Shanghai Zhiyu Information Technology Co., Ltd. reported a net profit of 2,723,669.58 CNY, indicating strong performance in the financial technology sector[89]. - The company has a total of 68 subsidiaries included in the consolidated financial statements for the first half of 2021[195]. Shareholder Information - The company completed a capital increase by issuing 101,376,000 shares, raising total shares to 304,128,000[138]. - The largest shareholder, Chen Chongjun, holds 28.38% of the shares, totaling 86,325,750, with an increase of 28,775,250 shares during the reporting period[142]. - The company’s shareholding structure changed, with limited shares decreasing to 22.41% and unrestricted shares increasing to 77.59% after the capital increase[138]. Financial Stability and Future Outlook - The company plans to focus on market expansion and new product development to improve future performance[1]. - The overall financial performance indicates a need for strategic adjustments to improve cash flow management and profitability[179]. - The company has a continuous operation capability for at least 12 months from the end of the reporting period, with no significant issues affecting this capability[197].

Financial Performance - The company's operating revenue for Q1 2021 was ¥28,053,543.20, a decrease of 26.89% compared to ¥38,372,696.96 in the same period last year[7] - The net profit attributable to shareholders was -¥11,741,833.04, representing a decline of 45.32% from -¥8,080,185.91 year-on-year[7] - The company reported a basic and diluted earnings per share of -¥0.06, a decrease of 45.32% from -¥0.04 in the same period last year[7] - The net profit for Q1 2021 was a loss of CNY 11,655,279.62, compared to a loss of CNY 8,080,185.91 in the same period last year, representing an increase in loss of approximately 44.5%[37] - The total comprehensive loss for Q1 2021 was CNY 11,655,279.62, compared to a loss of CNY 8,080,185.91 in the same period last year[37] Cash Flow - The net cash flow from operating activities improved by 55.64%, reaching -¥60,744,866.78 compared to -¥136,934,533.45 in the previous year[7] - Operating cash flow for the current period was CNY -60.74 million, an increase of CNY 76.19 million or 55.64% compared to the same period last year, driven by increased sales scale[16] - The cash inflow from operating activities for Q1 2021 was CNY 48,528,108.25, an increase from CNY 34,874,665.53 in the previous period[43] - The total cash outflow from operating activities was 109,272,975.03 CNY, down from 171,809,198.98 CNY year-on-year, reflecting a decrease of about 36.3%[44] - The net cash flow from financing activities was -15,756.39 CNY, compared to -109,958.33 CNY in the previous year, showing an improvement of about 85.7%[45] Assets and Liabilities - Total assets at the end of the reporting period were ¥792,634,228.02, down 5.39% from ¥837,797,054.78 at the end of the previous year[7] - The company's net assets attributable to shareholders decreased by 1.75%, totaling ¥611,495,685.27 compared to ¥622,410,494.82 at the end of the previous year[7] - The total liabilities decreased to CNY 180,163,116.90 from CNY 220,241,436.24, reflecting improved financial health[32] - The total equity attributable to shareholders decreased to CNY 551,926,907.59 from CNY 558,707,045.39[32] - Cash and cash equivalents decreased to CNY 271,927,287.57 from CNY 331,055,380.81, indicating a reduction in liquidity[29] Operational Costs - Operating costs for the current period were CNY 15.65 million, a decrease of CNY 7.39 million or 32.08% compared to the same period last year, primarily due to a decline in sales revenue[15] - Total operating costs decreased to CNY 41,189,617.08 from CNY 50,694,597.40, with operating costs specifically dropping from CNY 23,047,457.52 to CNY 15,653,708.47[35] - The company incurred sales expenses of CNY 10,075,742.25 in Q1 2021, down from CNY 14,261,002.42 in the previous year[39] Research and Development - Research and development expenses increased to CNY 9,250,195.92 from CNY 8,612,672.13, indicating a focus on innovation[35] - The company's research and development expenses for Q1 2021 were CNY 7,081,087.51, slightly down from CNY 7,902,185.03 in the previous year[39] Other Financial Metrics - Other receivables increased by 90.97% to ¥13,424,200 from ¥7,029,600, primarily due to product development-related loans[14] - Other current assets surged by 1896.82% to ¥1,369,900 from ¥68,600, mainly due to an increase in tax credits[14] - Accounts payable decreased by 37.48% to ¥51,225,600 from ¥81,932,400, as the company paid suppliers according to their payment terms[14] - The balance of contract liabilities increased by 37.31% to ¥14,143,900 from ¥10,300,900, due to an increase in prepayments from Shanghai Qianyuzi Company[14] - Credit impairment losses were CNY 0.51 million, a decrease of CNY 0.39 million or 43.03% compared to the same period last year, due to increased collection efforts on accounts receivable[15] Company Overview - The company provides comprehensive smart financial system solutions and services, leveraging advanced technologies such as image recognition, AI, and blockchain[17] - The company is a qualified supplier for major domestic banks and financial institutions, including ICBC, ABC, and CCB[17] - There were no significant changes in the company's core assets, competitive capabilities, or key personnel during the reporting period[18] - The company reported no violations regarding external guarantees or non-operating fund occupation by major shareholders during the reporting period[20][21] - The company did not undergo an audit for the Q1 2021 report, which is noted as unaudited[50]

Financial Performance - The company's operating revenue for 2020 was ¥292,072,800.75, a decrease of 37.36% compared to ¥466,253,495.68 in 2019[24]. - The net profit attributable to shareholders for 2020 was ¥23,991,042.01, down 46.64% from ¥44,964,517.34 in 2019[24]. - The net profit after deducting non-recurring gains and losses was ¥13,622,012.57, a decline of 57.18% from ¥31,813,404.45 in 2019[24]. - The total assets at the end of 2020 were ¥837,797,054.78, a decrease of 6.71% from ¥898,026,171.22 at the end of 2019[24]. - The company's basic earnings per share for 2020 was ¥0.12, down 47.83% from ¥0.23 in 2019[24]. - The company reported a net cash flow from operating activities of ¥64,721,194.91, a slight decrease of 2.77% compared to ¥66,567,250.39 in 2019[24]. - The total revenue for 2020 was CNY 283,425,991.50, a decrease of 37.92% compared to 2019[85]. - The sales volume decreased by 37.49% to 109,288 units in 2020, while production volume fell by 43.39% to 107,846 units[86]. - The company's gross profit margin for 2020 was 42.07%, a decline from the previous year[85]. - The company reported a significant drop in revenue from its clearing series products, which fell by 51.16% to 144.84 million yuan, while the cash counting series revenue decreased by 24.41% to 110.47 million yuan[81]. Dividend and Share Capital - The company plans to distribute a cash dividend of 0.2 CNY per 10 shares and to increase capital by 5 shares for every 10 shares held, based on a total of 202,752,000 shares[14]. - The company distributed a cash dividend of RMB 0.20 per 10 shares, totaling RMB 4,055,040 (including tax) for the year 2020[135]. - The total share capital increased to 304,128,000 shares after a capital reserve conversion of 5 shares for every 10 shares held, totaling 101,376,000 shares[135]. - The cash dividend payout ratio for 2020 was 16.90% of the net profit attributable to shareholders[138]. - The company has maintained a consistent profit distribution policy, ensuring the interests of all shareholders are protected[131]. - The total cash dividends distributed over the last three years were RMB 4,055,040 in 2020, RMB 5,068,800 in 2019, and RMB 2,200,800 in 2018[138]. Strategic Transformation and Innovation - The company is undergoing a strategic transformation towards financial technology and information services, which involves high technical complexity and market uncertainties[14]. - The company is committed to leveraging its strong product development capabilities to navigate the uncertainties in technology commercialization and market adaptation[11]. - The company aims to accelerate its strategic transformation in the financial technology sector, targeting digital currency and digital transformation in the financial industry[62]. - The company is focused on expanding its market presence through the development of new technologies and products, aiming to improve operational efficiency[68]. - The company is committed to creating value for customers and achieving quality business growth through continuous innovation[62]. - The company is actively exploring new application areas to create additional profit growth points in the financial derivatives sector[14]. Market and Competitive Landscape - Increased competition in the smart banking system market may lead to a decline in gross profit margins if the company fails to innovate and upgrade existing products[9]. - The company faces risks related to new product development and market expansion due to the lengthy preparation and testing cycles required by banking clients[8]. - The domestic options market in China is still in its infancy, with significant growth potential as new products are being introduced, including the launch of various options since 2015[45]. - The rapid growth in trading volumes in emerging markets such as Brazil, China, India, and Turkey highlights the increasing importance of these markets in the global derivatives landscape[41]. - The company is positioned to capitalize on the trend of bank branch transformation and upgrade, integrating resources around "smart banking management solutions"[62]. Research and Development - The company has been actively expanding its research and development capabilities, with a focus on innovative financial derivative products[62]. - The company is investing in R&D for advanced cash handling technologies, with a budget allocation of 100 million RMB for the upcoming year[69]. - Research and development investment in 2020 amounted to ¥35,396,260.97, representing 12.12% of operating revenue, a significant increase from 11.25% in 2019[95]. - The company has developed various high-tech financial solutions, including cash sorting machines and intelligent management systems[34]. - The company is committed to maintaining a robust pipeline of new patents to support long-term growth[66]. Talent Management and Corporate Governance - The company acknowledges the risk of talent loss, particularly in high-end technical and marketing roles, which could hinder strategic implementation[10]. - The company is enhancing its human resource management to attract and retain talent, which is crucial for sustainable development[77]. - The company emphasizes the importance of talent development, aiming to establish a performance evaluation mechanism that encourages independent thinking and enhances overall talent competitiveness[124]. - The company is committed to improving its corporate governance and internal control systems to ensure compliance and protect shareholder interests[79]. - The company has a structured plan for share reduction that includes specific timelines and conditions for its executives[141]. Acquisitions and Partnerships - The company acquired a 60% stake in Shanghai Qianyu Information Technology Co., Ltd. for CNY 24 million, enhancing its software and IT service capabilities[88]. - The acquisition of Qianyu Information is expected to strengthen the company's position in the financial derivatives trading software market, capitalizing on the growing demand in China's financial sector[76]. - A new strategic partnership was announced with a leading bank to integrate smart cash management solutions, expected to generate an additional 50 million RMB in revenue[70]. Compliance and Risk Management - The company is committed to not engaging in any business that directly or indirectly competes with its subsidiaries[141]. - The company has established measures to protect its proprietary technology and customer information from being shared with competitors[141]. - The company has not faced any penalties from securities regulatory authorities in the past three years for its current and recently departed directors and supervisors[198]. - The company has not reported any changes in its actual controller during the reporting period, maintaining stability in governance[183].

Financial Performance - Operating revenue for the quarter was CNY 47,068,474.71, down 64.29% year-on-year, and year-to-date revenue decreased by 35.65% to CNY 145,280,963.25[9] - Net profit attributable to shareholders was a loss of CNY 10,906,039.44, representing a decline of 160.38% compared to the same period last year[9] - Basic and diluted earnings per share were both CNY -0.05, reflecting a decrease of 155.56% year-on-year[9] - The company's total revenue for the period was 145.28 million yuan, a decrease of 35.65% compared to the same period last year, primarily due to the procurement cycle of bank clients[20] - The net loss for Q3 2020 was ¥10,350,668.71, compared to a net profit of ¥18,063,533.99 in Q3 2019, indicating a significant decline in profitability[42] - Total operating revenue decreased to ¥145,280,963.25 from ¥225,762,805.30, a decline of approximately 35.6% year-over-year[46] - Operating profit turned negative at -¥24,290,605.31 compared to a profit of ¥10,250,300.57 in the previous period[47] - Net profit decreased significantly to -¥22,082,683.27 from ¥13,885,558.62, indicating a substantial loss[48] - Total comprehensive income was -¥24,051,830.82, contrasting sharply with ¥22,449,676.38 in the prior period[50] Assets and Liabilities - Total assets decreased by 14.68% to CNY 766,223,821.49 compared to the end of the previous year[9] - Current assets totaled ¥567,876,498.27, down from ¥757,716,069.10, indicating a decrease of about 25.1%[32] - Non-current assets increased to ¥198,347,323.22 from ¥140,310,102.12, reflecting a growth of approximately 41.4%[33] - Total liabilities decreased to ¥180,646,628.02 from ¥309,738,691.87, a reduction of about 41.6%[34] - The balance of other receivables at the end of the period was 11.87 million yuan, an increase of 79.41% from the beginning of the year, mainly due to loans for product testing and unreturned operational reserve funds[17] - The balance of intangible assets at the end of the period was 41.73 million yuan, an increase of 355.78% from the beginning of the year, primarily due to the cash acquisition of 60% of Shanghai Qianyu's shares[17] - The balance of goodwill increased by 8.06 million yuan, mainly due to the cash acquisition of 60% of Shanghai Qianyu's shares, where the acquisition cost exceeded the fair value of identifiable net assets[18] - The balance of long-term equity investments at the end of the period was 21.17 million yuan, primarily due to investments in Shanghai Zhiyu through capital increase and equity transfer[17] - The balance of contract liabilities at the end of the period was 7.41 million yuan, an increase of 60.88% from the beginning of the year, mainly due to advance payments received from agents[18] Cash Flow - The net cash flow from operating activities was a negative CNY 8,651,961.16, an increase in outflow of 26.28% year-on-year[9] - The company's operating cash flow net amount was -144.38 million yuan, a decrease of 95.68% compared to the same period last year, mainly due to lower cash receipts from sales[22] - The cash inflow from operating activities was CNY 201,035,483.27, a decrease of 23.4% compared to CNY 262,385,779.89 in the previous period[51] - The net cash flow from operating activities was -CNY 144,375,676.25, worsening from -CNY 73,780,357.39 in the same period last year[51] - The cash inflow from investment activities totaled CNY 83,423,177.35, down from CNY 131,217,180.85 in the previous period[53] - The net cash flow from investment activities was CNY 39,448,899.52, a decrease from CNY 49,164,415.78 year-on-year[53] - The cash inflow from financing activities was CNY 20,000,000.00, compared to CNY 18,200,000.00 in the previous period[53] - The net cash flow from financing activities was CNY 14,401,784.89, slightly down from CNY 15,008,157.43 in the same period last year[53] Shareholder Information - The total number of shareholders at the end of the reporting period was 10,116[13] - The largest shareholder, Chen Chongjun, held 28.38% of the shares, amounting to 57,550,500 shares, with 12,400,000 shares pledged[13] - The company did not engage in any repurchase transactions during the reporting period[14] Research and Development - The company's research and development expenses for the period were 21.44 million yuan, a decrease of 31.82% compared to the same period last year[22] - Research and development expenses for Q3 2020 were ¥4,577,704.47, down 61.7% from ¥11,957,499.59 in Q3 2019[41] - Research and development expenses were reduced to ¥21,444,532.96 from ¥31,451,431.83, a decrease of approximately 31.9% year-over-year[47] Strategic Focus - The company plans to continue expanding its market presence and investing in new technologies, as indicated by the significant increase in intangible assets and long-term equity investments[17] - The company is focusing on cost reduction strategies to improve financial performance in the upcoming quarters[39]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥98,212,488.54, representing a 4.54% increase compared to ¥93,944,913.00 in the same period last year[18]. - The net profit attributable to shareholders was a loss of ¥11,709,521.78, which is a 180.42% decline from a loss of ¥4,175,780.43 in the previous year[18]. - The net cash flow from operating activities was -¥135,723,715.09, a decrease of 27.92% compared to -¥106,101,086.89 in the same period last year[18]. - The total assets at the end of the reporting period were ¥808,145,992.29, down 10.01% from ¥898,026,171.22 at the end of the previous year[18]. - The net assets attributable to shareholders decreased by 0.72%, from ¥588,286,560.75 to ¥584,056,969.28[18]. - The basic earnings per share were -¥0.06, a decline of 173.42% from -¥0.02 in the same period last year[18]. - The company reported a significant increase in investment income, rising by 96.40% to ¥1,288,529.56 from ¥656,073.97[63]. - The company reported a total revenue of 100 million yuan for the first half of 2020, reflecting a year-on-year increase of 15%[100]. - The total comprehensive income for the first half of 2020 was -16,131,894.76 CNY, compared to -2,353,621.08 CNY in the same period of 2019[169]. Assets and Liabilities - Cash and cash equivalents at the end of the reporting period amounted to ¥172,998,512.38, representing 21.41% of total assets, an increase of 2.88% compared to the previous year[67]. - Accounts receivable increased to ¥196,131,577.26, accounting for 24.27% of total assets, up by 6.04% year-on-year, primarily due to increased sales and warranty deposits[67]. - Inventory decreased to ¥164,688,955.75, making up 20.38% of total assets, with a slight increase of 0.53% compared to the previous year[67]. - Long-term equity investments reached ¥13,084,735.04, representing 1.62% of total assets, due to an investment in Shanghai Zhiyu Company, acquiring a 20.41% stake[67]. - Total liabilities decreased from ¥309,738,691.87 to ¥213,480,755.17, a decline of approximately 31.1%[156]. - Total equity increased from ¥588,287,479.35 to ¥594,665,237.12, showing a growth of about 1.3%[157]. Research and Development - The company holds 623 patents, including 134 invention patents, 438 utility model patents, and 51 design patents, showcasing its strong R&D capabilities[47]. - The company is focusing on AI-based anti-counterfeiting technology and machine vision applications to enhance product competitiveness[47]. - The company has increased its development expenditures by 1.27 million due to software R&D projects meeting capitalization criteria[45]. - Research and development investment decreased by 13.48% to ¥16,866,828.49 from ¥19,493,932.24[63]. Market and Product Development - The company provides advanced financial technology solutions, including cash sorting machines and comprehensive business management systems, utilizing cutting-edge technologies such as image recognition and artificial intelligence[26]. - The company aims to expand its market presence by leveraging its patented technologies and software solutions in the cash handling sector[51]. - The introduction of new products, such as the high-speed cash sorting machine and automatic bundling devices, is expected to drive revenue growth in the upcoming quarters[50]. - The company is actively pursuing partnerships and collaborations to enhance its technological capabilities and market reach[49]. - The company is exploring potential mergers and acquisitions to accelerate growth and expand its technological portfolio[49]. Corporate Governance and Compliance - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company has not reported any significant changes in project feasibility or issues in the use and disclosure of raised funds[78]. - The company has established a commitment to avoid engaging in competitive activities with its subsidiaries[96]. - The company has a share transfer limit for directors and senior management, restricting annual transfers to 25% of their holdings[97]. - The company has not faced any media scrutiny during the reporting period[102]. Future Outlook - The future outlook for the company includes expanding its product offerings and enhancing its technological capabilities to meet the growing demand for financial derivatives[31]. - The company provided a positive outlook for the second half of 2020, projecting a revenue growth of 25% based on new product launches and market expansion strategies[54]. - The management expressed confidence in achieving its performance guidance for the upcoming fiscal year, supported by strong demand for its products[50]. - The company is focusing on the development of intelligent financial self-service equipment, responding to the rapid growth in non-cash self-service devices, which are expected to have higher profit margins compared to traditional cash processing equipment[80]. Risks and Challenges - The company faced risks and has outlined corresponding measures in its report, which investors are advised to review carefully[5]. - The company acknowledges the challenges in market expansion and the lengthy preparation cycles for new product launches[88]. - There is a risk of declining gross margins due to intensified market competition, necessitating timely product launches and upgrades to maintain market share[89]. - The company is experiencing a high demand for technical and management talent, and risks talent shortages if it cannot quickly fill these positions[90].