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].