Financial Performance - The company's operating revenue for the first half of 2020 was ¥316,367,495.25, a decrease of 7.97% compared to ¥343,761,447.56 in the same period last year[24]. - The net profit attributable to shareholders was ¥85,591,589.61, down 7.53% from ¥92,556,724.92 in the previous year[24]. - The net profit after deducting non-recurring gains and losses was ¥73,269,475.45, representing an 18.76% decrease from ¥90,186,173.38 year-on-year[24]. - The net cash flow from operating activities was negative at ¥8,322,433.56, a significant decline of 105.93% compared to ¥140,252,380.68 in the same period last year[24]. - Basic earnings per share decreased by 16.00% to ¥0.21 from ¥0.25 in the previous year[24]. - The total assets at the end of the reporting period were ¥2,123,406,240.35, a slight decrease of 0.69% from ¥2,138,085,352.44 at the end of the previous year[24]. - The net assets attributable to shareholders increased by 2.10% to ¥1,734,150,402.93 from ¥1,698,560,063.32 at the end of the previous year[24]. - The weighted average return on net assets was 4.94%, down 2.66% from 7.60% in the previous year[24]. Investment and R&D - Research and development expenses accounted for 24.70% of operating revenue, amounting to ¥78,141,560.17, an increase of 3.46% compared to the previous year[63]. - The company plans to maintain a high proportion of R&D investment and increase the input of necessary software and hardware development tools and testing equipment to enhance R&D efficiency[96]. - The company aims to strengthen its core technology research and development, focusing on enterprise-level network communication products to adapt to industry demand changes[97]. - The company has increased investment in security detection and professional services to achieve comprehensive business coverage[35]. - The company plans to build a closed-loop network security product system, focusing on proactive detection and risk management[48]. Market and Industry Trends - The information security industry is rapidly growing due to increased demand for information security, supported by national policies and the advancement of information technology[38]. - The domestic information security industry is closely linked to customer security needs and national policies, with significant growth driven by laws such as the Cybersecurity Law of the People's Republic of China[38]. - The cloud security and IoT security markets are expected to become the next high-growth areas, driven by the rapid development of cloud computing and the increasing focus on IoT security[38]. - There is a strong demand for high-end security products as the new infrastructure construction, particularly in the 5G era, leads to a surge in network traffic and performance requirements[38]. - The market for multifunctional integrated security products is growing, as users seek solutions that simplify network management and reduce operational complexity[40]. - The rapid advancement of new technologies such as big data, cloud computing, and AI is reshaping the information security landscape, presenting both challenges and opportunities[38]. Sales and Marketing Strategy - The company emphasizes a dual sales approach, combining channel sales and direct sales, with a primary focus on channel sales[35]. - The company has established a strong customer base in various sectors, including government, telecommunications, finance, and energy, enhancing its market presence[48]. - The company has over 1,600 certified agents, forming a comprehensive marketing and service channel system[51]. - The company aims to strengthen its brand through product launches, industry forums, and media collaborations to increase brand awareness and influence in the domestic market[100]. - The company will enhance its marketing team by improving training, assessment, and management mechanisms, as well as attracting high-level marketing talent[100]. Risks and Challenges - The company faces risks as outlined in the report, which investors should be aware of[6]. - The company faces risks including technology innovation risks, market competition risks, and management risks associated with scale expansion[95]. Corporate Governance and Shareholding - The company has not engaged in any entrusted financial management, derivative investments, or entrusted loans during the reporting period[87][88][89]. - The company has not sold any significant assets or equity during the reporting period[90]. - The company has no major related party transactions during the reporting period[121]. - The total number of ordinary shareholders at the end of the reporting period is 14,753[155]. - The largest shareholder, Zheng Shusheng, holds 48.40% of the shares, totaling 193,611,490 shares[155]. - The company has a clear structure of shareholding with Zheng Shusheng as the controlling shareholder[155]. Operational Efficiency - The company is committed to optimizing its talent structure and improving corporate governance to enhance competitiveness[48]. - The company is focused on optimizing its organizational structure to enhance operational efficiency and strengthen competitive capabilities[100]. - The company will continue to improve its independent innovation mechanisms and enhance cooperation with key domestic universities to boost its innovation capabilities[96].

Financial Performance - The company's operating revenue for 2019 was ¥803,839,207.45, representing a 14.17% increase compared to ¥704,055,616.57 in 2018[21]. - The net profit attributable to shareholders for 2019 was ¥252,468,772.17, a 25.60% increase from ¥201,006,901.39 in 2018[21]. - The net profit after deducting non-recurring gains and losses was ¥234,133,546.37, up 19.81% from ¥195,422,198.76 in 2018[21]. - The net cash flow from operating activities increased by 44.24% to ¥320,863,718.41 from ¥222,449,524.17 in 2018[21]. - Basic earnings per share for 2019 were ¥0.65, a 16.07% increase from ¥0.56 in 2018[21]. - Total assets at the end of 2019 reached ¥2,138,085,352.44, a 57.78% increase from ¥1,355,133,612.95 at the end of 2018[21]. - The net assets attributable to shareholders increased by 64.38% to ¥1,698,560,063.32 from ¥1,033,300,291.15 at the end of 2018[21]. - The weighted average return on equity for 2019 was 17.60%, down from 21.55% in 2018, reflecting a decrease of 3.95%[21]. Cash Dividend Policy - The company plans to distribute a cash dividend of ¥1.25 per 10 shares, totaling approximately ¥50 million based on 400,010,000 shares[5]. - The company has committed to a cash dividend policy, ensuring that at least 15% of the annual distributable profit is distributed as cash dividends[138]. - In mature stages without significant capital expenditure, the cash dividend proportion should be at least 80% of the distributable profit; if there are major expenditures, it should be at least 40%[139]. - The company will prioritize cash dividends, with a minimum annual cash distribution of 15% of the distributable profit, while considering potential stock dividends if profits grow rapidly[146]. - The cash dividend payout ratio for 2019 was 100% of the total profit distribution amount[149]. - The company’s total share capital as of the dividend distribution was 400,010,000 shares[149]. - The cash dividend for 2019 was fully paid out, with no other forms of cash distribution such as share buybacks[152]. - The company’s board of directors emphasized the importance of returning value to shareholders while ensuring the company's long-term operational stability[149]. Market and Product Development - The company has launched a series of security platforms and detection products, including a big data platform for network security threat perception and a risk control platform for network security[34]. - The company focuses on enterprise-level network communication products, including network security, application delivery, and basic network products, with a commitment to continuous optimization and enhancement of existing products and services[34]. - The company is focusing on expanding its capabilities in security monitoring and professional services, with ongoing investments in new technology platforms[51]. - The company has been recognized as a key player in national cybersecurity initiatives, providing technical support for major international conferences[40]. - The company aims to enhance its core competitiveness by expanding its product offerings and strengthening brand presence in the enterprise network communication sector[121]. Research and Development - R&D expenses accounted for 20.40% of operating revenue, emphasizing the company's commitment to innovation and technology[51]. - The company has received over 290 new invention patents during the reporting period, with a total of over 480 authorized patents[44]. - The company is committed to continuous technological innovation and R&D investment to meet evolving user demands in the enterprise network communication field[121]. - The company has committed to addressing technology innovation risks by investing in core technology research and development[126]. Shareholder Commitments and Governance - The company has reported a commitment from major shareholders to not transfer or manage their shares for 36 months post-IPO, ensuring stability in shareholding[156]. - Major shareholders are restricted to reducing their holdings by no more than 20% of their initial share count in the first two years post-lockup expiration[159]. - The company has established a policy that any share reduction must comply with relevant laws and regulations, ensuring adherence to corporate governance standards[159]. - The company will ensure that independent directors fulfill their responsibilities in the decision-making process for profit distribution[144]. - The company will communicate with shareholders, especially minority shareholders, to gather opinions before finalizing dividend proposals[144]. Financial Stability and Risk Management - The company has outlined potential risks and corresponding countermeasures in its future development outlook section[5]. - The company recognizes the risk of policy changes affecting its status as a key software enterprise or high-tech enterprise[126]. - The company is focused on optimizing its organizational structure to enhance operational efficiency and adaptability[132]. - The company faces intense market competition, particularly in the mid-to-high-end market against foreign competitors[126]. Investment and Growth Strategy - The company plans to invest in developing a closed-loop network security product system, focusing on proactive threat detection and risk management[122]. - The company has committed to enhancing asset quality and increasing sales revenue to offset the potential dilution of immediate returns post-IPO[192]. - The company plans to accelerate the investment pace of fundraising projects to improve the efficiency of fund usage and achieve expected benefits sooner[192]. - The company aims to enhance shareholder returns by implementing a three-year dividend plan post-IPO[192].

Financial Performance - Total revenue for Q1 2020 was ¥138,062,374.90, a decrease of 14.85% compared to ¥162,135,633.83 in the same period last year[9] - Net profit attributable to shareholders was ¥39,646,490.96, down 15.54% from ¥46,938,609.68 year-on-year[9] - Net profit excluding non-recurring gains and losses was ¥36,867,242.30, representing a 20.89% decline from ¥46,603,179.10 in the previous year[9] - Basic earnings per share decreased by 24.00% to ¥0.0991 from ¥0.1304 year-on-year[9] - The company's operating revenue for Q1 2020 was 138.06 million, a year-on-year decrease of 14.85%[20] - The net profit attributable to shareholders for Q1 2020 was 39.65 million, down 15.54% year-on-year[23] - Operating profit decreased to ¥43,340,835.24, down 28.8% from ¥60,926,597.25 year-over-year[76] - Net profit for the current period was ¥40,846,053.14, representing a decline of 27.6% compared to ¥56,367,662.04 in the previous period[79] - The total comprehensive income for the current period was ¥40,846,053.14, down 27.6% from ¥56,367,662.04 in the previous period[79] Cash Flow and Liquidity - Net cash flow from operating activities was negative at ¥1,070,898.19, a significant drop of 101.51% compared to ¥70,763,819.77 in the same period last year[9] - Cash received from operating activities increased by 57.30% to 24.01 million, driven by higher interest income[19] - The cash flow from operating activities showed a significant improvement, indicating a positive trend in liquidity management[66] - The net cash flow from operating activities was 4,021,029.98 CNY, a significant decrease of 94.85% compared to 77,974,999.33 CNY in the previous period[87] - Total cash inflow from operating activities was 178,520,865.92 CNY, down 23.83% from 234,190,372.78 CNY in the prior period[87] - Cash outflow from operating activities increased to 174,499,835.94 CNY, up 11.66% from 156,215,373.45 CNY in the previous period[87] - The ending balance of cash and cash equivalents was 1,628,909,357.20 CNY, an increase from 1,053,933,105.52 CNY in the prior period[90] Assets and Liabilities - Total assets at the end of the reporting period were ¥2,143,223,171.43, a slight increase of 0.24% from ¥2,138,085,352.44 at the end of the previous year[9] - Total liabilities decreased to CNY 405,016,617.15 from CNY 439,525,289.12, a reduction of approximately 7.85%[53] - The company's total assets as of March 31, 2020, were CNY 2,143,223,171.43, compared to CNY 2,138,085,352.44 at the end of 2019, showing a slight increase of about 0.15%[56] - Non-current liabilities rose to CNY 48,718,881.99, up from CNY 24,417,551.06 in the prior period[63] Research and Development - The company added 48 new patents during the reporting period, indicating ongoing investment in R&D[23] - The company plans to enhance its R&D capabilities and service capacity in the enterprise-level network communication sector[23] - Research and development expenses for the quarter were CNY 36,919,375.03, compared to CNY 34,916,039.94 in the previous period, reflecting a growth of 5.73%[66] - Research and development expenses increased to ¥30,535,293.53, up from ¥29,229,211.97, indicating a focus on innovation[73] - The company is committed to enhancing its R&D capabilities and establishing a stable talent development mechanism to foster a culture that respects knowledge and talent[29] Market and Competition - The company faces risks related to technology innovation, market competition, and management during its expansion[23] - The company has established 27 offices nationwide, creating a comprehensive marketing and service system to enhance market share in a competitive environment[28] - The company aims to improve existing customer experience and satisfaction through enhanced service quality and regular user inspections[28] - The company plans to strengthen brand promotion through product launches, industry forums, and media collaborations to enhance brand awareness[29] Financial Management - Financial expenses increased by 47.23% to -18.98 million, primarily due to increased interest income[19] - The company reported a financial expense of -¥18,381,211.09, which includes interest income of ¥18,757,356.69, showing a net positive financial position[73] - The company reported no issues with the use of raised funds or any non-compliance with external guarantees during the reporting period[42][43] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 11,629[12] - Net assets attributable to shareholders increased by 2.33% to ¥1,738,206,554.28 from ¥1,698,560,063.32 at the end of the previous year[9] - The total equity attributable to shareholders increased to CNY 1,738,206,554.28 from CNY 1,698,560,063.32, reflecting a growth of approximately 2.34%[56]

Financial Performance - Operating revenue for the reporting period was ¥198,549,767.66, representing a year-on-year increase of 14.09%[9] - Net profit attributable to shareholders of the listed company was ¥65,002,041.74, up 16.62% compared to the same period last year[9] - Basic earnings per share for the reporting period was ¥0.16, an increase of 6.67% year-on-year[9] - The company's total operating revenue for the current period reached ¥198,549,767.66, an increase of 14.2% compared to ¥174,030,870.64 in the previous period[63] - Net profit for the current period was ¥65,002,041.74, up 16.4% from ¥55,737,000.62 in the previous period[66] - Operating profit for the current period was ¥86,715,552.14, up 31.3% from ¥65,990,333.80 in the previous period[75] - Net profit for the current period was ¥79,689,255.10, representing a 30.1% increase from ¥61,278,046.51 in the previous period[75] - The total comprehensive income for the current period was ¥79,689,255.10, compared to ¥61,278,046.51 in the previous period, reflecting overall growth[78] - The company's total revenue for the year-to-date period was ¥542,311,215.22, up from ¥480,060,317.84 in the previous year, showing strong annual growth[82] - The net profit margin for the current period stands at approximately 40.2%, compared to 35.2% in the previous period, indicating improved profitability[75] Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,965,100,866.84, an increase of 45.01% compared to the previous year[9] - Total current assets increased to ¥1,900,916,187.16 as of September 30, 2019, up from ¥1,314,822,765.95 on December 31, 2018, representing a growth of approximately 44.4%[43] - Total non-current assets reached ¥64,184,679.68, compared to ¥40,310,847.00 in the previous year, indicating an increase of approximately 59.3%[46] - Total liabilities reached ¥361,450,809.03, compared to ¥321,833,321.80, reflecting an increase of about 12.3%[49] - Total current liabilities increased to ¥348,373,333.65 from ¥309,770,179.88, an increase of approximately 12.4%[49] - Total liabilities increased to ¥349,748,886.85, compared to ¥313,627,762.90 in the previous period, reflecting a growth of 11.5%[62] - The total amount of liabilities and equity reached ¥1,991,078,779.60, up from ¥1,347,551,310.11 in the previous period, reflecting a growth of 47.7%[62] Shareholder Information - Net assets attributable to shareholders of the listed company amounted to ¥1,603,650,057.81, reflecting a growth of 55.20% year-on-year[9] - The total number of ordinary shareholders at the end of the reporting period was 20,225[14] - Major shareholder Zheng Shusheng held 48.40% of the shares, totaling 193,611,490 shares[18] - Shareholders' equity rose to ¥1,603,650,057.81 from ¥1,033,300,291.15, marking an increase of approximately 55%[52] Cash Flow and Investments - Cash flow from operating activities for the year-to-date was ¥236,503,330.07, an increase of 36.94% compared to the same period last year[9] - The company's net cash flow from operating activities increased by 36.94% to CNY 236,503,330.07 from CNY 172,704,907.77 year-on-year[33] - The net increase in cash and cash equivalents was CNY 620,734,664.28, a 285.19% rise compared to CNY 161,150,439.45 in the previous year[33] - Total cash and cash equivalents at the end of the period reached 1,594,442,098.19 CNY, up from 943,471,686.97 CNY in the previous period, indicating a significant increase of about 68.7%[110] - The cash inflow from operating activities totaled 830,920,182.98 CNY, compared to 777,870,987.65 CNY in the previous period, showing an increase of approximately 6.8%[107] - Cash outflow for investment activities totaled 71,320,953.21 CNY, compared to 9,585,138.09 CNY in the previous period, reflecting a substantial increase in investment spending[107] Expenses - Management expenses rose by 37.66% to CNY 23,307,216.67, mainly due to increased employee costs and expenses related to the public listing[33] - The company’s income tax expenses increased by 44.28% to CNY 16,514,803.44, reflecting a rise in total profit[33] - The company reported a total operating cost of ¥141,676,916.35, which is an increase of 6.4% from ¥133,518,676.80 in the previous period[63] - The company’s sales expenses rose to ¥52,339,433.38, an increase of 20.1% from ¥43,591,991.28 in the previous period[63] - The company’s tax expenses increased to ¥7,036,948.09 from ¥5,483,379.94, reflecting higher profitability[75] Research and Development - Research and development expenses for the current period were ¥44,706,292.17, up 17.5% from ¥38,115,398.52 in the previous period[63] - Research and development expenses increased to ¥37,125,654.08, up from ¥35,267,356.86, indicating a focus on innovation[75] - Research and development expenses decreased to ¥100,555,783.15 from ¥114,617,404.33, a reduction of about 12.29%[91]

Financial Performance - Total revenue for the first half of 2019 was CNY 343,761,447.56, representing a 12.33% increase compared to CNY 306,029,447.20 in the same period last year[25]. - Net profit attributable to shareholders was CNY 92,556,724.92, up 20.33% from CNY 76,916,115.96 year-on-year[25]. - Net cash flow from operating activities increased by 58.53% to CNY 140,252,380.68, compared to CNY 88,469,332.10 in the previous year[25]. - Basic earnings per share rose to CNY 0.25, a 19.05% increase from CNY 0.21 in the same period last year[25]. - The company reported a diluted earnings per share of CNY 0.25, consistent with the basic earnings per share[25]. - The company achieved operating revenue of RMB 343,761,447.56, representing a year-on-year growth of 12.33%[74]. - Net profit attributable to shareholders reached RMB 92,556,724.92, with a year-on-year increase of 20.33%[74]. Assets and Liabilities - Total assets at the end of the reporting period reached CNY 1,877,072,511.34, marking a 38.52% increase from CNY 1,355,133,612.95 at the end of the previous year[25]. - Net assets attributable to shareholders increased by 48.91% to CNY 1,538,648,016.07, compared to CNY 1,033,300,291.15 at the end of the previous year[25]. - The total share capital as of the last trading day before the report was 400,010,000 shares[25]. - The company reported a decrease in inventory to ¥162,286,182.58, which is 8.65% of total assets, down 5.78% year-over-year[87]. - Total assets increased significantly, with cash and cash equivalents at ¥1,562,689,244.00, representing 83.25% of total assets, up 9.20% from the previous year[87]. Research and Development - Research and development expenses amounted to RMB 75,526,461.02, a decrease of 8.31% compared to the previous year[79]. - The company aims to enhance its core competitiveness by increasing R&D investment and developing innovative products that meet user needs[62]. - The company plans to maintain a high R&D investment ratio and strengthen its core R&D team by recruiting top-tier software, hardware, and testing engineers[122]. - The company is focusing on developing enterprise-level network communication products and enhancing its core technology research[122]. Market Strategy and Growth - The company focuses on enterprise-level network communication, providing network security, application delivery, and basic network products, with a strong emphasis on self-developed technologies and solutions[36]. - The company employs a combined sales strategy of channel and direct sales, with a focus on market-driven product development through collaboration between market and R&D teams[39]. - The company plans to launch new security products and solutions tailored to various industries, including public security, healthcare, and energy[64]. - The company plans to focus on expanding its market presence in key sectors such as public security, healthcare, and finance[74]. - The company has established 27 offices nationwide to strengthen its marketing and service network, aiming to increase market share[64]. Industry Trends - The information security industry is experiencing rapid growth driven by increasing security demands, national policy support, and the need for domestic alternatives in network security[44][48]. - The cloud security and IoT security markets are expected to become significant growth points due to the increasing security risks associated with cloud computing and the rapid development of IoT technologies[50]. - The application delivery market is projected to continue its rapid development, driven by the need for improved application performance and security[51]. - The demand for high-end products is rapidly increasing, indicating a shift in user preferences towards more sophisticated solutions[53]. - The overall solution capability is becoming increasingly important, with users expecting comprehensive security solutions to reduce management complexity[54]. Corporate Governance and Compliance - The company has implemented measures to enhance internal governance and improve operational efficiency through organizational structure adjustments[128]. - The company has no significant litigation or arbitration matters during the reporting period[138]. - The company has not undergone any penalties or rectification during the reporting period[143]. - The financial report for the first half of 2019 was not audited[200]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 22,807[175]. - The largest shareholder, Zheng Shusheng, holds 48.40% of the shares, totaling 193,611,490 shares[175]. - The company reported a total share capital of 400.01 million shares after the initial public offering, increasing from 360 million shares[170]. - The company did not engage in any major related party transactions during the reporting period[145]. Future Outlook - The company anticipates that intelligent threat perception will become a key direction in security construction, integrating big data analysis and threat intelligence[49]. - The implementation of the Cybersecurity Law in China has created a favorable policy environment, driving growth in the cybersecurity industry[55]. - The company aims to improve existing customer experience and satisfaction through enhanced service quality and regular user inspections[123].

Financial Performance - Total revenue for Q1 2019 was ¥162,135,633.83, an increase of 14.48% compared to ¥141,628,726.41 in the same period last year[9] - Net profit attributable to shareholders was ¥46,938,609.68, representing a growth of 15.81% from ¥40,530,427.39 year-on-year[9] - Basic earnings per share for the period was ¥0.1304, up 15.81% from ¥0.1126 in the same quarter last year[9] - Operating profit for the same period was CNY 51.42 million, up 17.79% year-on-year[24] - The company's sales revenue increased by 35.39% to CNY 205.05 million, driven by higher sales collections[24] - Net profit for the period reached CNY 46,938,609.68, representing a 15.9% increase from CNY 40,530,427.39 in the same period last year[59] - The net profit for the current period is 56,367,662.04, an increase of 33.5% compared to 42,197,167.26 from the previous period[70] - The total operating income for the current period is 60,760,397.25, up from 45,310,537.99, reflecting a growth of 34.1%[70] Cash Flow - Net cash flow from operating activities reached ¥70,763,819.77, a significant increase of 426.15% compared to -¥21,696,523.27 in the previous year[9] - Cash flow from operating activities generated a net amount of 70,763,819.77, a significant improvement from a net outflow of -21,696,523.27 in the previous period[71] - Total cash inflow from operating activities reached $234,190,372.78, compared to $177,647,449.62 in the prior period, reflecting a growth of approximately 32%[82] - Cash outflow from operating activities decreased to $156,215,373.45 from $197,974,438.16, showing a reduction of about 21%[82] - The cash inflow from operating activities totaled 237,649,042.16, compared to 177,709,804.99 in the previous period, marking an increase of 33.8%[74] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,431,623,157.04, reflecting a 5.64% increase from ¥1,355,133,612.95 at the end of the previous year[9] - Total current assets increased to CNY 1,391,777,585.91 from CNY 1,314,822,765.95, representing a growth of approximately 5.15% year-over-year[39] - Total liabilities increased to CNY 351,384,256.21 from CNY 321,833,321.80, marking an increase of about 9.19%[42] - Owner's equity rose to CNY 1,080,238,900.83 from CNY 1,033,300,291.15, reflecting an increase of approximately 4.54%[45] - The total liabilities increased to CNY 341,342,002.22 from CNY 313,627,762.90, marking a rise of 8.8%[55] - The total equity increased to CNY 1,090,291,209.25 from CNY 1,033,923,547.21, reflecting a growth of 5.4%[55] Research and Development - The company added 37 new patents during the reporting period, enhancing its core technology capabilities[24] - Research and development expenses were CNY 34,916,039.94, a decrease of 9.5% compared to CNY 38,378,913.37 in the previous year[56] - The company plans to strengthen its R&D investments and improve its organizational structure to adapt to market demands[27] Market and Competition - The company faced risks related to technological innovation and market competition, which could impact future product development and market positioning[25] - The company plans to expand its market presence and invest in new product development to drive future growth[62] Shareholder Information - The largest shareholder, Zheng Shusheng, holds 53.78% of the shares, with the top ten shareholders collectively holding significant stakes[14] - The company did not engage in any repurchase transactions among the top ten shareholders during the reporting period[17]