Capital Structure and Share Issuance - The registered capital of the company increased from 54,689,650 yuan to 72,919,650 yuan after the issuance of new shares[22]. - The total share capital of the company changed from 54,689,650 shares to 72,919,650 shares following the capital increase[22]. - The company's total share capital increased from 72,919,650 shares to 131,687,370 shares due to the granting of 240,000 restricted stocks and the implementation of the 2020 equity distribution plan[24]. - The total number of shares increased from 72,919,650 to 131,687,370, reflecting a change of 58,767,720 shares[137]. - The company completed the first grant of 240,000 restricted stocks under the 2021 incentive plan, increasing the total share capital[139]. - The company plans to grant 1.2 million restricted stocks under its 2021 incentive plan, with an initial grant price set at 21.55 CNY per share[95][96]. - The company issued 8 additional shares for every 10 shares held as part of the capital reserve conversion[138]. - The proportion of restricted shares increased from 75.00% to 75.08% after the changes[137]. - The number of unrestricted shares increased from 18,230,000 to 32,814,000, representing a decrease in proportion from 25.00% to 24.92%[137]. Financial Performance - Revenue for the reporting period was CNY 265,081,782.10, representing a year-on-year increase of 9.56%[25]. - Net profit attributable to shareholders decreased by 25.22% to CNY 30,708,183.85 compared to the same period last year[25]. - The net cash flow from operating activities dropped significantly by 72.59% to CNY 12,020,737.55[25]. - Basic and diluted earnings per share fell by 45.24% to CNY 0.23[25]. - The weighted average return on equity decreased by 14.77% to 3.74%[25]. - The company's operating revenue for the reporting period was ¥265,081,782.10, representing a year-on-year increase of 9.56% compared to ¥241,960,646.79 in the previous year[49]. - The company reported a total profit of ¥36,362,545.49, down 24.8% from ¥48,360,531.11 in the same period of 2020[169]. - The company reported a significant increase in other payables, rising from ¥3,077,557.85 to ¥8,778,464.83, an increase of about 185.5%[161]. Research and Development - The company is focusing on the development of SD-WAN and SASE technologies, with the launch of the SD-WAN 2.0 product on July 28, 2021, which features fully independent intellectual property rights[39]. - The company’s R&D investment increased by 39.83% to ¥22,236,074.65 from ¥15,901,988.06, reflecting the company's commitment to enhancing its R&D capabilities[49]. - Research and development expenses increased to ¥22,236,074.65, up 39.7% from ¥15,901,988.06 in the first half of 2020[167]. Market Strategy and Operations - The company is focused on expanding its market presence and enhancing its product offerings[5]. - The company is expanding its overseas business, establishing SD-WAN network nodes in Frankfurt and Singapore to support global network development opportunities[40]. - The company aims to enhance its market share by providing customized services to clients in various industries, including finance, real estate, manufacturing, and retail[38]. - The company is committed to a "domestic substitution" strategy, enhancing its competitive edge in the specialized network service and technology sectors[39]. - The company established 61 business nodes across 36 cities in 23 provinces, municipalities, and autonomous regions in China by the end of the reporting period[42]. Financial Position and Assets - As of June 30, 2021, total assets amounted to ¥890,129,732.27, a slight increase from ¥880,622,031.65 at the end of 2020, reflecting a growth of approximately 0.6%[160]. - Current assets totaled ¥792,682,188.55, down from ¥807,074,942.64 at the end of 2020, indicating a decrease of about 1.5%[160]. - Cash and cash equivalents decreased significantly from ¥694,820,408.48 to ¥207,237,254.85, a decline of approximately 70.2%[159]. - Accounts receivable increased from ¥84,789,335.44 to ¥113,135,657.43, representing a growth of about 33.5%[159]. - Total liabilities rose to ¥111,465,954.32 from ¥75,522,114.73, marking an increase of approximately 47.6%[161]. - The company's equity attributable to shareholders decreased from ¥805,146,955.54 to ¥778,741,387.96, a decline of about 3.3%[162]. Risk Management - The company emphasizes the importance of risk awareness regarding future plans and performance forecasts[5]. - The company faces risks related to rapid technological updates and the need for continuous R&D investment to maintain competitiveness[83]. - The company faces risks of gross margin fluctuations due to intensified market competition and potential inability to maintain competitive advantages, which could lead to a decline in product sales prices[87]. Shareholder Information - Major shareholder Chen Shulin holds 26.55% of shares, totaling 34,965,000 shares[144]. - Major shareholder Jiang Xiaoming holds 26.47% of shares, totaling 34,857,000 shares[144]. - The total number of ordinary shareholders at the end of the reporting period is 16,287[144]. - The company has not undergone any changes in its controlling shareholder during the reporting period[149]. - The company has not undergone any changes in its actual controller during the reporting period[149]. Compliance and Governance - The financial report is guaranteed to be true, accurate, and complete by the company's management[4]. - The half-year financial report was not audited[106]. - The company did not engage in any major related party transactions during the reporting period[110]. - There were no significant lawsuits or penalties reported during the reporting period[109].

Financial Performance - The company's operating revenue for Q1 2021 was ¥127,888,942.44, representing a 9.62% increase compared to ¥116,663,943.67 in the same period last year[8]. - Net profit attributable to shareholders decreased by 20.03% to ¥16,881,116.68 from ¥21,108,374.47 year-on-year[8]. - The net profit after deducting non-recurring gains and losses fell by 29.57% to ¥14,827,410.13 compared to ¥21,052,721.90 in the previous year[8]. - The company achieved a total sales revenue of RMB 127,888,942.44 in Q1 2021, representing a year-on-year increase of 9.62%[21]. - The main business revenue from value-added telecommunications services reached RMB 110,095,712.44, an increase of 3.52% year-on-year[21]. - The system integration business revenue surged to RMB 16,854,763.21, reflecting an 83.51% growth compared to the previous year, attributed to the recovery from the pandemic[21]. - Operating profit decreased to 18,698,442.64 from 22,753,886.43, a decline of approximately 17.9%[59]. - Net profit for the current period is 16,872,259.04, down from 21,100,596.56, indicating a decrease of around 20.5%[59]. - Basic and diluted earnings per share are both 0.230, down from 0.39 in the previous period, a decline of approximately 41.0%[60]. - The total comprehensive income for the current period is 16,647,096.08, down from 20,779,256.18, a decrease of approximately 19.5%[60]. Cash Flow and Liquidity - The net cash flow from operating activities increased by 29.72% to ¥12,658,076.64 from ¥9,758,253.27 year-on-year[8]. - The value of cash received from operating activities increased significantly to RMB 4,514,076.39, up 879.12% compared to RMB 461,034.04 in the same period last year[19]. - The company reported a substantial increase in cash paid for operating activities, totaling RMB 13,383,931.13, which is a 176.18% increase from RMB 4,846,023.73 year-on-year[19]. - The net increase in cash and cash equivalents for the current period was -¥408,802,189.28, compared to an increase of ¥4,650,411.04 in the previous period, showing a decline in liquidity[68]. - The ending balance of cash and cash equivalents was ¥285,418,221.23, down from ¥99,048,882.40, reflecting a decrease in available cash resources[68]. - Cash inflow from sales of goods and services was ¥125,897,876.16, compared to ¥100,968,347.34 in the previous period, marking an increase of approximately 24.8%[65]. - Cash paid for purchasing goods and services was ¥81,538,447.21, up from ¥67,614,283.43, representing a rise of about 20.5%[65]. - Cash paid to employees increased to ¥20,837,137.57 from ¥16,828,343.45, indicating a growth of approximately 23.8%[67]. Assets and Liabilities - Total assets at the end of the reporting period were ¥919,254,814.55, a 4.39% increase from ¥880,622,031.65 at the end of the previous year[8]. - Current assets totaled ¥830,565,482.57, up from ¥807,074,942.64, indicating an increase of about 2.0%[50]. - The company's cash and cash equivalents decreased significantly from ¥694,820,408.48 to ¥286,018,219.20, a decline of approximately 58.8%[49]. - Total liabilities increased to ¥97,204,101.37 from ¥75,522,114.73, marking a rise of approximately 28.7%[51]. - The company's equity attributable to shareholders reached ¥822,106,609.44, compared to ¥805,146,955.54, reflecting a growth of about 2.1%[52]. - Non-current assets totaled ¥88,689,331.98, up from ¥73,547,089.01, indicating an increase of approximately 20.5%[50]. - The total liabilities to equity ratio increased, indicating a higher leverage position for the company[51]. - The company reported a significant increase in inventory from ¥8,939,977.20 to ¥10,338,532.56, which is an increase of about 15.6%[49]. Investments and R&D - The company has invested in new technologies, as evidenced by the increase in intangible assets from ¥2,660,162.05 to ¥5,351,522.87, a growth of approximately 101.4%[50]. - Research and development expenses increased to 9,329,811.98 from 7,750,000.37, marking a rise of about 20.4%[58]. - The company raised a total of 106.7482 million CNY in excess funds, with 30 million CNY allocated for permanent working capital supplementation[32]. - As of March 31, 2021, the company has utilized 421 million CNY of the raised funds to purchase bank financial products[32]. Business Operations and Strategy - The company operates as a value-added telecommunications operator, utilizing resources from basic telecom operators to provide customized network services[35]. - The company's SD-WAN product development is progressing well, with all functional modules completed and currently in system testing, expected to launch in the second half of 2021[22]. - The company is expanding its SD-WAN business into Southeast Asia and Europe, with ongoing construction of nodes in Singapore and Frankfurt, despite delays due to the pandemic[25]. - The company plans to enhance its core competitiveness by introducing high-end technical talent and implementing an employee stock incentive plan[27]. - The company provides 24/7 network management services, enhancing network manageability and allowing for customized management based on client needs[37]. - The transition from traditional self-built networks to the company's MPLS virtual private network services is primarily due to cost savings and improved network flexibility[37]. - The company emphasizes the complementary relationship between public cloud service providers and its own services, mitigating the risk of being replaced by larger public cloud providers[36]. - The company’s services are characterized by high quality and timely after-sales response, leading to high customer satisfaction and a premium on service pricing[39]. - The company has established a competitive advantage in dedicated network service quality by utilizing multiple telecom operators' resources and automatic switching capabilities during network failures[42].

Profit Distribution and Financial Performance - The company reported a profit distribution plan of 8 RMB per 10 shares (including tax) and a capital reserve increase of 8 shares per 10 shares[5]. - The total number of shares for the profit distribution plan is based on 72,919,650 shares[5]. - The total cash dividend amount for the year 2020 was 58,335,720 CNY, which accounted for 76.69% of the net profit attributable to ordinary shareholders[149]. - For every 10 shares, the company plans to distribute a cash dividend of 8 CNY (including tax) and increase capital stock by 8 shares[145]. - The company did not distribute any bonus shares in the current year, and all undistributed profits will be carried forward to future years[145]. - The company has maintained a stable profit distribution policy, ensuring continuous and stable returns to investors[140]. - The company’s total distributable profit for the year was 177,099,656.50 CNY[144]. - The company did not distribute dividends in 2019, while in 2018, it distributed cash dividends totaling 25,000,000 CNY, accounting for 45.39% of the net profit[147]. - The company reported a net profit attributable to shareholders of CNY 76.07 million, an increase of 5.80% year-on-year, with basic earnings per share rising to CNY 1.39, up 6.11%[68]. Financial Reporting and Transparency - The company is committed to ensuring the accuracy and completeness of the financial report, with key personnel affirming its integrity[4]. - The company’s financial report is disclosed through multiple media outlets, ensuring transparency[16]. - The company’s website provides additional information and updates for stakeholders[14]. - The accounting firm responsible for the audit is Lixin Certified Public Accountants[18]. - The company has appointed China Merchants Securities as its sponsor for continuous supervision[19]. Business Operations and Market Position - The company operates in the telecommunications sector, providing both basic and value-added services[10]. - The company has a registered address in Shenzhen, indicating its operational base in a key economic area[14]. - The company has been focusing on the development of SDN and SD-WAN technologies to meet customer demands for network communication services[31]. - The main business of the company remains unchanged, focusing on providing dedicated network services[33]. - The company has a diversified product layout in research and development, including data center hosting services and cloud communication products[32]. - The company operates primarily through direct sales, effectively reducing related business costs[36]. - The company is currently in a phase of expanding its scale effects, continuously attracting new customers and retaining existing ones[37]. - The specialized network service industry is experiencing a growing market size due to the rapid development of cloud computing, leading to increased demand for data transmission[50]. - The company focuses on optimizing local network costs and increasing backbone network reuse to enhance gross profit margins and profitability[40]. - The company has established a strong customer retention model, as enterprise clients are reluctant to switch service providers due to high migration costs[38]. Research and Development - The company has increased investment in key R&D areas such as SDN and SD-WAN, enhancing its technical service capabilities and receiving the "2020 Excellent Service Award" for SD-WAN projects[69]. - The company’s R&D expenses increased by 4.26% to ¥33,303,220.25, focusing on SDN technology and the iterative upgrade of SD-WAN service products[90][91]. - The number of R&D personnel increased to 152 in 2020, accounting for 44.57% of the total workforce, up from 40.41% in 2019[93]. - The company holds 26 software copyrights, reflecting its commitment to research and development in network optimization and security enhancement technologies[64]. Cash Flow and Financial Health - Net cash flow from operating activities increased by 43.99% to ¥103,349,708.96 in 2020[20]. - Total assets at the end of 2020 reached ¥880,622,031.65, a significant increase of 211.71% compared to the end of 2019[20]. - The net assets attributable to shareholders increased by 299.90% to ¥805,146,955.54 at the end of 2020[20]. - Cash and cash equivalents increased by 635.77% compared to the beginning of the year, primarily due to funds raised from the public offering of shares[58]. - The proportion of monetary funds to total assets rose to 78.90% by the end of 2020, up from 33.43% at the beginning of the year, due to the influx of funds from stock issuance[102]. - Accounts receivable decreased by 24.28% to ¥84,789,335.44, reflecting a reduction in its proportion of total assets from 33.91% to 9.63%[103]. Market Trends and Future Outlook - The demand for private and public cloud connections is expected to increase, highlighting the growing market need for secure and manageable network services[55]. - The market for enterprise-level information transmission networks is expected to grow significantly due to the increasing demand for cloud services and diverse terminal applications[118]. - The company aims to provide high-bandwidth, visual, manageable, and low-cost information transmission solutions to enhance cloud services and smart terminal connectivity[117]. - The trend towards edge computing is being recognized as essential for meeting the demands of various industries, including manufacturing and healthcare[120]. - The company is positioned to benefit from the rapid development of digital infrastructure, driven by national policies supporting the digital economy[115]. Shareholder Commitments and Governance - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of listing[150]. - The company will comply with the regulations set by the China Securities Regulatory Commission regarding share reduction by major shareholders and executives[151]. - The commitments made by the controlling shareholders include adherence to relevant stock exchange rules and regulations[150]. - The company has established a clear framework for managing share transfers and reductions to ensure market stability[151]. - The commitments are aimed at protecting investor interests and maintaining shareholder confidence in the company's governance[150]. Stock Repurchase and Price Stabilization - The company plans to implement stock repurchase measures if the stock price falls below the latest audited net asset value for 20 consecutive trading days[167]. - The total amount used for stock repurchase should not exceed 30% of the net profit attributable to shareholders from the previous fiscal year[162]. - The company will require newly appointed directors and senior management to adhere to the same commitments made by existing directors and senior management at the time of the IPO[166]. - The company will disclose the implementation status of stock price stabilization measures in regular reports[164]. - The stock repurchase plan requires approval from at least two-thirds of the voting rights at the shareholders' meeting[165]. Fundraising and Investment Projects - The company issued 18.23 million new shares, resulting in a total share capital of 72.92 million shares post-issuance[186]. - The fundraising will focus on core business areas, including the construction of a network service platform and a research and development center[186]. - The company aims to strengthen market expansion and improve its business network, leveraging its brand and service advantages to deepen customer relationships[186]. - The company will conduct regular internal audits and cooperate with regulatory banks to ensure proper use of raised funds[186]. - The company acknowledges that the new fundraising projects may initially dilute earnings per share due to the time required for construction and production ramp-up[189].