Company Overview - Qifeng Precision Industry Sci-Tech Corp. became the first listed company in Jiaxing on the Beijing Stock Exchange on April 15, 2022[6]. - The company was established in 2001 with a registered capital of CNY 500,000, which was later increased to CNY 5,000,000 in 2014[189][191]. - The company primarily engages in the R&D, manufacturing, and sales of mid-to-high-end fasteners, with a focus on railway components and electronic parts[200]. Financial Performance - The company's operating revenue for the period reached ¥94,033,699.54, a slight increase of 0.17% compared to ¥93,876,169.25 in the same period last year[29]. - The net profit attributable to shareholders increased significantly by 59.44% to ¥21,318,568.07 from ¥13,371,189.28 year-on-year[29]. - The gross profit margin improved to 28.14%, up from 26.40% in the previous year[29]. - Total assets grew by 66.71% to ¥339,828,361.25, compared to ¥203,842,626.81 at the end of the previous year[30]. - The company's net cash flow from operating activities surged by 316.95% to ¥23,521,048.55, compared to ¥5,641,234.73 in the same period last year[31]. - The total liabilities decreased by 10.26% to ¥44,409,532.75 from ¥49,486,116.91 year-on-year[30]. - The net asset attributable to shareholders increased by 91.39% to ¥295,418,828.50, compared to ¥154,356,509.90 at the end of the previous year[30]. - Basic earnings per share rose by 34.78% to ¥0.31 from ¥0.23 in the previous year[29]. - The company reported a non-recurring profit of ¥5,692,669.88 after tax, contributing positively to the overall financial performance[34]. Research and Development - The company holds 29 patents, including 6 invention patents, 5 design patents, and 18 utility model patents, indicating a strong focus on R&D[15]. - The company has established a relatively complete R&D system and a strong team, but risks remain regarding potential leaks of core technology by key personnel[15]. - The company has a dedicated R&D department focused on product development, process improvement, and technology standard formulation[44]. - Research and development expenses grew by 9.94% to ¥3,686,433.70, reflecting the company's commitment to innovation[66]. Market and Sales - Export sales accounted for a significant portion of revenue, with major markets including the United States and Japan, exposing the company to risks from changes in export policies and economic conditions[13]. - The company focuses on high-end fasteners for aerospace, rail locomotives, and other precision components, responding quickly to market demands and customer requirements[49]. - The company employs a "sales-driven production" model, ensuring that production aligns with customer orders and market needs[45]. - The company actively explores high-end customer markets and leverages opportunities from urbanization and the "Belt and Road" initiative for market expansion[49]. Risks and Challenges - The company faces risks related to raw material price fluctuations, particularly steel, which could impact gross margins due to limited bargaining power with suppliers[13]. - Management risks may arise from the company's rapid expansion, necessitating improvements in internal controls and management capabilities[15]. - The company relies on key clients such as Fosro and units under the Aviation Industry Corporation, creating dependency risks if their procurement strategies change[14]. - The company has not experienced significant changes in major risks during the reporting period[15]. - The company anticipates a potential increase in accounts receivable as business scales up, which may lead to higher bad debt risks if collection efforts are insufficient[99]. Environmental and Compliance - The company has implemented various environmental protection measures, including wastewater treatment facilities that ensure compliance with discharge standards[86]. - The company operates four sets of wastewater treatment equipment, ensuring that wastewater is treated to meet standards before discharge[88]. - The company has invested in air pollution control systems, including two sets of acid mist treatment systems, to manage emissions effectively[88]. - The company has obtained pollution discharge permits for its subsidiaries, with valid periods ranging from 2020 to 2026[91]. - There were no environmental accidents or administrative penalties reported during the period[92]. Shareholder and Governance - The actual controllers of the company hold a combined 53.83% of shares, which could lead to potential governance risks[97]. - The company has a total of 7 board members and 3 supervisors, with 3 senior management personnel[140]. - The largest shareholder, Chen Yuezhong, holds 34,052,000 shares, representing 42.13% of total shares[120]. - The total number of shares held by directors, supervisors, and senior management is 39,841,100, accounting for 49.2935% of total shares[143]. - The company maintains a close relationship between major shareholders and management, with several familial ties[141]. Fundraising and Capital Structure - The company raised a total of RMB 133,644,540.00 through a public offering of 22,274,090 shares at a price of RMB 6.00 per share[130]. - The net amount raised after deducting underwriting fees and other expenses was RMB 119,396,259.99[130]. - The company has a remaining balance of RMB 95,730,922.44 from the public offering, which includes RMB 40,590,000.00 in unexpired financial products[130]. - The company has not changed the intended use of the raised funds during the reporting period[131]. - The company has completed the registration of new shares for both directed issuances and the public offering[128][130].

Investment Projects - The company's construction in progress at the end of the period is CNY 16,829,016.51, representing a 100% increase compared to the beginning of the year, primarily due to the new project for producing 870,000 aerospace and rail precision components, with a total project budget of CNY 69,145,200.00 and an overall progress of 38.48%[3] - The total investment in the major non-equity investment project for the production of 870,000 aerospace and rail precision components during the reporting period is CNY 26,608,978.95, with a completion progress of 70%[5] - The company has invested CNY 23,472,859.50 in the ongoing technical transformation project for producing 870,000 aerospace and rail precision components, with the project being funded by self-owned capital[4] - The cumulative actual investment in the technical transformation project for producing 750,000 aerospace fasteners is CNY 670,082.00, which has been fully acquired[5] - The cumulative actual investment in the technical transformation project for producing 350,000 high-speed railway screw spikes is CNY 1,362,439.00, which has also been fully acquired[5] - The overall progress of the technical transformation project for producing 870,000 aerospace and rail precision components is 38.48%[6] - The total cumulative investment in major non-equity investment projects during the reporting period amounts to CNY 28,641,499.95[5] Financial Reporting - The company assures that the corrections made in the 2021 annual report do not affect its financial status and operating results for the year[7] - The company has committed to ensuring the accuracy and completeness of the information disclosed in its announcements[2] - The company has acknowledged the inconvenience caused to investors due to the corrections made in the annual report[7]

Financial Performance - Net profit attributable to shareholders for the first quarter of 2022 was CNY 9,096,786.46, representing a significant increase of 56.76% year-over-year[13]. - Operating revenue for the first quarter of 2022 reached CNY 44,675,703.47, reflecting a growth of 2.80% compared to the same period last year[13]. - Basic earnings per share for the first quarter of 2022 were CNY 0.16, an increase of 60.00% compared to CNY 0.10 in the same period last year[13]. - Operating profit for the first quarter of 2022 was 10,384,902.15, up from 6,799,467.96 in the previous year, reflecting a growth of approximately 52.67%[40]. - Comprehensive income for the first quarter of 2022 totaled 9,096,786.46, compared to 5,802,871.43 in the first quarter of 2021, marking an increase of approximately 56.67%[41]. - Total operating revenue for Q1 2022 was CNY 44,675,703.47, an increase from CNY 43,459,930.00 in Q1 2021, representing a growth of approximately 2.8%[39]. Cash Flow and Liquidity - The net cash flow from operating activities improved to CNY 8,115,937.51, a remarkable increase of 163.55% compared to the previous year[13]. - Operating cash inflow for Q1 2022 was CNY 59,473,339.60, an increase from CNY 44,377,314.50 in Q1 2021, representing a growth of 34%[45]. - Total cash and cash equivalents at the end of Q1 2022 reached CNY 31,041,329.80, up from CNY 5,307,055.14 at the end of Q1 2021[47]. - The net increase in cash and cash equivalents for Q1 2022 was CNY 7,792,922.12, compared to CNY 1,027,658.54 in Q1 2021, indicating a strong cash position[47]. - Cash outflow from investing activities was CNY 879,528.99 in Q1 2022, significantly lower than CNY 4,089,850.57 in Q1 2021, indicating reduced investment spending[47]. Assets and Liabilities - Total assets as of March 31, 2022, were CNY 203,153,510.88, a decrease of 0.34% compared to the end of the previous year[13]. - The company's total liabilities to assets ratio decreased to 19.45% for the consolidated financials, down from 24.28% at the end of the previous year[13]. - Total liabilities decreased from CNY 49,486,116.91 at the end of 2021 to CNY 39,511,816.03 by March 31, 2022, indicating a reduction of approximately 20.1%[33]. - Current liabilities decreased from CNY 45,945,512.30 to CNY 36,707,330.60, a decline of about 20.1%[32]. - Non-current liabilities also decreased from CNY 3,540,604.61 to CNY 2,804,485.43, a reduction of approximately 20.8%[33]. - Shareholders' equity increased from CNY 154,356,509.90 at the end of 2021 to CNY 163,641,694.85 by March 31, 2022, reflecting a growth of about 6.3%[33]. Shareholder Information - The registered capital of the company is CNY 58,550,000.00[11]. - The total number of ordinary shareholders is 98[17]. - The largest shareholder, Chen Yuezhong, holds 34,052,000 shares, representing 58.16% of the total shares[19]. - The second largest shareholder, Haiyan Qifeng Investment Consulting Co., Ltd., holds 10,795,050 shares, accounting for 18.44%[19]. - The total shares held by the top ten shareholders amount to 56,996,198, which is 97.35% of the total shares[20]. Operational Activities - Daily related transactions include purchasing raw materials and services estimated at 1,500,000, with actual transactions of 218,590[24]. - Sales of products and services are estimated at 2,000,000, with actual sales of 72,156.64[24]. - Other daily related transactions are estimated at 4,520,000, with actual transactions of 857,190.48[24]. - The company has committed to timely disclosures regarding daily related transactions and has adhered to these commitments[23]. Compliance and Commitments - There are no significant legal disputes or external guarantees reported during the period[23]. - The company has not engaged in any share buyback activities during the reporting period[23]. - The company has maintained compliance with all disclosed commitments and has not faced any penalties or investigations[23]. - The company has committed to avoid and reduce related party transactions, which is currently being fulfilled[26]. - The company has issued commitments regarding the stability of share prices and the authenticity of issuance application documents[27]. - The company has ongoing commitments related to the issuance of shares and the management of shareholder equity[27].

Recognition and Awards - The company was recognized as a "Specialized, Refined, Characteristic, and Innovative" SME in Zhejiang Province for 2021, among 2,125 companies listed[4] - The company was also awarded the title of "Invisible Champion" enterprise in Zhejiang Province for 2021[5] Research and Development - The company has established a robust R&D system with a total of 26 patents, including 6 invention patents, 5 design patents, and 15 utility model patents[13] - The company is focusing on technological innovation and product development to meet the personalized needs of customers[61] - The company is engaged in multiple R&D projects, including high-strength fatigue-resistant bolts and corrosion-resistant components, aimed at improving technology and enhancing core competitiveness[113] - The company collaborates with Shanghai University on high-strength fastener production technology, focusing on quality improvement and product variety expansion[114] - The company holds a total of 26 patents, including 6 invention patents, maintaining the same number as the previous period[112] Financial Performance - The company's operating revenue for 2021 was approximately ¥219.09 million, representing a year-over-year increase of 27.27% compared to ¥172.15 million in 2020[29] - The net profit attributable to shareholders for 2021 was approximately ¥36.23 million, a 4.23% increase from ¥34.76 million in 2020[29] - The total assets at the end of 2021 reached approximately ¥203.84 million, reflecting a growth of 54.10% from ¥132.28 million at the end of 2020[31] - The total liabilities at the end of 2021 were approximately ¥49.49 million, which is a 37.06% increase from ¥36.11 million at the end of 2020[31] - The company's net profit margin for 2021 was approximately 16.54%, down from 20.19% in 2020[29] - The cash flow from operating activities for 2021 was approximately ¥28.82 million, an increase of 11.52% from ¥25.85 million in 2020[33] - The company's basic earnings per share for 2021 was ¥0.64, a decrease of 7.96% from ¥0.69 in 2020[29] - The total number of ordinary shares increased to 58,550,000 at the end of 2021, a growth of 13.34% from 51,660,000 in 2020[36] Market and Industry Trends - The company is focusing on increasing production capacity for aerospace and rail transportation fasteners, with the feasibility analysis based on current macroeconomic conditions and industry trends[12] - The demand for high-strength fasteners is expected to grow significantly due to the expansion of high-end equipment manufacturing in China[67] - The fastener industry is transitioning towards high-performance and high-value-added products, supported by national development projects[68] - The tightening of competition in the fastener industry is leading to a trend of product structure adjustment towards high-performance and high-value-added products[136] Risks and Challenges - The company faces risks related to the decline in gross margin for aerospace fasteners due to increased competition and raw material price fluctuations[12] - The company is aware of the potential for bad debts as it expands its customer base, which may lead to increased accounts receivable risks[12] - The company faces risks related to the fluctuation of raw material prices, particularly steel, which significantly impacts its gross margin[149] - The ongoing COVID-19 pandemic poses risks to the company's production and operational activities, affecting market demand and logistics[14] - The company is actively addressing uncertainties related to the COVID-19 pandemic, which may affect business collaboration with overseas clients[144] Governance and Management - The company has established a comprehensive internal control system to mitigate risks related to core technology leaks[14] - The company’s governance structure has been continuously improved, enhancing its internal management mechanisms[14] - The company is subject to risks from improper control by its actual controllers, which could affect strategic decisions and shareholder interests[14] - The actual controllers Chen Yuezhong and Cai Xuequn hold a combined 74.19% of the shares, which may lead to potential misuse of control over the company's strategic decisions[156] Production and Operations - The company implements a "sales-driven production" model, ensuring production aligns with customer orders[58] - The quality management department conducts full-process monitoring of product quality, adhering to strict operational standards[49] - The company has established a comprehensive supplier evaluation system, ensuring only qualified suppliers are included in the approved supplier list[45] Environmental and Social Responsibility - The company made an environmental protection investment totaling 240,100 RMB during the reporting period[133] - The company has obtained pollution discharge permits valid until August 3, 2023, for its subsidiaries[134] - The company has not experienced any environmental accidents or administrative penalties during the reporting period[135] Shareholder Information - The company has a total share capital of 58,550,000 shares, with the actual controller holding 74.19% of the shares[14] - The largest shareholder, Chen Yue, holds 34,052,000 shares, representing 58.16% of total shares[177] - The total shares held by the chairman and general manager, Chen Yuezhong, is 34,052,000, representing 58.16% of total shares[190] - The total number of shares held by the top ten shareholders is 50,319,150, representing 97.35% of the total shares[178] Employee Compensation - Total core employee compensation amounts to 1,660,000[200] - The highest individual compensation is 80,000 for Zhu Xiaoqin[200] - Compensation for core employees ranges from 6,000 to 80,000[200] - The average compensation for core employees is approximately 10,750[200] - There are 66 core employees listed in the document[200]