2021-08-30 Advanced Digital Communication (300541) issued a notice saying: Xu Haidong of the Financial Association, Liang Wei investigated our company on 2021-08-26, and the survey was received by Zhu Huyong, secretary of the board of directors, and Xu Na, representative of securities affairs.

The main contents of this survey are as follows:
The company's semi-annual report shows that financial information innovation has played a leading role in the company's business. What are the competitive advantages of advanced digital communication in the face of information innovation opportunities? At present, what is the biggest development opportunity for the company? Financial informatization is the core business area of the company, and it is still the largest source of profit for the company at present. In recent years, the company's income from financial information business shows a steady growth trend. Recently, the field of financial information has maintained a high degree of activity, and the application and innovation of information technology is an important driving factor. In the face of the opportunity, we believe that the company has three advantages. First, the company has long adhered to the business model of taking its own copyright software products and solutions as the core. The company's software solution business is mainly carried out around the company's own copyright software products and solutions. Second, the company's long-term cooperation with a large number of high-quality customers in the financial industry will help the company to obtain the market opportunities brought about by customers' Xinchuang; third, the company has established a long-term and good cooperative relationship with suppliers of IT infrastructure products related to Xinchuang, so that the company's products and solutions can quickly adapt to Xinchuang's related servers, operating systems, databases, cloud platforms and other basic products. Judging from the company's business situation in recent years, the most significant impact is the development of customers in the Internet industry, which is the biggest driver of the company's revenue growth. At the same time, the continuous information investment of customers in the traditional financial industry has laid a good foundation for the sustained and stable development of the company. In the long run, the digital transformation of the whole society has brought great opportunities for the company's long-term development. We are actively expanding new business areas and industry customers, and have made positive progress. What is the financial IT industry chain like? Which link of the industry chain is Advanced Digital Communication in? How big is the market? The financial industry is one of the industries with the highest level of informatization, and the scale and sustainability of informatization investment are in the leading level. After nearly 40 years of information construction, the financial industry has formed a very complex and huge information application processing system. Financial information service providers may gain competitive advantage in a few niche areas., The overall market is still highly dispersed. 2 the company is positioned as a financial information application service, providing IT infrastructure, application software system construction services and related system operation and maintenance services for customers in the financial industry. The company's software business focuses on financial business processing, big data management and data analysis, financial business processing, the company's business covers ESB (Enterprise Service bus), accounting, intermediary business, payment business and other sub-areas. In the field of big data management and data analysis, the company is an early service provider involved in data management in China, providing big data management and related data analysis products and application solutions to many customers in the domestic financial industry. How to look at the current financial innovation market? How big is the market space for domestic replacement? After years of financial information construction, the domestic financial industry, represented by commercial banks, has formed a relatively complete information business processing and management system, regardless of the scale of business processing, the amount of data and the complexity of application. are in the global leading level, which means that the scale of the stock information system based on the traditional architecture is very large, on the premise of keeping the system secure and stable. The realization of low-level technology renewal is a complex system engineering, and it will also increase the investment in the construction and transformation of information systems in a certain period of time. At the same time, the application of innovation and new technologies in the financial industry will remain active. The above two factors make there is a huge market space for independent and controllable information technology application innovation. In this process, the suppliers of basic products such as servers, operating systems, databases and cloud platforms are the direct beneficiaries. The application transformation brought about by the replacement of basic products will also bring more market opportunities to application service providers. Government and enterprise business is a customer area that the company is actively expanding recently. At present, the company's main strategy is to focus on the needs of digital transformation of government and enterprises, focusing on breaking through the tobacco industry and the wisdom park market. What is the reason why the company chooses the tobacco industry and the wisdom park market to expand new areas? At present, What is the development of government and enterprise customers? The company classifies the customer business of the financial industry and the Internet industry as the government-enterprise business. Since its inception, the company has been taking financial information as the core business area, but also has been looking for opportunities in other industries. Since 2017, the company has made a breakthrough in the Internet industry, which has become the main driving force of the company's revenue growth in recent years. The Wisdom Park and the tobacco industry are the two industries in which the company has made remarkable progress in many attempts. The company's wisdom park business began its cooperation with Huawei in the field of wisdom park construction in 2019, and at present, more than ten projects are being implemented at the same time. Compared with financial and Internet industry projects, the scale of the wisdom park project is smaller, but due to the large number of various parks and clear information needs, the company believes that there is a larger market space for this business. The company and customers in the tobacco industry have been sporadic and small-scale cooperation, based on the general trend of digital transformation, the tobacco industry is increasing information investment, making use of the company's technology accumulation in IT infrastructure construction and big data field, the company has recently made positive progress in the field of information construction in the tobacco industry. The research and development of legal digital currency bank terminal system has been completed and entered the promotion stage. In your opinion, how much room for growth will the legal tender bank-end system bring to the company in the future? When is it expected to contribute to the company's revenue? In the pilot stage of legal digital currency, the application is mainly focused on the payment function. Domestic commercial banks have established a relatively perfect payment application system, and the system architecture and application architecture are complete. Small-scale transformation of the existing application system will be able to support the legal digital currency payment function. The company has completed the support for legal digital currency in its own payment solution. with the expansion of the scope of legal digital currency pilot, legal digital currency-related projects are more active in the near future. the company is also actively tracking the related project machine-- 3 meeting. Overall, the legal tender pilot phase is small and we do not expect it to have a significant impact on the company's business. The company believes that with the deepening of the application of legal digital currency, There will be more innovative application models, and there are more possibilities for future development. As a professional service provider of financial information, we will closely follow the progress. It is still too early to judge its long-term impact at this stage. The first phase of research and development of smart payment has been completed and pilot promotion has begun. At present, what is the pilot promotion of smart payment? Is there a customer using it? How much revenue growth is expected to be brought to the company in the future? Payment application has always been an important part of the company's software solution. the reason why payment application has become a large class of complex applications is that there are many existing payment channels and great differences in business objects and business processes. the company's intelligent payment solution integrates the existing main payment channels, intelligently selects payment channels according to customers and business characteristics, and completes payment business processing. Optimize the application mode of customer payment. Intelligent payment will be the payment solution promoted by the company in the future, which has been adopted by many provincial-level rural credit. Intelligent payment is oriented to the optimization and transformation of the stock system market, which will not have a significant impact on the company's business. What is the main reason for the sharp drop in cash flow in the company's semi-annual report? To understand the company's cash flow, we should start from the company's business model. The company is not a manufacturing enterprise, the large-scale cash expenditure is mainly used for the pre-procurement of IT infrastructure construction projects, the company first signs contracts or orders with customers, according to customer contracts or orders, purchases IT infrastructure products, pays the purchase payment, delivers the products to customers after delivery, and provides related services in accordance with the contract agreement. After the completion of the project, the revenue is confirmed through customer acceptance. Recover the contract payment according to the contract agreement. From the payment of the purchase to the collection of the contract, there will be a certain cycle, and the time point in the middle is reflected by a large cash outflow. In most cases, the company's large cash outflow means that the client's ongoing IT infrastructure project contract is large.

Advanced digital communication main business: technology development, technology transfer, technology consulting, technical services; computer technology training; basic software services; application software services; computer system services; data processing; computer maintenance; sales of self-developed products, computers, software and auxiliary equipment, electronic products, machinery and equipment, communications equipment; import and export of goods, technology import and export, import and export agents. (market entities independently choose business projects and carry out business activities in accordance with the law; projects that must be approved according to law shall carry out business activities in accordance with the approved contents after approval by relevant departments; business activities of projects prohibited or restricted by the industrial policy of the state and this city shall not be engaged in.)

The advanced digital communication 2021 report shows that the company's main income is 2.195 billion yuan, up 138.79% from the same period last year; net profit from the home is 107 million yuan, up 68.97% from the same period last year; deducting non-net profit from 107 million yuan, up 70.05% from the same period last year; debt ratio 51.86%, investment income 84.9309 million yuan, financial expenses 19.6098 million yuan, gross profit margin 7.03%.