Financial Performance - The company's operating revenue for Q3 2021 was ¥256,621,567.39, representing a 26.18% increase year-over-year, while the total revenue for the year-to-date reached ¥619,725,018.01, up 63.47% compared to the same period last year[3]. - Net profit attributable to shareholders decreased significantly by 92.59% in Q3 2021 to ¥2,488,504.02, and year-to-date net profit was ¥4,403,131.99, down 77.76% year-over-year[3]. - Total operating revenue for the third quarter of 2021 reached ¥619,725,018.01, a significant increase from ¥379,116,865.37 in the same period last year, representing a growth of approximately 63.5%[29]. - Operating profit for Q3 2021 was CNY 10,166,633.32, down 59.0% from CNY 24,848,215.20 in Q3 2020[30]. - Total comprehensive income for Q3 2021 was CNY 3,964,058.26, a decrease of 79.9% compared to CNY 19,696,264.74 in Q3 2020[31]. - The net profit for Q3 2021 was CNY 4,403,131.99, a decrease of 77.7% compared to CNY 19,794,273.48 in Q3 2020[30]. Cash Flow and Assets - The company reported a negative net cash flow from operating activities of ¥107,981,926.96, a decline of 117.54% compared to the previous year[10]. - The company's cash and cash equivalents at the end of Q3 2021 were ¥353,520,492.94, down 32.75% from ¥525,707,630.54 at the end of the previous year[10]. - The company's cash and cash equivalents decreased to ¥353,858,357.79 as of September 30, 2021, down from ¥774,858,434.51 at the end of 2020, reflecting a decline of approximately 54.4%[25]. - The total assets at the end of Q3 2021 were ¥1,869,337,485.23, a decrease of 3.00% from the end of the previous year[3]. - The total assets of the company as of September 30, 2021, were ¥1,869,337,485.23, a slight decrease from ¥1,927,143,704.88 at the end of 2020[27]. - The company's retained earnings as of September 30, 2021, were ¥353,914,238.83, down from ¥406,165,678.09 at the end of 2020, reflecting a decrease of approximately 12.9%[27]. Liabilities and Shareholders' Equity - The company's total liabilities decreased to ¥323,489,531.81 as of September 30, 2021, down from ¥390,115,199.76 at the end of 2020, indicating a reduction of about 17.1%[27]. - The company's total liabilities decreased by 31.30% in accounts payable, reflecting timely payments to suppliers[8]. - Current liabilities amounted to CNY 383,096,264.41, which increased by CNY 17,076,066.27 from the previous period[38]. - Total liabilities were CNY 390,115,199.76, reflecting an increase of CNY 49,469,547.18 compared to the previous period[38]. - Shareholders' equity totaled CNY 1,537,028,505.12, remaining unchanged from the previous period[38]. Research and Development - Research and development expenses increased by 109.77% to ¥197,335,068.57 in Q3 2021, indicating a significant investment in new product development[9]. - Research and development expenses increased to CNY 197,335,068.57, up 109.5% from CNY 94,072,136.17 in the same period last year[30]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 14,188[12]. - The largest shareholder, Wei Dongxiao, holds 27.76% of the shares, totaling 62,913,101 shares[12]. - The second-largest shareholder, Chen Zhijiang, holds 13.95% of the shares, totaling 31,619,428 shares[12]. - The total number of restricted shares held by Wei Dongxiao is 47,184,826, which is subject to a 75% lock-up during his tenure as a director[15]. - Chen Zhijiang has 24,208,446 restricted shares remaining after a release of 5,526,271 shares during the period[15]. - The company has granted 3,025,000 restricted stocks to 201 incentive objects, representing 1.33% of the total share capital[18]. - The reserved portion of the incentive plan is 750,000 shares, accounting for 0.33% of the total share capital[18]. - The first grant of restricted stocks is 80.13% of the total granted rights under the incentive plan[18]. - The company has not disclosed any related party relationships among the top shareholders[13]. - There are no shareholders participating in margin trading activities[13]. Investments and Acquisitions - The company acquired a 42% stake in Shandong Fangcun Microelectronics Technology Co., Ltd. for ¥6.8334 million, enhancing its market position in the microelectronics sector[21]. - The company plans to purchase office property with a total area of approximately 51,541.43 square meters at a price of ¥5.98 billion, aimed at supporting its business expansion[22]. Other Financial Information - The company completed the cancellation of 79,576 stock options and repurchased 70,856 restricted stocks, impacting the total share capital from 226,689,141 shares to 226,618,285 shares[20]. - The company adopted the new leasing standards effective January 1, 2021, which resulted in the addition of "right-of-use assets" and "lease liabilities" to the balance sheet[39]. - The company reported a significant increase in "right-of-use assets" due to the new leasing standards, impacting the financial position positively[39]. - The third quarter report for 2021 was not audited[40]. - The company continues to focus on expanding its market presence and enhancing its product offerings through new technologies and strategies[38].

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 363,103,450.62, representing a 106.61% increase compared to CNY 175,743,649.57 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was CNY 1,914,627.97, a significant turnaround from a loss of CNY 13,807,863.85 in the previous year, marking a 113.87% improvement[21]. - The basic earnings per share increased to CNY 0.01 from a loss of CNY 0.07, reflecting a 114.29% improvement[21]. - The company achieved a main business revenue of ¥361,521,124.44, representing a year-on-year growth of 105.89%[37]. - The total revenue for the reporting period reached CNY 220,167,194.66, representing a year-on-year growth of 151.18%[105]. - The net loss for the company during the reporting period was CNY 38,338,042.47, attributed to increased personnel costs[105]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 1,845,190,314.04, a decrease of 4.25% from CNY 1,927,143,704.88 at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company were CNY 1,527,355,092.58, down 0.63% from CNY 1,537,041,810.74 at the end of the previous year[21]. - The company's total equity decreased to ¥1,527,341,786.96 from ¥1,537,028,505.12, a decline of about 0.5%[191]. - The company's total liabilities as of June 30, 2021, were ¥317,848,527.08, down from ¥390,115,199.76 at the end of 2020, indicating a reduction of approximately 18.5%[191]. Cash Flow and Investments - The net cash flow from operating activities was CNY -91,352,333.39, which is a 9.69% decline compared to CNY -83,279,324.76 in the same period last year[21]. - The company's cash and cash equivalents decreased to ¥418,516,448.31 from ¥774,858,434.51, reflecting a significant drop of about 46%[189]. - The company reported a total investment of 3,000 million in various financial products with an average return rate of 2.70%[95]. - The company has ongoing investments of 3,000 and 2,000 with return rates of 3.01% and 3.01% respectively, both set to mature in August 2021[96]. Research and Development - Research and development expenses increased by 103.07% to ¥112,138,438.31 from ¥55,222,873.80, reflecting the company's commitment to enhancing its R&D capabilities[72]. - The company aims to enhance technological research and innovation to improve core competitiveness and expand business scale in core areas[130]. - The company has established R&D centers in multiple cities including Beijing, Jinan, Nanjing, Hangzhou, Wuhan, and Chengdu to focus on technology and product development[106]. Market Position and Strategy - The company focuses on high-value-added products and services, emphasizing self-research and development for core technologies[35]. - The company has maintained its leading position in the security and confidentiality sector, focusing on data security, confidentiality checks, and protective supervision[51]. - The company has established strategic partnerships with institutions like the Chinese Academy of Sciences to enhance its technological capabilities and brand influence[48]. - The company has accelerated organizational development and improved risk management mechanisms to enhance governance capabilities[44]. Compliance and Governance - The company has committed to complying with various regulatory requirements and industry policies related to cybersecurity[53]. - The company has maintained compliance with environmental regulations, reporting no administrative penalties related to environmental issues during the reporting period[123]. - The company guarantees that no unfair benefits will be provided to other entities or individuals, ensuring compliance with financial regulations[132]. Shareholder and Incentive Plans - The company approved the 2021 Restricted Stock Incentive Plan, granting 3.025 million shares to 201 incentive recipients, representing 1.33% of the total share capital of 226.689141 million shares[121]. - The company has committed to long-term holding of its shares by its controlling shareholder, ensuring stability in ownership[132]. - The number of restricted shares released for trading was 659,544 shares, effective from June 25, 2021[167]. Risks and Challenges - The management has outlined potential risks and corresponding mitigation strategies in the report, which investors are encouraged to review[4]. - The company benefits from tax incentives and government subsidies, which, if altered, could negatively affect profitability and net income[110]. - The company's sales exhibit significant seasonality, with lower sales in the first half of the year due to clients' budgeting and procurement practices, impacting revenue and profit distribution[108].

Financial Performance - The company's operating revenue for Q1 2021 was ¥119,324,472.07, representing a significant increase of 296.24% compared to ¥30,114,484.06 in the same period last year[7]. - The net profit attributable to shareholders was a loss of ¥10,374,154.97, which is an improvement of 63.62% from a loss of ¥28,518,427.10 in the previous year[7]. - The basic and diluted earnings per share were both -¥0.05, showing an improvement of 64.29% from -¥0.14 in the same quarter last year[7]. - The company reported a net loss of CNY 10,374,154.97 for the first quarter, narrowing the loss by 63.62% year-on-year[19]. - Total operating revenue for Q1 2021 was CNY 119,324,472.07, a significant increase from CNY 30,114,484.06 in the same period last year, representing a growth of 295.5%[40]. - Net loss for Q1 2021 was CNY 10,374,154.97, compared to a net loss of CNY 28,518,427.10 in Q1 2020, showing an improvement of 63.6%[42]. - The total comprehensive income for the quarter was CNY 12,618,959.71, recovering from a loss of CNY 14,091,570.03 in the previous year[47]. Cash Flow and Assets - The net cash flow from operating activities was negative at ¥111,485,264.07, a decrease of 14.89% compared to the previous year's negative cash flow of ¥97,040,085.68[7]. - Cash and cash equivalents decreased by 37.77% to CNY 482,193,509.93 due to cash management of idle funds[17]. - The company's cash flow from operating activities showed a net outflow of CNY 111,485,264.07, worsening from a net outflow of CNY 97,040,085.68 in Q1 2020[50]. - The total cash and cash equivalents at the end of Q1 2021 amounted to ¥328,274,297.61, down from ¥524,101,187.87 at the beginning of the period, reflecting a net decrease of ¥195,826,890.26[53]. - The company's total assets as of Q1 2021 were ¥1,927,143,704.88, a decrease from ¥1,977,910,167.16 at the end of the previous year[57]. - The company's total current assets were reported at ¥1,781,953,057.85 in Q1 2021, slightly up from ¥1,775,855,820.05 in the previous year[56]. Investments and R&D - The company increased its investment in research and development, with R&D expenses rising by 113.05% to CNY 47,649,958.54[17]. - The company has plans to continue investing in R&D to enhance product offerings and market competitiveness[40]. - The company confirmed a collaboration with Shandong Fangcun Microelectronics Technology Co., Ltd. for joint research and development[21]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 16,239[10]. - The largest shareholder, Wei Dongxiao, holds 27.75% of the shares, amounting to 62,913,101 shares[10]. Projects and Commitments - The project "Overall Security Protection Solution Based on Domestic Platform" has a total commitment of 19,200 million CNY, with 35.17% of the investment completed[25]. - The "Big Data Network Security Supervision Solution" project has a total commitment of 25,800 million CNY, with 20.30% of the investment completed[25]. - The "Operation Service Platform Construction" project has a total commitment of 17,700 million CNY, with 27.51% of the investment completed[25]. - The company has not encountered any major changes in project feasibility or significant delays in expected returns[25]. - There are no overdue commitments from actual controllers, shareholders, or related parties during the reporting period[22]. Financial Management - The company’s financial assets increased by 38.65% to CNY 597,057,883.97 due to cash management of idle funds[17]. - The company’s deferred income increased by 53.57% to CNY 10,635,000.00 due to government subsidies received[17]. - The company’s investment income surged by 959.02% to CNY 3,631,431.91, attributed to increased cash management returns[17]. - The company approved a restricted stock incentive plan, granting 302.50 million shares to 201 eligible recipients on April 20, 2021[20]. - The company has approved the replacement of CNY 72,544,400.00 of self-raised funds with raised funds for investment projects, enhancing financial flexibility[26]. Operational Efficiency - The company is actively optimizing its business layout to improve operational efficiency and accelerate project implementation[25]. - The company plans to enhance its marketing system and accelerate business layout in central enterprises and special industries[19]. Compliance and Governance - The company reported no violations regarding external guarantees or non-operating fund occupation by controlling shareholders during the reporting period[28][29]. - The first quarter report for 2021 was not audited[63].

Financial Performance - The company's operating revenue for 2020 was ¥992,734,319.13, representing a year-over-year increase of 64.68% compared to ¥602,819,863.90 in 2019[18]. - The net profit attributable to shareholders for 2020 was ¥241,744,800.46, a significant increase of 93.54% from ¥124,904,746.50 in 2019[18]. - The total revenue for 2020 reached ¥992.73 million, representing a 64.68% increase compared to ¥602.82 million in 2019[79]. - The company's basic earnings per share for 2020 was ¥1.12, an increase of 89.83% compared to ¥0.59 in 2019[18]. - The overall gross margin decreased due to a higher proportion of hardware sales, while net profit margin improved due to scale effects and a reduction in expense ratio to 41.23%, down 8.17 percentage points from 49.40% in 2019[71]. Revenue Breakdown - Revenue from data security products reached ¥40,136,030.81, accounting for 4.05% of the company's total operating income for 2020[5]. - Revenue from network security products totaled ¥577,331,033.22, up 54.95% compared to the previous year[60]. - Revenue from government and public institutions accounted for 68.16% of total revenue, totaling ¥676,133,184.45[68]. - The company's revenue from special industries, central enterprises, and financial sectors reached ¥156,083,155.84, a year-on-year increase of 167.19%, with a revenue share increase of 6.04 percentage points[69]. - The company's information security services revenue increased by 93.91% to ¥332.83 million, up from ¥171.64 million in 2019[79]. Cash Flow and Assets - The net cash flow from operating activities reached ¥172,743,561.01, marking a 105.31% increase from ¥84,137,039.74 in the previous year[18]. - The total assets at the end of 2020 amounted to ¥1,927,143,704.88, up 158.58% from ¥745,271,093.71 at the end of 2019[18]. - The company has seen a 105.62% increase in cash and cash equivalents compared to the beginning of the period, attributed to increased sales collections and funds from a private placement[51]. - The company reported a significant decrease in cash and cash equivalents as a percentage of total assets, dropping by 10.35 percentage points to 40.21%[109]. - The company’s financial assets included trading financial assets of ¥430,626,235.62, reflecting a significant increase due to cash management of idle funds[111]. Research and Development - The company is focusing on R&D in data protection and security solutions, aiming to transition from "core security" to "comprehensive security"[64]. - The company has established a research and development team of 725 personnel, focusing on core technologies in data security, including data collection, analysis, protection, and visualization[133]. - Research and development expenses increased by 56.11% to ¥166,405,623.84, reflecting the company's commitment to enhancing R&D investment[99]. - The company is focusing on R&D in areas such as security protection, network security supervision, and data security, with several key projects in progress[100]. - The company plans to enhance core competitiveness through increased investment in technology research and innovation[154]. Market Position and Strategy - The company aims to achieve a comprehensive security industry layout and become a recognized leader in digital security by 2025[131]. - The cybersecurity industry in China is projected to grow at a compound annual growth rate of 16.80% from 2020 to 2024, outpacing global market growth[45]. - The company has established a strategic partnership with the Chinese Academy of Sciences to enhance its research and development capabilities in cybersecurity[44]. - The company has developed core technical capabilities in data protection and monitoring, focusing on sensitive data security solutions[44]. - The company is actively expanding its market presence in data inspection and sensitive data monitoring within the energy and financial sectors[69]. Dividend and Profit Distribution - The profit distribution plan approved by the board proposes a cash dividend of ¥2.5 per 10 shares, based on a total of ¥226,689,141[7]. - The total cash dividend amount for 2020 is 56,672,285.25 CNY, which represents 23.44% of the consolidated net profit attributable to ordinary shareholders[146]. - The company has maintained a cash dividend payout ratio of at least 20% during its growth phase, with significant capital expenditure plans[141]. - The company’s total distributable profit for 2020 is 133,121,264.15 CNY[141]. - The company’s cash dividend distribution plan aligns with its profit distribution management measures[142]. Compliance and Governance - The company will ensure compliance with financial regulations and avoid any actions that could harm the interests of shareholders or the company itself[152]. - The company has committed to not providing technical information or trade secrets to competitors, ensuring a competitive edge in its main business[150]. - The company will prioritize the interests of its shareholders and ensure that any related party transactions are conducted fairly and transparently[152]. - The company has maintained a continuous audit service relationship with Da Hua Accounting Firm for 7 years[160]. - The company has not faced any penalties or rectification issues during the reporting period[165]. Social Responsibility - The company actively participated in social responsibility by donating funds and essential supplies during the COVID-19 pandemic[200]. - The company emphasizes the importance of product quality and aims to provide high-quality products and services to society[200]. - The company adheres to labor laws and provides equal job opportunities and competitive compensation for employees[200]. - The company focuses on improving employee health, safety, and satisfaction by enhancing the work environment and conditions[200]. - The company maintains transparent and timely information disclosure in compliance with relevant laws and regulations[200].

Financial Performance - Total assets reached ¥1,512,373,541.23, an increase of 102.93% compared to the previous year[7] - Net assets attributable to shareholders increased to ¥1,293,061,429.11, up 124.85% year-over-year[7] - Operating revenue for the period was ¥203,373,215.80, representing a growth of 57.63% compared to the same period last year[7] - Net profit attributable to shareholders was ¥33,602,137.33, a significant increase of 67.80% year-over-year[7] - Basic earnings per share rose to ¥0.15, reflecting a 66.67% increase compared to the previous year[7] - The net cash flow from operating activities was ¥33,641,735.80, an increase of 41.36% compared to the same period last year[7] - The weighted average return on equity was 3.24%, a decrease of 1.24 percentage points year-over-year[7] - The company reported a net profit of CNY 36,343,046.45 for the quarter, compared to CNY 19,520,295.16 in Q3 2019, reflecting an increase of 86.1%[38] - The company's total comprehensive income for Q3 2020 was CNY 33,602,137.33, significantly higher than CNY 20,025,336.61 in the previous year[39] - The total revenue for the year-to-date period reached CNY 379,116,865.37, compared to CNY 302,636,375.41 in the previous year[43] Shareholder Information - The total number of shareholders at the end of the reporting period was 13,980[11] - The top shareholder, Wei Dongxiao, holds 27.76% of the shares, amounting to 62,913,101 shares[11] - The total number of restricted shares at the beginning of the period was 67,325,271, with 66,809,101 shares released during the period[15] - The total number of restricted shares at the end of the period was 98,610,167, indicating an increase of 31,284,896 shares[15] - The total number of shares held by the management team at the end of the period was 47,184,826, reflecting a substantial portion of the total restricted shares[15] Cash Flow and Investments - Cash and cash equivalents increased by 39.77% to ¥526,715,830.39 due to funds raised from a private placement[18] - Cash inflow from investment activities totaled ¥556,394,114.24, significantly higher than ¥73,444,738.93 in the previous period[51] - The company raised ¥754,062,420.00 from financing activities, compared to no inflow in the previous period[51] - The ending cash and cash equivalents balance increased to ¥525,707,630.54 from ¥214,865,159.44, marking a substantial rise[51] - The net cash flow from financing activities was 725,245,351.41 CNY, compared to -14,030,156.32 CNY in the same period last year[54] Research and Development - R&D expenses grew by 39.24% to ¥94,072,136.17 as the company increased its investment in research and development[20] - The R&D expenses for the quarter were CNY 38,849,262.37, which is a 40.9% increase from CNY 27,566,282.95 in the previous year[38] - Research and development expenses for Q3 2020 were CNY 11,237,756.79, a decrease from CNY 14,617,979.75 in Q3 2019[40] Operating Costs - Operating costs for the first nine months increased by 35.86% to ¥122,273,913.42, driven by growth in information security service revenue[20] - The total operating costs amounted to CNY 171,765,231.01, up from CNY 116,259,380.28, reflecting a year-over-year increase of 47.8%[38] - The company's total operating costs for Q3 2020 were CNY 26,786,686.20, up from CNY 16,805,602.35 in Q3 2019[40] Liabilities and Equity - The total liabilities increased to CNY 112,430,444.85 from CNY 41,461,009.30, marking a rise of 171.5%[35] - The equity attributable to shareholders of the parent company was CNY 1,240,887,684.57, up from CNY 511,399,787.61, indicating an increase of 142.5%[35] - The total liabilities amounted to 170,205,603.34 CNY, with current liabilities at 164,735,603.34 CNY[59] Changes in Restricted Shares - The company experienced significant changes in the number of restricted shares due to the departure of certain executives and performance evaluations[15] - The company plans to release 30% of the shares in 2021 and 2022, and 40% in 2023 based on performance assessments[15] - The company’s stock incentive plan includes provisions for repurchasing and canceling shares based on performance criteria[15] Financial Adjustments - The company adjusted its financial statements to comply with new revenue and leasing standards effective from January 1, 2020[56] - The company has implemented new revenue recognition standards effective January 1, 2020, impacting financial reporting[64]

1 证券代码：300659 证券简称：中孚信息 公告编号：2020-102 中孚信息股份有限公司 关于参加山东辖区上市公司 2020 年度投资者网上集体接待日活动 的公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有虚 假记载、误导性陈述或重大遗漏。 为进一步加强与投资者的互动交流工作，中孚信息股份有限公司（以下简称 "公司"）将参加由山东证监局、山东上市公司协会与深圳市全景网络有限公司 联合举办的"山东辖区上市公司 2020 年度投资者网上集体接待日"活动，现将 有关事项公告如下： 本次投资者网上集体接待日活动将通过深圳市全景网络有限公司提供的网 上平台举行。广大投资者可以 登录"全景·路演天下"网站（网址： http://rs.p5w.net）参与本次投资者网上集体接待日活动。网上互动交流时间 为 2020 年 9 月 29 日（星期二）下午 15:00—16:55。 届时公司董事、副总经理、董事会秘书孙强和证券事务代表佘崇林将通过网 络在线形式与投资者进行沟通交流，欢迎广大投资者积极参与。 特此公告。 中孚信息股份有限公司 董事会 2020 年 9 月 26 日 ...

Financial Performance - The company's operating revenue for the current period is ¥175,743,649.57, representing a 1.23% increase compared to ¥173,614,130.99 in the same period last year[20]. - The net profit attributable to shareholders for the current period is -¥13,807,863.85, a decrease of 119.37% from -¥6,294,223.86 in the previous year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses is -¥18,941,750.49, reflecting a decline of 185.84% compared to -¥6,626,778.21 last year[20]. - The net cash flow from operating activities improved by 18.28%, amounting to -¥83,279,324.76, compared to -¥101,905,706.48 in the previous year[20]. - Total assets at the end of the current period are ¥720,242,027.77, down 3.36% from ¥745,271,093.71 at the end of the previous year[20]. - The net assets attributable to shareholders decreased by 5.12%, totaling ¥545,617,700.13 compared to ¥575,078,795.99 at the end of the previous year[20]. - The company reported a total of ¥5,133,886.64 in non-recurring gains and losses for the current period, primarily from government subsidies and fair value changes of financial assets[25]. - The company reported a total investment of 40.5 million yuan in various financial instruments, with a total expected return of 84.82 million yuan[70]. - The company reported a total of 734.87 million CNY in related party transactions during the reporting period, with 37.28% of these transactions being with related parties[110]. Market and Operational Strategy - The company emphasizes the importance of adapting to rapid market changes and technological innovations to maintain competitive advantages in the software and information technology services industry[4]. - The company plans to increase investments in product research and development, customer service, and talent support to enhance market competitiveness[4]. - The company is committed to tracking market demands closely to ensure its products and services meet customer needs effectively[4]. - The company is focusing on data security solutions, anticipating growth due to the implementation of the Data Security Law[34]. - The company aims to transition from "small confidentiality" to "big security" by leveraging big data technologies for comprehensive network security solutions[36]. - The company is engaged in the research, production, and sales of cybersecurity products, adhering to the principle of "independent and controllable" to form a full range of cybersecurity products[28]. - The rapid advancement of the "信创" (Xinchuang) market is expected to further enhance the company's performance, driven by government policies promoting domestic core software and hardware development[32]. - The company is positioned to benefit from the increasing investment in cybersecurity due to the rising frequency of cyber threats and the government's focus on national security[30]. Seasonal Sales and Revenue Model - The company reported a significant seasonal sales pattern, with lower sales in the first half of the year due to budget management and procurement cycles of major clients, leading to potential seasonal losses[4]. - The company operates under a seasonal revenue model, with a significant portion of its income typically realized in the second half of the year[4]. - The company noted a seasonal sales pattern, with lower sales in the first half of the year due to client budgeting and procurement cycles[78]. Shareholder and Equity Management - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[6]. - The company has committed to repurchase shares if the stock price falls below the latest audited net asset value per share for 20 consecutive trading days after the IPO[87]. - The total amount allocated for share repurchase will not exceed the net proceeds from the initial public offering[87]. - The controlling shareholder is required to increase their shareholding by at least RMB 5 million if the stock price remains below the latest audited net asset value per share after the repurchase plan expires[87]. - The company has committed to controlling costs and expenses effectively while strengthening internal control management[89]. - The company will distribute profits based on operational performance and actively adopt cash dividend distribution methods[89]. - The company has pledged not to transfer benefits to other entities or individuals under unfair conditions[90]. - The company has committed to not transferring or entrusting the management of its shares during the validity period of the confidential integration Class A qualification certificate[91]. Legal and Compliance Issues - The company reported a sales contract dispute involving a subsidiary with a claim amount of CNY 2.77 million, which has been withdrawn[95]. - Another subsidiary is pursuing a claim of CNY 9 million against a partner, with enforcement actions initiated on June 5, 2020[95]. - A labor arbitration case resulted in a ruling requiring the company to pay CNY 5.53 million, which remains unexecuted[95]. - The company is involved in a rental contract dispute seeking a total of CNY 13.81 million in refunds and damages[96]. - A breach of contract case against an individual resulted in a judgment for the company to receive CNY 3 million, with both parties having withdrawn their appeals[96]. - The company has not undergone any bankruptcy reorganization during the reporting period[94]. - The company has not faced any major litigation or arbitration matters during the reporting period[95]. Research and Development - Research and development investment increased by 38.07% to ¥55,222,873.80, up from ¥39,994,920.60 in the previous period, reflecting a commitment to enhancing product competitiveness[47]. - The company has established research centers in Beijing, Jinan, Nanjing, and Hangzhou to focus on technology and product development[78]. - The company is committed to continuous R&D investment to maintain competitive advantages in the rapidly evolving cybersecurity industry[78]. Financial Position and Assets - The total assets at the end of the reporting period amounted to ¥720,000,000, with cash and cash equivalents decreasing by 13.76% to ¥265,062,427.43[56]. - The company's total liabilities were CNY 174,637,633.26, slightly up from CNY 170,205,603.34 at the end of 2019[168]. - The total equity attributable to shareholders decreased to CNY 545,617,700.13 from CNY 575,078,795.99 at the end of 2019[168]. - Cash and cash equivalents decreased to CNY 265,062,427.43 from CNY 376,843,567.97 at the end of 2019, representing a decline of approximately 29.5%[166]. - The company has appointed new executives, including two vice presidents and a chief engineer, to support its operational needs[159]. Stock Incentive Plans - The company has implemented a stock option and restricted stock incentive plan approved by the board on March 11, 2020[99]. - The company approved the 2020 stock option and restricted stock incentive plan, authorizing the board to grant restricted stocks and options to eligible participants[100]. - The actual number of restricted stocks granted was 2,484,800 shares, with 191 participants in the incentive plan[103]. - The company distributed a cash dividend of 2.00 yuan per 10 shares and converted 6 shares for every 10 shares from capital reserves based on a total share capital of 132,766,280 shares[102]. - The company reported a total of 132,833,000 shares before the recent changes, with 50.68% being restricted shares[136]. Shareholder Structure - The total number of ordinary shareholders at the end of the reporting period was 11,069[145]. - Wei Dongxiao holds 29.30% of shares, totaling 62,913,101 shares, with 23,592,413 shares under lock-up[145]. - Chen Zhijiang holds 15.92% of shares, totaling 34,191,346 shares, with 9,412,415 shares under lock-up[145]. - The company’s stock performance and shareholder structure indicate a stable investment environment, with no significant fluctuations reported[148]. - The management team remains committed to maintaining transparency and shareholder engagement throughout the reporting period[157].

Financial Performance - Total revenue for Q1 2020 was ¥30,114,484.06, a decrease of 54.87% compared to ¥66,721,830.50 in the same period last year[8] - Net profit attributable to shareholders was -¥28,518,427.10, representing a decline of 125.72% from -¥12,634,655.44 year-on-year[8] - Basic and diluted earnings per share were both -¥0.22, a decrease of 120.00% compared to -¥0.10 in the previous year[8] - The company reported a net profit for Q1 2020 was a loss of CNY 28,518,427.10, compared to a loss of CNY 12,634,655.44 in Q1 2019, representing a significant increase in losses[39] - The company's total equity decreased to CNY 501,325,493.25 from CNY 511,399,787.61, reflecting a decline of 2.3%[37] - The total comprehensive income for the current period is -14,091,570.03, compared to 1,902,802.46 in the previous period[42] Cash Flow and Assets - The net cash flow from operating activities was -¥97,040,085.68, a slight increase in loss of 2.76% from -¥94,435,541.51 in the same period last year[8] - The company's cash and cash equivalents decreased to 273.59 million yuan from 376.84 million yuan, representing a decline of about 27.4%[30] - The net cash flow from investment activities was -5,258,273.41 CNY, an improvement of 88.62% compared to the previous period[18] - Cash and cash equivalents at the end of the period stand at 272,309,635.88, an increase from 177,076,927.30 in the previous period[45] - The company reported cash inflows from investment activities of 155,342,905.15, while cash outflows were 160,601,178.56, resulting in a net cash flow of -5,258,273.41 from investment activities[45] Assets and Liabilities - Total assets at the end of the reporting period were ¥660,275,323.54, down 11.40% from ¥745,271,093.71 at the end of the previous year[8] - The company's total assets decreased significantly, with a notable drop in prepaid expenses by 30.26% to 4,672,756.30 CNY[18] - The company's total liabilities decreased to 112.78 million yuan from 170.21 million yuan, a reduction of about 33.7%[32] - Total liabilities rose to CNY 74,900,568.91, compared to CNY 41,461,009.30 in the previous period, indicating a 80.5% increase[36] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 6,272[12] - The largest shareholder, Wei Dongxiao, held 29.62% of the shares, totaling 39,320,688 shares[12] - The company has proposed an incentive plan to grant stock options and restricted stocks to 197 individuals[21] Research and Development - The company plans to enhance market development efforts and strengthen its R&D capabilities, focusing on five core technical competencies[19] - Research and development expenses for Q1 2020 were CNY 22,365,515.72, which is an increase of 23.5% compared to CNY 18,138,659.56 in the same period last year[38] - The company has incurred research and development expenses of 6,848,694.72, an increase of 24.1% from 5,518,523.24 in the previous period[41] Regulatory and Compliance - The company has received feedback from the China Securities Regulatory Commission regarding its private placement application and has responded to the feedback[21] - The company reported no violations regarding external guarantees during the reporting period[25] - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[26] - The company has not undergone an audit for the first quarter report, which may affect the reliability of the financial data presented[53] Market Impact - The company's total revenue for Q1 2020 was 30,114,484.06 CNY, a decrease of 54.87% year-on-year due to delays in market sales caused by the COVID-19 pandemic[18] - The company aims to leverage the "new infrastructure" strategy to transform challenges into opportunities as the pandemic situation improves[19]

Fundraising and Financial Performance - The company plans to raise a total of up to 713 million yuan through a non-public offering of A-shares, with the number of shares not exceeding 26.566 million, accounting for 20% of the total share capital before the issuance[7] - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management, ensuring accountability for any misrepresentation[3] - The company reported a basic earnings per share of CNY 0.95 for 2019, up 196.88% from CNY 0.32 in 2018[19] - The company’s operating revenue for 2019 was CNY 602,819,863.90, representing a 69.32% increase compared to CNY 356,026,444.24 in 2018[19] - The net profit attributable to shareholders for 2019 was CNY 124,904,746.50, a significant increase of 194.34% from CNY 42,435,171.41 in 2018[19] - The net cash flow from operating activities reached CNY 84,137,039.74 in 2019, marking a remarkable increase of 723.18% compared to CNY 10,221,008.26 in 2018[19] - The total assets at the end of 2019 amounted to CNY 745,271,093.71, which is a 25.61% increase from CNY 593,302,013.96 at the end of 2018[19] Dividend Distribution - The company will distribute a cash dividend of 2 yuan per 10 shares (including tax) to all shareholders, based on a total of 132,766,280 shares, and will also increase capital by 6 shares for every 10 shares held[9] - The total cash dividend amount for the year is 26,553,256 CNY, which represents 21.26% of the net profit attributable to the company's ordinary shareholders[91] - The cash dividend for the current year is 100% of the distributable profit, which is 133,572,281.76 CNY[88] - The company has maintained a consistent cash dividend policy over the past three years, with total cash dividends distributed amounting to 60,526,806 CNY[91] - The cash dividend distribution plan is consistent with the company's articles of association and dividend management measures[88] Research and Development - The company has established research centers in Beijing, Jinan, Nanjing, and Hangzhou to focus on technology and product development, continuously increasing R&D investment to maintain competitive advantages[6] - The company has committed to increasing investments in product R&D, customer service, and talent support to enhance market competitiveness[4] - The company has a clear focus on innovation and technology development to meet customer demands and maintain market leadership[6] - R&D expenses rose by 51.39% to ¥106,597,264.64, reflecting the company's commitment to enhancing R&D efforts[56] - The number of R&D personnel increased to 380, accounting for 38.62% of the total workforce[57] Market and Operational Risks - The company acknowledges the seasonal risk in sales, with lower sales in the first half of the year due to clients' budgeting and procurement processes, which may lead to seasonal losses[3] - The outbreak of COVID-19 has temporarily impacted the company's operational plans, and the company is taking measures to mitigate adverse effects[8] - The company is closely monitoring the impact of the pandemic on its operations and is actively working to minimize negative effects[8] - Zhongfu Security faces risks related to changes in tax incentives and government subsidies, which could impact profitability[80] - The company is also at risk from rapid technological advancements and the need to keep pace with industry developments to maintain competitive advantage[81] Cybersecurity Focus - The company is engaged in the development and sales of cybersecurity products and services, focusing on national security and compliance with domestic platforms[27] - The cybersecurity market in China is projected to reach approximately CNY 816 billion in 2020, reflecting a 24.00% growth compared to 2019[28] - The company has developed new security solutions based on domestic platforms and big data to meet the increasing demand for data security[27] - The cybersecurity sector contributed ¥602,607,292.49, accounting for 99.96% of total revenue, with a year-on-year growth of 69.43%[44] Shareholder and Governance Matters - Major shareholders, including Wei Dongxiao, plan to reduce their holdings, with Wei limiting annual sales to 10% of his total shares after the lock-up period, while Chen Zhijiang can sell up to 25% annually[95] - The company commits to avoiding any business activities that may compete with its main operations, ensuring no direct or indirect involvement in competitive businesses[98] - The company emphasizes compliance with financial regulations and the avoidance of related party transactions[103] - The company has established a performance evaluation and incentive mechanism for senior management, which effectively motivates their performance[190] - The governance structure of the company is compliant with relevant laws and regulations, ensuring fair treatment of investors[178] Audit and Financial Controls - The audit opinion for the financial statements was a standard unqualified opinion, indicating fair representation of the company's financial status as of December 31, 2019[197] - The company has not reported any material misstatements in its financial reports, with no significant deficiencies identified[192] - The audit identified revenue recognition as a key audit matter due to its significance in the financial statements and potential for misstatement[199] - The audit procedures included substantive testing of significant customer transactions to verify compliance with revenue recognition criteria[199] - The accounts receivable at the end of 2019 accounted for 37.73% of the total revenue for the year[200] Social Responsibility - The company emphasizes its commitment to social responsibility, actively participating in charitable activities and supporting educational initiatives[133] - The company actively participated in targeted poverty alleviation efforts, investing a total of CNY 519,900 (approximately USD 79,000) during the reporting period[136] - The company plans to continue its social responsibility initiatives in response to national calls for poverty alleviation[137] - The company has not been penalized for any violations of environmental protection laws during the reporting period[139]

Fundraising and Financial Plans - The company plans to raise a total of up to 713 million yuan through a non-public offering of A-shares, with the number of shares not exceeding 26.566 million, accounting for 20% of the total share capital before the issuance[7]. - The total amount for share repurchase will not exceed the net proceeds from the initial public offering[101]. - The company has received feedback on its non-public issuance of A-shares, which was approved by the board and shareholders[141]. - The total amount of funds raised in the initial public offering (IPO) was CNY 225.67 million, with CNY 216.32 million utilized by the end of 2019[70]. - The company plans to enhance operational efficiency and profitability through the effective management of raised funds[102]. Profit Distribution and Dividends - The profit distribution plan approved by the board is to distribute a cash dividend of 2 yuan (including tax) for every 10 shares, with a capital reserve conversion of 6 shares for every 10 shares[9]. - The cash dividend amount represents 21.26% of the net profit attributable to ordinary shareholders, which is 124,904,746.50 yuan for 2019[91]. - The cash dividend for 2019 is 100% of the total profit distribution amount, indicating a strong commitment to returning value to shareholders[90]. - The company has consistently maintained a cash dividend policy, with the total cash dividends over the past three years being 20,693,750 yuan in 2017, 13,283,300 yuan in 2018, and 26,553,256 yuan in 2019[91]. - The company’s cash dividend distribution plan for 2019 is subject to approval at the annual general meeting[91]. Research and Development - The company has established research centers in Beijing, Jinan, Nanjing, and Hangzhou, focusing on industry technology and product R&D, and has increased R&D investment to maintain competitive advantages[6]. - The company has committed to increasing investments in product R&D, customer service, and talent support to enhance market competitiveness[4]. - In 2019, the company's R&D expenses amounted to ¥106,597,264.64, representing a 51.39% increase from ¥70,412,918.77 in 2018[59]. - The number of R&D personnel increased to 380 in 2019, accounting for 38.62% of the total workforce, compared to 36.67% in 2018[59]. - The company plans to enhance its product offerings in cloud computing and big data, focusing on security technologies and integrated management systems[59]. Financial Performance - The company's operating revenue for 2019 was CNY 602,819,863.90, representing a 69.32% increase compared to CNY 356,026,444.24 in 2018[19]. - The net profit attributable to shareholders for 2019 was CNY 124,904,746.50, a significant increase of 194.34% from CNY 42,435,171.41 in 2018[19]. - The net cash flow from operating activities reached CNY 84,137,039.74, marking a remarkable increase of 723.18% compared to CNY 10,221,008.26 in 2018[19]. - The total assets at the end of 2019 amounted to CNY 745,271,093.71, which is a 25.61% increase from CNY 593,302,013.96 at the end of 2018[19]. - The company reported a basic earnings per share of CNY 0.95 for 2019, up 196.88% from CNY 0.32 in 2018[19]. Market and Industry Trends - The network security market in China is projected to reach USD 8.75 billion (approximately CNY 816 billion) in 2020, reflecting a year-on-year growth of 24.00%[28]. - The company is focused on developing network security products and services, with a comprehensive range of offerings including confidentiality protection and information security services[27]. - The company is actively developing new products to meet customer needs, particularly in the areas of intelligent inspection tools and confidentiality education training products[41]. - The company is focusing on the domestic security and confidentiality field, leveraging national cybersecurity strategies to enhance its competitive edge[33]. - The company aims to expand its market share in the "信创" (Xinchuang) industry, with rapid growth expected for its products based on domestic platforms[40]. Operational Challenges - The company acknowledges the seasonal risk in sales, with lower sales in the first half of the year and a significant portion of revenue realized in the second half, potentially leading to seasonal losses[4]. - The outbreak of COVID-19 has temporarily impacted the company's operational plans, and the company is taking measures to mitigate adverse effects[8]. - The company is closely monitoring the impact of the COVID-19 pandemic on its operations and is actively taking steps to minimize negative effects[8]. - The company anticipates seasonal fluctuations in sales, with lower revenue typically recorded in the first half of the year[84]. - The company experienced significant seasonal fluctuations, with lower sales in the first half of the year due to budget management practices of major clients[48]. Corporate Governance and Compliance - The company’s financial report is guaranteed to be true, accurate, and complete by its board and management, ensuring accountability for any misrepresentation[3]. - The company will ensure compliance with relevant laws and regulations regarding related party transactions[102]. - The governance structure of the company complies with relevant laws and regulations, ensuring independent operation from the controlling shareholder[178]. - The company actively engages with investors to ensure transparency and fair access to information[179]. - The company has maintained its management structure with no significant changes in the board and supervisory roles during the reporting period[164]. Shareholder Information - Major shareholder Wei Dongxiao plans to reduce his shareholding by no more than 10% of his total shares each year within two years after the lock-up period ends[95]. - Chen Zhijiang intends to reduce his shareholding by no more than 25% of his total shares each year within the same two-year period[95]. - The company has a total of 10 major shareholders, with the top 10 holding significant stakes, including 4.94% by Xiamen Zhongfu Puyi Investment Partnership[152]. - The total number of shareholders at the end of the reporting period was 5,189[151]. - The company’s board members are subject to a 75% lock-up on their shares during their tenure[147]. Social Responsibility - The company actively participated in social responsibility initiatives, contributing a total of 519,900 CNY for poverty alleviation efforts[136]. - The company plans to continue its commitment to social responsibility and contribute to the national poverty alleviation campaign[137]. - The company provided 20 million CNY in capital increase to its wholly-owned subsidiary, Zhongfu Safety Technology Co., Ltd., to support its rapid development[140]. - The company has not reported any issues or other circumstances regarding the use and disclosure of raised funds[74]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[104].