证券代码：300799 证券简称：左江科技 公告编号：2023-023 北京左江科技股份有限公司 关于举行 2022 年度业绩说明会的公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记 载、误导性陈述或重大遗漏。 北京左江科技股份有限公司（以下简称"公司"）《2022 年年度报告》及摘要已于 2023 年 4 月 28 日刊登于中国证监会指定信息披露网站巨潮资讯网 （http://www.cninfo.com.cn）。 为便于广大投资者深入了解公司生产经营、发展战略等情况，进一步加强与投资者 的沟通，公司定于 2023 年 5 月 12 日（星期五）下午 15:00-17:00 举行 2022 年度网上 业绩说明会。本次年度业绩说明会将采用网络远程的方式举行，投资者可登陆深圳证券 交易所"互动易"平台（http://irm.cninfo.com.cn），进入"云访谈"栏目参与本次 业绩说明会。 出席本次说明会的人员有：董事长张军女士，董事、总经理何朝晖先生，董事会秘 书孙光来先生，财务总监周乐午先生，独立董事程勇先生，保荐代表人赵亮先生。 为充分尊重投资者、提升交流的针对性，现就公司 ...

Financial Performance - The company's audited net profit for 2022 was negative, and its operating revenue was below 100 million RMB, triggering a delisting risk warning[6]. - The overall business revenue for the year saw a significant decline due to complex payment processes from state unit clients, leading to increased accounts receivable and cash flow pressure[5]. - The company's operating revenue for 2022 was ¥58,961,190.96, a decrease of 50.18% compared to ¥118,348,876.58 in 2021[24]. - The net profit attributable to shareholders was -¥146,895,366.47, representing a decline of 2,693.04% from ¥5,664,994.12 in the previous year[24]. - The basic earnings per share for 2022 was -¥1.44, a decrease of 2,500.00% compared to ¥0.06 in 2021[24]. - The total assets at the end of 2022 were ¥757,338,049.70, down 4.74% from ¥795,038,344.12 at the end of 2021[24]. - The net assets attributable to shareholders decreased by 11.00% to ¥635,183,732.83 from ¥713,661,811.64 in 2021[24]. - The cash flow from operating activities was -¥182,007,557.84, a decline of 232.50% compared to -¥54,738,867.49 in 2021[24]. - The company reported a total of ¥214,720.86 in non-recurring gains and losses for 2022, significantly lower than ¥3,228,143.17 in 2021[30]. Research and Development - Research and development investments increased significantly, particularly in self-developed new products and programmable network data processing chips, which are in critical development stages[3]. - The company is committed to increasing its R&D efforts to achieve high-level self-reliance and sustainable growth in the future[5]. - The company has successfully developed China's first fully autonomous and controllable programmable network data processing chip (DPU) with a capacity of 200G, laying a foundation for sustainable development[37]. - The company has increased its R&D investment, focusing on enhancing product functionality and performance, particularly in entrusted R&D, self-developed new products, and programmable network data processing chips[36]. - The company expanded its R&D team by 41.38% during the reporting period, enhancing its technological research capabilities[87]. - Research and development expenses surged by 101.21% to ¥128,218,195.16 in 2022 from ¥63,722,618.60 in 2021, attributed to an increase in R&D personnel[125]. Market and Industry Outlook - The industry outlook remains positive in the long term, as cybersecurity is crucial for national security, and the company's fundamentals have not changed significantly[5]. - The domestic cybersecurity market is transitioning from a hundred billion market to a trillion market, with a compound annual growth rate exceeding 20%[41]. - The cybersecurity industry is experiencing strong growth momentum due to favorable policies and increasing investments in security measures[43]. - The market for cybersecurity solutions is expected to maintain high growth rates over the next five years, driven by the expansion of internet applications[43]. - The Chinese cybersecurity market is expected to approach $28.86 billion by 2026, with a CAGR of 18.8%, the highest growth rate globally[58]. Operational Challenges - The company is facing a long accounts receivable collection cycle, which has adversely affected its operating performance due to increased bad debt provisions[5]. - The company recognizes the risk of high customer concentration, with the top five clients accounting for a significant portion of revenue, and will work to diversify its customer base[169]. - The company faces high accounts receivable due to complex payment processes with national clients, leading to cash flow pressure; efforts will be made to improve collection and reduce bad debt provisions[167]. - The company is aware of the risks associated with new product development, including high upfront costs and the potential for unsuccessful product validation, and will ensure thorough project management[177]. Strategic Initiatives - The company plans to continue optimizing its management structure and enhancing operational efficiency to support sustainable development[5]. - The company aims to strengthen its market promotion efforts and expand business cooperation across multiple fields to create new profit growth points[37]. - The company is currently undergoing a phase of strategic adjustment in response to the "14th Five-Year Plan" implementation and macroeconomic factors[3]. - Continuous investment in R&D will be prioritized to stimulate innovation and expand the application range of security platform products, ensuring sustained business growth[164]. Governance and Compliance - The company has established an effective internal control management system to ensure compliance with relevant laws and regulations, aligning with the requirements set by the China Securities Regulatory Commission[181]. - The board of directors consists of 7 members, including 3 independent directors, meeting legal and regulatory requirements[184]. - The company maintains independence from its controlling shareholder in terms of personnel, assets, finance, and operations, ensuring independent decision-making capabilities[194]. - The company has implemented a transparent performance evaluation and incentive mechanism for its directors and senior management[188]. Financial Management - The company has optimized its capital structure by introducing industry-oriented shareholders to support the chip industry chain and future product applications[63]. - The total cash inflow from financing activities increased by 153.11% to 143,537,300.00 yuan, primarily due to capital contributions from minority shareholders[135]. - The net cash flow from financing activities was significantly positive at 115,665,860.31 yuan, a 698.39% increase compared to the previous year[136]. - The company has established a quality management system to meet high product quality standards, with ongoing efforts to control production quality and enhance employee skills[170].

Financial Performance - The company's revenue for Q1 2023 was ¥14,430,939.93, representing a 92.53% increase compared to ¥7,495,377.95 in the same period last year[5]. - The net loss attributable to shareholders was ¥30,218,120.16, a 15.70% increase from a loss of ¥26,116,655.86 in Q1 2022[5]. - Total operating revenue for Q1 2023 reached CNY 14,430,939.93, a significant increase of 92.5% compared to CNY 7,495,377.95 in the same period last year[22]. - Net loss for Q1 2023 was CNY 31,353,409.54, compared to a net loss of CNY 28,807,771.75 in Q1 2022, reflecting a decline of 5.4%[24]. - Basic earnings per share for Q1 2023 were CNY -0.2963, compared to CNY -0.2560 in Q1 2022[25]. Cash Flow - The net cash flow from operating activities was -¥63,654,700.99, a 45.24% decrease compared to -¥43,827,303.81 in the previous year[12]. - Cash flow from operating activities was CNY 11,815,463.60, a substantial increase from CNY 3,897,966.63 in Q1 2022[27]. - The net cash flow from operating activities was -63,654,700.99 CNY, compared to -43,827,303.81 CNY in the previous year, indicating a decline of approximately 45%[28]. - Total cash inflow from operating activities was 18,556,165.33 CNY, while cash outflow was 82,210,866.32 CNY, resulting in a significant cash outflow[28]. - The cash flow from investing activities was -34,824,422.91 CNY, compared to -26,541,263.17 CNY in the previous year, reflecting an increase in cash outflow by approximately 31%[29]. - Cash inflow from financing activities was 21,000,000.00 CNY, a decrease of approximately 58.7% from 50,637,300.00 CNY in the previous year[29]. - The net cash flow from financing activities was 20,408,535.84 CNY, down from 49,944,762.51 CNY in the previous year, indicating a decline of about 59%[29]. - The ending balance of cash and cash equivalents was 67,527,858.65 CNY, down from 256,686,177.49 CNY in the previous year, representing a decrease of approximately 73.7%[29]. - The company received tax refunds amounting to 700,605.65 CNY, compared to 274,967.91 CNY in the previous year, showing an increase of approximately 154%[28]. Expenses - Research and development expenses increased by 42.53% to ¥30,114,258.55 from ¥21,128,978.08 in Q1 2022[11]. - The company reported a significant increase in sales expenses, which rose to CNY 2,107,605.52 from CNY 970,087.72, marking a 117.7% increase[22]. - Payments to employees increased to 33,730,935.17 CNY from 26,290,236.92 CNY, reflecting an increase of about 28.5%[28]. - The cash outflow for other operating activities was 12,086,672.37 CNY, up from 6,106,988.70 CNY, representing an increase of about 97%[28]. Assets and Liabilities - The total assets at the end of Q1 2023 were ¥734,449,365.46, down 3.02% from ¥757,338,049.70 at the end of the previous year[5]. - Total non-current assets increased from 207,035,899.18 to 239,326,896.33, an increase of approximately 15.6%[19]. - Total liabilities decreased to CNY 86,081,646.76 from CNY 98,988,495.34 year-over-year, a reduction of 12.3%[21]. - Total equity attributable to shareholders was CNY 617,546,905.88, down from CNY 635,183,732.83 in the previous year[24]. - The company's cash and cash equivalents decreased from 145,598,446.71 to 67,527,858.65, a decline of approximately 53.7%[18]. - Accounts receivable decreased from 231,901,342.70 to 221,381,451.39, a reduction of about 4.5%[18]. - Accounts payable decreased from 22,750,699.48 to 20,330,171.70, a reduction of approximately 10.7%[19]. - Short-term borrowings remained constant at 33,935,674.99[19]. Shareholder Information - Total number of common shareholders at the end of the reporting period is 5,372[15]. - The largest shareholder, Zhang Jun, holds 23.10% of shares, totaling 23,577,300 shares[15]. - The company has no preferred shareholders as indicated in the report[17]. - The company has a significant concentration of ownership, with the top four shareholders being aligned as acting in concert[16].

Financial Performance - The company's revenue for Q3 2022 was ¥11,624,030.64, a decrease of 60.91% compared to the same period last year[5]. - The net profit attributable to shareholders was -¥21,297,869.14, representing a decline of 539.95% year-on-year[5]. - The basic earnings per share for the period was -¥0.2088, down 535.91% from the previous year[5]. - Total operating revenue for Q3 2022 was ¥37,279,144.24, a decrease of 63.2% compared to ¥100,873,319.32 in the same period last year[20]. - Net profit for Q3 2022 was a loss of ¥90,310,481.16, compared to a profit of ¥19,639,673.90 in Q3 2021, representing a significant decline[21]. - The company reported a total comprehensive loss of ¥90,310,481.16 for the quarter, contrasting with a comprehensive income of ¥19,639,673.90 in Q3 2021[21]. Assets and Liabilities - Total assets at the end of the reporting period were ¥749,147,764.09, a decrease of 5.77% from the end of the previous year[5]. - The company's total liabilities decreased to ¥63,413,686.78 from ¥70,518,692.46, a reduction of 10.0%[20]. - The equity attributable to shareholders of the parent company fell to ¥671,239,137.94, down 6.0% from ¥713,661,811.64[20]. - Total assets decreased from ¥795,038,344.12 at the beginning of the year to ¥749,147,764.09, a decline of about 5.77%[17]. Cash Flow - The cash flow from operating activities for the first nine months was -¥154,488,514.65, an increase in negative cash flow of 453.38% compared to the same period last year[11]. - The net cash flow from operating activities for the period was -154,488,514.65 CNY, compared to -27,917,015.94 CNY in the previous period, indicating a significant decline[22]. - Total cash inflow from operating activities was 25,945,501.91 CNY, down 83.1% from 153,893,757.43 CNY year-over-year[22]. - Cash outflow from operating activities totaled 180,434,016.56 CNY, slightly decreased from 181,810,773.37 CNY in the previous period[22]. - The ending cash and cash equivalents balance was 121,022,191.38 CNY, down from 289,175,982.77 CNY in the previous period[23]. Investment and R&D - Research and development expenses increased by 77.95% to ¥80,849,911.28, reflecting the company's commitment to enhancing R&D projects[9]. - The company is currently constructing a R&D manufacturing center in Chengdu, which has contributed to a 93.95% increase in construction in progress[9]. - The company experienced a 528.67% increase in cash outflow from investment activities, primarily due to expenditures related to the Chengdu R&D center[11]. - Research and development expenses surged to ¥80,849,911.28, an increase of 77.9% from ¥45,434,211.45 in the previous year[20]. Shareholder Information - Total number of common shareholders at the end of the reporting period is 6,546[13]. - The largest shareholder, Zhang Jun, holds 23.10% of shares, totaling 23,577,300 shares[13]. - The company has a significant concentration of ownership, with the top four shareholders being Zhang Jun, He Chaohui, Zhang Yinan, and He Peixian, all acting in concert[14]. - The company reported a total of 755,754 shares held by Hu Bo, with no restrictions on sale[14]. Operational Challenges - The company reported a significant decrease in operating income, which was affected by the COVID-19 pandemic and product transition cycles, down 63.04% year-on-year[9]. - The company has not reported any new product developments or market expansion strategies in the current quarter[15]. - Future outlook and strategic initiatives were not explicitly mentioned in the provided content, suggesting a focus on recovery and stabilization[19]. - The company's cash flow situation indicates a need for strategic adjustments to improve operational efficiency and investment returns[24].

Financial Performance - The company's operating revenue for the first half of 2022 was ¥25,655,113.60, a decrease of 63.94% compared to ¥71,135,821.51 in the same period last year[20]. - The net profit attributable to shareholders was a loss of ¥54,580,346.03, representing a decline of 411.42% from a profit of ¥17,526,134.90 in the previous year[20]. - The net cash flow from operating activities was a negative ¥89,765,912.51, worsening by 29.68% compared to a negative ¥69,218,640.64 in the same period last year[20]. - Basic earnings per share were reported at -¥0.5351, a decrease of 411.65% from ¥0.1717 in the previous year[20]. - The company's revenue for the reporting period was ¥25,655,113.60, a decrease of 63.94% compared to ¥71,135,821.51 in the same period last year, primarily due to the impact of the COVID-19 pandemic[66]. - The company reported a net loss of ¥65,290,638.87 for the first half of 2022, compared to a net profit of ¥15,910,347.65 in the same period of 2021, indicating a significant decline in profitability[200]. - Operating profit turned negative at ¥71,201,358.71, contrasting with an operating profit of ¥18,805,011.97 in the previous year[200]. - The total profit before tax was reported at ¥-71,080,958.71, a significant drop from ¥20,405,011.97 in the same period last year[200]. Assets and Liabilities - Total assets at the end of the reporting period were ¥781,967,960.72, down 1.64% from ¥795,038,344.12 at the end of the previous year[20]. - The net assets attributable to shareholders decreased by 3.09%, from ¥713,661,811.64 to ¥691,644,744.52[20]. - The cash and cash equivalents decreased by 29.16% to ¥-74,832,004.14 from ¥-105,631,082.87 in the previous year, primarily due to changes in financing activities[66]. - The company's total assets as of June 30, 2022, amounted to CNY 781,967,960.72, down from CNY 795,038,344.12 at the beginning of the year[194]. - Current liabilities totaled CNY 71,843,670.90, slightly up from CNY 70,224,643.24 at the start of the year[194]. - The total equity attributable to shareholders decreased to CNY 691,644,744.52 from CNY 713,661,811.64[194]. Research and Development - Research and development expenses increased by 104.05% to ¥57,753,425.19, driven by an increase in R&D personnel and further investment in R&D[66]. - The company is focusing on expanding its R&D capabilities and enhancing its product offerings in the network security sector[73]. - The company is committed to continuous product innovation and performance enhancement, maintaining its leading position in the cybersecurity product field[38]. - The company has implemented a dual-mode R&D approach, combining independent and commissioned research to ensure technological leadership in the industry[41]. - The company has increased its R&D investment, with a focus on cutting-edge technologies to enhance product performance and create new profit growth points[57]. Market and Industry Trends - The company operates in the cybersecurity industry, which is experiencing rapid growth due to emerging technologies such as cloud computing, IoT, big data, and 5G, with increasing demand for data security and privacy protection[28]. - The network security industry is projected to exceed 250 billion RMB by 2023, with a compound annual growth rate (CAGR) of over 15%[47]. - China's integrated circuit design industry saw sales revenue grow from 36.39 billion RMB in 2010 to 377.84 billion RMB in 2020, achieving a CAGR of 26.36%[48]. - The global cybersecurity spending is projected to reach $151.95 billion in 2021 and is expected to grow to $223.34 billion by 2025, with a CAGR of 10.4%[55]. - China's cybersecurity spending is anticipated to reach $10.26 billion in 2021, growing to $21.46 billion by 2025, representing a CAGR of 20.5%, the highest globally[55]. Strategic Initiatives - The company plans not to distribute cash dividends or issue bonus shares[4]. - The company has introduced strategic investors to optimize its capital structure and support its chip industry chain and future product applications[31]. - The company is focusing on domestic market expansion, supported by recent national policies promoting technological innovation and industrial upgrades[29]. - The company has established a fully autonomous and controllable closed industrial chain from design to production, enhancing its ability to manage risks associated with the pandemic[31]. - The company is considering strategic acquisitions to enhance its market position, targeting firms with complementary technologies[138]. Risk Factors - The company has acknowledged potential risk factors in its operations, which are detailed in the report[3]. - The company is facing rising labor costs due to rapid expansion and increasing average wage levels in the labor market, which may negatively impact profitability[108]. - The ongoing COVID-19 pandemic continues to pose uncertainties that may impact the company's operations and financial results[111]. - New product development involves high upfront investment and risks, with ongoing projects being managed to ensure success rates[110]. - The prices of raw materials, such as chips and connectors, have been rising, which could adversely affect gross margins if product prices cannot be adjusted accordingly[110]. Shareholder and Governance - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the half-year period[117]. - The company’s independent directors confirmed that the adjustments to the stock incentive plan complied with relevant laws and regulations, ensuring no harm to the interests of the company and its shareholders[121]. - The lock-up period for shares held by major shareholders is 36 months, during which they cannot sell or transfer their shares[137]. - Shareholders are restricted to transferring no more than 25% of their total shares during their tenure as directors or senior management[137]. - The company has established strict rules regarding the sale of shares to ensure compliance with regulatory requirements[137]. Operational Efficiency - The company is focusing on improving operational efficiency and exploring new market opportunities to enhance future growth[199]. - The management emphasized the importance of maintaining operational efficiency, aiming for a cost reduction of 5% across all departments[138]. - The company’s management expenses decreased to ¥10,826,090.24 from ¥11,701,103.63, reflecting efforts to optimize operational efficiency[200]. Compliance and Social Responsibility - The company is committed to legal operations and tax compliance, balancing economic and social benefits in its business practices[134]. - The company emphasizes social responsibility by fostering good relationships with employees, shareholders, and customers, aiming for mutual benefits[129]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[127]. - The company is not classified as a key pollutant discharge unit by environmental protection authorities, adhering strictly to relevant environmental laws[128].

Financial Performance - The company's revenue for Q1 2022 was ¥7,495,377.95, representing a decrease of 81.43% compared to ¥40,368,936.81 in the same period last year[4] - The net profit attributable to shareholders was a loss of ¥26,116,655.86, a decline of 225.44% from a profit of ¥20,820,702.74 in the previous year[4] - The total operating revenue for Q1 2022 was CNY 7,495,377.95, a significant decrease from CNY 40,368,936.81 in Q1 2021, representing a decline of approximately 81.5%[23] - The net profit for Q1 2022 was a loss of CNY 28,807,771.75, compared to a profit of CNY 20,174,434.05 in Q1 2021, indicating a negative swing of approximately 242.5%[24] - The total comprehensive income for Q1 2022 was -CNY 28,807,771.75, contrasting with CNY 20,174,434.05 in Q1 2021, reflecting a substantial decrease[25] - The basic earnings per share for Q1 2022 was -CNY 0.2560, compared to CNY 0.2041 in Q1 2021, indicating a decline in profitability[25] Cash Flow - The net cash flow from operating activities was -¥43,827,303.81, which is a 56.18% increase in cash outflow compared to -¥28,062,694.01 in Q1 2021[11] - The cash flow from operating activities showed a net outflow of CNY 43,827,303.81, worsening from a net outflow of CNY 28,062,694.01 in the previous year[28] - The cash flow from investing activities showed a net outflow of -¥26,541,263.17, a decrease of 23.22% compared to -¥34,570,053.24 in the previous year[12] - The cash flow from investing activities resulted in a net outflow of CNY 26,541,263.17, compared to a net outflow of CNY 34,570,053.24 in Q1 2021, showing an improvement of approximately 23.2%[29] - The cash flow from financing activities generated a net inflow of CNY 49,944,762.51, a significant increase from a net outflow of CNY 191,810.13 in the same period last year[29] Assets and Liabilities - The total assets at the end of Q1 2022 were ¥820,709,015.59, reflecting a 3.23% increase from ¥795,038,344.12 at the end of the previous year[5] - Cash and cash equivalents at the end of the period amounted to CNY 256,686,177.49, down from CNY 277,109,981.96 at the beginning of the year, reflecting a decrease of approximately 7.5%[17] - Accounts receivable increased to CNY 210,955,232.58 from CNY 208,001,208.78, showing a slight increase of about 1.4%[17] - Inventory rose to CNY 158,601,582.16, up from CNY 125,021,377.29, representing an increase of approximately 26.9%[18] - Total liabilities amounted to CNY 74,232,391.64, up from CNY 70,518,692.46, indicating an increase of approximately 10.2%[20] - The company's equity attributable to shareholders increased to CNY 720,293,887.12 from CNY 713,661,811.64, reflecting a growth of about 0.2%[20] - The company’s total current liabilities increased to CNY 74,072,002.17 from CNY 70,224,643.24, representing an increase of about 2.4%[19] Expenses - Research and development expenses increased by 78.63% to ¥21,128,978.08, up from ¥11,828,111.08 in the same quarter last year[10] - The total operating costs increased to CNY 30,749,218.18 from CNY 23,736,093.12, marking an increase of about 29.5%[23] - The company reported a significant increase in management expenses to CNY 5,791,717.03 from CNY 4,719,135.01, which is an increase of approximately 22.7%[23] - The company reported a significant increase in credit impairment losses, amounting to -¥3,000,879.02, a 1465.31% increase compared to -¥191,711.56 in Q1 2021[10] Shareholder Information - The company had a total of 9,667 common shareholders at the end of the reporting period[14] - The top shareholder, Zhang Jun, holds 23.09% of the shares, amounting to 23,577,300 shares[14]

Financial Performance - The company's operating revenue for 2021 was ¥118,348,876.58, a decrease of 41.04% compared to ¥200,721,987.01 in 2020[20]. - The net profit attributable to shareholders for 2021 was ¥5,664,994.12, down 93.95% from ¥93,641,617.62 in 2020[20]. - The net cash flow from operating activities was -¥54,738,867.49, a decline of 141.52% compared to ¥131,822,972.24 in 2020[20]. - The total assets at the end of 2021 were ¥795,038,344.12, a decrease of 1.23% from ¥804,960,378.10 at the end of 2020[20]. - The company reported a basic earnings per share of ¥0.06 for 2021, down 93.48% from ¥0.92 in 2020[20]. - The net profit excluding non-recurring gains and losses was ¥2,436,850.95, a decrease of 97.20% from ¥87,158,004.62 in 2020[20]. - The company achieved total revenue of ¥118,348,876.58, a decrease of 41.04% year-on-year[83]. - The net profit attributable to shareholders was ¥5,664,994.12, down 93.95% compared to the previous year[83]. - The information security sector contributed ¥115,663,143.42, accounting for 97.73% of total revenue, with a year-on-year decline of 41.97%[86]. - The company's revenue for the information security industry in 2021 was approximately ¥115.66 million, representing a decrease of 41.97% compared to the previous year[100]. Research and Development - In 2021, the company's R&D expenses increased significantly due to the growing demand for new product development and the key R&D phase of a programmable network data processing chip, impacting net profit[6]. - The company increased its R&D investment significantly in 2021 to enhance its technological foundation for future growth[35]. - The programmable network data processing chip entered a critical R&D phase in 2021, with substantial increases in related R&D expenditures[35]. - Research and development expenses increased by 70.87% to ¥63,722,618.60, reflecting the company's commitment to innovation[83]. - R&D investment accounted for 53.84% of operating revenue, significantly up from 18.58% in the previous year[110]. - The number of R&D personnel increased by 32.82% to 174, with a notable rise in the number of master's degree holders by 57.14%[110]. - The company is actively developing a new generation of network security systems, which is currently in the prototype stage[110]. - The company plans to enhance its market position with a programmable network data processing chip, which is nearing the engineering batch production phase[110]. - The company has developed several core technologies, including high-speed five-tuple authentication technology and dual-machine hot backup technology[96][99]. Market Trends and Opportunities - The company anticipates continued growth in the cybersecurity market, with an expected investment scale of $9.78 billion in 2021, projected to grow to $18.79 billion by 2025[32]. - The network security industry is projected to exceed 250 billion yuan in scale, with a compound annual growth rate of over 15%[36]. - The overall market for network security in China is experiencing a compound annual growth rate (CAGR) of over 20%, indicating rapid growth and development opportunities[38]. - The domestic broad network security market is transitioning from a market worth billions to one worth trillions, reflecting significant expansion potential[38]. - The increasing emphasis on information security by the government is expected to drive substantial investments from government, enterprises, and individuals in network security measures[40]. - The network security market is projected to maintain high growth rates over the next five years, driven by the increasing awareness of security needs among end-users[40]. - The company is focusing on expanding its market presence in response to increasing cybersecurity threats and regulatory requirements[31]. - The company aims to strengthen its market position in the network security industry, enhancing market promotion and customer expansion to increase market share[142]. Product Development and Innovation - The company is focusing on the development of new products and optimizing existing ones, with several self-developed products entering mass production in 2022[56]. - The company has a comprehensive range of cybersecurity products, including dual-host platforms and network security chips, which are designed to meet diverse client needs[60][64]. - The programmable network data processing chip developed by the company's subsidiary has a network access and processing capability of up to 100 Gbps, catering to various network service scenarios[64]. - The company is enhancing its product lines and sales systems, aiming to broaden its customer base and increase the number of clients[58]. - The company is committed to meeting customer demands while maintaining product quality and delivery timelines, aiming to create greater value for shareholders[56]. - The company is actively pursuing domestic product localization to enhance functionality and performance in line with current usage requirements[65]. - The company aims to enhance its core competitiveness through technological breakthroughs and independent innovation in the cybersecurity industry[83]. Governance and Management - The board of directors consists of 7 members, including 3 independent directors, complying with legal and regulatory requirements[155]. - The supervisory board has 3 members, including 1 employee representative, ensuring compliance with relevant laws and regulations[156]. - The company respects and protects the legitimate rights and interests of stakeholders, promoting sustainable and healthy development[157]. - The performance evaluation and incentive mechanism for senior management is transparent and gradually improved, aligning with the company's development[158]. - Independent directors have actively participated in board meetings and provided independent opinions on significant matters, with no objections raised in 2021[159]. - The company has effectively executed internal controls for information disclosure, ensuring timely and accurate information for shareholders[161]. - Investor relations management is a continuous effort, enhancing communication and interaction with investors[162]. - The company maintains independence from its controlling shareholders in terms of personnel, assets, finance, and operations[163]. - The company has established a complete and independent financial accounting system, ensuring financial independence[164]. - The company has a structured approach to governance, with dedicated roles for financial oversight and strategic direction[179]. Employee and Talent Management - The total number of employees at the end of the reporting period was 278, with 211 in the parent company and 67 in major subsidiaries[195]. - The total employee compensation for the reporting period amounted to 3.0024 million yuan, representing 10.39% of the company's operating costs[197]. - The company has 174 technical personnel, 48 production personnel, 11 sales personnel, 6 financial personnel, and 39 administrative personnel[195]. - The educational background of employees includes 48 with master's degrees or above, 149 with bachelor's degrees, 45 with associate degrees, and 36 with vocational or lower education[196]. - The company has adopted a compensation policy that aligns employee performance with overall corporate goals, promoting effective human resource allocation[197]. - The company has implemented a restricted stock incentive plan for 2021, aimed at motivating key personnel[193]. Risk Management - The company is at risk of performance decline if national information security policies change or if product quality issues arise[146]. - The company is actively managing the risk of rising raw material prices through bulk purchasing and establishing long-term supplier relationships[147]. - The company is closely monitoring the impact of the COVID-19 pandemic on its financial status and operational results[148]. - The company has not identified any risks during the supervisory activities of the supervisory board in the reporting period[194]. Shareholder and Dividend Information - The profit distribution plan approved by the board is to distribute a cash dividend of 0.10 RMB per 10 shares (including tax) based on 102,100,000 shares, with no bonus shares or capital reserve conversion[8]. - The company distributed a cash dividend of 1.35 RMB per 10 shares, totaling 13.78 million RMB (including tax) to all shareholders[200]. - The total share capital of the company is 102,080,000 shares, which serves as the basis for the dividend distribution[199].

Financial Performance - The company's revenue for Q3 2021 was ¥29,737,497.81, a decrease of 38.38% compared to the same period last year[4] - The net profit attributable to shareholders for Q3 2021 was ¥4,885,357.59, down 79.10% year-on-year[4] - The basic earnings per share for Q3 2021 was ¥0.0479, reflecting a decline of 79.05% compared to the previous year[5] - Total operating revenue for Q3 2021 reached ¥100,873,319.32, a 37.9% increase from ¥73,135,166.25 in the same period last year[24] - Net profit for Q3 2021 was ¥19,639,673.90, a decrease of 28.7% compared to ¥27,487,416.29 in Q3 2020[25] - Earnings per share (EPS) for Q3 2021 was ¥0.2196, down from ¥0.2710 in the previous year[26] Assets and Liabilities - The total assets at the end of Q3 2021 were ¥777,028,370.60, a decrease of 3.47% from the end of the previous year[5] - Total assets decreased to ¥777,028,370.60 from ¥804,960,378.10, a decline of about 3.5%[21] - Total current liabilities decreased to ¥57,980,333.38 from ¥100,005,222.55, a reduction of approximately 42%[21] - Total liabilities stood at ¥57,980,333.38, while total equity was ¥719,048,037.22, indicating a strong capital structure[22] - The total liabilities amounted to 100,005,222.55 CNY, slightly decreased from 100,645,817.64 CNY[36] Cash Flow - The operating cash flow net amount for the year-to-date was -¥27,917,015.94, a decline of 153.58% compared to the same period last year[12] - The company reported a net cash outflow from operating activities of ¥27,917,015.94, contrasting with a net inflow of ¥52,107,643.28 in the same quarter last year[29] - The net cash flow from investment activities was -7,713,543.85 CNY, a decrease from 130,016,757.33 CNY in the previous quarter[30] - The company reported a net cash outflow from financing activities of -9,640,838.94 CNY, compared to -50,563,774.41 CNY in the previous quarter[30] Research and Development - The company's R&D expenses increased by 80.80% year-on-year, totaling ¥45,434,211.45 for the first nine months of 2021[11] - Research and development expenses increased to ¥45,434,211.45, compared to ¥25,129,243.97 in the previous year, reflecting a focus on innovation[24] Shareholder Information - Total number of common shareholders at the end of the reporting period is 8,376[15] - The largest shareholder, Zhang Jun, holds 23.10% of shares, totaling 23,577,300 shares[15] Other Financial Metrics - The company received government subsidies amounting to ¥1,600,000.00 during the reporting period[7] - The company generated other income of ¥17,907,745.82, an increase from ¥12,294,077.12 year-on-year[24] - The company’s total liabilities decreased by 80.29% in contract liabilities, amounting to ¥4,427,244.37 at the end of Q3 2021[10] - The company reported a significant increase in prepayments, which rose by 1041.68% to ¥24,220,760.98 compared to the end of the previous year[10] - The company executed adjustments to the financial statements due to the new leasing standards, impacting the balance sheet[32] - The company did not undergo an audit for the third quarter report[37]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥71,135,821.51, representing a 185.96% increase compared to ¥24,875,904.63 in the same period last year[21]. - The net profit attributable to shareholders was ¥17,526,134.90, a significant increase of 305.22% from ¥4,325,132.84 in the previous year[21]. - The net profit after deducting non-recurring gains and losses reached ¥15,450,133.43, compared to a loss of ¥434,967.77 in the same period last year, marking a 3,652.02% increase[21]. - The basic earnings per share increased to ¥0.1717, up 304.95% from ¥0.0424 in the previous year[21]. - The total assets at the end of the reporting period were ¥772,680,615.79, a decrease of 4.01% from ¥804,960,378.10 at the end of the previous year[21]. - The net assets attributable to shareholders increased slightly by 0.79% to ¥709,109,223.53 from ¥703,569,163.97 at the end of the previous year[21]. - The company reported a net cash flow from operating activities of -¥69,218,640.64, a decline of 1,593.01% compared to ¥4,636,184.32 in the same period last year[21]. - The company plans not to distribute cash dividends or issue bonus shares[6]. Market Trends and Industry Insights - The domestic cybersecurity market is transitioning from a hundred billion market to a trillion market, with a compound annual growth rate exceeding 20%[29]. - The network security industry is projected to exceed RMB 250 billion by 2023, with a compound annual growth rate of over 15%[46]. - The cybersecurity industry is experiencing rapid growth, driven by increasing investments from government, enterprises, and individuals, with a strong market demand expected to continue[51]. - The future of network management will focus on enhancing end-to-end management and control capabilities, with network operating systems becoming a critical competitive factor[52]. - The integration of artificial intelligence into network security is expected to enhance risk prediction, perception, and rapid threat identification[58]. Research and Development - The company has increased R&D investment, focusing on the development of core technologies for future cybersecurity products[31]. - The company is developing programmable network security chips with capabilities of up to 100Gbps, aimed at various network service scenarios[38]. - The company has filed for 12 patents and holds 4 authorized invention patents and 4 design patents as of June 30, 2021, indicating a strong focus on innovation[71]. - The company has increased its R&D investment by 86.91% year-over-year, with R&D personnel now accounting for approximately 70% of the workforce[69]. - The company is working on a programmable network security chip with processing capabilities ranging from 1000 Mbps to 100 Gbps, designed for various applications including network communication and cloud servers[63]. Strategic Initiatives - The implementation of the "New Infrastructure" strategy is accelerating the development of cloud computing and AI as new information infrastructure[30]. - The company is actively pursuing domestic product localization to meet current usage demands and enhance product performance[39]. - The company aims to establish a collaborative development pattern between industrial internet and safety production by the end of 2023, focusing on key industry regulatory platforms[18]. - The company is responding to national cybersecurity policies by continuously innovating and launching high-quality products and solutions to better meet user needs[50]. - The company is committed to enhancing its cybersecurity protection measures in line with national strategies, which will further improve its market position[50]. Financial Management and Investments - The company reported an investment income of 443,486.02 yuan, accounting for 2.17% of total profit, primarily from bank wealth management returns[92]. - The fair value changes resulted in a gain of 492,986.30 yuan, representing 2.42% of total profit, attributed to the fair value changes of trading financial assets[92]. - The total cash and cash equivalents decreased to 228,816,298.63 yuan, representing 29.61% of total assets, down from 41.55% the previous year[94]. - The company has engaged in bank wealth management products amounting to CNY 11,260 million, with an outstanding balance of CNY 4,000 million[112]. - The company has committed CNY 10,000 million for working capital, achieving a 100% completion rate[108]. Risk Management - The company faces high customer concentration risk, with the top five customers accounting for a significant portion of total revenue, impacting pricing power and revenue growth[118]. - There is a risk of product quality issues due to the complexity of network information security products, which must meet high national standards[119]. - Rising raw material prices pose a risk to product costs, but the company is taking steps to secure supply and manage procurement effectively[125]. - The company is committed to improving internal management to mitigate risks associated with performance declines and market changes[126]. Corporate Governance and Shareholder Matters - The company’s stock incentive plan was approved by the board and shareholders, allowing for the issuance of restricted stock[175]. - The total number of common shareholders at the end of the reporting period is 9,671[181]. - Major shareholders include Zhang Jun with a 23.10% stake (23,577,300 shares) and He Chaohui with a 21.87% stake (22,322,700 shares)[181]. - The top five shareholders collectively hold 69.82% of the company's shares, indicating a high concentration of ownership[182]. - The company’s management team has been granted a total of 80,000 restricted stock units, all of which are currently subject to restrictions[185].

Financial Performance - The company's operating revenue for 2020 was ¥200,721,987.01, representing a decrease of 8.25% compared to ¥218,765,020.18 in 2019[18]. - The net profit attributable to shareholders for 2020 was ¥93,641,617.62, an increase of 5.56% from ¥88,708,333.17 in 2019[18]. - The net cash flow from operating activities was ¥131,822,972.24, a significant improvement from a negative cash flow of ¥104,613,705.48 in 2019[18]. - The total assets at the end of 2020 amounted to ¥804,960,378.10, reflecting a growth of 10.83% from ¥726,325,192.19 at the end of 2019[18]. - The net assets attributable to shareholders increased by 12.84% to ¥703,569,163.97 from ¥623,527,546.35 in 2019[18]. - The basic earnings per share for 2020 were ¥0.92, down 16.36% from ¥1.10 in 2019[18]. - The weighted average return on net assets was 14.11%, a decrease of 14.21% compared to 28.32% in 2019[18]. - The total profit for 2020 was 105.18 million yuan, an increase of 4.66% compared to the previous year[46]. - The net profit attributable to ordinary shareholders was 87.16 million yuan, a slight decrease of 0.50% year-on-year[46]. - The company's product sales revenue from information security products reached ¥198,642,314.13, reflecting a decrease of 8.73% compared to the previous year[60][69]. Revenue and Market Trends - Total revenue for the year reached 200 million RMB, with a significant increase in Q4 revenue to 127.59 million RMB, representing a growth of 164.6% compared to Q1[21]. - Revenue from the information security sector was ¥199,303,429.90, accounting for 99.29% of total revenue, down 8.43% from ¥217,652,252.40 in 2019[51]. - The revenue from other business segments increased by 27.48%, reaching ¥1,418,557.11 in 2020 compared to ¥1,112,767.78 in 2019[51]. - The company’s cloud security revenue accounted for over 10% of the audited consolidated financial statements for the most recent fiscal year[49]. - The domestic network security market is projected to grow from a hundred billion market to a trillion market, driven by increasing digital transformation and security needs[35]. Research and Development - R&D expenses accounted for 18.58% of the annual operating revenue, reflecting the company's commitment to innovation[47]. - The company is committed to ongoing research and development in new products and technologies to enhance market competitiveness[6]. - The company has obtained 4 authorized patents and is in the process of applying for 13 additional patents as of the end of 2020[40]. - The company is focused on the development of network security products, including various security platforms and dedicated chips, to meet the growing market demand[28]. - The company has developed several core technologies, including high-speed quintuplet authentication technology and fanless cooling technology, enhancing product reliability[62][67]. Cash Flow and Liquidity - The net cash flow from operating activities improved significantly, reaching 79.72 million RMB in Q4, compared to a negative cash flow of 18.38 million RMB in Q1[21]. - Operating cash inflow surged by 383.63% to ¥306,736,136.80, primarily due to increased sales collections[87]. - Total cash and cash equivalents increased by 254.91% to ¥211,883,027.68, reflecting improved liquidity[87]. - The proportion of cash and cash equivalents to total assets increased by 24.68% to 41.55% due to the redemption of financial products and sales collections[91]. Dividend Policy - The company plans to distribute a cash dividend of ¥1.35 per 10 shares, based on a total of 102,080,000 shares[6]. - The cash dividend payout ratio for 2020 was 14.72% of the net profit attributable to shareholders, compared to 15.33% in 2019[128]. - The company distributed cash dividends of 13,780,800 RMB (including tax) to shareholders, with a cash dividend of 1.35 RMB per 10 shares[126]. - The cash dividend for 2019 was 2.00 RMB per 10 shares, amounting to 13.6 million RMB, with a capital reserve conversion of 5 shares for every 10 shares held[128]. Corporate Governance and Compliance - The company emphasizes the importance of domestic chip and software usage in its information security products to align with national security requirements[111]. - The company has fulfilled all commitments made by its actual controllers and shareholders during the reporting period[129]. - The company is committed to adhering to its shareholding restrictions and voluntary lock-up commitments post-IPO[130]. - The company has established strict compliance with share transfer restrictions and voluntary lock-up commitments[132]. - The company emphasizes transparency in its management and governance practices[200]. Risk Management - The company has outlined potential risks and corresponding mitigation strategies in its future development outlook[6]. - The company faces risks related to rising labor costs due to rapid expansion and increasing average wage levels in the labor market[119]. - The company is actively managing risks related to order fluctuations and has strategies in place to mitigate potential impacts on profitability[120]. - The company is closely monitoring the impact of the COVID-19 pandemic on its operations and financial performance[120]. Subsidiaries and Expansion - The company established a subsidiary in Chengdu to specialize in the research and development of network security dedicated chips, enhancing its technological capabilities[34]. - The company established a wholly-owned subsidiary, Chengdu Beishang Technology Co., Ltd., with a registered capital of CNY 50 million, which was later increased to CNY 102 million by the end of 2020[141]. - The company also set up a controlling subsidiary, Chengdu Beizhong Technology Co., Ltd., with a registered capital of RMB 10 million, holding 80% of the shares[174]. Social Responsibility - The company actively participates in social responsibility initiatives, including employment promotion and environmental protection efforts[172]. - The company is not classified as a key pollutant discharge unit by environmental protection authorities[172]. - The company plans to continue its commitment to corporate social responsibility in 2021[172].