Financial Performance - The company's operating revenue for the first quarter reached CNY 4,212,613,259.83, representing a year-on-year increase of 30.74%[3] - Net profit attributable to shareholders was CNY 480,638,615.59, reflecting a growth of 23.79% compared to the previous year[3] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 450,718,935.19, an increase of 18.63% year-on-year[3] - Basic and diluted earnings per share were both CNY 0.4277, marking an increase of 18.71%[3] - Total revenue for Q1 2022 reached ¥4,248,612,150.24, a 30.8% increase from ¥3,248,779,081.70 in Q1 2021[19] - Net profit for Q1 2022 reached approximately 487.72 million, up 24.9% from 390.01 million in Q1 2021[20] - Total comprehensive income for Q1 2022 was approximately 481.65 million, an increase of 23.9% from 388.70 million in Q1 2021[22] Cash Flow - The net cash flow from operating activities decreased significantly by 76.51%, amounting to CNY 45,561,344.86[5] - Cash flow from operating activities for Q1 2022 was approximately 45.56 million, a decrease of 76.5% compared to 194.00 million in Q1 2021[25] - The company reported a significant increase in cash inflow from operating activities, totaling approximately 2.92 billion in Q1 2022, compared to 1.85 billion in Q1 2021[25] - The net cash flow from financing activities was approximately $106.33 million in Q1 2022, a decrease from $337.28 million in Q1 2021[28] - Cash outflow related to financing activities was approximately $53.97 million in Q1 2022, compared to $390.72 million in Q1 2021[28] Assets and Liabilities - Total assets at the end of the reporting period were CNY 14,443,026,542.33, up 17.05% from the end of the previous year[3] - The total current assets as of March 31, 2022, amount to 9,598,943,300.86 RMB, an increase from 7,695,901,023.41 RMB as of December 31, 2021, reflecting a growth of approximately 24.8%[13] - Current liabilities rose to ¥7,505,201,060.44, an increase of 27.3% from ¥5,891,147,420.90 in the previous year[15] - The total liabilities increased to ¥7,978,587,910.63 from ¥6,357,371,409.91, representing a rise of 25.5%[16] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 48,349, with 48,024 being A-share holders[5] - The total number of circulating shares held by the largest shareholder, China Yituo Group Co., Ltd., is 410,690,578 shares, representing 100% of its holdings in RMB ordinary shares[9] - The company has not disclosed any related party relationships among the top ten shareholders, ensuring transparency in ownership structure[9] Investments and Expenses - Research and development expenses for Q1 2022 were ¥87,553,444.60, compared to ¥83,958,853.23 in Q1 2021, showing a growth of 4.3%[19] - The company completed the transfer of 100% equity and related debts of Zhengzhou Sanzhen Machinery Equipment Co., Ltd., impacting the company's profit by 23.1 million RMB[10] - The company approved the restructuring of its financial subsidiary, China Yituo Group Financial Co., Ltd., with Guo Ji Financial Co., Ltd., indicating strategic consolidation efforts[10] Inventory and Receivables - The company's inventory decreased to 1,411,975,675.11 RMB from 1,674,008,933.28 RMB, showing a decline of about 15.6%[13] - The accounts receivable rose significantly to 1,326,300,744.77 RMB from 301,661,736.48 RMB, marking an increase of approximately 339.5%[13] - The company’s other receivables increased to 35,038,000.10 RMB from 24,247,156.19 RMB, representing an increase of approximately 44.4%[13] Other Financial Metrics - Non-recurring gains and losses for the period totaled CNY 29,919,680.40 after tax[4] - Other comprehensive income decreased to -¥16,919,596.69 from -¥11,710,421.44, indicating a decline in this area[18] - Investment income for Q1 2022 was approximately 30.11 million, significantly higher than 4.67 million in Q1 2021[20]

Financial Performance - Total operating revenue for 2021 reached ¥9,333,808,881.54, a 23.10% increase from ¥7,582,476,787.76 in 2020[56]. - Net profit attributable to shareholders was ¥438,209,215.31, reflecting a significant growth of 56.42% compared to ¥280,150,740.30 in the previous year[56]. - Basic earnings per share increased by 38.63% to ¥0.3940 in 2021, up from ¥0.2842 in 2020[58]. - The weighted average return on net assets rose to 8.49%, an increase of 1.83 percentage points from 6.66% in 2020[58]. - The company reported a net profit of -¥230,968,521.01 in Q4 2021, indicating challenges faced during that period[59]. - Non-recurring gains and losses totaled ¥103,043,626.35 for 2021, compared to ¥134,149,954.85 in 2020[61]. - The total assets at the end of 2021 were ¥12,339,594,556.58, a slight decrease of 0.02% from ¥12,342,608,882.99 in 2020[57]. - The company’s total assets amounted to RMB 12.34 billion in 2021, while total liabilities were RMB 6.36 billion[64]. - The total equity attributable to shareholders reached RMB 5.40 billion, an increase from RMB 4.34 billion in 2020[64]. Operational Challenges - The company faced challenges such as rising raw material prices and reduced agricultural machinery subsidies, impacting its operational strategies[58]. - The company’s net cash flow from operating activities decreased by 53.37% to ¥582,279,759.33 from ¥1,248,778,258.13 in 2020[56]. - Operating costs increased by 28.12% to ¥7,712,932,565.70 from ¥6,020,041,446.52, primarily due to higher sales volume and reclassification of transportation costs[82]. - The gross margin for the equipment manufacturing sector was 16.25%, a decrease of 3.28 percentage points year-on-year, impacted by rising raw material prices and reclassification of transportation costs[90]. - The gross margin for agricultural machinery was 14.28%, down 3.54 percentage points compared to the previous year[91]. - The gross margin for power machinery was 12.64%, a decline of 0.50 percentage points year-on-year[91]. Product and Market Development - The company sold 69,300 large and medium-sized tractors, an increase of 29.35% year-on-year, outperforming the industry average by 25.73 percentage points[67]. - The total sales of "Dongfanghong" diesel engines reached 138,600 units, with external market sales increasing by 10.87%[67]. - The company launched new products including "Dongfanghong"-LX1604 and LD2104, addressing user demands for high-performance agricultural machinery[68]. - The company reported a 30.02% increase in tractor export value, despite challenges from global pandemic impacts and rising international shipping costs[68]. - The company aims to enhance its core competitiveness by continuously upgrading product technology and manufacturing capabilities in response to national agricultural modernization strategies[77]. Research and Development - Research and development expenses rose by 22.51% to ¥415,352,332.37, reflecting the company's commitment to advancing project development[82]. - The company has a two-tier R&D model combining headquarters and subsidiaries, enhancing the efficiency of market-demand-driven projects[74]. - The company is advancing the development of Euro V non-road diesel engines and has completed emission certification for its new generation products[78]. - The company employed 1,172 R&D personnel, making up 15.76% of the total workforce, with a significant portion holding advanced degrees[103]. Governance and Management - The company has established a complete independent business system, ensuring independence in assets, personnel, finance, organization, and operations from its controlling shareholder[140]. - The company has established an independent financial department with a complete accounting system and internal control mechanism, ensuring independent financial operations[141]. - The company is led by experienced professionals with backgrounds in engineering and management, including the Chairman Li Xiaoyu and General Manager Liu Jiguan, both of whom have extensive experience in strategic planning and corporate management[151][152]. - The company is focusing on enhancing its internal control evaluation and has proposed a work plan for the 2021 internal control evaluation[195]. - The company is committed to ensuring the independence of its non-executive directors and evaluating their independence regularly[197]. Strategic Initiatives - The company plans to optimize asset structure and actively explore international markets while deepening the domestic market[124]. - The company will implement cost management strategies to improve product cost competitiveness and profitability[125]. - The company plans to invest $50 million in sustainability initiatives over the next two years[9]. - The company aims to enhance market share while maintaining stability, focusing on user demand changes and the impact of subsidy policies and material prices[124]. Financial Management - The company reported a net cash outflow from financing activities of -¥119,911,581.04, a decrease of 129,710,000 compared to the previous year[107]. - The company's cash and cash equivalents increased by 26.28% to CNY 3,243,399,611.65, attributed to higher profits and the maturity of structured deposits[109]. - The asset-liability ratio decreased by 8.17 percentage points to 51.52%, indicating improved financial stability[111]. - The current ratio improved by 0.23 percentage points to 1.31, reflecting better short-term liquidity[111]. Related Party Transactions - The company is actively involved in related party transactions, with a proposal for daily related transactions approved in February 2021[180]. - The company plans to continue its related party transactions from 2022 to 2024, indicating ongoing operational relationships[195].

Financial Performance - Total revenue for 2021 reached ¥9,333,808,881.54, an increase of 23.10% compared to ¥7,582,476,787.76 in 2020[25] - Net profit attributable to shareholders was ¥438,209,215.31, reflecting a significant growth of 56.42% from ¥280,150,740.30 in the previous year[25] - The company's net assets attributable to shareholders increased by 24.52% to ¥5,402,078,873.33 at the end of 2021, up from ¥4,338,179,097.26 in 2020[25] - Basic earnings per share rose to ¥0.3940, a 38.63% increase from ¥0.2842 in 2020[25] - The cash flow from operating activities showed a decline of 53.37%, totaling ¥582,279,759.33 compared to ¥1,248,778,258.13 in 2020[25] - The company achieved a record high in sales of large and medium-sized tractors and diesel engine products, contributing to improved operational quality[25] - The weighted average return on net assets increased to 8.49%, up by 1.83 percentage points from 6.66% in 2020[25] - The company reported a total asset value of ¥12,339,594,556.58 at the end of 2021, slightly down by 0.02% from ¥12,342,608,882.99 in 2020[25] - The net profit after deducting non-recurring gains surged by 129.56% to ¥335,165,588.96 from ¥146,000,785.45 in 2020[25] - In 2021, the company achieved total operating revenue of 9.33 billion RMB, a year-on-year increase of 23.10%[35] Dividends and Shareholder Information - The company plans to distribute a cash dividend of RMB 1.17 per 10 shares, totaling RMB 131.47 million based on a total share capital of 1,123,645,275 shares[8] - The company has a clear cash dividend policy that complies with the company's articles of association and shareholder resolutions[148] - The company has not proposed a cash profit distribution plan despite having positive profits available for distribution to shareholders[151] Audit and Compliance - The company received a standard unqualified audit report from Dahua Certified Public Accountants[7] - The company is committed to ensuring the authenticity, accuracy, and completeness of the annual report[6] - The internal control audit report received a standard unqualified opinion, indicating effective internal control mechanisms[155] - The company strictly adhered to the corporate governance code and principles as per the Stock Exchange listing rules during the reporting period[156] Risk Management - The company has analyzed potential risks in its operations and future development in the management discussion and analysis section of the report[10] - The company has implemented risk control measures across its financing activities, ensuring that business risks remain manageable[44] - The company faces risks related to potential adjustments in agricultural machinery purchase subsidy policies, which could impact operational performance if support is reduced or eliminated[85] - Rising raw material prices and labor costs are significant risks, with steel and rubber being major components; the company plans to optimize procurement processes to mitigate these impacts[88] - The ongoing global pandemic and geopolitical tensions pose risks to overseas market sales, prompting the company to focus on international market expansion and product certification[89] Research and Development - Research and development expenses rose to approximately ¥415.35 million, reflecting a 22.51% increase from ¥339.04 million, indicating a focus on innovation and product development[44] - The company is investing $50 million in R&D for new technologies aimed at enhancing product efficiency and sustainability[111] - The board of directors has approved a budget increase for R&D to support ongoing innovation efforts[106] Operational Efficiency and Cost Management - The company implemented cost control measures, optimizing procurement costs through centralized purchasing and effective management of raw material prices[35] - The company aims to enhance operational efficiency and reduce costs through improved internal management and value chain cost management[84] - The company plans to enhance its supply chain management, aiming to reduce costs by 10% over the next year[111] Market Expansion and Sales - The company is expanding its international sales network, focusing on regions such as Asia, Eastern Europe, and Africa, to increase market presence[44] - The company sold 69,300 large and medium-sized tractors, representing a year-on-year increase of 29.35%, outperforming the industry average by 25.73 percentage points[35] - The total sales of "Dongfanghong" diesel engines reached 138,600 units, with external market matching sales increasing by 10.87%[35] - The company exported tractors with a growth rate of 30.02% in key overseas markets including Africa and Latin America[35] Corporate Governance - The company has maintained a structure with no shareholding changes among its directors and senior management during the reporting period[103] - The board of directors held a total of 10 meetings during the reporting period, including four regular meetings[159] - The independent non-executive directors accounted for one-third of the board members, ensuring compliance with independence requirements[159] Social Responsibility and Community Engagement - The company has helped sell and organize the purchase of specialty agricultural products from impoverished areas totaling CNY 950,600, ensuring stable income for farmers[167] - The company has established a dynamic monitoring and assistance mechanism to prevent poverty, successfully helping over 20 individuals find employment[167] - The company will continue to enhance its poverty prevention mechanisms and support rural revitalization in accordance with national strategies[167] Financial Subsidiaries and Investments - The company plans to dissolve its financial subsidiary to comply with regulatory requirements, as one enterprise group can only establish one financial company[97] - The company intends to increase its investment in the controlled financial company to partially offset the revenue loss from the dissolution of its financial subsidiary[97] - The company aims to enhance its financing capabilities and financial management through the stronger capital and resource support of the controlled financial company[97]

Financial Performance - The company's operating revenue for Q3 2021 was ¥2,566,000,003.31, representing a year-on-year increase of 10.59%[7] - The net profit attributable to shareholders for Q3 2021 was ¥157,796,448.02, reflecting a year-on-year increase of 2.24%[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥134,271,684.72, showing a year-on-year decrease of 6.92%[7] - The net profit attributable to the parent company for the first three quarters increased by 40.08% year-on-year, indicating improved economic operation quality and efficiency[22] - The net profit for the third quarter of 2021 was approximately ¥671.21 million, an increase of 39.7% compared to ¥480.28 million in the same period of 2020[39] - The total profit for the third quarter of 2021 reached ¥715.92 million, up from ¥494.61 million in the previous year, reflecting a growth of 44.7%[39] - The company reported a net profit of ¥1,380,053,213.12 for the first three quarters, compared to ¥795,064,178.33 in the previous year, reflecting a growth of 73.5%[31] Assets and Liabilities - The total assets at the end of Q3 2021 amounted to ¥13,426,603,833.73, an increase of 8.78% compared to the end of the previous year[7] - Total assets increased to ¥13,426,603,833.73 from ¥12,342,608,882.99, marking an increase of 8.8%[29] - Current assets totaled ¥8,777,175,207.17, up from ¥7,442,992,787.99, indicating a growth of 17.9%[29] - Total liabilities decreased to ¥7,157,741,386.57 from ¥7,367,087,045.88, a reduction of 2.8%[31] - The company's equity increased to ¥6,268,862,447.16 from ¥4,975,521,837.11, representing a growth of 25.9%[31] Cash Flow - The cash flow from operating activities for the year-to-date was ¥1,462,578,897.44, reflecting a significant increase of 89.94% year-on-year[7] - Cash inflow from operating activities totaled ¥7.18 billion, an increase from ¥4.69 billion in the same period last year, reflecting a growth of 53.3%[41] - The net cash flow from operating activities was $1,462,578,897.44, an increase from $770,015,117.53[44] - The total cash and cash equivalents at the end of the period reached $2,802,838,968.73, up from $1,061,597,881.42[44] - The company reported a significant increase in cash and cash equivalents, reflecting improved liquidity position[44] Sales and Market Performance - The main products' sales volume increased year-on-year, contributing to the growth in net profit attributable to shareholders[11] - In the first three quarters of 2021, the company sold a total of 64,600 large and medium tractors, representing a year-on-year increase of 35.29%, outperforming the industry growth rate[22] - The company's diesel engine products achieved sales of 108,600 units in the same period, with a year-on-year growth of 23.90%[22] - The company maintains a leading market share in the agricultural machinery sector despite a slowdown in industry growth due to various external factors[22] Cost Management and Efficiency - The company is focusing on strict cost control and the disposal of inefficient assets to boost overall performance[22] - The company's sales expenses decreased to ¥118.77 million from ¥268.88 million, a reduction of 55.8%[39] - The financial expenses, including interest expenses, decreased significantly to ¥31.49 million from ¥29.80 million, reflecting a decrease of 5.7%[39] Research and Development - Research and development expenses increased to ¥281.60 million, compared to ¥249.57 million in the same quarter of 2020, marking a rise of 12.8%[39] Shareholder Structure - The company has a significant shareholder structure, with China Yituo Group holding 48.81% of shares, indicating strong backing from state-owned entities[22] Corporate Governance - The company is undergoing a transition in its board and supervisory committee, with elections postponed to ensure continuity and stability[22] - The company applied for bankruptcy liquidation of its subsidiary, which has not yet been accepted by the local court as of the report date[22] Financing Activities - Cash received from loans amounted to $480,000,000.00, a decrease from $1,331,481,348.34 in the previous period[44] - The company received $697,999,997.00 from investment absorption during the financing activities[44]

[Definitions](index=4&type=section&id=Item%201.%20Definitions) This chapter defines key terms used in the report, including A-shares, H-shares, agricultural machinery, subsidiaries, and related parties, providing a foundation for understanding the content - This section defines key terms used in the report, including **A-shares**, **H-shares**, **agricultural machinery**, **holding subsidiaries**, **related companies** (e.g., Sinomach Group, China YTO), and various business entities (e.g., Finance Company, Diesel Engine Company), providing a basis for understanding the report content[6](index=6&type=chunk)[8](index=8&type=chunk)[9](index=9&type=chunk) [Company Profile and Key Financial Indicators](index=8&type=section&id=Item%202.%20Company%20Profile%20and%20Key%20Financial%20Indicators) The company achieved strong performance growth in the first half of 2021, with significant increases in total operating revenue and net profit attributable to shareholders [Company Basic Information](index=8&type=section&id=Company%20Information) This section provides the company's basic business registration information, including names, legal representative, addresses, website, and contact details for the Board Secretary - The company's Chinese abbreviation is "**YTO Group**", and its legal representative is **Li Xiaoyu**[11](index=11&type=chunk) - The company's **A-shares** are listed on the Shanghai Stock Exchange (stock code **601038**); **H-shares** are listed on the Hong Kong Stock Exchange (stock code **0038**)[15](index=15&type=chunk) [Key Financial Data and Indicators](index=10&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) The company achieved strong performance growth in the first half of 2021, with total operating revenue increasing by 36.80% and net profit attributable to shareholders by 58.15% 2021 H1 Key Accounting Data (Unit: RMB Yuan) | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 5,631,797,809.93 | 4,116,725,509.00 | 36.80 | | Net Profit Attributable to Shareholders of Listed Company | 511,381,288.30 | 323,361,690.16 | 58.15 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains/Losses) | 484,770,421.11 | 290,273,866.74 | 67.00 | | Net Cash Flow from Operating Activities | 674,240,684.93 | 452,641,885.46 | 48.96 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 5,475,833,783.72 | 4,338,179,097.26 (Prior Year-end) | 26.22 | | Total Assets (Period-end) | 12,387,174,665.07 | 12,342,608,882.99 (Prior Year-end) | 0.36 | 2021 H1 Key Financial Indicators | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.4646 | 0.3280 | 41.65 | | Diluted Earnings Per Share (Yuan/share) | 0.4646 | 0.3280 | 41.65 | | Weighted Average Return on Net Assets (%) | 9.90 | 7.64 | Increased by 2.26 percentage points | | Weighted Average Return on Net Assets (Excluding Non-recurring Gains/Losses) (%) | 9.38 | 6.86 | Increased by 2.52 percentage points | [Non-recurring Gains and Losses](index=12&type=section&id=Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, the company's non-recurring gains and losses totaled RMB 26.61 million, primarily from government subsidies and financial asset gains 2021 H1 Non-recurring Gains and Losses Items (Unit: RMB Yuan) | Non-recurring Gains and Losses Item | Amount | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 3,388,682.05 | | Government Subsidies Included in Current Profit/Loss | 17,264,604.55 | | Fair Value Changes and Investment Income from Trading Financial Assets/Liabilities | 11,474,045.71 | | Other Non-operating Income and Expenses | 5,445,870.66 | | Other Gains and Losses Meeting the Definition of Non-recurring | -6,656,530.68 | | Impact on Minority Interests | -2,432,331.17 | | Income Tax Impact | -1,873,473.93 | | **Total** | **26,610,867.19** | [Management Discussion and Analysis](index=13&type=section&id=Item%203.%20Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's operational performance, industry trends, core competencies, and potential risks [Industry and Principal Business](index=13&type=section&id=Industry%20and%20Principal%20Business%20Overview) The company focuses on advanced agricultural machinery manufacturing, with principal businesses including R&D, manufacturing, and sales of agricultural and power machinery - The company's principal businesses are the R&D, manufacturing, and sales of **agricultural machinery** (tractors and key components) and **power machinery** (non-road diesel engines and components)[21](index=21&type=chunk) [Core Competencies](index=14&type=section&id=Core%20Competitiveness%20Analysis) The company's core competencies include technological R&D, a complete core component manufacturing system, efficient production, and strong brand influence - The company's core competitive advantages include **technological R&D**, **core component manufacturing system**, **production organization capabilities**, **product quality**, **marketing channels**, and the "**Dongfanghong**" brand influence[22](index=22&type=chunk) [Discussion and Analysis of Operations](index=14&type=section&id=Discussion%20and%20Analysis%20of%20Operating%20Conditions) In H1 2021, the company achieved significant revenue and profit growth, driven by increased demand for large and medium-sized tractors and strategic product development - Benefiting from national policies and market demand, domestic sales of **large and medium-sized tractors** increased by **14.9%** year-on-year in the first half of 2021[23](index=23&type=chunk) 2021 H1 Company Key Performance | Indicator | Value | Year-on-year Growth (%) | | :--- | :--- | :--- | | Total Operating Revenue | 5.632 billion Yuan | 36.80 | | Net Profit Attributable to Parent | 511 million Yuan | 58.15 | | Sales of Large and Medium-sized Tractors | 45.4 thousand units | 40.55 | - The company sold **1,103 large and medium-sized wheeled tractors** through finance leasing, a **38.05% year-on-year increase**, effectively easing users' purchasing capital pressure[26](index=26&type=chunk) - The company accelerated strategic product R&D, advancing the development of **power shift**, **continuously variable transmission**, and **full-series National IV tractors**; the "High-Horsepower Intelligent Tractor R&D Project" has been approved for initiation[26](index=26&type=chunk) - In the second half of the year, the company will focus on "seeking growth from the existing market," improving economic operational quality, and accelerating technological innovation, particularly advancing the commercialization of **large-scale efficient tractors** and the R&D of **National IV and National V diesel engines**[29](index=29&type=chunk) [Analysis of Major Operating Conditions](index=20&type=section&id=Major%20Operating%20Conditions%20Analysis%20During%20the%20Reporting%20Period) This section analyzes operating conditions through financial statement changes, asset-liability status, investment, and key subsidiaries, highlighting revenue growth and the impact of French subsidiary liquidation [Potential Risks](index=33&type=section&id=Potential%20Risks) The company faces market, operational, and technological upgrade risks, including potential slowdown in domestic demand, rising raw material costs, and challenges from new emission standards - Market risks: Domestic market growth may be constrained by prior demand release, and international market expansion is hindered by the **COVID-19 pandemic**[52](index=52&type=chunk) - Operational risks: Facing cost pressure from **high raw material prices**, intensified industry competition, and potential impact on current performance from **disposal of inefficient assets**[53](index=53&type=chunk) - Technology upgrade risks: The transition to **National IV emission standards** for non-road diesel engines poses higher requirements for the company's product R&D, manufacturing technology, and supply chain[54](index=54&type=chunk) [Corporate Governance](index=36&type=section&id=Item%204.%20Corporate%20Governance) This section details the company's governance structure, including shareholder meetings, board and supervisory board changes, and compliance with securities regulations [Corporate Governance Status](index=36&type=section&id=Brief%20Introduction%20to%20Shareholders'%20Meetings) During the reporting period, the company held two shareholder meetings, with all proposals passed, and experienced changes in senior management positions - Two shareholder meetings were held during the reporting period, the **2021 First Extraordinary General Meeting** and the **2020 Annual General Meeting**, approving matters such as the election of supervisors, revision of regulations, and approval of annual reports and profit distribution plans[55](index=55&type=chunk) - Senior personnel changes: **Mr. Wang Dongxing** was elected as Chairman of the Supervisory Board; **Mr. Cai Jibo** resigned from his positions as Vice Chairman and Executive Director due to work changes[56](index=56&type=chunk)[57](index=57&type=chunk) - The Board of Directors recommended **not distributing an interim dividend** for the six months ended June 30, 2021[61](index=61&type=chunk) [Environmental and Social Responsibility](index=40&type=section&id=Item%205.%20Environmental%20and%20Social%20Responsibility) The company adheres to environmental protection laws and actively fulfills social responsibilities through poverty alleviation and rural revitalization initiatives [Environmental and Social Responsibility](index=40&type=section&id=Environmental%20Information%20Overview) The company strictly complies with environmental laws, has robust pollution control measures, and actively contributes to rural revitalization through various support programs - In the first half of 2021, the company received **no administrative penalties** for environmental issues, and all pollution control facilities operated stably[62](index=62&type=chunk)[63](index=63&type=chunk) - The company actively fulfills its social responsibilities, supporting rural revitalization through **consumption-based poverty alleviation** and **agricultural machinery-based poverty alleviation**, organizing the purchase of local specialty agricultural products worth **RMB 776,000** since 2021[68](index=68&type=chunk) [Significant Matters](index=44&type=section&id=Item%206.%20Significant%20Matters) This section covers the company's fulfillment of commitments, related party transactions, and other significant events, including major contracts and litigation status [Commitments and Related Party Transactions](index=44&type=section&id=Fulfillment%20of%20Commitments) During the reporting period, the company, its controlling shareholder, and actual controller strictly fulfilled all commitments, with no unfulfilled obligations - The company, its controlling shareholder, and actual controller have all strictly fulfilled various commitments, including those related to **resolving horizontal competition**[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) - The company has ongoing **daily related party transactions** with its controlling shareholder, China YTO, including procurement, sales, comprehensive services, energy supply, asset leasing, and financial services through the finance company (deposits, loans, bills)[78](index=78&type=chunk)[79](index=79&type=chunk) - Significant related party transaction: The controlling shareholder, China YTO, subscribed for all **137,795,275 A-shares** issued by the company in a non-public offering in 2020, with a lock-up period of **36 months**[105](index=105&type=chunk) [Major Contracts, Litigation, and Other Matters](index=67&type=section&id=Major%20Contracts%20and%20Their%20Fulfillment) The company continued to manage Changtuo Company's equity, reappointed its auditor, and reported no significant litigation or share transactions - The company continues to fulfill the agreement to **manage 33.33% equity** in Changtuo Company held by Sinomach Group[106](index=106&type=chunk) - Approved by the General Meeting of Shareholders, **Dahua Certified Public Accountants (Special General Partnership)** was re-appointed as the company's financial and internal control auditor for 2021[107](index=107&type=chunk) - There were **no significant lawsuits or arbitrations** involving the company during the reporting period[108](index=108&type=chunk) [Share Changes and Shareholder Information](index=70&type=section&id=Item%207.%20Share%20Changes%20and%20Shareholder%20Information) This section details changes in the company's share capital and shareholder structure, including a non-public offering and major shareholder holdings [Share Changes and Shareholder Structure](index=70&type=section&id=Share%20Changes) During the reporting period, the company's total share capital increased due to a non-public offering to its controlling shareholder, China YTO - The company non-publicly issued **138 million A-shares** to its controlling shareholder, China YTO, at an issue price of **RMB 5.08/share**, raising net proceeds of **RMB 694 million** for working capital replenishment[115](index=115&type=chunk) - After the issuance, the company's total share capital increased from **985.85 million shares** to **1.124 billion shares**; China YTO's shares have a **36-month lock-up period**[115](index=115&type=chunk)[117](index=117&type=chunk) Top Three Shareholders' Holdings as of Report End | Shareholder Name | Shares Held at Period End | Proportion (%) | Share Nature | | :--- | :--- | :--- | :--- | | China YTO Group Corporation | 548,485,853 | 48.81 | State-owned Legal Person | | HKSCC NOMINEES LIMITED | 388,157,319 | 34.54 | Overseas Legal Person | | Hong Kong Securities Clearing Company Limited | 9,803,138 | 0.87 | Overseas Legal Person | [Preferred Shares Information](index=80&type=section&id=Item%208.%20Preferred%20Shares%20Information) This section confirms the absence of preferred shares during the reporting period - The company had **no preferred shares** during the reporting period[128](index=128&type=chunk) [Bonds Information](index=80&type=section&id=Item%209.%20Bonds%20Information) This section confirms the absence of corporate bonds during the reporting period - The company had **no corporate bonds** during the reporting period[128](index=128&type=chunk) [Financial Report](index=81&type=section&id=Item%2010.%20Financial%20Report%20Prepared%20According%20to%20China%20Enterprise%20Accounting%20Standards) This section presents the company's financial statements and detailed notes, prepared according to China Enterprise Accounting Standards [Financial Statements](index=81&type=section&id=Financial%20Statements) This section provides unaudited consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity Consolidated Balance Sheet Key Items (June 30, 2021) | Item | Amount (Yuan) | | :--- | :--- | | Total Assets | 12,387,174,665.07 | | Total Liabilities | 6,277,443,276.67 | | Total Equity Attributable to Parent Company Owners | 5,475,833,783.72 | Consolidated Income Statement Key Items (Jan-Jun 2021) | Item | Amount (Yuan) | | :--- | :--- | | Total Operating Revenue | 5,631,797,809.93 | | Total Profit | 531,167,058.96 | | Net Profit | 513,860,368.97 | | Net Profit Attributable to Parent Company Shareholders | 511,381,288.30 | Consolidated Cash Flow Statement Key Items (Jan-Jun 2021) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 674,240,684.93 | | Net Cash Flow from Investing Activities | -430,148,426.27 | | Net Cash Flow from Financing Activities | 127,284,025.33 | | Net Increase in Cash and Cash Equivalents | 368,584,960.30 | [Notes to Financial Statements](index=117&type=section&id=Notes%20to%20Financial%20Statements) The notes detail the company's basic information, accounting policies, and estimates, with specific explanations for major financial statement items, including changes in consolidation scope and related party transactions - Change in consolidation scope: Due to the judicial liquidation of its subsidiary, YTO (France) Agricultural Equipment Co., Ltd., the company no longer exercises control and thus **excluded it from the consolidation scope** this period[530](index=530&type=chunk) - Segment information: The company's operations are divided into three reporting segments: **agricultural machinery**, **power machinery**, and **financial services**; in H1 2021, the agricultural machinery segment contributed the majority of operating revenue and profit[668](index=668&type=chunk)[669](index=669&type=chunk) - Financial instrument risks: The company faces primary financial risks including **credit risk**, **liquidity risk**, and **market risk** (mainly exchange rate risk); the company has established corresponding risk management policies to address these risks[553](index=553&type=chunk)

Financial Performance - The company reported a significant increase in revenue for the first half of 2021, with total revenue reaching 1.2 billion RMB, representing a year-on-year growth of 15%[13]. - The net profit attributable to shareholders for the first half of 2021 was 150 million RMB, an increase of 20% compared to the same period last year[13]. - Total revenue for the first half of the year reached CNY 5.63 billion, a year-on-year increase of 36.80%[20]. - Net profit attributable to shareholders was CNY 511.38 million, reflecting a 58.15% increase compared to the same period last year[20]. - The company achieved a weighted average return on equity of 9.90%, an increase of 2.26 percentage points year-on-year[22]. - Basic earnings per share rose to CNY 0.4646, a 41.65% increase compared to the same period last year[22]. - The total profit for the first half of 2021 was CNY 531,167,058.96, compared to CNY 334,250,679.88 in the previous year, indicating an increase of around 59%[177]. - The company's investment income from joint ventures and associates was CNY 560,541,212.06, significantly higher than CNY 347,706,638.26 in the previous year, which is an increase of about 61%[177]. Market Expansion and Product Development - User data indicates that the company has expanded its customer base by 10%, now serving over 500,000 active users[13]. - The company plans to launch two new tractor models in Q3 2021, aiming to capture a larger market share in the agricultural machinery sector[13]. - The company is focusing on expanding its market presence in Southeast Asia, with plans to establish a new distribution center in Vietnam by the end of 2021[13]. - The company is focusing on the development of high-horsepower intelligent tractors and has initiated projects for power-shifting and continuously variable transmission tractors[34]. - The company plans to maintain a strategic focus on innovation and structural optimization to solidify its leading position in the industry[34]. - The company actively responded to market changes, improving product offerings and marketing strategies to meet user demands for high-performance agricultural machinery[31]. Research and Development - Research and development expenses increased by 25% in the first half of 2021, reflecting the company's commitment to innovation and new technology[13]. - R&D expenses rose by 20.91% to ¥187,715,339.78, reflecting the company's commitment to advancing project development[36]. - The company's R&D expenses increased to CNY 138,077,055.85 in the first half of 2021, up from CNY 94,850,003.87 in the same period of 2020, reflecting a growth of approximately 45.4%[180]. Financial Stability and Compliance - The company has no significant non-operating fund occupation by controlling shareholders or related parties, ensuring financial stability[5]. - There are no violations of decision-making procedures regarding external guarantees, maintaining compliance with regulatory standards[5]. - The company has not proposed any profit distribution plan for the reporting period, indicating a focus on reinvestment for growth[5]. - The company is committed to ensuring risk management measures are effectively implemented to mitigate operational risks[34]. - The company has implemented significant pollution control measures, achieving compliance with national and local emission standards during the reporting period[74]. Operational Efficiency - The net cash flow from operating activities was CNY 674.24 million, up 48.96% from the previous year[20]. - The net cash flow from operating activities improved by 48.96% to ¥674,240,684.93, compared to ¥452,641,885.46 in the previous year[36]. - The company’s cash flow from financing activities included CNY 980,000,000.00 in borrowings, a decrease from CNY 1,300,000,000.00 in the same period last year[192]. - The company reported a total cash inflow from operating activities of CNY 2,987,344,431.31, slightly down from CNY 3,171,735,243.77 in the previous year[192]. Shareholder Information - The total number of shares increased to 1,123,645,275 after a non-public issuance of 137,795,275 shares, representing a 12.26% increase in limited shares[142]. - The largest shareholder, China Yituo Group Co., Ltd., holds 548,485,853 shares, accounting for 48.81% of total shares, with an increase of 137,795,275 shares during the reporting period[147]. - The company has committed to not transferring the shares acquired through the non-public issuance for 36 months from the issuance date, which will end on February 19, 2024[145]. Environmental and Social Responsibility - The company purchased local agricultural products worth CNY 776,000 to support poverty alleviation efforts[77]. - The company has established a long-term mechanism for poverty alleviation and rural revitalization, aligning with national strategies[77]. - The company organized emergency response drills for environmental incidents, enhancing its ability to manage pollution events effectively[74]. - The company has developed a dynamic monitoring mechanism to prevent poverty, ensuring stable income sources for households[77].

Financial Performance - Operating revenue for the period was ¥3,222,188,599.04, representing a significant growth of 55.14% compared to the same period last year[12]. - Net profit attributable to shareholders of the listed company was ¥388,261,682.45, marking a 95.60% increase year-on-year[12]. - Basic earnings per share increased to ¥0.3603, up 78.99% from ¥0.2013 in the same period last year[12]. - Total operating revenue for Q1 2021 reached $3,248,779,081.70, a 55% increase from $2,097,315,992.71 in Q1 2020[44]. - Net profit for Q1 2021 was $390,009,465.82, compared to $184,487,398.51 in Q1 2020, representing a 111% increase[47]. - Operating profit for Q1 2021 was $386,201,776.00, up from $164,009,094.91 in Q1 2020, indicating a growth of 135%[44]. - The total comprehensive income for Q1 2021 was $388,698,266.88, compared to $179,450,475.95 in Q1 2020, reflecting a growth of 116%[47]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥12,855,950,614.49, an increase of 4.16% compared to the end of the previous year[12]. - The company's total assets increased by 32.00% to approximately CNY 1.72 billion due to an increase in structured deposits[19]. - The company's total liabilities decreased to RMB 6,312,797,172.01 as of March 31, 2021, from RMB 6,874,682,789.41 at the end of 2020, a reduction of approximately 8.19%[31]. - The company's total liabilities decreased to CNY 4,736,024,500.84 from CNY 4,884,480,229.46, a reduction of about 3.0%[40]. Cash Flow - The net cash flow from operating activities was ¥194,000,471.15, a recovery from a negative cash flow of ¥76,312,396.98 in the previous year[12]. - Cash inflow from operating activities totaled CNY 1.85 billion, up from CNY 1.49 billion year-over-year[56]. - The net cash flow from investing activities was CNY -455.22 million, a decrease from a positive cash flow of CNY 82.07 million in the first quarter of 2020[56]. - The net cash flow from financing activities was CNY 337.28 million, recovering from a negative cash flow of CNY -241.89 million in the first quarter of 2020[58]. Shareholder Information - The total number of shareholders at the end of the reporting period is 56,228, with 55,890 being A shares and 338 being H shares[16]. - The top ten shareholders hold a total of 548,485,853 shares, accounting for 48.81% of the total shares, with China Yituo Group Co., Ltd. being the largest shareholder[16]. Retained Earnings and Equity - Net assets attributable to shareholders of the listed company amounted to ¥5,420,368,063.15, reflecting a 24.95% increase year-on-year[12]. - The company’s retained earnings increased by 48.83% to approximately CNY 1.18 billion, indicating strong operational performance[19]. - The owner's equity increased significantly to CNY 4,903,727,212.75, compared to CNY 3,881,390,777.59, reflecting a growth of approximately 26.3%[40]. Market Strategy - The company is focused on expanding its market presence and enhancing product development strategies[12]. - The company plans to continue expanding its market presence and investing in new product development to sustain growth[21].

股份代號 : 0038.HK 601038.SH （於中華人民共和國註冊成立的股份有限公司） 2020 年度報告 * 僅供識別 重要提示 | 未出席董事職務 | 未出席董事姓名 | 未出席董事的原因說明 | 被委託人姓名 | | --- | --- | --- | --- | | 董事長 | 黎曉煜 | 參加中央黨校學習 | 蔡濟波 | 公司第八屆董事會第二十七次會議審議通過了公司2020年度利潤分配預案：以公司目前總股本1,123,645,275股 為基數，向全體股東每10股派發現金紅利人民幣0.75元（含稅），共計派發現金紅利84,273,395.63元，公司本年 度不進行資本公積金轉增股本。 六. 前瞻性陳述的風險聲明 本報告涉及的本公司發展戰略、經營計劃等前瞻性陳述不構成本公司對投資者的實質承諾，敬請投資者注意風 險。 七. 是否存在被控股股東及其關聯方非經營性佔用資金情況 否 八. 是否存在違反規定決策程序對外提供擔保的情況？ 否 九. 是否存在半數以上董事無法保證公司所披露年度報告的真實性、準確性和完整性 否 十. 重大風險提示 本公司結合自身所處行業及經營運行情況，本著重要性原則，在本年度報告「 ...

Financial Performance - In 2020, the total operating revenue reached ¥7,582,476,787.76, a 30.06% increase from ¥5,681,547,536.68 in 2018[28]. - The net profit attributable to shareholders was ¥280,150,740.30, a significant increase of 355.71% compared to ¥61,475,427.17 in 2019[28]. - The net cash flow from operating activities was ¥1,248,778,258.13, up 277.58% from ¥330,731,669.68 in 2019[28]. - The company's total assets increased by 6.14% to ¥12,342,608,882.99 at the end of 2020, compared to ¥11,629,022,385.51 at the end of 2019[28]. - Basic earnings per share rose to ¥0.2842, a 355.45% increase from ¥0.0624 in 2019[28]. - The weighted average return on equity increased to 6.66%, up 5.14 percentage points from 1.52% in 2019[28]. - Total revenue for 2020 reached RMB 758,248,000, an increase of 30% compared to RMB 583,018,000 in 2019[37]. - Net profit for 2020 was RMB 28,096,000, a significant increase from RMB 12,651,000 in 2019, marking a growth of 121%[37]. - Total assets as of December 31, 2020, amounted to RMB 1,234,261,000, up from RMB 1,162,902,000 in 2019, reflecting a growth of 6.2%[37]. - The company's total liabilities increased to RMB 736,709,000 in 2020 from RMB 684,516,000 in 2019, representing a rise of 7.6%[37]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.75 per 10 shares, totaling RMB 84,273,395.63, based on a total share capital of 1,123,645,275 shares[8]. - In 2020, the company reported a cash dividend of 0.75 RMB per 10 shares, amounting to 84,273,395.63 RMB, which represents 30.08% of the net profit attributable to ordinary shareholders[92]. Audit and Compliance - The company received a standard unqualified audit report from Dahua Certified Public Accountants[7]. - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[6]. - The company has not violated decision-making procedures for providing guarantees[10]. - The company has not experienced any major litigation or arbitration matters during the reporting period[103]. - There are no significant changes in accounting policies or estimates that would impact the financial statements[102]. - The company has not faced any risks of suspension or termination of listing during the reporting period[102]. - The company has not made any profit forecasts that were not met during the reporting period[99]. - The company and its controlling shareholder, China Yituo, maintained a good credit status during the reporting period, with no significant debts overdue or unfulfilled court judgments[105]. Operational Performance - The company focused on its core business and improved product profitability, leading to a robust operational performance in 2020 despite the pandemic[31]. - The company has maintained its focus on advanced agricultural machinery manufacturing, with no significant changes in its main business operations during the reporting period[40]. - The company is implementing a two-tier R&D model, combining headquarters and subsidiaries to enhance product development efficiency[40]. - The agricultural machinery market saw significant growth in 2020, driven by rising grain prices and increased farmer enthusiasm for planting[40]. - The company is advancing its product technology, with key projects like the continuously variable transmission tractor entering trial phases in 2020[43]. - The company is committed to enhancing its core technology and product quality, targeting world-class standards in tractor manufacturing[86]. - The company will implement cost management strategies across the entire product chain to improve operational efficiency[86]. Research and Development - Research and development expenses totaled 339,036,171.41 RMB, accounting for 4.53% of operating income[65]. - The number of R&D personnel was 1,193, representing 15.89% of the total workforce[65]. - The company is committed to enhancing its research and development capabilities to meet the rising demand for intelligent agricultural products and comply with stricter emission standards[90]. - The company is focusing on the implementation of key research projects and the industrialization of products to seize opportunities in the new round of industry upgrades[90]. Market Expansion - The company expanded its overseas market presence, achieving significant growth in key regions such as Asia and Russian-speaking areas[46]. - The company is focusing on international market expansion and optimizing entry strategies for overseas markets[86]. - The company is focusing on international market expansion, particularly in Africa, while facing challenges from the COVID-19 pandemic and natural disasters affecting purchasing power[87]. Related Party Transactions - The company engaged in significant related party transactions, including a procurement agreement with China Yituo, with a transaction amount of 95 million RMB and an actual transaction amount of 61.71 million RMB, accounting for 9.77% of similar transactions[108]. - The sales agreement with China Yituo involved a transaction amount of 37 million RMB, with an actual transaction amount of 31.22 million RMB, representing 4.24% of similar transactions[108]. - The company entered into a deposit service agreement with China Yituo, with a transaction amount of 280 million RMB and an actual transaction amount of 181.78 million RMB, representing 40.72% of similar transactions[111]. - The loan service agreement with China Yituo had a transaction amount of 130 million RMB, with an actual transaction amount of 95.32 million RMB, accounting for 42.31% of similar transactions[111]. Social Responsibility - The poverty alleviation efforts resulted in the reduction of poverty incidence in the supported village from 0.34% in 2019 to 0% by the end of 2020, with 7 individuals lifted out of poverty[157]. - The company invested 80,000 yuan in industrial poverty alleviation projects, helping 7 registered impoverished individuals to escape poverty[159]. - The company provided assistance to 23 impoverished students with a total funding of 500 yuan[160]. - The company plans to maintain existing support policies and funding for poverty alleviation in 2021, ensuring stability in assistance efforts[163]. - The company has actively engaged in social responsibility initiatives, as detailed in its annual social responsibility report[164]. Environmental Compliance - The company reported an average concentration of particulate matter at 7.23 mg/m³ and a total emission of 32.33 tons for particulate matter, while non-methane total hydrocarbons had an average concentration of 12.99 mg/m³ and a total emission of 2.25 tons[165]. - The company has implemented pollution control upgrades in its casting systems and exhaust gas treatment for engines, significantly reducing air pollutant emissions per unit volume[168]. - The company has established an emergency response plan for environmental incidents, including a response team and necessary equipment, and conducted drills to enhance its pollution incident response capabilities[170]. - The company has developed a self-monitoring plan for pollutants, utilizing both online monitoring and third-party testing to ensure compliance with environmental regulations[171]. Shareholder Information - The total number of common shareholders as of the end of the reporting period was 42,909, with 42,566 being A-share holders and 343 being H-share holders[182]. - The largest shareholder, China Yituo Group Co., Ltd., holds 410,690,578 shares, representing 41.66% of the total shares[185]. - HKSCC Nominees Limited is the second-largest shareholder with 387,879,319 shares, accounting for 39.34%[185]. - The report indicates that the top ten shareholders do not have any related party relationships or concerted actions among them[186]. - The company has no strategic investors or general legal entities that have become top ten shareholders through new share placements[186].

Financial Performance - Net profit attributable to shareholders increased by 580.71% to CNY 477,698,750.10 for the year-to-date period[29] - Operating income rose by 24.79% to CNY 6,394,849,666.10 compared to the same period last year[29] - The total profit for the period reached ¥494,610,761.78, a 360.61% increase compared to the same period last year[39] - The company reported a significant increase in net profit excluding non-recurring gains and losses, reaching CNY 434,534,226.29[29] - The company reported a net profit of CNY 1,187,313,175.71 for the first nine months of 2020, compared to CNY 637,020,523.92 in the same period of 2019, indicating a growth of about 86%[61] - Net profit for Q3 2020 was ¥158,633,292.69, compared to ¥65,076,178.67 in Q3 2019, representing a 143.7% increase[68] Asset and Liability Changes - Total assets increased by 11.06% to CNY 12,915,596,104.60 compared to the end of the previous year[29] - The company's accounts receivable increased by 177.08% to ¥1,126,565,345.15 due to seasonal sales peaks in the agricultural machinery sector[38] - The company's liabilities for accounts payable increased by 67.04% to ¥2,092,053,424.70, reflecting higher procurement amounts during the peak production and sales season[38] - The company reported a total current liability of RMB 7.27 billion, up from RMB 6.31 billion at the end of 2019, indicating an increase of approximately 15.2%[51] - The company's total liabilities reached CNY 7,737,990,294.44, an increase from CNY 6,845,156,596.06, indicating a rise of approximately 13%[60] Cash Flow and Investments - Net cash flow from operating activities surged by 530.56% to CNY 770,015,117.53 year-to-date[29] - The total operating cash flow for the first three quarters of 2020 was ¥5,201,239,253.41, compared to ¥4,675,910,126.11 in the same period of 2019, indicating a 11.2% increase[82] - The net cash flow from operating activities for Q3 2020 was ¥770,015,117.53, a substantial increase from ¥122,116,209.43 in Q3 2019[82] - The company reported a total investment income of ¥19,916,081.74 in Q3 2020, recovering from a loss of ¥2,144,006.36 in Q3 2019[77] - The company reduced its cash outflow from financing activities by 55.06% to -¥781,396,524.75, due to decreased loan repayments compared to the previous year[42] Shareholder Information - The total number of shareholders reached 30,928, with the largest shareholder holding 41.66% of shares[32] - The company's controlling shareholder, China Yituo, received conditional approval from the Hong Kong Securities and Futures Commission for a waiver regarding the obligation to make a general offer for the company's shares due to the subscription of non-publicly issued A-shares[43] Operational Efficiency - Basic earnings per share increased by 580.62% to CNY 0.4846[29] - Weighted average return on equity improved by 9.36 percentage points to 11.10%[29] - The company reported a gross profit margin of approximately 31.3% in Q3 2020, up from 20.8% in Q3 2019[64] - The company achieved a gross profit margin of approximately 17.8% in Q3 2020, compared to 10.5% in Q3 2019, indicating improved profitability[74] Research and Development - Research and development expenses for Q3 2020 were ¥94,319,369.25, an increase of 9.5% from ¥86,408,629.64 in Q3 2019[64] - Research and development expenses increased to ¥87,819,076.47 in Q3 2020, up from ¥69,923,627.02 in Q3 2019, reflecting a 25.6% rise[74] Strategic Initiatives - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[66]