Financial Performance - The company's revenue for Q3 2022 was ¥245,312,986.78, representing an 18.50% increase year-over-year[7]. - Net profit attributable to shareholders for Q3 2022 was ¥17,176,083.24, a 2.00% increase compared to the same period last year[7]. - The total operating revenue for the third quarter of 2022 was CNY 569,735,931.43, an increase from CNY 506,013,906.54 in the same period last year, representing a growth of approximately 12.3%[32]. - The net profit for the third quarter of 2022 was CNY 22,848,606.01, compared to CNY 21,623,033.50 in the same quarter of the previous year, reflecting a growth of approximately 5.7%[32]. - The net profit attributable to the parent company shareholders for the current period is ¥22,137,922.43, an increase from ¥20,968,269.01 in the previous period, representing a growth of approximately 5.6%[37]. - The total comprehensive income for the current period is ¥22,848,606.01, compared to ¥21,623,033.50 in the previous period, indicating an increase of about 5.7%[37]. Cash Flow - The cash flow from operating activities for the year-to-date period was ¥16,670,436.12, showing a significant increase of 36.51% year-over-year[7]. - The cash inflow from operating activities for the current period is ¥552,244,412.58, down from ¥608,989,860.67 in the previous period, a decrease of approximately 9.3%[41]. - The cash outflow from operating activities totals ¥712,368,570.59, compared to ¥762,638,214.97 in the previous period, a decrease of about 6.6%[41]. - The net cash flow from operating activities is -¥160,124,158.01, slightly worse than -¥153,648,354.30 in the previous period[41]. - The cash inflow from investing activities is ¥221,965,412.33, significantly higher than ¥23,186,225.74 in the previous period, marking an increase of approximately 855.5%[41]. - The net cash flow from investing activities is ¥6,056,642.60, a recovery from -¥229,317,198.78 in the previous period[41]. - The cash outflow from financing activities is ¥44,119,321.77, compared to ¥37,980,682.85 in the previous period, an increase of about 15.6%[43]. - The ending cash and cash equivalents balance is ¥248,548,084.38, down from ¥289,484,897.53 in the previous period, a decrease of approximately 14.1%[43]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,511,038,313.32, a decrease of 6.48% from the end of the previous year[7]. - The company's total assets decreased to CNY 1,511,038,313.32 from CNY 1,615,781,397.94, a reduction of about 6.4%[25]. - The total liabilities decreased to CNY 644,585,410.25 from CNY 754,404,763.38, indicating a decline of approximately 14.6%[28]. - The company's equity attributable to shareholders increased slightly to CNY 858,281,882.63 from CNY 853,398,227.41, a growth of about 0.3%[28]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 26,639[18]. Expenses - The company's basic earnings per share for the year-to-date period was ¥0.0820, reflecting a 5.53% increase compared to the same period last year[7]. - Financial expenses decreased by 43.47% compared to the same period last year, primarily due to a reduction in bank interest income[13]. - Research and development expenses for the third quarter of 2022 were CNY 136,311,920.97, up from CNY 108,954,338.76 in the previous year, representing an increase of approximately 25.0%[32]. - The company's cash and cash equivalents decreased by 43.54% compared to the end of the previous year, primarily due to a reduction in net cash flow from operating activities[12]. - The company's cash and cash equivalents decreased to CNY 258,125,653.10 as of September 30, 2022, down from CNY 457,165,320.06 at the beginning of the year, a decline of about 43.5%[22]. - Accounts receivable increased to CNY 419,154,468.04 from CNY 360,205,002.81, marking an increase of approximately 16.4%[22]. - The company reported a credit impairment loss of CNY -12,582,425.79, an improvement from CNY -16,150,912.57 in the same period last year[32].

Financial Performance - The company's operating revenue for the first half of 2022 was ¥324,422,944.65, representing an increase of 8.51% compared to ¥298,990,999.06 in the same period last year[28]. - The net profit attributable to shareholders of the listed company was ¥4,961,839.19, up 20.18% from ¥4,128,654.03 in the previous year[28]. - The net profit after deducting non-recurring gains and losses was ¥1,713,309.28, a significant increase of 228.34% compared to a loss of ¥1,334,962.15 in the same period last year[28]. - The basic earnings per share increased to ¥0.0184, reflecting a growth of 20.26% from ¥0.0153 in the previous year[28]. - The company reported a total of ¥324.85 million in non-recurring gains and losses for the period[32]. - The company reported a cumulative investment income of CNY 151.56 million from its financial assets[97]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,508,190,261.63, a decrease of 6.66% from ¥1,615,781,397.94 at the end of the previous year[28]. - The net assets attributable to shareholders of the listed company were ¥841,086,191.50, down 1.44% from ¥853,398,227.41 at the end of the previous year[28]. - The company's cash and cash equivalents decreased by 46.20% to ¥24,180.26 million, reflecting changes in investment strategies[89]. - The total current assets as of June 30, 2022, amounted to ¥1,234,579,129.47, a decrease from ¥1,345,651,837.30 at the beginning of the year, representing a decline of approximately 8.25%[197]. - Current liabilities decreased from ¥1,000,000,000.00 to ¥84,376,187.41, a significant reduction of approximately 91.56%[200]. Cash Flow - The company reported a net cash flow from operating activities of -¥137,890,624.67, a slight improvement of 0.30% compared to -¥138,309,877.10 in the previous year[28]. - The company has seen an increasing trend in accounts receivable, necessitating the provision for bad debts, while the overall risk remains controllable due to the creditworthiness of its clients[113]. Research and Development - Research and development investment increased by 24.44% to ¥86,255,454.44, indicating a strong focus on innovation[80]. - The company has made significant investments in R&D, with ongoing national-level research projects and a total of 11 projects currently under research[71]. - The company has obtained 6 new patents, bringing its total software copyrights to 280, indicating a strong focus on innovation[73]. Market and Business Strategy - The company actively engaged in product innovation and market expansion, focusing on sectors such as government, healthcare, finance, and education[46]. - The company is exploring business models in network identity governance and electronic certificate applications, responding to national policies[50]. - The company is expanding its presence in the V2X vehicle networking industry, participating in national pilot projects for vehicle network identity authentication[51]. - The company aims to improve its market competitiveness in the cybersecurity sector by fostering technological innovation and enhancing its compliance management system[56]. Compliance and Regulations - The company is committed to complying with stricter data security laws, which may impose additional compliance responsibilities[114]. - The company actively participated in formulating over 120 national and industry standards, contributing to cybersecurity efforts[130]. Shareholder Information - The company's total share capital increased from 180 million shares to 270 million shares following a rights issue, with a distribution ratio of 5 shares for every 10 shares held[170]. - As of the end of the reporting period, the total number of ordinary shareholders is 29,309, with the largest shareholder, Beijing State-owned Assets Management Co., holding 26.24% of shares[174]. - The largest shareholder's pledged shares account for 80% of their total holdings, indicating a significant level of leverage[180]. Social Responsibility - The company engaged in social responsibility initiatives, including support for pandemic prevention efforts in Beijing[130].

Financial Performance - The company's revenue for Q1 2022 was ¥141,752,921.17, representing a 29.77% increase compared to ¥109,233,553.33 in the same period last year[4]. - The net profit attributable to shareholders was ¥2,091,295.70, a significant turnaround from a loss of ¥4,292,456.58, marking a 148.72% improvement[4]. - The basic earnings per share increased to ¥0.0116 from a loss of ¥0.0238, reflecting a 148.74% increase[4]. - Net profit for the current period was ¥2,219,425.61, compared to a net loss of ¥4,210,824.06 in the previous period[30]. - Basic earnings per share improved to ¥0.0116 from a loss of ¥0.0238 in the previous period[30]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,499,654,407.25, down 7.19% from ¥1,615,781,397.94 at the end of the previous year[4]. - The total liabilities decreased to CNY 636,058,347.08 from CNY 754,404,763.38, representing a reduction of about 15.7%[23]. - The company's equity attributable to shareholders increased to CNY 855,489,523.11 from CNY 853,398,227.41, showing a slight increase of around 0.25%[25]. - The total current liabilities decreased to CNY 594,172,712.08 from CNY 712,088,789.60, indicating a decline of approximately 16.5%[23]. - The total non-current assets amounted to CNY 264,480,848.84, down from CNY 270,129,560.64, indicating a decrease of approximately 2.1%[19]. Cash Flow - Cash flow from operating activities showed a slight improvement, with a net cash outflow of ¥140,359,909.01, a 5.12% reduction from the previous year's outflow of ¥147,927,287.36[4]. - Cash flow from operating activities showed a net outflow of ¥140,359,909.01, slightly improved from a net outflow of ¥147,927,287.36 in the previous period[33]. - Cash inflow from investment activities was ¥170,515,602.74, compared to ¥170,672,958.90 in the previous period[33]. - Net cash flow from financing activities was -$10,209,751.12, compared to $4,949,625.00 in the previous period[36]. - The net increase in cash and cash equivalents was $16,929,605.79, compared to a decrease of $189,749,656.74 in the previous period[36]. Research and Development - The company reported a 39.94% increase in R&D expenses compared to the same period last year, indicating a focus on innovation[9]. - Research and development expenses rose significantly to ¥44,265,684.85, a 40% increase from ¥31,631,028.75 in the previous period[27]. Financial Position - The company's weighted average return on net assets improved to 0.24% from -0.58% in the previous year[4]. - The company received government subsidies amounting to ¥727,517.46 during the reporting period[5]. - The company’s financial assets decreased to zero due to the maturity of bank wealth management products[9]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 32,310[13]. Other Financial Metrics - Total operating revenue for the current period reached ¥141,752,921.17, an increase of 29.7% compared to ¥109,233,553.33 in the previous period[27]. - Total operating costs increased to ¥147,030,018.31, up 25.7% from ¥116,969,835.79 in the previous period[27]. - The company reported a significant decrease in financial expenses, with a net financial cost of -¥162,859.48 compared to -¥728,477.27 in the previous period[27]. - Tax expenses increased to ¥655,619.83 from ¥164,208.34 in the previous period, reflecting a rise of 299.5%[27]. - The company achieved an investment income of ¥1,600,141.96, up from ¥1,302,835.57 in the previous period, indicating a growth of 22.9%[27]. Inventory and Receivables - Inventory increased to CNY 280,987,780.75 from CNY 260,806,945.10, reflecting a growth of about 7.7%[19]. - Accounts receivable rose to CNY 382,397,955.51, compared to CNY 360,205,002.81 at the beginning of the year, marking an increase of approximately 6.2%[17]. Financing Activities - The company received $5,000,000.00 in cash from borrowings during the financing activities[36]. - Total cash inflow from financing activities amounted to $5,000,000.00[36]. - Cash outflow from financing activities was $10,209,751.12, including $5,111,376.12 related to other financing activities[36]. Audit Status - The first quarter report was not audited[37].

Financial Performance - The company's operating revenue for 2021 was CNY 1,026,272,769.66, representing a 19.62% increase compared to CNY 857,963,126.22 in 2020[32]. - The net profit attributable to shareholders for 2021 was CNY 116,027,936.86, a 12.68% increase from CNY 102,975,019.20 in 2020[32]. - The net profit after deducting non-recurring gains and losses was CNY 103,526,558.57, up 16.65% from CNY 88,747,270.21 in 2020[32]. - The basic earnings per share for 2021 was CNY 0.6446, reflecting a 12.67% increase from CNY 0.5721 in 2020[32]. - The total assets at the end of 2021 amounted to CNY 1,615,781,397.94, an 8.22% increase from CNY 1,493,100,666.51 at the end of 2020[32]. - The net assets attributable to shareholders at the end of 2021 were CNY 853,398,227.41, a 13.00% increase from CNY 755,235,984.81 at the end of 2020[32]. - The net cash flow from operating activities for 2021 was CNY 2,593,471.36, a significant decrease of 96.90% compared to CNY 83,671,963.60 in 2020[32]. - The weighted average return on net assets for 2021 was 14.45%, slightly down from 14.49% in 2020[32]. - The total operating revenue for the fourth quarter reached ¥520,258,863.12, showing significant growth compared to previous quarters[34]. - The net profit attributable to shareholders for the fourth quarter was ¥95,059,667.85, a substantial increase from the previous quarters[36]. - The net cash flow from operating activities in the fourth quarter was ¥156,241,825.66, indicating a strong recovery from negative cash flow in earlier quarters[36]. Revenue Breakdown - The revenue from electronic certification services was approximately 226 million yuan, showing a year-on-year growth of 15.73%[73]. - The revenue from network security products reached about 304 million yuan, with a year-on-year increase of 10.75%[73]. - The network security integration business generated approximately 265 million yuan, reflecting a significant growth of 55.25% year-on-year[74]. - The revenue from network security services was around 230 million yuan, marking a growth of 6.26% compared to the previous year[74]. - The revenue from network security integration services saw a significant increase of 55.25%, reaching ¥265,471,952.49, up from ¥170,993,504.43 in the previous year[83]. - The revenue from network security products was ¥304,346,699.92, with a gross profit margin of 72.45%, reflecting a year-on-year increase of 10.75%[88]. Market and Industry Trends - The cybersecurity industry is experiencing rapid growth, driven by advancements in technologies such as 5G, big data, and artificial intelligence[46]. - The company’s clients span various sectors, including government, healthcare, finance, and education, benefiting from increasing regulatory compliance demands[48]. - The introduction of multiple cybersecurity laws in 2021, such as the Data Security Law and the Personal Information Protection Law, enhances the regulatory environment for the industry[47]. - The company is aligned with national strategies for digital transformation and cybersecurity, as outlined in the "14th Five-Year Plan" for information technology[51]. - In 2021, the Chinese cybersecurity market is projected to reach $9.78 billion, with expectations to grow to $18.79 billion by 2025, reflecting a five-year CAGR of approximately 17.9%[57]. - The regulatory environment is becoming more stringent, with policies like the Data Security Law and Cybersecurity Review Measures enhancing the market's growth potential[58]. - The demand for data security products is expected to grow rapidly, driven by national emphasis on data protection and the introduction of new regulations[58]. Research and Development - The company currently holds 254 software copyrights and has obtained 6 new patents during the reporting period[82]. - The company is involved in 9 ongoing national-level research projects, including key projects related to cybersecurity and industrial internet technologies[79]. - R&D expenses for the year amounted to CNY 184.55 million, an increase of 14.41% from the previous year[100]. - The number of R&D personnel increased to 796 in 2021, a growth of 2.45% compared to 777 in 2020, with R&D personnel accounting for 67.46% of the total workforce[105]. - The company is committed to increasing its R&D investment to develop new products that meet market demands and enhance its cybersecurity and data protection offerings[139]. Corporate Governance - The board of directors consists of 8 members, including 3 independent directors, and held 9 meetings during the reporting period[154]. - The supervisory board comprises 3 members and convened 6 meetings, ensuring compliance with legal and regulatory requirements[155]. - The company maintains complete operational independence from its controlling shareholders in terms of assets, personnel, finance, and business[156]. - The company has not experienced any significant discrepancies in governance practices compared to regulatory requirements[155]. - The company continues to enhance its corporate governance structure in compliance with relevant laws and regulations[158]. Future Outlook - In 2022, the company plans to accelerate product and technology innovation to capture the growing demand for cybersecurity solutions across various industries[134]. - The company aims to enhance its technological capabilities in cybersecurity, focusing on areas such as vehicle networking, big data, artificial intelligence, and blockchain integration[133]. - The company has projected a revenue growth of 20% for the upcoming fiscal year, aiming for a target of 1.44 billion RMB[182]. - Market expansion plans include entering two new international markets by Q3 2022, targeting a 10% increase in overall market share[182]. - The company aims to reduce operational costs by 10% through efficiency improvements and automation initiatives in 2022[182].

Revenue and Profit - The company's revenue for Q3 2021 was CNY 207,022,907.48, representing a 0.30% increase year-over-year, while the year-to-date revenue reached CNY 506,013,906.54, up 24.41% compared to the same period last year [4] - The net profit attributable to shareholders for Q3 2021 was CNY 16,839,614.98, a decrease of 44.21% year-over-year, with a year-to-date net profit of CNY 20,968,269.01, reflecting a 24.22% increase [4] - The basic earnings per share for Q3 2021 was CNY 0.0936, down 44.19% from the same period last year, while the diluted earnings per share also stood at CNY 0.0936 [4] - Total operating revenue for the current period reached ¥506,013,906.54, an increase of 24.4% compared to ¥406,733,379.42 in the previous period [26] - Net profit for the current period was ¥21,623,033.50, representing a 23.5% increase from ¥17,444,895.69 in the previous period [29] - Basic and diluted earnings per share were both ¥0.1165, compared to ¥0.0938 in the previous period, reflecting a 24.5% increase [32] Assets and Liabilities - The company's total assets at the end of Q3 2021 were CNY 1,514,460,871.23, an increase of 1.43% from the end of the previous year [4] - As of September 30, 2021, the total assets of Beijing Digital Certification Co., Ltd. amounted to RMB 1,514,460,871.23, an increase from RMB 1,493,100,666.51 at the end of 2020 [24] - The total liabilities increased to RMB 749,220,194.57 compared to RMB 733,232,323.35 in the previous period [25] - The total assets increased from 1,493,100,666.51 to 1,549,727,535.67, reflecting a growth of 56,626,869.16 [39] - The total liabilities rose from 733,232,323.35 to 789,859,192.51, an increase of 56,626,869.16 [42] Cash Flow - Cash flow from operating activities for the year-to-date period was CNY -153,648,354.30, showing a 6.33% improvement compared to the same period last year [4] - The company reported a total of ¥608,989,860.67 in cash inflows from operating activities, compared to ¥430,979,761.07 in the previous period, marking a 41.4% increase [33] - The net cash flow from investing activities was -229,317,198.78, compared to -176,136,128.71 in the previous period, indicating an increase in cash outflow [36] - Total cash and cash equivalents at the end of the period amounted to 289,484,897.53, down from 309,234,455.41 in the previous period [36] Operating Costs and Expenses - The company's operating costs increased by 34.77% year-over-year, primarily due to the expansion of business scale [10] - Total operating costs amounted to ¥485,947,913.41, up 24.1% from ¥391,345,200.12 in the previous period [26] - Research and development expenses increased to ¥108,954,338.76, up 12.1% from ¥97,159,354.61 in the previous period [26] - Sales expenses rose to ¥92,602,571.70, an increase of 22.2% compared to ¥75,781,346.03 in the previous period [26] - Tax expenses for the current period were ¥2,955,769.33, compared to ¥1,990,674.50 in the previous period, reflecting a 48.5% increase [29] Inventory and Receivables - The company experienced a 64.60% increase in inventory at the end of Q3 2021, mainly due to rising project implementation costs [7] - The accounts receivable rose to RMB 313,878,983.90 from RMB 292,559,766.10, indicating a growth of approximately 7.5% [19] - The inventory increased to RMB 342,186,434.86 from RMB 207,892,767.84, reflecting a growth of about 64.4% [19] Financing Activities - The company reported a 100% increase in short-term borrowings at the end of Q3 2021, primarily due to increased borrowings by its subsidiary [7] - The cash inflow from financing activities was 10,000,000.00, up from 5,000,000.00 in the previous period [36] - The cash outflow from financing activities increased to 37,980,682.85 from 18,338,381.94, indicating higher cash distribution [36] Other Financial Metrics - The company received government subsidies amounting to CNY 6,421,020.77 for the year-to-date period, contributing to the reduction in deferred income by 53.91% [6] - The total equity attributable to the parent company reached RMB 758,338,559.56, slightly up from RMB 755,235,984.81 [25] - The company reported retained earnings of ¥379,625,402.38 [45] - Minority interests were recorded at ¥4,632,358.35 [45] - The third quarter report was not audited [46]

Financial Performance - The company's operating revenue for the first half of 2021 was approximately ¥298.99 million, representing a 49.25% increase compared to ¥200.33 million in the same period last year[36]. - The net profit attributable to shareholders of the listed company was approximately ¥4.13 million, a significant turnaround from a loss of ¥13.31 million in the previous year, marking a 131.03% improvement[36]. - The basic earnings per share increased to ¥0.0229, compared to a loss of ¥0.0739 per share in the same period last year, reflecting a 130.99% increase[36]. - The total assets at the end of the reporting period were approximately ¥1.48 billion, a slight decrease of 0.87% from ¥1.49 billion at the end of the previous year[36]. - The net assets attributable to shareholders of the listed company decreased by 1.82% to approximately ¥741.50 million from ¥755.24 million at the end of the previous year[36]. - The company reported a net cash flow from operating activities of approximately -¥138.31 million, which is a 0.24% improvement compared to -¥138.64 million in the same period last year[36]. - The operating cost increased by 92.73% to ¥136,810,795.14 from ¥70,984,959.72, primarily due to rising labor and procurement costs[79]. - The company reported a net cash flow from operating activities of -¥138,309,877.10, showing a slight improvement of 0.24% compared to -¥138,637,230.08 in the previous year[79]. Revenue Breakdown - Revenue from electronic certification services reached 107.56 million yuan, up 43.68% year-on-year, with digital certificate issuance increasing over 25%[52]. - Revenue from network security products was 56.11 million yuan, reflecting a growth of 29.53%[52]. - Network security integration business revenue surged to 60.41 million yuan, a significant increase of 270.57%[52]. - Revenue from network security services was 74.91 million yuan, marking a year-on-year growth of 13.76%[53]. Market and Industry Insights - The Chinese cybersecurity market is projected to reach $10.22 billion in 2021, with a CAGR of 16.8% from 2020 to 2024, leading global cybersecurity market growth[67]. - By 2024, the market size of China's cybersecurity sector is expected to grow to $17.27 billion, driven by increasing security threats and supportive government policies[69]. - The implementation of the "Cybersecurity Law" and the "Data Security Law" has significantly boosted the development of the cybersecurity industry in China[69]. - The demand for integrated data security solutions is expected to rise rapidly, as the government emphasizes data protection through various regulations[70]. - The overall cybersecurity market in China is expected to benefit from increasing awareness and the rising proportion of IT spending allocated to cybersecurity[67]. Research and Development - The company is actively engaged in technology research, focusing on areas such as cloud encryption technology and digital identity management[73]. - The company plans to enhance its R&D efforts for new products and services to adapt to the evolving technology landscape, particularly in network security solutions[125]. - The company is involved in 7 national-level research projects, focusing on key technologies related to domestic encryption algorithms[55]. - The company has established 78 national, industry, and local standards, and holds 18 patents and 205 software copyrights as of the end of the reporting period[58]. Operational Strategies - The company is focusing on the development of a domestic product adaptation system and enhancing its zero-trust solutions to strengthen its competitive advantage in the market[71]. - The company aims to leverage digital transformation opportunities across various industries to drive rapid growth[74]. - The company actively expanded its market presence in sectors such as government, healthcare, finance, and education, with over 200 new clients in the healthcare sector alone[54]. - The company is facing risks related to high accounts receivable, which are increasing as the business scales, and plans to improve its accounts receivable management[127]. Corporate Governance and Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 30,242, with the largest shareholder, Beijing State-owned Assets Management, holding 26.24% of the shares[188]. - The total number of shares is 180,000,000, with 96.84% being unrestricted shares[184]. - The company held its annual general meeting with a participation rate of 58.12% on April 26, 2021[134]. - The company appointed a new director, Yan Yi, on June 23, 2021, following the resignation of Lei Yiping[135]. Compliance and Regulatory Matters - The company is committed to complying with industry regulations and leveraging government support to ensure sustainable and high-quality growth[66]. - The company has not encountered any issues regarding the use and disclosure of raised funds[111]. - The company is not classified as a key pollutant discharge unit by environmental protection authorities[141]. - No administrative penalties were incurred due to environmental issues during the reporting period[141]. Investment and Fundraising - The company reported a total fundraising amount of CNY 22,666.48 million, with CNY 1,515.16 million invested during the reporting period[100]. - Cumulative investment of raised funds reached CNY 20,890.32 million, with a remaining balance of CNY 2,766.84 million[101]. - The reliable electronic signature technology upgrade project has achieved 90.84% of its investment progress, with CNY 7,084.84 million invested to date[102]. - The trusted digital identity management solution upgrade project has reached 90.70% of its investment progress, with CNY 7,366.37 million invested[102].

Financial Performance - The company's operating revenue for 2020 was ¥857,963,126.22, an increase of 8.07% compared to ¥793,892,436.34 in 2019[21] - The net profit attributable to shareholders of the listed company was ¥102,975,019.20, representing a growth of 4.52% from ¥98,526,028.23 in the previous year[21] - The net profit after deducting non-recurring gains and losses was ¥88,747,270.21, up by 5.21% from ¥84,350,406.82 in 2019[21] - The net cash flow from operating activities was ¥83,671,963.60, an increase of 11.88% compared to ¥74,786,411.04 in 2019[21] - The total assets at the end of 2020 reached ¥1,493,100,666.51, a growth of 13.36% from ¥1,317,113,641.66 at the end of 2019[21] - The net assets attributable to shareholders of the listed company were ¥755,235,984.81, increasing by 11.13% from ¥679,618,297.58 in 2019[21] - The basic earnings per share for 2020 was ¥0.5721, reflecting a 4.51% increase from ¥0.5474 in 2019[21] - The diluted earnings per share also stood at ¥0.5721, consistent with the basic earnings per share[21] - The weighted average return on net assets was 14.49%, a decrease of 0.91% from 15.40% in 2019[21] Revenue Breakdown - Revenue from electronic certification services decreased by 19.26% to approximately 195 million yuan due to the pandemic and changes in issuance methods, despite a 60% increase in customer numbers[53] - Revenue from network security products grew by 29.02% to approximately 275 million yuan, driven by demand in government and healthcare sectors[54] - Network security integration revenue increased by 10.55% to approximately 171 million yuan, reflecting the company's proactive response to market changes[54] - The electronic certification service revenue decreased by 19.26% to ¥195.24 million, down from ¥241.83 million in 2019[69] - Revenue from network security products reached ¥274.81 million, a 29.02% increase compared to ¥213.00 million in the previous year[69] - Revenue from network security services grew by 17.64% to ¥216.92 million, up from ¥184.39 million in 2019[69] Research and Development - The company has invested significantly in R&D, completing 38 national and provincial-level research projects, including 6 national-level projects, enhancing its technological capabilities[45] - The company holds 16 patents and 195 software copyrights, indicating a strong commitment to innovation in the electronic certification field[45] - The company is actively engaged in research and development of emerging technologies, including IoT security solutions and blockchain, to stay ahead in the market[58] - The company will increase its R&D investment to improve technology levels, focusing on reliable electronic signatures and trusted digital identities, with plans to develop a comprehensive product and service offering[152] Market Position and Strategy - The company has established a leading position in the network security market, driven by increasing demand from clients for robust security solutions amid rising cyber threats[39] - The company aims to develop a zero-trust architecture for network security solutions to meet customer demands[67] - The overall market for network security is expected to grow significantly due to increasing digital economy demands and evolving threat landscapes[65] - The company plans to focus on three main business areas: "secure and reliable operation of network infrastructure," "trustworthy online business," and "data security" to enhance its market position in the cybersecurity sector[116] Cash Dividends and Profit Distribution - The company plans to distribute a cash dividend of ¥1 per 10 shares, based on a total of 18 million shares[6] - The company distributed cash dividends of 1.00 yuan per share (including tax), totaling 18 million yuan, representing 100% of the distributable profit for the year[134] - The cash dividend payout ratio for 2020 was 17.48% of the net profit attributable to ordinary shareholders, which was CNY 102.98 million[143] - The total cash dividends distributed over the last three years amounted to CNY 60 million[142] Compliance and Governance - The company is committed to complying with national regulations and industry standards to ensure sustainable and high-quality development[64] - The company is required to comply with the Shenzhen Stock Exchange's disclosure guidelines for companies engaged in software and information technology services[77] - The company has consistently fulfilled its commitments regarding shareholding restrictions and has no violations of such commitments[146] - The company is committed to fulfilling its obligations under the profit distribution policy as per the requirements of the China Securities Regulatory Commission[155] Operational Efficiency - The total operating cost for 2020 was 351,963,000.00 CNY, with a year-on-year increase of 17.59% in direct materials and a 7.03% increase in labor and expenses[83] - The company aims to enhance the efficiency of fund utilization and strengthen investment decision-making processes to improve operational efficiency and profitability[155] - The company will improve its profit distribution system to enhance transparency and protect the legitimate rights and interests of public investors[155] Social Responsibility and Community Engagement - The company actively participated in social welfare activities, including donations to poverty alleviation efforts and community support during the pandemic[200] - The company engaged in investor relations activities to enhance communication and ensure transparency with all investors[200] Future Outlook - In 2021, the company aims to accelerate product, technology, and business innovation to meet the growing demand for cybersecurity solutions across various industries, particularly in digital transformation initiatives[117] - The company intends to expand its business in the healthcare sector by embracing the trend of medical internetization and developing new business lines[120]

Financial Performance - Operating revenue for the reporting period was CNY 118,585,373.66, representing a year-on-year growth of 21.78%[8] - Net profit attributable to shareholders was CNY 14,968,938.98, an increase of 3.98% year-on-year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 13,361,266.92, up by 8.78% compared to the same period last year[8] - Basic earnings per share for the reporting period was CNY 0.1247, reflecting a 4.00% increase year-on-year[8] - Total operating revenue for the current period reached ¥118,585,373.66, compared to ¥97,376,625.21 in the previous period, indicating a growth of approximately 21.8%[34] - Net profit for the current period was ¥14,968,938.98, slightly up from ¥14,395,845.57, representing an increase of approximately 4%[36] - Total operating revenue for the third quarter was CNY 326,175,748.52, an increase of 20.66% compared to CNY 270,477,605.47 in the same period last year[43] - Net profit for the third quarter reached CNY 17,506,965.22, up 22.88% from CNY 14,247,947.72 year-on-year[41] - Operating profit for the third quarter was CNY 21,217,565.98, representing a growth of 22.67% compared to CNY 17,361,452.60 in the previous year[40] - The total profit for the third quarter was CNY 21,217,565.98, reflecting a 22.67% increase from CNY 17,361,452.60 year-on-year[40] Assets and Liabilities - Total assets increased by 4.16% to CNY 970,129,287.16 compared to the end of the previous year[8] - Current assets totaled ¥661,996,021.43, down from ¥704,981,996.59, a decrease of approximately 6.1%[32] - Non-current assets increased to ¥101,382,346.92 from ¥61,329,796.91, reflecting a growth of about 65.3%[32] - Total liabilities decreased to ¥244,818,767.43 from ¥272,052,309.31, a reduction of approximately 10%[32] - Owner's equity rose to ¥518,559,600.92 from ¥494,259,484.19, indicating an increase of about 4.9%[33] Cash Flow - The company reported a net cash flow from operating activities of CNY 19,191,799.44, an increase of 131.03% year-to-date[8] - Cash flow from operating activities generated a net amount of CNY 19,191,799.44, a significant improvement from a net outflow of CNY 61,854,347.15 in the previous year[49] - Total cash inflow from operating activities was CNY 495,564,520.52, compared to CNY 308,971,498.40 in the prior year, indicating a growth of 60.5%[49] - The company reported cash and cash equivalents at the end of the period amounting to CNY 252,427,675.20, down from CNY 289,873,494.65 year-over-year[52] - Investment activities resulted in a net cash outflow of CNY 208,608,685.87, compared to a net outflow of CNY 103,588,972.54 in the same period last year[51] - The total operating cash outflow was CNY 476,372,721.08, compared to CNY 370,825,845.55 in the previous year, reflecting an increase of 28.5%[49] Expenses - Total operating costs increased to ¥105,256,345.87 from ¥84,209,598.54, reflecting a rise of about 25%[34] - R&D expenses rose by 41.99% year-on-year, reflecting the company's increased investment in research and development[17] - Research and development expenses rose to ¥25,201,887.01 from ¥16,524,537.12, marking an increase of about 52.5%[34] - Research and development expenses increased to CNY 63,397,335.10, a rise of 42.00% from CNY 44,647,681.44 in the same quarter last year[43] - Cash paid for purchasing goods and services increased by 42.71% year-on-year, reflecting the expansion of operational scale and increased procurement needs[18] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 11,770[12] - The top two shareholders, both state-owned entities, held 26.24% of the shares each[12] Tax and Other Income - Revenue-related taxes increased by 42.48% year-on-year, driven by higher income during the reporting period[17] - The company reported a tax expense of CNY 3,710,600.76 for the third quarter, which is an increase from CNY 3,113,504.88 in the same period last year[40] - The company reported a significant increase in other income to ¥5,060,214.86 from ¥4,013,618.56, reflecting a growth of about 26%[36] Miscellaneous - The weighted average return on equity was 2.76%, a decrease of 3.83% compared to the previous year[8] - Non-recurring gains and losses totaled CNY 5,600,828.35 for the year-to-date[9] - Cash received from sales of goods and services increased by 65.77% year-on-year, mainly due to a rise in recovered payments[18] - Cash received from investment income surged by 107.53% year-on-year, primarily due to higher returns from bank wealth management products[19] - Cash paid for acquiring fixed assets and other long-term assets increased by 139.50% year-on-year, mainly due to increased equipment purchases during the reporting period[19] - Earnings per share (EPS) for the third quarter was CNY 0.3264, down from CNY 0.3929 in the previous year[45] - Total comprehensive income for the third quarter was CNY 39,164,488.71, compared to CNY 46,016,841.20 in the same period last year, indicating a decrease of 15.06%[45] - Investment income for the third quarter was CNY 658,739.73, slightly up from CNY 613,698.63 year-on-year[40] - The financial statements are signed and stamped by the company's responsible persons, accounting supervisor, and accounting institution head[59] - All company documents publicly disclosed on the designated website of the China Securities Regulatory Commission during the reporting period are available[59] - The original report for Q3 2018 is signed by the company's legal representative[59]

Financial Performance - Total operating revenue for the first half of 2018 was CNY 207,590,374.86, representing a 19.92% increase compared to CNY 173,100,980.26 in the same period last year[17]. - Net profit attributable to shareholders decreased by 26.13% to CNY 24,195,549.73 from CNY 32,753,852.45 year-on-year[17]. - Net profit after deducting non-recurring gains and losses increased by 19.40% to CNY 20,202,393.44 from CNY 16,920,396.57 in the previous year[17]. - Basic earnings per share decreased by 25.93% to CNY 0.20 from CNY 0.27 year-on-year[17]. - The total comprehensive income for the first half of 2018 was CNY 24,195,549.73, down from CNY 31,620,995.63 in the same period of 2017[154]. - The company reported a decrease in capital of 40,000,000.00 yuan due to internal transfers[171]. - The total comprehensive income for the current period is 30,793,151, a significant increase compared to the previous period[175]. Cash Flow and Liquidity - The net cash flow from operating activities was negative at CNY -103,587,997.68, worsening by 53.79% compared to CNY -67,358,084.23 in the same period last year[17]. - Cash and cash equivalents decreased by 56.73% to -¥82,233,816.49, primarily due to increased cash outflows from operating activities and bank wealth management purchases[53]. - The company experienced a net decrease in cash and cash equivalents of -82,233,816.49 CNY, compared to -190,054,881.82 CNY in the previous period[162]. - Total cash inflow from operating activities was 206,039,799.62 CNY, while cash outflow was 309,627,797.30 CNY, resulting in a net cash flow deficit[161]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 902,891,009.08, a decrease of 3.06% from CNY 931,346,063.07 at the end of the previous year[17]. - The company's total liabilities decreased from CNY 385,916,388.06 to CNY 357,265,784.34, a decrease of about 7.5%[145]. - The accounts receivable balance has been increasing due to the company's growth, with a focus on improving management and collection processes to mitigate risks[89]. - Inventory rose to ¥105,345,913.12, up from ¥72,934,934.30, indicating an increase of approximately 44.5%[143]. Revenue Streams - Revenue from electronic certification services grew by 11.91% year-on-year, driven by increased usage of digital certificates and new applications in various sectors[26]. - Revenue from security integration services rose by 27.38% year-on-year, with projects over 2 million increasing by 70.13%[28]. - Revenue from security consulting and operation services increased by 39.64% year-on-year, with a 14% rise in the number of projects confirmed[29]. - The company's main business revenue increased by 19.92% year-on-year during the reporting period[24]. Investments and Subsidiaries - The company established two wholly-owned subsidiaries during the reporting period to enhance management efficiency and risk control[49]. - A new subsidiary, Digital Medical Trust, was established to provide secure medical information solutions, targeting the growing demand in the healthcare sector[45]. - The company established three wholly-owned subsidiaries: Anxin Tianxing, Digital Certification Wuhan, and Digital Yixin[190]. Market Position and Growth - The company operates in a rapidly growing network security market, driven by increasing investment in security measures and new technology applications[30]. - The company has established a leading market position in electronic government and healthcare sectors, with significant growth opportunities in finance and education[24]. - The government has introduced policies that favor the company's services in e-government and healthcare, enhancing business prospects[32]. Research and Development - Research and development investment increased by 26.92% to ¥36,921,817.23 from ¥29,090,891.67 year-on-year[53]. - The company is expanding its research and development capabilities by establishing a new R&D center in Wuhan, focusing on advanced certification technologies[47]. Risk Factors - The company faces risks including project risks related to "Beijing Legal Person One Certificate Pass" and seasonal fluctuations in business revenue[4]. - The company has not reported any changes in the fundraising projects during the reporting period[72]. Corporate Governance - The company has not distributed cash dividends or bonus shares for the half-year period[93]. - The company did not engage in derivative investments during the reporting period, indicating a conservative investment strategy[77]. - The company has not experienced any major litigation or arbitration matters during the reporting period[98].

Financial Performance - Total revenue for Q1 2018 reached ¥85,143,073.21, an increase of 32.08% compared to ¥64,464,660.49 in the same period last year[9] - Net profit attributable to shareholders was ¥6,086,000.62, a significant increase of 410.93% from a loss of ¥1,957,344.91 in the previous year[9] - Basic earnings per share rose to ¥0.0761, up 480.50% from a loss of ¥0.02 per share in the same period last year[9] - The total profit for the period was 7.68 million yuan, compared to a loss of 0.61 million yuan in the same period last year; net profit attributable to shareholders was 6.09 million yuan, up from a loss of 1.96 million yuan[26] - The company's operating revenue for Q1 2018 was CNY 57,364,519.84, an increase from CNY 54,073,759.28 in the same period last year, representing a growth of approximately 4.25%[53] - The net profit for Q1 2018 reached CNY 6,086,000.62, a significant recovery from a net loss of CNY 2,778,077.42 in Q1 2017[50] - The basic and diluted earnings per share for Q1 2018 were both CNY 0.0761, compared to a loss of CNY 0.02 per share in the previous year[51] Cash Flow and Liquidity - The company reported a net cash flow from operating activities of -¥97,969,558.91, compared to -¥54,927,041.94 in the previous year, indicating a worsening cash flow situation[9] - Cash and cash equivalents decreased by 31.93% compared to the beginning of the period, primarily due to the investment of 50 million RMB in bank wealth management products and payment of last year's taxes and bonuses[22] - The net cash flow from operating activities was -97,969,558.91 CNY, compared to -54,927,041.94 CNY in the previous period, indicating a decline of approximately 78.2%[57] - The total cash outflow from operating activities was 175,764,268.52 CNY, compared to 126,388,468.24 CNY in the previous period, reflecting an increase of approximately 39.1%[57] - The cash inflow from sales of goods and services was 38,650,790.67 CNY, compared to 58,549,218.40 CNY in the previous period, indicating a decrease of approximately 34.0%[60] Assets and Liabilities - Total assets decreased by 6.07% to ¥874,820,967.33 from ¥931,346,063.07 at the end of the previous year[9] - Current assets decreased to ¥815,794,686.73 from ¥871,048,877.64 at the beginning of the period, a decline of approximately 6.4%[41] - Total liabilities decreased to ¥323,305,291.70 from ¥385,916,388.06, a reduction of approximately 16.2%[43] - Total equity increased to ¥551,515,675.63 from ¥545,429,675.01, showing a slight growth of about 1.3%[44] - Accounts receivable increased to ¥166,348,706.80 from ¥141,573,415.38, representing a growth of approximately 17.5%[41] Operational Highlights - The company's revenue for the first quarter increased by 32.08% year-on-year, driven by significant growth in security integration (up 71.87%) and security consulting and operation services (up 185.46%) [23] - Security integration revenue grew by 71.87% year-on-year, while security consulting and operation services revenue increased by 185.46%[26] - The company will actively develop high-quality clients in various fields to mitigate seasonal revenue fluctuations[13] - The company has made progress in executing its annual business plan for 2018, achieving satisfactory results in operational management[28] Investment and Future Plans - The company plans to deepen the application of the "Beijing Legal Person One Certificate" project to enhance business stickiness and explore value-added services[11] - The company aims to increase investment in electronic signature services and enhance its cloud signature and certification service system[12] - The company plans to continue its investment projects, including reliable electronic signature technology upgrades and new product development, with a completion deadline extended to December 31, 2019[32] Shareholder Information - The company reported a total of 11,267 common shareholders at the end of the reporting period[15] - The cash dividend policy for the reporting period was executed, with a proposal to distribute 3.00 yuan per 10 shares to shareholders[34] Other Financial Metrics - Total operating costs amounted to ¥79,106,567.75, up from ¥67,471,888.31 in the previous period, reflecting rising expenses[49] - Financial expenses increased by 76.45%, reflecting higher interest income from increased cash balances[23] - Asset impairment losses rose by 186.62%, due to increased bad debt provisions corresponding to the growth in accounts receivable[23] - Cash received from tax refunds decreased by 56.28%, mainly due to a reduction in VAT refunds received[24] - Cash paid for purchasing goods and services increased by 121.61%, driven by the expansion of business and increased project activities[25]