Financial Performance - The company's operating revenue for 2019 was ¥2,489,346,726.31, representing a 37.13% increase from ¥1,815,359,403.28 in 2018[14]. - The net profit attributable to shareholders for 2019 was ¥1,235,294,618.36, a 45.08% increase compared to ¥851,477,077.83 in 2018[14]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥1,095,244,381.13, up 46.38% from ¥748,233,040.80 in 2018[14]. - The net cash flow from operating activities for 2019 was ¥1,092,506,407.91, reflecting a 59.83% increase from ¥683,545,237.01 in 2018[14]. - The total assets at the end of 2019 were ¥4,827,274,422.22, a 28.73% increase from ¥3,749,986,782.82 at the end of 2018[14]. - The net assets attributable to shareholders at the end of 2019 were ¥4,395,874,606.89, up 25.62% from ¥3,499,418,945.42 at the end of 2018[14]. - The company achieved a net profit of RMB 1,235,294,618.36 for the year, after deducting statutory surplus reserves[81]. - The gross margin improved by 4.2 percentage points to 66.0% due to optimized sales structure, currency appreciation, and cost reduction[37]. Profit Distribution - The company reported a profit distribution plan of 9 RMB per 10 shares (including tax) and a capital reserve increase of 5 shares per 10 shares[5]. - The company distributed cash dividends of RMB 539,452,800, which is 43.67% of the net profit attributable to shareholders for the year 2019, amounting to RMB 1,235,294,618.36[82]. - For every 10 shares, the company distributed a cash dividend of RMB 9.00 and increased the share capital by 5 shares for every 10 shares held, resulting in a total share capital increase to 899,088,000 shares[81]. - The total distributable profit at the end of the year was RMB 2,423,876,262.21, which included the retained earnings from the previous year[81]. - The cash dividend payout ratio for 2018 was 42.21%, with total cash dividends of RMB 359,443,200 distributed[82]. - The company has consistently increased its cash dividend distribution over the past three years, with 2017, 2018, and 2019 payouts of RMB 238,944,000, RMB 359,443,200, and RMB 539,452,800 respectively[82]. - The company’s profit distribution plan aligns with its articles of association and dividend management policies, ensuring compliance with regulations[80]. Market Risks and Competition - The company faces risks from high overseas market dependence, with potential impacts from international trade disputes and regulatory changes affecting sales revenue and profitability[2]. - The company’s export business is primarily settled in USD, making it susceptible to exchange rate fluctuations, which could affect price competitiveness and lead to financial performance volatility[5]. - The company has a strong market position with a stable customer base in international markets, but faces increasing competition and non-tariff barriers from developed countries[2]. - The company faces risks from intensified market competition, particularly from international competitors like Polycom and Cisco, which have advantages in brand and system support[74]. - The company is currently facing challenges due to the COVID-19 pandemic, which has led to reduced customer demand and difficulties in market expansion[76]. Research and Development - The company maintained a research and development investment ratio of 7.7% of sales revenue in 2019, with R&D personnel accounting for nearly 50% of the workforce[37]. - R&D investment increased by 40.5% year-on-year, reflecting the company's commitment to enhancing technology and product competitiveness[37]. - The company has been focusing on developing private deployment systems and public cloud platforms since 2016, enhancing its product offerings in unified communication solutions[19]. - The company launched a full series of Teams phones in 2019, enhancing its strategic partnership with Microsoft in the enterprise communication sector[21]. - The company is embedding AI and big data technologies into video conferencing solutions to enhance functionality and user experience[26]. - The company plans to increase R&D investment, focusing on diversifying voice product forms and enhancing video conferencing product performance and functionality in 2020[73]. Operational Performance - The company’s operational performance is subject to various legal and regulatory requirements across different jurisdictions, which could impose additional costs and affect business activities[4]. - The company has established a resource coordination strategy to support new business development while controlling sales expense increases within a reasonable range[41]. - The management team underwent a restructuring in 2019, with a focus on long-term strategic planning and operational execution[41]. - The company expanded its operational scope by establishing two new subsidiaries in Xiamen in late 2019[48]. Financial Management - The company has a total of 10 major shareholders, with the top five holding over 70% of the shares collectively[148]. - The company has established a strong relationship with financial institutions, ensuring favorable terms for its financial products[120][121]. - The company plans to continue its strategy of investing in low-risk financial products to optimize asset management[116]. - The company has diversified its financial strategies by engaging with multiple banks and securities firms for better returns on idle funds[120][121]. - The company has a commitment to transparency and accountability in its shareholding reduction process[88]. Corporate Governance - The company has maintained a consistent leadership structure with key executives serving since 2012, ensuring stability in management[162]. - The independent directors, including Ye Lirong and Zhang Junli, were replaced in November 2019, indicating a shift in governance[161]. - The company has established a performance evaluation and incentive mechanism for its directors and senior management, promoting transparency in appointments[182]. - The audit committee held 5 meetings to review financial information and internal control systems[190]. - The company has no outstanding bonds that are due or have not been fully paid[197]. Social Responsibility - The company actively fulfills its social responsibilities and maintains compliance with relevant laws and regulations[132]. - The company provided 100,000 in funding support to improve infrastructure and increase employment for impoverished households in the Zhengjia Village of the Dongxiang Autonomous County[134]. - The company purchased poverty alleviation products worth 4,000 from the Dongxiang County, contributing to local economic development[134].

[Important Notice](index=2&type=section&id=Important%20Notice) The company's board of directors, supervisory board, and all senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report - The company's board of directors, supervisory board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report and bear corresponding legal responsibilities[3](index=3&type=chunk) - The company's responsible person Chen Zhisong, accounting supervisor Zeng Hui, and accounting department head Yu Jianbing declare that the financial statements in the quarterly report are true, accurate, and complete[3](index=3&type=chunk) [Company Profile](index=3&type=section&id=Company%20Profile) This section details the company's fundamental information, including key financial performance, shareholder structure, and changes in restricted shares [Key Accounting Data and Financial Indicators](index=3&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) The company achieved strong performance growth in the first three quarters of 2019, with both operating revenue and net profit attributable to shareholders increasing by over 40% Key Financial Indicators for the First Three Quarters of 2019 | Indicator | Year-to-Date | YoY Change | | :--- | :--- | :--- | | Operating Revenue (CNY) | 1,855,829,750.56 | 40.69% | | Net Profit Attributable to Shareholders of Listed Company (CNY) | 982,855,632.37 | 48.11% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-recurring Items (CNY) | 890,967,407.91 | 54.85% | | Net Cash Flow from Operating Activities (CNY) | 767,865,978.21 | 62.51% | | Basic Earnings Per Share (CNY/share) | 1.6406 | 47.68% | | Weighted Average Return on Net Assets | 25.13% | Increased by 3.81 percentage points | Non-recurring Gains and Losses for the First Three Quarters of 2019 | Item | Amount (CNY) | Explanation | | :--- | :--- | :--- | | Gains/Losses from Entrusting Others to Invest or Manage Assets | 96,544,628.15 | Wealth management products | | Government Subsidies Included in Current Profit/Loss | 7,336,902.36 | - | | **Total** | **91,888,224.46** | **-** | [Shareholder Information](index=4&type=section&id=Shareholder%20Information) As of the end of the reporting period, the company had 18,882 common shareholders, with a highly concentrated equity structure and significant institutional investor presence - The total number of common shareholders at the end of the reporting period was **18,882** households[7](index=7&type=chunk) - The top ten shareholders collectively held **77.78%** of the shares, indicating highly concentrated equity, with Wu Zhongyi, Chen Zhisong, Lu Rongfu, and Zhou Jiwei acting as concerted parties[7](index=7&type=chunk)[8](index=8&type=chunk) - National Social Security Fund portfolios 406, 109, and 601 were all among the top ten unrestricted shareholders, demonstrating institutional investor preference for the company[8](index=8&type=chunk) [Changes in Restricted Shares](index=5&type=section&id=Changes%20in%20Restricted%20Shares) During the reporting period, the number of restricted shares increased due to the capitalization of capital reserves, with most IPO-restricted shares expected to be lifted in March 2020 - Due to the capitalization of capital reserves, the initial **225 million** restricted shares increased to **450 million** shares at the end of the period[10](index=10&type=chunk) - Restricted shares held by major founding shareholders and senior executives are all IPO-restricted, with the proposed lifting date being **March 17, 2020**[10](index=10&type=chunk) [Significant Events](index=7&type=section&id=Significant%20Events) This section covers major financial data changes, the execution of cash dividend policy, and other important disclosures during the reporting period [Significant Changes in Financial Data and Reasons](index=7&type=section&id=Significant%20Changes%20in%20Financial%20Data%20and%20Reasons) Multiple financial data points changed significantly during the reporting period, with asset-side changes driven by new financial instrument standards and business growth, and profit statement changes by sustained business growth Major Balance Sheet Item Changes and Reasons | Item | YoY Change | Reason | | :--- | :--- | :--- | | Financial Assets Held for Trading | Not applicable | Primarily due to adjustments from changes in accounting standards | | Accounts Receivable | 47.26% | Primarily due to the company's business revenue growth | | Long-term Equity Investment | 4678.42% | Primarily due to the company's subscription to fund company registered capital | | Share Capital | 99.99% | Primarily due to capitalization of capital reserves | Major Income Statement Item Changes and Reasons | Item | YoY Change | Reason | | :--- | :--- | :--- | | Operating Revenue | 40.69% | Primarily due to sustained and stable growth in handset and VCS businesses | | Selling Expenses | 62.14% | Primarily due to the expansion of the company's business scale | | Research and Development Expenses | 25.74% | Primarily due to the company's increased R&D investment | Major Cash Flow Statement Item Changes and Reasons | Item | YoY Change | Reason | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 62.51% | Primarily due to increased cash receipts from sales and relatively lower growth in other operating payments | | Net Cash Flow from Investing Activities | 378.91% | Primarily due to the difference between wealth management investments and recovery amounts | | Net Cash Flow from Financing Activities | 38.94% | Primarily due to increased cash dividends distributed by the company | [Execution of Cash Dividend Policy](index=9&type=section&id=Execution%20of%20Cash%20Dividend%20Policy) The company executed its 2018 profit distribution plan in July 2019, which included a substantial cash dividend and capitalization of capital reserves, in compliance with regulations - The company's 2018 dividend policy was to distribute a cash dividend of **CNY 12.00 (tax inclusive)** per 10 shares and capitalize capital reserves to issue **10 new shares** for every 10 shares to all shareholders; this policy was fully implemented in **July 2019**[17](index=17&type=chunk) [Other Significant Events](index=8&type=section&id=Other%20Significant%20Events) During the reporting period, the company had no significant event progress, overdue unfulfilled commitments, illegal external guarantees, or non-operating fund occupation by controlling shareholders - The company had no significant event progress, share repurchases, overdue unfulfilled commitments, illegal external guarantees, or controlling shareholder fund occupation requiring disclosure during the reporting period[15](index=15&type=chunk)[16](index=16&type=chunk)[18](index=18&type=chunk) [Financial Statements](index=10&type=section&id=Financial%20Statements) This section presents the company's comprehensive financial statements for the third quarter of 2019, reflecting its financial position, operating results, and cash flows [Financial Statements](index=10&type=section&id=Financial%20Statements) This section provides the company's detailed financial statements for the third quarter of 2019, including consolidated and parent company balance sheets, income statements, and cash flow statements - Includes consolidated and parent company balance sheets as of **September 30, 2019**[19](index=19&type=chunk)[24](index=24&type=chunk) - Includes consolidated and parent company income statements for the **third quarter of 2019** and from the beginning of the year to the end of the reporting period[28](index=28&type=chunk)[32](index=32&type=chunk)[34](index=34&type=chunk)[37](index=37&type=chunk) - Includes consolidated and parent company cash flow statements from the beginning of **2019** to the end of the reporting period[40](index=40&type=chunk)[43](index=43&type=chunk) [Notes on Financial Statement Adjustments](index=29&type=section&id=Notes%20on%20Financial%20Statement%20Adjustments) The company adopted new financial instrument standards from January 1, 2019, retrospectively adjusting relevant financial statement items at the beginning of 2019 - The company adopted new financial instrument standards from **January 1, 2019**, and adjusted relevant financial statement items at the beginning of that year[46](index=46&type=chunk) Major Adjustments to Consolidated Balance Sheet at Beginning of Period | Item | Adjusted Before (2018-12-31) (CNY) | Adjusted After (2019-01-01) (CNY) | Adjustment Amount (CNY) | | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 0 | 2,693,487,819.85 | +2,693,487,819.85 | | Other Current Assets | 2,704,989,383.23 | 11,501,563.38 | -2,693,487,819.85 | | Other Comprehensive Income | 28,541,501.17 | 53,681.32 | -28,487,819.85 | | Undistributed Profits | 1,642,778,077.00 | 1,671,704,438.68 | +28,926,361.68 | [Audit Report](index=35&type=section&id=Audit%20Report) The company's 2019 third-quarter report is unaudited - The company's third-quarter report is **unaudited**[54](index=54&type=chunk)

Financial Performance - In the first half of 2019, the company's performance growth exceeded expectations due to US distributors increasing inventory in anticipation of tariffs from the US-China trade war [3]. - The company achieved total revenue of CNY 1,174,459,510.26, representing a year-on-year increase of 39.74% [13]. - Net profit attributable to shareholders reached CNY 606,750,681.44, up 47.94% compared to the same period last year [13]. - The net profit after deducting non-recurring gains and losses was CNY 546,779,682.96, reflecting a growth of 53.98% [13]. - Operating cash flow net amount was CNY 421,091,225.27, an increase of 29.70% year-on-year [13]. - The company reported a total revenue of 1.5 billion RMB for the first half of 2019, representing a year-on-year increase of 25% [60]. - The company's net profit for the first half of 2019 was not explicitly stated, but the increase in retained earnings was noted at ¥1,920,163,662.76, up from ¥1,644,001,414.92 in the previous year, reflecting a growth of approximately 16.8% [116]. - The total comprehensive income for the period decreased by 2,042.17, resulting in a total of 606,750,681.44 [129]. Growth Expectations - The company expects a potential decline in growth rate in Q3 2019 but anticipates stable growth for the entire year [3]. - The company anticipates a potential slowdown in revenue growth for the third quarter due to external factors, but expects overall annual growth to remain stable [20]. - The company provided a positive outlook for the second half of 2019, expecting revenue growth to continue at a rate of approximately 20% [62]. - New product launches are expected to contribute an additional 500 million CNY in revenue for the second half of 2019 [41]. Research and Development - The company’s R&D investment increased by 21.14% to CNY 61,213,519.41 [21]. - Research and development expenses increased by 10% to 300 million CNY, focusing on enhancing product features and user experience [41]. - Research and development investments have increased by 30% compared to the previous year, aiming to enhance product innovation and technology [62]. Market Position and Competition - The company has a strong market position with a stable customer base in international markets, but competition is intensifying [4]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% market share by the end of 2020 [41]. - The company is focusing on market expansion, targeting new regions in Southeast Asia, with plans to increase market share by 15% in these areas by the end of 2020 [61]. Financial Management and Strategy - The company does not plan to distribute cash dividends or issue bonus shares [5]. - The company has implemented strict cost control measures, resulting in savings in project expenditures [34]. - The company has committed to maintaining a share buyback program, with a total of 100 million RMB earmarked for repurchasing shares over the next year [62]. - The company has established a principle for using undistributed profits primarily for significant investments, acquisitions, and working capital needs [67]. - The company aims to maintain a cash dividend distribution that reflects its operational capabilities and financial health [65]. Risks and Challenges - The company faces risks related to high overseas market exposure, with significant reliance on international sales [4]. - Exchange rate fluctuations pose a risk to the company's export pricing competitiveness, particularly if the RMB appreciates [5]. - The company has increased its investment in overseas market development to mitigate risks associated with high overseas market exposure [57]. - The company has implemented foreign exchange risk management strategies, including centralized management of foreign exchange funds and hedging [57]. Shareholder Relations - The management emphasized the importance of adhering to regulatory compliance and maintaining shareholder trust through transparent communication [60]. - The company has committed to not transferring or entrusting its shares for 36 months post-IPO, ensuring stability in shareholding [59]. - The company emphasizes the importance of communication with shareholders, especially minority shareholders, during the profit distribution proposal process [67]. Asset Management - Total assets increased by 15.98% to CNY 4,349,368,725.47 compared to the end of the previous year [13]. - The company reported a total of 886,440,000 RMB in idle self-owned funds invested in various financial products with varying returns [50]. - The company’s total assets at the end of the current period were CNY 3,060,154,963.18, showcasing strong asset management [139]. Corporate Governance - The company has established a governance structure including a shareholders' meeting, board of directors, and supervisory board, along with various functional departments [144]. - The financial statements for the first half of 2019 were approved by the board on August 14, 2019, and comply with the accounting standards set by the Ministry of Finance [149]. Compliance and Legal Matters - The company has not faced any penalties or rectification issues during the reporting period [77]. - There were no major litigation or arbitration matters during the reporting period [75]. - The company did not engage in any related party transactions during the reporting period, including asset or equity acquisitions or sales [82].

Financial Performance - Total revenue for Q1 2019 reached ¥533,046,777.27, representing a 29.25% increase compared to ¥412,423,021.69 in the same period last year[3] - Net profit attributable to shareholders was ¥260,980,124.24, up 32.92% from ¥196,338,738.58 year-on-year[3] - Net profit excluding non-recurring gains and losses was ¥231,219,626.40, reflecting a 38.99% increase from ¥166,357,156.26 in the previous year[3] - Basic earnings per share rose to ¥0.8738, up 32.92% from ¥0.6574 in the same period last year[3] - The company reported a net profit of ¥256,740,344.94 for Q1 2019, compared to ¥183,094,250.85 in Q1 2018, marking an increase of 40.2%[29] - The total comprehensive income attributable to the parent company for Q1 2019 was approximately ¥260.98 million, compared to ¥196.33 million in the same period last year, reflecting a growth of 32.8%[32] - The company's operating profit for Q1 2019 was approximately ¥289.79 million, an increase of 33.9% from ¥216.10 million in the previous year[32] Cash Flow and Investments - Operating cash flow for the period was ¥170,097,270.72, a 20.01% increase compared to ¥141,737,389.46 in the same quarter last year[3] - The cash flow from operating activities for Q1 2019 was approximately ¥505.40 million, compared to ¥359.54 million in the same period last year, showing a growth of 40.6%[36] - The net cash flow from investing activities was -1.52 billion yuan, reflecting the company's investment activities within its authorized scope[11] - Cash inflow from investment activities reached CNY 2.83 billion, an increase from CNY 2.15 billion, marking a rise of 31.5% year-over-year[40] - Cash outflow from investment activities was CNY 2.98 billion, compared to CNY 2.26 billion in the previous year, indicating an increase of 32.3%[38] - The net cash flow from investment activities was negative CNY 152.06 million, worsening from negative CNY 108.89 million year-over-year[40] Assets and Liabilities - Total assets at the end of the reporting period were ¥3,930,434,173.46, an increase of 4.81% from ¥3,749,986,782.82 at the end of the previous year[3] - The company's total assets as of March 31, 2019, were ¥3,931,495,504.31, compared to ¥3,751,156,439.42 at the end of 2018, indicating a growth of 4.8%[28] - The total liabilities decreased from 250,567,837.40 CNY to 198,088,334.57 CNY, showing a reduction of approximately 21%[23] - The total liabilities decreased to ¥198,088,334.57 from ¥250,567,837.40, a reduction of 21%[27] - The company reported a total of 3,782,218,258.94 CNY in current assets as of March 31, 2019, compared to 3,600,109,209.01 CNY at the end of December 2018, reflecting an increase of approximately 5.06%[21] Shareholder Information - The top ten shareholders held a combined 83.09% of the company's shares, with the largest shareholder owning 21.37%[6] - Net assets attributable to shareholders increased to ¥3,732,345,838.89, a 6.66% rise from ¥3,499,418,945.42 at the end of the previous year[3] - The total equity attributable to shareholders of the parent company increased to ¥3,733,407,169.74 from ¥3,500,588,602.02, representing a growth of 6.6%[28] Expenses and Taxation - Total operating costs amounted to ¥276,306,432.33, up from ¥229,328,770.84, reflecting a year-over-year increase of 20.5%[29] - Research and development expenses rose by 30.4% to 309.61 million yuan, indicating increased investment in R&D[11] - The company incurred a tax expense of approximately ¥28.83 million in Q1 2019, compared to ¥20.07 million in the same period last year, reflecting a growth of 43.6%[32] - The company reported a significant increase of 142.1% in taxes payable, amounting to 357.38 million yuan, due to higher income tax provisions[10] Future Plans and Projects - The company plans to utilize the raised funds for projects including the "Cloud Communication Operation Platform Construction Project" with a total investment of 43,908,000 CNY[18] - The company is currently developing projects such as the upgrade and industrialization of unified communication terminals and the R&D of high-definition video conferencing systems[16] - The effective implementation of fundraising investment projects is expected to enhance the company's R&D capabilities and profitability[16] - The company plans to continue investing in new product development and market expansion strategies to drive future growth[29] Compliance and Governance - The company has no reported violations regarding external guarantees during the reporting period[20] - There are no non-operating fund occupations by controlling shareholders or related parties reported during the period[20] - The company has not yet audited the first quarter report, indicating it is unaudited[47] - The company implemented new financial accounting standards starting January 1, 2019, affecting the reporting of financial instruments[46]

Financial Performance - Net profit attributable to shareholders rose by 46.97% to CNY 253,465,360.08 for the reporting period[8] - Operating revenue for the period reached CNY 478,650,403.47, reflecting a growth of 26.21% year-on-year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 44.61% to CNY 220,265,794.80[8] - Basic earnings per share for the period was CNY 0.8486, up 46.97% compared to the same period last year[8] - The company's net profit for the period increased by 38% year-on-year, leading to retained earnings of ¥1,530,009,663.40[16] - Net profit for the current period was ¥253,465,360.08, representing a 46.9% increase from ¥172,465,416.94 in the same period last year[39] - The total profit for Q3 2018 was CNY 729,046,925.53, up from CNY 527,611,720.35 in the same period last year[48] Assets and Liabilities - Total assets increased by 15.28% to CNY 3,484,869,359.01 compared to the end of the previous year[8] - The total current assets increased to ¥3,335,588,828.07 from ¥2,874,212,772.30, representing a growth of approximately 16.03%[30] - Total liabilities increased to ¥160,037,202.38 from ¥148,858,647.61, which is an increase of about 7.85%[32] - The total equity attributable to shareholders rose to ¥3,324,832,156.63 from ¥2,874,055,019.29, indicating an increase of approximately 15.65%[32] - The company's total assets reached ¥3,484,869,359.01, up from ¥3,022,913,666.90, representing a growth of about 15.29%[32] Cash Flow - The net cash flow from operating activities for the year-to-date was CNY 472,502,279.51, an increase of 38.20%[8] - The cash flow from operating activities for Q3 2018 was CNY 472,502,279, an increase from CNY 341,909,564 in the same period last year[52] - The cash inflow from operating activities totaled ¥1,282,164,694.64, compared to ¥1,089,944,598.68 in the previous period, reflecting an increase of approximately 17.6%[56] - The cash outflow for operating activities was ¥809,678,202.42, an increase from ¥746,684,797.70 in the previous period, representing a rise of about 8.4%[56] Shareholder Information - The company reported a total of 19,277 common shareholders at the end of the reporting period[12] - The top three shareholders held a combined 49.55% of the shares, with Wu Zhongyi holding 21.43%[12] Research and Development - Research and development expenses grew by 36% year-on-year to ¥81,000,339.86, reflecting the company's increased investment in R&D[18] - Research and development expenses for Q3 2018 amounted to CNY 81,000,339, compared to CNY 59,729,110 in the previous year, indicating a focus on innovation[50] Investment Income - Investment income surged by 355% year-on-year to ¥95,310,460.44, driven by higher returns from financial products[18] - Investment income rose to ¥32,733,315.13, up 71.5% from ¥19,086,913.53 in the prior period[39] Other Financial Metrics - The weighted average return on equity was 7.94%, an increase of 1.44% from the previous year[8] - The company plans to implement a stock incentive plan, which was approved by the board and disclosed to the public[21] - The company reported a comprehensive income total of ¥265,917,502.16, compared to ¥172,459,693.72 in the previous period, marking a significant increase[40] - The company experienced a foreign exchange gain of ¥17,054,594.39, compared to a loss of ¥14,666,854.58 in the prior period[39]

Financial Performance - Net profit attributable to shareholders rose by 46.97% to CNY 253,465,360.08 for the reporting period[8] - Operating revenue for the period reached CNY 478,650,403.47, reflecting a growth of 26.21% year-on-year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 44.61% to CNY 220,265,794.80[8] - Basic earnings per share for the period were CNY 0.4243, up 46.97% compared to the same period last year[8] - The company's net profit for the period increased by 38% year-on-year, leading to retained earnings of ¥1,530,009,663.40[16] - Net profit for Q3 2018 reached CNY 663,605,664, a significant increase of 39.0% from CNY 477,559,734 in Q3 2017[48] - The total comprehensive income for Q3 2018 was CNY 689,721,137, compared to CNY 477,549,961 in Q3 2017, indicating a year-over-year increase of 44.3%[48] Assets and Liabilities - Total assets increased by 15.28% to CNY 3,484,869,359.01 compared to the end of the previous year[8] - The total current assets increased to ¥3,335,588,828.07 from ¥2,874,212,772.30, representing a growth of approximately 16.04%[30] - Total current liabilities rose to ¥160,037,202.38 from ¥148,858,647.61, which is an increase of about 7.85%[32] - The company's equity attributable to shareholders increased to ¥3,324,832,156.63 from ¥2,874,055,019.29, representing a growth of approximately 15.65%[32] - Total non-current assets slightly increased to ¥149,280,530.94 from ¥148,700,894.60, showing a marginal growth of about 0.39%[31] Cash Flow - The company reported a net cash flow from operating activities of CNY 472,502,279.51, which is a 38.20% increase year-to-date[8] - Cash flow from operating activities for the period was CNY 472,502,279, an increase of 38.3% from CNY 341,909,564 in the same period last year[52] - The total cash inflow from operating activities is ¥1,282,164,694.64, compared to ¥1,089,944,598.68 in the previous period, reflecting an increase of approximately 17.6%[56] - The cash flow from financing activities resulted in a net outflow of -¥222,944,000.00, contrasting with a net inflow of ¥1,458,499,197.57 in the previous period[58] Shareholder Information - The total number of shareholders at the end of the reporting period was 19,277[12] - The top shareholder, Wu Zhongyi, holds 21.43% of the shares, totaling 64,000,000 shares[12] Research and Development - Research and development expenses grew by 36% year-on-year to ¥81,000,339.86, reflecting the company's increased investment in R&D[18] - Research and development expenses for Q3 2018 amounted to CNY 81,000,340, which is a 35.6% increase from CNY 59,729,111 in Q3 2017[50] Investment Income - Investment income surged by 355% year-on-year to ¥95,310,460.44, driven by higher returns from financial products[18] - The company reported an investment income of CNY 95,310,460, significantly higher than CNY 20,965,446 in the previous year, marking an increase of 354.5%[50] Government Subsidies - The company received government subsidies amounting to CNY 2,782,064.08 during the reporting period[9] Other Financial Metrics - The weighted average return on net assets was 7.94%, an increase of 1.44% from the previous year[8] - The company experienced a foreign exchange gain of CNY 20,798,438, compared to a loss of CNY 28,808,354 in the previous year, indicating a positive turnaround[48]

Financial Performance - Total revenue for the reporting period was ¥840,442,690.53, an increase of 22.74% compared to ¥684,725,480.61 in the same period last year[21]. - Net profit attributable to shareholders was ¥410,140,304.15, representing a growth of 34.43% from ¥305,094,317.52 year-on-year[21]. - Net profit after deducting non-recurring gains and losses was ¥355,090,983.28, up 19.13% from ¥298,076,288.86 in the previous year[21]. - The net cash flow from operating activities increased by 44.86% to ¥324,672,409.24 from ¥224,130,927.43[21]. - Basic earnings per share rose by 17.63% to ¥1.3732 from ¥1.1674 in the same period last year[21]. - Total assets at the end of the reporting period were ¥3,207,254,550.90, a 6.10% increase from ¥3,022,913,666.90 at the end of the previous year[21]. - Net assets attributable to shareholders increased by 6.43% to ¥3,058,914,654.47 from ¥2,874,055,019.29[21]. Market Position and Competition - The company has a strong market position with stable international clients, but increasing competition and non-tariff barriers from developed countries pose challenges[6]. - The company maintains a leading position in the SIP phone market, being the largest provider globally and in China[28]. - The company's SIP phone market share has become the largest globally, with significant sales growth in various segments due to effective sales expansion strategies[41]. - The ongoing development of SIP and VCS technologies positions the company favorably in the evolving unified communications market[40]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product portfolio[67]. Product Development and Innovation - The company launched new video conferencing products, including VC200 and VC880, enhancing its product competitiveness[29]. - The introduction of the "Cloud Video" service has reduced user costs and met the market trend for video conferencing[31]. - The VCS business has seen a notable increase in sales, with the introduction of new products like VC200 and VC880, expanding the company's market reach from small to medium and large enterprises[41]. - The company is investing in research and development for new technologies, aiming to enhance product offerings and improve market competitiveness[67]. - A new product line is set to launch in Q3 2018, anticipated to generate an estimated 500 million in additional revenue[67]. Financial Management and Investments - The company has raised a total of ¥158,954.72 million in funds, with ¥10,795.25 million invested during the reporting period[55]. - The proportion of investment income to total profit was 13.86%, primarily from bank financial product returns[49]. - The company has not engaged in any entrusted financial management, derivative investments, or entrusted loans during the reporting period[61]. - The company has a total of 13 million in non-principal guaranteed wealth management products with an average return of 5.18%[64]. - The company has successfully recovered 63.58 million from wealth management products with a return of 5.10%[62]. Risks and Compliance - The company faces exchange rate risks, particularly as its export business is primarily settled in USD, which could impact price competitiveness and lead to exchange losses[8]. - The company’s legal compliance is critical, as failure to adhere to regulations could result in fines and impact business operations[7]. - The company aims to reduce financial costs and mitigate the impact of exchange rate fluctuations through its derivatives investments[75]. - The company has established a "Derivatives Investment Management System" to regulate foreign exchange derivatives trading and mitigate associated risks[75]. - The company has not experienced any major litigation or arbitration matters during the reporting period[94]. Shareholder Information - The total share capital increased from 149,340,000 shares to 298,680,000 shares due to a capital reserve conversion[117]. - The shareholding structure remains unchanged after the capital increase[118]. - The total number of ordinary shareholders at the end of the reporting period is 20,052[122]. - Wu Zhongyi holds 21.43% of the shares, totaling 64,000,000 shares[122]. - The company has not experienced any changes in its controlling shareholder during the reporting period[124]. Future Outlook - Future outlook suggests a targeted revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[67]. - The company has plans for market expansion and new product development, although specific figures were not disclosed in the report[169]. - Overall, the company remains optimistic about maintaining a strong growth trajectory in the competitive landscape[67].

Financial Performance - Total revenue for Q1 2018 reached ¥412,423,021.69, an increase of 31.76% compared to ¥313,021,870.54 in the same period last year[8] - Net profit attributable to shareholders was ¥196,338,738.58, up 39.05% from ¥141,199,372.56 year-on-year[8] - Net cash flow from operating activities increased by 40.20% to ¥141,737,389.46, compared to ¥101,094,332.24 in the previous year[8] - Basic earnings per share decreased by 30.48% to ¥1.3147, down from ¥1.8910 in the same period last year[8] - The company's operating revenue for Q1 2018 was ¥412.42 million, representing a 31.76% increase compared to ¥313.02 million in the same period last year[18] - The total operating revenue for Q1 2018 was CNY 412,423,021.69, an increase from CNY 313,021,870.54 in the previous period[40] - The net profit attributable to the parent company was CNY 196,338,738.58, up 39.0% from CNY 141,199,372.56 in Q1 2017[44] - The total comprehensive income for the period was CNY 196,332,679.71, compared to CNY 141,197,666.76 in Q1 2017, reflecting a strong performance[42] Assets and Liabilities - Total assets at the end of the reporting period were ¥3,165,564,963.82, a 4.72% increase from ¥3,022,913,666.90 at the end of the previous year[8] - The total liabilities at the end of Q1 2018 were CNY 115,120,680.39, a decrease from CNY 148,858,647.61 in the previous period[38] - The total equity attributable to shareholders of the parent company increased to CNY 3,051,617,730.35 from CNY 2,875,289,255.10[38] - Cash and cash equivalents at the end of Q1 2018 were CNY 118,654,775.59, compared to CNY 88,546,103.65 at the beginning of the period[36] Cash Flow - Cash flow from operating activities was CNY 359,539,604.58, compared to CNY 261,328,171.40 in the previous year, showing a significant increase[47] - The net cash flow from operating activities for Q1 2018 was ¥141,737,389.46, an increase of 40% compared to ¥101,094,332.24 in Q1 2017[48] - Total cash inflow from investment activities was ¥2,146,771,944.06, with cash outflow amounting to ¥2,255,666,355.46, resulting in a net cash flow of -¥108,894,411.40 for investment activities[49] - The net cash flow from financing activities was ¥1,593,786,736.51, indicating strong capital inflow during the quarter[49] Operating Costs and Expenses - The company's financial expenses surged by 520.35% to ¥10.30 million, primarily due to increased exchange loss from currency fluctuations[18] - The company's gross profit margin decreased as operating costs rose by 44.01% to ¥160.94 million, reflecting the increase in revenue[18] - Operating expenses, including sales and management costs, totaled CNY 48,868,691.74, an increase of 36.5% from CNY 38,347,164.48 in Q1 2017[44] - The tax expense for the quarter was CNY 20,068,381.52, compared to CNY 14,121,541.21 in Q1 2017, indicating a higher tax burden due to increased profits[44] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 20,188[13] - The company did not engage in any repurchase transactions during the reporting period[15] Risks and Challenges - The company faces risks related to high overseas market dependence and potential trade disputes affecting sales revenue[10] - Exchange rate fluctuations pose a risk to the company's export pricing competitiveness and may impact financial performance[11] Investments and Projects - The company continues to invest in R&D to enhance product competitiveness, contributing to its growth rate exceeding industry averages[21] - The shift from analog to digital communication is driving demand for the company's SIP phones, which are becoming the market standard[21] - The total amount of raised funds is ¥158,954.72 million, with ¥6,853.89 million invested in the current quarter[24] - Cumulative investment of raised funds reached ¥54,256.59 million, indicating a significant deployment of resources[24] - The upgrade and industrialization project of unified communication terminals has a total investment of ¥42,883.28 million, with 47.87% of the project completed by June 30, 2019[24] - The research and industrialization project of high-definition video conferencing systems has a total investment of ¥37,355.8 million, with 31.30% completed by December 31, 2020[24] - The construction project of the cloud computing center has a total investment of ¥24,826.31 million, with 35.11% completed by December 31, 2019[24] - The cloud communication operation platform construction project has a total investment of ¥43,908 million, with only 7.60% completed by December 31, 2020[24] - As of March 31, 2018, the company had unused raised funds amounting to ¥104,698.13 million, excluding financial management and interest income[25] - The company plans to replace ¥23,211.90 million of self-raised funds with raised funds for investment projects, which was approved by the board and supervisory committee[25] Employee Compensation - The company reported a decrease in employee compensation payable to CNY 9,126,007.87 from CNY 41,508,640.34[37] - Cash paid to employees was ¥59,738,579.75, an increase from ¥46,355,179.34 in Q1 2017, indicating a rise in workforce compensation[48]