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].

Financial Performance - Net profit attributable to shareholders increased by 160.38% to CNY 719,405,788.25 for the first nine months[7] - Operating revenue for the first nine months reached CNY 3,159,891,182.33, a 55.92% increase year-on-year[7] - Basic earnings per share rose by 86.36% to CNY 0.82[7] - Operating profit for the first nine months of 2018 was ¥816,132,039.97, compared to ¥327,766,987.53 in the same period of 2017, reflecting a significant increase[26] - The net profit for Q3 2018 was CNY 219,693,850.38, up 98.7% from CNY 110,561,906.08 in the same period last year[31] - The total profit for the first nine months of 2018 reached CNY 755,290,868.03, compared to CNY 360,099,131.19 for the same period in 2017, marking a 109.0% increase[31] Revenue and Sales Growth - Operating revenue for the year-to-date reached ¥3,159,891,182.33, a 55.92% increase attributed to substantial sales growth in excavator-specific hydraulic cylinders and main control valves[14] - Cash received from sales increased by 34.40% to ¥2,510,284,682.71, reflecting improved collection from increased sales[15] - Cash inflow from sales of goods and services for the first nine months of 2018 was ¥2,174,862,365.64, up from ¥1,787,893,322.08 in the same period last year[36] Assets and Liabilities - Total assets increased by 13.50% to CNY 6,986,940,598.84 compared to the end of the previous year[7] - The company’s total liabilities increased by 42.08% to ¥723,422,409.73, driven by higher accounts payable due to increased procurement[14] - Total current assets increased to ¥4,232,471,468.93 from ¥3,294,541,273.98, reflecting a significant rise in cash and receivables[17] - Total liabilities increased to ¥2,524,396,806.86 from ¥2,282,932,671.82, indicating a rise in financial obligations[19] - Owner's equity rose to ¥4,462,543,791.98 from ¥3,873,158,504.21, reflecting strong retained earnings growth[19] Cash Flow - Net cash flow from operating activities surged by 227.30% to CNY 371,417,933.58 compared to the same period last year[7] - Operating cash inflow for the first nine months of 2018 reached ¥2,510,284,682.71, a 34.3% increase from ¥1,867,775,596.91 in the same period last year[33] - The net cash flow from operating activities for the first nine months of 2018 was ¥208,139,654.31, a recovery from a negative cash flow of ¥6,909,814.87 in the same period last year[36] Shareholder Information - The total number of shareholders reached 11,115[10] - The top three shareholders hold a combined 70.74% of the shares, with 常州恒屹流体科技有限公司 holding 37.96%[10] Research and Development - Research and development expenses grew by 37.71% to ¥124,695,713.37, reflecting increased investment in product development[14] - Research and development expenses for the first nine months of 2018 were ¥124,695,713.37, up from ¥90,552,064.40 in the same period of 2017, indicating a 37.7% increase[26] Investment Activities - Investment cash received decreased by 32.16% to ¥1,243,000,000 due to a reduction in maturing financial products[16] - Net cash flow from investment activities improved by 146.41% to ¥6,751,575.59, attributed to increased equipment acquisition expenditures[16] - Total cash inflow from investment activities for the first nine months of 2018 was ¥1,221,386,780.95, compared to ¥1,093,840,427.82 in the same period last year[38] Other Financial Metrics - The company reported a total of CNY 56,786,454.04 in non-recurring gains for the current period[9] - The company reported a financial expense of CNY -54,053,411.69 in Q3 2018, compared to CNY 22,874,354.77 in Q3 2017, indicating a significant change in financial performance[31] - The company achieved a gross profit margin of approximately 35.5% in Q3 2018, compared to 36.7% in Q3 2017, showing a slight decrease in profitability[30]

Financial Performance - The company's operating revenue for the first half of 2018 reached ¥2,163,971,639.89, representing a 59.23% increase compared to ¥1,359,021,157.48 in the same period last year[22]. - Net profit attributable to shareholders for the first half of 2018 was ¥463,460,889.74, a significant increase of 186.65% from ¥161,683,000.28 in the previous year[22]. - The net profit after deducting non-recurring gains and losses was ¥421,225,172.22, up 185.39% from ¥147,593,977.25 in the same period last year[22]. - The net cash flow from operating activities was ¥192,297,982.32, a remarkable increase of 439.77% compared to ¥35,625,784.68 in the previous year[23]. - Basic earnings per share increased by 103.85% to CNY 0.53 compared to the same period last year[24]. - Operating profit for the first half of 2018 was ¥526,223,108.83, up 170.5% from ¥194,541,474.56 in the previous year[94]. - The company reported a total operating cost of ¥1,661,961,098.47, which is an increase of 38.7% from ¥1,197,123,145.26 in the previous year[94]. Asset and Equity Growth - Total assets at the end of the reporting period amounted to ¥6,806,095,289.68, reflecting a 10.56% increase from ¥6,156,091,176.03 at the end of the previous year[23]. - The company's net assets attributable to shareholders at the end of the reporting period were ¥4,171,199,170.88, an increase of 8.48% from ¥3,845,269,229.65 at the end of the previous year[23]. - The company's total equity attributable to shareholders reached CNY 4,171,199,170.88, up from CNY 3,845,269,229.65, indicating a growth of approximately 8.5%[89]. - The company's total equity at the end of the current period is CNY 3,775,695,611.85, up from CNY 3,618,790,583.21 at the end of the previous period, indicating a growth of approximately 4.34%[117]. Revenue Sources and Product Performance - Revenue from excavator cylinder products grew by 61.20% year-on-year, while non-standard cylinder products increased by 29.29%[24]. - Hydraulic Technology subsidiary's revenue surged by 220.30% due to significant sales growth of excavator main control valves[24]. - The sales volume of excavator special cylinders reached 226,155 units, up 45.46% year-on-year, generating a revenue of 98,591.81 million RMB, which is a 61.20% increase[38]. - The company developed 156 new products in the first half of 2018, including 82 types of hydraulic pumps and valves, contributing to its market expansion[40]. Market Position and Competition - The company holds over 40% market share in excavator-specific cylinder products[34]. - The company faced market risks due to intensified competition in the hydraulic pump and valve sector, which could impact profit margins and market share[51]. Research and Development - The company has established hydraulic R&D bases in Berlin, Chicago, Shanghai, and Changzhou, maintaining high R&D investment over the past five years[33]. - The company’s R&D expenditure rose by 36.92% to 79,927,173.31 RMB, highlighting its commitment to innovation and product development[41]. - The company is focused on expanding its market presence and enhancing its product offerings in hydraulic systems and components[120]. Cash Flow and Investment Activities - The company’s investment activities generated a net cash flow of 99,976,480.73 RMB, reflecting increased asset acquisition expenditures[41]. - The company reported total cash inflow from investment activities of CNY 905,114,298.89, while cash outflow was CNY 805,137,818.16, resulting in a net cash inflow of CNY 99,976,480.73[101]. - The net cash flow from investment activities was 111,612,937.45 RMB, an increase from 90,025,376.57 RMB in the previous period, representing a growth of approximately 24%[104]. Shareholder Information and Dividends - The company plans to distribute cash dividends amounting to at least 10% of the distributable profit for the year, with a cumulative distribution principle of no less than 30% of the average annual distributable profit over the next three years[58]. - The total number of ordinary shareholders reached 10,154 by the end of the reporting period[76]. - The company distributed dividends totaling 138,600,000.00 RMB to shareholders[108]. Accounting and Financial Reporting - The company adheres to the accounting standards and has prepared its financial statements in accordance with these standards, ensuring a true and complete reflection of its financial status[129]. - The company has not reported any significant changes in its accounting firm, continuing with Huapu Tianjian as the auditing institution for the 2018 financial year[59]. - The company has not reported any major accounting errors that require retrospective restatement[70]. Environmental and Compliance Standards - The company has implemented strict environmental operational standards and has been certified under the ISO14001 environmental management system[69]. - The company has not reported any major environmental violations or disputes during the reporting period[69]. Related Party Transactions - The total amount of related party transactions in the reporting period is CNY 13,003 million[64]. - The company anticipates related party transactions for 2018 to include sales of 5 million RMB to Hengli Pneumatic and purchases of 10 million RMB from Hengli Pneumatic[61].