Revenue and Business Operations - The company's main revenue comes from customized software development for State Grid and Southern Grid, accounting for over 80% of the main business revenue during the reporting period [5]. - The company plans to actively expand into local power companies, overseas power markets, gas industry markets, and other innovative business markets to reduce reliance on a few major clients [5]. - Custom software development revenue accounts for over 80% of total revenue, while maintenance service revenue constitutes about 10% [35]. - The company’s revenue from new energy business remains small, thus recent policy changes are not expected to have a significant impact on overall performance [36]. - The company is exploring new business areas while ensuring that innovation efforts do not lead to excessive costs or wasted resources [10]. - The company aims to smooth out seasonal performance fluctuations by actively engaging with clients and expanding its customer base [7]. - The company faces seasonal fluctuations in operating performance, with a significant portion of revenue recognized in the fourth quarter due to the nature of client contract processes [7]. - The company relies heavily on a few major clients, with over 80% of its revenue coming from customized software development for State Grid and Southern Power Grid, posing a risk to its revenue stability [83]. - The company plans to expand into new markets, including local power companies and overseas markets, to reduce dependency on major clients and mitigate risks [83]. Financial Performance - Total revenue for the reporting period was ¥102,362,262.47, a decrease of 19.61% compared to ¥127,331,649.67 in the same period last year [28]. - Net profit attributable to shareholders was -¥75,715,408.65, a significant decline of 8,536.85% from a profit of ¥897,437.13 in the previous year [28]. - The net cash flow from operating activities was -¥189,627,730.88, representing a 104.84% increase in cash outflow compared to -¥92,572,955.07 in the same period last year [28]. - Basic and diluted earnings per share were both -¥0.1817, a decrease of 7,368.00% from ¥0.0025 in the previous year [28]. - Total assets at the end of the reporting period were ¥1,489,427,840.54, down 9.46% from ¥1,645,026,121.93 at the end of the previous year [28]. - Net assets attributable to shareholders decreased by 6.05% to ¥1,088,197,963.16 from ¥1,158,277,487.44 at the end of the previous year [28]. - The company reported a significant increase in non-recurring losses, with a net profit excluding non-recurring items of -¥84,115,931.23, a 304.45% decline from -¥20,797,853.34 in the previous year [28]. - The weighted average return on net assets was -7.44%, a decrease of 4.87% compared to -2.57% in the previous year [28]. - The company reported a significant increase in investment income, which rose to ¥30,511,845.72 from ¥14,450,986.16 in the previous period [156]. - The company anticipates a cumulative net profit loss of approximately RMB 12.87 million for the first three quarters of 2018, representing a significant decline of 568.17% compared to the same period last year [82]. Research and Development - R&D expenses account for approximately 10% of total revenue, with a commitment to maintaining technological leadership and business innovation [10]. - The company maintains a commitment to R&D, with annual R&D expenses consistently around 10% of total revenue, which may lead to increased costs but is essential for maintaining competitive advantage [86]. - R&D investment increased to ¥69,165,598.12, a rise of 79.05% compared to the previous period [47]. Cash Flow and Financial Management - The rapid growth of accounts receivable poses a risk to cash flow, necessitating close monitoring and proactive management of client payment processes [13]. - The company is monitoring accounts receivable closely, as rapid growth in this area could impact cash flow and operational funding needs [87]. - The company's cash and cash equivalents decreased by ¥280,721,018.02, a decline of 39.18% due to increased operational investments [37]. - The company reported a total of 21,254,774.45 CNY in cash paid for dividends and interest during the financing activities [164]. - The cash flow from operating activities showed a significant negative trend, indicating potential liquidity challenges for the company moving forward [164]. Talent and Human Resources - The company emphasizes the importance of retaining high-quality talent amidst increasing industry competition, offering competitive compensation and career development opportunities [14]. - The company is implementing strategies to retain talent and reduce turnover, recognizing that high-quality personnel are critical to its success in a competitive industry [88]. Shareholder and Equity Management - The company will not distribute cash dividends, issue bonus shares, or convert reserves into share capital [15]. - The company has committed to notifying the public three trading days prior to any share reduction after the lock-up period [94]. - The company plans to grant 12.176 million restricted shares to 334 incentive objects, accounting for approximately 2.90% of the total share capital at the time of the announcement [101]. - The company has a structured plan for managing shareholder commitments to ensure compliance with regulations and maintain investor confidence [93]. - The company has committed to a lock-up period for shareholders, extending it by one year if any violations occur [96]. Investment Activities - The company is actively managing its investment portfolio with a focus on maximizing returns through various financial instruments [72]. - The company has established a strategy to diversify its investment sources and enhance overall financial performance [72]. - The company is exploring new investment opportunities to further expand its financial portfolio [72]. - The company has a total of 4,100 million in a floating return investment with a return of 52.13 million at a rate of 5.10% [72]. Compliance and Governance - The semi-annual financial report has not been audited [97]. - The company has not undergone any major litigation or arbitration matters during the reporting period [99]. - There are no penalties or rectification situations reported during the period [100]. - The company has not reported any changes in its registered address or contact information during the reporting period [25].

Revenue Sources - The company's main revenue comes from customized software development for State Grid and Southern Grid, accounting for over 80% of the main business revenue during the reporting period [5]. - The company’s main revenue source, custom software development, accounts for over 80% of total revenue, while maintenance services contribute approximately 10% [37]. - The revenue from the electric power industry decreased by 3.98% to ¥624,679,211.27, accounting for 79.79% of total revenue, while non-electric power industry revenue increased by 59.90% to ¥158,255,829.77, making up 20.21% of total revenue [51]. - The customized software development segment generated ¥667,988,463.49, which is 85.32% of total revenue, with a growth of 3.79% year-on-year [51]. Financial Performance - The company's operating revenue for 2017 was approximately ¥782.94 million, representing a 4.46% increase compared to ¥749.51 million in 2016 [29]. - The net profit attributable to shareholders for 2017 was approximately ¥139.14 million, an increase of 13.97% from ¥122.09 million in 2016 [29]. - The net profit after deducting non-recurring gains and losses was approximately ¥110.71 million, up 14.06% from ¥97.06 million in the previous year [29]. - The total assets at the end of 2017 reached approximately ¥1.65 billion, a 47.80% increase from ¥1.11 billion at the end of 2016 [29]. - The net assets attributable to shareholders increased by 43.07% to approximately ¥1.16 billion from ¥809.60 million in 2016 [29]. - The basic earnings per share for 2017 was ¥0.37, an increase of 8.82% compared to ¥0.34 in 2016 [29]. - The net cash flow from operating activities for 2017 was approximately ¥48.71 million, a decrease of 9.21% from ¥53.66 million in 2016 [29]. - The company reported a weighted average return on equity of 14.70% for 2017, down from 15.40% in 2016 [29]. - The company achieved total operating revenue of CNY 782,935,041.04, representing a year-on-year growth of 4.46% [46]. - The net profit attributable to shareholders reached CNY 139,136,836.46, reflecting a year-on-year increase of 13.97% [46]. Research and Development - R&D expenses account for approximately 10% of total revenue, with a commitment to maintaining innovation and technology leadership in the industry [10]. - The company maintains a consistent R&D investment of around 10% of total revenue, ensuring its leading position in the public utility information technology solutions sector [43]. - R&D investment reached ¥97,301,644.68, accounting for 12.43% of operating revenue, up from 10.71% in 2016 [61]. - The company has maintained a research and development expense ratio of around 10% of total revenue, which supports its technological leadership and business innovation [96]. Market Expansion - The company plans to actively expand into the gas industry market, local power companies, overseas power markets, and other innovative business markets to increase the proportion of new market revenue [6]. - The company is focusing on expanding its market presence in local and overseas electricity sectors, achieving positive progress in these areas [46]. - The company will actively explore new markets, including local power companies, overseas power markets, and the gas industry, to reduce reliance on a few major clients [95]. - The company is actively exploring new business areas such as smart cities and new financial services, focusing on social governance and industrial upgrading [47]. Seasonal Fluctuations and Risks - The company maintains a strong seasonal fluctuation risk in operating performance, with potential negative net profits in the first quarter and first three quarters due to the nature of project approvals and contract signing processes [7]. - The company faces risks related to seasonal fluctuations in operating performance, particularly due to the nature of project approvals and contract signings concentrated in the fourth quarter [96]. - The company recognizes the risk of talent loss due to increasing competition for skilled professionals and is implementing competitive compensation and career development programs [98]. - The company anticipates that rising labor costs could negatively impact profitability and is focused on optimizing its business structure to enhance productivity [97]. Cash Dividends and Profit Distribution - The company will distribute a cash dividend of 0.51 yuan per 10 shares (before tax) based on a base of 416,760,300 shares, with no bonus shares issued [16]. - The cash dividend payout ratio for 2017 was 100% of the total profit distribution [102]. - The total distributable profit for 2017 after statutory surplus reserve deduction was 381,986,961.71 CNY [102]. - The company proposed a cash dividend of 0.51 CNY per 10 shares, totaling 21,254,775.30 CNY, which represents 15.28% of the distributable profit for 2017 [102]. Shareholder Structure and Governance - The company has a total of 18,807 shareholders at the end of the reporting period, with significant shareholders including Yue Qi Capital holding 24.02% and Wuxi Puhua Equity Investment Partnership holding 20.22% [160]. - The top ten shareholders held a total of 100,096,560 shares, with no repurchase agreements executed during the reporting period [161]. - The company’s shareholder structure has changed, reflecting a shift in ownership dynamics and potential strategic partnerships [160]. - The company emphasizes the protection of shareholders' rights and interests, ensuring equal status and rights for all shareholders [139]. Employee and Management Information - The total number of employees in the company is 1,792, with 1,752 in the parent company and 40 in major subsidiaries [189]. - The company has a total of 1,562 technical personnel, representing approximately 87.1% of the workforce [189]. - The company has established a compensation incentive system that aligns responsibility with benefits, ability with value, risk with return, and performance with income [191]. - The company conducted various training programs throughout the year, focusing on enhancing employees' business skills and management capabilities [192]. Related Party Transactions - The company engaged in significant related party transactions, including sales of customized software and service fees, with transaction amounts reaching 1,214.19 million CNY and 268.74 million CNY respectively [122]. - The company maintained a 100% compliance rate for related party transactions, with all transactions conducted at market prices [122]. - The company did not report any overdue receivables or debts related to related party transactions during the reporting period [126]. Financial Management and Investments - The company raised a total of RMB 24,795.00 million through its initial public offering, with a net amount of RMB 20,067.93 million after deducting issuance costs [78]. - The company has a remaining balance of RMB 12,679.29 million in unused raised funds, with discrepancies noted in the balance of RMB 13,943.02 million [78]. - The company reported a total of 61,365 million CNY in entrusted financial management during the reporting period, with no overdue amounts [134]. - The company has not engaged in any mergers or acquisitions during the reporting period [166].

Financial Performance - Total revenue for Q1 2018 was ¥54,938,383.59, a decrease of 10.13% compared to ¥61,132,719.13 in the same period last year[8] - Net profit attributable to shareholders was -¥25,084,680.81, representing a significant decline of 89,383.15% from ¥28,095.65 in the previous year[8] - The first quarter of 2018 saw a significant decline in net profit compared to the first quarter of 2017, attributed to fewer new contracts and increased expenses for innovation[27] - The company's total comprehensive income for Q1 2018 was CNY -28,519,074.84, compared to CNY -192,747.25 in Q1 2017, showing a worsening of overall financial performance[57] - Basic and diluted earnings per share for Q1 2018 were both CNY -0.06, compared to CNY 0.00 in the same period last year[57] Cash Flow - The net cash flow from operating activities was -¥168,033,155.62, which is a 109.14% increase in negative cash flow compared to -¥80,345,200.70 last year[8] - The cash flow from operating activities was CNY 96,941,375.04, compared to CNY 135,904,634.29 in the previous period, indicating a decrease in cash inflow[62] - Total cash inflow from operating activities was 101,882,919.41 CNY, down from 139,308,098.81 CNY, representing a decrease of about 26.8%[63] - The total cash and cash equivalents decreased by 512,383,212.86 CNY during the period, compared to a decrease of 81,862,456.59 CNY in the previous period[64] Assets and Liabilities - The total assets at the end of the reporting period were ¥1,515,266,059.04, down 7.89% from ¥1,645,026,121.93 at the end of the previous year[8] - Current assets totaled CNY 1,316,942,184.45, down from CNY 1,440,737,371.56 at the beginning of the period[51] - Total liabilities decreased to CNY 372,775,596.99 from CNY 474,016,585.04[49] - Owner's equity totaled CNY 1,142,490,462.05, down from CNY 1,171,009,536.89[50] Revenue Concentration and Client Dependency - The company relies heavily on a few major clients, with over 80% of revenue coming from customized software development for State Grid and Southern Grid, indicating a risk of dependency[11] - The top five customers accounted for 54.06% of total sales in the first quarter of 2018, up from 35.63% in the same period of 2017[28] Expenses and Cost Management - Total operating costs increased to CNY 103,402,733.96 compared to CNY 69,119,634.85 in the previous period[55] - Sales expenses increased by 34.38% compared to the previous period, mainly due to increased marketing costs during the reporting period[25] - Management expenses rose by 46.64% year-on-year, primarily due to increased investment in new business research and development[25] - Financial expenses increased by 63.93% compared to the previous period, mainly due to a decrease in bank deposit interest income[25] Investment and R&D - The company maintains a commitment to R&D, with annual R&D expenses consistently around 10% of total revenue, aiming to foster innovation and maintain industry leadership[14] - Investment income grew by 102.40% compared to the previous period, mainly due to increased net profit from the joint venture, Bangdao Technology[25] Market Strategy and Future Plans - The company plans to expand into new markets, including local power companies, overseas power markets, and gas industry markets, to reduce reliance on major clients[11] - The company anticipates potential net losses in the first three quarters due to seasonal revenue concentration in the fourth quarter[40] Shareholder Information - The top ten shareholders hold significant stakes, with Yue Qi Capital owning 24.02% and Wuxi Puhua Equity Investment Partnership holding 20.22%[19] - The total number of ordinary shareholders at the end of the reporting period was 21,094[19] Compliance and Governance - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of its initial public offering[32] - The company has fulfilled its commitments to minority shareholders on time[34] - There are no non-operating fund occupations by controlling shareholders or related parties reported during the period[42]

Revenue and Market Expansion - The company's main revenue comes from customized software development for State Grid and Southern Grid, accounting for over 80% of the main business revenue during the reporting period [5]. - The company plans to actively expand into the gas industry market, local power companies, overseas power markets, and other innovative business markets to reduce reliance on a few major clients [6]. - Custom software development revenue constitutes over 80% of total revenue, while operation and maintenance service revenue accounts for approximately 10% [37]. - The company is actively expanding into new markets, including local and overseas electricity markets, with positive progress reported [46]. - The company currently relies heavily on a few major clients, with over 80% of its main business revenue coming from customized software development for State Grid and Southern Grid, which poses a risk if these clients alter their investment plans [94]. - The company plans to actively explore new markets, including local power companies, overseas electricity markets, and the gas industry, to reduce dependency on a limited number of clients [95]. Financial Performance - The company's operating revenue for 2017 was approximately ¥782.94 million, representing a 4.46% increase compared to ¥749.51 million in 2016 [29]. - The net profit attributable to shareholders for 2017 was approximately ¥139.14 million, an increase of 13.97% from ¥122.09 million in the previous year [29]. - The net profit after deducting non-recurring gains and losses was approximately ¥110.71 million, up 14.06% from ¥97.06 million in 2016 [29]. - The total assets at the end of 2017 reached approximately ¥1.65 billion, a 47.80% increase from ¥1.11 billion at the end of 2016 [29]. - The net assets attributable to shareholders increased by 43.07% to approximately ¥1.16 billion from ¥809.60 million in 2016 [29]. - The basic earnings per share for 2017 was ¥0.37, an increase of 8.82% compared to ¥0.34 in 2016 [29]. - The company reported a weighted average return on equity of 14.70% for 2017, down from 15.40% in the previous year [29]. - The company achieved total operating revenue of CNY 782,935,041.04, representing a year-on-year growth of 4.46% [46]. - The net profit attributable to shareholders reached CNY 139,136,836.46, reflecting a year-on-year increase of 13.97% [46]. - The company reported a net profit of approximately ¥122.09 million for the year 2017, reflecting a significant increase compared to previous periods [113]. Research and Development - R&D expenses have consistently accounted for around 10% of total revenue, supporting the company's reputation for technological leadership and business innovation [10]. - The company maintains a consistent R&D investment of around 10% of total revenue, ensuring its leading position in the public utility information technology solutions sector [43]. - The company is committed to increasing its research and development investments to maintain its leading position in technology and services within the electricity sector [95]. - Research and development investments increased by 10%, totaling 200 million, aimed at advancing technology in financial services [181]. - The company plans to maintain a research and development expenditure of approximately 10% of total revenue annually to support innovation and maintain industry leadership [96]. Cash Flow and Assets - The net cash flow from operating activities for 2017 was approximately ¥48.71 million, a decrease of 9.21% from ¥53.66 million in 2016 [29]. - Cash and cash equivalents increased by 129.33% compared to the beginning of the period, mainly due to funds raised from public stock issuance and equity incentives [40]. - The company achieved a positive operating cash flow of ¥48,710,000 during the reporting period, continuing to strengthen accounts receivable collection efforts [47]. - The company reported a total of 61.365 billion in financial assets, with a weighted average return of 4.70% [147]. - The total number of shares increased from 360 million to 416.76 million after the issuance of 45 million new shares during the IPO on August 1, 2017 [149]. Strategic Initiatives and Future Outlook - The company aims to enhance its core business through technological and business innovation, while also focusing on expanding its innovative business segments to capture new growth opportunities in 2018 [93]. - The company is focused on optimizing its business structure and improving employee productivity to mitigate rising labor costs [97]. - The company is exploring strategic acquisitions to bolster its market position, with discussions ongoing for potential targets in the fintech sector [181]. - The company is focusing on market expansion, targeting Southeast Asia with plans to enter three new countries by the end of 2024 [181]. - The company emphasized its commitment to sustainability, with plans to reduce carbon emissions by 30% over the next five years [181]. Governance and Compliance - The company has not reported any major litigation or arbitration matters during the reporting period [117]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period [111]. - The company has not faced any penalties from securities regulatory authorities in the past three years [186]. - The company emphasizes compliance with laws and regulations to protect shareholder rights and enhance employee welfare [140]. - The board of directors consists of 10 members, including 4 independent directors, ensuring compliance with governance regulations [199]. Employee and Management - The total number of employees in the company is 1,792, with 1,752 in the parent company and 40 in major subsidiaries [190]. - The company has established a compensation incentive system that aligns responsibility with benefits, capability with value, risk with return, and performance with income [192]. - The total remuneration for directors and senior management during the reporting period amounted to CNY 3.75 million [187]. - The company has a structured decision-making process for determining the remuneration of directors and senior management [186]. - The company has maintained a stable management structure, with no significant changes in executive positions reported [173].

Financial Performance - Operating revenue for the current period was CNY 84,255,151.91, a slight increase of 0.61% year-on-year[8] - Net profit attributable to shareholders was a loss of CNY 18,754,205.48, down 22.19% compared to the same period last year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 18,758,744.82, an increase of 9.07% year-on-year[8] - The weighted average return on net assets was -2.34%, a decrease of 6.15% compared to the same period last year[8] - Total operating revenue for the third quarter was CNY 84,255,151.91, compared to CNY 83,741,000.00 in the previous period[38] - Net profit for the period was a loss of CNY 19,483,466.18, compared to a loss of CNY 15,348,557.46 in the previous year[39] - The total operating revenue for the current period is CNY 211,586,801.58, a decrease of 4.0% compared to CNY 221,328,947.96 in the previous period[45] - The net profit for the current period is CNY -19,260,425.24, compared to CNY -69,966,565.44 in the previous period, indicating an improvement in performance[48] - Total comprehensive income for the current period is CNY -19,260,425.24, compared to CNY -69,966,565.44 in the previous period, indicating a significant reduction in losses[48] - Operating profit for the current period was -¥12,369,793.18, an improvement from -¥73,076,293.62 in the previous period[50] - Net profit for the current period was -¥13,467,419.81, compared to -¥64,964,562.24 in the previous period, indicating a significant reduction in losses[51] Assets and Liabilities - Total assets increased by 13.06% to CNY 1,258,387,645.40 compared to the end of the previous year[8] - The company's total assets reached CNY 1,316,991,519.18, up from CNY 1,159,186,068.75 at the beginning of the period[36] - Current liabilities totaled CNY 244,983,504.44, a decrease from CNY 274,389,934.20[36] - Cash and cash equivalents increased by 32.51% to ¥413,973,649.07 due to accelerated accounts receivable collection and fundraising[17] - Cash and cash equivalents rose to CNY 360,977,406.75 from CNY 257,206,353.19[34] - Accounts receivable decreased to CNY 414,335,467.81 from CNY 556,956,128.86[34] - Inventory rose by 148.07% to ¥205,259,360.91, attributed to increased investment in projects not meeting online conditions[17] - Accounts payable decreased by 45.78% to ¥56,192,931.61, due to increased payments for third-party procurement[17] - Prepayments rose by 141.36% to ¥28,112,575.88, driven by increased payments for third-party procurement[17] - Other receivables increased by 59.25% to ¥31,090,822.18, mainly due to increased bid guarantees[17] Investment and Financing - Long-term equity investments increased by 113.83% to ¥46,265,272.43, driven by profit growth from the joint venture Bandao Technology[17] - Investment income surged by 165.30% to ¥25,323,518.58, primarily due to increased profits from Bandao Technology[19] - The company reported an investment income of CNY 10,872,532.42, up from CNY 4,635,369.55 in the previous period[39] - Investment income for the current period is CNY 25,323,518.58, significantly higher than CNY 9,545,150.61 in the previous period, showing a growth of 165.5%[47] - Net cash flow from financing activities improved significantly by 858.52% to ¥200,679,300.00, reflecting the receipt of fundraising[20] - The company raised ¥200,679,300.00 from financing activities, contrasting with a cash outflow of -¥26,456,786.73 in the previous period[55] - The net cash flow from financing activities was 200,679,300.00 CNY, after deducting cash outflows of 26,456,786.73 CNY for dividend distribution and interest payments[57] Cash Flow - The company reported a net cash flow from operating activities of -CNY 91,916,227.56, a decrease of 33.58% year-on-year[8] - Cash flow from operating activities showed a net outflow of -¥91,916,227.56, an improvement from -¥138,395,795.65 in the previous period[54] - The net increase in cash and cash equivalents was ¥101,575,792.33, a 159.16% improvement due to faster accounts receivable collection and fundraising[20] - The ending balance of cash and cash equivalents was 360,977,406.75 CNY, up from 257,206,353.19 CNY at the beginning of the period[57] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 25,280[12] - The largest shareholder, Yue Qi Capital, holds 24.72% of the shares, totaling 100,096,560 shares[12] Cost Management - Total operating costs increased to CNY 116,251,270.49 from CNY 109,824,597.66 year-over-year[39] - The total operating costs for the current period amount to CNY 282,497,513.55, down from CNY 309,181,740.83, reflecting a reduction of 8.6%[45] - Sales expenses for the current period are CNY 46,012,931.59, a slight decrease from CNY 47,250,992.57, reflecting a cost control strategy[45] - The company experienced a decrease in management expenses from CNY 127,414,302.46 to CNY 117,006,365.55, a reduction of 8.5%[45] - The financial expenses for the current period are reported as CNY -3,417,774.91, showing a decrease compared to CNY -3,616,038.73 in the previous period[45] Goodwill and Other Assets - Goodwill increased by 32.64% to ¥31,208,835.09, resulting from the acquisition of a controlling subsidiary[17] Audit Information - The third quarter report was not audited[58]

Financial Performance - Total revenue for the first half of 2017 was CNY 127,331,649.67, a decrease of 7.45% compared to CNY 137,587,947.96 in the same period last year[20]. - Net profit attributable to shareholders was CNY 897,437.13, a significant increase of 101.64% from a loss of CNY 54,618,007.88 in the previous year[20]. - Net profit attributable to shareholders after deducting non-recurring gains and losses was CNY -20,797,853.34, improving by 62.55% from CNY -55,529,798.19 year-on-year[20]. - The net cash flow from operating activities was CNY -92,572,955.07, an improvement of 22.77% compared to CNY -119,859,504.57 in the previous year[20]. - Basic earnings per share were CNY 0.0025, a turnaround from CNY -0.1517 in the same period last year, reflecting an increase of 101.65%[20]. - The total operating costs were ¥72,038,734.25, down 10.27% year-on-year[49]. - The net profit after deducting non-recurring gains and losses was -¥20,797,853.34, a year-on-year increase of 62.55%[49]. - The company reported a projected cumulative net profit loss of approximately RMB 12 million for the period from the beginning of the year to the next reporting period, representing an increase of 82.85% compared to the previous year's loss of RMB 8 million[71]. - The basic earnings per share are expected to be RMB -0.0324, which is an increase of 83.33% compared to the previous year's RMB -0.0216[71]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,024,690,847.51, down 7.93% from CNY 1,112,997,987.03 at the end of the previous year[20]. - Total liabilities decreased to CNY 209,821,915.61 from CNY 303,393,084.94, reflecting a reduction of about 30.9%[131]. - The company's equity increased slightly to CNY 814,868,931.90 from CNY 809,604,902.09, an increase of approximately 0.3%[132]. - The total liabilities of the company were CNY 213,677,310.71, with total equity amounting to CNY 865,189,392.39 as of the end of the reporting period[136]. Cash Flow - Cash and cash equivalents decreased by 97.96 million, a decline of 31.36%, due to increased operational investments[34]. - Cash collection improved significantly, with a year-on-year increase of over 30%[50]. - Operating cash inflow for the current period was CNY 281,980,558.74, up from CNY 197,822,545.57 in the previous period, representing a growth of approximately 42.5%[147]. - Cash outflow from operating activities totaled CNY 374,553,513.81, compared to CNY 317,682,050.14 in the prior period, indicating an increase of about 17.9%[147]. - The ending cash and cash equivalents balance was CNY 214,435,036.57, compared to CNY 152,739,326.35 at the end of the previous period, reflecting an increase of approximately 40.4%[148]. Market Position and Strategy - The company is focused on the utility sector, providing information technology and services primarily in the electricity sector, with applications in various areas including energy management and customer service[27]. - The ongoing electricity reform is anticipated to create significant market opportunities, leading to increased competition and a greater reliance on information technology for operational efficiency[32]. - The company plans to expand into new markets, including the Southern Power Grid and overseas markets, to reduce reliance on the State Grid[73]. - The company has established a leading position in the power marketing system business over 20 years, executing projects for 12 regional power marketing systems across 26 provincial companies of the State Grid[36]. Research and Development - The company has over 150 technical and R&D personnel with more than 10 years of experience, contributing to a stable core team that enhances long-term competitiveness[37]. - The company is committed to increasing R&D investment to maintain its competitive edge in the power sector and related technologies[79]. - The company has developed a unique project lifecycle management system, enabling effective management of nearly 1,000 projects annually, focusing on revenue realization, quality assurance, and customer satisfaction[41]. Risks and Challenges - The company relies heavily on the State Grid Corporation, with over 80% of its revenue derived from this client, indicating a significant dependency risk[72]. - The company is facing risks from intensified industry competition, which could lead to a potential 50% decrease in operating profit compared to the previous year if competitive advantages are not maintained[79]. - The company is actively tracking and adapting to changes in industry policies to mitigate risks associated with potential regulatory adjustments[76]. Corporate Governance - The company did not distribute cash dividends or issue bonus shares during the reporting period[6]. - The half-year financial report was not audited, indicating a lack of external verification for the reported figures[86]. - The financial report was approved by the board on August 29, 2017, indicating the company's commitment to transparency and governance[167]. Intellectual Property - As of the end of the reporting period, the company holds 20 registered trademarks, 113 software copyrights, and 16 patents, reflecting its commitment to intellectual property development[45][46][47].