Contracts and Agreements - In March 2022, the company signed a supply contract for the largest pipeline ball valve (56" CL600) in China with the National Petroleum and Natural Gas Pipeline Group[4]. - In June 2022, the company distributed a cash dividend of 5 RMB for every 10 shares and issued 10 bonus shares for every 10 shares held, based on a total share capital of 51.775 million shares[4]. Financial Performance - The company achieved operating revenue of ¥82,095,879.98, an increase of 31.86% compared to the same period last year[24]. - The net profit attributable to shareholders decreased by 23.55% to ¥8,171,461.59[24]. - The gross profit margin decreased to 33.36% from 43.81% in the previous year[24]. - The weighted average return on net assets based on net profit attributable to shareholders was 2.11%, down from 4.45%[24]. - The company's total operating costs rose to ¥54,697,654.83, reflecting a 56.39% increase from the previous period[46]. - The net profit for the current period is 8,171,461.59 yuan, a decrease of 23.55% from 10,688,228.59 yuan in the previous year[42]. - The company reported a total revenue for the reporting period of 32,399,572 yuan, representing a 62.58% increase compared to the previous period[107]. Assets and Liabilities - The total assets at the end of the period were ¥452,709,334.88, a decrease of 4.39% from the beginning of the period[25]. - The total liabilities decreased by 3.38% to ¥87,704,001.56[25]. - The net assets attributable to shareholders were ¥365,005,333.32, down 4.63%[25]. - The company's cash and cash equivalents decreased by 69.63%, from 168,043,179.43 yuan to 51,032,000.51 yuan[37]. - Inventory increased by 27.17%, rising from 57,884,566.08 yuan to 73,614,397.81 yuan, attributed to an increase in sales orders[38]. - The company's accounts receivable increased by 7.81%, from 98,883,816.54 yuan to 106,604,191.30 yuan[37]. Research and Development - The company has 20 ongoing R&D projects, focusing on high-pressure components for well control and robotic assembly lines for pneumatic actuators[33]. - The company holds a total of 33 authorized patents, including 5 invention patents and 28 utility model patents[33]. - Research and development expenses for the first half of 2022 were ¥4,935,631.76, slightly down from ¥5,078,685.81 in the same period of 2021, indicating stable investment in innovation[126]. Customer Concentration and Risks - The top five customers accounted for 61.06% of the company's sales, indicating a high customer concentration risk[10]. - The company has a significant reliance on major clients, which poses a risk if these clients terminate their cooperation due to product or service quality issues[10]. - The company faced risks related to macroeconomic fluctuations, which could adversely affect future operating performance due to reduced fixed asset investments in the natural gas sector[10]. - The company has committed to enhancing product and service quality to maintain stable relationships with major clients and reduce dependency on single customers[61]. - The company plans to expand its market and product development to mitigate risks associated with macroeconomic fluctuations and customer concentration[62]. Governance and Compliance - The actual controller, Li Yu, holds 51.76% of the company's shares, which poses a risk of improper control over company decisions[64]. - The company has committed to ensuring fair transactions and compliance with legal regulations regarding related party transactions[78]. - The company has no overdue commitments or violations of promises during the reporting period[79]. - The actual controller has promised that any future business developments will not harm the interests of the company and its shareholders, ensuring priority for the company in related business areas[76]. Employee and Management Changes - The company added 26 new employees during the reporting period, bringing the total number of employees to 184[117]. - The number of technical personnel increased from 35 to 40, reflecting a growth of 14.29%[117]. - The company appointed two new independent directors, 廖进兵 and 兰华开, following the resignation of one independent director[109]. - The total number of management personnel remained stable at 12, despite one addition and one departure[117]. Cash Flow and Investment Activities - The net cash flow from operating activities improved by ¥9,356,815.94, representing a 49.89% increase, attributed to increased sales collections and reduced tax payments[55]. - Investment activities generated a net cash outflow of -¥84,459,297.95, a significant decrease of 909.29% compared to the previous period, due to increased investments in low-risk financial products[55]. - The company reported a significant investment outflow of 85,122,720.18 yuan in the first half of 2022, compared to only 4,425,995.92 yuan in the same period of 2021[129]. Legal and Regulatory Matters - The company has not reported any significant litigation or arbitration matters during the reporting period, indicating a stable legal environment[71]. - The company is actively pursuing the completion of property rights certification for its main operational site to mitigate legal risks[67]. Market Position and Competition - The company is focused on the natural gas sector, providing valve actuators and safety control systems, which are crucial for the industry[10]. - The company has established a strong position in the market but faces potential competition that could impact its performance[10]. Financial Instruments and Accounting Policies - The company adheres to the accounting standards set by the Ministry of Finance, ensuring that its financial statements accurately reflect its financial condition and operating results[149]. - The company uses RMB as its functional currency for accounting purposes, with a fiscal year running from January 1 to December 31[150][152]. - Financial instruments are classified based on the company's business model, with specific criteria for measuring financial assets and liabilities[156].

Financial Performance - Total revenue for Q1 2022 reached RMB 23,311,201.48, an increase of 59.84% compared to RMB 14,584,026.84 in Q1 2021[13] - Net profit attributable to shareholders decreased by 56.16% to RMB 465,095.26 from RMB 1,060,920.57 in the same period last year[13] - Net profit after deducting non-recurring gains and losses surged by 3,026.51% to RMB 429,812.24, up from RMB 13,747.35 in Q1 2021[13] - Basic and diluted earnings per share for Q1 2022 were both CNY 0.01, down from CNY 0.03 in Q1 2021[39] - Total operating revenue for Q1 2022 was CNY 23,311,201.48, an increase of 59.9% compared to CNY 14,584,026.84 in Q1 2021[37] - Total operating costs for Q1 2022 were CNY 22,872,696.15, up from CNY 14,743,767.04 in Q1 2021, reflecting a 55.1% increase[37] - Net profit for Q1 2022 was CNY 465,095.26, a decrease of 56.1% from CNY 1,060,920.57 in Q1 2021[38] Assets and Liabilities - The company's total assets as of March 31, 2022, were RMB 458,967,598.20, a decrease of 3.07% from RMB 473,497,209.67 at the end of 2021[13] - The company's asset-liability ratio remained stable at 16.51% for both the parent and consolidated entities[13] - Total liabilities decreased to CNY 75,781,131.21 in Q1 2022 from CNY 90,775,837.94 in Q1 2021, a reduction of 16.5%[35] - Non-current assets totaled CNY 94,628,199.90 as of the end of Q1 2022, compared to CNY 92,785,699.58 at the end of Q1 2021[35] Cash Flow - The cash flow from operating activities showed a significant decline of 904.26%, resulting in a net outflow of RMB 14,513,982.08 compared to an inflow of RMB 1,804,631.89 in the previous year[13] - In Q1 2022, the cash inflow from operating activities was CNY 24,993,929.11, a decrease from CNY 38,669,731.11 in Q1 2021, representing a decline of approximately 35.4%[41] - The cash outflow from operating activities totaled CNY 39,507,911.19 in Q1 2022, compared to CNY 36,865,099.22 in Q1 2021, indicating an increase of about 7.0%[42] - The net cash flow from operating activities was negative CNY 14,513,982.08 in Q1 2022, contrasting with a positive CNY 1,804,631.89 in Q1 2021[42] - Investment activities resulted in a net cash outflow of CNY 83,762,810.23 in Q1 2022, significantly higher than the outflow of CNY 41,668,043.89 in Q1 2021, marking an increase of approximately 100.5%[42] - The total cash flow from financing activities was negative CNY 92,222.22 in Q1 2022, slightly worse than the negative CNY 87,500.00 in Q1 2021[42] - The company experienced a net decrease in cash and cash equivalents of CNY 98,369,014.53 in Q1 2022, compared to a decrease of CNY 39,950,912.00 in Q1 2021, representing a decline of about 146.0%[42] Shareholder Information - The total number of ordinary shareholders increased to 8,960 as of the end of the reporting period[21] - The company reported a total of 35,060,992 shares held by the top shareholders, representing 67.72% of the total shares[24] - Li Yu holds 26,800,700 shares, accounting for 51.76% of the total shares, while Chen Liang holds 2,820,730 shares, representing 5.45%[24] - The top shareholders have no interrelationships, except for Li Yu and Li Qing, who are father and daughter[24] Other Financial Information - The overall gross margin decreased due to a higher proportion of low-margin product sales and rising raw material costs[15] - Government subsidies recognized in the current period amounted to RMB 41,509.43, contributing to the non-recurring gains[18] - The company has no outstanding litigation or arbitration matters during the reporting period[27] - There were no significant related party transactions or external guarantees reported[27] - The company has fulfilled all disclosed commitments without any overdue obligations[28] - The company did not implement any profit distribution or capital increase from reserves during the reporting period[30] - The company has no plans for equity incentives or share buybacks at this time[30] - Research and development expenses for Q1 2022 were CNY 2,582,300.09, slightly up from CNY 2,472,068.76 in Q1 2021[38] - The company reported a financial expense of CNY -12,844.52 in Q1 2022, compared to CNY 22,842.21 in Q1 2021, indicating improved financial management[38] - Deferred income tax liabilities were CNY 2,245,595.15 in Q1 2022, down from CNY 2,347,009.47 in Q1 2021, reflecting a decrease of 4.3%[35] - The company reported a cash outflow of CNY 3,762,810.23 for fixed asset purchases in Q1 2022, compared to CNY 1,847,562.24 in Q1 2021, which is an increase of approximately 103.5%[42]

Financial Performance - The company's operating revenue for 2021 was RMB 214,538,588.83, representing a year-on-year increase of 13.92% compared to RMB 188,323,494.03 in 2020[30]. - The net profit attributable to shareholders for 2021 was RMB 46,292,816.57, which is a 3.76% increase from RMB 44,617,353.49 in 2020[30]. - The total assets increased by 54.82% to RMB 473,497,209.67 in 2021, up from RMB 305,843,147.08 in 2020[31]. - The company's gross profit margin decreased to 40.52% in 2021 from 49.36% in 2020[30]. - The weighted average return on equity based on net profit attributable to shareholders was 17.96% in 2021, down from 19.07% in 2020[30]. - The net cash flow from operating activities was negative RMB 3,010,287.16 in 2021, a decline of 108.01% compared to RMB 37,562,167.59 in 2020[34]. - The company's total liabilities increased by 44.49% to RMB 90,775,837.94 in 2021 from RMB 62,823,011.57 in 2020[31]. - The total equity attributable to shareholders increased by 57.49% to RMB 382,721,371.73 in 2021 from RMB 243,020,135.51 in 2020[31]. - The company reported a net profit growth rate for 2021 of 3.76%, compared to a decrease of 9.04% in 2020[35]. - The company achieved operating revenue of ¥214,538,588.83, an increase of 13.92% compared to the previous year[46]. Customer Dependency - The company achieved a sales concentration of 65.30% from its top five customers in 2021, indicating a high dependency on major clients[12]. - In 2021, the top five customers accounted for 65.30% of total sales, indicating a high customer concentration risk[104]. Research and Development - The company holds a total of 23 patents, including 4 invention patents and 19 utility model patents, with 2 additional utility model patents newly added during the reporting period[5]. - The company has 14 ongoing R&D projects, focusing on high-pressure components for well control and robotic assembly lines for pneumatic actuators[47]. - The company has increased its R&D personnel from 30 to 35, with the proportion of R&D staff in total employees rising from 20.47% to 22.06%[84]. - R&D expenditure for the reporting period amounted to CNY 10,465,350.22, a decrease of 21.66% compared to the previous period's CNY 13,358,560.29, representing 4.88% of operating revenue[82]. - The company is committed to maintaining its technological advantage through increased investment in product research and development[106]. Market Position and Industry Outlook - The company operates in a stable growth market for natural gas equipment, driven by national policies favoring the development of the natural gas industry[48]. - The domestic natural gas market is characterized by a seller's market, with ongoing investments in pipeline infrastructure expected to reach 240,000 kilometers by 2025[48]. - The natural gas industry is projected to maintain a growth rate of approximately 2% annually over the next two decades, with natural gas becoming the third largest primary energy source globally[97]. - By 2030, natural gas is expected to account for 27.8% of primary energy consumption, closely following oil at 28.5%[97]. - China's natural gas pipeline network is projected to reach 163,000 kilometers by 2025, with an annual growth rate of 9.8%[98]. - The company aims to leverage the growing demand for natural gas to maintain its competitive edge in the industry[95]. Corporate Governance and Compliance - The company has established a complete internal control system to ensure the authenticity, legality, and completeness of accounting data[174]. - The company maintained compliance with legal requirements in convening and voting at shareholder meetings, ensuring equal rights for all shareholders[175]. - The company has not encountered any legal or regulatory violations in its governance practices during the reporting period[181]. - The company has made timely disclosures through the Beijing Stock Exchange's official platform to protect investor interests[182]. - The company established an audit committee under the board of directors in 2021 to oversee financial reporting and auditing processes[183]. Shareholder Information - The largest shareholder, Li Yu, holds 51.76% of the company's shares, maintaining control over significant corporate decisions[136]. - The company reported a decrease in unrestricted shares from 20,120,139 to 16,055,543, a reduction of 4,064,596 shares[131]. - The company’s total number of shares held by the top ten shareholders is 35,130,873, representing 67.87% of total shares[134]. - The company completed a public offering of 8.5 million shares, increasing its total share capital from 42 million to 50.5 million shares[132]. Environmental and Social Responsibility - The company invested nearly 3 million yuan in 2021 to enhance environmental protection facilities and equipment, ensuring compliance with environmental regulations[92]. - The company actively participated in social responsibility initiatives, donating CNY 300,000 to support poverty alleviation efforts in Batang County, Sichuan Province[89]. - The company has implemented strict environmental protection measures, ensuring compliance with national regulations and improving its environmental management practices[90]. Risks and Challenges - The company faces risks related to macroeconomic fluctuations and potential competition that could impact its market position and profitability[12]. - The company is facing risks from geopolitical changes affecting oil and gas prices, which may impact domestic economic activities[103].