Financial Performance - The company achieved operating revenue of CNY 70,609,836.08, a decrease of 1.24% compared to the same period last year [24]. - The net profit attributable to shareholders was CNY -28,229,184.81, representing a decline of 746.83% year-on-year [24]. - The net cash flow from operating activities was CNY -30,586,820.63, down 483.43% from the previous year [24]. - Basic and diluted earnings per share were both CNY -0.1459, a decrease of 652.65% compared to the same period last year [24]. - Total assets at the end of the reporting period were CNY 913,345,564.24, down 8.24% from the end of the previous year [24]. - The company's operating revenue for the first half of 2022 was ¥70,609,836.08, a decrease of 1.24% compared to the same period last year [79]. - The net loss for the first half of 2022 was CNY -28,229,184.81, compared to a net profit of CNY 4,364,254.83 in the first half of 2021 [190]. - The company reported a significant ongoing litigation with Shandong Yilu Guangdian Technology Co., claiming 1.83 million CNY, with a court ruling pending [136]. Risk Management - The management emphasizes the importance of risk awareness regarding future plans and forecasts, highlighting uncertainties due to market conditions [3]. - The report includes a section on potential risks and countermeasures faced by the company, urging investors to read carefully [3]. - The company is facing risks due to macroeconomic downturns, which have increased uncertainty in its smart security business reliant on government investments [106]. - The company acknowledges high accounts receivable and long collection cycles, primarily from government clients, which may lead to increased risks if economic conditions do not improve [109]. Business Strategy and Focus - The company continues to focus on software and information technology services, providing smart city and digital government solutions [33]. - The company emphasizes long-term goals and aims to improve operational performance despite current market conditions [34]. - The company focuses on three main business segments: "Smart Public Security", "Smart City", and "Cybersecurity", providing comprehensive data services across various scenarios [37]. - The company aims to enhance decision-making accuracy and operational efficiency through its advanced data integration and visualization solutions [48]. Product Development and Innovation - The company has developed a comprehensive toolchain for big data intelligent application services, enhancing its capabilities in various sectors [33]. - The company upgraded and released the intelligent data governance platform V3.0, enhancing automation governance capabilities and data security protection [36]. - The company launched three specialized application products: "Xiling Anti-Drug Big Data Intelligent Analysis Platform - Star Map V1.0", "Intelligent Police Situation Analysis System Software V1.0", and "Smart Police Station Integrated Command Platform" [36]. - The company has developed a knowledge graph-based intelligent data platform that automates data governance processes, significantly improving efficiency and reducing reliance on human expertise [71]. Financial Management and Investments - The company has committed to invest a total of 33,828 million CNY in various projects, with 19,777 million CNY allocated to the "Research and Development Center and Industrial Laboratory Project" as of the report date [95]. - The actual investment progress for the "Research and Development Center and Industrial Laboratory Project" is currently at 0%, with no funds utilized as of the report date [98]. - The company has not achieved the planned investment progress or expected returns for the projects, with specific reasons not applicable as per the report [99]. - The company has a total of 25,760 million in entrusted financial management funds, with an outstanding balance of 15,500 million [101]. Shareholder and Equity Information - The company plans not to distribute cash dividends, issue bonus shares, or increase share capital from reserves [4]. - The total number of restricted shares at the beginning of the period was 90,131,030, with 31,428,030 shares released during the period and 30,000 shares added to the restricted category, resulting in 57,093,000 restricted shares at the end of the period [165]. - He Kaiwen holds 40,410,000 shares, representing 22.28% of total shares, with no shares released during the period [167]. - The company has a total of 18,477 shareholders at the end of the reporting period [168]. Legal and Compliance Matters - The company has not faced any significant legal disputes or arbitration matters during the reporting period [134]. - The company is involved in a contract dispute with Xinjiang Puhui Information Technology Co., with a claimed amount of 2.67 million CNY, and has not formed a provision for this case [135]. - The company has a pending case against Ningbo Dongwang Intelligent System Engineering Co., claiming 1.81 million CNY, with no progress reported as of June 30, 2022 [135]. - The company has not reported any significant penalties or rectifications during the reporting period [137]. Market and Industry Outlook - The overall growth trend in the industry remains positive despite short-term challenges [33]. - The digital economy in China is projected to reach a core industry value added of 10% of GDP by 2025, with software industry revenue expected to hit 14 trillion yuan [63]. - The cybersecurity industry is expected to exceed 250 billion yuan by 2023, with a compound annual growth rate of over 15% [68]. - The global smart city technology investment is projected to reach $189.46 billion in 2023, with China's market size expected to hit $38.92 billion [65].

Group 1: Company Performance and Challenges - The company's performance declined significantly in 2021 due to the impact of the COVID-19 pandemic and reduced investment budgets from government clients, leading to delays in project bidding, acceptance, and payment [1] - The company reported a substantial asset impairment loss, but accounts receivable began to improve in the second half of 2021, with a gross profit contribution from core business increasing by approximately 25% and gross margin rising by about 18% [2] - The company has a total overdue accounts receivable amounting to approximately 272 million, with measures in place to recover these debts [4] Group 2: Business Strategy and Market Position - The company primarily serves government clients, with over 87% of revenue coming from this sector in 2021, and aims to explore opportunities in other sectors such as energy, retail, and emergency services [5] - The company has established a dual-platform capability of "visualization + big data" to enhance its competitive edge in social governance and public safety [6] - The company has maintained a research and development (R&D) investment ratio of 10-15% of revenue, emphasizing the importance of R&D for survival and growth [6] Group 3: Client Relationships and Revenue Sources - The top five clients contributed approximately 40% of total revenue over the past three years, indicating a concentration in client relationships [2] - The company collaborates with major clients such as provincial, municipal, and county-level public security and government information centers, which experience cyclical investment patterns [2] Group 4: Future Outlook and Risk Management - The company does not foresee significant operational risks, as the external environment remains stable and the digital economy is expected to grow during the 14th Five-Year Plan period [2] - The company is focused on improving cash flow stability through various financing channels to support ongoing R&D efforts [4]

Financial Performance - The company's revenue for Q1 2022 was ¥16,914,873.18, a decrease of 39.56% compared to ¥27,985,986.23 in the same period last year[4] - The net profit attributable to shareholders was -¥15,387,305.45, representing a decline of 176.21% from ¥20,191,373.80 in the previous year[4] - The net cash flow from operating activities was -¥32,548,692.76, a decrease of 593.96% compared to ¥6,589,329.96 in Q1 2021[4] - The basic earnings per share were -¥0.0795, down 165.22% from ¥0.1219 in the same period last year[4] - The net profit for the first quarter of 2022 was -15,387,305.45 CNY, compared to a net profit of 20,191,373.80 CNY in the same period last year, indicating a significant decline[22] - The operating profit for the first quarter was -18,183,487.59 CNY, down from 20,994,298.03 CNY year-over-year[22] - The company recorded a total comprehensive income of -15,387,305.45 CNY for the first quarter, compared to 20,191,373.80 CNY in the previous year[22] Assets and Liabilities - Total assets at the end of the reporting period were ¥968,870,648.06, a decrease of 2.66% from ¥995,321,865.38 at the end of the previous year[4] - Total assets decreased to CNY 968,870,648.06 from CNY 995,321,865.38[19] - Total liabilities decreased to CNY 501,356,252.40 from CNY 512,638,871.86[19] Cash Flow and Investments - Cash and cash equivalents at the end of the period were CNY 218,624,078.47, down from CNY 272,793,935.75 at the beginning of the year[16] - Total cash and cash equivalents at the end of the period were 213,154,418.37 CNY, down from 267,324,744.42 CNY at the beginning of the period[26] - The company reported cash inflows from investment activities of 268,884,068.49 CNY, while cash outflows for investment activities totaled 287,072,427.13 CNY, resulting in a net cash outflow of -18,188,358.64 CNY[25] Operational Insights - The decline in revenue was attributed to project delivery delays caused by severe COVID-19 outbreaks in Suzhou and Shanghai at the beginning of 2022[9] - The company received government subsidies amounting to ¥1,781,828.95, primarily related to support funds[7] - The company plans to continue focusing on market expansion and new product development in the upcoming quarters[19] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 21,765[10] Expenses - Total operating costs amounted to CNY 41,366,239.44, slightly down from CNY 43,846,868.68 year-over-year[19] - Research and development expenses increased to CNY 4,773,560.04, up from CNY 2,572,162.07, reflecting a focus on innovation[19] - The company paid 28,053,360.78 CNY in cash to employees during the quarter, compared to 22,107,744.79 CNY in the same period last year[25] Accounts Receivable and Inventory - Accounts receivable decreased slightly to CNY 318,455,408.97 from CNY 322,180,973.39[17] - Inventory increased to CNY 97,560,481.29, up from CNY 85,430,111.05, indicating potential stockpiling[17] Financial Reporting - The company did not conduct any audited financial reporting for the first quarter[27]

Financial Performance - The company reported a total credit impairment loss of RMB 27.65 million for the year 2021, alongside asset impairment losses totaling RMB 15.60 million, leading to a combined impairment provision of RMB 43.25 million[6]. - The company's operating revenue for 2021 was ¥145,338,510.42, a decrease of 46.27% compared to ¥270,490,732.22 in 2020[27]. - The net profit attributable to shareholders was -¥85,458,589.69, an improvement of 37.06% from -¥135,771,182.76 in the previous year[27]. - The net cash flow from operating activities increased by 217.83% to ¥54,330,853.13, compared to -¥46,109,160.10 in 2020[27]. - The total assets at the end of 2021 were ¥995,321,865.38, reflecting a 9.00% increase from ¥913,135,324.67 at the end of 2020[27]. - The net assets attributable to shareholders rose by 71.76% to ¥482,682,993.52, up from ¥281,018,225.58 in 2020[27]. - The basic earnings per share improved by 38.14% to -¥0.511 from -¥0.826 in 2020[27]. - The company reported a quarterly operating revenue of ¥41,738,719.18 in Q4 2021, with a total of ¥145,338,510.42 for the year[30]. - The company received government subsidies amounting to ¥2,116,788.62, which are closely related to its normal business operations[33]. - The company reported a significant increase in cash flow from operations in Q4 2021, reaching ¥54,768,629.24[30]. - The company has shown a continuous improvement in net profit margins, with a reduction in losses year-over-year[27]. Market Conditions and Risks - The impact of the COVID-19 pandemic and market conditions resulted in delayed project bidding, acceptance, and payment from government clients, adversely affecting the revenue and net profit of the smart public security business segment[6]. - The company emphasizes that future plans and forecasts are subject to market condition changes and carry inherent uncertainties, which do not constitute a commitment to investors[7]. - The company maintains that there is no significant risk to its ongoing operations, as the industry does not face overcapacity, continuous decline, or technological substitution issues[6]. - The company has detailed potential risks it may face in the report, particularly in the section discussing future development prospects[7]. - The company faces macroeconomic risks due to ongoing COVID-19 impacts and reliance on government project investments, increasing business uncertainty[142]. - The software and IT services industry is experiencing intensified competition, necessitating continuous innovation and technology updates to maintain competitive advantages[143]. - The company has a high proportion of accounts receivable with long collection cycles, primarily from government clients, which poses cash flow risks[144]. - Seasonal fluctuations in revenue and cash flow are influenced by government budgeting and procurement cycles, leading to uneven financial performance throughout the year[146]. Research and Development - The company invested CNY 20.64 million in R&D, accounting for 14.20% of total revenue for the year[68]. - The company holds a total of 20 authorized patents, including 19 invention patents and 1 utility model patent, along with 199 software copyrights[68]. - The company has made significant progress in knowledge graph technology applications, improving data governance and analysis capabilities, which strengthens its core competitiveness in data intelligence applications[81]. - The company is developing a one-stop solution based on video image perception and big data technology, aiming to enhance product competitiveness and reduce delivery costs[106]. - The company has implemented a comprehensive management process for R&D projects, including feasibility analysis and project evaluation[114]. - The number of R&D personnel increased by 9.35% from 139 in 2020 to 152 in 2021, with a proportion of 37.35% of total employees[112]. - R&D investment amounted to ¥20,639,877.45 in 2021, representing 14.20% of operating revenue, up from 8.40% in 2020[112]. - The company aims to enhance its product stability and adaptability through upgrades to its data access gateway software[110]. Governance and Management - The company’s management has confirmed the accuracy and completeness of the financial report, ensuring accountability for any misrepresentation or omissions[4]. - All board members attended the meeting to review the annual report, indicating a unified approach to governance[5]. - The governance structure of the company complies with relevant laws and regulations, ensuring fair treatment of all shareholders and independent operations from its controlling shareholder[151]. - The board of directors consists of 7 members, including 3 independent directors, complying with legal and regulatory requirements[153]. - The company has established a performance evaluation system linking senior management's performance directly to their compensation[154]. - The company maintains a high level of information disclosure, ensuring that all shareholders have equal access to information[154]. - The company respects and protects the rights of stakeholders, promoting a balance of interests among shareholders, employees, and society[155]. - The company operates independently from its controlling shareholders in terms of business, personnel, assets, organization, and finance[157]. - The company has a clear remuneration policy based on performance, work capability, and market salary levels[170]. - The company has established a stable and scientific profit distribution policy, ensuring clear standards and procedures for cash dividends, which aligns with relevant regulations[187]. Strategic Initiatives - The company has established a new Smart City Division to expand its market presence and leverage its "video + big data" capabilities[83]. - The company aims to expand its big data intelligent application ecosystem, focusing on industries such as energy, transportation, and emergency services to drive future growth[139]. - The company is actively seeking new business growth points while improving operational capabilities and cash flow management to enhance profitability and risk resistance[79]. - The company has engaged in significant market expansion, with projects in cities like Guizhou, Guangdong, and Shanghai, enhancing its operational capabilities[46]. - The company has focused on productization strategies, leveraging its experience in the public security sector to create multiple industry-specific solutions[44]. - The company emphasizes continuous R&D in new technologies to align with the evolving digital economy landscape[39]. Shareholder and Financial Activities - The company plans not to distribute cash dividends, issue bonus shares, or increase share capital from reserves for the year[8]. - The company’s available profit for distribution was reported as 0.00 yuan, indicating no profits were allocated for dividends[189]. - The company approved the repurchase and cancellation of 331,500 restricted stocks due to the departure of incentive targets, with a repurchase price of 6.4260 CNY per share[197]. - The company raised a total of RMB 299,999,997.00 through the issuance of 30,303,030 shares at RMB 9.90 per share, with actual funds received after expenses amounting to RMB 287,776,805.56[130]. - The company has not reported any significant changes in its business, products, or services during the reporting period[102]. - The company has not experienced any changes in the scope of consolidation during the reporting period[102]. - The company has maintained a consistent attendance record for its board members in meetings and shareholder gatherings[174].

Financial Performance - Revenue for Q3 2021 was ¥32,101,816.74, a decrease of 49.24% compared to the same period last year[6] - Net profit attributable to shareholders was -¥24,249,860.95, an increase of 3.51% year-on-year[6] - Total operating revenue for the third quarter of 2021 was CNY 103,599,791.24, a decrease of 21.7% compared to CNY 132,338,399.16 in the same period last year[24] - The net profit for Q3 2021 was -19,885,606.12 CNY, compared to -63,101,302.84 CNY in the same period last year, indicating an improvement of approximately 68.5% year-over-year[25] - Operating profit for Q3 2021 was -23,049,142.50 CNY, an improvement from -73,973,133.44 CNY in Q3 2020, reflecting a significant reduction in losses[25] - The total comprehensive income for Q3 2021 was -9,885,606.12 CNY, compared to -63,101,302.84 CNY in Q3 2020, showing a significant reduction in comprehensive losses[26] Cash Flow and Assets - Cash flow from operating activities was -¥437,776.11, a significant decrease of 99.39% year-to-date[6] - Cash and cash equivalents decreased to CNY 44,309,814.78 from CNY 87,327,357.77 at the end of 2020, representing a decline of 49.3%[20] - Cash flow from operating activities showed a net outflow of -437,776.11 CNY, an improvement from -71,447,829.57 CNY in the same quarter last year[30] - Investment activities generated a net cash inflow of 1,529,619.03 CNY, contrasting with a net outflow of -9,015,778.96 CNY in Q3 2020, indicating a positive shift in investment cash flow[30] - Total assets at the end of the reporting period were ¥791,628,558.87, down 13.31% from the previous year[6] - Total assets decreased to CNY 791,628,558.87 from CNY 913,135,324.67, a decline of 13.3%[22] Liabilities and Equity - Total liabilities decreased to CNY 521,660,321.16 from CNY 632,117,099.09, a reduction of 17.5%[22] - The company's equity attributable to shareholders decreased to CNY 269,968,237.71 from CNY 281,018,225.58, a decrease of 4.0%[22] - The company’s short-term borrowings decreased by 33.14% to ¥70,305,400, primarily due to loan repayments[11] Inventory and Receivables - Inventory increased by 52.02% to ¥111,559,800, attributed to increased project procurement[11] - Accounts receivable decreased to CNY 397,518,962.87 from CNY 553,682,332.95, a reduction of 28.2%[20] - Inventory increased to CNY 111,559,778.45 from CNY 73,383,025.49, an increase of 51.9%[20] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 22,708[15] - The company reported a total of 60,596,000 restricted shares, with 2,426,000 released during the period[18] - The company plans to gradually release 25% of the restricted shares held by executives each year[18] Research and Development - Research and development expenses increased to 9,979,388.10 CNY in Q3 2021 from 8,457,822.07 CNY in Q3 2020, representing a growth of about 18%[25] Other Comprehensive Income - The company recorded a total of 10,000,000.00 CNY in other comprehensive income, attributed to changes in fair value of equity investments[26] Audit and Investor Confidence - The company has not undergone an audit for the third quarter report, which may affect investor confidence[35]

Financial Performance - The company reported a significant increase in revenue, achieving a total of 500 million RMB for the first half of 2021, representing a year-on-year growth of 25%[2]. - The company's operating revenue for the reporting period was ¥71,497,974.50, representing a 3.48% increase compared to ¥69,094,019.91 in the same period last year[24]. - The net profit attributable to shareholders was ¥4,364,254.83, a significant turnaround from a loss of ¥37,970,488.28, marking an increase of 111.49%[24]. - The net cash flow from operating activities improved to ¥7,977,060.96, compared to a negative cash flow of ¥64,237,248.66 in the previous year, reflecting a 112.42% increase[24]. - The company reported a significant investment income of CNY 20,435,717.96, compared to a loss of CNY 1,756,996.14 in the same period last year[185]. - The company’s total cash outflow from operating activities was CNY 194,948,847.54, compared to CNY 161,782,417.79 in the same period last year[192]. - The total comprehensive income for the current period amounted to CNY 14,364,254.83, which includes CNY 10,000,000.00 from other comprehensive income[198]. Market Expansion and Product Development - The company has set a revenue guidance for the full year of 1.2 billion RMB, indicating an expected growth of 20%[2]. - New product development includes the launch of the "Merlineye" smart security series, which is expected to enhance market competitiveness[2]. - The company is expanding its market presence by entering three new provinces, aiming to increase its market share by 10% in the next year[2]. - The company aims to expand its market presence in smart city applications, leveraging its dual platform capabilities in video and data integration[31]. - The company has deployed its smart security products in approximately 170 clients across 15 provinces and cities in China[60]. - The company is expanding its focus on smart city solutions, leveraging data technology for urban governance[57]. Research and Development - The company is investing heavily in R&D, with a budget allocation of 100 million RMB for new technology development in 2021[2]. - The company established a national postdoctoral research workstation in March 2021, enhancing its research capabilities[31]. - The company has enhanced its big data team to support the growing demand for data-driven solutions in urban management[57]. - The company emphasizes the importance of R&D investment, focusing on core technology advantages in video applications, data integration, and data visualization to maintain competitiveness[94]. Risk Management and Challenges - The management highlighted risks related to market fluctuations and regulatory changes, which could impact future performance[5]. - The company faces high uncertainty in downstream market demand, which could adversely affect performance if new business and customer expansion do not meet expectations[93]. - The company has a high proportion of accounts receivable with long collection cycles, primarily from government and large enterprise clients, which may lead to increased credit impairment losses if economic conditions do not improve[95]. - Seasonal fluctuations in sales are evident, with a significant portion of revenue typically realized in the fourth quarter, making it unwise for investors to project annual profits based on quarterly results[96]. Shareholder and Equity Information - The company has no plans to distribute cash dividends or issue bonus shares for the current fiscal year, focusing instead on reinvestment[6]. - The company has implemented a restricted stock incentive plan, granting 4.205 million shares, with 3.405 million shares awarded to 107 individuals[103]. - The company reported a total share count of 165,604,000, with 36.59% being limited shares and 63.41% being unrestricted shares[159]. - The largest shareholder, He Kaiwen, holds 32.54% of the shares, totaling 53,880,000 shares, with 13,470,000 shares pledged[163]. Data Management and Technology - The intelligent data governance platform has processed over 200 billion data entries, established 80+ data tables, and created a personnel theme library of over 200 million entries, enhancing data management capabilities[36]. - The company has developed a user authorization system that supports role-based access management, enhancing security and operational efficiency[39]. - The platform supports the integration of heterogeneous data sources, including Hive, MySQL, and Kafka, facilitating comprehensive data management[40]. - The company has developed technologies for data collection and video application gateways, enhancing the capabilities of urban video data sharing[67]. Compliance and Legal Matters - The company reported no significant environmental issues or administrative penalties during the reporting period[121]. - The company has no major litigation or arbitration matters during the reporting period[131]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[126].

Financial Performance - The company reported a total operating revenue of 270.49 million yuan in 2020, a decrease of 3.76% year-on-year[6]. - The total profit for the company was -131.48 million yuan, representing a decline of 2,193.86% compared to the previous year[6]. - The net profit attributable to the parent company was -135.77 million yuan, down 1,614.69% year-on-year, primarily due to the impact of the COVID-19 pandemic[6]. - The company's operating revenue for 2020 was ¥270,490,732.22, a decrease of 3.76% compared to ¥281,056,625.83 in 2019[22]. - The net profit attributable to shareholders in 2020 was -¥135,771,182.76, representing a significant decline of 1,614.69% from a profit of ¥8,963,638.45 in 2019[22]. - The net cash flow from operating activities was -¥46,109,160.10 in 2020, a decrease of 192.35% compared to ¥49,926,825.49 in 2019[22]. - The total assets at the end of 2020 were ¥913,135,324.67, down 2.36% from ¥935,239,401.11 at the end of 2019[22]. - The net assets attributable to shareholders decreased by 32.76% to ¥281,018,225.58 at the end of 2020 from ¥417,946,154.51 at the end of 2019[22]. - The basic earnings per share for 2020 was -¥0.826, a decline of 1,601.82% from ¥0.055 in 2019[22]. - The weighted average return on equity was -38.67% in 2020, down 40.90% from 2.23% in 2019[22]. - The company's main business revenue, excluding rental income, was ¥270,047,494.06 in 2020, compared to ¥280,989,641.69 in 2019[24]. - The company reported a significant uncertainty regarding its ability to continue as a going concern due to negative net profits in recent years[22]. Operational Challenges - The company experienced a significant increase in credit impairment losses due to delayed customer payments, contributing to the overall net loss[5]. - The company reported a net loss attributable to shareholders of approximately ¥72.67 million for 2020, compared to a profit of ¥37.46 million in 2019[88]. - The operating cash flow for the year was negative at approximately -¥54.11 million, indicating challenges in cash generation[88]. - The company's credit impairment losses amounted to -¥79,464,041.99, representing 60.44% of total profit, indicating ongoing challenges in asset quality[104]. - The company anticipates risks related to declining operating performance due to slowed investment growth in Xinjiang and longer accounts receivable collection periods[114]. - The company faces risks from high accounts receivable and long collection cycles, primarily from government and large enterprise clients[115]. Strategic Focus and Development - The company has focused on enhancing its core technological competitiveness in the "video + big data" sector, expanding into new markets and software productization[6]. - The company plans to continue its research and development efforts in software technology and big data, aiming to penetrate traditional security and smart city markets[6]. - The company aims to focus on smart city solutions, leveraging data technology to provide urban governance solutions[59]. - The company has been focusing on smart security and information technology services, which are key areas for future growth[24]. - The company has developed a comprehensive product system for smart cities, including industry solutions, application software, data platforms, and network security services[77]. - The company aims to leverage its extensive experience in video data applications to support the development of smart city initiatives[70]. Market Position and Recognition - The company has been recognized as a "High-tech Enterprise" and has received multiple industry awards, including being listed among the "Top 50 Big Data Companies in China" in 2020[34]. - The company has been recognized as one of the "Top 50 Big Data Enterprises in China" in 2020, highlighting its innovation in smart city solutions[63]. - The company has established a leading big data team to enhance its capabilities in providing integrated big data solutions, receiving high recognition from clients[60]. Product Development and Innovation - The "Easy Link" series of IoT gateway products has integrated over 150,000 devices across various projects, enhancing operational efficiency[35]. - The "Easy Link" video application gateway supports all internet video protocols, addressing common integration challenges faced by clients[36]. - The intelligent data governance platform has successfully integrated over 200 billion data entries, completed 80+ data tables, and established a personnel theme library of over 200 million entries[39]. - The "Magic Eye" video image comprehensive application system utilizes multi-algorithm collaboration technology to meet diverse operational needs across multiple police departments and business scenarios[46]. - The "Tianqi" multi-dimensional big data fusion practical system offers a unified multi-dimensional data search interface, supporting various search methods including text, images, and videos[47]. - The company has developed several product-level industry solutions and data governance tools to enhance data integration and visualization capabilities[34]. Cash Dividend and Shareholder Policies - The company does not plan to distribute cash dividends or issue bonus shares for the year[10]. - The company reported a net profit of -135,771,182.76 CNY for 2020, resulting in a cash dividend ratio of 0.00%[122]. - The company has not proposed any cash dividend distribution plan for the current year despite having positive distributable profits[123]. - The company’s cash dividend total for 2020 was 0.00 CNY, indicating no cash distribution to shareholders[120]. - The company has committed to not distributing cash dividends or increasing share capital from capital reserves for the current year[125]. R&D and Investment - The company invested 2,272.18 million yuan in R&D, accounting for 8.40% of its operating revenue, and holds 173 software copyrights and 15 invention patents[76]. - The company’s R&D investment in 2020 amounted to ¥22,721,798.54, representing 8.40% of total revenue, a decrease from 10.67% in 2019[99]. - Research and development expenses increased by 30% to 50 million yuan, focusing on innovative technologies[141]. Legal and Compliance Issues - The company is involved in a contract dispute with Xinjiang Puhui Information Technology Co., Ltd., with a claim amount of 2.67 million yuan, and has applied for court enforcement after a judgment was made[154]. - The company has a contract dispute with Xinjiang Yike Intelligent Technology Development Co., Ltd., with a claim amount of 2.46 million yuan, and a mediation agreement has been reached for payment over twelve months[154]. - The company has not faced any bankruptcy reorganization issues during the reporting period[152]. - The company has not issued any non-standard audit reports during the reporting period[150]. Future Outlook - The company expects a revenue growth guidance of 10-15% for the next fiscal year, driven by new product launches and market expansion strategies[133]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[133]. - The company aims to enhance shareholder value through consistent dividend payments, with a proposed dividend payout ratio of 30%[141].

Financial Performance - The company's operating revenue for Q1 2021 was ¥27,985,986.23, representing a 139.15% increase compared to ¥11,702,332.95 in the same period last year[8] - The net profit attributable to shareholders was ¥20,191,373.80, a significant recovery from a loss of ¥24,369,958.37 in the previous year[8] - The net profit after deducting non-recurring gains and losses was ¥1,001,597.14, compared to a loss of ¥24,733,374.57 in the same period last year[8] - The net cash flow from operating activities was ¥6,589,329.96, recovering from a negative cash flow of ¥54,114,117.12 in the previous year[8] - The basic earnings per share for the period was ¥0.1219, a turnaround from a loss of ¥0.1493 per share in the same period last year[8] - The weighted average return on equity increased to 6.94%, up by 12.95% from -6.01% in the previous year[8] - Total operating revenue for Q1 2021 was CNY 27,985,986.23, compared to CNY 11,702,332.95 in the previous period, indicating a significant increase[59] - Net profit for Q1 2021 was CNY 20,191,373.80, a turnaround from a net loss of CNY 24,369,958.37 in the previous period[61] - Earnings per share for Q1 2021 were CNY 0.1219, compared to a loss per share of CNY -0.1493 in the previous period[62] - The company reported a total comprehensive income of CNY 7,908,030.31, compared to a total comprehensive loss of CNY 9,341,129.04 in the same period last year[66] Assets and Liabilities - Total assets at the end of the reporting period were ¥805,611,273.71, a decrease of 11.78% from ¥913,135,324.67 at the end of the previous year[8] - The company's cash and cash equivalents at the end of the reporting period amounted to 53.76 million yuan, a decrease of 38.44% compared to the beginning of the period, primarily due to the repayment of bank loans[19] - Current assets decreased to CNY 687,467,097.87 from CNY 800,128,985.42, representing a reduction of about 14.1%[51] - Total liabilities decreased to CNY 506,255,338.37 from CNY 632,117,099.09, a reduction of approximately 20%[53] - The company's equity attributable to shareholders increased to CNY 299,355,935.34 from CNY 281,018,225.58, reflecting an increase of about 6.5%[54] Cash Flow - The net cash flow from operating activities was 6.5893 million yuan, a significant improvement from a negative 54.1141 million yuan in the previous year[20] - Cash flow from operating activities generated a net inflow of CNY 6,589,329.96, compared to a net outflow of CNY 54,114,117.12 in the same period last year[69] - The total cash inflow from operating activities was CNY 148,379,234.57, significantly higher than CNY 26,270,038.08 in the previous year[69] - The company experienced a net decrease in cash and cash equivalents of 9,979,485.76, compared to a decrease of 21,130,205.11 in the previous year, indicating an improvement in cash management[73] Shareholder Information - The company reported a total of 14,080 common shareholders at the end of the reporting period[12] - The company has implemented two stock incentive plans, with the 2018 plan granting 4.205 million shares, of which 3.405 million shares were initially awarded to 107 recipients[30] - The actual number of recipients for the 2018 stock incentive plan was 84, with 3.2515 million shares granted, and the listing date for these shares was November 30, 2018[32] - The company approved the repurchase of 2.426 million shares from the 2018 and 2020 plans, accounting for 1.46% of the total share capital, with repurchase prices of 6.419952 yuan and 4.893952 yuan per share[36] Investment Activities - Investment income for the period was 20.3967 million yuan, compared to a loss of 1.35 million yuan in the same period last year, mainly from the transfer of equity in Hangzhou Xiling[20] - The company transferred 23.30% equity of Hangzhou Xiling Information Technology Co., Ltd. for a total consideration of 17.475 million yuan, with 5 million yuan received by March 31, 2021[39] - The company received CNY 96,000,000.00 from investment recoveries, down from CNY 144,000,000.00 in the previous year[69] Operational Strategy - The company plans to focus on expanding into overseas markets and enhancing product offerings based on customer needs, particularly in the "big data + video" technology sector[23] - The company is in the process of preparing for a non-public offering of 48.58 million shares to raise approximately 478.29 million yuan for various projects[27] Compliance and Regulations - The company conducted a self-inspection regarding insider trading related to the stock incentive plans, confirming no violations occurred prior to the announcement of the plans[31] - The company reported no violations regarding external guarantees during the reporting period[43] - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[44] - The company did not conduct any research, communication, or interview activities during the reporting period[46] - The company has not applied the new leasing standards for the current year, indicating a potential area for future compliance and adjustment[74] - The company did not undergo an audit for the first quarter report, which may affect the reliability of the financial data presented[75]

Financial Performance - Operating revenue for the current period was CNY 63,244,379.25, an increase of 12.34% year-on-year[8] - Net profit attributable to shareholders was a loss of CNY 25,130,814.56, with a year-to-date loss of CNY 63,101,302.84[8] - Basic and diluted earnings per share were both CNY -0.1518, compared to CNY -0.3810 in the same period last year[8] - The company’s total credit impairment losses for the reporting period were CNY 35.63 million, an increase of CNY 17.10 million or 92.35% compared to the same period last year, mainly due to increased provisions for accounts receivable[21] - The net loss for the period was CNY 29,384,565.77, compared to a loss of CNY 17,033,818.00 in the previous period[54] - The total comprehensive loss for the period was CNY 25,130,814.56, compared to a loss of CNY 14,398,112.08 in the same quarter last year[55] - The total profit (loss) for the year-to-date period was CNY -45,870,426.82, compared to CNY -31,903,078.91 in the previous year, reflecting a 43.7% increase in losses[65] Cash Flow and Liquidity - Net cash flow from operating activities was a negative CNY 7,210,580.91, with a year-to-date negative cash flow of CNY 71,447,829.57[8] - The cash balance at the end of the reporting period was CNY 48.84 million, a decrease of CNY 37.37 million or 43.35% compared to the beginning of the period, primarily due to reduced collections impacted by the pandemic[19] - The net cash flow from operating activities was -64,923,680.22 CNY, a significant decrease compared to 18,635,212.48 CNY in the previous period[72] - Total cash and cash equivalents at the end of the period were 39,319,668.11 CNY, down from 77,319,785.61 CNY year-over-year[72] - The total cash inflow from operating activities was CNY 170,326,592.20, down from 249,807,247.16 in the same period last year, a decrease of 31.7%[68] Assets and Liabilities - Total assets decreased by 5.17% to CNY 886,888,048.44 compared to the end of the previous year[8] - The balance of short-term borrowings at the end of the reporting period was CNY 108.14 million, an increase of CNY 38.14 million or 54.49% compared to the beginning of the period, due to increased loans[20] - The total liabilities included short-term borrowings of 70,000,000.00 CNY[76] - Total liabilities amounted to CNY 517,293,246.60, with current liabilities at CNY 513,090,100.25[78] - The total equity attributable to shareholders reached CNY 417,946,154.51, with retained earnings of CNY 191,111,797.75[78] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 16,039[12] - Major shareholder He Kaiwen holds 32.54% of the shares, with 40,410,000 shares pledged[12] Government Support and Subsidies - The company received government subsidies totaling CNY 798,513.57, primarily for social security and pandemic support[9] - The company’s other income for the reporting period was CNY 1.63 million, a decrease of CNY 1.96 million or 54.62% compared to the same period last year, primarily due to reduced government subsidies[21] Research and Development - The balance of development expenditures at the end of the reporting period was CNY 19.99 million, an increase of CNY 7.39 million or 58.71% compared to the beginning of the period, reflecting ongoing investment in product R&D[19] - Research and development expenses amounted to CNY 549,270.29, down from CNY 1,194,118.41 in Q3 2019, reflecting a reduction in investment in new technologies[56] - Research and development expenses for the third quarter were CNY 1,911,830.33, down from CNY 3,550,824.05 in the same period last year, indicating a 46.2% reduction[63] Stock Incentive Plans - The company granted 3.405 million restricted stocks to 107 incentive objects at a price of 6.44 CNY per share on September 25, 2018[29] - The estimated total cost of the restricted stock incentive plan is 21.7851 million CNY, which is not expected to have a significant impact on the company's financial status[29] - The company’s stock incentive plan is expected to enhance employee motivation and align their interests with shareholders[34] - The company is actively pursuing market expansion and strategic adjustments through its stock incentive plans[34]

Financial Performance - The company's operating revenue for the reporting period was ¥69,094,019.91, a decrease of 34.83% compared to ¥106,021,071.26 in the same period last year[27]. - The net profit attributable to shareholders of the listed company was -¥37,970,488.28, worsening from -¥14,099,894.86 in the previous year[27]. - The net cash flow from operating activities was -¥64,237,248.66, significantly lower than -¥1,579,795.77 in the same period last year[27]. - The basic earnings per share were -¥0.2326, compared to -¥0.0864 in the previous year[27]. - The company reported a total non-operating income of CNY 1,038,187.69, primarily driven by government subsidies and other income sources[31]. - The company reported a significant increase in user data, with a growth rate of 25% year-over-year in active users[60]. - The company achieved a revenue of 500 million yuan in the first half of 2020, representing a 15% increase compared to the same period last year[61]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion CNY for the first half of 2020, representing a year-over-year growth of 25%[62]. - The company reported a net loss for the first half of 2020 of CNY 37,970,488.28, compared to a net loss of CNY 17,050,445.80 in the first half of 2019, indicating an increase in losses[193]. - The total profit for the first half of 2020 was -27,557,608.18 CNY, compared to -16,523,870.94 CNY in the same period of 2019, showing a decline in overall financial performance[197]. Impact of COVID-19 - The company reported a significant impact from the COVID-19 pandemic, leading to delays in project implementation and new order signing, which may adversely affect the 2020 annual revenue and profit[7]. - The company is committed to improving operational efficiency and reducing costs in response to market challenges posed by the pandemic[7]. - The ongoing COVID-19 pandemic has significantly impacted the company's operations, leading to slower market expansion and increased bad debt provisions[73]. - The company's operating revenue for the reporting period was ¥69,094,019.91, a decrease of 34.83% compared to the previous year, primarily due to a reduction in verification projects caused by the pandemic[82]. Research and Development - The company plans to maintain a strong focus on R&D, particularly in core technologies related to video applications, data integration, and data visualization, to enhance long-term product competitiveness[9]. - The company has a strong focus on R&D investment to enhance its competitive advantage in products and technology[42]. - The company invested 12.1512 million yuan in R&D, which accounted for 17.59% of total revenue[74]. - The company has accumulated 143 software copyrights and has obtained 10 invention patents, with 48 invention patents currently under application, indicating a strong focus on innovation and technology development[54]. - The company is focusing on the development of new technologies, including the Merlineye vehicle big data analysis system, which is expected to enhance operational efficiency[60]. - The company has launched several new software platforms, including the "Intelligent Community Platform" and "Smart Application Integration Portal" to enhance service offerings[65]. - The company has reported a credit impairment loss of CNY -18,160,421.77, compared to CNY -6,953,720.02 in the first half of 2019, indicating a significant increase in credit losses[193]. Market Expansion and Strategy - The company aims to expand its market presence beyond Xinjiang by leveraging existing projects in Shanghai, Beijing, Guizhou, and Guangzhou to mitigate regional market fluctuations[6]. - The company is positioned to benefit from the growing demand for smart city solutions driven by national governance modernization initiatives[43]. - The company plans to expand its market presence by developing a city governance brain system, which includes a multi-dimensional spatiotemporal data analysis platform[79]. - The company is focusing on expanding its market presence in Southeast Asia, targeting a 15% market share by the end of 2021[62]. - The overall market expansion strategy includes entering two new international markets by the end of 2021, with an estimated investment of 100 million CNY[63]. Competition and Risks - The company acknowledges the risk of intensified competition in the software and IT services sector, driven by rapid technological advancements and changing market dynamics[8]. - The company faces risks related to increased accounts receivable due to long payment cycles from government clients, which could affect cash flow and operational efficiency[10]. - The company has seen a significant increase in customer loyalty due to high switching costs associated with software and IT service providers, particularly among government clients[52]. Intellectual Property and Innovation - The company has a strong emphasis on cloud-based solutions, as evidenced by its patent for real-time video stream storage methods adopted on cloud platforms[68]. - The company aims to leverage its software capabilities to expand into new markets and enhance service offerings[59]. - The company's intellectual property strategy includes both trademarks and software copyrights to protect its innovations[58][59]. - The company has developed several proprietary software products, including the "Xiling Big Data Integration Platform" and "Xiling Resource Management Platform," both valid for five years from December 29, 2017[68]. Shareholder and Equity Information - The total number of ordinary shareholders at the end of the reporting period was 12,783[164]. - The largest shareholder, He Kaiwen, holds 32.54% of the shares, totaling 53,880,000 shares, with 40,410,000 shares subject to lock-up[164]. - The company has implemented a phased release of restricted shares as part of its equity incentive plan[161]. - The company completed the registration and listing of 3,650,000 shares under the 2020 restricted stock incentive plan on June 24, 2020[159].