Financial Performance - Total revenue for Q1 2018 was CNY 233,838,286.41, representing a 12.37% increase compared to CNY 208,088,114.69 in the same period last year[7]. - Net profit attributable to shareholders was CNY 47,722,092.90, a significant increase of 118.12% from CNY 21,878,343.19 year-on-year[7]. - The net profit after deducting non-recurring gains and losses was CNY 47,437,362.42, up 118.47% from CNY 21,713,902.14 in the previous year[7]. - Basic earnings per share were CNY 0.60, reflecting a 122.22% increase compared to CNY 0.27 in the previous year[7]. - Net profit for the period reached 55,340,574.10, a 153.61% increase compared to 21,821,415.43 in the previous period[22]. - The total comprehensive income attributable to the parent company was CNY 47,722,092.90, compared to CNY 21,878,343.19 in the previous year, marking an increase of about 118.5%[46]. Cash Flow - The net cash flow from operating activities reached CNY 45,375,284.21, marking a 97.02% increase from CNY 23,030,595.67 in the same period last year[7]. - Operating cash flow net amount increased by 97.02% from 23,030,595.67 to 45,375,284.21, mainly due to an increase in gross profit margin[23]. - The net cash flow from operating activities for Q1 2018 was CNY 45,375,284.21, compared to CNY 23,030,595.67 in the previous year, showing an increase of approximately 96.9%[53]. - The company experienced a net cash outflow from investing activities of CNY 3,654,315.04, an improvement from a net outflow of CNY 37,024,171.92 in the previous year[54]. - The company incurred a total of CNY 81,770,982.17 in cash outflows from financing activities, compared to CNY 10,159,473.78 in the previous year, indicating a significant increase in financing activities[54]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 686,950,651.31, a decrease of 1.84% from CNY 699,792,081.92 at the end of the previous year[7]. - The total liabilities decreased to CNY 282.11 million from CNY 350.29 million, a reduction of 19.5%[42]. - The equity attributable to shareholders of the parent company increased to CNY 385.12 million, up from CNY 337.40 million, reflecting a growth of 14.1%[39]. - Cash and cash equivalents decreased to CNY 119.19 million from CNY 167.68 million, a decline of 29.0%[40]. - The company's total liabilities and equity amounted to CNY 686.95 million, slightly down from CNY 699.79 million[39]. Shareholder Information - Total number of common shareholders at the end of the reporting period is 5,534[17]. - The largest shareholder, Guo Qing, holds 26.51% of shares, amounting to 21,204,000 shares, with 8,050,000 shares pledged[17]. - The company has approved a stock option and restricted stock incentive plan, granting a total of 1.5 million options, representing approximately 1.88% of the total share capital at the time of announcement[26]. - The profit distribution plan for 2017 proposes a cash dividend of ¥2.5 per 10 shares (totaling ¥20 million) and a capital reserve conversion of 5 shares for every 10 shares held[30]. Business Operations - The company emphasizes the importance of continuous product development and innovation to maintain competitive advantage in the rapidly evolving digital reading market[10]. - The company faces risks related to intensified market competition and the need for effective cost management as it expands its business and product offerings[15]. - The company plans to enhance its market sensitivity and product innovation capabilities by leveraging strong data processing capabilities and implementing effective talent incentive mechanisms[10]. - The main business segment, digital reading, saw substantial revenue and profit growth, particularly in mobile reading services, impacting overall performance positively[25]. Inventory and Receivables - Other receivables increased by 47.63% from 4,828,001.93 to 7,127,494.95 due to the expansion of business scale[21]. - Inventory rose by 76.88% from 2,725,173.08 to 4,820,277.42, attributed to an increase in products under production[21]. - Accounts receivable increased to CNY 69.88 million from CNY 57.19 million, an increase of 22.1%[40]. Operating Costs and Expenses - Operating costs decreased to CNY 160.47 million from CNY 180.97 million, representing a reduction of 11.3%[44]. - Sales expenses increased by 39.08% from 1,810,190.77 to 2,517,581.00, reflecting the expansion of business operations[22]. - The financial expenses increased to CNY 776,587.67 from CNY 83,127.78, indicating a rise of approximately 834.5%[49].

Financial Performance - The company's operating revenue for 2017 was ¥909,950,451.19, representing a 94.01% increase compared to ¥469,017,723.97 in 2016[21]. - The net profit attributable to shareholders for 2017 was ¥97,027,335.87, a 100.36% increase from ¥48,426,015.14 in 2016[21]. - The net cash flow from operating activities increased by 126.28% to ¥186,997,421.90 in 2017 from ¥82,640,738.85 in 2016[21]. - Basic earnings per share for 2017 were ¥1.21, up 49.38% from ¥0.81 in 2016[21]. - Total assets at the end of 2017 reached ¥699,792,081.92, a 102.32% increase from ¥345,880,661.84 at the end of 2016[21]. - The net assets attributable to shareholders increased by 34.76% to ¥337,395,410.30 at the end of 2017 from ¥250,367,960.40 at the end of 2016[21]. - The company reported a quarterly revenue of ¥253,681,644.30 in Q4 2017, showing consistent growth throughout the year[23]. - The company received government subsidies amounting to ¥6,853,000.00 in 2017, compared to ¥2,813,953.61 in 2016[27]. - The weighted average return on net assets for 2017 was 33.11%, slightly down from 33.43% in 2016[21]. Market Trends - The digital reading market is experiencing rapid growth, with increasing demand for diverse reading services, necessitating continuous innovation and product development[4]. - The company will continue to monitor industry trends and user demands to maintain its competitive edge in the digital reading market[4]. - In 2017, the digital reading market in China reached a scale of 15.2 billion yuan, growing by 26.7% year-on-year, with a user base of 378 million, an increase of 13.37% from the previous year[30]. - The knowledge payment industry in China was valued at approximately ¥4.91 billion in 2017, with expectations to grow to ¥23.5 billion by 2020, indicating a significant market potential[99]. Product Development and Innovation - The company aims to enhance its market competitiveness by leveraging its experienced marketing team and implementing dynamic product testing and adjustments[6]. - The company recognizes the importance of attracting and retaining talent to support product development and innovation, implementing better compensation and management practices[8]. - The company is actively developing new products and services, integrating text and audio content through various distribution channels, including telecom operators[39]. - The company plans to expand its digital reading copyright resources and improve mobile reading platform functionalities to enhance user experience and market presence[102]. - The company will focus on the collaborative development of quality literary IP, gradually adapting selected IP into various formats such as audio, comics, and games[110]. Marketing and Brand Strategy - The primary cost driver for the company is marketing expenses, which are expected to rise as new products are developed and promoted[9]. - The company emphasizes the need for a robust internal talent development mechanism to mitigate risks associated with talent shortages and turnover[8]. - The company is committed to enhancing its brand strategy to increase product market awareness and influence[9]. - The company has developed a new media marketing model, leveraging over 40 million followers on WeChat to enhance user engagement[50]. - The company will accelerate its marketing and promotion capabilities by expanding its presence in new media platforms and collaborating with major telecom operators to enhance distribution channels[109]. Financial Management and Dividend Policy - The company plans to distribute a cash dividend of 2.50 RMB per 10 shares and a capital reserve increase of 5 shares per 10 shares[9]. - The cash dividend policy stipulates that the company will distribute no less than 20% of the annual distributable profit as cash dividends, reflecting a commitment to investor returns[120]. - For the fiscal year 2017, the company reported a net profit attributable to shareholders of 97,027,335.87 CNY, with a proposed cash dividend of 20,000,000 CNY, representing 20.61% of the net profit[134]. - The company maintains a policy of prioritizing cash dividends when conditions are met, ensuring that the distribution does not exceed the cumulative distributable profits[127]. - The company will review its shareholder return plan at least every three years to adapt to changes in profitability and cash flow[127]. Acquisitions and Investments - The company acquired a 51% stake in Zhengzhou Mairuide Network Technology Co., Ltd. for ¥68.85 million, which is projected to enhance its digital content offerings[93]. - The company completed the acquisition of four companies in 2017, including Mairuide, with total investments of 78.85 million yuan[154]. - The company’s acquisition of Zhengzhou Mairuide and Hangzhou Youshu resulted in an increase in goodwill by approximately 59.27 million yuan[38]. - The company has established several new subsidiaries, including Hangzhou Pizhi Cloud Technology Co., Ltd., which is expected to positively impact net profit by ¥5.15 million in 2017[93]. Risk Management - The company faces risks from intensified market competition as more internet service providers enter the digital reading sector, potentially impacting user retention and acquisition[6]. - The company recognizes the risks of continuous product development and market competition, and will enhance its market sensitivity and innovation capabilities to mitigate these risks[113][114]. - The company faces risks related to talent acquisition and employee turnover, emphasizing the importance of innovative talent in product development and business operations[115]. Shareholder Commitments and Governance - The company has committed to ensuring that the prospectus for the public offering does not contain false records, misleading statements, or significant omissions[145]. - The company has promised to compensate investors for any losses incurred due to misleading information in the prospectus, with a focus on protecting the interests of small and medium investors[146]. - The company will publicly apologize and disclose reasons for any failure to fulfill commitments regarding stock price stabilization[145]. - The company has established a framework for managing share transfers post-IPO, limiting annual transfers to 25% of total shares held by directors and senior management[138].

Financial Performance - Operating revenue for the period reached ¥237,062,757.80, a 74.03% increase year-over-year, with year-to-date revenue at ¥656,268,806.89, up 122.28%[7] - Net profit attributable to shareholders was ¥11,063,660.59, a 4.47% increase from the same period last year, with year-to-date net profit at ¥61,388,231.21, up 72.68%[7] - The company's operating revenue reached ¥656,268,806.89, a 122% increase compared to ¥295,238,244.16 in the previous period[16] - Net profit for the period was ¥63,099,522.49, reflecting a 78% increase from ¥35,484,508.10 in the prior period[17] - Total operating revenue for the third quarter reached CNY 656,268,806.89, a significant increase from CNY 295,238,244.16 in the same period last year, representing a growth of approximately 122.2%[42] - Net profit for the third quarter was CNY 12,746,491.29, compared to CNY 10,559,514.97 in the previous year, marking an increase of about 20.7%[37] - The total profit for the quarter was CNY 83,336,655.91, compared to CNY 45,339,588.06 in the previous year, marking an increase of approximately 83.7%[43] Assets and Liabilities - Total assets increased to ¥615,154,464.39, representing a 77.85% increase compared to the previous year[7] - Current assets rose to CNY 448,474,717.26 from CNY 308,910,101.95, a growth of 45.2%[28] - Total liabilities increased significantly to CNY 311,937,725.38 from CNY 95,656,642.90, marking a rise of 226.5%[29] - The company reported a significant increase in other current assets, rising by 37,721% to ¥70,086,660.92 due to investments in financial products[15] - Short-term borrowings increased by 1,300% to ¥140,000,000.00, primarily due to a new bank loan[15] - The company’s short-term borrowings surged to CNY 140,000,000.00 from CNY 10,000,000.00, an increase of 1,300%[29] Cash Flow - The net cash flow from operating activities for the year-to-date period was ¥110,696,950.20, reflecting a significant increase of 236.98%[7] - The company’s cash flow from operating activities increased by 147% to ¥698,324,690.57, attributed to improved sales performance[18] - The net cash flow from operating activities was CNY 110,696,950.20, significantly higher than CNY 32,850,189.47 in the same quarter last year[50] - Cash inflow from sales of goods and services was CNY 89,935,872.00, up from CNY 82,651,506.86 in the previous year, reflecting a growth of 8.5%[52] - Total cash inflow from financing activities reached CNY 297,550,000.00, significantly up from CNY 11,300,000.00 in the previous period[53] - Net cash flow from financing activities was CNY 190,891,286.72, a turnaround from a negative CNY 20,373,860.45 in the previous year[53] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 7,837[11] - The largest shareholder, Guo Qing, holds 26.51% of the shares, amounting to 21,204,000 shares, with 3,000,000 shares pledged[11] - The company did not engage in any repurchase transactions among the top ten shareholders during the reporting period[12] Investments and Acquisitions - The company invested ¥136,156,753.74 in acquisitions and financial products during the period[18] - The company acquired 51% equity in Zhengzhou Mairuide Network Technology Co., Ltd. for ¥68,850,000[20] - The company signed a strategic cooperation agreement with Shenzhen Qianhai Zhixing Capital Management Co., Ltd. on August 11, 2017[19] Earnings Per Share - Basic earnings per share for the period were ¥0.14, a 7.69% increase, with diluted earnings per share also at ¥0.14[7] - Basic earnings per share for the third quarter were CNY 0.14, compared to CNY 0.13 in the same period last year, showing an increase of about 7.7%[37] - Basic and diluted earnings per share for the quarter were both CNY 0.77, compared to CNY 0.60 in the previous year[44] Operating Costs - Total operating costs increased to CNY 221,906,103.26 from CNY 122,052,598.82, an increase of 81.8%[35] - The company's total operating costs for the third quarter were CNY 579,338,177.89, compared to CNY 252,280,685.10 in the previous year, reflecting an increase of about 129.0%[42] Other Financial Metrics - The weighted average return on equity was 4.50%, a decrease of 2.83% compared to the previous year[7] - The company recorded an asset impairment loss of CNY 1,100,299.71 for the third quarter, compared to CNY 613,045.76 in the previous year, which is an increase of about 79.7%[36] - The financial expenses for the third quarter amounted to CNY 1,397,280.49, compared to CNY 371,324.37 in the previous year, indicating a rise of about 276.5%[36] - The management expenses for the third quarter were CNY 19,857,726.60, significantly higher than CNY 9,377,719.84 in the same period last year, representing an increase of approximately 111.8%[36]

User Demand and Market Competition - The company reported a significant increase in user demand for digital reading services, necessitating continuous innovation to maintain competitiveness [4]. - The digital reading market is experiencing intensified competition, with various players entering the field, which may challenge the company's ability to retain and attract users [5]. - The company acknowledges the risk of intensified market competition in the mobile reading industry, which may affect user retention and acquisition [80]. Financial Performance - Total revenue for the reporting period reached ¥419,206,049.09, representing a 163.62% increase compared to ¥159,016,623.11 in the same period last year [22]. - Net profit attributable to shareholders was ¥50,324,570.62, up 101.61% from ¥24,961,181.83 year-on-year [22]. - Net cash flow from operating activities surged by 839.34% to ¥71,871,949.79, compared to ¥7,651,360.81 in the previous year [22]. - Basic earnings per share increased by 51.81% to ¥1.26, compared to ¥0.83 in the same period last year [22]. - Total assets at the end of the reporting period were ¥410,281,734.86, an 18.62% increase from ¥345,880,661.84 at the end of the previous year [22]. Business Strategy and Innovation - The company plans to enhance its market sensitivity and product innovation capabilities by leveraging strong data processing capabilities and implementing effective talent incentive mechanisms [4]. - The company is focusing on mobile reading as a core business, developing related products in film, animation, and gaming [30]. - The company aims to enhance its market sensitivity and product innovation capabilities through effective talent incentive mechanisms and data processing capabilities [79]. - The company emphasizes the importance of continuous product development and innovation to maintain profitability and market competitiveness in the rapidly evolving digital reading industry [79]. Marketing and Cost Management - The company's marketing costs are expected to rise as it expands its business scale and develops new products, which could impact profitability if not managed effectively [8]. - The main cost component during the reporting period is market promotion expenses, which are expected to increase as the company expands its business scale and develops new products [82]. - The company plans to enhance cost management and improve the return on investment in marketing to mitigate potential negative impacts on operational performance [83]. Profit Distribution and Shareholder Returns - The company has proposed a profit distribution plan, with no cash dividends or stock bonuses, but a capital reserve increase of 1:1 for shareholders [8]. - The company reported a distributable profit of approximately 80.54 million yuan, with no cash dividends proposed for the reporting period [87]. - The company aims to maintain a cash dividend ratio of no less than the profit achieved in the current year, ensuring continuous and stable profit distribution policies [93]. - The company plans to distribute cash dividends to shareholders of no less than 20% of the distributable profits each year after reserving statutory surplus and discretionary surplus [96]. Investment and Fundraising - The company planned to raise a total of RMB 34,368.77 million but only raised RMB 12,040 million, resulting in a net fundraising amount of RMB 8,845 million, which did not meet expectations [67]. - The company has adjusted its fundraising project allocations, with a total of ¥6,322.84 million invested in various projects during the reporting period [63]. - The company will leverage cloud computing technologies to analyze access data, enhancing market sensitivity and product innovation capabilities [83]. Subsidiaries and Partnerships - The company has established several new subsidiaries during the reporting period, including Hangzhou Cook Information Technology Co., Ltd. and Hangzhou Pingzhi Reading Information Technology Co., Ltd., with no significant impact on overall operations and performance [77]. - The company has signed long-term cooperation agreements with well-known content producers, enhancing its content production capabilities and ensuring a large reserve of legitimate reading content [41]. - The company has signed over 11,000 original works from authors and has introduced nearly 5,500 audio works, totaling over 30,000 hours of audio content [34]. Risk Management and Compliance - The company has not engaged in derivative investments or entrusted loans during the reporting period [73][74]. - The company has not reported any overdue principal or income during the reporting period [76]. - The company has not experienced any major litigation or arbitration matters during the reporting period [105]. Shareholder Structure and Equity - The largest shareholder, Guo Qing, holds 10,602,000 shares, which is 26.51% of the total [126]. - The total number of shareholders at the end of the reporting period is 4,672 [126]. - The company has no foreign shareholding, with all shares held by domestic investors [124]. Financial Reporting and Audit - The audit report for the half-year was issued with a standard unqualified opinion by the auditing firm [140]. - The financial statements were prepared based on the going concern assumption, confirming the company's ability to continue operations for at least 12 months from the reporting date [182]. - The financial report was approved by the board of directors on August 28, 2017, ensuring governance and oversight [178].

Financial Performance - The company's operating revenue for 2016 was CNY 469,017,723.97, representing a 178.84% increase compared to CNY 168,201,886.15 in 2015[22]. - The net profit attributable to shareholders for 2016 was CNY 48,426,015.14, an increase of 87.88% from CNY 25,775,622.58 in 2015[22]. - The net cash flow from operating activities reached CNY 82,640,738.85, showing a significant increase of 507.39% compared to CNY 13,605,862.45 in 2015[22]. - The basic earnings per share for 2016 was CNY 1.61, up 87.21% from CNY 0.86 in 2015[22]. - The total assets at the end of 2016 amounted to CNY 345,880,661.84, a 142.54% increase from CNY 142,606,405.48 at the end of 2015[22]. - The net assets attributable to shareholders increased to CNY 250,367,960.40, reflecting a growth of 120.60% from CNY 113,491,945.26 in 2015[22]. - The company reported quarterly revenues of CNY 173,779,479.81 in Q4 2016, with a total annual revenue growth across all quarters[24]. - The weighted average return on equity for 2016 was 33.43%, an increase of 12.59% from 20.84% in 2015[22]. - The net profit after deducting non-recurring gains and losses for 2016 was CNY 46,037,592.03, up 119.60% from CNY 20,964,124.10 in 2015[22]. - The company’s cash and cash equivalents increased by ¥148 million, a growth of 338% year-on-year, attributed to increased cash flow from operations and funds raised from the IPO[41]. Market Trends and Competition - The digital reading market is experiencing intensified competition, with various players entering the field, potentially impacting user retention and acquisition[8]. - The digital reading service market is rapidly evolving, requiring the company to adapt to diverse user demands and industry trends[6]. - The digital reading industry is in its early stages, but the competitive landscape is becoming increasingly complex with blurred lines between industry participants[7]. - The digital reading market size reached ¥12 billion in 2016, growing by 25% compared to the previous year, with an expected growth rate of 20% in 2017[31]. - The number of digital reading users in China surpassed 300 million in 2016, reflecting a growth rate of 12.3%[32]. - The penetration rate of digital reading methods rose to 68.2% in 2016, up from 64.0% in 2015, indicating a growing trend in digital content consumption[91]. Content Development and Innovation - The company emphasizes the importance of attracting and retaining talent to support product development and innovation amidst industry competition[9]. - The company is focused on enhancing cost management to improve the return on investment in marketing efforts[10]. - The company has developed a strong technical foundation, utilizing cloud computing for data processing and digital audio copyright tracking technology[40]. - The company aims to accelerate the development of its IP library, with a focus on adapting high-quality literary IP into audio, comics, film, and games[96]. - The company plans to enhance its content development capabilities, focusing on the rapid signing of quality works and strengthening its editorial team[95]. - The company signed 2,000 new authors, enhancing its original content offerings significantly[37]. Profit Distribution and Dividends - The company plans to distribute a cash dividend of 2.50 RMB per 10 shares to all shareholders, based on a total of 40,000,000 shares[10]. - The company maintains a profit distribution policy that ensures at least 20% of its distributable profits are allocated for cash dividends, reflecting its commitment to investor returns[106]. - The cash dividend for 2016 was set at 2.50 CNY per 10 shares, with a total distribution based on a share capital of 40,000,000 shares[115]. - The company distributed a total cash dividend of 10,000,000 CNY, which accounted for 20.65% of the net profit attributable to ordinary shareholders[117]. - The company will prioritize cash dividends in its profit distribution, especially during its growth phase, while considering its operational funding needs[107]. Corporate Governance - The company has a comprehensive governance structure in place, ensuring the accuracy and completeness of its financial reports[4]. - The company has established a standardized corporate governance structure, with no violations of laws or regulations reported as of the end of the reporting period[194]. - The actual status of corporate governance does not significantly differ from the regulatory documents issued by the China Securities Regulatory Commission[195]. - The company maintains independence from its controlling shareholder in terms of business, personnel, assets, institutions, and finance, ensuring autonomous operational capabilities[196]. - Independent directors are involved in the decision-making process for profit distribution, ensuring that minority shareholders' opinions are considered[112]. Future Outlook and Strategic Initiatives - The company plans to invest ¥13,601.15 million in upgrading its mobile reading platform and ¥5,266.5 million in the construction of a research and development center[83]. - The company is exploring potential acquisitions to enhance its technology portfolio, with a budget of 300 million RMB allocated for this purpose[178]. - The company plans to enhance its marketing strategy, increasing the budget by 20% to boost brand awareness[178]. - Overall, the management remains optimistic about future growth, citing strong market demand and a robust product pipeline[178]. - The company is focused on maintaining transparency and accountability to protect the interests of small and medium investors[129].

Financial Performance - Total revenue for Q1 2017 reached ¥208,088,114.69, an increase of 234.17% compared to ¥62,270,936.70 in the same period last year[8] - Net profit attributable to shareholders was ¥21,878,343.19, up 138.91% from ¥9,157,620.22 year-on-year[8] - Basic earnings per share rose to ¥0.55, reflecting a growth of 77.42% compared to ¥0.31 in the same period last year[8] - The company achieved total operating revenue of CNY 208,088,114.69, a growth of 234.17% compared to CNY 62,270,936.70 in the same period last year[21] - Net profit totaled CNY 21,821,415.43, representing a 138.70% increase from CNY 9,141,767.20 year-on-year[21] - Operating profit for the quarter was CNY 27,805,620.52, compared to CNY 11,014,188.03 in Q1 2016, reflecting a growth of approximately 152.5%[51] - The company reported a total comprehensive income of CNY 21,821,415.43 for the quarter, compared to CNY 9,141,767.20 in the previous year, an increase of approximately 139.5%[52] Cash Flow - Net cash flow from operating activities improved to ¥23,030,595.67, a significant increase of 284.25% from a negative cash flow of ¥12,580,052.96 in the previous year[8] - Cash received from sales of goods and services was CNY 229,172,166.91, a significant increase of 505.11% compared to CNY 37,872,522.66[22] - Cash paid for purchasing goods and services amounted to CNY 180,839,418.67, reflecting a 385.37% increase from CNY 37,257,937.52[22] - Cash inflow from operating activities totaled CNY 230,341,610.09, significantly higher than CNY 38,714,227.49 in the previous period, marking an increase of 495.5%[57] - The net cash flow from operating activities was CNY 23,030,595.67, a turnaround from a negative CNY 12,580,052.96 in the prior year[59] - The company reported a net decrease in cash and cash equivalents of CNY 24,153,050.03 for the quarter, compared to a decrease of CNY 23,390,819.33 in the prior year[60] Assets and Liabilities - Total assets at the end of the reporting period were ¥357,117,207.57, representing a 3.25% increase from ¥345,880,661.84 at the end of the previous year[8] - The company's total assets as of March 31, 2017, amounted to 357,117,207.57 CNY, an increase from 345,880,661.84 CNY at the beginning of the period[45] - The total liabilities decreased to 85,071,773.21 CNY from 95,656,642.90 CNY, reflecting a decline of about 11%[44] - Total liabilities rose to CNY 52,098,704.55, compared to CNY 39,319,508.18, indicating an increase of about 32.4%[48] Expenses - Operating costs rose to approximately RMB 162.12 million, reflecting a 302.55% increase from RMB 40.27 million, driven by the substantial growth in business performance[19] - Management expenses rose by 100.93% to RMB 12.53 million, attributed to an increase in employee numbers and average salaries[19] - Operating expenses decreased by 42.89% due to the suspension of water conservancy construction fund collection since November 2016[21] - Operating costs for the quarter were CNY 180,974,626.19, up from CNY 51,256,748.67, indicating a rise of about 252.5%[50] Investment and Projects - The company raised a total of RMB 120.40 million from its initial public offering, with a net amount of RMB 88.45 million after deducting issuance costs of RMB 31.95 million[26] - The company adjusted the investment amounts for its projects, with RMB 58.37 million allocated to the mobile reading platform upgrade project and RMB 30.07 million to the R&D center construction project[27] - The mobile reading platform upgrade project is now the primary focus for resource allocation due to insufficient funding for the other two projects[27] - The company has not achieved the expected benefits from the investment projects, leading to adjustments in funding allocations[26] Risks and Challenges - The company faces risks related to product development and innovation, which are crucial for sustaining profit growth in a rapidly evolving digital reading market[11] - Increased competition in the digital reading industry poses a risk to user retention and acquisition, as more players enter the market with diverse offerings[12] - The company must manage rising marketing costs effectively to maintain profitability amid intensifying competition in the digital reading sector[13] Dividend Policy - The company maintains a cash dividend policy that requires at least 20% of the annual distributable profit to be distributed as cash dividends[30] - The company is in a growth phase and aims to distribute a minimum of 20% of its distributable profit as cash dividends, with potential increases if no major capital expenditures are planned[31] - The company proposed a cash dividend of 2.5 CNY per 10 shares, totaling 10 million CNY, based on a total share capital of 40 million shares[36]