Financial Performance - Total revenue for the first half of 2019 was CNY 481,637,132.21, representing a 33.28% increase compared to CNY 361,367,760.32 in the same period last year[23] - Net profit attributable to shareholders was CNY 12,069,572.50, a decrease of 52.49% from CNY 25,403,116.07 year-on-year[23] - Net profit after deducting non-recurring gains and losses was CNY 5,479,684.39, down 72.39% from CNY 19,844,518.77 in the previous year[23] - Basic earnings per share were CNY 0.0554, down 52.53% from CNY 0.1167 in the same period last year[23] - Total revenue for the reporting period was 481,637,132.21 RMB, representing a 33.28% increase compared to the same period last year[64] - The company reported a significant decrease in cash and cash equivalents, down 13.86% to RMB 180,520,043.15, compared to RMB 308,262,871.34 in the previous year[73] - Investment income for the period was RMB 5,588,408.03, accounting for 38.61% of total profit[72] - The company reported a total of RMB 2,492,050.88 in other income, which accounted for 17.22% of total profit[72] Cash Flow and Assets - The net cash flow from operating activities was -CNY 64,649,965.54, a decline of 5.33% compared to -CNY 61,376,929.66 last year[23] - Total assets at the end of the reporting period were CNY 1,118,036,964.37, a decrease of 3.00% from CNY 1,152,633,188.67 at the end of the previous year[23] - The company reported a net cash flow from operating activities of -RMB 6,465.00, indicating challenges in cash generation relative to net profit[115] - Accounts receivable increased by 11.06% to RMB 505,079,978.08, representing 45.18% of total assets[73] Investments and R&D - The company has invested continuously in R&D, particularly in MES products, enhancing their productization level since 2012[45] - Research and development investment increased by 38.86% to 57,414,887.76 RMB, reflecting a commitment to innovation[64] - The company is investing in new technology development, allocating 50 million RMB for R&D in AI and machine learning[197] - The company has ongoing research and development expenditures of RMB 37,094,590.79, primarily for industrial internet technology[75] Market Position and Strategy - The company has established a strong market presence with notable clients including Huawei Technologies and Midea Group, enhancing its competitive edge in digital transformation services[39] - The overall market demand for digital solutions in enterprise-level markets has shown significant growth, presenting a broad market outlook for the company[34] - The company is actively engaged in research and development of new technologies, particularly in cloud applications and smart manufacturing[39] - The company is exploring potential mergers and acquisitions to enhance its market position[197] - A strategic partnership is being formed with a leading tech firm to leverage synergies in product development[197] Risks and Challenges - The company highlights risks including customer concentration, personnel turnover, and macroeconomic fluctuations[6] - The company has a high customer concentration risk, with stable relationships with major clients like Huawei and Midea Group, which helps mitigate potential revenue declines[111] - The company is actively expanding its client base to reduce customer concentration and enhance revenue sources[111] - The company plans to implement measures to control rising human resource costs as it continues to expand its workforce[113] Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares[6] - The company approved the revised 2018 Restricted Stock Incentive Plan, with 342.96 million shares granted to 340 eligible participants on July 18, 2018[132] - The company has a total of 342.96 million shares under the 2018 Restricted Stock Incentive Plan, with a focus on aligning employee interests with shareholder value[132] - The total number of common shareholders at the end of the reporting period was 12,513, with significant changes in shareholding among major shareholders[178] Operational Developments - The company is focusing on enhancing its project operation system to support sustainable growth and high-speed development[57] - The management is optimizing project delivery and financial processes through a comprehensive operational support platform[57] - The company has established a company-level research institute to strengthen internal management and technological innovation[46] - The company has a stable and professional management team with rich industry experience, contributing to its core competitive advantage[52]

Financial Performance - Total revenue for Q1 2019 was ¥206,435,106.83, representing a 33.17% increase compared to ¥155,013,296.72 in the same period last year[11] - Net profit attributable to shareholders was -¥321,415.87, a decrease of 103.30% from ¥9,743,916.36 in the previous year[11] - Basic and diluted earnings per share were both -¥0.0022, down 103.52% from ¥0.0625 in the previous year[11] - Operating revenue grew by 33.17%, driven by enhanced software implementation capabilities, high customer retention, and successful new customer acquisition[29] - Operating costs rose by 41.94%, attributed to the increase in business revenue, employee count, and salary levels[29] - Research and development expenses surged by 79.63%, reflecting increased investment in innovation[30] - The company reported a total profit of ¥277,264.40, down from ¥10,672,987.14 in the previous period[66] - The company’s operating profit was ¥246,200.39, a significant drop from ¥10,495,266.31 in the previous period[66] Cash Flow - The net cash flow from operating activities improved by 15.14%, amounting to -¥58,562,846.48 compared to -¥69,007,098.11 in the same period last year[11] - Operating cash inflow for the current period was CNY 211,764,250.21, up from CNY 126,645,854.43 in the previous period, representing a growth of approximately 67%[78] - Cash outflow for purchasing goods and services increased to CNY 59,701,053.28 from CNY 28,130,306.69, reflecting a rise of about 112%[78] - Cash inflow from investment activities totaled CNY 309,341,115.09, compared to CNY 286,860,627.42 in the previous period, indicating an increase of approximately 8%[80] - The net increase in cash and cash equivalents for the current period was CNY 66,483,759.90, compared to CNY 41,554,345.92 in the previous period, showing an increase of about 60%[80] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,135,491,887.59, a decrease of 1.49% from ¥1,152,633,188.67 at the end of the previous year[11] - The total liabilities as of March 31, 2019, were CNY 236,950,910.18, compared to CNY 267,214,293.44 at the end of 2018, indicating a reduction in liabilities[60] - The total current liabilities decreased to CNY 236,950,910.18 from CNY 267,214,293.44, indicating improved liquidity[60] - The company's total equity as of January 1, 2019, was ¥907,516,420.45, including minority interests of ¥44,645,680.50[93] Shareholder Information - The company reported a total of 9,762 common shareholders at the end of the reporting period[18] - The largest shareholder, Zhang Chengkang, held 16.41% of shares, with a total of 23,808,629 shares[18] - The company did not engage in any repurchase transactions during the reporting period[21] Other Financial Metrics - Non-recurring gains and losses totaled ¥2,770,621.23, after accounting for tax effects and minority interests[12] - Tax and surcharges increased by 32.44%, corresponding to the growth in business activities[29] - Other income for the current period was ¥1,552,339.53, compared to ¥1,283,023.07 in the previous period, reflecting an increase[63] - Investment income decreased to ¥1,631,115.09 from ¥1,860,627.42 in the previous period[63] - Tax expenses for the current period were ¥68,096.86, compared to ¥929,070.78 in the previous period, indicating a reduction[66] Prepayments and Receivables - Prepayments increased by 147.54%, mainly due to increased prepayments for software and hardware procurement, as well as the consolidation of prepayments related to the acquisition of Jingtong Technology[26] - Other receivables increased by 89.14%, mainly due to the rise in deposits and bid guarantees, as well as the consolidation of other receivables from the acquisition of Jingtong Technology[26] - Accounts receivable rose to CNY 408,126,601.57 from CNY 396,316,104.85, reflecting a growth in receivables[54] Compliance and Future Outlook - The company maintained strict adherence to its 2019 annual business plan without any changes during the reporting period[34] - The company has not yet audited the first quarter report for 2019, indicating potential for future adjustments[97]

Financial Performance - Total revenue for Q1 2019 was ¥206,435,106.83, representing a 33.17% increase compared to ¥155,013,296.72 in the same period last year[9]. - Net profit attributable to shareholders was -¥321,415.87, a decrease of 103.30% from ¥9,743,916.36 in the previous year[9]. - Basic and diluted earnings per share were both -¥0.0022, down 103.52% from ¥0.0625 in the previous year[9]. - Operating revenue increased by 33.17%, driven by enhanced software implementation capabilities, high customer retention, and successful new customer acquisition[28]. - Operating profit for the current period was ¥246,200.39, a decrease from ¥10,495,266.31 in the previous period, reflecting a decline of approximately 97.7%[64]. - Net profit for the current period was ¥345,361.26, compared to a net loss of ¥9,743,916.36 in the previous period, showing a turnaround in profitability[66]. - The total comprehensive income for the current period was ¥345,361.26, compared to a comprehensive loss of ¥9,743,916.36 in the previous period, indicating a significant recovery[66]. Cash Flow - Net cash flow from operating activities was -¥58,562,846.48, showing a 15.14% improvement from -¥69,007,098.11 in the same period last year[9]. - Operating cash inflow for the current period was CNY 211,764,250.21, compared to CNY 126,645,854.43 in the previous period, representing an increase of approximately 67%[76]. - Cash inflow from investment activities totaled CNY 309,341,115.09, compared to CNY 286,860,627.42 in the previous period, indicating a growth of about 8%[76]. - The net cash flow from investment activities was CNY 125,256,373.04, up from CNY 110,561,444.03 in the previous period, reflecting an increase of approximately 13%[79]. - Total cash outflow from operating activities was CNY 270,327,096.69, compared to CNY 195,652,952.54 in the previous period, representing an increase of approximately 38%[76]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,136,718,891.85, a decrease of 1.38% from ¥1,152,633,188.67 at the end of the previous year[9]. - The total liabilities amounted to CNY 226,124,462.75, a decrease from CNY 245,116,768.22 in the previous period, reflecting a reduction of approximately 7.7%[49]. - The total owner's equity reached CNY 909,367,424.84, compared to CNY 907,516,420.45 previously, indicating a slight increase of about 0.2%[51]. - The company's total liabilities included accounts payable and notes payable, which increased by 143.11% due to higher outsourcing payments and the consolidation of accounts payable from the acquisition of Jingtong Technology[26]. - Total current liabilities were CNY 236,950,910.18, a decrease from CNY 267,214,293.44, indicating a reduction of about 11.3%[58]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 9,762[16]. - The largest shareholder, Zhang Chengkang, held 16.41% of shares, amounting to 23,808,629 shares, with 6,318,000 shares pledged[16]. - The company did not engage in any repurchase transactions during the reporting period[19]. Research and Development - Research and development expenses increased by 79.63%, reflecting greater investment in innovation[29]. - Research and development expenses increased to ¥20,429,584.67 from ¥11,373,224.46, marking a rise of approximately 79.9%[61]. Other Financial Metrics - Non-recurring gains and losses totaled ¥2,770,621.23, after accounting for tax effects and minority interests[10]. - The company reported investment income of ¥1,631,115.09, down from ¥1,860,627.42 in the previous period, a decrease of about 12.3%[61]. - The increase in sales and management expenses indicates a strategic investment in operational capabilities to support future growth initiatives[61]. - The company plans to continue focusing on market expansion and new product development to drive future growth[61].

Financial Performance - The company achieved total operating revenue of CNY 909.4969 million, representing a year-on-year growth of 28.30%[9]. - The net profit attributable to shareholders of the listed company was CNY 113.5464 million, an increase of 12.41% compared to the previous year[9]. - The net cash flow from operating activities for 2018 was approximately ¥61.50 million, representing a significant increase of 91.67% compared to ¥32.09 million in 2017[26]. - The company's operating revenue for 2018 was approximately ¥1.15 billion, an increase of 28.30% compared to ¥909.50 million in 2017[26]. - The net profit attributable to shareholders for 2018 was approximately ¥113.55 million, up 12.41% from ¥101.01 million in 2017[26]. - The company reported a basic earnings per share of ¥0.79 for 2018, down 5.95% from ¥0.84 in 2017[26]. - The company reported a net profit attributable to shareholders for Q4 2018 of CNY 45,053,902.60, compared to CNY 43,089,337.96 in Q3 2018, indicating a positive trend[81]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of CNY 1.00 per 10 shares (including tax) and to increase capital reserves by 5 shares for every 10 shares held[6]. - The proposed cash dividend for 2018 is CNY 1.00 per 10 shares (including tax), with a total cash dividend amounting to CNY 14,512,100.00, representing 12.78% of the net profit[173][185]. - The cash dividend payout ratio for the current profit distribution is 100% of the total distributable profit[178]. - The company is committed to a stable profit distribution policy, aiming for cash dividends to be at least 20% of the distributable profit each year[165]. - The total distributable profit as of December 31, 2018, was CNY 193,117,496.43 after accounting for the legal surplus reserve and previous cash dividends[179]. - The company has maintained a consistent cash dividend policy, with no adjustments made during the reporting period[171]. Research and Development - The company has significantly increased its R&D investment in smart manufacturing and industrial internet sectors, enhancing product capabilities from management software to industrial software[9]. - The company’s R&D investment in 2018 amounted to ¥95,248,104.65, representing 10.47% of its operating revenue, a significant increase from 5.49% in 2017[107]. - The number of R&D personnel increased to 752 in 2018, accounting for 22.08% of the total workforce, up from 15.11% in 2017[107]. - The company has developed a comprehensive solution for smart manufacturing, integrating simulation design, workshop execution, and logistics management[39]. - The company completed the first phase of the S-MOM product development by June 30, 2018, marking significant progress in its R&D roadmap[108]. - The company capitalized 25.08% of its R&D expenses, amounting to ¥23,887,496.51, indicating a strategic shift towards capitalizing R&D expenditures[107]. Market Strategy and Expansion - The company is focusing on marketing system upgrades, business mergers and acquisitions, regional market expansion, and attracting top talent[9]. - The company completed the acquisition of 51% of Shanghai Jingtong Information Technology Co., enhancing its capabilities in SAP consulting services and generating significant business orders[69]. - The company plans to enhance its presence in the enterprise service sector through a combination of organic growth and external investments[77]. - The company aims to provide more efficient digital solutions to large and medium-sized enterprises, contributing to the real economy and maximizing shareholder value[10]. - The company has established new subsidiaries to expand its market presence and enhance its international brand influence[143]. Risk Factors - The company acknowledges several risk factors, including customer concentration risk and rising human resource costs, which may impact future performance[6]. - The top five customers contributed a total sales amount of CNY 484,700,570.80, accounting for 53.29% of the annual sales[99]. - In 2018, the company's revenue from the top five customers accounted for 53.29% of total sales, indicating a high customer concentration risk[155]. - The company's accounts receivable at the end of 2018 amounted to 457.23 million CNY, representing 50.27% of operating income, highlighting potential bad debt risks[160]. - The company acknowledges the risk of rising human resource costs due to industry competition and plans to control these costs while increasing main business revenue[157]. Corporate Governance and Management - The company emphasizes the importance of maintaining a strong management team to navigate the challenges and opportunities in the market[10]. - The company is committed to continuous improvement in corporate governance to seize the favorable opportunities presented by the current era[10]. - The company has fulfilled its commitment regarding share lock-up periods and has not encountered situations requiring further action[198]. - The company has implemented stock price stabilization measures, including a commitment to repurchase shares if the stock price falls below the audited net asset value per share for 20 consecutive trading days[193]. Investment and Financial Commitments - The company has committed to a minimum net profit of CNY 14 million, CNY 18.9 million, and CNY 25.515 million for the years 2018, 2019, and 2020, respectively[98]. - The company has completed its performance commitment for the year 2018, indicating no need for goodwill impairment[200]. - The company has established the "Guangdong Saiyi Information Industry Investment Center (Limited Partnership)" to accelerate industrial innovation and support enterprise transformation through capital investment[77]. - The total amount of raised funds used in the reporting period was ¥40,872,810.00, with no changes in the purpose of the raised funds[130].

Financial Performance - Operating revenue for the quarter reached ¥251,673,030.88, representing a growth of 44.56% year-on-year[9] - Net profit attributable to shareholders was ¥43,089,337.96, up 50.23% from the same period last year[9] - The net profit after deducting non-recurring gains and losses was ¥38,555,617.63, an increase of 44.08% year-on-year[9] - Basic earnings per share stood at ¥0.2992, reflecting a growth of 50.20% compared to the previous year[9] - The total profit for the current period was ¥51,424,404.48, which is a 73.8% increase from ¥29,588,517.59 in the previous period[61] - The company's operating revenue for the current period reached ¥198,263,398.11, an increase of 22.6% compared to ¥161,692,504.79 in the previous period[63] - Net profit attributable to the parent company was ¥43,089,337.96, up 50.5% from ¥28,682,363.35 in the same period last year[61] - The total comprehensive income for the current period was ¥46,037,443.68, compared to ¥28,682,363.35 in the previous period, reflecting a growth of 60.4%[67] - The total profit for the current period was ¥79,280,225.73, compared to ¥73,352,550.98 in the previous period, marking an increase of 8.0%[73] Assets and Liabilities - Total assets increased to ¥1,035,380,778.03, a rise of 16.77% compared to the end of the previous year[9] - The total liabilities increased to ¥181,444,036.72 from ¥122,199,069.81, representing a rise of 48.4%[46] - The company's total equity attributable to shareholders rose to ¥816,983,374.81 from ¥764,490,920.78, an increase of 6.9%[46] - Accounts receivable and notes receivable increased by 50.19% to ¥517,892,486.24 due to increased revenue and the acquisition of Jingtong Technology[23] - Inventory reached ¥1,172,884.22, a 100% increase attributed to the acquisition of Jingtong Technology[23] - Intangible assets increased by 1771.89% to ¥15,915,802.76 due to the valuation increase from the acquisition of Jingtong Technology[23] Cash Flow - The company reported a net cash flow from operating activities of -¥66,508,971.43, a decline of 196.49% year-on-year[9] - Cash inflow from operating activities was 457,942,566.28, down from 525,457,301.97 in the previous period, indicating a decline in operational performance[88] - Cash inflow from investment activities totaled 552,143,533.83, up from 522,206,789.79 in the previous period, reflecting a positive trend[84] - The net cash flow from investment activities was 17,208,760.93, a recovery from -280,040,632.85 in the previous period[84] - The net increase in cash and cash equivalents was -65,663,504.20, down from 154,823,403.58 in the previous period, indicating cash management challenges[86] Shareholder Information - The total number of shareholders at the end of the reporting period was 12,626[13] - The top shareholder, Zhang Chengkang, held 16.53% of the shares, amounting to 23,808,629 shares[13] Research and Development - Research and development expenses grew by 49.55% to ¥48,227,551.72, reflecting increased investment in R&D[24] - Research and development expenses increased significantly to ¥18,807,573.09, compared to ¥8,893,143.46 in the previous period, reflecting a growth of 111.5%[63] - Research and development expenses rose significantly to ¥44,828,879.78, up 58.7% from ¥28,248,071.13, indicating a strong focus on innovation[75] Incentive Plans - The company implemented a restricted stock incentive plan to attract and retain talent, approved by the board on June 2, 2018[26] - The company revised its restricted stock incentive plan, which was approved by the board on June 20, 2018[27] - The company approved the 2018 Restricted Stock Incentive Plan, granting 3.4296 million shares to 340 eligible participants on July 18, 2018[29] Financial Ratios - The weighted average return on equity was 5.54%, a decrease of 0.22% from the previous year[9] - The company's financial expenses showed a significant change, with a net financial expense of -¥2,701,399.04 compared to -¥193,761.86 in the previous period[63]

Financial Performance - Total revenue for the first half of 2018 was CNY 361,367,760.32, an increase of 11.93% compared to CNY 322,859,128.20 in the same period last year[19]. - Net profit attributable to shareholders decreased by 32.42% to CNY 25,403,116.07 from CNY 37,588,923.97 year-on-year[19]. - Net profit after deducting non-recurring gains and losses fell by 43.53% to CNY 19,844,518.77 compared to CNY 35,139,383.94 in the previous year[19]. - Basic earnings per share decreased by 32.41% to CNY 0.1764 from CNY 0.2610 year-on-year[19]. - The company reported a total profit of CNY 27,855,821.25, down 36.4% from CNY 43,764,033.39 in the first half of 2017[171]. - Operating profit decreased to CNY 26,339,690.41, down 37.7% from CNY 42,272,321.28 in the same period last year[171]. - The company reported a net cash flow from operating activities of -CNY 61,376,900, indicating challenges in cash generation despite positive net profit[98]. Cash Flow and Liquidity - The net cash flow from operating activities was negative at CNY -61,376,929.66, a decline of 191.77% from CNY 66,882,191.68 in the same period last year[19]. - The company reported a net cash flow from investment activities of ¥155,187,171.79, a significant recovery from a net outflow of ¥119,109.46 in the previous period, mainly due to the recovery of financial products and payments related to the acquisition of Jingtong Technology[59]. - The company reported a cash inflow from operating activities of CNY 323,656,329.06, down from CNY 384,228,783.32 in the previous year[178]. - The total cash and cash equivalents at the end of the period reached 305,556,732.38 CNY, up from 144,738,452.89 CNY at the end of the previous period[180]. Assets and Liabilities - Total assets increased by 15.85% to CNY 1,027,221,387.01 from CNY 886,689,990.59 at the end of the previous year[19]. - The total liabilities increased to CNY 219,322,089.38 from CNY 122,199,069.81, representing a growth of approximately 79.5%[163]. - The company’s total current liabilities increased to CNY 217,029,494.97 from CNY 122,199,069.81, a rise of approximately 77.6%[163]. - The company’s cash and cash equivalents totaled ¥308,262,871.34, accounting for 30.01% of total assets, reflecting a growth of 34.95% from the beginning of the year[33]. Investments and Acquisitions - The company invested ¥132,600,000.00 during the reporting period, a 100% increase compared to the previous year[71]. - The acquisition of 51% of Shanghai Jingtong Information Technology Co., Ltd. has enhanced the company's capabilities in SAP consulting services and generated significant client orders[52]. - The company has invested RMB 17,180 million in bank wealth management products, with an unexpired balance of RMB 7,580 million[84]. Research and Development - Research and development expenses surged by 107.09% to ¥41,348,529.51, reflecting increased investment in smart manufacturing and industrial internet[59]. - The company has established a research institute to enhance internal management and innovation, focusing on the integration of cloud computing, big data, and intelligent technologies in manufacturing[37]. - The company’s development expenditures reached ¥6,915,080.72 as of June 30, 2018, accounting for 0.67% of total assets, with a 100% increase from the beginning of the year due to capitalized investments in R&D[33]. Shareholder Information - The total share capital increased from 80,000,000 shares to 144,000,000 shares due to a capital reserve conversion plan, distributing a cash dividend of 2.00 CNY per 10 shares[138]. - Zhang Chengkang holds 16.53% of shares, totaling 23,808,629 shares, with a pledge of 6,318,000 shares[144]. - The total number of common shareholders at the end of the reporting period is 9,718[144]. Corporate Governance and Compliance - The company has not experienced any major litigation or arbitration matters during the reporting period[108]. - The company has not faced any penalties or rectification issues during the reporting period[111]. - The company is not classified as a key pollutant discharge unit by environmental protection authorities and complies with environmental regulations[133]. Market Position and Strategy - The company maintains a leading position in the ERP field, benefiting from years of industry accumulation and customer trust[49]. - The company has successfully provided digital transformation services to over 500 enterprise clients across manufacturing, retail, and service sectors, showcasing its competitive solutions[30]. - The company is focused on providing comprehensive information technology solutions, covering the entire lifecycle of enterprise information systems, which enhances its competitive edge in the market[35].

Financial Performance - Total revenue for Q1 2018 was ¥155,013,296.72, representing a 5.21% increase compared to ¥147,331,685.88 in the same period last year[8] - Net profit attributable to shareholders decreased by 35.77% to ¥9,743,916.36 from ¥15,170,165.72 year-on-year[8] - Net profit after deducting non-recurring gains and losses fell by 52.20% to ¥7,069,163.41 from ¥14,789,505.24 in the previous year[8] - Basic and diluted earnings per share decreased by 51.82% to ¥0.1218 from ¥0.2528 year-on-year[8] - Net profit decreased by 35.77%, primarily due to increased sales and management expenses[37] - The net profit for the current period is 9,740,431.92, a decrease from 10,838,499.10 in the previous period, reflecting a decline of approximately 10.1%[87] - The total profit for the current period is 10,669,502.70, compared to 12,961,591.65 previously, showing a decline of about 17.7%[84] Cash Flow - The net cash flow from operating activities was negative at -¥69,007,098.11, a decline of 353.47% compared to ¥27,224,758.18 in the same period last year[8] - Cash flow from operating activities decreased by 353.47%, mainly due to slower collection of accounts receivable[38] - The total cash outflow from operating activities was 195,652,952.54, compared to 179,782,965.19 in the previous period[92] - Cash inflow from sales of goods and services was 103,653,922.20, compared to 192,668,062.30 in the previous period[96] - The company recorded a cash inflow of 275,000,000.00 from investment recoveries, compared to 71,200,000.00 in the previous period[98] Assets and Liabilities - Total assets at the end of the reporting period were ¥873,453,178.00, down 1.49% from ¥886,689,990.59 at the end of the previous year[8] - Total current assets amounted to ¥844,432,345.48, a slight decrease from ¥857,117,791.25 at the beginning of the period[63] - Total liabilities decreased to ¥98,242,123.70 from ¥123,527,437.46, showing a reduction in financial obligations[74] - The total equity attributable to shareholders rose to ¥745,599,854.61 from ¥735,859,422.69, indicating a slight improvement in shareholder value[74] Shareholder Information - Total number of common shareholders at the end of the reporting period is 9,160[18] - The largest shareholder, Zhang Chengkang, holds 16.53% of shares, totaling 13,227,016 shares, with 3,510,000 shares pledged[18] - Other major shareholders include Midea Investment Management Co., Ltd. with 12.15% (9,720,000 shares) and Liu Weichao with 9.17% (7,337,400 shares) pledged[18] Expenses - Sales expenses rose by 67.66%, attributed to increased sales personnel and marketing activities[32] - Management expenses increased by 32.15%, mainly due to higher R&D costs[33] - The sales expenses have increased to 4,779,615.41 from 3,115,690.37, which is an increase of about 53.3%[84] Investments and Projects - The company has invested 1.326 billion RMB to acquire a 51% stake in Jingtong Technology, pending shareholder approval[44] - The enterprise management software implementation project has achieved a progress rate of 96.44%[49] - The industry solution project based on intelligent manufacturing and mobile applications has reached a progress rate of 52.40%[49] - The research institute construction project has a progress rate of 36.85%[49] Customer Concentration and Strategy - The company faced a high customer concentration risk, with the top five customers accounting for 66.78% of total sales in 2017, and the largest customer, Huawei Technologies, contributing 60.64%[10] - The company is actively expanding its customer base to reduce customer concentration risk and enhance revenue sources[10] - The company plans to enhance its marketing system, focusing on customer-centric strategies and integrating regional and product line sales[41] Financial Policies - The company has a cash dividend policy that mandates a minimum of 20% of the distributable profit to be distributed as cash dividends each year[52] - The company aims for cumulative cash distributions over three consecutive years to be no less than 30% of the average annual distributable profit during that period[52] - The company has not made any adjustments to its profit distribution policy during the reporting period[53] - The company has a commitment to maintain a stable and continuous profit distribution policy while considering sustainable development[51]

Financial Performance - The company's operating revenue for 2017 was CNY 708.90 million, representing a 15.85% increase compared to CNY 611.88 million in 2016[18]. - The net profit attributable to shareholders for 2017 was CNY 101.01 million, a 23.18% increase from CNY 81.99 million in 2016[18]. - The basic earnings per share for 2017 was CNY 1.52, up 10.95% from CNY 1.37 in 2016[18]. - Operating profit reached 111 million RMB, an increase of 27.66% compared to the previous year[57]. - The weighted average return on equity for 2017 was 22.62%, down from 36.47% in 2016[18]. - The company reported a total non-recurring gains and losses of CNY 6,358,255.43 in 2017, an increase of 28.2% compared to CNY 4,960,236.19 in 2016[24]. - The total operating revenue for 2017 reached ¥708,895,464.25, representing a year-on-year increase of 15.85% compared to ¥611,882,781.80 in 2016[74]. - Software implementation and development services accounted for ¥669,519,496.11, or 94.45% of total revenue, with a growth of 14.15% from the previous year[74]. Cash Flow and Assets - The net cash flow from operating activities decreased by 31.53% to CNY 32.09 million from CNY 46.87 million in 2016[18]. - The company reported a decline in cash flow from operating activities in the fourth quarter, with a net cash flow of -CNY 36.84 million[21]. - Cash and cash equivalents increased by 139.57% year-on-year due to funds raised from the company's IPO in 2017[43]. - Accounts receivable increased by 751.70% year-on-year as a result of business expansion[43]. - The company’s accounts receivable at the end of 2017 amounted to 339.30 million yuan, representing 47.86% of operating income, indicating a potential risk of bad debts[118]. - The total assets at the end of 2017 reached CNY 886.69 million, a significant increase of 116.10% from CNY 410.31 million at the end of 2016[18]. - The net assets attributable to shareholders increased by 187.56% to CNY 764.49 million from CNY 265.85 million in 2016[18]. Dividends and Profit Distribution - The company plans to distribute a cash dividend of CNY 2.00 per 10 shares, based on a total share capital of 80 million shares as of December 31, 2017[6]. - The cash dividend proposed is 2.00 yuan per 10 shares (including tax), with a total cash dividend amounting to 16,000,000 yuan, representing 15.84% of the net profit attributable to shareholders[137]. - The company emphasizes a cash dividend policy, aiming for at least 20% of the annual distributable profit to be distributed in cash[126]. - The cash dividend accounted for 100% of the total profit distribution for the reporting period[134]. - The company has maintained a cash dividend payout ratio of at least 20% in accordance with its profit distribution policy during its growth phase[131]. Market Position and Business Strategy - The company has successfully provided information technology services to over 500 enterprise clients across manufacturing, retail, and service industries[26]. - The main business segments include management software solutions, professional maintenance services, and related hardware and software sales[29]. - The company has established a strong market presence and reputation through extensive business practices and has maintained a consistent business model since its inception[41]. - The company’s product offerings include ERP, CRM, SRM, BI, MES, and mobile applications, catering to various enterprise needs[30]. - The company plans to acquire 51% of Shanghai Jingtong Information Technology Co., Ltd. for 132.6 million RMB, enhancing its capabilities in SAP digital core business consulting services[66][67]. - The company aims to strengthen brand building and increase brand exposure through more frequent market activities and participation in industry conferences[109]. - The company is focused on leveraging the opportunities presented by national policies to drive growth in the industrial internet sector[107]. Research and Development - The company has established a research institute to enhance internal management and innovation, as well as to strengthen technological innovation and core solution development[47]. - The company holds 3 invention patents, 2 utility model patents, and 52 software copyrights, showcasing its commitment to R&D[46]. - Research and development investment amounted to ¥38,939,770.25, which is 5.49% of total operating revenue, an increase from 5.02% in 2016[84]. - The number of R&D personnel increased to 412, representing 15.11% of the total workforce, up from 14.60% in 2016[84]. - The company is committed to continuous investment in R&D to enhance core technologies and solutions, thereby improving competitiveness[111]. Risks and Challenges - The company highlighted risks including customer concentration risk and rising human resource costs, which may impact future performance[6]. - The company faces risks related to rising human resource costs due to the increasing number of employees and wage levels in the software industry[117]. - The company acknowledges the risk of economic fluctuations affecting downstream industries, which could impact client demand for information technology services[121]. - The company is in a growth phase, leading to increased accounts receivable and cash flow discrepancies compared to net profit[88]. Shareholder Information - The total number of shareholders at the end of the reporting period was 12,145, an increase from 9,160 at the end of the previous month[192]. - Zhang Chengkang holds 16.40% of the shares, amounting to 13,122,000 shares, with no changes during the reporting period[192]. - The second largest shareholder, Foshan Midea Investment Management Co., Ltd., holds 12.15% with 9,720,000 shares[192]. - The company has no preferred shares outstanding during the reporting period[199]. - The controlling shareholders are all natural persons, including Zhang Chengkang, Liu Weichao, and Liu Guohua, all of whom are Chinese nationals[194][196]. IPO and Capital Structure - The company successfully listed on the Shenzhen Stock Exchange on August 3, 2017, becoming the 666th company on the Growth Enterprise Market[58]. - The company completed its initial public offering (IPO) by issuing 20 million shares at a price of 22.14 CNY per share, raising a total of 442.8 million CNY[188]. - The net proceeds from the IPO, after deducting related expenses, amounted to approximately 404.83 million CNY[189]. - After the IPO, the total number of shares increased from 60 million to 80 million, resulting in a dilution of earnings per share and net asset value per share[184]. - The company's net asset value per share post-IPO is reported at 9.56 CNY, compared to 4.43 CNY in the previous year[184].

Financial Performance - Operating revenue for the current period was CNY 174,089,981.37, a 4.86% increase year-on-year[8] - Net profit attributable to shareholders for the current period was CNY 28,682,363.35, a 5.10% increase year-on-year[8] - Basic earnings per share for the current period was CNY 0.4780, reflecting a 5.10% increase year-on-year[8] - The total operating revenue for the current period is CNY 161,692,504.79, compared to CNY 159,884,585.70 in the previous period, reflecting a growth of approximately 1.01%[48] - The net profit for the current period is CNY 26,614,548.93, an increase from CNY 25,215,977.26 in the previous period, representing a growth of about 5.54%[48] - The total profit for the current period is CNY 27,520,703.17, compared to CNY 26,920,742.59 in the previous period, showing an increase of about 2.23%[48] - Operating profit for the current period was ¥28,927,989.73, slightly higher than ¥28,427,204.37 from the previous period, indicating a growth of 1.8%[43] - Net profit for the current period was ¥56,496,749.89, representing a 8.8% increase compared to ¥53,032,694.68 in the previous period[61] Asset and Equity Growth - Total assets increased by 104.53% to CNY 839,216,893.75 compared to the end of the previous year[8] - Net assets attributable to shareholders increased by 174.81% to CNY 730,602,612.48 compared to the end of the previous year[8] - Total equity increased by 174.81% to ¥730,602,612.48, attributed to new share issuance and retained earnings growth[21] - The equity attributable to the parent company increased to ¥708,877,347.76 from ¥253,902,710.78, representing a growth of 179.5%[41] - Cash and cash equivalents increased by 162.16% to ¥249,976,207.51 due to new share issuance and improved collection efforts[21] - Cash and cash equivalents rose to ¥219,415,958.53 from ¥62,111,152.45, marking an increase of 253.5%[37] Cash Flow Analysis - Cash flow from operating activities decreased by 22.76% to CNY 68,927,610.80 year-to-date[8] - Cash flow from operating activities generated ¥68,927,610.80, down 22.8% from ¥89,238,125.48 in the previous period[67] - Cash flow from investment activities showed a net outflow of ¥280,040,632.85, worsening from a net outflow of ¥91,443,927.57 in the previous period[67] - Cash flow from financing activities resulted in a net inflow of ¥365,936,425.63, compared to a net outflow of ¥13,204,840.18 in the previous period[69] - The total cash inflow from financing activities amounted to $454.02 million, with $414.02 million from investment absorption and $40 million from bond issuance[73] - The net increase in cash and cash equivalents was $157.50 million, contrasting with a decrease of $23.01 million in the prior period[73] Shareholder Information - The company had a total of 13,585 common shareholders at the end of the reporting period[12] - The top shareholder, Zhang Chengkang, held 16.40% of the shares, totaling 13,122,000 shares[12] Expense and Cost Management - Total operating costs amounted to ¥145,973,008.24, up from ¥137,744,898.77, reflecting a rise of 5.4%[43] - Operating costs for the current period amount to CNY 109,294,084.35, which is an increase from CNY 108,034,051.83 in the previous period, reflecting a rise of approximately 1.17%[48] - Sales expenses grew by 31.76% to ¥16,433,818.82, due to increased sales staff and marketing activities[22] - The company reported a decrease in sales expenses to ¥12,561,631.58 from ¥9,843,979.80, indicating a 27.5% increase in sales efficiency[59] Investment Income - Investment income rose by 359.42% to ¥2,182,744.78, primarily from financial product returns[22] - The investment income for the current period is CNY 632,169.92, compared to CNY 151,179.46 in the previous period, indicating a substantial increase of approximately 318.73%[48] - Investment income rose to ¥1,673,616.01, compared to ¥421,850.66 in the previous period, marking a significant increase of 297.5%[61] Other Financial Metrics - The weighted average return on equity was 4.93%, down 7.11% from the previous year[8] - The company reported non-recurring gains and losses totaling CNY 4,298,596.05 for the year-to-date[9] - The deferred income increased significantly to ¥2,360,000.00 from ¥207,972.00, a rise of 1037.4%[41] - The company’s capital reserve grew to ¥497,106,734.53 from ¥112,280,319.44, an increase of 342.5%[36] - The company reported a financial expense of CNY -193,761.86 for the current period, a significant improvement compared to CNY 7,522.74 in the previous period[48] - The company received cash from sales of goods and services totaling ¥542,301,688.60, an increase from ¥472,646,495.40 in the previous period[64] Audit Information - The company did not undergo an audit for the third quarter report[74]

Financial Performance - The company reported a significant increase in revenue, achieving a total of 500 million RMB for the first half of 2017, representing a year-on-year growth of 25%[13] - Total revenue for the reporting period reached ¥322,859,128.20, an increase of 17.36% compared to ¥275,104,922.47 in the same period last year[23] - Net profit attributable to shareholders was ¥37,588,923.97, reflecting a growth of 28.95% from ¥29,149,112.85 year-on-year[23] - Basic earnings per share increased by 28.96% to ¥0.6265, up from ¥0.4858 in the same period last year[23] - The company achieved operating revenue of CNY 322,859,128.20, representing a year-on-year growth of 17.36%[63] - The net profit attributable to shareholders reached CNY 37,588,923.97, an increase of 28.95% compared to the same period last year[63] - The total operating revenue for the first half of 2017 was CNY 322,859,128.20, an increase of 17.5% compared to CNY 275,104,922.47 in the same period of 2016[158] - The total operating costs amounted to CNY 282,399,341.98, up from CNY 241,730,623.82, reflecting a growth of 16.8%[158] Cash Flow and Assets - Net cash flow from operating activities surged by 102.06% to ¥66,882,191.68, compared to ¥33,100,706.90 in the previous year[23] - As of June 30, 2017, cash and cash equivalents amounted to ¥144,937,749.49, representing 34.60% of total assets, with a 52% increase compared to the beginning of the year due to improved accounts receivable collection[49] - The company reported a net increase in cash and cash equivalents of ¥49,585,648.96, a rise of 30.48% from ¥38,002,753.82 in the previous year[73] - The company's cash and cash equivalents increased to ¥144,937,749.49 from ¥95,352,100.53, representing a growth of approximately 52%[148] - Accounts receivable decreased to ¥234,283,176.69 from ¥274,069,432.31, indicating a reduction of about 14.5%[148] - Total current assets rose to ¥389,702,583.25 from ¥379,284,224.49, showing an increase of approximately 2.4%[149] - Total assets amounted to ¥418,875,376.23, up from ¥410,310,858.19, reflecting a growth of about 2%[149] Research and Development - The company is investing 50 million RMB in R&D for new technologies, focusing on AI and big data analytics[13] - The company holds 2 invention patents, 2 utility model patents, and 51 software copyrights, showcasing its strong emphasis on research and development[52] - The establishment of a company-level research institute aims to enhance management and technological innovation, further strengthening the company's core technology competitiveness[53] - Research and development expenses rose by 40.46% to ¥19,966,155.76, compared to ¥14,214,544.97 in the previous year[73] Market Strategy and Expansion - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[13] - A strategic acquisition of a local tech firm is in progress, aimed at enhancing the company's technological capabilities and service offerings[13] - The company is focusing on enterprise-level information solutions, aiming to provide more diversified and intelligent products to help clients achieve business success[63] - The enterprise service market is expected to grow significantly, driven by cloud computing and big data, leading to increased investments in information technology by large and medium-sized enterprises[64] Customer and Client Relations - User data showed a total of 1 million active users on the platform, an increase of 15% compared to the previous year[13] - The company has successfully provided information technology services to over 300 clients across various industries, including notable companies like Huawei and Midea[31] - The company has a strong focus on customer service, leading to high customer loyalty and a solid foundation for future growth through ongoing development and maintenance needs[54] - The company signed contracts with major clients in supply chain collaboration, enhancing their warehousing and logistics management capabilities[67] Risks and Challenges - The management highlighted the importance of addressing risks such as customer concentration and market competition, which could impact future performance[5] - The company faces risks related to technological innovation, as it operates in a rapidly evolving industry, and it emphasizes continuous investment in research and development to meet market demands[99] - The company is exposed to market competition risks, as the software and information technology service industry has become increasingly competitive, necessitating timely adaptation to market changes[92] - The company has maintained a high customer concentration, with sales from the top five customers accounting for 79.36%, 83.11%, and 80.30% of revenue from 2014 to 2016, with Huawei Technologies being the largest customer, contributing 59.37%, 61.29%, and 70.28% respectively[90] Corporate Governance - The board of directors has confirmed that all members attended the meeting to review the report, ensuring transparency and accountability[4] - The company will not distribute cash dividends or issue bonus shares for the current fiscal year, opting to reinvest profits into growth initiatives[6] - The half-year financial report has not been audited[106] - The financial report was approved by the board on August 28, 2017, covering the period from January 1 to June 30, 2017[193] Shareholder Information - Total shareholders at the end of the reporting period reached 12, with significant shareholders including Zhang Chengkang holding 21.87% (13,122,000 shares) and Midea Investment Management holding 16.20% (9,720,000 shares)[133] - The company plans to issue 20 million shares at a price of 22.14 RMB per share, increasing total shares from 60 million to 80 million[127]