Financial Performance - Operating revenue for the first nine months of 2022 was RMB 135,251,191.46, representing a decline of 21.54% year-on-year[15]. - Net profit attributable to shareholders for the same period was RMB 11,951,250.10, down 45.95% compared to the previous year[15]. - Basic earnings per share for the first nine months of 2022 were RMB 0.2040, a decrease of 45.95% from the previous year[15]. - In Q3 2022, operating revenue was RMB 52,588,955.00, down 25.31% from RMB 70,408,025.79 in Q3 2021[16]. - Net profit attributable to shareholders in Q3 2022 was RMB 5,006,724.84, a decrease of 49.03% compared to RMB 9,823,420.08 in Q3 2021[16]. - The net profit for the year-to-date was ¥11,951,250.10, a decrease of ¥10,161,710.04 or 45.95% year-on-year, primarily due to a decrease in operating revenue[19]. - Total operating revenue for Q3 2022 was ¥52,588,955, a decrease of 25.4% compared to ¥70,408,025.79 in Q3 2021[86]. - Net profit for Q3 2022 was ¥5,006,724.84, a decline of 49.0% from ¥9,823,420.08 in Q3 2021[88]. - Total profit of ¥5,531,281.83 for Q3 2022, down 53.0% from ¥11,747,709.99 in Q3 2021[88]. Cash Flow - The net cash flow from operating activities increased significantly to RMB 24,158,815.70, a rise of 149.91% year-on-year[15]. - The net cash flow from operating activities for the year-to-date was ¥24,158,815.70, an increase of ¥14,491,965.10 or 149.91% compared to the same period last year, mainly due to a decrease in cash paid for goods and services[20]. - Operating cash inflow for the first nine months of 2022 was $171.84 million, a decrease from $180.12 million in the same period of 2021, representing a decline of approximately 4.3%[91]. - Net cash flow from operating activities increased significantly to $24.16 million in 2022 from $9.67 million in 2021, marking a growth of approximately 149.5%[92]. - Cash paid for operating activities decreased to $147.68 million in 2022 from $170.46 million in 2021, a reduction of approximately 13.4%[92]. Assets and Liabilities - Total assets as of September 30, 2022, amounted to RMB 371,883,961.18, a decrease of 1.15% compared to the end of the previous year[15]. - The asset-liability ratio for both the parent company and consolidated statements stood at 31.56% as of September 30, 2022, a slight improvement from 32.70% at the end of the previous year[15]. - Total liabilities as of September 30, 2022, were RMB 103,333,424.19, down from RMB 107,954,564.14 at the end of 2021[83]. - The company has pledged assets totaling RMB 48,677,709.32, representing 13.09% of total assets[78]. - Total liabilities increased to ¥117,371,757.32 in the latest report from ¥123,008,608.35 in the previous period[84]. - Total equity rose slightly to ¥254,512,203.86 from ¥253,213,731.96, showing a marginal increase of 0.5%[84]. Shareholder Information - The total number of ordinary shares at the end of the reporting period was 58,590,280, with a basic earnings per share of 0.3744, adjusted from 0.4152 at the end of the previous year[23]. - The largest shareholder, Du Faping, holds 16,279,091 shares, representing 27.78% of the total shares[27]. - The total shares held by the top ten shareholders amount to 36,968,300, which is 63.09% of the total shares[28]. - The company commits to distributing at least 10% of the annual distributable profit in cash and at least 30% of the average annual distributable profit over any three consecutive fiscal years[55]. - The company will review its shareholder return plan every three years, considering various factors and shareholder opinions, especially from minority shareholders[56]. Legal Matters - The company is involved in a lawsuit with a claimed amount of 3,178,678.99 yuan, which constitutes 1.25% of the net assets at the end of the reporting period[32]. - The court ruled that the defendants must cease infringing on the company's trademarks and pay a total of 560,000 yuan in damages[34]. - The company is involved in ongoing legal proceedings regarding trademark disputes, with multiple cases filed in the Beijing Intellectual Property Court[39][40]. - The company has been pursuing overdue payments from Shanghai Zhonghu Valve Group Co., Ltd., amounting to CNY 235,524.00, with ongoing litigation in the Changzhou Wujin District People's Court[41]. Investment and Financial Strategy - The company has invested CNY 358,000,000.00 in low-risk financial products to enhance fund utilization efficiency and increase returns for shareholders[46]. - The company’s strategy includes investing in high-safety, liquid short-term low-risk financial products to optimize capital use[47]. - The company has committed to repurchase shares if any false statements or omissions are identified in the issuance documents[70]. Research and Development - Research and development expenses for Q3 2022 were ¥2,759,763.63, up 52.3% from ¥1,809,504.03 in Q3 2021, indicating a focus on innovation[87].

Awards and Recognition - The company received the third prize in Jiangsu Province's Science and Technology Awards for its project on key technology research and industrialization of electric devices for nuclear power station valves[3]. - The company is recognized as a "High-tech Enterprise" and has received provincial-level recognition for its specialized and innovative capabilities[35]. Financial Performance - The company's operating revenue for the reporting period was ¥82,662,236.46, a decrease of 18.95% compared to the same period last year[27]. - The net profit attributable to shareholders was ¥6,944,525.26, reflecting a decline of 43.49% year-on-year[27]. - The gross profit margin decreased to 36.34% from 37.76% in the previous year[27]. - The weighted average return on net assets for the first half of 2022 was 2.72%, down from 5.18% in the first half of 2021 and 6.70% in the first half of 2020[13]. - The total assets decreased by 5.82% to ¥354,336,323.05 compared to the previous year[31]. - The total liabilities decreased by 14.78% to ¥104,830,844.03[31]. - The company's net cash flow from operating activities increased significantly by 353.77% to ¥22,111,027.87[29]. Assets and Liabilities - As of June 30, 2022, the company's accounts receivable net amount was RMB 57.14 million, accounting for 18.29% of current assets, with 88.26% of accounts receivable aged within one year[10]. - The company's inventory value at the end of the reporting period was RMB 67.39 million, representing 19.02% of total assets[11]. - Cash and cash equivalents accounted for 32.77% of total assets, slightly increasing from 31.09% in the previous year[49]. - Total current assets decreased from ¥337,901,988.54 to ¥312,397,281.52, a decline of about 7.56%[157]. - Total non-current assets increased from ¥38,320,351.77 to ¥41,939,041.53, an increase of approximately 9.67%[158]. Research and Development - The company holds 52 patents, including 5 invention patents and 45 utility model patents, as well as 3 software copyrights as of June 30, 2022[11]. - Research and development expenses increased by 6.05% to ¥3,836,304.18, representing 4.64% of total revenue[54]. - The company is committed to improving its research and development capabilities to maintain a technological edge in the nuclear power sector[88]. Market and Competition Risks - The company faces risks related to market competition, technological advancements, and potential fluctuations in nuclear power project approvals[10]. - The company is at risk of losing key technical personnel due to increasing competition for high-end talent in the industry[11]. - The company faces risks related to macroeconomic fluctuations and reliance on low-end market products, necessitating a focus on technological innovation[47]. Quality Management - The company has established a strict quality management system, with no major product quality incidents reported during the period[11]. - The company is subject to risks associated with nuclear power product quality management, as any quality issues could lead to the revocation of necessary licenses, impacting future business expansion[14]. Shareholder and Dividend Information - The company announced a dividend distribution plan, granting 1 additional share for every 10 shares held and a cash dividend of RMB 2.00 for every 10 shares, effective from June 17, 2022[3]. - The company commits to prioritize cash dividends when the distributable profit is positive and cash flow is sufficient, ensuring it does not affect ongoing operations[109]. - The company aims to distribute at least 10% of the annual distributable profit in cash and at least 30% of the average annual distributable profit over any three consecutive years[110]. Legal Matters - The company has faced a lawsuit with a total claim amount of RMB 3,178,678.99, which accounts for 1.27% of the company's net assets[94]. - The company successfully obtained a court ruling requiring the defendants to cease trademark infringement and pay a total of RMB 560,000 in damages[96]. - The company has faced various legal challenges, including trademark disputes, which are still ongoing as of the report date[97]. Future Plans and Investments - The company plans to enhance product development and service innovation, with a focus on continuous R&D investment to maintain industry leadership[70]. - The company plans to purchase approximately 79 acres of industrial land to mitigate potential impacts from future land acquisition by the government[81]. - The company plans to enhance the production capacity of smart valve actuators and nuclear power products over a period of 24 months, with equipment procurement and installation expected to occur from T+1 to T+21 months[141].

Financial Performance - Operating revenue for the first quarter of 2022 was CNY 37,865,897.96, down 9.18% year-on-year due to reduced order deliveries impacted by the pandemic[16][17]. - Net profit attributable to shareholders for the first quarter of 2022 was CNY 2,913,434.33, a decline of 36.09% compared to the same period last year[16][18]. - Basic earnings per share decreased by 50.85% to CNY 0.0547 due to an increase in share capital from 40,972,224 shares to 53,263,891 shares following the 2020 equity distribution[16][18]. - The company reported a decrease in gross profit margin due to rising raw material costs, contributing to the decline in net profit[18]. - Total operating revenue for Q1 2022 was CNY 37,865,897.96, a decrease of 9.8% compared to CNY 41,694,357.54 in Q1 2021[70]. - Net profit for Q1 2022 was CNY 2,913,434.33, a decrease of 36.1% compared to CNY 4,558,767.32 in Q1 2021[72]. - Operating profit for Q1 2022 was CNY 2,751,395.40, down 35.0% from CNY 4,230,302.13 in Q1 2021[72]. - Total revenue for Q1 2022 was CNY 3,237,966.00, a decline of 40.1% compared to CNY 5,406,632.49 in Q1 2021[72]. - The company reported a net profit margin of 6.3% for Q1 2022, down from 8.2% in Q1 2021[70]. - Total comprehensive income for Q1 2022 was CNY 2,913,434.33, a decrease of 36.1% compared to CNY 4,558,767.32 in Q1 2021[72]. Assets and Liabilities - Total assets as of March 31, 2022, were CNY 356,982,524.44, a decrease of 5.11% compared to the end of the previous year[16]. - Cash and cash equivalents decreased to CNY 89,280,958.86 as of March 31, 2022, from CNY 116,986,234.89 as of December 31, 2021, representing a decline of 24.0%[66]. - Accounts receivable decreased to CNY 59,383,892.53 as of March 31, 2022, from CNY 67,937,927.66 as of December 31, 2021, a reduction of 12.5%[66]. - Total liabilities decreased to CNY 100,855,358.15 as of March 31, 2022, from CNY 123,008,608.35 as of December 31, 2021, a decline of 18.0%[68]. - The company's equity attributable to shareholders increased to CNY 256,127,166.29 as of March 31, 2022, compared to CNY 253,213,731.96 as of December 31, 2021, an increase of 1.1%[68]. - The company's total liabilities to assets ratio remained stable at 28.25% for both the parent and consolidated entities[16]. Cash Flow - Net cash flow from operating activities increased by 140.24% to CNY 3,150,458.40, primarily due to reduced cash payments for goods and services compared to the previous year[16][18]. - Cash flow from operating activities for Q1 2022 was CNY 3,150,458.40, compared to a negative cash flow of CNY -7,829,454.67 in Q1 2021[75]. - Cash and cash equivalents at the end of Q1 2022 were CNY 74,944,033.11, down from CNY 90,693,637.08 at the end of Q1 2021[76]. - Investment cash outflow for Q1 2022 was CNY 91,884,532.69, significantly higher than CNY 20,314,232.40 in Q1 2021[75]. Shareholder Information - The registered capital of the company is CNY 53,263,891.00[14]. - The total number of restricted shares is 28,930,968, with 54.32% held by controlling shareholders[23]. - The total share capital is 53,263,891, with 2,554 common shareholders[23]. - The largest shareholder, Du Faping, holds 14,799,174 shares, representing 27.78% of the total[24]. - The top ten shareholders collectively hold 33,603,964 shares, accounting for 63.08% of the total[25]. - Shareholders have voluntarily waived their preemptive rights regarding the stock issuance[59]. Corporate Governance and Commitments - The company has made commitments to maintain labor dispatch employment below 10% of total employees[31]. - The controlling shareholder has committed to not reducing shareholdings below the issue price for two years post-lockup[32]. - The controlling shareholders and management commit to not interfering in the company's operations or misappropriating company interests[35]. - The company will prioritize cash dividends when distributing annual profits, ensuring at least 10% of the distributable profits are allocated in cash[37]. - The board must discuss any changes to the profit distribution policy with independent directors before submitting it for shareholder approval[39]. - The company will not allow any unfair benefit transfers to other entities or individuals by its directors and senior management[36]. Regulatory and Compliance - There are no ongoing litigation or arbitration matters reported during the reporting period[28]. - The company has not provided external guarantees or loans during the reporting period[28]. - The company has not engaged in any significant asset acquisitions or disposals during the reporting period[28]. - The company commits to providing accurate and complete information regarding the public offering and share issuance[53]. - The company guarantees that the public offering application documents are true, accurate, and complete, and will initiate a buyback if any false statements are identified[54]. - The company will accept supervision from regulatory bodies if it fails to implement the stock stabilization measures[50]. Stock Repurchase and Stabilization - The company plans to repurchase shares if the stock price stabilization conditions are met, following the completion of the major shareholders' stock increase plan[46]. - The funds used for share repurchase must not be less than 10% of the previous fiscal year's audited net profit attributable to the parent company[47]. - The total amount of funds for stock repurchase in a single fiscal year shall not exceed 30% of the previous fiscal year's audited net profit attributable to the parent company[48]. - If the stock price exceeds the net asset value per share for five consecutive trading days, the board may decide to terminate the share repurchase[49]. - After completing a share repurchase plan, the company's obligation to repurchase shares is temporarily lifted for 90 trading days[49]. - If the stock price falls below the issuance price for 20 consecutive trading days, the lock-up period for shares held by major shareholders will be extended by six months[33]. - The company will implement measures to stabilize stock prices if the stock price falls below the latest audited net asset value for 20 consecutive trading days[40]. - The controlling shareholder's funds used for stock repurchase should not exceed 30% of the cash dividends received in the previous fiscal year[43]. - The company will review its shareholder return plan every three years, considering the execution of the previous plan and shareholder feedback[38]. - The management commits to ensuring that any stock incentive plans are linked to the execution of measures to compensate for diluted immediate returns[36].

Company Overview - The company was listed on the Beijing Stock Exchange on November 15, 2021, becoming one of the first companies to do so[6]. - The company has a total share capital of 53,263,891 shares, with the controlling shareholder being Du Faping[28]. - Du Faping has been the chairman and general manager since the company's establishment in 2001, exerting significant influence over company decisions[196]. - The company did not conduct any public or private stock offerings during the reporting period[200]. - There were no changes in the controlling shareholder or actual controller during the reporting period[197]. Financial Performance - The company's operating revenue for 2021 was ¥227,523,358.24, a decrease of 2.02% compared to ¥232,210,495.75 in 2020[34]. - The net profit attributable to shareholders for 2021 was ¥30,511,712.56, down 8.75% from ¥33,437,933.41 in 2020[34]. - The gross profit margin for 2021 was 37.49%, a decline from 40.16% in 2020[34]. - The company's basic earnings per share for 2021 was ¥0.5728, a decrease of 17.64% from ¥0.6955 in 2020[34]. - The net cash flow from operating activities for 2021 was ¥13,894,046.59, a significant decline of 46.44% from ¥25,941,854.81 in 2020[37]. - The average return on net assets after deducting non-recurring gains and losses was 16.53% in 2020 and dropped to 11.23% in 2021, highlighting a trend of declining profitability[18]. - The weighted average return on net assets for 2021 is 12.64%, down from 17.97% in 2020, reflecting a potential risk of declining profitability[131]. Assets and Liabilities - Total assets increased by 3.31% to ¥376,222,340.31 at the end of 2021, compared to ¥364,184,421.72 at the beginning of the year[36]. - Total liabilities decreased by 6.27% to ¥123,008,608.35 at the end of 2021, down from ¥131,239,346.32 at the beginning of the year[36]. - The company's inventory value at the end of the reporting period was 65.21 million yuan, accounting for 17.33% of total assets[17]. - The company's cash and cash equivalents decreased by 0.30% to CNY 116,986,234.89, representing 31.09% of total assets[66]. - The accounts receivable increased by 0.47% to CNY 67,937,927.66, making up 18.06% of total assets[66]. Research and Development - The company has developed core technologies in valve electric actuators and intelligent control systems, maintaining a leading position in the industry[15]. - The company holds 50 patents as of December 31, 2021, including 5 invention patents and 43 utility model patents, along with 3 software copyrights[16]. - Research and development expenses increased by 11.88% to CNY 9,204,191.25, reflecting the company's commitment to innovation[69]. - The company is focused on continuous technological innovation and product line expansion to enhance market competitiveness and profitability[97]. - The company has invested in 8 R&D projects, including the development of IIOT-based smart new energy cloud electric devices[95]. Market Position and Competition - The company specializes in the manufacturing of valve actuators, with products widely used in nuclear power, petrochemical, metallurgy, municipal, and electric power industries[51]. - The company is positioned among the top three in market competitiveness domestically and aims to move towards high-end products[112]. - The domestic valve actuator industry is projected to grow rapidly due to national industrial restructuring, technological upgrades, and strong government support for fixed asset investment[103]. - The company is positioned to benefit from the increasing demand for high-end automation products, particularly in the nuclear power sector, where domestic manufacturers are improving their technology[65]. Risks and Challenges - The company faces risks related to market competition and the potential for performance fluctuations if it cannot maintain its technological advantages[15]. - The company is exposed to risks from natural disasters, wars, and major pandemics that could impact its operations and profitability[18]. - The company faces management risks associated with scale expansion, necessitating improvements in internal control and governance structures[129]. - The company acknowledges the potential impact of natural disasters and other uncontrollable events on its operations and profitability[132]. - The company faces uncertainties in obtaining future nuclear product orders if there are significant adverse changes in national nuclear development policies or project approvals[136]. Corporate Governance and Shareholder Relations - The company has a significant concentration of ownership, with the top two shareholders holding over 36% of the total shares[196]. - The top ten shareholders collectively hold 63.08% of the company's shares, with 25,839,520 shares at the beginning of the period and 33,602,464 shares at the end[194]. - The company commits to communicate with shareholders, especially minority shareholders, regarding any changes to the profit distribution policy[166]. - The company will adjust its profit distribution policy and future shareholder return plans based on discussions with independent directors and shareholder approval, requiring a two-thirds majority vote[166]. Quality Management - The company has established a strict quality management system, with no major product quality accidents reported, highlighting its commitment to product quality control[16]. - The company has implemented a comprehensive quality management approach to ensure the reliability and safety of its nuclear products throughout the entire process[136][137]. Future Outlook - The future outlook indicates a growing market for nuclear energy as a clean and efficient energy source, contributing to carbon neutrality goals[107]. - The company plans to actively participate in the nuclear power industry chain construction and increase its market share in nuclear power products[111]. - The company aims to enhance the intelligence of civilian products and improve their stability and reliability to meet diverse industry needs[108].