Core Points - The Ministry of Industry and Information Technology conducted an administrative inspection of Wotong Electronic Certification Service Co., Ltd. regarding its electronic certification services [1] - The company was found to have several violations, including failure to provide effective proof of identity verification for applicants and not adequately informing applicants before accepting certificate applications [1] - The company did not use technology and equipment that meet national security standards and lacked the necessary documentation for using cryptographic services [1] - The Ministry has ordered the company to rectify these violations in accordance with relevant regulations and will continue to strengthen supervision and management of the electronic certification service industry [1] Company Summary - Wotong Electronic Certification Service Co., Ltd. was found to have failed in identity verification and applicant notification processes [1] - The company did not comply with national security standards in its electronic certification service system [1] - The Ministry's actions indicate a push for accountability and compliance within the electronic certification service sector [1] Industry Summary - The Ministry of Industry and Information Technology is enhancing oversight of the electronic certification service industry to protect public interests [1] - There is an emphasis on enforcing corporate responsibility within the industry to ensure compliance with legal and regulatory standards [1] - The ongoing inspections and regulations reflect a broader effort to maintain the integrity and security of electronic certification services in China [1]

Core Insights - Digital Certification, established in 2001 and listed on the Shenzhen Stock Exchange in 2016, is a leading player in the domestic electronic certification industry, providing services such as electronic certification, security integration, and consulting [1] Group 1: Business Performance - In Q3 2025, Digital Certification reported revenue of 509 million yuan, ranking 46th among 102 companies in the industry, with the industry leader Shanghai Steel Union generating 57.318 billion yuan [2] - The net profit for the same period was -116 million yuan, placing the company 91st in the industry, while the top performer, Desay SV, achieved a net profit of 1.805 billion yuan [2] Group 2: Financial Ratios - As of Q3 2025, Digital Certification's debt-to-asset ratio was 45.34%, exceeding the industry average of 31.94%, up from 39.28% in the previous year [3] - The gross profit margin stood at 44.10%, higher than the industry average of 41.71%, but down from 49.35% in the same period last year [3] Group 3: Executive Compensation - The chairman, Zhan Banghua, received a salary of 1.2106 million yuan in 2024, an increase of 456,500 yuan from 2023 [4] - The general manager, Lin Xueyan, earned 1.1887 million yuan in 2024, up by 434,600 yuan compared to the previous year [4] Group 4: Shareholder Information - As of September 30, 2025, the number of A-share shareholders decreased by 14.83% to 24,600, while the average number of shares held per shareholder increased by 17.41% to 10,700 [5]

1. Report Industry Investment Rating - No information provided 2. Core View of the Report - The report focuses on the Q3 2025 performance briefing of Digital Certification, covering questions from investors and company responses regarding business operations, finance, and development prospects [23] 3. Summary by Directory 01. Research Basic Situation - Research object: Digital Certification [16] - Industry: Software development [16] - Reception time: October 30, 2025 [16] - Company reception staff: Chairman Zhan Banghua, General Manager Lin Xueyan, Board Secretary Qi Xiubin, Financial Officer Gao Qingshan, Independent Director Niu Hongjun [16] 02. Detailed Research Institutions - The Q3 2025 performance briefing was conducted remotely online and was open to all investors [19] 03. Research Institution Proportion - No information provided 04. Main Content Materials - **Loss and Turnaround**: Affected by intensified market competition and project implementation cycles, the company's operating income in the first three quarters of 2025 decreased by about 25% year - on - year. Meanwhile, R & D and sales expenses increased. The board of directors conducts performance evaluations on senior executives. In Q4, the company will promote business, accelerate project implementation, and improve performance [23] - **Financial Impairment**: The company did not experience significant financial impairment. In January - September 2025, the impairment provision was - 842,900 yuan. In July 2025, the company hired ShineWing Certified Public Accountants (Special General Partnership) as the 2025 audit institution [23][24] - **Business Expansion after Reorganization**: The company is a leading network security solution provider. After becoming a subsidiary of Beijing Data Group in September 2025, it will continue to focus on network security, driven by cryptographic technology, and has advantages in multiple fields [25] - **Role of Independent Directors**: The company has an internal compliance mechanism. Independent directors play roles in decision - making, supervision, and consultation through participation in board and special committee meetings [25]

Financial Performance - The company's revenue for the first three quarters of 2025 decreased by approximately 25% compared to the same period last year [3] - The impairment provision for the period from January to September 2025 was recorded at -842.90 million [4] Management and Governance - The company has a performance assessment mechanism for executives, in compliance with state-owned enterprise regulations [3] - Independent directors play a significant role in corporate governance, participating in decision-making and oversight through various committees [5] Business Development - The company aims to enhance its business by accelerating project implementation and improving project acceptance [3] - As a subsidiary of Beijing Data Group, the company focuses on network security solutions, with a vision to protect users' network infrastructure and data [4][5] Strategic Focus - The company is committed to advancing its capabilities in digital government, smart healthcare, digital finance, enterprise digitization, and smart education [5] - The change in controlling shareholder to Beijing Data Group does not alter the actual controller, which remains the Beijing State-owned Assets Management Company [5]

Core Insights - Digital Authentication's stock price increased by 9.24% year-to-date, with a recent 2.51% rise over the last five trading days, but a 5.87% decline over the past 20 days [2] - The company reported a significant decrease in revenue and net profit for the first nine months of 2025, with revenue of 509 million yuan, down 24.82% year-on-year, and a net loss of 114 million yuan, down 321.65% year-on-year [2] Financial Performance - As of September 30, 2025, Digital Authentication's total revenue was 509 million yuan, reflecting a year-on-year decrease of 24.82% [2] - The company recorded a net profit of -114 million yuan for the same period, representing a year-on-year decrease of 321.65% [2] Shareholder Information - The number of shareholders decreased by 14.83% to 24,600 as of September 30, 2025, while the average number of circulating shares per person increased by 17.41% to 10,667 shares [2] - The company has distributed a total of 144 million yuan in dividends since its A-share listing, with 17.55 million yuan distributed over the past three years [3] Stock Market Activity - Digital Authentication's stock price was 34.29 yuan per share with a market capitalization of 9.258 billion yuan as of October 28 [1] - The stock experienced a net inflow of 2.0083 million yuan from main funds, with significant buying and selling activity recorded [1] Business Overview - Digital Authentication, established on February 28, 2001, specializes in electronic certification services, security integration, security consulting, and operation and maintenance services [2] - The company's revenue composition includes electronic certification services (31.24%), network security services (29.16%), network security products (28.36%), and network security integration (11.24%) [2]

Core Viewpoint - Beijing Digital Certification Co., Ltd. reported significant declines in revenue and net profit for the third quarter and the first three quarters of the year, indicating ongoing financial challenges for the company [2][3]. Financial Performance - For the third quarter, the company achieved revenue of 184 million yuan, a decrease of 30.58% year-on-year [3]. - The net profit attributable to shareholders was -24.07 million yuan, reflecting a year-on-year decline of 1238.74% [3]. - The net profit after deducting non-recurring gains and losses was -24.64 million yuan, down 5459.1% year-on-year [3]. - For the first three quarters, total revenue was 509 million yuan, a decline of 24.82% compared to the same period last year [2]. - The net profit attributable to shareholders for the first three quarters was -114.2 million yuan, a decrease of 321.65% year-on-year [2]. Cash Flow and Earnings - The net cash flow from operating activities was -70.73 million yuan for the first three quarters [3]. - Basic earnings per share were -0.4238 yuan [2]. Expense Management - Sales expenses increased by 13.56% year-on-year, while R&D expenses grew by 0.53% [3]. - Management expenses decreased by 18.65%, and financial expenses saw a significant reduction of 60.10% [3]. Shareholder Actions - Executives have engaged in share reduction activities, with the CEO and chairman planning to sell portions of their shares due to personal financial needs [3]. - The CEO, Lin Xueyan, completed a share reduction plan prior to the third quarter report, selling 460,000 shares at an average price of 30.29 yuan and 36.60 yuan per share [3][4]. Shareholding Structure Change - On September 5, the company announced a change in its controlling shareholder, with the state-owned shares being transferred to Beijing Data Group Co., Ltd., while the actual controller remains Beijing State-owned Assets Management Co., Ltd. [4]. - Following the transfer, Beijing Data Group directly holds 70.86 million shares, representing 26.24% of the total shares, and indirectly holds an additional 70.84 million shares, totaling 52.48% of the company [4]. Company Background - Digital Certification was established on February 28, 2001, and was listed on the Shenzhen Stock Exchange in 2016, focusing on electronic certification services, cybersecurity products, integration, and services [5].

Company Overview - Digital Certification Co., Ltd. is located in Haidian District, Beijing, established on February 28, 2001, and listed on December 23, 2016. The company's main business includes electronic certification services, security integration, security consulting, and operation and maintenance services [1]. Financial Performance - As of June 30, 2025, Digital Certification reported a revenue of 325 million yuan, a year-on-year decrease of 21.13%. The net profit attributable to shareholders was -90.35 million yuan, a year-on-year decrease of 208.89% [2]. - The company has cumulatively distributed 144 million yuan in dividends since its A-share listing, with 17.55 million yuan distributed over the past three years [3]. Stock Performance - On September 18, the stock price of Digital Certification fell by 2.02%, closing at 36.45 yuan per share, with a trading volume of 194 million yuan and a turnover rate of 2.00%. The total market capitalization is 9.842 billion yuan [1]. - Year-to-date, the stock price has increased by 16.12%, but it has decreased by 3.37% over the last five trading days and by 7.98% over the last 20 days [1]. Shareholder Information - As of June 30, 2025, the number of shareholders increased by 22.71% to 28,900, with an average of 9,085 circulating shares per person, a decrease of 18.51% [2]. - Among the top ten circulating shareholders, Southern CSI 1000 ETF is the eighth largest with 1.2469 million shares, while Huabao CSI Financial Technology Theme ETF is the ninth largest with 1.1610 million shares, having increased by 67,900 shares compared to the previous period [3]. Business Segments - The revenue composition of Digital Certification is as follows: electronic certification services 31.24%, network security services 29.16%, network security products 28.36%, and network security integration 11.24% [1].

Group 1 - The stock price of Digital Certification increased by 2.02% on September 16, reaching 37.85 CNY per share, with a trading volume of 2.28 billion CNY and a market capitalization of 10.219 billion CNY [1] - Year-to-date, Digital Certification's stock price has risen by 20.58%, with a 5-day increase of 5.70%, a 20-day decrease of 5.30%, and a 60-day increase of 21.70% [1] - The company has a diverse revenue structure, with electronic certification services contributing 31.24%, network security services 29.16%, network security products 28.36%, and network security integration 11.24% [1] Group 2 - As of June 30, Digital Certification reported a total revenue of 325 million CNY for the first half of 2025, a year-on-year decrease of 21.13%, and a net profit of -90.3523 million CNY, a decrease of 208.89% [2] - The company has distributed a total of 144 million CNY in dividends since its A-share listing, with 17.55 million CNY distributed over the past three years [3] - The number of shareholders increased by 22.71% to 28,900 as of June 30, while the average circulating shares per person decreased by 18.51% to 9,085 shares [2]

Group 1 - The company is a leading provider of cybersecurity solutions, offering electronic certification services, cybersecurity products, cybersecurity integration, and cybersecurity services to clients nationwide [1] - Currently, the company does not engage in RWA (Risk-Weighted Assets) business [1]

Core Viewpoint - The company, Digital Certification (300579.SZ), confirmed that it does not currently engage in RWA business, focusing instead on cybersecurity solutions and services [1]. Company Overview - Digital Certification is a leading provider of cybersecurity solutions in China, offering electronic certification services, cybersecurity products, integration, and services [1]. Business Focus - The company primarily serves a national customer base with its cybersecurity offerings, indicating a strong market presence in this sector [1].