Shareholder Returns and Equity Management - The company plans to repurchase shares worth between RMB 9 million and RMB 18 million to enhance its long-term incentive mechanism and attract talent[5]. - A cash dividend of RMB 1.50 per 10 shares was distributed, totaling RMB 17,953,855.65, based on a total of 119,692,371 shares eligible for distribution[6]. - The company completed its annual equity distribution for 2021 in June 2022, reinforcing its commitment to shareholder returns[6]. - The company has implemented an employee stock incentive plan, granting 3 million restricted stocks at a price of 3.5 yuan per share to 31 core employees[82]. - The company plans to repurchase between 1,000,000 and 2,000,000 shares, representing 0.833%-1.667% of the total share capital, with a maximum repurchase price set at 8.85 CNY per share[84]. - As of the reporting period, the company has repurchased 479,329 shares, accounting for 0.40% of the total share capital and 23.97% of the planned repurchase quantity, with a total expenditure of 2,897,307.29 CNY[85]. - The company reported a profit distribution of -27,685,000.00 CNY to shareholders during the period[166]. Financial Performance and Revenue - The company achieved operating revenue of ¥210,696,503.44, representing a year-on-year increase of 20.71%[37]. - The net profit attributable to shareholders decreased by 26.60% to ¥19,398,646.34 compared to the same period last year[28]. - Total operating revenue for the first half of 2022 reached ¥210,696,503.44, an increase of 20.7% compared to ¥174,540,583.51 in the same period of 2021[137]. - The company's total revenue for the first half of 2022 was CNY 210,696,503.44, representing a year-on-year increase of 20.71% compared to CNY 174,540,583.51 in the same period last year[50]. - The gross profit margin decreased to 21.49% from 27.97% in the previous year[28]. - The company reported a significant decline in net cash flow from operating activities, down 68.88% to ¥6,322,115.85[30]. - The company's net profit for the first half of 2022 was CNY 19,398,646.34, a decrease of 26.60% from CNY 26,429,292.71 in the previous year, attributed to rising costs and lower gross margins[50]. Assets and Liabilities - Total assets increased by 9.59% to ¥578,318,720.47 at the end of the reporting period[29]. - The company's accounts receivable amounted to RMB 123,979,800.91, representing 21.44% of total assets, highlighting potential cash flow risks[14]. - The company's inventory rose by 15.77% to CNY 126,918,282.31, suggesting increased production or stockpiling in anticipation of future demand[46]. - Total liabilities increased from ¥111,694,668.38 to ¥161,826,967.18, representing a rise of approximately 45%[131]. - The company's total assets reached ¥578,318,720.47, up from ¥527,718,275.93, indicating an increase of about 9.5%[131]. - The company's cash and cash equivalents decreased from ¥32,543,320.93 to ¥20,476,518.57, a decline of approximately 37.1%[129]. - The company's accounts payable increased by 59.16% to CNY 74,655,892.55, reflecting higher procurement costs due to increased production orders[48]. Research and Development - The company continues to focus on R&D and innovation, leveraging its core technologies in hydraulic cylinder production[34]. - Research and development expenses grew by 21.07% year-on-year, with the addition of 1 authorized invention patent and 1 utility model patent, enhancing the company's market share[39]. - The company invested ¥8,291,880.40 in research and development during the first half of 2022, compared to ¥6,848,822.66 in the same period of 2021, an increase of 21.0%[138]. - The company is committed to technological innovation and green manufacturing, aligning with social responsibility and environmental protection[68]. Market Position and Risks - The company achieved a customer concentration ratio of 65.27% from its top five clients, indicating a stable yet risky revenue source[14]. - The company faces risks related to raw material price fluctuations, which could impact its production costs and overall profitability[14]. - The company is focusing on optimizing procurement management to mitigate the impact of raw material price fluctuations on operations[70]. - The company is recognized as a "National High-tech Enterprise" and has a series of proprietary technology patents[35]. - The company is focusing on optimizing production processes and resource allocation to meet the rising demand for mining and construction machinery[38]. Corporate Governance and Structure - The company has a total of 120,000,000 shares, with 75.21% being restricted shares and 24.79% being unrestricted shares[97]. - The largest shareholder holds 33.65% of the total shares, amounting to 40,383,000 shares[97]. - The company has 4,868 shareholders as of the reporting period[97]. - The company has a stock option plan with unexercised shares totaling 5,197,500[121]. - The company has not reported any significant changes in its operational structure or major asset disposals[167]. Compliance and Accounting - The financial statements were approved by the board of directors on August 19, 2022[172]. - The company follows the accounting standards set by the Ministry of Finance and the China Securities Regulatory Commission, ensuring the financial statements reflect the true financial condition as of June 30, 2022[177]. - The company has not changed its accounting policies or estimates compared to the previous year[167]. - The company includes all controlled subsidiaries in its consolidated financial statements, ensuring a comprehensive view of its financial status[185].

Corporate Achievements and Recognition - In March 2021, the company obtained the Equipment Manufacturing Qualification Certificate from the Central Military Commission, allowing it to independently undertake military equipment business, enhancing its competitiveness in the military sector[5]. - In September 2021, the company was recognized as a "Specialized, Refined, Characteristic, and Innovative 'Little Giant' Enterprise" by the Ministry of Industry and Information Technology, valid for three years from July 1, 2021, to June 30, 2024[6]. - The company has been recognized for its research and development capabilities, which are essential for meeting military equipment procurement standards[5]. - The company is recognized as a high-tech enterprise with a focus on developing proprietary technologies and patents in hydraulic cylinder production[45]. Financial Performance - The company's operating revenue for 2021 was CNY 335,626,283.33, representing a 5.58% increase compared to CNY 317,889,137.69 in 2020[30]. - The net profit attributable to shareholders for 2021 was CNY 42,660,494.59, a decrease of 29.39% from CNY 60,413,505.17 in 2020[30]. - The gross profit margin for 2021 was 26.14%, down from 30.27% in 2020[30]. - Total assets increased by 11.13% to CNY 527,718,275.93 in 2021, compared to CNY 474,882,248.86 in 2020[32]. - Total liabilities rose by 43.95% to CNY 111,694,668.38 in 2021, up from CNY 77,592,823.35 in 2020[32]. - The company's cash flow from operating activities for 2021 was CNY 29,807,503.10, a significant increase of 1,535.84% from CNY 1,822,152.16 in 2020[34]. - The weighted average return on equity for 2021 was 10.30%, down from 22.45% in 2020[30]. - The company's inventory turnover rate for 2021 was 2.91, down from 3.74 in 2020[34]. Customer and Market Dynamics - The top five customers accounted for 63.40% of the company's sales, indicating a high customer concentration risk[14]. - The company has established strong relationships with specialized vehicle manufacturers and coal mining equipment manufacturers, which are crucial for maintaining its market position[14]. - Revenue from overseas sales of special dump truck cylinders increased by 103.65%, while revenue from military equipment cylinders grew by 155.66%[50]. - The coal mining industry saw a record coal production of 4.13 billion tons in 2021, with a year-on-year growth of 5.7%, driving demand for mining equipment[58]. - Sales of excavating machinery reached 342,800 units in 2021, reflecting a year-on-year growth of 4.6%, despite a market adjustment in the latter part of the year[59]. Research and Development - The company emphasizes continuous technological innovation and product development to maintain its competitive edge in the industry[14]. - The company's R&D expenses increased by 8.4% in 2021, with 6 new utility model patents granted, focusing on electric cylinders and other high-end products[51]. - The company participated in 12 R&D projects during the reporting period, with 9 completed and 3 ongoing, focusing on new products and applications in hydraulic cylinders[100][101]. - The company intends to maintain R&D investment to meet market demands, including the development of hydraulic components for wind power and military applications[116]. Risks and Challenges - The company faces risks from fluctuating raw material prices, particularly steel, which significantly impacts production costs[14]. - The company faced challenges from rising costs of raw materials and logistics, impacting production and profitability[49]. - The company recognizes the uncertainty in economic conditions that may impact the demand for hydraulic products, linked to macroeconomic trends[118]. - The company has a significant accounts receivable risk but maintains strong relationships with major clients, minimizing default risk[123]. Employee and Governance - The total number of employees increased from 354 to 432, with a net addition of 78 employees during the reporting period[180]. - The company implemented a stock incentive plan, with 675,000 shares (15% of total restricted stock) released from restrictions in May 2021[179]. - The company has established a robust internal control management system to ensure compliance with legal and regulatory requirements[193]. - The governance structure of the company is deemed effective, providing adequate protection and equal rights to all shareholders[194]. Shareholder and Capital Management - The total number of unrestricted shares increased from 16,594,000 (20.98%) to 29,743,500 (24.79%) during the reporting period[149]. - The total share capital rose from 79,100,000 to 120,000,000 shares, reflecting a significant increase in equity[149]. - The company plans to distribute a cash dividend of 1.5 per 10 shares and no stock bonus or capital increase[166]. - The company has returned 8,000,000 RMB of temporarily idle raised funds to the dedicated account as scheduled[160].

Corporate Achievements and Recognition - In March 2021, the company obtained the Equipment Manufacturing Qualification Certificate from the Central Military Commission, allowing it to independently undertake military equipment projects, enhancing its competitiveness in the military sector[5]. - In September 2021, the company was recognized as a "Specialized, Refined, Characteristic, and Innovative 'Little Giant' Enterprise" by the Ministry of Industry and Information Technology, valid for three years from July 1, 2021, to June 30, 2024[6]. Financial Performance - The company's operating revenue for 2021 was CNY 335,626,283.33, representing a 5.58% increase compared to CNY 317,889,137.69 in 2020[30]. - The net profit attributable to shareholders for 2021 was CNY 42,660,494.59, a decrease of 29.39% from CNY 60,413,505.17 in 2020[30]. - The gross profit margin for 2021 was 26.14%, down from 30.27% in 2020[30]. - Total assets increased by 11.13% to CNY 527,718,275.93 in 2021, compared to CNY 474,882,248.86 in 2020[32]. - Total liabilities rose by 43.95% to CNY 111,694,668.38 in 2021, up from CNY 77,592,823.35 in 2020[32]. - The company's cash flow from operating activities for 2021 was CNY 29,807,503.10, a significant increase of 1,535.84% from CNY 1,822,152.16 in 2020[34]. - The weighted average return on equity for 2021 was 10.30%, down from 22.45% in 2020[30]. - The company's inventory turnover rate for 2021 was 2.91, down from 3.74 in 2020[34]. - The company's debt-to-asset ratio was 21.17% at the end of 2021, compared to 16.34% at the end of 2020[32]. Customer and Market Dynamics - The top five customers accounted for 63.40% of the company's sales, indicating a high customer concentration risk[14]. - The company has established strong relationships with well-known specialized vehicle manufacturers and coal mining equipment manufacturers, which are crucial for its market position[14]. - The company maintained a stable business model with no significant changes in its core operations or customer types during the reporting period[46]. - The company faced challenges such as rising costs of raw materials and logistics, impacting production and profitability[49]. Research and Development - The company emphasizes continuous technological innovation and product development to maintain its competitive edge in the industry[14]. - The company's R&D expenses increased by 8.4% in 2021, with 6 new utility model patents granted, focusing on electric cylinders and other high-end products[51]. - The company continues to invest in R&D and expand its product offerings to capture new market opportunities[49]. - The company is collaborating with Henan University of Science and Technology and Qingdao University of Science and Technology on various R&D projects, focusing on hydraulic systems and components[101]. Risk Management - The company faces risks from fluctuating raw material prices, particularly steel, which significantly impacts production costs[14]. - The company has not experienced significant changes in major risks during the reporting period, maintaining a stable risk profile[15]. - The company aims to reduce high customer concentration risk by strengthening existing customer relationships and expanding into new sales regions[121]. - The company has a strong relationship with major clients, minimizing the risk of default on accounts receivable, and will implement strict bad debt provisions[122]. Governance and Compliance - The company’s governance structure complies with relevant laws and regulations, ensuring all shareholders have equal rights and protections[193]. - The company’s internal control management system was continuously improved to ensure compliance and effective operation[192]. - The company’s major decisions were made following the required procedures, with no significant defects reported[194]. - The governance mechanisms, including independent directors and board secretaries, are continuously improved to comply with relevant laws and regulations[200]. Employee Management and Incentives - The company has implemented a salary policy based on position, duties, and performance, aiming to enhance employee satisfaction and retention[180]. - The company employed a total of 432 employees at the end of the reporting period, an increase of 78 employees from the beginning of the period[179]. - The company implemented its first restricted stock incentive plan in 2021, granting restricted stocks to 12 newly identified core employees[185]. - The company’s stock incentive plan aims to support long-term strategic goals and align interests between employees and shareholders[185]. Future Outlook - In 2022, the company anticipates challenges from reduced downstream customer demand and rising raw material costs, but aims for rapid revenue growth compared to the previous year[114]. - The company plans to implement integrated product solutions to meet customer needs and enhance market share[115]. - Continuous R&D investment will focus on heavy-duty lifting cylinders and electric cylinders for wind power, as well as hydraulic components for military applications[115].

Financial Performance - The company achieved operating revenue of CNY 97,195,679.92, representing a year-on-year increase of 18.34% due to strong downstream demand and a significant increase in sales of hydraulic cylinders for coal mining equipment, which grew by 630.28% compared to the same period last year[19]. - The net profit attributable to shareholders was CNY 7,399,683.63, a decrease of 41.69% year-on-year, primarily due to a decline in overall gross margin and increased R&D expenses[19]. - Total operating revenue for Q1 2022 reached CNY 97,195,679.92, an increase of 18.4% compared to CNY 82,131,997.01 in Q1 2021[43]. - Net profit for Q1 2022 was CNY 7,399,683.63, a decrease of 41.0% from CNY 12,689,676.10 in Q1 2021[45]. - The total comprehensive income for Q1 2022 was CNY 7,399,683.63, down from CNY 12,689,676.10 in Q1 2021, indicating a decline of 41.0%[45]. Assets and Liabilities - The total assets as of March 31, 2022, were CNY 564,746,556.99, reflecting a 7.02% increase from the end of the previous year[17]. - The company reported a total liability ratio of 24.91% for both the parent and consolidated entities, an increase from 21.17% year-on-year[17]. - Total current liabilities amounted to CNY 118,233,376.35, which is an increase of 10.6% from CNY 106,859,187.54[36]. - The company's total liabilities were CNY 140,655,434.64, up 25.9% from CNY 111,694,668.38 in the previous year[37]. - The total assets of the company reached CNY 564,746,556.99, reflecting an increase of 7.0% from CNY 527,718,275.93[36]. Cash Flow - The net cash flow from operating activities was negative at CNY -2,988,553.06, indicating a cash outflow compared to CNY -16,375,303.57 in the same period last year[17]. - The cash flow from operating activities in Q1 2022 was negative at CNY -2,988,553.06, an improvement from CNY -16,375,303.57 in Q1 2021[49]. - The net cash flow from financing activities in Q1 2022 was CNY 19,746,596.40, a significant increase from CNY -161,584.76 in Q1 2021[50]. - The cash inflow from operating activities was CNY 50,312,887.84, down from CNY 61,779,843.88 in the previous year[53]. - The company reported a net increase in cash and cash equivalents of CNY 3,735,703.29, contrasting with a decrease of CNY 34,016,937.57 in the same quarter last year[53]. Research and Development - The number of R&D personnel increased, contributing to higher R&D expenses and stock compensation costs compared to the previous year[19]. - Research and development expenses for Q1 2022 were CNY 3,377,668.99, compared to CNY 2,980,375.26 in Q1 2021, marking an increase of 13.4%[44]. - The company incurred financial expenses of CNY 121,483.14 in Q1 2022, significantly higher than CNY 8,422.85 in Q1 2021[48]. Shareholder Information - The top ten shareholders hold a total of 91,295,330 shares, representing 76.09% of the company's total shares[25]. - The largest shareholder, Wang Wanfa, holds 40,383,000 shares, accounting for 33.65% of the total shares[25]. - Shareholders' equity totaled CNY 424,091,122.35, an increase of 1.6% from CNY 416,023,607.55[37]. Government Support and Guarantees - The company received government subsidies amounting to CNY 266,956.13 during the reporting period[21]. - As of the reporting period, the company has provided related guarantees amounting to 35.8 million yuan for bank loans, which is within the expected limit[30]. Operational Highlights - The company maintained a strong growth in overseas revenue, which increased by 41.73% year-on-year[19]. - The company is focusing on expanding its production capacity, as indicated by the increase in construction in progress to CNY 102,122,913.32, up 23.0% from CNY 83,062,996.29[36].