Core Viewpoint - The company has released a revised response to the Shenzhen Stock Exchange regarding its application for issuing convertible bonds, detailing its business development and financial status. Financial Performance - The company's gross profit margin has declined over the past three years, with figures of 47.71%, 38.46%, and 33.25% for 2022, 2023, and 2024 respectively [2] - In Q1 2025, the company reported revenue of 58.76 million yuan, a year-on-year decrease of 24.20%, and a net profit of -13.95 million yuan, a decline of 526.51% [2] - Cash flow from operating activities showed significant volatility, with a net cash flow of -59.14 million yuan in 2023 due to increased employee numbers, while it improved to 115.72 million yuan in 2024 [2] Business Analysis - The decline in gross profit margin is primarily attributed to the custom software business, influenced by complex delivery processes for strategic clients, low margins on new business, and rising labor costs [3] - Sales to the top five clients have decreased as a percentage of total revenue since 2023, reflecting the company's efforts to expand its customer base and new business [3] - The company maintains stable and sustainable long-term relationships with its major clients, with no significant dependency on any single client [3] R&D and Internal Control - R&D expenses have fluctuated significantly, with amounts of 96.97 million yuan, 90.41 million yuan, 46.99 million yuan, and 43.63 million yuan over the past four years [4] - The company has clear standards for distinguishing R&D activities from production activities, ensuring accurate allocation of R&D costs [4] - Internal control systems related to contract performance are well-established and effectively executed [4] Future Outlook - Despite challenges such as declining gross margins and performance volatility, the company asserts it has normal cash flow and a reasonable asset-liability structure [5] - The company expects that its cumulative net cash flow from operating activities will cover its total working capital needs over the next three years [5] - Future strategies include focusing on innovation and intelligence, enhancing business layout, strengthening market leadership, increasing product R&D, and optimizing management systems to improve core capabilities [5]