证券代码：601100 证券简称：恒立液压 公告编号： 临 2023-022 江苏恒立液压股份有限公司 关于召开 2022 年度暨 2023 年第一季度业绩说明会的 公告 重要内容提示： 会议召开时间：2023 年 05 月 22 日(星期一) 下午 16:00-17:00 会议召开地点：上海证券交易所上证路演中心（网址： http://roadshow.sseinfo.com/） 会议召开方式：上证路演中心视频直播和网络互动 投资者可于 2023 年 05 月 15 日(星期一) 至 05 月 19 日(星期 五)16:00 前登录上证路演中心网站首页点击"提问预征集"栏目或 通过公司邮箱 hlzqb@hengli.net 进行提问。公司将在说明会上对投 资者普遍关注的问题进行回答。 江苏恒立液压股份有限公司（以下简称"公司"）已于 2023 年 4 月 25 日发布公司 2022 年度报告及 2023 年第一季度报告，为便于广 大投资者更全面深入地了解公司2022年度及2023 年第一季度经营成 果、财务状况，公司计划于 2023 年 05 月 22 日 下午 16:00-17:00 举行 2022 年度 ...

Financial Performance - The company's operating revenue for Q3 2022 was ¥2,033,133,653.67, representing a year-on-year increase of 3.96%[4] - The net profit attributable to shareholders for Q3 2022 was ¥692,106,722.94, an increase of 19.98% compared to the same period last year[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥674,989,792.10, reflecting a 24.14% increase year-on-year[4] - Total revenue for the first three quarters of 2022 was CNY 5,919,577,855.73, a decrease of 17.6% compared to CNY 7,182,561,041.30 in the same period of 2021[17] - Net profit for Q3 2022 was CNY 1,752,603,492.72, a decrease of 12.0% from CNY 1,990,146,269.35 in Q3 2021[18] - Operating profit for Q3 2022 was CNY 1,961,412,241.31, down from CNY 2,259,089,036.37 in Q3 2021, a decline of 13.2%[18] - The total comprehensive income for the period was CNY 1,804,119,792.50, a decrease from CNY 1,970,117,327.34 in the previous year[19] - Basic earnings per share for the period was CNY 1.34, down from CNY 1.52 in the same period last year[19] Assets and Liabilities - The total assets at the end of the reporting period were ¥13,662,029,533.21, a 10.78% increase from the end of the previous year[5] - Total assets increased to CNY 13,662,029,533.21 in Q3 2022, compared to CNY 12,332,043,327.93 in Q3 2021, marking a growth of 10.8%[16] - Total liabilities rose to CNY 3,567,637,605.96 in Q3 2022, up from CNY 3,092,775,476.26 in Q3 2021, indicating an increase of 15.4%[16] - The company's total equity reached CNY 10,094,391,927.25 in Q3 2022, compared to CNY 9,239,267,851.67 in Q3 2021, reflecting a growth of 9.3%[16] Cash Flow - The cash flow from operating activities for the year-to-date was ¥1,419,728,736.46, down 32.62% year-on-year[5] - Cash flow from operating activities generated a net amount of CNY 1,419,728,736.46, compared to CNY 2,107,091,733.25 in the previous year[20] - Cash inflow from investment activities totaled CNY 2,702,798,807.77, while cash outflow was CNY 2,871,985,615.73, resulting in a net cash flow of -CNY 169,186,807.96[21] - Cash flow from financing activities resulted in a net cash outflow of -CNY 554,487,974.41, compared to -CNY 427,791,439.78 in the previous year[21] - The ending balance of cash and cash equivalents was CNY 4,656,496,264.11, an increase from CNY 3,362,673,257.68 in the previous year[21] Shareholder Information - Total number of common shareholders at the end of the reporting period is 52,871[10] - The largest shareholder, Changzhou Hengyi Intelligent Equipment Co., Ltd., holds 495,474,869 shares, accounting for 37.96% of total shares[10] - The company has a total of 221,170,269 shares held by Sinno Technology (Hong Kong) Limited, representing 16.94% of total shares[10] - The company has a total of 178,186,340 shares held by Ningbo Hengyi Investment Co., Ltd., accounting for 13.65% of total shares[10] Operational Highlights - The company's main product sales, particularly excavator cylinders and hydraulic pumps, saw a decline of 22% and 25% respectively due to the downturn in downstream industry demand[9] - The company reported a significant increase in goodwill of 132.75% due to the acquisition of Hengli Surface[8] - The company experienced a 50.94% decrease in advance receipts due to uncontracted sales at the end of the reporting period[8] Current Assets - Total current assets as of September 30, 2022, amount to ¥10,103,683,562.93, an increase from ¥9,146,046,320.11 at the end of 2021[14] - Cash and cash equivalents are reported at ¥4,711,806,398.54, up from ¥3,642,807,377.77 year-over-year[14] - Accounts receivable increased to ¥1,127,339,215.60 from ¥1,112,123,571.59 in the previous year[14] - Inventory has risen to ¥1,795,951,273.15 compared to ¥1,606,653,422.76 at the end of 2021[14] - Non-current assets include fixed assets valued at ¥2,546,916,885.37, slightly down from ¥2,579,905,097.22[14] - The company has invested in intangible assets totaling ¥434,761,194.93, an increase from ¥266,501,623.76[14] Expenses - Total operating costs for the first three quarters of 2022 were CNY 4,009,816,231.81, down from CNY 4,983,903,299.72 in 2021, reflecting a reduction of 19.5%[17] - Research and development expenses for Q3 2022 amounted to CNY 499,655,393.87, slightly up from CNY 483,144,815.58 in Q3 2021[18] - The company reported a decrease in sales expenses to CNY 74,207,286.71 in Q3 2022 from CNY 61,938,136.57 in Q3 2021, an increase of 19.5%[18] Tax and Refunds - The company reported a tax refund of CNY 11,131,115.32, compared to CNY 2,416,081.04 in the previous year[20]

Financial Performance - The company's operating revenue for Q3 2022 was ¥2,033,133,653.67, representing a year-on-year increase of 3.96%[4] - The net profit attributable to shareholders for Q3 2022 was ¥692,106,722.94, an increase of 19.98% compared to the same period last year[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥674,989,792.10, reflecting a 24.14% increase year-on-year[4] - Total revenue for the first three quarters of 2022 was CNY 5,919,577,855.73, a decrease of 17.6% compared to CNY 7,182,561,041.30 in the same period of 2021[17] - Net profit for the first three quarters of 2022 was CNY 1,752,603,492.72, compared to CNY 1,990,146,269.35 in 2021, indicating a decline of 11.9%[18] - Total comprehensive income for the period was CNY 1,804,119,792.50, a decrease from CNY 1,970,117,327.34 in the previous year[19] - Basic earnings per share decreased to CNY 1.34 from CNY 1.52 year-over-year[19] Assets and Liabilities - The total assets at the end of the reporting period were ¥13,662,029,533.21, an increase of 10.78% compared to the end of the previous year[5] - Total assets increased to CNY 13,662,029,533.21 in Q3 2022, compared to CNY 12,332,043,327.93 in Q3 2021, representing a growth of 10.8%[16] - Total liabilities rose to CNY 3,567,637,605.96 in Q3 2022, up from CNY 3,092,775,476.26 in Q3 2021, marking an increase of 15.4%[16] - The company's equity attributable to shareholders reached CNY 10,049,231,532.06 in Q3 2022, compared to CNY 9,195,704,137.13 in Q3 2021, reflecting a growth of 9.3%[16] Cash Flow - The cash flow from operating activities for the year-to-date was ¥1,419,728,736.46, a decrease of 32.62% compared to the same period last year[5] - Net cash flow from operating activities was CNY 1,419,728,736.46, down from CNY 2,107,091,733.25 in the same period last year[20] - Cash inflow from operating activities totaled CNY 5,125,384,670.90, compared to CNY 6,602,722,127.32 in the previous year[20] - Cash outflow from operating activities was CNY 3,705,655,934.44, a decrease from CNY 4,495,630,394.07 year-over-year[20] - Net cash flow from investing activities was CNY -169,186,807.96, improving from CNY -856,255,844.24 in the previous year[21] - Cash inflow from investing activities was CNY 2,702,798,807.77, compared to CNY 2,926,368,813.35 in the previous year[21] - Cash flow from financing activities resulted in a net outflow of CNY -554,487,974.41, compared to CNY -427,791,439.78 in the previous year[21] - The ending cash and cash equivalents balance was CNY 4,656,496,264.11, up from CNY 3,362,673,257.68 year-over-year[21] Shareholder Information - Total number of common shareholders at the end of the reporting period is 52,871[10] - The largest shareholder, Changzhou Hengyi Intelligent Equipment Co., Ltd., holds 495,474,869 shares, accounting for 37.96% of total shares[10] - The top ten shareholders collectively hold a significant portion of the company's shares, indicating concentrated ownership[11] Operational Highlights - The company's excavator cylinder product revenue declined by 22% year-on-year, while hydraulic pump and valve product revenue decreased by 25%[9] - The company reported a significant increase in goodwill by 132.75% due to the acquisition of Hengli Surface[8] - The company experienced a 55.46% decrease in notes receivable at the end of the reporting period, attributed to improved customer payment structures[8] - The company received government subsidies amounting to ¥12,155,038.83 during the reporting period, which are closely related to its normal business operations[6] Expenses - Total operating costs for the first three quarters of 2022 were CNY 4,009,816,231.81, down from CNY 4,983,903,299.72 in 2021, reflecting a reduction of 19.5%[17] - Research and development expenses for the third quarter of 2022 amounted to CNY 499,655,393.87, slightly up from CNY 483,144,815.58 in the previous year[18] - The company reported a decrease in sales expenses to CNY 74,207,286.71 in 2022 from CNY 61,938,136.57 in 2021, indicating an increase of 19.5%[18]

Financial Performance - The company's operating revenue for the first half of 2022 was approximately ¥3.89 billion, a decrease of 25.65% compared to ¥5.23 billion in the same period last year[15]. - The net profit attributable to shareholders of the listed company was approximately ¥1.06 billion, down 24.97% from ¥1.41 billion in the previous year[15]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥1.01 billion, a decrease of 26.75% compared to ¥1.38 billion in the same period last year[15]. - The net cash flow from operating activities was approximately ¥1.04 billion, down 12.01% from ¥1.19 billion in the previous year[15]. - Basic earnings per share decreased by 25.00% to CNY 0.81 compared to the same period last year[17]. - Revenue for the reporting period was CNY 3.89 billion, a decline of 25.65% year-on-year[22]. - The total profit for the first half of 2022 was approximately ¥1.24 billion, a decrease of 26% from ¥1.68 billion in the same period of 2021[71]. - The company's operating profit for the first half of 2022 was approximately ¥1.23 billion, down from ¥1.67 billion in the same period of 2021[69]. - The company reported a total comprehensive income of approximately ¥1.06 billion for the first half of 2022, compared to ¥1.39 billion in the same period of 2021[70]. Assets and Liabilities - The total assets at the end of the reporting period were approximately ¥13.09 billion, an increase of 6.12% from ¥12.33 billion at the end of the previous year[16]. - The net assets attributable to shareholders of the listed company at the end of the reporting period were approximately ¥9.30 billion, an increase of 1.16% from ¥9.20 billion at the end of the previous year[16]. - Total liabilities reached ¥3,740,499,511.32, compared to ¥3,092,775,476.26, marking an increase of around 20.9%[62]. - Current liabilities rose to ¥3,326,491,312.09, up from ¥2,690,746,336.75, indicating a significant increase of approximately 23.6%[62]. - Total current assets increased to ¥9,739,290,600.82 from ¥9,146,046,320.11, representing a growth of approximately 6.5%[60]. - The total amount of other current assets at the end of the period is CNY 21,675,051.92, up from CNY 13,847,813.93 at the beginning of the period, which is an increase of about 56.4%[194]. Cash Flow - The company reported a net cash flow from operating activities of CNY 1,04 billion, a decrease of 12.01% year-on-year[22]. - Cash inflow from investment activities totaled CNY 1,968,177,311.48, a decrease of 25.0% from CNY 2,626,373,986.10 in the previous year[74]. - Net cash flow from investment activities was negative at CNY -181,827,066.26, compared to a positive CNY 136,185,038.62 in the first half of 2021[74]. - Cash inflow from financing activities was CNY 163,681,632.46, down 68.4% from CNY 517,569,815.72 in the same period last year[74]. - The ending balance of cash and cash equivalents increased to CNY 4,152,502,177.98, compared to CNY 3,629,447,429.44 at the end of the first half of 2021[75]. Research and Development - Research and development expenses increased by 23.25% to CNY 299.47 million, reflecting higher investment in new product development[22]. - The company's research and development expenses increased to approximately ¥187.45 million in the first half of 2022, up from ¥154.94 million in the same period of 2021[71]. - The company is focusing on market expansion and new product development, although specific figures or timelines were not provided in the report[68]. Environmental and Social Responsibility - The company reported a wastewater discharge of 4.3 tons with a COD concentration of 56 mg/L, well below the standard of 500 mg/L[34]. - The company has established a wastewater treatment station that operates continuously and meets discharge standards[35]. - The company invested over 3.9 million RMB in environmental protection measures in the first half of 2022, including the renovation of LED energy-saving lights[40]. - The company has implemented a carbon peak and carbon neutrality plan for 2021-2025, focusing on energy management and the adoption of energy-saving technologies[40]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period was 50,704[53]. - The largest shareholder, Changzhou Hengyi Intelligent Equipment Co., Ltd., holds 37.96% of the shares, totaling 495,474,869 shares[54]. - The second-largest shareholder, Shennuo Technology (Hong Kong) Co., Ltd., holds 16.94% of the shares, totaling 221,170,269 shares[54]. - The company has committed to distributing at least 10% of its distributable profits as cash dividends annually, with a cumulative distribution of at least 30% of the average annual distributable profits over the next three years[44]. Risk Factors - The company faces risks related to macroeconomic conditions, which could impact customer demand and product sales[29]. - The company has accelerated its international strategy, increasing investments in markets such as Europe, Japan, North America, and Southeast Asia[29]. Related Party Transactions - Total amount of related party transactions reached CNY 28,660,027.91, with specific transactions including CNY 24,828,504.54 for purchasing parts and equipment[48]. - The company has no significant related party transactions during the reporting period[47]. Accounting Policies - The financial statements are prepared based on the going concern principle, with no identified issues affecting the company's ability to continue operations[92]. - The company adheres to the accounting policies and estimates as per the enterprise accounting standards, ensuring the financial statements reflect a true and complete picture of its financial status[94]. - The company applies the acquisition accounting method for business combinations, measuring identifiable assets and liabilities at fair value on the acquisition date[96]. Inventory and Receivables - The total inventory at the end of the period was CNY 1,138,807,723.68, with raw materials accounting for CNY 897,699,823.16 and work in progress for CNY 241,107,900.52[188]. - The total accounts receivable amounted to CNY 290,812,944.35, with a bad debt provision of CNY 10,146,549.96, representing a provision rate of 3.49%[158]. - The accounts receivable financing balance increased by 29.09% compared to the previous period, primarily due to an increase in bank acceptance payments from customers[177].

Financial Performance - The company's operating revenue for Q1 2022 was ¥2,200,388,645.04, representing a decrease of 22.97% compared to the same period last year[4] - The net profit attributable to shareholders was ¥528,156,293.19, down 32.56% year-on-year[4] - The basic earnings per share were ¥0.40, reflecting a decline of 33.33% compared to the previous year[4] - Net profit for Q1 2022 was approximately 529.02 million, a decrease of 32.5% compared to 784.16 million in Q1 2021[21] - Total revenue from operating activities was approximately 1.98 billion, down from 2.16 billion in the same period last year, reflecting a decline of about 8.3%[23] - Operating profit for Q1 2022 was approximately 615.10 million, a decrease of 34.2% compared to 935.24 million in Q1 2021[21] - Total comprehensive income for Q1 2022 was approximately 525.35 million, down from 771.88 million in Q1 2021, reflecting a decline of about 31.9%[22] Assets and Liabilities - The total assets at the end of the reporting period were ¥12,767,001,897.74, an increase of 3.53% from the end of the previous year[5] - The total assets as of March 31, 2022, were RMB 12,767,001,897.74, compared to RMB 12,332,043,327.93 at the end of 2021, reflecting a growth of 3.5%[17] - The total liabilities as of March 31, 2022, were RMB 3,000,091,432.22, a decrease from RMB 3,092,775,476.26 at the end of 2021, indicating a reduction of 3.0%[18] - The company's total equity as of March 31, 2022, was RMB 9,766,910,465.52, an increase from RMB 9,239,267,851.67 at the end of 2021, reflecting a growth of 5.7%[18] Cash Flow - The net cash flow from operating activities was ¥285,167,319.54, down 8.07% year-on-year[4] - Cash flow from operating activities was approximately 285.17 million, a decrease of 8.1% compared to 310.21 million in Q1 2021[23] - Net cash flow from investing activities was $142.8 million, a decrease of 72.9% compared to $526.2 million in the previous period[24] - Total cash inflow from financing activities was $24.3 million, down 92% from $303.7 million in the previous period[24] - Net cash flow from financing activities was -$161.8 million, compared to a positive $40.7 million in the previous period[24] - Cash and cash equivalents at the end of the period totaled $3.84 billion, an increase from $3.47 billion in the previous period[24] - The net increase in cash and cash equivalents was $242.6 million, significantly lower than $890.9 million in the previous period[24] Operational Metrics - The company's hydraulic cylinder product revenue declined by 22% due to a downturn in the downstream industry[8] - The revenue from the subsidiary hydraulic technology decreased by 33% due to a drop in sales[8] - The cash and cash equivalents as of March 31, 2022, amounted to RMB 3,865,306,480.53, an increase from RMB 3,642,807,377.77 at the end of 2021[15] - The inventory as of March 31, 2022, was RMB 1,532,956,881.37, down from RMB 1,606,653,422.76 at the end of 2021, showing a decrease of 4.6%[15] - The accounts receivable as of March 31, 2022, were RMB 1,121,463,412.14, slightly up from RMB 1,112,123,571.59 at the end of 2021, indicating a growth of 0.3%[15] Government Support and Expenses - The company received government subsidies amounting to ¥12,172,753.07, which are closely related to normal business operations[6] - Research and development expenses for Q1 2022 were approximately 113.53 million, slightly down from 114.14 million in Q1 2021[21] - Tax expenses for Q1 2022 were approximately 89.99 million, a decrease of 41.5% compared to 153.38 million in Q1 2021[21] - Other comprehensive income after tax for Q1 2022 was approximately -3.66 million, compared to -12.28 million in Q1 2021[22] - Investment income for Q1 2022 was approximately 12.26 million, significantly up from 3.59 million in Q1 2021, marking an increase of about 241.5%[21]

Financial Performance - The company achieved a net profit of ¥1,238,534,456.27 for the fiscal year 2021, with a statutory reserve of ¥123,853,445.63 and a dividend distribution of ¥783,216,000.00 for the previous year[5]. - The proposed cash dividend for 2021 is ¥7.30 per 10 shares, totaling ¥952,912,800.00, with retained earnings of ¥2,224,080,662.29 to be carried forward[5]. - The total distributable profit available for shareholders at the end of the reporting period was ¥3,176,993,462.29[5]. - The company's operating revenue for 2021 was CNY 9,309,218,098.53, representing an 18.51% increase compared to CNY 7,855,038,369.93 in 2020[21]. - The net profit attributable to shareholders for 2021 was CNY 2,693,599,997.73, a 19.51% increase from CNY 2,253,874,553.32 in 2020[21]. - The net cash flow from operating activities increased by 41.15% to CNY 2,795,650,375.60 in 2021, compared to CNY 1,980,571,208.32 in 2020[21]. - The company's total assets reached CNY 12,332,043,327.93 at the end of 2021, up 16.12% from CNY 10,620,327,083.83 at the end of 2020[21]. - Basic earnings per share for 2021 were CNY 2.06, a 19.08% increase from CNY 1.73 in 2020[22]. - The weighted average return on equity decreased by 1.9 percentage points to 32.83% in 2021, down from 34.73% in 2020[22]. Research and Development - The company increased its R&D investment to enhance long-term competitiveness and improve internal management efficiency[29]. - The company invested 636 million yuan in R&D, a 106% increase compared to the previous year, and filed 72 patent applications, including 10 invention patents[32]. - The company plans to increase R&D investment to enhance product variety and maintain a technological and quality advantage in the hydraulic cylinder market[64]. - The company is focusing on expanding its market share in foreign brands of excavator hydraulic cylinders while continuing to strengthen its leading position in domestic brands[64]. Market Strategy and Expansion - The company plans to continue its strategic focus on market expansion and new product development in the upcoming years[6]. - The company plans to expand its market share in electric control and execution devices to align with the electrification trend in the construction machinery industry[29]. - The company is expanding its international presence with a new factory in Mexico, which is currently in the preparation stage[31]. - The company plans to maintain a borrowing limit of 150 million RMB from its controlling shareholder, with an interest rate of 3% for a term of 36 months[130]. Corporate Governance - The company is committed to ensuring the authenticity, accuracy, and completeness of the annual report[4]. - The audit report issued by the accounting firm is a standard unqualified opinion[4]. - The management team includes experienced professionals with backgrounds in engineering and finance, enhancing the company's strategic direction[77]. - The company has established a robust internal audit and compliance framework, ensuring financial integrity and operational efficiency[77]. - The performance evaluation for executives is based on KPI metrics, ensuring accountability and alignment with company goals[81]. Environmental Responsibility - The company reported a total pollutant discharge of 11.5 tons, with a permitted discharge limit of 30 tons, and no exceedance of standards noted[109]. - Environmental protection investments exceeded 6.6 million yuan in 2021, representing a 37% year-on-year increase[117]. - The company has implemented energy-saving measures, including the replacement of traditional lighting with LED lights, achieving significant energy savings[117]. - The company has established a wastewater treatment station that operates continuously and meets discharge standards[110]. Financial Management - The company has committed to not engaging in any competitive activities that conflict with its business interests, ensuring compliance with its commitments[120]. - The company commits to a stable cash dividend plan, distributing no less than 10% of the annual distributable profit in cash, and a cumulative distribution of at least 30% of the average annual distributable profit over the next three years[122]. - The company has no significant litigation or arbitration matters during the reporting period[126]. - The company has no significant related party transactions involving asset or equity acquisitions or sales during the reporting period[129]. Shareholder Information - The total number of employees in the parent company and major subsidiaries is 5,801, with 4,009 in production roles[95]. - The company reported a total of ¥3,176,993,462.29 available for distribution to shareholders at the end of the reporting period[100]. - The company has established a three-year shareholder return plan from 2021 to 2023[5]. - The company’s major customers accounted for 60.17% of total annual sales, indicating a strong reliance on a few key clients[47]. Risk Management - The company emphasizes the importance of risk awareness regarding future plans and development strategies[7]. - The company faces market risks in its international operations due to various factors such as political and cultural differences[67]. - The company is exposed to exchange rate risks, particularly with its growing North American business involving USD transactions[67]. - The company is vulnerable to fluctuations in raw material prices, including steel and castings, which could impact production costs[67].

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]