数字政通(300075) - 2025 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides essential notices, outlines the report's structure, lists reference documents, and defines key terms for clarity Important Notice The board and senior management assure report accuracy, highlight risk factors, and confirm no half-year cash dividends, bonus shares, or capital reserve conversions - The company's board of directors and senior management commit to the truthfulness, accuracy, and completeness of the semi-annual report content[3] - The company advises investors to pay attention to "Section 3 Management Discussion and Analysis", "Article 10, Risks Faced by the Company and Countermeasures"[3] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4] Table of Contents This section lists the report's overall structure, comprising eight main chapters covering company profile, financial indicators, management discussion, corporate governance, significant events, share changes, bond information, and financial reports - The report is divided into eight main chapters, covering key information on company operations, finance, and governance[6] Catalogue of Reference Documents This section specifies the types and locations of the company's reference documents for the reporting period, including financial statements signed by the legal representative, original public disclosure files, and the original semi-annual report, all kept at the Board Secretary's office - Reference documents include financial statements signed by the legal representative, original public disclosure files, and the original semi-annual report[8][9][10] - All reference documents are kept at the company's Board Secretary's office[11] Definitions This section provides definitions for common terms used in the report, including company names, reporting period, currency units, and major subsidiary names, to ensure clear understanding of the report content - "Company", "the Company", "Digital Government", and "Issuer" all refer to Beijing Digital Government Technology Co., Ltd[12] - "Reporting Period" refers to January 1, 2025, to June 30, 2025[12] - The report lists definitions for several subsidiaries, such as Beijing Digital Zhitong Technology Co., Ltd. and Baoding Jindi Underground Pipeline Detection Engineering Co., Ltd[12] Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, and presents key accounting data and financial indicators for the reporting period Company Profile The company's stock abbreviation is "Digital Government", stock code 300075, listed on the Shenzhen Stock Exchange, with Wang Dong as its legal representative - Company stock abbreviation: Digital Government, stock code: 300075[15] - Company stock listed on: Shenzhen Stock Exchange[15] - Company legal representative: Wang Dong[15] Contact Person and Information Qiu Luming is the Board Secretary and Dong Zhuang is the Securities Affairs Representative, both located at International Software Building, No. 9 Zhongguancun Software Park, Haidian District, Beijing, with unified contact details - Board Secretary: Qiu Luming, Securities Affairs Representative: Dong Zhuang[16] - Contact address: International Software Building, No. 9 Zhongguancun Software Park, Haidian District, Beijing[16] - Telephone: 4000830075, Fax: 010-56161688, Email: egova@egova.com.cn[16] Other Information The company's registered address, office address, website, email, information disclosure, and reference locations remained unchanged during the reporting period, but a new investor hotline was activated on April 23, 2025 - The company's registered address, office address, website, and email remained unchanged during the reporting period[17] - Information disclosure and reference locations remained unchanged during the reporting period[18] - The company activated a new investor hotline: 4000830075, effective April 23, 2025[20] Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue decreased by 40.34% year-on-year, and net profit attributable to shareholders declined by 125.98% to a loss, while net cash flow from operating activities increased by 45.63% Key Accounting Data and Financial Indicators (Current Reporting Period vs. Prior Year Period) | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 321,393,391.55 | 538,712,454.88 | -40.34% | | Net Profit Attributable to Shareholders of Listed Company | -18,692,724.65 | 71,960,062.58 | -125.98% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains and Losses) | -34,122,141.73 | 70,830,624.67 | -148.17% | | Net Cash Flow from Operating Activities | -61,194,454.81 | -112,544,150.62 | 45.63% | | Basic Earnings Per Share (RMB/share) | -0.0301 | 0.1167 | -125.79% | | Diluted Earnings Per Share (RMB/share) | -0.0301 | 0.1167 | -125.79% | | Weighted Average Return on Net Assets | -0.53% | 1.76% | -2.29% | | Current Reporting Period End vs. Prior Year End | | | | | Total Assets | 4,070,667,802.35 | 4,359,134,803.69 | -6.62% | | Net Assets Attributable to Shareholders of Listed Company | 3,506,222,093.33 | 3,524,914,817.98 | -0.53% | Differences in Accounting Data Under Domestic and Overseas Accounting Standards During the reporting period, the company reported no differences in net profit and net assets between financial statements prepared under international or overseas accounting standards and Chinese accounting standards - The company reported no differences in net profit and net assets between financial statements disclosed under international accounting standards and Chinese accounting standards during the reporting period[22] - The company reported no differences in net profit and net assets between financial statements disclosed under overseas accounting standards and Chinese accounting standards during the reporting period[23] Non-recurring Gains and Losses Items and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 15.43 million RMB, primarily from disposal of non-current assets, government subsidies, fair value changes, and other non-operating income and expenses Non-recurring Gains and Losses Items and Amounts | Item | Amount (RMB) | | :--- | :--- | | Gains and losses from disposal of non-current assets | 14,158,159.41 | | Government subsidies recognized in current profit and loss | 1,536,113.73 | | Gains and losses from changes in fair value and disposal of financial assets and liabilities | 69,367.23 | | Other non-operating income and expenses | 1,429,451.69 | | Less: Income tax impact | 1,740,773.42 | | Impact on minority interests (after tax) | 22,901.56 | | Total | 15,429,417.08 | - The company has no other profit and loss items that meet the definition of non-recurring gains and losses[26] - The company has not classified any non-recurring gains and losses items as recurring gains and losses[27] Management Discussion and Analysis This section provides an in-depth analysis of the company's main business operations, core competitiveness, financial performance, asset and liability status, investment activities, and risk factors during the reporting period Main Business Activities During the Reporting Period As a pioneer in smart city construction, the company focuses on urban digital governance platforms and data operation services, making progress in "one-network management", urban lifelines, autonomous intelligent collection, and low-altitude economy SaaS platforms, despite local fiscal pressures - As a pioneer in smart city construction, the company actively responds to central urban work conference directives, focusing on urban governance and digitalization transformation[29] - During the reporting period, the company's operating revenue decreased by 40.34% year-on-year, net profit attributable to shareholders decreased by 125.98%, while net cash flow from operating activities increased by 45.63%[30] - The company views Artificial Intelligence (AI) as an opportunity for innovation and breakthrough, driving urban governance intelligence with a dual-model approach using its "Renhe" large model and DeepSeek large model[31][35] Urban Digital Governance Core Platform The company deepens its urban digital governance efforts, centering on the "one-network management" platform, promoting benchmark projects, enhancing government service hotlines with AI large models, and achieving significant progress in urban operation management and lifeline safety platforms - The company promotes "one-network management" benchmark projects nationwide, successfully implementing multiple projects in Tianjin, Shijingshan District of Beijing, and Changchun, Jilin[32] - Leveraging its self-developed "Renhe" large model as a technical foundation, integrated with the DeepSeek large model, the company is upgrading the 12345 government service hotline from digitalization to intelligence[33][35] - The company's market share for provincial and direct-controlled municipality urban operation management service platforms exceeds 85%, and for prefecture-level and above cities, it exceeds 70%[42] Urban Data Operation Services Business Driven by national policies, the company's urban data operation services business accelerates data element market construction, creating a comprehensive urban governance intelligent body through integrated air-space-ground intelligent collection, AI, visual perception, and digital twin technologies - Intensive national policies support data element market construction and low-altitude economy development, providing strategic opportunities for the company's data operation services[48][60] - The company launched an air-space-ground intelligent collection service model, integrating various smart devices such as satellites, drones, unmanned grid vehicles, and quadruped robots to build a three-dimensional urban intelligent collection network[51] - "Qiji" unmanned vehicles have been commercially deployed in over 30 cities, with the number of deployed vehicles increasing by 150% compared to the end of 2024[54] - The "Xingkui Project" has gradually developed into an underlying support platform for the urban low-altitude economy, building a low-altitude intelligent service operation platform with "full airspace coverage, full-process control, and full-element collaboration"[61] Core Competitiveness Analysis The company holds a leading position in smart cities, being the first developer of a new digital urban management platform, participating in national standard setting, serving over 500 cities, and possessing strong innovation capabilities, an experienced team, and extensive intellectual property - The company is the first system developer of a new digital urban management platform nationwide, serving over 500 cities and 1,500 districts/counties, covering over 550 million people and over 70% of urban built-up areas[69][70] - The company actively introduces new technologies such as mobile internet, IoT, big data, cloud computing, and intelligent AI, focusing on low-code product R&D, forming a multi-dimensional business matrix from "Renhe Large Model" to "Qijian + Qiji + Xingkui + Jingshi"[71][72] - The company holds a Class A qualification for computer information system integration, a Class A surveying and mapping qualification for geographic information systems, a Class A security engineering enterprise qualification certificate, and possesses 53 invention patents and 575 software copyrights[74] Main Business Analysis During the reporting period, the company's main business revenue decreased by 40.34% year-on-year, primarily due to slower local government fiscal spending, with declines in system software, system integration, and operation services, and a general decrease in gross profit margins Major Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | Year-on-Year Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 321,393,391.55 | 538,712,454.88 | -40.34% | Slower local government fiscal spending, delayed project initiation, contract signing, and execution | | Operating Cost | 210,934,524.74 | 304,074,806.06 | -30.63% | Decrease in operating revenue | | Financial Expenses | -2,039,933.82 | -11,362,290.91 | 82.05% | Decrease in interest income | | Income Tax Expense | -6,868,860.37 | 4,026,979.71 | -270.57% | Decrease in operating profit | | Net Cash Flow from Operating Activities | -61,194,454.81 | -112,544,150.62 | 45.63% | Lower costs and expenses, and strengthened cash flow management by the company | Products or Services Accounting for Over 10% | Product or Service | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Profit Margin (%) | Year-on-Year Change in Operating Revenue (%) | Year-on-Year Change in Operating Cost (%) | Year-on-Year Change in Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | System Software Business | 160,955,598.45 | 75,260,798.28 | 53.24% | -47.30% | -39.52% | -6.02% | | System Integration Business | 11,243,069.08 | 10,410,249.15 | 7.41% | -68.01% | -67.77% | -0.67% | | Operation Services Business | 149,194,724.02 | 125,263,477.31 | 16.04% | -24.70% | -14.98% | -9.60% | Main Business Cost Composition | Cost Component | Current Reporting Period Amount (RMB) | Proportion of Operating Cost (%) | Prior Year Period Amount (RMB) | Proportion of Operating Cost (%) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Procurement Cost | 85,406,771.42 | 40.49% | 128,918,558.63 | 42.39% | -33.75% | | Labor Cost | 101,517,657.54 | 48.13% | 141,807,981.42 | 46.64% | -28.41% | | Project Travel and Office Expenses | 18,419,657.65 | 8.73% | 28,709,382.55 | 9.44% | -35.84% | | Depreciation and Amortization | 5,590,438.13 | 2.65% | 4,638,883.46 | 1.53% | 20.51% | | Total | 210,934,524.74 | 100.00% | 304,074,806.06 | 100.00% | -30.63% | Non-Main Business Analysis During the reporting period, non-main business activities significantly impacted total profit, with investment income from subsidiary disposal and non-operating income from government subsidies being non-recurring, while asset impairment and credit impairment losses are recurring Non-Main Business Analysis | Item | Amount (RMB) | Proportion of Total Profit (%) | Explanation of Cause | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 14,180,526.59 | -55.39% | Investment income from disposal of subsidiaries | No | | Asset Impairment | -1,325,001.08 | 5.18% | Contract asset impairment provision | Yes | | Non-operating Income | 3,180,447.35 | -12.42% | Government subsidies and liquidated damages income | No | | Non-operating Expenses | 364,482.71 | -1.42% | - | No | | Credit Impairment Loss | -6,245,372.93 | 24.40% | Accounts receivable impairment provision | Yes | Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets and net assets attributable to shareholders both decreased, with a significant reduction in monetary funds due to wealth management product purchases and property acquisition, and a substantial increase in construction in progress Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (RMB) | Proportion of Total Assets (%) | Amount at End of Prior Year (RMB) | Proportion of Total Assets (%) | Change in Proportion (%) | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 658,325,833.13 | 16.17% | 1,538,172,774.44 | 35.29% | -19.12% | Primarily due to purchase of wealth management products and acquisition of properties | | Construction in Progress | 261,532,250.50 | 6.42% | - | - | 6.42% | Primarily due to acquisition of properties | | Short-term Borrowings | 1,786,672.94 | 0.04% | 24,239,562.60 | 0.56% | -0.52% | - | | Lease Liabilities | 1,245,439.27 | 0.03% | 3,983,489.96 | 0.09% | -0.06% | - | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (RMB) | Amount Purchased in Current Period (RMB) | Amount Sold in Current Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 210,728,617.65 | 490,000,000.00 | - | 700,728,617.65 | | Other Equity Instrument Investments | 115,135,915.78 | - | - | 115,135,915.78 | | Accounts Receivable Financing | 2,714,983.60 | 4,855,810.56 | 2,714,983.60 | 4,855,810.56 | | Total Above | 328,579,517.03 | 494,855,810.56 | 2,714,983.60 | 820,720,343.99 | Asset Rights Restricted at the End of the Reporting Period | Item | Book Balance (RMB) | Book Value (RMB) | Type of Restriction | Details of Restriction | | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 23,838,345.09 | 23,838,345.09 | Deposits, frozen | Guarantee deposits, project deposits, frozen funds, etc. | | Fixed Assets | 15,676,791.67 | 8,307,192.70 | Mortgage | Bank financing credit mortgage | | Intangible Assets | 6,229,600.00 | 4,277,658.67 | Mortgage | Bank financing credit mortgage | | Investment Properties | 24,803,370.81 | 13,135,475.85 | Mortgage | Bank financing credit mortgage | Investment Status Analysis During the reporting period, the company's total investment decreased by 100% year-on-year, while financial assets measured at fair value increased to 820.72 million RMB, primarily from self-funded trading financial assets, with all raised funds fully invested and remaining funds permanently supplementing working capital Investment Amount During the Reporting Period | Investment Amount During Reporting Period (RMB) | Investment Amount in Prior Year Period (RMB) | Change (%) | | :--- | :--- | :--- | | 0.00 | 1,950,000.00 | -100.00% | Financial Assets Measured at Fair Value | Asset Category | Initial Investment Cost (RMB) | Amount Purchased in Current Period (RMB) | Amount Sold in Current Period (RMB) | Ending Balance (RMB) | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | | Other | 328,579,517.03 | 494,855,810.56 | 2,714,983.60 | 820,720,343.99 | Own Funds | - As of November 30, 2024, all committed fundraising projects from the company's non-public issuance of shares have been fully invested[96] - The company has permanently supplemented working capital with all remaining raised funds of 51,121,769.32 RMB for daily operations[96] Overview of Wealth Management During the Reporting Period | Specific Type | Source of Funds for Wealth Management | Amount of Wealth Management Transactions (ten thousand RMB) | Unexpired Balance (ten thousand RMB) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 40,000.00 | 60,069.86 | | Brokerage Wealth Management Products | Own Funds | 9,000.00 | 10,003.00 | | Total | | 49,000.00 | 70,072.86 | Major Asset and Equity Sales During the reporting period, the company did not sell any major assets or significant equity - The company did not sell any major assets during the reporting period[107] - The company did not sell any major equity during the reporting period[108] Analysis of Major Holding and Participating Companies The company's major subsidiaries, including Zhengtong Smart City Operation Technology Co., Ltd. and Baoding Jindi Underground Pipeline Detection Engineering Co., Ltd., both achieved profitability during the reporting period, and the sale of Jiangxi Zhengtong City Operation Technology Co., Ltd. had no significant impact on overall operations or performance Major Subsidiaries and Participating Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (RMB) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhengtong Smart City Operation Technology Co., Ltd. | Subsidiary | Computer Services | 50,000,000.00 | 182,773,794.46 | 64,760,876.34 | 107,615,845.01 | 204,247.09 | 233,828.19 | | Baoding Jindi Underground Pipeline Detection Engineering Co., Ltd. | Subsidiary | Underground Pipeline Detection and Testing | 50,000,000.00 | 485,621,695.03 | 379,926,896.67 | 42,572,946.45 | 15,824,420.98 | 13,816,570.30 | - During the reporting period, the company sold Jiangxi Zhengtong City Operation Technology Co., Ltd., which had no significant impact on overall production, operations, or performance[110] Structured Entities Controlled by the Company During the reporting period, the company did not control any structured entities - The company did not control any structured entities during the reporting period[111] Risks Faced by the Company and Countermeasures The company faces risks related to reliance on government procurement, intensifying market competition, and potential loss of core technical personnel, which it addresses through continuous innovation, service enhancement, and talent retention strategies - The company's sales revenue primarily comes from government procurement, facing risks of local fiscal tightening, delays, or reductions in e-government system investments[111] - Rapid development in smart city construction intensifies market competition, and the company's business expansion will lead to competition with more powerful entities, potentially resulting in market share decline and gross profit margin reduction[111] - The software industry is knowledge-intensive, and the company faces the risk of losing core technical personnel, which it addresses through equity incentives, improved welfare benefits, and increased training to stabilize the team[112] Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period During the reporting period, the company hosted multiple institutional investor research activities, providing updates on its AI business, overall operations, and unmanned vehicle business through phone calls and on-site visits, and addressing investor inquiries - On February 24, 2025, the company held online phone discussions with institutions such as Haitong Securities and China Securities, discussing its AI business layout[113] - On May 16, 2025, the company held online phone discussions with institutions such as Minsheng Securities and Bosera Funds, introducing its business operations[113] - On June 11, 2025, the company hosted on-site visits for institutions such as China Construction Bank Fund and Harvest Fund, introducing its unmanned vehicle business layout[113] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company formulated and approved its "Market Value Management System" on April 21, 2025, but has not yet disclosed a valuation enhancement plan - The company has formulated the "Market Value Management System", which was reviewed and approved at the second meeting of the sixth board of directors on April 21, 2025[114] - The company has not yet disclosed a valuation enhancement plan[114] Implementation of "Dual Improvement in Quality and Returns" Action Plan The company has not yet disclosed its "Dual Improvement in Quality and Returns" action plan announcement - The company has not yet disclosed its "Dual Improvement in Quality and Returns" action plan announcement[115] Corporate Governance, Environment, and Society This section details changes in the company's directors, supervisors, and senior management, profit distribution plans, implementation of equity incentive and employee stock ownership plans, environmental information disclosure, and social responsibility initiatives Changes in Company Directors, Supervisors, and Senior Management During the reporting period, supervisors Li Xin, Shao Jianping, and Xing Bangyan left due to term expiration, with Li Xin subsequently elected as an employee representative director due to work reassignment Changes in Company Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Li Xin | Supervisor | Departure | May 16, 2025 | Term expiration | | Shao Jianping | Supervisor | Departure | May 16, 2025 | Term expiration | | Xing Bangyan | Supervisor | Departure | May 16, 2025 | Term expiration | | Li Xin | Employee Representative Director | Election | May 19, 2025 | Work reassignment | Profit Distribution and Capital Reserve Conversion to Share Capital in Current Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[117] Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company's 2023 restricted stock incentive plan's first and second vesting periods failed to meet performance targets, resulting in 3.338 million restricted shares becoming invalid, and the 2023 employee stock ownership plan was also terminated early after failing performance targets - The company's 2023 restricted stock incentive plan's first vesting period failed to meet performance targets, resulting in 1.669 million restricted shares becoming invalid[118] - The company's 2023 restricted stock incentive plan's second vesting period also failed to meet performance targets, resulting in another 1.669 million restricted shares becoming invalid[118] - The company's 2023 employee stock ownership plan's first and second unlocking periods both failed to meet performance targets[119][120] - As of July 14, 2025, all company shares held under the 2023 employee stock ownership plan have been sold, and the plan has been terminated early[121] Environmental Information Disclosure The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[123] Social Responsibility The company is committed to protecting employee rights, providing a safe work environment, fostering talent, adhering to corporate governance standards, safeguarding shareholder and creditor interests, implementing cash dividend policies, and fulfilling other social responsibilities through ethical operations and environmental responsiveness - The company is committed to protecting employees' legitimate rights and interests, providing a healthy and safe working environment, and valuing talent development[123] - The company strictly adheres to laws and regulations, protects the interests of shareholders and creditors, ensures equal rights for all shareholders, and actively implements a cash dividend policy[123] - The company fulfills its social responsibilities through honest operation, lawful taxation, promoting employment, and responding to national environmental protection policies[123] Significant Matters This section covers the fulfillment of commitments by the company and related parties, non-operating fund occupation, illegal external guarantees, auditor appointments, non-standard audit reports, bankruptcy reorganization, litigation, penalties, integrity status, major related-party transactions, and significant contracts Fulfillment of Commitments by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During the Reporting Period and Overdue Unfulfilled Commitments at Period End During the reporting period, commitments made by the company's chairman and actual controller, Wu Qianghua, regarding non-competition, related-party transactions, and fund occupation, as well as the company's commitments concerning equity incentives and employee stock ownership plans, were all fulfilled normally without violations - The company's chairman and actual controller, Wu Qianghua, normally fulfilled commitments regarding non-competition, related-party transactions, and fund occupation[125] - The company's commitment not to provide loans or other financial assistance to equity incentive recipients was normally fulfilled[126] - The company's commitment not to provide loans or other financial assistance to employee stock ownership plan recipients was normally fulfilled[126] Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties of the Listed Company During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties of the listed company - During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties of the listed company[127] Illegal External Guarantees During the reporting period, the company had no illegal external guarantees - The company had no illegal external guarantees during the reporting period[128] Appointment and Dismissal of Accounting Firms The company's semi-annual report was not audited - The company's semi-annual report was not audited[129] Board of Directors and Audit Committee's Explanation on "Non-Standard Audit Report" for the Current Reporting Period The company did not have a non-standard audit report for the current reporting period - The company did not have a non-standard audit report for the current reporting period[130] Board of Directors' Explanation on "Non-Standard Audit Report" for the Prior Year The company did not have a non-standard audit report for the prior year - The company did not have a non-standard audit report for the prior year[130] Bankruptcy Reorganization Matters During the reporting period, the company had no bankruptcy reorganization matters - The company had no bankruptcy reorganization matters during the reporting period[130] Litigation Matters During the reporting period, the company had no significant litigation, arbitration, or other litigation matters - The company had no significant litigation or arbitration matters during the current reporting period[131] - The company had no other litigation matters[131] Penalties and Rectification During the reporting period, the company had no penalties or rectification situations - The company had no penalties or rectification situations during the reporting period[131] Integrity Status of the Company, its Controlling Shareholders, and Actual Controllers During the reporting period, the company, its controlling shareholders, and actual controllers had no unfulfilled effective court judgments or large overdue debts - During the reporting period, the company, its controlling shareholders, and actual controllers had no unfulfilled effective court judgments or large overdue debts[132] Major Related-Party Transactions During the reporting period, the company engaged in daily operational related-party transactions for goods/services procurement totaling 5.21 million RMB and had non-operating related-party receivables of 10.43 million RMB with Xuchang Zhengtong Keyou Digital Industrial Park Co., Ltd., but no related-party transactions involving asset/equity acquisition, sale, or joint external investment occurred Related-Party Transactions for Purchase and Sale of Goods, Provision and Acceptance of Services | Related Party | Type of Related-Party Transaction | Content of Related-Party Transaction | Amount of Related-Party Transaction (ten thousand RMB) | Proportion of Similar Transactions (%) | | :--- | :--- | :--- | :--- | :--- | | Beijing Tongtong Yilian Technology Co., Ltd. | Purchase of goods/acceptance of services | Parking services | 520.94 | 100.00% | Receivables from Related Parties | Related Party | Relationship | Reason for Formation | Non-operating Fund Occupation | Beginning Balance (ten thousand RMB) | Amount Added in Current Period (ten thousand RMB) | Amount Recovered in Current Period (ten thousand RMB) | Interest Rate (%) | Ending Balance (ten thousand RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Xuchang Zhengtong Keyou Digital Industrial Park Co., Ltd. | Associate of the Company | Fund lending | Yes | 1,042.92 | 0.00 | 0.00 | 15.00% | 1,042.92 | - The company had no related-party transactions involving asset or equity acquisition or sale during the reporting period[134] - The company had no related-party transactions involving joint external investment during the reporting period[135] Major Contracts and Their Fulfillment During the reporting period, the company had no trusteeship, contracting, major guarantees, or other significant contracts, but its housing lease contract with Zhongguancun Software Park Development Co., Ltd. for 3,894.04 square meters remains in effect until December 31, 2026 - The company had no trusteeship or contracting situations during the reporting period[140][141] - The company's housing lease contract with Zhongguancun Software Park Development Co., Ltd. for 3,894.04 square meters remains in effect until December 31, 2026[142] - The company had no major guarantee situations during the reporting period[143] - The company had no other major contracts during the reporting period[146] Explanation of Other Significant Matters During the reporting period, the company had no other significant matters requiring explanation - The company had no other significant matters requiring explanation during the reporting period[147] Significant Matters of Company Subsidiaries During the reporting period, the company's subsidiaries had no significant matters requiring disclosure - The company's subsidiaries had no significant matters requiring disclosure[148] Share Changes and Shareholder Information This section details changes in the company's share capital, securities issuance, shareholder numbers, top ten shareholders, and changes in holdings of directors, supervisors, and senior management, as well as any changes in controlling shareholders or actual controllers Share Change Situation During the reporting period, the company's total share capital remained unchanged, but restricted shares decreased by 1,047,750 due to the unlocking of senior management restricted shares, increasing unrestricted shares and reducing the proportion of restricted shares from 17.18% to 17.02% Share Change Situation | Item | Number Before This Change (shares) | Proportion Before This Change (%) | Increase/Decrease in This Change (+, -) Subtotal (shares) | Number After This Change (shares) | Proportion After This Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 106,739,432 | 17.18% | -1,047,750 | 105,691,682 | 17.02% | | II. Unrestricted Shares | 514,390,726 | 82.82% | 1,047,750 | 515,438,476 | 82.98% | | III. Total Shares | 621,130,158 | 100.00% | 0 | 621,130,158 | 100.00% | - Share changes were primarily due to the unlocking of restricted shares held by senior management[152] Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Restricted Shares Unlocked in Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Wu Qianghua | 102,348,733 | 0 | 102,348,733 | Senior management restricted shares | | Wang Dong | 1,052,419 | 225,000 | 827,419 | Senior management restricted shares | | Wang Hongshen | 1,659,780 | 405,000 | 1,254,780 | Senior management restricted shares | | Qiu Luming | 1,476,000 | 367,500 | 1,108,500 | Senior management restricted shares | | Feng Changhao | 202,500 | 50,250 | 152,250 | Senior management restricted shares | | Total | 106,739,432 | 1,047,750 | 105,691,682 | | Securities Issuance and Listing During the reporting period, the company had no securities issuance or listing activities - The company had no securities issuance or listing activities during the reporting period[155] Number of Shareholders and Shareholding At the end of the reporting period, the company had 78,681 common shareholders, with Wu Qianghua as the largest shareholder holding 21.97% of shares, including 102,348,733 restricted shares, while the company's buyback account held 7,274,312 shares not listed among the top ten - Total number of common shareholders at the end of the reporting period: 78,681[156] Top 10 Shareholders' Shareholding | Shareholder Name | Shareholder Nature | Shareholding Proportion (%) | Number of Shares Held at End of Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Wu Qianghua | Domestic Natural Person | 21.97% | 136,464,977 | 102,348,733 | 34,116,244 | | Zuo Zhimin | Domestic Natural Person | 1.39% | 8,613,895 | 0 | 8,613,895 | | Industrial and Commercial Bank of China Co., Ltd. - Golden Eagle Technology Innovation Stock Fund | Other | 0.97% | 5,999,880 | 0 | 5,999,880 | | Xu Xin | Domestic Natural Person | 0.78% | 4,832,291 | 0 | 4,832,291 | | China Merchants Bank Co., Ltd. - Southern CSI 1000 ETF | Other | 0.74% | 4,591,100 | 0 | 4,591,100 | | Li Guozhong | Domestic Natural Person | 0.55% | 3,412,787 | 0 | 3,412,787 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.48% | 2,978,871 | 0 | 2,978,871 | | China Merchants Bank Co., Ltd. - Huaxia CSI 1000 ETF | Other | 0.44% | 2,704,580 | 0 | 2,704,580 | | Bank of Communications Co., Ltd. - Golden Eagle Dividend Value Flexible Allocation Mixed Fund | Other | 0.39% | 2,399,940 | 0 | 2,399,940 | | Industrial and Commercial Bank of China Co., Ltd. - GF CSI 1000 ETF | Other | 0.35% | 2,167,377 | 0 | 2,167,377 | - The company's buyback dedicated securities account held 7,274,312 shares, which are not listed among the top 10 shareholders for the time being[157] Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the shareholdings of the company's directors, supervisors, and senior management - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[159] Changes in Controlling Shareholder or Actual Controller During the reporting period, there were no changes in the company's controlling shareholder or actual controller - The company's controlling shareholder did not change during the reporting period[161] - The company's actual controller did not change during the reporting period[161] Preferred Share Information During the reporting period, the company had no preferred shares - The company had no preferred shares during the reporting period[162] Bond-Related Information This section confirms that the company had no bond-related matters during the reporting period Bond-Related Information During the reporting period, the company had no bond-related matters - The company had no bond-related matters during the reporting period[164] Financial Report This section includes the audit report, comprehensive financial statements (balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for both consolidated and parent company), company basic information, basis of financial statement preparation, significant accounting policies and estimates, taxation, and detailed notes to the consolidated financial statements Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[166] Financial Statements This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively reflecting its financial position, operating results, and cash flows Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were 4.07 billion RMB, a 6.62% decrease from the beginning of the period, with total current assets at 2.96 billion RMB, total non-current assets at 1.11 billion RMB, total liabilities at 554.21 million RMB, and total owners' equity at 3.52 billion RMB Consolidated Balance Sheet Key Data | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 4,070,667,802.35 | 4,359,134,803.69 | | Total Current Assets | 2,958,361,051.30 | 3,446,152,081.17 | | Total Non-current Assets | 1,112,306,751.05 | 912,982,722.52 | | Total Liabilities | 554,208,329.76 | 823,943,791.98 | | Total Owners' Equity | 3,516,459,472.59 | 3,535,191,011.71 | Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were 4.01 billion RMB, a 1.25% decrease from the beginning of the period, with total current assets at 2.68 billion RMB, total non-current assets at 1.33 billion RMB, total liabilities at 582.36 million RMB, and total owners' equity at 3.43 billion RMB Parent Company Balance Sheet Key Data | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 4,007,852,937.76 | 4,058,548,719.60 | | Total Current Assets | 2,682,913,820.92 | 2,962,525,423.29 | | Total Non-current Assets | 1,324,939,116.84 | 1,096,023,296.31 | | Total Liabilities | 582,358,509.48 | 626,886,474.48 | | Total Owners' Equity | 3,425,494,428.28 | 3,431,662,245.12 | Consolidated Income Statement For the first half of 2025, the company's consolidated total operating revenue was 321.39 million RMB, a 40.34% year-on-year decrease, resulting in an operating loss of 28.42 million RMB, a net loss of 18.73 million RMB, and a net loss attributable to parent company shareholders of 18.69 million RMB, with basic earnings per share at -0.0301 RMB/share Consolidated Income Statement Key Data | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 321,393,391.55 | 538,712,454.88 | | Total Operating Costs | 360,105,790.30 | 464,788,804.05 | | Operating Profit | -28,416,364.13 | 76,137,939.05 | | Total Profit | -25,600,399.49 | 76,295,287.65 | | Net Profit | -18,731,539.12 | 72,268,307.94 | | Net Profit Attributable to Parent Company Shareholders | -18,692,724.65 | 71,960,062.58 | | Basic Earnings Per Share | -0.0301 | 0.1167 | Parent Company Income Statement For the first half of 2025, the parent company's operating revenue was 185.83 million RMB, a 51.36% year-on-year decrease, resulting in an operating loss of 15.42 million RMB and a net loss of 6.17 million RMB Parent Company Income Statement Key Data | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Operating Revenue | 185,833,288.94 | 382,076,478.14 | | Operating Profit | -15,424,576.87 | 78,550,312.03 | | Total Profit | -12,694,408.55 | 78,553,310.55 | | Net Profit | -6,167,816.84 | 76,584,692.54 | Consolidated Cash Flow Statement For the first half of 2025, the company's net cash flow from operating activities was -61.19 million RMB, a 45.63% year-on-year increase, net cash flow from investing activities was -760 million RMB, and net cash flow from financing activities was -60.80 million RMB, with cash and cash equivalents at period-end totaling 634.49 million RMB Consolidated Cash Flow Statement Key Data | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -61,194,454.81 | -112,544,150.62 | | Net Cash Flow from Investing Activities | -759,757,274.40 | -603,911,262.37 | | Net Cash Flow from Financing Activities | -60,801,044.18 | -128,373,978.06 | | Net Increase in Cash and Cash Equivalents | -881,752,773.39 | -844,829,391.05 | | Cash and Cash Equivalents at End of Period | 634,487,488.04 | 791,476,678.85 | Parent Company Cash Flow Statement For the first half of 2025, the parent company's net cash flow from operating activities was -14.85 million RMB, net cash flow from investing activities was -758.06 million RMB, and net cash flow from financing activities was -27.18 million RMB, with cash and cash equivalents at period-end totaling 525.69 million RMB Parent Company Cash Flow Statement Key Data | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -14,845,583.58 | -50,018,079.70 | | Net Cash Flow from Investing Activities | -758,055,977.36 | -615,273,101.12 | | Net Cash Flow from Financing Activities | -27,184,917.12 | -132,373,978.06 | | Net Increase in Cash and Cash Equivalents | -800,086,478.06 | -797,665,158.88 | | Cash and Cash Equivalents at End of Period | 525,685,859.00 | 712,276,926.27 | Consolidated Statement of Changes in Owners' Equity For the first half of 2025, the company's consolidated total owners' equity decreased by 18.73 million RMB, primarily due to net loss reducing retained earnings, while share capital, capital reserves, treasury stock, and surplus reserves remained unchanged Consolidated Statement of Changes in Owners' Equity | Item | Beginning Balance (RMB) | Change in Current Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | | Share Capital | 621,130,158.00 | 0.00 | 621,130,158.00 | | Capital Reserves | 1,918,211,453.33 | 0.00 | 1,918,211,453.33 | | Less: Treasury Stock | 100,082,195.57 | 0.00 | 100,082,195.57 | | Surplus Reserves | 146,609,445.87 | 0.00 | 146,609,445.87 | | Retained Earnings | 939,045,956.35 | -18,692,724.65 | 920,353,231.70 | | Total Owners' Equity Attributable to Parent Company | 3,524,914,817.98 | -18,692,724.65 | 3,506,222,093.33 | | Minority Interests | 10,276,193.73 | -38,814.47 | 10,237,379.26 | | Total Owners' Equity | 3,535,191,011.71 | -18,731,539.12 | 3,516,459,472.59 | Parent Company Statement of Changes in Owners' Equity For the first half of 2025, the parent company's total owners' equity decreased by 6.17 million RMB, primarily due to net loss reducing retained earnings, while share capital, capital reserves, treasury stock, and surplus reserves remained unchanged Parent Company Statement of Changes in Owners' Equity | Item | Beginning Balance (RMB) | Change in Current Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | | Share Capital | 621,130,158.00 | 0.00 | 621,130,158.00 | | Capital Reserves | 2,016,041,877.36 | 0.00 | 2,016,041,877.36 | | Less: Treasury Stock | 100,082,195.57 | 0.00 | 100,082,195.57 | | Surplus Reserves | 146,609,445.87 | 0.00 | 146,609,445.87 | | Retained Earnings | 747,962,959.46 | -6,167,816.84 | 741,795,142.62 | | Total Owners' Equity | 3,431,662,245.12 | -6,167,816.84 | 3,425,494,428.28 | Company Basic Information Beijing Digital Government Technology Co., Ltd., established on November 6, 2001, and listed on the Shenzhen Stock Exchange (stock code 300075) on April 14, 2010, specializes in smart city application software development and services, with Wu Qianghua as its ultimate controlling party - The company was established on November 6, 2001, and listed on the Shenzhen Stock Exchange on April 14, 2010, with stock code 300075[198][199] - The company primarily engages in the development and sale of professional smart city application software, providing technical support and follow-up services[199] - As of June 30, 2025, the company's total share capital was 621,130,158 shares, and the ultimate controlling party is Mr. Wu Qianghua[199][200] Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, using the accrual method, and accounting elements are measured at historical cost, with no significant doubts about its ability to continue as a going concern - The company prepares its financial statements on a going concern basis, uses the accrual method for accounting, and generally measures accounting elements at historical cost[201] - There are no matters or circumstances that could raise significant doubts about the company's ability to continue as a going concern[202] Significant Accounting Policies and Accounting Estimates This section details the company's adherence to enterprise accounting standards, accounting period, operating cycle, functional currency, and materiality criteria, along with comprehensive disclosures on various accounting policies and estimates for business combinations, financial instruments, contract assets, inventories, long-term equity investments, investment properties, fixed assets, borrowing costs, intangible assets, long-term deferred expenses, contract liabilities, employee compensation, provisions, share-based payments, revenue, contract costs, government grants, deferred income tax assets/liabilities, and leases, including significant management judgments and estimates - The company's financial statements comply with the "Enterprise Accounting Standards" issued by the Ministry of Finance and related regulations, accurately and completely reflecting its financial position[204] - The company's accounting year is from January 1 to December 31 of the Gregorian calendar, and the actual preparation period for these financial statements is from January 1, 2025, to June 30, 2025[205] - Based on the business model for managing financial assets and the characteristics of contractual cash flows, the company classifies financial assets into three categories: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in current profit or loss[223] - The company uses the expected credit loss model to assess impairment of financial instruments and applies a simplified measurement method for accounts receivable and contract assets to measure loss provisions[227][228] - The company's revenue recognition involves significant accounting judgments and estimates, including identifying customer contracts, estimating collectibility of consideration, identifying performance obligations, estimating variable consideration, and determining the method of fulfilling performance obligations[311] - When performing impairment tests on goodwill, the company needs to calculate the present value of the estimated future cash flows of the related asset group or asset group portfolio containing goodwill, and make significant judgments on output, selling prices, operating costs, and discount rates[315] Taxation The company's main taxes include VAT, urban maintenance and construction tax, corporate income tax, education surcharge, and local education surcharge, with the company and some subsidiaries enjoying high-tech enterprise income tax benefits (15% rate) and VAT immediate refund policies for software products, while some subsidiaries apply a 5% corporate income tax rate as small low-profit enterprises Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable Value-Added Amount | 13%, 9%, 6%, 5%, 3% | | Urban Maintenance and Construction Tax | Amount of Turnover Tax Payable | 7% | | Corporate Income Tax | Taxable Income | See table below | | Education Surcharge | Amount of Turnover Tax Payable | 3% | | Local Education Surcharge | Amount of Turnover Tax Payable | 2% | - Beijing Digital Government Technology Co., Ltd. and Beijing Digital Zhitong Technology Co., Ltd. apply a 15% corporate income tax rate and enjoy the VAT immediate refund policy for software products[322][323] - Several subsidiaries, as small low-profit enterprises, actually apply a 5% corporate income tax rate during the current reporting period[324] Notes to Consolidated Financial Statement Items This section provides detailed disclosures on the ending balances, beginning balances, and current period changes for various asset, liability, owners' equity, and profit/loss items in the company's consolidated financial statements, including monetary funds, trading financial assets, accounts receivable, contract assets, other receivables, inventories, long-term equity investments, intangible assets, goodwill, short-term borrowings, accounts payable, employee compensation payable, operating revenue, and costs, with explanations for significant changes Monetary Funds | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Cash on Hand | 125,814.57 | 129,814.57 | | Bank Deposits | 650,687,773.07 | 1,530,696,782.59 | | Other Monetary Funds | 7,512,245.49 | 7,346,177.28 | | Total | 658,325,833.13 | 1,538,172,774.44 | Trading Financial Assets | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Financial assets measured at fair value with changes recognized in current profit or loss | 700,728,617.65 | 210,728,617.65 | | Of which: Wealth management products | 700,728,617.65 | 210,728,617.65 | | Total | 700,728,617.65 | 210,728,617.65 | Accounts Receivable by Age | Age | Ending Book Balance (RMB) | Beginning Book Balance (RMB) | | :--- | :--- | :--- | | Within 1 year (inclusive) | 542,285,587.03 | 472,905,758.81 | | 1 to 2 years | 330,693,427.25 | 484,777,865.17 | | 2 to 3 years | 346,126,518.24 | 315,051,919.63 | | Over 3 years | 471,254,213.84 | 515,878,660.54 | | Total | 1,690,359,746.36 | 1,788,614,204.15 | Operating Revenue and Operating Cost | Item | Current Period Revenue (RMB) | Current Period Cost (RMB) | Prior Period Revenue (RMB) | Prior Period Cost (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 317,179,628.76 | 208,858,366.23 | 535,068,226.78 | 301,795,584.17 | | Other Business | 4,213,762.79 | 2,076,158.51 | 3,644,228.10 | 2,279,221.89 | | Total | 321,393,391.55 | 210,934,524.74 | 538,712,454.88 | 304,074,806.06 | Research and Development Expenses During the reporting period, total R&D expenses were 76.05 million RMB, comprising 48.93 million RMB in expensed R&D and 27.12 million RMB in capitalized R&D, with key capitalized projects including Xingkui Platform V1.0, Vehicle Intelligent Recognition and Collection 5.0, All-Industry Data Collection Platform 1.0, and Renhe Large Model Operation and Management AI Knowledge Base, all expected to be completed by March 2026 R&D Expense Situation | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Employee Compensation | 54,548,251.33 | 61,260,010.28 | | Amortization of Self-Developed Intangible Assets | 19,586,921.36 | 18,629,145.79 | | Depreciation Expense | 438,503.40 | 316,169.65 | | Travel Expenses | 288,882.17 | 827,714.32 | | Equipment and Material Costs | 363,500.00 | 216,886.69 | | Office Expenses | 146,057.68 | 104,432.10 | | Other | 682,829.72 | 171,020.30 | | Total | 76,054,945.66 | 81,525,379.13 | | Of which: Expensed R&D | 48,934,103.85 | 51,872,250.74 | | Capitalized R&D | 27,120,841.81 | 29,653,128.39 | Important Capitalized R&D Projects | Project | R&D Progress | Estimated Completion Time | Start of Capitalization | | :--- | :--- | :--- | :--- | | Xingkui Platform V1.0 | In progress | March 01, 2026 | January 01, 2024 | | Vehicle Intelligent Recognition and Collection 5.0 | In progress | March 01, 2026 | January 01, 2025 | | All-Industry Data Collection Platform 1.0 | In progress | March 01, 2026 | January 01, 2025 | | Renhe Large Model Operation and Management AI Knowledge Base | In progress | March 01, 2026 | January 01, 2025 | Changes in Consolidation Scope During the reporting period, the company disposed of Jiangxi Zhengtong City Operation Technology Co., Ltd., losing control, and established a new subsidiary, Beijing Digital Government Technology Service Co., Ltd - The company disposed of Jiangxi Zhengtong City Operation Technology Co., Ltd., losing control, with a disposal price of 45,720,000.00 RMB, generating an investment income of 13,974,259.86 RMB[540] - The company established a new subsidiary, Beijing Digital Government Technology Service Co., Ltd., with a registered capital of 5 million RMB and a 100% shareholding, though capital contributions have not yet been paid in[541] Interests in Other Entities This section discloses the company's interests in subsidiaries, joint ventures, and associates, including several wholly-owned or controlled subsidiaries primarily engaged in computer services and software development, with Wisdom (Yiyuan) Urban Construction and Operation Co., Ltd. and Zibo Luyou Zhengtong Private Equity Investment Partnership (Limited Partnership) identified as significant associates - The company owns Beijing Digital Zhitong Technology Co., Ltd., Beijing Digital Government Data Technology Co., Ltd., Shanghai Zhengtong Information Technology Co., Ltd., and other wholly-owned or controlled subsidiaries[542][543][544] - Zhengtong Smart City Operation Technology Co., Ltd. is a significant non-wholly-owned subsidiary of the company, w