Financial Performance - The company's operating revenue for the first half of 2021 reached ¥5,226,910,671.51, representing a 51.25% increase compared to ¥3,455,890,069.59 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was ¥1,408,930,788.55, up 42.87% from ¥986,163,161.84 in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥1,378,219,970.94, an increase of 48.86% compared to ¥925,876,049.96 in the same period last year[18]. - The net cash flow from operating activities was ¥1,185,001,088.69, which is a 25.44% increase from ¥944,668,190.17 in the previous year[18]. - Basic earnings per share increased by 42.11% to CNY 1.08 compared to the same period last year[21]. - Operating profit for the first half of 2021 was ¥1,670,948,358.45, compared to ¥1,175,474,428.20 in the previous year, indicating an increase of about 42.2%[80]. - The total comprehensive income for the first half of 2021 was CNY 745,888,283.78, compared to CNY 678,508,066.13 in the previous year, showing a positive trend in overall financial performance[83]. Revenue Growth - Revenue from excavator cylinder products grew by 38% year-on-year, while non-standard cylinder products saw a 46% increase[22]. - The subsidiary Hydraulic Technology achieved a revenue increase of 102.23% due to significant sales growth in hydraulic pump and valve products[22]. - The company sold 474,000 excavator-specific cylinders, a 44% increase, generating revenue of CNY 1.98 billion, up 38% year-on-year[27]. - The company’s casting sales reached 43,400 tons, a 66% increase, with exports accounting for 37%[27]. Asset and Equity Changes - The total assets at the end of the reporting period were ¥11,725,429,964.74, reflecting a 10.41% increase from ¥10,620,327,083.83 at the end of the previous year[20]. - The net assets attributable to shareholders of the listed company were ¥7,923,006,176.17, an increase of 8.33% from ¥7,313,709,866.81 at the end of the previous year[20]. - Total assets increased to CNY 11.73 billion as of June 30, 2021, compared to CNY 10.62 billion at the end of 2020, representing a growth of approximately 10.5%[75]. - Shareholders' equity increased to CNY 7.96 billion, compared to CNY 7.35 billion, representing a growth of about 8.3%[75]. Research and Development - R&D expenses surged by 126.33% to ¥242,981,832.40, reflecting increased investment in research and development[29]. - The company has invested in new product development and technology, focusing on expanding its market presence and enhancing operational efficiency[76]. - Research and development expenses for the first half of 2021 were ¥242,981,832.40, significantly higher than ¥107,357,664.79 in the same period of 2020, indicating an increase of about 126.3%[79]. Environmental Compliance - The company reported a total COD discharge of 4.5 tons, with a discharge standard of 500 mg/L, and no exceedance of the standard[45]. - The company has established a wastewater treatment station that operates continuously and meets discharge standards[46]. - The company has implemented effective noise reduction measures at major noise sources in production areas[46]. - The company has completed environmental impact assessments for all projects and has obtained necessary approvals[47]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[50]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 67,337[66]. - The largest shareholder, Changzhou Hengyi Intelligent Equipment Co., Ltd., held 495,474,869 shares, representing 37.96% of the total shares[67]. - The second-largest shareholder, Shennuo Technology (Hong Kong) Limited, decreased its holdings by 5,423,300 shares, ending with 221,170,269 shares, or 16.94%[67]. - The top ten shareholders collectively held a significant portion of the company's shares, with the largest three shareholders controlling over 68%[67]. Financial Liabilities and Guarantees - The total amount of guarantees provided by the company is RMB 2,000 million, accounting for 0.27% of the company's net assets[59]. - The company has no significant litigation or arbitration matters during the reporting period[55]. - The company has no major related transactions that have not been disclosed in temporary announcements[56]. - Total guarantees provided by the company to subsidiaries during the reporting period amounted to 1,000.00 million, with a total balance of 2,000.00 million at the end of the reporting period[62]. Cash Flow and Liquidity - The company's cash and cash equivalents increased by 32.83% to ¥3,688,812,023.97, attributed to higher operating income and cash flow[32]. - The net cash flow from operating activities improved by 25.44% to ¥1,185,001,088.69, driven by timely collection of sales receivables[30]. - The ending balance of cash and cash equivalents reached CNY 3,629,447,429.44, up from CNY 2,625,936,075.28 at the end of the previous year[88]. Credit Risk Management - The company has recognized a bad debt provision of CNY 60,330,494.80 for the period, with a significant portion being newly recognized[185]. - The aging analysis shows that receivables within one year total ¥11,113,039.62, while those over five years amount to ¥2,253,176.32, indicating a significant portion of receivables are short-term[195]. - The company reported a 15.02% decrease in accounts receivable compared to the previous period, attributed to enhanced credit control over commercial acceptance[178]. Future Outlook - The company plans to enhance R&D efforts for proportional valves to expand into downstream sectors such as injection molding and underground engineering[27]. - Future outlook includes plans for market expansion and potential mergers and acquisitions to drive growth and innovation[76]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its operational capabilities[93].

Financial Performance - The company achieved a net profit of ¥1,248,950,161.18 for the year 2020, with a statutory reserve of ¥124,895,016.12 and a dividend distribution of ¥529,200,000 for the previous year[5]. - The proposed cash dividend for 2020 is ¥6.00 per 10 shares, totaling ¥783,216,000, with retained earnings of ¥2,062,312,451.65 to be carried forward[5]. - The total available profit for distribution to shareholders at the end of the reporting period was ¥2,845,528,451.65[5]. - The company's operating revenue for 2020 reached ¥7,855,038,369.93, representing a 45.09% increase compared to 2019[18]. - Net profit attributable to shareholders was ¥2,253,874,553.32, a significant increase of 73.88% year-over-year[18]. - The basic earnings per share for 2020 was ¥1.73, reflecting a 74.75% increase from the previous year[19]. - The weighted average return on equity rose to 34.73%, an increase of 10.41 percentage points compared to 2019[20]. - The company's gross profit margin improved by 6.39 percentage points due to optimized product structure and scale effects[20]. - Cash flow from operating activities for 2020 was ¥1,980,571,208.32, up 19.29% from the previous year[18]. - The total assets of the company at the end of 2020 were ¥10,620,327,083.83, a 26.03% increase from 2019[18]. Shareholder Returns - The company has a three-year shareholder return plan from 2018 to 2020, which aligns with its actual operating conditions[5]. - The company has committed to distributing at least 10% of the annual distributable profit as cash dividends, with a cumulative distribution of at least 30% over three years, provided there are no major investment plans[62]. - The company distributed CNY 529,200,000.00 in cash dividends in 2019, which was 40.83% of that year's net profit of CNY 1,296,199,825.84[60]. - The cash dividend for 2018 was CNY 264,600,000.00, accounting for 31.63% of the net profit of CNY 836,643,461.06[60]. Risk Management - The company has not faced any significant risks that could impact its future development as discussed in the report[7]. - The company is facing risks related to policy changes, market fluctuations, exchange rate volatility, and raw material price changes[58]. Corporate Governance - The company’s financial report has been audited by Rongcheng Accounting Firm, which issued a standard unqualified opinion[4]. - The board of directors and senior management have confirmed the accuracy and completeness of the annual report[4]. - The company has no major litigation or arbitration matters reported for the year[69]. - The company has maintained compliance with commitments made by major shareholders regarding competition and profit distribution[62]. - The company has established a sound corporate governance structure in compliance with relevant laws and regulations, ensuring clear responsibilities among shareholders, the board of directors, and management[115]. Research and Development - The company has established hydraulic R&D bases in Berlin, Chicago, Shanghai, and Changzhou, employing over 100 researchers and filing 76 patent applications in 2020, including 14 invention patents[26]. - The company’s R&D expenses increased by 27.52% to 308,639,192.72 RMB, indicating a focus on innovation and product development[30]. - The company plans to increase R&D investment to enhance product variety and maintain a technological edge in the hydraulic components sector[55]. Market Strategy - The company plans to continue its market expansion and product development strategies in the upcoming years[6]. - The company aims to become a leading provider of high-end hydraulic equipment and solutions with a focus on international market expansion through acquisitions and new establishments in the US and Japan[24]. - The hydraulic market is experiencing a continuous growth trend, with walking machinery accounting for nearly 50% of total hydraulic product sales[24]. Operational Efficiency - The company’s production and delivery lead time is generally controlled within 30-60 days, based on customer orders and safety stock[24]. - The company has identified the need for higher pressure, intelligence, precision, integration, and greening in hydraulic products to meet market demands[24]. - The company has successfully developed high-end hydraulic system products, enhancing its market competitiveness[27]. Employee Welfare - The company provided additional medical insurance for employees, with an annual coverage of 1 million RMB per insured employee, reflecting its commitment to employee welfare[79]. - The company conducted 8,987 training sessions in 2020, totaling 27,343 hours, with an average training duration of 10.34 hours per employee[113]. - The company has established a mature talent cultivation system, recruiting from key universities to ensure a steady supply of talent during rapid development[111]. Environmental Responsibility - In 2020, the company was officially listed as a "Green Factory" by the Ministry of Industry and Information Technology, following its previous recognition as a "Green Factory" in Changzhou[80]. - The company implemented energy-saving renovations, including the upgrade of energy-efficient lighting and rectifier replacements, to improve energy efficiency[81]. - The company established an environmental management system to comply with national environmental protection laws and regulations[81]. Financial Management - The company reported a financial expense of CNY 151,339,296.06, compared to a financial income of CNY 31,079,364.76 in the previous year[135]. - The company’s total liabilities increased to ¥3,268,678,090.67 in 2020 from ¥2,812,719,806.78 in 2019, representing a rise of approximately 16.2%[131]. - The company’s total assets reached ¥10,620,327,083.83 in 2020, compared to ¥8,426,883,642.10 in 2019, representing an increase of approximately 26.1%[131]. Compliance and Accounting - The company has implemented new revenue recognition standards starting January 1, 2020, adjusting contract liabilities by CNY 169,578,261.50 and other liabilities accordingly[65]. - The company adheres to the accounting policies and estimates in accordance with the enterprise accounting standards, ensuring the financial statements reflect a true and complete view of its financial position[158]. - The company recognizes expected credit losses based on the risk of default weighted average of financial instruments[172].

Financial Performance - Net profit attributable to shareholders rose by 125.53% to CNY 783,126,513.21 year-on-year[4] - Operating revenue surged by 108.71% to CNY 2,856,640,170.33 compared to the same period last year[4] - Basic earnings per share increased by 122.22% to CNY 0.60[4] - Net profit for the period was ¥784,155,623.26, representing a 125.45% increase from ¥347,822,765.52 year-on-year, attributed to substantial growth in product sales, particularly in excavator cylinders and non-standard cylinders[10] - Operating profit for Q1 2021 was ¥935,235,200.68, representing a 124.7% increase from ¥417,419,869.34 in Q1 2020[21] - Net profit for Q1 2021 was ¥937,531,382.29, compared to ¥418,194,465.73 in Q1 2020, indicating a growth of 124.7%[21] Revenue and Costs - The company's operating revenue reached ¥2,856,640,170.33, a significant increase of 108.71% compared to ¥1,368,713,953.54 in the previous year, driven by strong demand in downstream industries and improved product competitiveness[10] - Total operating revenue for Q1 2021 reached ¥2,856,640,170.33, a significant increase of 108.0% compared to ¥1,368,713,953.54 in Q1 2020[21] - Total operating costs for Q1 2021 were ¥1,914,055,397.71, up 101.7% from ¥950,083,593.26 in Q1 2020[21] Cash Flow - Net cash flow from operating activities increased by 85.41% to CNY 310,210,543.00[4] - Cash flow from operating activities showed a net increase of ¥310,210,543.00, up 85.41% from ¥167,309,598.60, primarily due to significant sales growth and timely collection of receivables[12] - Cash inflow from operating activities in Q1 2021 was CNY 2,155,750,776.59, a substantial increase from CNY 989,676,168.94 in Q1 2020[25] - The net cash flow from operating activities was 310,210,543.00 CNY, an increase from 167,309,598.60 CNY in the previous year, reflecting a growth of approximately 85.0%[26] Assets and Liabilities - Total assets increased by 10.20% to CNY 11,703,083,018.36 compared to the end of the previous year[4] - Current assets totaled ¥8.68 billion, up from ¥7.59 billion year-over-year, indicating a growth of about 14.3%[15] - Total liabilities amounted to ¥3.58 billion, up from ¥3.27 billion, which is an increase of approximately 9.5%[17] - Total liabilities increased to ¥2,633,369,794.32 from ¥2,411,248,972.49, reflecting a growth of 9.2%[20] Shareholder Information - The total number of shareholders reached 60,612 by the end of the reporting period[6] - The company's equity increased to ¥8.13 billion from ¥7.35 billion, representing a growth of approximately 10.6%[17] Research and Development - Research and development expenses increased by 114.75% to ¥114,137,192.58, reflecting the company's commitment to enhancing its R&D capabilities[10] - Research and development expenses in Q1 2021 amounted to ¥114,137,192.58, which is a 114.5% increase compared to ¥53,149,244.44 in Q1 2020[21] Investment Activities - The company reported a 2690.00% increase in cash received from investment recoveries, totaling ¥1,395,000,000.00, due to increased redemption of financial products[12] - Total cash inflow from investment activities reached 1,412,821,958.85 CNY, significantly higher than 67,953,226.97 CNY in the same period last year[26] - The net cash flow from investment activities was 526,168,591.48 CNY, compared to a negative cash flow of -127,820,850.65 CNY in the previous year, indicating a turnaround[26] Financial Expenses - The company’s financial expenses rose by 105.76% to ¥2,156,964.13, primarily due to fluctuations in the US dollar exchange rate[10] - The company reported a decrease in financial expenses, with interest expenses at CNY 6,603,750.04 in Q1 2021, down from CNY 8,323,202.75 in Q1 2020[23]

Financial Performance - The company's operating revenue for the first half of 2020 reached ¥3,455,890,069.59, representing a 23.75% increase compared to the same period last year[22]. - The net profit attributable to shareholders of the listed company was ¥986,163,161.84, an increase of 47.01% year-on-year[22]. - The net profit after deducting non-recurring gains and losses was ¥925,876,049.96, reflecting a 46.76% increase compared to the previous year[22]. - The net cash flow from operating activities was ¥944,668,190.17, which is an 18.83% increase from the same period last year[22]. - Basic earnings per share increased by 49.02% to CNY 0.76 compared to the same period last year[23]. - The overall gross profit margin improved by 4.82 percentage points due to optimized product structure and scale effects[23]. - The weighted average return on equity rose by 2.43 percentage points to 16.96%[23]. - The company’s overall operating income reached approximately 3.456 billion yuan, representing a year-on-year growth of 23.75%[42]. - The company’s net cash flow from operating activities was 944.67 million yuan, an increase of 18.83% compared to the previous year[42]. - The company reported a total comprehensive income of CNY 678,508,066.13 for the first half of 2020, compared to CNY 517,980,094.84 in the same period of 2019[108]. Assets and Liabilities - The total assets of the company at the end of the reporting period were ¥9,469,182,681.36, marking a 12.37% increase compared to the end of the previous year[22]. - The total liabilities increased to CNY 3,390,414,192.15 from CNY 2,812,719,806.78, indicating a rise of about 20.5%[97]. - The company's current assets reached CNY 6,552,891,715.61, up from CNY 5,491,802,119.34 at the end of 2019, reflecting a growth of approximately 19.4%[95]. - The total current liabilities rose to CNY 2,861,359,312.69 from CNY 2,169,939,369.40, an increase of approximately 32.0%[96]. - The company's accounts receivable increased by 70.01% to 636.60 million yuan, attributed to increased sales and timely collection of customer payments[45]. - The company's total liabilities increased, with accounts payable rising by 90.77% to 945.67 million yuan, mainly due to increased raw material purchases[46]. Research and Development - The company has established hydraulic R&D bases in Germany, the USA, and China, employing over 500 R&D personnel[34]. - The company has developed the HP3V series axial piston pump and HVS series multi-way control valve, which exceed foreign counterparts in precision control and fuel economy[34]. - The company's research and development expenses decreased by 8.15% to 107.36 million yuan, primarily due to reduced material costs[42]. - Research and development expenses for the first half of 2020 were ¥107,357,664.79, slightly down from ¥116,888,762.50 in the same period of 2019, indicating a strategic adjustment in R&D spending[103]. Market and Sales - Revenue from excavator cylinder products grew by 16% year-on-year, while hydraulic technology revenue surged by 86%[23]. - In the first half of 2020, the company sold 329,500 excavator-specific hydraulic cylinders, a year-on-year increase of 27%, generating sales revenue of 1.432 billion yuan, up 16%[38]. - The subsidiary Hydraulic Technology achieved sales revenue of 1.191 billion yuan, a significant year-on-year increase of 85.81%, driven by high growth in excavator sales and increased market share[39]. - The company exports over 20% of its products, with major clients including Caterpillar and SANY[35]. - The company has set up a comprehensive marketing network in Europe, North America, and Japan to provide localized services[35]. Risk Management - The company emphasized the importance of risk awareness regarding future development strategies and potential risks[8]. - The company is facing risks related to policy changes, market fluctuations, exchange rate volatility, and raw material price changes, which could impact its financial performance[52]. Shareholder and Equity Information - The company did not propose any profit distribution plan or capital reserve transfer to increase share capital during the reporting period[7]. - The company has committed to cash dividends as long as it meets the conditions of profitability and sufficient retained earnings[57]. - The company distributed a cash dividend of RMB 6.00 per 10 shares, totaling RMB 529.2 million, and increased its total share capital by 423.36 million shares through capital reserve conversion[78]. - The total equity attributable to shareholders increased to ¥5,614,163,835.32, reflecting a decrease due to profit distribution of ¥529,200,000.00[116]. - The company reported a profit distribution of -529.2 million for the current period, indicating a significant reduction in retained earnings[122]. Compliance and Governance - The report was not audited, and the management confirmed the accuracy and completeness of the financial report[6]. - The company has renewed the appointment of the auditing firm for the 2020 financial year[58]. - The company has committed to covering any unpaid social insurance and housing fund contributions for its employees, ensuring compliance with regulations[56]. - The company has no significant litigation or arbitration matters during the reporting period[59]. Financial Management - The company provided a loan of RMB 150 million to its controlling shareholder, with an annual interest rate of 3% and a borrowing term of 36 months[67]. - The total amount of guarantees provided by the company, including those to subsidiaries, is RMB 12.5 million, which accounts for 2.06% of the company's net assets[70]. - The company has assessed its ability to continue as a going concern for the next 12 months and found no issues affecting this capability[134]. Accounting Policies - The company follows specific accounting policies for mergers and acquisitions, ensuring proper valuation of assets and liabilities during consolidation[140]. - The company recognizes unrealized internal transaction gains and losses in the net profit attributable to the parent company, ensuring proper allocation between minority interests[146]. - The company measures derivative financial instruments at fair value on the contract signing date and recognizes them as assets or liabilities based on their fair value[161]. - The company applies the expected credit loss model for impairment of loan commitments[159].