Capinfo : 2019 Interim Report 2019-9-19

Capinfo Company Limited

(a joint stock limited company incorporated in the People's Republic of China with limited liability)

（於中華人民共和國註冊成立之股份有限公司）

（Stock Code 股份代號：1075）

Interim Report 2019

中 期 報 告

MANAGEMENT DISCUSSION

AND ANALYSIS

BUSINESS REVIEW

In the first half of 2019, under the guidance of Xi Jinping's Thought on Socialism with Chinese Characteristics for a New Era, the Group, staying true to its original aspiration and having its mission always in mind, actively served the overall strategic interest of the capital city, actively participated in the construction of Beijing sub- center, the coordinated development of Beijing-Tianjin-Hebei, the information construction of the Winter Olympics and so on. During the Reporting Period, the Group continued to optimize its three basic platforms, enhanced the fundamental driving force for development, and further promoted technological innovation and market development in five major areas. The Group made progress in its businesses.

For the six months ended 30 June 2019, the main operating revenue of the Group amounted to RMB413.25 million, representing an increase of 14.02% as compared with the same period of last year; profit attributable to owners of the Company arrived at RMB33.38 million, representing an increase of 33.12% as compared with the same period of last year.

Smart Infrastructure Service

During the Reporting Period, the Group's integrated network platform of government affairs operated smoothly. The Group succeeded in fulfilling the mission in network security protection on the Second Belt and Road Forum for International Cooperation, Asian civilizations dialogue conference, World Horticultural Exhibitions, National and Beijing Two Sessions and other important national affairs. The business of trusted cloud platform was launched successfully. Capinfo government cloud platform, with IaaS "enhanced" level security capability, passed the network security review by the Office of the Central Cyberspace Affairs, and is the first service provider in Beijing municipal government cloud data center passed the cloud computing service network security review. Big data platform and business monitoring system for medical insurance were established. Open source components were applied in the establishment of monitoring system of big data system platform as well as Beijing Medical Insurance and 12345 public service hotline projects.

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MANAGEMENT DISCUSSION

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Smart Government Affair Service

During the Reporting Period, the Group continued to strengthen its leading position in smart government affair services. Beijing-China Website (首都之窗) and sub-sites bureaus and commissions operated in a safe and reliable manner. The Group effectively protected the construction, operation and maintenance of www.bj148.org (首都政法綜治網), Beijing Economic and Technological Development Zone, Beijing Municipal Administration of Industry and Commerce and other larger-scale website clusters. The development of project of upgrade and transformation of online reservation processing of exit-entry documents of exit-entry administration information system of Beijing Municipal Public Security Bureau successfully completed. The website of Ministry of Veterans Affairs and online Beijing government service center successively docked with national government affair service platform. Shunyi District Government Service Hall undertaken by the Group has become the most comprehensive government service entity hall with the most complete business and the most extensive field in Beijing. In the first half of the year, the Group successfully won the bid for "Upgrade and Renovation of the Website of Beijing Municipal Public Complaints Office", "Upgrade and Renovation of the Website Clusters of Shijingshan District of Beijing Shijingshan District Economic, Information Technology Committee" and "Information Construction of the Administrative Service Area of Chaoyang District" and other projects. The public credit information service platform of Beijing officially passed the acceptance procedures, which promoted the modernization of the government governance system and governance capacity to a new level.

Smart City Management

During the Reporting Period, the Group continued to expand its smart city management business. The "Changping Sharp Eyes" project under construction is expected to be completed within the year. The first phase of "Skynet" project in Neiqiu County, Hebei Province, was completed and 24-hour digital monitoring of Neiqiu County was implemented, facilitating the digital transformation of local infrastructure. The "113 Video surveillance system of Miyun district branch of Beijing Public Security Bureau" project was completed and officially launched. The Group successfully won the bid for "Traffic Command Center Information System Platform Project of Miyun district branch of Beijing Public Security Bureau", which laid a

Capinfo Company Ltd Interim Report 2019 3

MANAGEMENT DISCUSSION

AND ANALYSIS

solid foundation for further consolidating and expanding the information system construction of district-level traffic command center in Beijing. Final inspection for the motor vehicle emission management platform construction project was completed. The motor vehicle law enforcement APP provided services for 160,000 person-time staff inspections in the past year, with a total of 2.64 million heavy-duty diesel vehicles inspected, and received favorable comments from users.

Smart Medical and Health Service

During the Reporting Period, the Group continued to play its role in benefiting people through smart medical and health services. In accordance with the theme educational requirements of "staying true to its original aspiration and having its mission always in mind", the Group dedicated more efforts towards service of people's livelihood system. The Medical Insurance Information System and the social security card system effectively supported and met the actual needs of real-time medical settlement of 23 million cardholders. The important task of "medicines centralized procurement and use of national institutions" was successfully accomplished. The "Comprehensive reform of medical consumption linkage" was launched in a stable manner. The "Basic Medical Insurance Upgrading and Renovation Project for Urban and Rural Residents" organized and undertaken by the Group passed final acceptance, and about 2.4 million new rural cooperative insurance participants have been included in the scope of Beijing's basic medical insurance services, ensuring the fair entitlement to basic medical insurance rights of urban and rural residents. The number of existing accounts of "Beijing Hospital Medical" has exceeded 19 million, and the proportion of hospitals which accepted registration and settlement through "Beijing Hospital Medical" has reached one-third of the total number of hospitals in Beijing. "e-Window" and the social security online declaration system of Beijing have been seamlessly connected, and the network access between the medical insurance network and the government external network has been opened up. The number of newly established enterprises which completed the social security insurance registration through "e-Window" has exceeded 5,000, of which small-scale enterprises accounted for more than 90%. The construction of commercial insurance settlement platform was carried forward in an orderly manner, and the technical docking with the information system of Shanghai Insurance Exchange was completed.

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