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].