珠海汇金科技股份有限公司 2020 年第一季度报告全文 珠海汇金科技股份有限公司 2020 年第一季度报告 2020-032 2020 年 04 月 1 珠海汇金科技股份有限公司 2020 年第一季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，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。 公司负责人陈喆、主管会计工作负责人孙玉玲及会计机构负责人(会计主管 人员)孙玉玲声明：保证季度报告中财务报表的真实、准确、完整。 2 珠海汇金科技股份有限公司 2020 年第一季度报告全文 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 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业总收入（元） | 37,739,426.04 | 53,568,381.69 | -29.55% | | 归属于上市公司股东的净利润（元） | 6,070,972.85 | ...

Financial Performance - The company's operating revenue for 2019 was ¥196,542,876.01, a decrease of 19.64% compared to ¥244,580,350.28 in 2018[21]. - The net profit attributable to shareholders for 2019 was ¥20,118,329.09, down 22.73% from ¥26,037,504.42 in 2018[21]. - The net profit after deducting non-recurring gains and losses was ¥7,383,347.52, an increase of 33.41% from ¥5,534,245.08 in 2018[21]. - The net cash flow from operating activities was ¥52,417,303.66, a significant increase of 206.80% compared to -¥49,078,930.65 in 2018[21]. - The total assets at the end of 2019 were ¥783,491,877.45, a decrease of 0.91% from ¥790,680,560.65 at the end of 2018[21]. - The net assets attributable to shareholders decreased by 2.28% to ¥669,725,192.26 from ¥685,376,542.47 in 2018[21]. - The weighted average return on equity for 2019 was 2.99%, down from 3.84% in 2018[21]. - The company achieved a gross profit margin of 58.16% in 2019, an increase of 7.28% compared to the previous year[60]. - The company reported a net profit of ¥18,606,222.72 for 2019, with a significant difference of ¥33,811,080.91 compared to the net cash flow from operating activities[76]. Dividend Distribution - The company reported a profit distribution plan to distribute cash dividends of 0.8 RMB per 10 shares, based on a total of 253,736,848 shares[10]. - A cash dividend of RMB 0.80 per 10 shares (including tax) was distributed to all shareholders, with no stock dividends or capital reserve transfers[116]. - The total cash dividend amount for 2019 was RMB 20,298,947.84, which accounted for 100% of the total profit distribution[115]. - The company plans to maintain a stable and active profit distribution policy, prioritizing cash dividends, with a minimum of 10% of distributable profits allocated for cash dividends annually[111]. - In the case of significant capital expenditures, the minimum cash dividend ratio is set at 20% for companies in a growth phase[112]. - The company’s profit distribution plan for 2019 was approved by the board and aligned with the company’s articles of association[115]. - The company has established a three-year shareholder return plan for 2019-2021, emphasizing sustainable and reasonable returns to investors[110]. Research and Development - The company has a strong focus on R&D, with over 95% of its technological achievements converted into products, and has participated in the formulation of 3 national and industry standards[36]. - The company has obtained 22 invention patents, 48 utility model patents, and 18 design patents, emphasizing its commitment to innovation and patent protection[39]. - The company is focused on applying high-tech solutions such as artificial intelligence and IoT in the financial sector, aiming to reduce operational costs and control risks systematically[37]. - The company aims to enhance its R&D capabilities and align product planning with financial industry trends and customer needs to improve profitability[103]. - The company reported an R&D investment amounting to ¥32,347,916.13 in 2019, representing 16.46% of total revenue, an increase from 14.68% in 2018[71]. Market Position and Strategy - The company emphasizes the importance of maintaining a stable and growing customer base in the banking sector, which is crucial for its operational stability and growth[8]. - The company aims to enhance its competitive strength and industry position by accelerating the development and promotion of new products[7]. - The company is focused on maintaining its market share and influence by timely launching new products and upgrading existing ones[9]. - The company has established a nationwide customer network, serving major commercial banks and financial institutions across China[47]. - The company has a strong brand advantage due to its long-term relationships with banking clients, which creates barriers for new entrants[47]. Risks and Challenges - The company faces risks related to the development and market expansion of new products, which may have uncertain revenue expectations due to lengthy promotion cycles[7]. - The company acknowledges the risk of declining gross margins due to intensified competition in the financial technology sector and plans to focus on innovation to maintain its leading advantage[9]. - The company recognizes the potential impact of macroeconomic factors and regulatory changes on the banking industry, which could affect its business development[8]. Compliance and Governance - The company emphasizes compliance with the requirements of the Growth Enterprise Market and aims to enhance corporate governance and risk management[105]. - The company has adhered to strict compliance with its articles of association and relevant regulations regarding related party transactions[146]. - The company has established a profit distribution policy, particularly focusing on cash dividends, to ensure investor returns[143]. Asset Management and Investments - The company reported a total investment of ¥181,707,551.79 during the reporting period, representing a significant increase of 283.46% compared to the previous year's investment[85]. - The company has invested a total of 33,296.61 million CNY in fundraising projects, with 18,022.5 million CNY allocated to the R&D center construction project[93]. - The company has a bank financial product with a principal amount of 6 million CNY, yielding an annualized return of 3.35%[179]. - The company raised a total of 4,000 million in funds through wealth management products with a return rate of 3.00% in November 2019[181]. Corporate Social Responsibility - The company actively engages in social responsibility initiatives, focusing on community support and employee rights protection[186]. - The company established a charity fund focused on supporting social welfare initiatives in Zhuhai, including scholarships for local schools[187]. - The company has a comprehensive employee welfare system, providing social insurance and optimizing employee care[187].

Financial Performance - Operating revenue for the reporting period was CNY 38,832,944.53, representing a year-on-year increase of 10.30%[8] - Net profit attributable to shareholders for the reporting period was CNY 1,325,687.17, an increase of 7.30% year-on-year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY -453,578.78, a significant decrease of 88.88% compared to the same period last year[8] - Basic earnings per share for the reporting period remained at CNY 0.005, unchanged from the previous year[8] - The weighted average return on net assets was 0.20%, an increase of 0.02% compared to the previous year[8] - Total operating revenue for Q3 2019 was CNY 38,832,944.53, an increase from CNY 35,205,356.16 in the same period last year, representing a growth of approximately 7.4%[43] - Net profit for Q3 2019 was CNY 1,315,636.21, compared to CNY 1,087,767.25 in the previous year, reflecting an increase of approximately 21%[44] - The total comprehensive income for Q3 2019 was CNY 1,315,636.21, compared to CNY 1,087,767.25 in the same period last year, showing an increase of approximately 21%[45] - The net profit for the third quarter of 2019 was CNY 18,019,939.54, an increase of 16.3% compared to CNY 15,507,969.04 in the same period last year[56] - Operating profit reached CNY 21,485,116.91, up from CNY 18,921,684.62, reflecting a growth of 8.2% year-over-year[56] Cash Flow and Investments - The net cash flow from operating activities for the year-to-date was CNY 5,758,143.27, an increase of 105.03%[8] - Net cash flow from operating activities increased by 105.03% year-on-year, attributed to increased collection of sales payments and reduced procurement payments[19] - Net cash flow from investing activities increased by 95.53% year-on-year, mainly due to increased infrastructure investment[19] - The cash flow from operating activities generated a net amount of CNY 5,758,143.27, a significant recovery from a negative cash flow of CNY -114,456,375.67 in the same period last year[61] - The net cash flow from investment activities was negative 14,439,195.18 CNY, an improvement from negative 322,817,843.47 CNY in the previous year[64] - The net cash flow from financing activities was negative 48,552,404.64 CNY, compared to negative 27,797,726.14 CNY in the same quarter last year[65] Assets and Liabilities - Total assets at the end of the reporting period were CNY 715,363,949.88, a decrease of 9.53% compared to the end of the previous year[8] - The company's current assets totaled CNY 513,999,115.68, down from CNY 705,406,877.33 at the end of 2018, indicating a decrease of about 27.2%[34] - Total liabilities decreased to CNY 45,661,083.92 from CNY 105,447,632.39, a decline of about 56.7%[35] - The company's equity attributable to shareholders decreased to CNY 670,338,510.52 from CNY 685,376,542.47, a decrease of approximately 2.2%[36] - The total assets as of Q3 2019 amounted to CNY 712,328,743.58, down from CNY 786,511,653.12 at the end of the previous period[41] - Total liabilities decreased to CNY 41,328,643.83 from CNY 100,985,634.63, a significant reduction of approximately 59%[40] - The company's equity totaled CNY 671,000,099.75, slightly down from CNY 685,526,018.49 in the previous period[41] Shareholder Information - The total number of shareholders at the end of the reporting period was 22,557[12] - The largest shareholder, Chen Zhe, holds 38.00% of the shares, totaling 96,417,558 shares[12] - The company repurchased and canceled 1,436,000 shares of restricted stock, accounting for 0.5628% of the total share capital before the repurchase[22] Research and Development - Research and development expenses were CNY 6,294,512.43, down from CNY 9,339,058.00, indicating a decrease of about 32.5%[43] - Research and development expenses for the year-to-date period were ¥22,652,471.88, down from ¥25,208,327.34, suggesting a potential shift in R&D focus[52] - Research and development expenses amounted to CNY 22,652,471.88, a decrease of 10.1% from CNY 25,208,327.34 in the previous year[56] Government Subsidies and Tax - The company received government subsidies amounting to CNY 787,265.00 during the reporting period[9] - The company achieved a significant reduction in tax expenses, with tax and additional charges dropping to ¥620,172.56 from ¥1,641,557.76[50] - The company received CNY 7,370,343.76 in tax refunds, down from CNY 13,075,711.48 in the previous year[60]

Financial Performance - Total operating revenue for the first half of 2019 was RMB 105,081,272.64, an increase of 5.46% compared to RMB 99,640,005.04 in the same period last year[18]. - Net profit attributable to shareholders was RMB 16,182,139.15, representing a growth of 10.72% from RMB 14,614,985.55 year-on-year[18]. - Net profit after deducting non-recurring gains and losses reached RMB 10,414,319.29, a significant increase of 58.52% compared to RMB 6,569,860.74 in the previous year[18]. - Basic earnings per share increased to RMB 0.0641, up 10.71% from RMB 0.0579 in the previous year[18]. - The total profit for the first half of 2019 was CNY 19,780,004.61, compared to CNY 17,105,973.16 in the previous year, marking an increase of around 9.8%[151]. - The company's operating profit for the first half of 2019 was CNY 19,781,787.25, an increase from CNY 16,957,936.57 in the same period of 2018, representing a growth of approximately 16.5%[149]. - The net profit for the current period was reported as CNY 14,118,781, indicating a decrease of 16,538,600 compared to the previous period[172]. - The company reported a net profit margin of 15%, reflecting improved operational efficiency[199]. Cash Flow and Assets - The net cash flow from operating activities improved to -RMB 14,204,304.88, a reduction of 84.38% from -RMB 90,932,147.57 in the same period last year[18]. - Cash and cash equivalents decreased by 78.09% compared to the beginning of the year, mainly due to payments for construction projects[30]. - The total assets at the end of the reporting period were RMB 715,952,109.81, a decrease of 9.45% from RMB 790,680,560.65 at the end of the previous year[18]. - The total liabilities decreased to CNY 47,933,630.06 as of June 30, 2019, down from CNY 105,447,632.39 at the end of 2018, a reduction of approximately 54.5%[138]. - The ending balance of cash and cash equivalents was 35,600,952.40 CNY, down from 88,995,349.05 CNY at the end of the previous year, representing a decline of approximately 60%[156]. - The total assets at the end of the reporting period amounted to CNY 667,530,840, showing a significant increase compared to the previous period[174]. Investment and R&D - Research and development expenses increased by 3.08% to 16,357,959.45, indicating a continued focus on innovation[40]. - The company invested 105,453,260.37 in fixed assets, intangible assets, and other long-term assets, a 651.33% increase from 14,035,454.05 in the previous year[40]. - The company is focusing on technological advancements and new strategies to enhance its market presence[175]. - Investment in R&D for new technologies reached 10 million RMB, focusing on enhancing product features and user experience[198]. Market and Competition - The company faces risks related to new product development and market expansion, as well as increased competition affecting gross margins[4]. - The company is actively expanding its market presence by leveraging artificial intelligence and IoT technologies to provide professional solutions for the financial industry[36]. - The company anticipates potential declines in gross margins due to increased competition in the banking risk management market[72]. - The company plans to focus on expanding its market presence and enhancing its product offerings in the upcoming quarters[169]. Corporate Governance and Shareholder Actions - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company held several shareholder meetings with participation rates around 65% during the reporting period[77]. - The company completed the repurchase and cancellation of 294,872 restricted stocks for 5 departing incentive recipients on April 19, 2019[84]. - A total of 1,436,000 restricted stocks were approved for repurchase and cancellation due to unmet performance conditions and departures of incentive recipients[85]. Strategic Initiatives - The company is planning a major asset restructuring to acquire 100% equity of Jiangxi Shangtong Technology Development Co., Ltd., a leading cloud information service provider[38]. - A strategic cooperation agreement was signed with China Great Wall Technology Group to enhance collaborative innovation capabilities[37]. - The company is committed to maintaining transparency in its financial management practices, as evidenced by detailed reporting on entrusted funds[61]. Risk Management - The company is focusing on the development of new products to meet the evolving needs of the banking industry, which may increase development risks[72]. - The company is heavily reliant on the banking industry, making it vulnerable to changes in the economic environment and banking sector performance[72]. - The company emphasizes the importance of patent protection to maintain its competitive advantage in the market[32].

Financial Performance - Total revenue for Q1 2019 was ¥53,568,381.69, an increase of 2.89% compared to ¥52,064,242.77 in the same period last year[8]. - Net profit attributable to shareholders was ¥9,882,104.94, representing a 4.04% increase from ¥9,498,266.10 year-on-year[8]. - Net profit excluding non-recurring items rose significantly by 40.04% to ¥7,224,555.36 from ¥5,158,846.36 in the previous year[8]. - The company reported a diluted earnings per share of ¥0.06, unchanged from the same period last year[8]. - The net profit for Q1 2019 was CNY 9,747,331.26, representing a 3.29% increase from CNY 9,436,593.71 in the previous year[47]. - The total profit for the period was CNY 11,857,358.88, up from CNY 11,576,655.48, reflecting a growth of 2.4% year-over-year[51]. - Operating profit reached CNY 11,859,168.47, compared to CNY 11,576,655.48 in the previous year, indicating a 2.4% increase[51]. - The company’s total comprehensive income for the period was CNY 10,022,379.58, compared to CNY 9,562,455.74 in the same quarter last year[52]. Cash Flow - The net cash flow from operating activities improved by 52.90%, reaching -¥22,918,875.37 compared to -¥48,655,190.55 in the same period last year[8]. - The cash flow from operating activities showed a net outflow of CNY 22,918,875.37, an improvement from a net outflow of CNY 48,655,190.55 in the same quarter last year[55]. - The total cash outflow from operating activities was ¥63,955,090.71, down from ¥91,953,897.86 year-over-year[59]. - The cash inflow from the recovery of investments was ¥287,000,000.00, indicating a strong performance in investment recovery[59]. - The total cash inflow from investment activities was CNY 289,615,237.90, compared to zero in the same period last year[56]. - The company did not report any cash inflow from financing activities, maintaining a net cash flow of -¥3,392,302.30 in this category[60]. Assets and Liabilities - Total assets decreased by 4.59% to ¥754,418,755.99 from ¥790,680,560.65 at the end of the previous year[8]. - Total current assets decreased to CNY 662,455,473.86 from CNY 705,406,877.33, a decline of approximately 6.1%[37]. - Total liabilities decreased to CNY 59,069,748.96 from CNY 105,447,632.39, a reduction of approximately 44%[38]. - The company's equity attributable to shareholders increased to CNY 695,627,394.92 from CNY 685,376,542.47, an increase of about 1.8%[39]. - The company reported a decrease in short-term borrowings, remaining at CNY 0.00[38]. Shareholder Information - The total number of shareholders at the end of the reporting period was 14,030[12]. - The largest shareholder, Chen Zhe, holds 37.72% of the shares, amounting to 64,278,372 shares[12]. Investments and Projects - The total amount of raised funds for the quarter is 33,296.61 million, with 3,848.18 million invested during this period[27]. - The "Logistics Internal Control Management Solution Construction Project" has been terminated, with the remaining balance of 1,359.95 million redirected to the "R&D Center Construction Project" and "Bank Seal Management Solution Construction Project" investments[28]. - The "R&D Center Construction Project" has a total investment of 4,154.45 million, with 793.97 million invested so far, achieving 21.34% of the planned progress[27]. - The "Bank Seal Management Solution Construction Project" has a total investment of 6,631.3 million, with 1,107.4 million invested, achieving 16.70% of the planned progress[27]. Operational Efficiency - The company continues to strengthen its core competitiveness in the financial risk prevention sector and has not made significant changes to its main business model[20]. - The company has accelerated the construction of its information platform and system to enhance operational efficiency and management standards[22]. - The company plans to continue focusing on market expansion and new product development in the upcoming quarters[39].

Financial Performance - The company reported a profit distribution plan of 2.00 RMB per 10 shares (including tax) and a capital reserve increase of 5 shares for every 10 shares held[11]. - The company's operating revenue for 2018 was ¥244,580,350.28, representing a 1.06% increase from ¥242,018,669.49 in 2017[23]. - The net profit attributable to shareholders decreased by 67.34% to ¥26,037,504.42 in 2018 from ¥79,724,732.27 in 2017[23]. - The net profit after deducting non-recurring gains and losses was ¥5,534,245.08, down 90.49% from ¥58,188,602.63 in the previous year[23]. - Basic and diluted earnings per share fell by 66.67% to ¥0.16 from ¥0.48 in 2017[23]. - The company reported a total revenue of 1.2 billion RMB for the year 2018, representing a year-over-year growth of 15%[40]. - The company reported a net profit of ¥25,935,804.17 for 2018, with significant cash flow discrepancies attributed to seasonal revenue concentration in the fourth quarter[74]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion RMB[114]. Market and Product Development - The company focuses on developing new products that meet the evolving needs of the banking industry, which is critical for asset security and system reliability[7]. - The company is actively monitoring financial industry reforms and technological advancements to align its product development strategies accordingly[7]. - New product development includes the launch of a smart cash management system, expected to enhance operational efficiency by 30%[40]. - The company has developed new AI and IoT solutions for banking operations, including facial and voice recognition systems, which are currently being implemented[48]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2020[41]. - A strategic acquisition of a local tech firm was completed, which is anticipated to contribute an additional 200 million RMB in revenue annually[40]. - The company has signed a strategic cooperation agreement with Obsidian Technology to jointly develop high-security 3D facial recognition products for the financial industry[49]. Risks and Challenges - The company faces risks related to new product development and market expansion, with potential uncertainties in future revenue generation due to long preparation cycles for new product launches[6]. - The company's main business relies heavily on the banking sector, making it vulnerable to changes in the macroeconomic environment and banking industry dynamics[8]. - The company anticipates challenges from increased competition in the banking internal control risk management market, which could lead to a decline in gross profit margins[9]. - The company acknowledges the potential for lower-than-expected market demand for new products, which could impact the effectiveness of its fundraising investments[11]. Research and Development - The company emphasizes the importance of accurately predicting industry technology trends and customer needs to maintain its competitive edge[6]. - The company has developed a series of internal control risk management solutions tailored to banking business processes, enhancing operational efficiency and risk control[39]. - Research and development expenses increased by 18%, totaling 150 million RMB, to support innovation initiatives[40]. - The company actively applies for patents to maintain its competitive advantage, with numerous patents pending as of December 31, 2018[39]. Financial Management and Fundraising - The company is committed to addressing the risks associated with its fundraising projects, which are focused on the banking internal control risk management sector[11]. - The company has been managing idle fundraising through cash management strategies[83]. - The company raised a total of 12,500 million in funds through wealth management products with an annualized return of 3.80%[160]. - The company is focused on enhancing its financial product offerings to meet the growing demand from investors[160]. Corporate Governance and Compliance - The company emphasizes the importance of internal control and quality management to improve operational efficiency[95]. - The company has established a performance evaluation mechanism to enhance talent management and employee engagement[95]. - The company is committed to maintaining a competitive annualized return on its financial products, which is crucial for attracting investors[160]. - The company has a complete internal control system and a modern corporate governance structure[165]. Shareholder Information - The company’s total share capital as of April 24, 2019, is 170,115,232 shares[102]. - The company has committed to a cash dividend policy, ensuring a minimum payout ratio of 30% of net profits[129]. - The company reported a cash dividend distribution for 2018 set at RMB 2.00 per 10 shares, totaling RMB 34,023,046.40[102]. - The company has not sold any significant assets or equity during the reporting period[90][91].

Financial Performance - Net profit attributable to shareholders was CNY 1,235,463.05, down 81.07% year-on-year[8]. - Operating revenue for the reporting period was CNY 35,205,356.16, a decline of 9.96% compared to the same period last year[8]. - Basic earnings per share were CNY 0.01, down 75.00% year-on-year[8]. - The weighted average return on net assets was 0.18%, a decrease of 0.86% compared to the previous year[8]. - Operating profit decreased significantly to ¥1,562,743.82 from ¥7,757,208.05, a decline of approximately 79.9%[43]. - Net profit for the current period is ¥1,087,767.25, down from ¥6,524,989.83, reflecting a decrease of around 83.3%[43]. - The total profit for the current period is CNY 19,970,282.25, a decrease of 62.0% from CNY 52,464,013.88 in the previous period[51]. - The company's operating profit for the current period is CNY 19,822,245.66, a decrease of 61.0% from CNY 50,870,778.64 in the previous period[51]. Cash Flow - The net cash flow from operating activities for the year-to-date was CNY -114,456,375.67, a decrease of 158.62%[8]. - The company's operating cash flow net amount is CNY -114,456,375.67, worsening from CNY -44,256,879.25 in the previous period[56]. - The net cash flow from operating activities was -113,256,869.76, compared to -44,256,879.25 in the previous period, indicating a decline in operational cash flow[61]. - Cash inflow from investment activities totaled 858,903,876.09, down from 1,137,590,868.64 in the previous period, reflecting a decrease of approximately 24.5%[61]. - The net cash flow from investment activities was -322,817,843.47, a significant drop from 6,975,651.56 in the previous period[61]. - Cash inflow from financing activities was 2,834,400.00, an increase from 978,000.00 in the previous period, representing a growth of approximately 189.5%[62]. - The net cash flow from financing activities was -27,797,726.14, worsening from -19,182,000.00 in the previous period[62]. - The ending balance of cash and cash equivalents was 48,961,034.68, down from 82,125,146.56 in the previous period, indicating a decrease of approximately 40.5%[62]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 740,386,271.07, a decrease of 3.55% compared to the end of the previous year[8]. - Current assets totaled CNY 684,365,913.84, down 6.1% from CNY 728,845,960.04 at the start of the period[34]. - Total liabilities decreased to CNY 69,453,768.13, down 19.4% from CNY 86,219,948.83[36]. - Shareholders' equity totaled CNY 670,932,502.94, a slight decrease from CNY 681,396,641.91 at the beginning of the period[36]. - The company reported a significant reduction in short-term borrowings, with current liabilities totaling CNY 63,153,884.98, down 20.1% from CNY 78,903,903.32[36]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 14,655[12]. - The largest shareholder, Chen Zhe, held 37.70% of the shares, totaling 64,278,372 shares[12]. - The company did not conduct any repurchase transactions among the top 10 shareholders during the reporting period[13]. Inventory and Receivables - Accounts receivable increased by 42.60% compared to the beginning of the year, influenced by the year-end settlement characteristics of customers[19]. - Prepayments increased by 292.41% compared to the beginning of the year, attributed to increased inventory[19]. - Inventory increased by 76.30% compared to the beginning of the year, due to seasonal characteristics of the industry and increased stocking[19]. Operating Costs and R&D - Operating costs increased by 68.06% year-on-year, mainly due to costs associated with new products and business expansion[20]. - R&D expenses increased by 39.38% year-on-year, reflecting increased investment in research and talent acquisition[22]. - Research and development expenses rose to ¥9,339,058.00 from ¥7,288,694.31, an increase of about 28.1%[41]. - R&D expenses for the year-to-date period were ¥25,208,327.34, compared to ¥18,085,922.85, reflecting an increase of approximately 39.2%[50]. Other Income and Gains - Non-recurring gains and losses totaled CNY 13,357,731.81, including government subsidies of CNY 3,764,462.50 and investment income of CNY 11,802,479.51[9]. - Other income increased to ¥6,825,329.20 from ¥1,178,667.14, showing a growth of approximately 479.5%[43]. - The company reported other income of CNY 16,840,173.98, an increase from CNY 10,821,864.17 in the previous period[54]. Asset Restructuring - The company is actively pursuing a major asset restructuring, with multiple progress announcements made throughout the reporting period[21]. - The company plans to continue the major asset restructuring and will communicate with transaction parties for feasible transaction plans[24]. - The company has initiated the repurchase and cancellation of restricted stock due to the departure of certain incentive plan participants[24].

Financial Performance - Total revenue for the first half of 2018 was RMB 99,640,005.04, representing a 3.64% increase compared to RMB 96,142,344.38 in the same period last year[19]. - Net profit attributable to shareholders decreased by 61.21% to RMB 14,614,985.55 from RMB 37,675,955.31 year-on-year[19]. - Net profit after deducting non-recurring gains and losses fell by 76.51% to RMB 6,569,860.74 compared to RMB 27,969,353.58 in the previous year[19]. - Basic and diluted earnings per share decreased by 59.09% to RMB 0.09 from RMB 0.22 year-on-year[19]. - The weighted average return on equity was 2.13%, down from 6.02% in the previous year, a decrease of 3.89%[19]. - The company's revenue for the reporting period was ¥99,640,005.04, representing a year-on-year increase of 3.64% compared to ¥96,142,344.38 in the same period last year[44]. - The net profit attributable to shareholders of the listed company was 14.61 million yuan, a decrease of 61.21% compared to the same period last year[37]. - The gross margin for the software and information technology sector decreased by 21.34% year-on-year to 52.96%[49]. - The company reported a net profit impact of over 10% from its major subsidiaries[74]. Cash Flow and Assets - The net cash flow from operating activities was negative at RMB -90,932,147.57, a decline of 145.20% from RMB -37,084,958.50 in the same period last year[19]. - The company reported a net cash increase of -¥425,459,193.01, a drastic decrease of 942.83% compared to -¥40,798,416.97 in the previous year, driven by higher spending on inventory and R&D[45]. - The company's cash and cash equivalents at the end of the reporting period were ¥94,295,349.05, a decrease of 1.97% compared to the previous year[54]. - The company's total assets decreased to CNY 739,563,930.09 from CNY 767,631,629.43, a reduction of about 3.7%[176]. - Cash and cash equivalents dropped significantly to CNY 87,800,423.25 from CNY 512,933,474.05, a decrease of approximately 83.9%[174]. - The total current assets decreased from CNY 728,845,960.04 to CNY 696,350,212.52, a reduction of about 4.4%[170]. Operational Efficiency and R&D - The company emphasizes R&D investment, maintaining a high technology achievement transformation rate[29]. - Research and development expenses rose by 46.98% to ¥15,869,269.34 from ¥10,797,228.54, reflecting the company's commitment to enhancing talent and R&D capabilities[45]. - The company is actively advancing its R&D projects, focusing on product optimization and market-oriented development strategies[40]. - The company is focused on developing new products to meet the evolving needs of the banking industry, which may involve risks related to product development and market expansion[76]. - The company is implementing IPD, ERP, and CRM systems to improve operational efficiency and enhance market competitiveness[38]. Market and Competition - The company faces risks related to new product development, market expansion, and increased competition affecting gross margins[5]. - The company is exposed to risks of declining gross margins due to increased competition in the banking internal control risk management sector[77]. - The financial technology sector is experiencing significant market potential and development space, driven by the need for enhanced risk management in the banking industry[29]. - The company is actively expanding mobile business projects and exploring new application scenarios to enhance market capabilities[38]. - The company plans to enhance communication with clients and expand market regions while improving cost management to increase profit growth points[79]. Strategic Initiatives - The company initiated a major asset restructuring, planning to acquire 100% equity of Beijing Jie Wen Technology Co., Ltd. through a combination of issuing shares and cash payments[42]. - The company has developed innovative solutions such as bank self-service cash management systems and bank seal management systems, which are domestic firsts[31]. - The company is committed to continuous product innovation and improvement to meet the evolving needs of the financial industry[37]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2019[90]. - A strategic acquisition of a local tech firm was announced, valued at 500 million RMB, aimed at enhancing technological capabilities[91]. Shareholder and Governance - The company plans to not distribute cash dividends or issue bonus shares for the half-year period, indicating a focus on reinvestment[83]. - The company has implemented a stock incentive plan to enhance team stability and support rapid growth[39]. - The company has committed to fulfilling its promises related to asset restructuring and public offerings, ensuring compliance with regulations[84]. - The company has established a framework for equity incentives linked to performance measures[107]. - The company has a long-term commitment to fulfill its obligations under the stock repurchase plan established in June 2014[106]. Risks and Compliance - The company faces risks in new market expansion and product promotion, which could lead to lower-than-expected market demand and potential operational performance decline due to increased depreciation and R&D expenses[78]. - The company has not encountered any significant changes in project feasibility or fundraising project adjustments during the reporting period[65]. - The company has not reported any issues regarding the use and disclosure of raised funds[64]. - The company has not faced any penalties or corrective actions during the reporting period[116]. - The company is not classified as a key pollutant unit by environmental protection authorities, indicating compliance with environmental regulations[134].

Financial Performance - Total revenue for Q1 2018 was ¥52,064,242.77, an increase of 7.26% compared to ¥48,538,083.21 in the same period last year[8] - Net profit attributable to shareholders decreased by 52.62% to ¥9,498,266.10 from ¥20,047,098.87 year-on-year[8] - Net profit after deducting non-recurring gains and losses fell by 68.65% to ¥5,158,846.36 compared to ¥16,454,337.49 in the previous year[8] - Basic and diluted earnings per share decreased by 54.17% to ¥0.11 from ¥0.24 year-on-year[8] - The company achieved total operating revenue of ¥52,064,242.77, a year-on-year increase of 7.26%[24] - Net profit attributable to shareholders decreased by 52.62% to ¥9,498,266.10, primarily due to increased costs from R&D and marketing efforts[24] - The operating profit for Q1 2018 was CNY 11,576,655.48, compared to CNY 23,784,923.98 in the previous year, indicating a decline of approximately 51.3%[52] - The company's total profit for Q1 2018 was CNY 11,576,655.48, down from CNY 23,784,923.98 in Q1 2017, a decrease of about 51.3%[52] Cash Flow and Liquidity - The net cash flow from operating activities was -¥48,655,190.55, a decline of 127.70% from -¥21,367,875.25 in the same period last year[8] - Cash and cash equivalents decreased by 426.33 million RMB, a decline of 82.85% compared to the beginning of the year, mainly due to the use of idle funds to purchase financial products[20] - The company's cash and cash equivalents decreased from CNY 514,554,542.06 at the beginning of the period to CNY 88,225,647.89 at the end of the period, indicating a significant reduction[40] - The net cash flow from investment activities was -CNY 377,973,703.62, a significant decline from CNY 2,211,068.59 last year[57] - The net increase in cash and cash equivalents was -CNY 426,628,894.17, compared to -CNY 39,316,806.66 in the previous period[57] Assets and Liabilities - Total assets at the end of the reporting period were ¥757,403,916.27, down 1.33% from ¥767,616,590.74 at the end of the previous year[8] - Current liabilities decreased to CNY 58,242,983.90 from CNY 78,903,903.32[42] - Total liabilities were CNY 65,338,255.65, down from CNY 86,219,948.83[42] - Owner's equity increased to CNY 692,065,660.62 from CNY 681,396,641.91[43] - Accounts receivable increased from CNY 105,711,641.83 to CNY 129,104,303.86, reflecting a growth of approximately 22.14%[40] - Inventory rose from CNY 54,283,743.53 to CNY 63,105,196.18, marking an increase of about 16.83%[40] Operational Costs and Expenses - Operating costs increased by 10.34 million RMB, an increase of 84.82% year-on-year, driven by the company's efforts to expand new products and services in the "mobile intelligent exhibition" sector[22] - The company's sales expenses increased to CNY 13,612,050.66 from CNY 11,873,904.53, marking an increase of approximately 14.7%[52] - The management expenses rose to CNY 11,846,401.01 from CNY 10,060,780.15, reflecting an increase of about 17.7%[52] - The asset impairment loss for Q1 2018 was CNY 2,192,226.56, significantly higher than CNY 165,255.82 in the previous year, indicating a substantial increase[52] Investments and R&D - Key R&D projects include a central control system and an IoT seal management system, with progress reported in product optimization and testing phases[25] - R&D investments have increased, resulting in higher management expenses compared to the previous year, contributing to the decline in net profit[24] - The company is actively recruiting R&D and management talent to strengthen its strategic implementation and innovation capabilities[24] Strategic Focus and Future Outlook - The company aims to enhance technological innovation and market expansion to improve operational efficiency and achieve sustainable development[12] - The company is focusing on new products and business models, including "mobile intelligent business development," which has led to increased costs and a decline in gross margin[24] - The company plans to continue enhancing product quality and brand influence while focusing on internal control and talent development[26] - The company anticipates that the cumulative net profit for the year will not incur losses or significant changes compared to the previous year[34]

Financial Performance - The company's operating revenue for 2017 was ¥242,018,669.49, representing a 10.99% increase compared to ¥218,054,407.37 in 2016[24]. - The net profit attributable to shareholders for 2017 was ¥79,724,732.27, a slight increase of 1.09% from ¥78,861,491.66 in 2016[24]. - The net profit after deducting non-recurring gains and losses decreased by 22.72% to ¥58,188,602.63 from ¥75,300,322.89 in 2016[24]. - The net cash flow from operating activities significantly dropped by 85.77% to ¥9,026,680.57 from ¥63,445,974.14 in 2016[24]. - The total assets at the end of 2017 were ¥767,616,590.74, a 10.63% increase from ¥693,855,346.09 at the end of 2016[24]. - The company's basic earnings per share for 2017 were ¥0.95, down 22.13% from ¥1.22 in 2016[24]. - The weighted average return on equity decreased to 12.37% in 2017 from 27.99% in 2016, reflecting a significant decline in profitability[24]. - The company achieved operating revenue of CNY 242.02 million in 2017, an increase of 10.99% compared to the previous year[46]. - Net profit attributable to shareholders reached CNY 79.72 million, reflecting a growth of 1.09% year-on-year[46]. - The company reported a total revenue of 1.5 billion RMB for the fiscal year 2017, representing a year-over-year growth of 20%[104]. - The company reported a total revenue of 1,429 million in the fiscal year 2017[157]. Profit Distribution - The company reported a profit distribution plan to distribute cash dividends of 3.60 RMB per 10 shares (including tax) based on a total of 85,160,000 shares, with no bonus shares issued[12]. - A cash dividend of 3.60 RMB per 10 shares (including tax) was distributed, totaling 30,657,600 RMB[96]. - The cash dividend accounted for 100% of the total profit distribution amount, reflecting a commitment to shareholder returns[96]. - The cash dividend amount for 2017 was $30,657,600, representing 38.45% of the net profit attributable to ordinary shareholders, which was $79,724,732.27[98]. - In 2016, the cash dividend amount was $20,160,000, accounting for 25.56% of the net profit attributable to ordinary shareholders of $78,861,491.66[98]. Product Development and Innovation - The company focuses on developing new products that meet the evolving needs of the banking industry, which is critical for asset security and system reliability[8]. - The company is actively researching and developing new products to meet the evolving needs of the financial industry[36]. - The company has developed several innovative products for bank risk management, including cash management systems and seal management systems, which are domestic firsts[36]. - The company focuses on independent innovation and continuous technological advancement in the field of bank risk management solutions[36]. - The company aims to enhance product performance and develop new technologies through structural optimization and advanced applications[36]. - The company is positioned to leverage advancements in IoT and AI technologies to enhance risk management capabilities in the banking sector, indicating strong market potential[34]. - The company has applied for multiple patents related to automated cash management and security devices, with several patents expiring between 2022 and 2026[39]. - The company has developed a range of new products, including dynamic password locks and automated stamping machines, enhancing its product portfolio[39]. - The company aims to expand its market presence through innovative technology and product development strategies[41]. Market and Competition - The company anticipates increased competition in the banking internal control risk management sector, which may lead to a decline in gross profit margins if it fails to innovate[10]. - The company's main business relies heavily on the banking sector, making it vulnerable to changes in macroeconomic conditions and banking industry dynamics[9]. - The company is focusing on integrating IoT and AI technologies to enhance risk control solutions in the financial sector[46]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share in the region by 2020[108]. - The company is exploring potential acquisitions to strengthen its market position in the next fiscal year[151]. Financial Management and Governance - The company is committed to ensuring the accuracy and completeness of its financial reports, with key personnel affirming the integrity of the annual report[4]. - The company has established a cash dividend policy to enhance investor returns, with specific arrangements for profit distribution[122]. - The company has a long-term commitment to not engage in any business that competes directly or indirectly with its own operations[123]. - The company has committed to transparency and accountability in its financial reporting and investor communications[122]. - The company has established a performance-based incentive system linked to its profit distribution measures[121]. - The company has a commitment to not using its assets for unrelated investments or consumption activities[121]. - The company has a commitment to not providing financial assistance, including loans, to incentive objects under the 2017 restricted stock incentive plan[126]. - The company has retained the same accounting firm, Ruihua Certified Public Accountants, for five consecutive years[130]. Human Resources and Employee Welfare - The company emphasizes the importance of employee welfare and provides reasonable benefits and development opportunities[160]. - The total compensation for directors and senior management during the reporting period amounted to 5.44 million yuan[198]. - The company’s board of directors and senior management compensation is determined based on annual performance and responsibilities[196]. - The company has a total of 415 employees currently employed[200]. - The number of technical personnel is 189[200]. Risks and Challenges - The company faces risks related to new product development and market expansion, including long preparation cycles and uncertain revenue expectations[8]. - The company acknowledges the risks associated with the implementation of fundraising investment projects, which may not achieve expected benefits if market demand falls short[12]. - The company has reported a significant decrease in inventory levels, down 42.87% year-on-year, primarily due to a 22.65% decline in the production of key components[57]. - The company has not faced any penalties or rectification issues during the reporting period[132]. Subsidiaries and Investments - The company established a new subsidiary, Guizhou Guijin Technology Co., Ltd., with a 51% ownership during the reporting period[129]. - The company has established a nationwide technical service network with a 7-day x 24-hour response capability, enhancing customer engagement and market opportunities[46]. - The company has made several announcements regarding changes in board members and the establishment of overseas offices during the reporting period[163]. Shareholder Information - The company reported a reduction in the number of limited shares held by major shareholders, with significant releases scheduled for November 2019[172]. - The largest shareholder, Chen Zhe, holds 37.78% of the shares, totaling 32,175,000 shares, with no change during the reporting period[178]. - The second-largest shareholder, Ma Zheng, holds 23.84% of the shares, totaling 20,299,500 shares, with a decrease of 6,766,500 shares[178].