Financial Performance - The company reported a net profit of CNY 183,947,962.96 for the year 2018, with an unallocated profit of CNY 165,553,166.67 after deducting the statutory surplus reserve of CNY 18,394,796.30[5]. - The cash dividend distribution plan for 2018 includes a cash dividend of CNY 0.40 per 10 shares, totaling CNY 156,425,939.68 distributed in May 2018[5]. - As of December 31, 2018, the total profit available for distribution to shareholders was CNY 193,610,820.24[5]. - The company's operating revenue for 2018 was approximately ¥11.90 billion, representing a 4.88% increase compared to ¥11.34 billion in 2017[16]. - Net profit attributable to shareholders for 2018 was approximately ¥437.40 million, a 23.60% increase from ¥353.87 million in 2017[16]. - The net cash flow from operating activities for 2018 was approximately ¥787.14 million, a significant increase of 281.79% compared to a negative cash flow of ¥432.99 million in 2017[19]. - The total assets at the end of 2018 were approximately ¥5.62 billion, a decrease of 2.63% from ¥5.78 billion at the end of 2017[19]. - Basic earnings per share for 2018 were ¥0.22, up 22.22% from ¥0.18 in 2017[20]. - The weighted average return on equity for 2018 was 14.23%, an increase of 2.18 percentage points from 12.05% in 2017[20]. - The company reported quarterly revenues of ¥3.26 billion, ¥3.06 billion, ¥2.90 billion, and ¥2.67 billion for Q1, Q2, Q3, and Q4 of 2018, respectively[21]. Shareholder Returns - The cash dividend distribution in 2018 was RMB 0.4 per 10 shares, amounting to RMB 181,391,870.71, representing 41.47% of the net profit attributable to ordinary shareholders[102]. - The company has revised its profit distribution policy to enhance transparency and ensure timely returns to shareholders[101]. - The net profit attributable to ordinary shareholders for 2017 was RMB 353,871,224.77, with a dividend payout ratio of 71.83%[105]. - The company has committed to not interfere with its operational management and to protect shareholder interests[106]. Risk Management - The company has detailed potential risks in its report, which can be found in the section discussing operational conditions and analysis[5]. - The company has strengthened its risk management for accounts receivable to mitigate financial risks in a competitive market[38]. - A risk control management committee has been established to monitor customer dynamics and reduce accounts receivable risks due to tightened funds in the downstream market[99]. - The company has implemented budget management and strengthened cost control to mitigate risks associated with fluctuations in copper and aluminum prices[99]. Operational Highlights - The company achieved a net profit of approximately ¥72.89 million in Q1 2018, with a notable increase in profits in Q2 to ¥213.37 million[21]. - The company achieved an annual production and sales volume of over 200,000 tons of electromagnetic wire for two consecutive years, solidifying its leading position in the industry[31]. - The company has established a centralized procurement system to control costs, focusing on major raw materials like copper and aluminum, which helps mitigate price volatility risks[31]. - The company has a strong technical R&D team with 173 patents, including 30 invention patents, and has established nine research platforms, enhancing its innovation capabilities[32]. - The company has been recognized as a "Manufacturing Single Champion Demonstration Enterprise" by the Ministry of Industry and Information Technology in 2018, highlighting its industry leadership[32]. Market Expansion - The company is actively developing new products for the electric vehicle and 5G sectors, which are expected to become new profit growth points[35]. - The company’s e-commerce platform, launched in 2015, has expanded sales to over 4,500 tons by 2018, catering to small and micro customers effectively[31]. - The company plans to continue expanding its production capacity, particularly in Guangdong and Jiangsu provinces[64]. - The company aims to enhance its market share in emerging sectors such as new energy vehicles and 5G technology[94]. Community Engagement and Social Responsibility - The company successfully lifted 162 individuals from poverty in Xinxu Village, completing the poverty alleviation work for 49 registered poor households in 2018[129]. - A total of 18.32 million RMB was invested in poverty alleviation efforts, with 16.75 million RMB allocated as funds and 1.57 million RMB in material donations[130]. - The company has initiated 242 poverty alleviation projects, focusing on agricultural and forestry industries, and has provided employment for 15 individuals from registered poor households[132]. - The company emphasizes the importance of fulfilling social responsibilities through its poverty alleviation initiatives, enhancing its corporate image and influence[128]. Corporate Governance - The company has engaged Huapu Tianjian Accounting Firm for auditing services, with a remuneration of RMB 135,000 for the year[108]. - The company maintained a strict separation from its controlling shareholder in personnel, assets, finance, and operations, with no guarantees provided to the controlling shareholder or related enterprises during the reporting period[187]. - The company has established a performance evaluation system for senior management, with a compensation committee responsible for formulating and approving compensation policies[200]. - The company actively engaged with investors, enhancing understanding and recognition through various communication methods, thereby promoting positive interactions with investors[187]. Environmental Responsibility - The company has established a clean production and energy-saving reduction policy, ensuring 100% compliance with environmental performance standards[139]. - The company has invested in pollution prevention measures, including catalytic combustion devices to manage waste gas emissions during production[141]. - The company has a robust environmental monitoring plan, conducting annual assessments through third-party organizations[145].

| 目录 | | --- | | 一、 | 重要提示 | 3 | | --- | --- | --- | | 二、 | 公司基本情况 | 3 | | 三、 | 重要事项 | 7 | | 四、 | 附录 | 10 | 2018 年第三季度报告 一、 重要提示 1.1 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 2018 年第三季度报告 公司代码：600577 公司简称：精达股份 铜陵精达特种电磁线股份有限公司 2018 年第三季度报告 1 / 23 1.2 公司全体董事出席董事会审议季度报告。 1.3 公司负责人李晓、主管会计工作负责人储忠京及会计机构负责人（会计主管人员）储忠京保 证季度报告中财务报表的真实、准确、完整。 1.4 本公司第三季度报告未经审计。 二、 公司基本情况 2.1 主要财务数据 3 / 23 单位：元 币种：人民币 本报告期末 上年度末 本报告期末比上年度末增 减(%) 总资产 5,654,719,866.44 5,776,071,480.19 -2.10 归属于上市公司 股东的净 ...

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 6,321,516,636.54, representing an increase of 18.53% compared to CNY 5,333,062,985.39 in the same period last year[18]. - The net profit attributable to shareholders of the listed company reached CNY 286,259,283.13, a significant increase of 65.60% from CNY 172,862,452.74 in the previous year[18]. - The net cash flow from operating activities was CNY 118,676,248.11, a turnaround from a negative cash flow of CNY -320,459,124.37 in the same period last year, marking an increase of 137.03%[18]. - The company's consolidated operating profit for the first half of 2018 was 401.66 million RMB, an increase of 58.08% year-on-year, while net profit attributable to the parent company was 286.25 million RMB, up 65.60% from the previous year[33]. - The company's revenue for the first half of 2018 reached 6.32 billion RMB, a growth of 18.53% compared to 5.33 billion RMB in the same period last year[36]. - The company's operating costs increased by 21.08% to 5.72 billion RMB, primarily due to increased sales volume and rising copper prices[36]. - The company achieved a return on investment of 102.36% from its subsidiary's investment in Beizhe Capital, receiving a total of 43.32 million USD from an initial investment of 21.41 million USD[34]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 5,947,199,483.69, up 2.96% from CNY 5,776,071,480.19 at the end of the previous year[19]. - The net assets attributable to shareholders of the listed company increased to CNY 3,114,992,794.54, reflecting a growth of 4.94% from CNY 2,968,458,820.08 at the end of the previous year[19]. - The total amount of guarantees provided by the company, including those to subsidiaries, is RMB 61,253.96, accounting for 16.97% of the company's net assets[67]. - Total liabilities decreased to CNY 2,338,541,897.93 from CNY 2,349,965,242.43, a decrease of about 0.48%[101]. - Owner's equity increased to CNY 3,608,657,585.76 from CNY 3,426,106,237.76, reflecting an increase of approximately 5.33%[101]. Shareholder Information - Total number of common shareholders at the end of the reporting period was 135,249[87]. - The largest shareholder, Tehua Investment Holdings Co., Ltd., held 426,208,383 shares, representing 21.80% of total shares[89]. - The second largest shareholder, Tongling Jingda Copper Materials Group Co., Ltd., held 165,519,130 shares, accounting for 8.47%[89]. Research and Development - The company has developed a robust quality and technology advantage, holding 126 utility model patents and 23 invention patents, with a comprehensive R&D system in place[28]. - The company's research and development expenses decreased by 16.36% to 102.00 million RMB, reflecting a strategic focus on targeted R&D initiatives[37]. Market and Sales Strategy - Approximately 90% of the company's sales are domestic, while around 10% are exported, indicating a steady increase in production and sales volume[27]. - The company’s sales strategy includes direct sales to end customers, minimizing intermediaries to maximize profits[27]. - The company has established a stable customer base and sales network in domestic and international markets, with exports to Europe, Japan, Brazil, India, and Southeast Asia showing stable growth[31]. Social Responsibility and Community Engagement - The company invested a total of 5.55 million RMB in poverty alleviation efforts, including 4.25 million RMB in funds and 1.30 million RMB in material donations[72]. - A total of 164 registered impoverished individuals were helped to escape poverty through the company's initiatives[72]. - The company is committed to fulfilling its social responsibilities through targeted poverty alleviation programs and community engagement[70]. Risk Management - The company faces market risks due to high customer concentration and intends to enhance technology and marketing innovation to mitigate these risks[49]. - The company is exposed to raw material price fluctuations, particularly for copper and aluminum, and is implementing measures to manage these risks[51]. Accounting and Financial Reporting - The company reported no changes in accounting policies or estimates during the reporting period[83]. - There were no significant accounting errors that required restatement in the reporting period[83]. - The company measures identifiable assets and liabilities acquired in a business combination at fair value on the acquisition date, with goodwill recognized if the acquisition cost exceeds the fair value of net identifiable assets[147]. Inventory and Asset Management - Inventory is classified as products held for sale, work in progress, and materials consumed in production, with a perpetual inventory system in place[192]. - The company measures inventory at the lower of cost and net realizable value, recognizing inventory impairment losses in the current period if the cost exceeds the net realizable value[195].

Financial Performance - Operating revenue rose by 26.45% to CNY 3,263,817,271.38 year-on-year[6] - Net profit attributable to shareholders increased by 12.46% to CNY 72,893,520.41 compared to the same period last year[6] - Basic earnings per share increased by 12.12% to CNY 0.037[6] - Weighted average return on equity rose by 0.23 percentage points to 2.43%[6] - Total revenue for Q1 2018 reached ¥3,263,817,271.38, an increase of 26.5% compared to ¥2,581,044,633.38 in the same period last year[29] - Net profit for Q1 2018 reached CNY 92,413,127.68, compared to CNY 80,681,203.79 in Q1 2017, reflecting an increase of about 14.4%[30] - Operating profit for Q1 2018 was CNY 119,471,859.68, up from CNY 100,482,360.97 in the previous year, indicating a growth of approximately 18.7%[30] - The company reported a total operating cost of CNY 3,143,801,336.09 for Q1 2018, compared to CNY 2,480,368,251.65 in Q1 2017, which is an increase of about 26.7%[30] - Basic and diluted earnings per share for Q1 2018 were both CNY 0.037, up from CNY 0.033 in Q1 2017, marking an increase of approximately 12.1%[31] Cash Flow - Net cash flow from operating activities improved by 77.28%, reaching CNY -22,267,942.58[6] - The net cash flow from operating activities was -22,267,942.58, compared to -98,014,407.22 in the previous period, indicating an improvement[36] - Total cash inflow from operating activities was 2,812,812,339.89, while cash outflow was 2,835,080,282.47, resulting in a net cash flow deficit[36] - Cash inflow from financing activities totaled 828,484,128.64, with a net cash flow of 83,506,660.47 after outflows[37] - The company received 684,430,000.00 in borrowings during the financing activities, significantly higher than the previous period's 328,000,000.00[37] - The company paid 555,448,368.31 in debt repayments, a substantial increase from 54,000,000.00 in the previous period[37] - Cash flow from financing activities increased significantly, with cash received from borrowings rising by 108.67% to RMB 684,430,000.00 from RMB 328,000,000.00[16] Assets and Liabilities - Total assets increased by 6.30% to CNY 6,139,937,735.82 compared to the end of the previous year[6] - The total number of shareholders reached 145,158 at the end of the reporting period[10] - The largest shareholder, Tehua Investment Holdings Co., Ltd., holds 21.80% of the shares[11] - Accounts receivable increased by 55.16% to RMB 803,381,455.31 from RMB 487,019,868.76[13] - Current liabilities rose to ¥2,601,654,818.61, up from ¥2,329,707,140.59, indicating an increase of 11.7%[24] - Total liabilities increased to ¥2,621,682,227.36 from ¥2,349,965,242.43, representing a growth of 11.5%[24] - Owner's equity totaled ¥3,518,255,508.46, up from ¥3,426,106,237.76, marking an increase of 2.7%[24] - Cash and cash equivalents increased to ¥89,180,699.99 from ¥66,440,431.83, a growth of 34.2%[26] Operational Efficiency - Operating costs rose by 30.00% to RMB 2,972,773,832.51 compared to RMB 2,286,729,106.53 in the same period last year[14] - The company incurred management expenses of CNY 100,559,772.09 in Q1 2018, down from CNY 110,756,850.98 in Q1 2017, a decrease of approximately 9.8%[30] - Tax expenses for Q1 2018 were CNY 28,576,472.82, compared to CNY 30,430,320.68 in Q1 2017, reflecting a decrease of about 6.1%[30] - The company reported a decrease in impairment losses on assets by 132.17% to a loss of RMB -2,622,018.48 from RMB 8,149,767.75[14] Investment Activities - The company reported a non-operating income of CNY 651,957.79 from various non-recurring items[9] - The company reported investment income of CNY 1,078,416.90 in Q1 2018, with no investment income reported in the same period last year[32] - The net cash flow from investment activities was -5,977,842.78, a decline from a positive cash flow of 85,057,512.92 in the previous period[36] - Cash inflow from investment activities included 102,800,000.00 from other investment-related activities, a significant increase from 20,072,876.71 previously[42] Other Information - The company has not disclosed any new product developments or market expansion strategies in this report[4] - Construction in progress decreased by 74.07% to RMB 4,498,830.03 from RMB 15,464,753.46[13] - Inventory levels were not specified, but the company reported a total current asset of ¥720,194,137.22, up from ¥674,318,155.37, indicating a growth of 6.8%[27] - The company reported goodwill of ¥99,820,669.51, unchanged from the previous period[24] - Deferred tax assets remained stable at ¥28,597,316.37, consistent with the previous reporting period[24]

Financial Performance - The company achieved a net profit of ¥127,068,089.86 for the year 2017, with a profit distribution plan proposing a 10% allocation of ¥12,706,808.99 to statutory surplus reserves[5]. - Total operating revenue for 2017 was ¥11,344,201,470.18, representing a 39.38% increase compared to ¥8,139,067,471.34 in 2016[22]. - The net profit attributable to shareholders of the listed company increased by 58.04% to ¥353,871,224.77 from ¥223,919,275.68 in the previous year[22]. - The net assets attributable to shareholders of the listed company at the end of 2017 were ¥2,968,458,820.08, a 1.67% increase from ¥2,919,720,128.55 at the end of 2016[23]. - Total assets increased by 17.76% to ¥5,776,071,480.19 at the end of 2017, compared to ¥4,905,082,815.04 at the end of 2016[23]. - Basic earnings per share increased by 63.64% to CNY 0.18 in 2017 from CNY 0.11 in 2016[24]. - The weighted average return on equity rose by 4.22 percentage points to 12.05% in 2017 compared to 7.83% in 2016[24]. - The consolidated main business revenue was CNY 11,175.36 million, an increase of 39.00% compared to the previous year[52]. - The consolidated net profit was CNY 424.79 million, reflecting a growth of 65.80% year-on-year[52]. Cash Flow and Dividends - The cash flow from operating activities showed a net outflow of ¥432,999,609.16, a significant decrease of 251.57% compared to the previous year[22]. - The company plans to distribute cash dividends of ¥0.80 per 10 shares (including tax) to all shareholders[5]. - The company reported a cash dividend of RMB 1.3 per 10 shares in 2017, compared to RMB 0.8 in 2016 and RMB 0.6 in 2015[102]. - In 2017, the company distributed cash dividends totaling RMB 254,192,151.98, representing 71.83% of the net profit attributable to ordinary shareholders[102]. Operational Highlights - The company’s main business includes the manufacturing and sales of enameled wire, bare copper wire, and cables, serving various industries including automotive and aerospace[30]. - The company’s products are widely used in high-demand regions such as the Pearl River Delta and Yangtze River Delta, with some products exported internationally[30]. - The annual production and sales volume of special enameled round copper wire exceeded 150,000 tons, while special enameled round aluminum wire surpassed 50,000 tons[38]. - The company's e-commerce business saw a sales volume increase of approximately 33% year-on-year, indicating a strong growth momentum since its launch[38]. - The company maintains a leading position in the domestic electromagnetic wire market, holding over 50% market share in the household appliance sector, particularly in air conditioning wire[41]. Research and Development - The company has obtained 120 utility model patents and 23 invention patents through independent innovation, showcasing its strong R&D capabilities[42]. - The total R&D expenditure for the period was ¥232,036,783.21, representing 2.05% of the operating revenue[68]. - The number of R&D personnel is 311, accounting for 10.21% of the total workforce[68]. - The company has accelerated the development of new products, including specialized wires for photovoltaic inverters and superconducting electromagnetic wires, aiming to create new profit growth points[49]. Market and Strategic Positioning - The company has established strategic partnerships with American companies, enhancing its management and operational capabilities[42]. - The company is actively expanding its market share, both domestically and internationally, with a focus on optimizing product structure and enhancing production capacity[49]. - The company’s strategic layout includes production bases in key regions of China, ensuring a stable customer base and robust sales network[46]. - The company is focusing on the integration of military and civilian sectors and aims to complete the certification for the Equipment Manufacturing Qualification List[94]. Risk Management and Compliance - The company has outlined potential risks in its future development strategies, which investors should be aware of[9]. - The company has established a risk compliance management mechanism to effectively identify and address operational risks[96]. - The company emphasizes fair and transparent performance evaluation and incentive mechanisms for senior management[163]. - The company has implemented strict risk control measures and established comprehensive internal control systems[163]. Corporate Governance - The company’s financial report received a standard unqualified audit opinion from Huapu Tianjian Accounting Firm[5]. - The company has retained Huapu Tianjian Accounting Firm for the 2017 audit, with a fee of RMB 133,000[105]. - The company has maintained effective internal controls over financial reporting, as evaluated during the audit process[186]. - The company continues to focus on maintaining strong governance practices with independent directors actively involved in oversight[149]. Social Responsibility - The company emphasizes its commitment to social responsibility, ensuring compliance with laws and regulations while creating economic and social benefits[123]. - In 2017, the company contributed a total of RMB 19.6 million in poverty alleviation efforts, including RMB 18.6 million in funds and RMB 1 million in material support[120]. - The company invested CNY 15.977 million in environmental upgrades, ensuring compliance with national standards for emissions[126]. - The company has implemented an ISO14001 environmental management system, with no instances of exceeding emission limits reported throughout the year[126].

Financial Performance - Operating revenue for the first nine months reached CNY 8,155,189,204.36, a 38.27% increase year-on-year[6] - Net profit attributable to shareholders rose by 52.18% to CNY 261,699,644.83 compared to the same period last year[6] - Basic earnings per share increased by 52.27% to CNY 0.134[7] - The company reported a significant increase in net profit after deducting non-recurring gains and losses, which rose by 90.21% to CNY 252,339,526.58[6] - Total operating revenue for Q3 2017 reached ¥2,822,126,218.97, a 51.3% increase from ¥1,864,917,604.61 in Q3 2016[30] - Net profit for Q3 2017 was ¥103,184,704.26, a 57.9% rise from ¥65,266,024.43 in Q3 2016[31] - The net profit attributable to shareholders for the first nine months of 2017 was ¥261,699,644.83, a 52.2% increase from ¥171,972,643.65 in the same period of 2016[32] Assets and Liabilities - Total assets increased by 18.18% to CNY 5,796,969,667.52 compared to the end of the previous year[6] - Current assets totaled CNY 4,136,299,753.98, compared to CNY 3,254,622,530.26, reflecting an increase of about 27.1%[22] - Total liabilities reached CNY 2,478,002,822.23, compared to CNY 1,610,483,699.84, marking an increase of approximately 54%[23] - Owner's equity totaled CNY 3,318,966,845.29, up from CNY 3,294,599,115.20, showing a slight increase of about 0.7%[24] - The company’s total liabilities to equity ratio stands at approximately 0.75, indicating a balanced leverage position[23] Cash Flow - Net cash flow from operating activities showed a significant decline, down 212.62% to -CNY 442,028,216.43[6] - Cash flow from operating activities for the first nine months of 2017 was 7,904,287,467.00, up from 6,891,883,107.60 in the previous year[37] - Cash outflow from operating activities totaled 8,346,315,683.43, resulting in a net cash flow of -442,028,216.43[38] - The net cash flow from operating activities for the first nine months of 2017 was ¥8,790,066.49, a decrease of 50.5% compared to ¥17,783,947.77 in the same period last year[39] - The ending cash and cash equivalents balance as of the end of the reporting period was ¥83,027,455.54, down 75.8% from ¥335,132,839.46 at the same time last year[41] Shareholder Information - The total number of shareholders reached 140,505 by the end of the reporting period[10] - The largest shareholder, Tehua Investment Holdings, holds 21.80% of the shares, with 426,208,383 shares pledged[10] Investment and Expenses - The company reported a significant decrease in investment income, down 99.60% to RMB 145,008.39 from RMB 36,415,442.73 in the previous year[15] - Cash received from the recovery of investments increased by 250.08% to RMB 260,251,053.32, compared to RMB 74,340,000.00 in the same period of 2016[17] - The company experienced a significant increase in sales expenses, totaling 377,358.48 for Q3 2017[35] - Management expenses rose to 6,887,921.48, compared to 5,846,843.80 in the previous period[35] Government Support - The company received government subsidies amounting to CNY 15,750,528.00 during the reporting period[8] Future Plans - The company is in the process of establishing an internet micro-lending company, having completed several preparatory steps and is currently in the review phase with local financial regulatory authorities[18] - The company is focusing on expanding its market presence and enhancing product development to drive future growth[28]

Financial Performance - The company achieved a net profit of CNY 119,325,420.74 for the first half of 2017, with a profit distribution plan proposing a cash dividend of CNY 0.50 per 10 shares [2]. - Revenue for the first half of 2017 was CNY 5,333,062,985.39, representing a 32.24% increase compared to CNY 4,032,901,198.43 in the same period last year [18]. - The net profit attributable to shareholders increased by 53.07% to CNY 172,862,452.74 from CNY 112,932,339.88 year-on-year [18]. - The company reported a significant increase in net profit after deducting non-recurring gains and losses, which rose by 117.62% to CNY 164,861,472.96 [18]. - The consolidated operating profit for the first half of 2017 was 25,408.28 million RMB, an increase of 48.14% compared to the same period last year, while the net profit attributable to the parent company was 17,286.25 million RMB, up 53.07% year-on-year [32]. - The company reported a significant decrease of 82.63% in other current assets to ¥50,087,357.95, due to the maturity of financial products [41]. - The company reported a total cash balance of CNY 640,082,751.03 at the end of the period, an increase from CNY 482,471,649.86 at the beginning of the period, representing a growth of approximately 32.7% [199]. Assets and Liabilities - The total assets of the company reached CNY 5,554,386,685.53, marking a 13.24% increase from CNY 4,905,082,815.04 at the end of the previous year [18]. - The company's total liabilities rose to ¥2,233,249,275.78, up from ¥1,610,483,699.84, indicating a 38.7% increase [79]. - The total current assets as of June 30, 2017, amounted to RMB 3,874,219,927.56, an increase from RMB 3,254,622,530.26 at the beginning of the period, reflecting a growth of approximately 19.0% [76]. - Accounts receivable increased by 135.79% to ¥728,131,676.97, representing 13.11% of total assets, due to higher bank loan utilization and reduced bill discounting [41]. - The total equity attributable to shareholders reached ¥2,934,211,173.07, a slight increase from ¥2,919,720,128.55 [79]. Cash Flow - The company reported a negative cash flow from operating activities of CNY -320,459,124.37, a decline of 201.96% compared to CNY 314,310,568.44 in the same period last year [18]. - The net cash flow from operating activities was -13,856,625.46 RMB, a decrease from 62,458,599.57 RMB in the same period last year [93]. - The net cash flow from financing activities was 419,300,611.51 RMB, compared to a negative cash flow of -99,777,787.29 RMB in the previous period [91]. - The cash inflow from investment activities was 46,697,674.01 RMB, compared to a negative cash flow of -78,166,937.23 RMB in the previous period [94]. Market Position and Strategy - The company achieved sales of over 90,000 tons of electromagnetic wire products in the first half of 2017, maintaining its position as the market leader in China [27]. - The company is the largest manufacturer of specialty electromagnetic wire in China and ranks among the top three globally, with a strong presence in both domestic and international markets [28]. - The company has established strategic partnerships with American companies to enhance management practices and operational efficiency [28]. - The company anticipates an increase in demand for electromagnetic wire, projecting annual demand to rise from 1.6 million tons in 2015 to 1.8 million tons by the end of the 13th Five-Year Plan [27]. - The company is actively pursuing a dual-driven development strategy, focusing on both manufacturing and internet integration [43]. Research and Development - The company has obtained 130 patent authorizations, including 21 invention patents, demonstrating its commitment to innovation and technology advancement [29]. - Research and development expenses rose to 121,955,899.94 RMB, a 22.30% increase attributed to rising raw material prices [39]. Risk Management - The company has outlined potential risks in its future development, which are detailed in the report [5]. - The company faces market risk due to high customer concentration and increased competition, prompting a focus on technology and marketing innovation to enhance production capabilities and explore new growth opportunities [47]. - The company is exposed to raw material price volatility, particularly for copper and aluminum, and is actively managing costs through real-time tracking and innovation to mitigate risks [48]. - The company has actively controlled accounts receivable risks to minimize bad debt losses, enhancing customer credit management and monitoring [34]. Corporate Governance - The company has held four shareholder meetings during the reporting period, ensuring compliance with legal and regulatory requirements [51]. - The company has renewed its audit engagement with Huapu Tianjian Accounting Firm for the 2017 fiscal year, covering financial statement audits and related services [54]. - There are no significant litigation or arbitration matters involving the company during the reporting period, indicating a stable legal standing [54]. - The company and its controlling shareholders have maintained good integrity, with no significant debts or court judgments unmet during the reporting period [55]. Subsidiaries and Investments - The company plans to establish "Guangzhou Tehua Internet Microfinance Co., Ltd." with a total investment of 30 million RMB, currently under approval [34]. - The company has added a new subsidiary, Changzhou Henglong Special Wire Co., Ltd., due to shareholder capital increase [109]. - The company has completed the absorption merger of its subsidiary, Supply Company, into its e-commerce subsidiary, which was finalized in January 2017 [109]. Accounting Policies - The company adheres to the accounting policies and estimates as per the enterprise accounting standards, ensuring the financial statements reflect true and complete information [113]. - The company recognizes sales revenue when the ownership risks and rewards are transferred to the buyer, with reliable measurement of revenue and costs [181]. - The company recognizes deferred tax assets based on temporary differences between the book value and tax base of assets and liabilities, without discounting [187].

Financial Performance - Operating revenue rose by 29.02% to CNY 2,581,044,633.38 year-on-year[6] - Net profit attributable to shareholders increased by 40.43% to CNY 57,688,155.25 compared to the same period last year[6] - Basic and diluted earnings per share both increased by 43.48% to CNY 0.033[6] - Total operating revenue for Q1 2017 was CNY 2,581,044,633.38, an increase of 29.0% compared to CNY 2,000,516,713.60 in the same period last year[27] - Net profit for Q1 2017 reached CNY 80,681,203.79, representing a 49.9% increase from CNY 53,816,663.52 in Q1 2016[28] - The net profit attributable to shareholders of the parent company was CNY 64,817,353.30, up 44.5% from CNY 44,891,878.47 in the previous year[28] - The company reported a total profit of CNY 111,111,524.47 for Q1 2017, which is a 52.2% increase from CNY 72,826,391.38 in the same quarter last year[27] - The company incurred a tax expense of CNY 30,430,320.68 in Q1 2017, compared to CNY 19,009,727.86 in Q1 2016, marking a 60.1% increase[27] - The company’s total comprehensive income for Q1 2017 was CNY 80,233,738.96, an increase from CNY 56,629,242.30 in Q1 2016[28] Assets and Liabilities - Total assets increased by 8.57% to CNY 5,325,691,097.71 compared to the end of the previous year[6] - Current liabilities rose to ¥1,945,642,897.22 from ¥1,597,472,459.35, reflecting an increase of about 21.8%[24] - Total liabilities reached ¥1,957,797,308.99, up from ¥1,610,483,699.84, which is an increase of around 21.5%[24] - Non-current assets totaled ¥1,681,588,677.97, compared to ¥1,650,460,284.78, indicating a growth of approximately 1.9%[23] - The company reported a significant increase in short-term borrowings, which rose to ¥559,000,000.00 from ¥285,000,000.00, a growth of approximately 96%[23] - The total current assets amounted to ¥3,644,102,419.74, compared to ¥3,254,622,530.26, reflecting an increase of about 12%[23] - The total non-current liabilities decreased slightly to ¥12,154,411.77 from ¥13,011,240.49, a decline of about 6.6%[24] Cash Flow - Cash flow from operating activities showed a significant decline of 312.85%, resulting in a net cash outflow of CNY 98,014,407.22[6] - The cash inflow from operating activities was CNY 2,447,071,602.74, an increase from CNY 2,270,186,970.10 in the previous period, representing a growth of approximately 7.8%[32] - The net cash flow from operating activities was negative at CNY -98,014,407.22, compared to a positive CNY 46,048,799.84 in the same period last year[32] - The cash inflow from investment activities was CNY 139,368,758.40, a significant increase from CNY 172,880.37 in the previous period[33] - The net cash flow from investment activities was CNY 85,057,512.92, recovering from a negative CNY -10,649,956.11 in the previous year[33] - The cash inflow from financing activities totaled CNY 392,428,336.41, up from CNY 210,692,140.09 in the previous period, marking an increase of approximately 86.3%[33] - The net cash flow from financing activities was CNY 280,271,792.26, compared to a negative CNY -41,044,130.15 in the same period last year[33] - The ending balance of cash and cash equivalents was CNY 648,586,503.50, an increase from CNY 469,923,751.45 at the end of the previous period[33] Shareholder Information - The number of shareholders reached 164,092, with the top ten shareholders holding a combined 56.85% of shares[10] - Shareholders' equity rose to ¥3,367,893,788.72 from ¥3,294,599,115.20, showing an increase of about 2.2%[24] Other Financial Metrics - The weighted average return on equity increased by 0.59 percentage points to 2.20%[6] - Non-recurring gains and losses totaled CNY 7,129,198.05 for the reporting period[10] - The company reported a significant increase in cash received from operating activities related to other business activities, amounting to CNY 9,946,742.40, compared to CNY 995,852.90 in the previous period[32] - The total cash outflow from operating activities was CNY 2,545,086,009.96, compared to CNY 2,224,138,170.26 in the previous year, indicating a rise of approximately 14.5%[32] - The company’s cash flow from sales of goods and services reached CNY 2,428,031,100.36, up from CNY 2,269,191,117.20, reflecting a growth of about 7%[32] Operational Changes - The company is actively pursuing a major asset restructuring plan, which has faced delays due to regulatory changes and the need for further verification of overseas assets[18] - In Q1 2017, the company reported a significant increase in operating tax and additional fees, rising by 147.24% to ¥8,931,357 compared to ¥3,612,391 in Q1 2016[14] - Asset impairment losses surged by 290.50% to ¥8,149,768, primarily due to an increase in accounts receivable and the provision for bad debts[14] - The company experienced a 42.06% decrease in investment income, with cash received from investment earnings dropping to ¥47,179 from ¥81,424 in the same period last year[14] - Operating income from non-operating activities increased by 77.40% to ¥10,720,570, attributed to a rise in government subsidies received[14] - The company’s cash outflow for the purchase of fixed assets and intangible assets rose by 49.62% to ¥16,192,613 from ¥10,822,836 in the same period last year[14] - The company’s cash flow from tax refunds increased significantly, reaching ¥9,093,760, primarily due to increased export tax rebates[14] - The company reported a 60.08% increase in income tax expenses, amounting to ¥30,430,321, compared to ¥19,009,728 in Q1 2016, driven by higher profits[14] - The company’s management expenses increased to CNY 110,756,850.98 in Q1 2017, up from CNY 92,692,215.65 in the same period last year, reflecting a 19.5% rise[27] - Other comprehensive income after tax was CNY -447,464.83 in Q1 2017, down from CNY 2,812,578.78 in the previous year[28]

Financial Performance - In 2016, the company achieved a net profit of CNY 83,946,894.41, with a profit distribution plan proposing a 10% allocation of CNY 8,394,689.44 to statutory surplus reserves[3]. - The total operating revenue for 2016 was CNY 8,139,067,471.34, representing a 5.14% increase compared to CNY 7,740,900,661.82 in 2015[19]. - The net profit attributable to shareholders increased by 72.45% to CNY 223,919,275.68 from CNY 129,846,877.64 in the previous year[19]. - The company's total assets at the end of 2016 were CNY 4,905,082,815.04, a 9.91% increase from CNY 4,462,877,886.80 in 2015[20]. - The net assets attributable to shareholders rose to CNY 2,919,720,128.55, marking a 5.49% increase from CNY 2,767,849,043.21 in 2015[20]. - Basic earnings per share increased by 57.14% to CNY 0.11 in 2016 compared to CNY 0.07 in 2015[21]. - The weighted average return on equity rose to 7.83% in 2016, an increase of 3.19 percentage points from 4.64% in 2015[21]. - The company reported a non-recurring loss of CNY 1,510,686.57 from the disposal of non-current assets in 2016[25]. - The company’s main business includes the manufacturing and sales of enameled wire, bare copper wire, and cables, serving various industries including power and aerospace[29]. Cash Flow and Investments - Cash flow from operating activities decreased by 65.91% to CNY 285,668,629.94 compared to CNY 837,878,593.69 in 2015[19]. - Cash received from tax refunds increased by 67.21% year-on-year, amounting to CNY 19,251,927.08 compared to CNY 11,513,772.56 in the previous year[64]. - Cash received from other operating activities rose significantly by 150.65%, totaling CNY 73,337,340.25 compared to CNY 29,258,848.70 in 2015[64]. - Cash recovered from investments increased by 65.89%, reaching CNY 505,979,200.00 compared to CNY 305,000,000.00 in the previous year[64]. - The company reported a 153.57% increase in cash recovered from the disposal of fixed assets, totaling CNY 5,937,371.63 compared to CNY 2,341,467.05 in 2015[64]. - Investment payments increased by 51.06%, amounting to CNY 506,066,409.22 compared to CNY 335,000,000.00 in the previous year[64]. - The company invested in a credit guarantee insurance company, which is currently under approval, marking its entry into the insurance industry[43]. Market Position and Strategy - The company achieved an annual sales volume of over 160,000 tons of electromagnetic wire in 2016, capturing approximately 10% of the domestic market share[35]. - The company holds a market share of about 35% in the household appliance electromagnetic wire sector and approximately 35% in the special electromagnetic wire market[35]. - The company expanded its aluminum wire production from 36,000 tons to over 43,000 tons in 2016, solidifying its position as the domestic market leader[42]. - The company is recognized as one of the top three special electromagnetic wire manufacturers globally and is among the top 500 private enterprises in China[36]. - The company is actively pursuing a dual-driven development strategy focusing on traditional industries and emerging sectors since May 2016[41]. - The company plans to continue expanding its product lines and market reach, particularly in the aerospace and automotive sectors[33]. - The company is actively pursuing overseas market expansion and plans to participate in international exhibitions to promote its brand[89]. Research and Development - The company has obtained 130 patent authorizations, including 21 invention patents, showcasing its commitment to innovation[37]. - The company’s R&D expenditure increased by 5.51% to CNY 219.53 million, indicating a commitment to innovation[48]. - The number of R&D personnel was 245, making up 8.62% of the total workforce[61]. - The company completed R&D projects with a total investment of CNY 21,952.88 million against a planned investment of CNY 22,300 million, achieving a completion rate of approximately 98.4%[63]. - The company has implemented various R&D projects across multiple subsidiaries, focusing on automotive and energy sectors, with all projects completed successfully[63]. Risk Management - The company has provided a detailed risk disclosure regarding potential future development risks in the report[6]. - The company’s future plans and development strategies are subject to investment risks and do not constitute commitments to investors[5]. - The company faces market risk due to high customer concentration and intensified competition, prompting a focus on technology and marketing innovation to enhance operational capabilities[90]. - Talent risk is significant as the company is technology-intensive; it emphasizes internal training and external recruitment to meet the growing demand for skilled personnel[90]. - The company is exposed to raw material price volatility, particularly for copper and aluminum, and is implementing comprehensive budget management and cost control measures to mitigate this risk[91]. - Environmental risks are addressed through increased investment in environmental protection measures to ensure compliance with emission standards during production processes[91]. Corporate Governance - The company has maintained a stable management structure with no changes in shareholding among key executives during the reporting period[131]. - The company emphasizes strict compliance with information disclosure regulations, ensuring transparency and protecting the rights of investors, particularly minority shareholders[149]. - The company has established a fair and transparent performance evaluation and incentive mechanism for senior management, aligning with legal regulations[150]. - The board of directors confirmed that the company's governance structure complies with relevant laws and regulations, with no significant discrepancies noted[152]. - The company has established a comprehensive technical management system to safeguard its core technologies, which are critical for its survival and development[90]. Shareholder Information - The total number of ordinary shareholders reached 143,802 by the end of the reporting period, a slight increase from 143,799 at the end of the previous month[115]. - The largest shareholder, Tehua Investment Holdings Co., Ltd., holds 426,208,383 shares, accounting for 21.80% of total shares, with 268,096,514 shares pledged[117]. - The total number of shares with limited sale conditions held by major shareholders is 268,096,514, which will be tradable after August 12, 2017[119]. - The company has no strategic investors or general legal entities becoming top 10 shareholders during the reporting period[121]. - The company reported a total of 800,000 shares held by directors and senior management at the beginning and end of the reporting period, indicating no change in shareholding[131].

Financial Performance - Operating income decreased by 7.45% to CNY 5,897,818,803.04 for the first nine months compared to the same period last year[7] - Net profit attributable to shareholders increased by 42.05% to CNY 171,972,643.65 for the first nine months compared to the same period last year[7] - Basic earnings per share rose by 41.94% to CNY 0.088[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 132,664,317.22, an increase of 35.33% compared to the same period last year[7] - Total operating revenue for Q3 2016 was CNY 1,864,917,604.61, a slight increase from CNY 1,850,128,199.86 in Q3 2015, representing a growth of approximately 0.8%[34] - Net profit for Q3 2016 reached CNY 65,266,024.43, up from CNY 39,826,593.58 in Q3 2015, indicating a growth of approximately 63.5%[36] - The total net profit attributable to the parent company for Q3 2016 was CNY 59,500,274.84, compared to CNY 37,463,596.85 in the same period last year, representing a year-over-year increase of 59.4%[38] - The total profit for Q3 2016 was CNY 57,914,111.96, compared to CNY 163,177,371.89 in the same period last year, indicating a decrease of 64.7%[41] - The company reported a total comprehensive income of CNY 57,857,294.00 for Q3 2016, down from CNY 162,718,829.33 in the same period last year, reflecting a decline of 64.6%[42] Cash Flow and Liquidity - Net cash flow from operating activities decreased by 46.11% to CNY 392,489,118.58 for the first nine months compared to the same period last year[7] - Operating cash flow for the first nine months was 853,225,218.35 RMB, an increase from 512,319,133.30 RMB year-over-year[47] - Cash inflow from financing activities totaled 245,000,000.00 RMB, down from 717,600,000.00 RMB year-over-year[47] - The net increase in cash and cash equivalents was 168,812,252.91 RMB, contrasting with a decrease of 130,991,211.23 RMB in the previous year[47] - Total cash and cash equivalents at the end of the period reached 166,320,586.55 RMB, up from 146,225,608.06 RMB at the beginning of the year[47] - Cash inflow from operating activities included 134,819,835.55 RMB from sales of goods and services[47] - Total cash outflow for operating activities was 835,441,270.58 RMB, compared to 185,845,693.09 RMB in the previous year[47] - The company reported a net cash flow from financing activities of -2,771,514.80 RMB, an improvement from -521,693,656.13 RMB year-over-year[47] Assets and Liabilities - Total assets increased by 4.00% to CNY 4,641,268,651.65 compared to the end of the previous year[7] - The company's cash and cash equivalents increased to ¥808,682,248.80, representing a 32.77% increase compared to the beginning of the year[16] - Total liabilities decreased by 72.75% in cash used for debt repayment, amounting to ¥551,062,101.48[18] - Total liabilities reached ¥1,445,790,163.14, compared to ¥1,358,760,767.33 at the beginning of the year, marking an increase of around 6.4%[28] - The company's equity attributable to shareholders rose to ¥2,829,406,221.02 from ¥2,767,849,043.21, reflecting an increase of about 2.2%[28] - Current assets totaled ¥3,033,771,512.07, up from ¥2,965,329,601.45 at the start of the year, indicating an increase of about 2.3%[26] - Non-current assets totaled ¥1,607,497,139.58, up from ¥1,497,548,285.35, reflecting an increase of about 7.4%[27] Shareholder Information - The total number of shareholders reached 141,680 at the end of the reporting period[12] - The largest shareholder, Tehua Investment Holdings Co., Ltd., holds 21.80% of the shares, with 426,208,383 shares[12] Government Support and Other Income - The company received government subsidies amounting to CNY 13,702,500.00 during the reporting period[9] - Investment income rose by 73.04% to ¥36,415,442.73, primarily due to the sale of equity in Minsheng E-commerce[17] - Other comprehensive income increased by 187.50% to ¥10,604,799.90, attributed to changes in the RMB exchange rate[16] - The company’s other comprehensive income increased to ¥10,604,799.90 from ¥3,700,810.98, representing a significant growth of approximately 186.5%[28] Operational Changes and Future Plans - The company is undergoing a major asset restructuring, with stock trading suspended since May 3, 2016, and ongoing disclosures every five trading days[19] - The company signed a framework agreement for asset purchase with Highlight Vision Limited on August 5, 2016, as part of the restructuring process[21] - The company received an inquiry letter from the Shanghai Stock Exchange regarding its asset purchase and fundraising plan on October 18, 2016[22] - The company plans to focus on expanding its market presence and enhancing product development in the upcoming quarters[40]