2021 年第三季度报告 单位：元 币种：人民币 | 项目 | 本报告期 | 本报告期比 | 年初至报告期末 | 年初至报告期 | | --- | --- | --- | --- | --- | | | | 上年同期增 | | 末比上年同期 | | | | 减变动幅度 | | 增减变动幅度 | | | | (%) | | (%) | | 营业收入 | 224,164,453.54 | 12.29 | 736,202,815.73 | 41.27 | | 归属于上市公司股东的净利 | 21,024,206.09 | 6.73 | 79,977,270.72 | 70.94 | | 润 | | | | | | 归属于上市公司股东的扣除 | 19,419,488.72 | 6.65 | 74,314,509.19 | 88.31 | | 非经常性损益的净利润 | | | | | | 经营活动产生的现金流量净 | 不适用 | 不适用 | 30,889,388.31 | -49.06 | 证券代码：603015 证券简称：弘讯科技 宁波弘讯科技股份有限公司 2021 年第三季度报告 本公司董事会及全体董事保证本公告内容 ...

Financial Performance - The company reported a total revenue of RMB 500 million for the first half of 2021, representing a year-on-year increase of 15%[13] - The net profit attributable to shareholders was RMB 80 million, up 20% compared to the same period last year[13] - The company's operating revenue for the first half of the year reached ¥512,038,362.19, representing a 59.27% increase compared to ¥321,489,813.47 in the same period last year[21] - Net profit attributable to shareholders increased by 117.63% to ¥58,953,064.63 from ¥27,088,656.35 year-on-year[21] - The net profit after deducting non-recurring gains and losses rose by 158.25% to ¥54,895,020.47 from ¥21,256,531.46 in the previous year[21] - Basic earnings per share increased by 114.29% to ¥0.15 from ¥0.07 year-on-year[22] - The weighted average return on net assets improved by 2.32 percentage points to 4.53% from 2.21% in the same period last year[22] - The company reported a total comprehensive income of ¥56,402,710.89 for the first half of 2021, compared to ¥31,007,517.65 in the same period of 2020, reflecting an increase of 82.2%[128] Investment and R&D - The company plans to invest in new product development, focusing on advanced servo systems and network management solutions for the plastic machinery industry[12] - The company is committed to enhancing its R&D capabilities, with a planned budget increase of 10% for the next fiscal year[12] - Research and development expenses rose by 23.18% to ¥36,171,334.67 from ¥29,364,787.20[59] - The company has established a comprehensive R&D system through strategic collaborations with institutions like Siemens and the Taiwan Industrial Technology Research Institute, enhancing its technological capabilities[37] - The company’s R&D personnel accounted for 45% of the total workforce, with R&D investment representing 8.42% of revenue[46] Market Expansion - The company is exploring market expansion opportunities in Southeast Asia, targeting a 25% increase in market share by the end of 2022[13] - The company aims to enhance its automation solutions for the plastic processing industry, focusing on the integration of industrialization and information technology[31] - The company is focused on expanding its market presence in the renewable energy sector, particularly in energy storage and conversion systems[32] - The company plans to expand its market presence in the industrial automation sector by entering new application markets such as metal processing and automotive testing[56] Financial Position - The company maintains a strong cash position, with cash and cash equivalents amounting to RMB 200 million as of June 30, 2021[13] - The company's total assets increased by 8.75% to ¥2,222,366,158.11 from ¥2,043,619,805.27 at the end of the previous year[21] - The total liabilities as of June 30, 2021, amounted to ¥506,237,444.35, an increase from ¥419,932,955.68 at the end of 2020[124] - The total equity attributable to shareholders reached ¥1,147,586,946.17, up from ¥1,122,873,523.64 at the end of 2020, reflecting a growth of 2.2%[124] Operational Efficiency - The company has established a comprehensive service network, with service points in major domestic and international markets, enhancing customer relationship management and market expansion[51] - The company is actively developing a digital factory solution, integrating various control systems to enhance operational efficiency and meet industry 4.0 goals[54] - The company has committed to reducing operational costs by 15% through efficiency improvements and process optimization[93] Environmental Compliance - The company does not belong to the key pollutant discharge units as per environmental protection regulations, adhering to relevant environmental laws[82] - The company strictly adheres to environmental protection regulations, with no significant pollutants generated during operations[83] - Waste gas is treated using activated carbon purification devices, ensuring emissions meet relevant standards[83] - The company has implemented low-carbon energy-saving measures, including the use of energy-efficient equipment and distributed photovoltaic power generation[86] Risks and Challenges - No significant risks were identified that could materially impact the company's operations during the reporting period[7] - The company faces risks of declining gross margins due to increased competition and rising prices of electronic components, which could impact profitability[70] - The company anticipates significant depreciation expenses from infrastructure projects, potentially affecting net asset return rates in the initial phases[71] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 23,366[107] - The largest shareholder, RED FACTOR LIMITED, held 40.86% of shares, totaling 165,173,500 shares[109] - The second-largest shareholder, 宁波帮帮忙贸易有限公司, held 14.84% of shares, totaling 60,000,000 shares[109] Corporate Governance - There were changes in the board of directors, with the appointment of Shen Yuping as an independent director following the resignation of Chen Jun[78] - The company has no significant litigation or arbitration matters during the reporting period[96] - The company has no major non-operating fund occupation by controlling shareholders or related parties during the reporting period[95]

2021 年第一季度报告 公司代码：603015 公司简称：弘讯科技 宁波弘讯科技股份有限公司 2021 年第一季度报告 1 / 20 | 一、 | 重要提示 3 | | --- | --- | | 二、 | 公司基本情况 3 | | 三、 | 重要事项 6 | | 四、 | 附录 8 | 2021 年第一季度报告 一、 重要提示 二、 公司基本情况 2.1 主要财务数据 | | 本报告期末 | 上年度末 | 本报告期末比上年度末 | | | --- | --- | --- | --- | --- | | | | | 增减(%) | | | 总资产 | 2,123,601,310.97 | 2,043,619,805.27 | | 3.91 | | 归属于上市公司股 | 1,298,765,866.00 | 1,270,193,649.06 | | 2.25 | | 东的净资产 | | | | | | | 年初至报告期末 | 上年初至上年报告期末 | 比上年同期增减(%) | | | 经营活动产生的现 | -33,913,352.67 | 6,453,026.07 | | -625.54 | | 金流量净额 ...

Financial Performance - The company's operating revenue for 2020 was CNY 749,678,649.61, representing a year-on-year increase of 24.83% compared to CNY 600,541,004.28 in 2019[23]. - The net profit attributable to shareholders for 2020 was CNY 61,914,235.77, an increase of 86.81% from CNY 33,142,421.97 in 2019[23]. - The net profit after deducting non-recurring gains and losses was CNY 51,096,129.21, up 153.18% from CNY 20,181,915.08 in 2019[23]. - The company's total assets at the end of 2020 were CNY 2,043,619,805.27, a 17.20% increase from CNY 1,743,631,047.36 at the end of 2019[23]. - The basic earnings per share for 2020 was CNY 0.15, an increase of 87.50% compared to CNY 0.08 in 2019[25]. - The weighted average return on equity for 2020 was 5.00%, an increase of 2.26 percentage points from 2.74% in 2019[25]. - The net cash flow from operating activities for 2020 was CNY 54,093,099.11, a decrease of 33.30% from CNY 81,101,655.38 in 2019[23]. - The company achieved operating revenue of 749.68 million yuan, an increase of 24.83% compared to the same period last year[50]. - The net profit attributable to the parent company reached 61.91 million yuan, reflecting an 86.81% growth year-on-year[50]. - The net profit after deducting non-recurring gains and losses was 51.10 million yuan, a significant increase of 153.18% year-on-year[50]. Dividend Policy - The company plans to distribute a cash dividend of RMB 0.10 per share (including tax) to all shareholders for the 2020 fiscal year[7]. - The company did not distribute cash dividends for the fiscal year 2019, and the profit distribution plan for 2019 was to retain undistributed profits for future allocation[104]. - In 2020, the company declared a cash dividend of 1.00 RMB per 10 shares, with a total cash distribution amounting to 40,421,900 RMB, representing 65.29% of the net profit attributable to shareholders[106]. - The company did not propose a cash profit distribution plan for the fiscal year 2020 despite having positive distributable profits[108]. - The company has established a differentiated cash dividend policy based on its development stage, prioritizing cash dividends in its profit distribution policy[104]. - The company’s cash dividend distribution reflects its commitment to shareholder returns while managing its retained earnings for future growth[104]. Risk Management - There are no significant risks that materially affect the company's operations during the reporting period[9]. - The company has a comprehensive risk management strategy in place to address potential operational risks[9]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[9]. - The company has not violated decision-making procedures for providing guarantees to external parties[9]. - The company maintains a low level of financial risk with no guarantees provided to shareholders or related parties[133]. Audit and Compliance - The company received a standard unqualified audit report from Tianjian Accounting Firm[6]. - The company emphasizes the importance of accurate and complete financial reporting, with management taking legal responsibility for the report[10]. - The company has not made any changes to accounting policies or estimates that would impact financial reporting[115]. - The company has not encountered any issues with the completion of performance commitments affecting goodwill impairment testing[115]. - The company strictly adheres to insider information management regulations, effectively preventing insider trading risks and enhancing corporate governance[191]. Research and Development - R&D investment accounted for 8.42% of operating revenue in 2020, with R&D personnel constituting 45% of the total workforce[41]. - The company holds 202 authorized patents, including 57 invention patents, and has participated in drafting multiple national and industry standards[42]. - The company is actively developing new products, including a new generation control system and high-end servo systems, to enhance competitiveness and expand market applications[69]. - The company has established strategic partnerships with institutions such as Siemens and the Taiwan Industrial Technology Research Institute to enhance its R&D capabilities[37]. Market Position and Strategy - The company holds the leading market share in China's injection molding machine control systems, focusing on automation solutions for mid-to-high-end plastic machinery manufacturers[33]. - The company is focused on integrating intelligent manufacturing and information technology, aligning with the "Made in China 2025" strategy[44]. - The company is committed to expanding its market presence in the renewable energy sector, capitalizing on favorable policies and market opportunities[89]. - The company aims to consolidate its leading position in the plastic machinery control and drive systems market, with a focus on high-end electric injection molding machines, which are increasingly favored in the Chinese market[94]. - The company is expanding its product applications beyond plastic machinery to include sectors such as metal processing, with a focus on electric systems for bending machines[94]. Corporate Governance - The company has established a clear protocol for notifying the market prior to any share reductions by major shareholders[112]. - The company has implemented a restricted stock incentive plan, with details disclosed in various announcements, including the approval of the plan by the board and the completion of stock registration[123]. - The company has a robust employee rights protection system, ensuring compliance with labor laws and providing various social security benefits[143]. - The company has established a comprehensive investor relations management system to enhance interaction with investors[187]. Shareholder Information - The total number of ordinary shares decreased by 2,869,000 shares due to the cancellation of restricted stock from the 2017 incentive plan, resulting in a total of 407,088,000 shares at the end of the reporting period[151]. - RED FACTOR LIMITED holds 199,215,600 shares, representing 49.28% of total shares, with 109,620,000 shares pledged[157]. - The total number of common stock shareholders at the end of the reporting period was 23,159, a decrease from 23,929 at the end of the previous month[155]. - The company does not have any shareholders holding more than 10% of shares other than the controlling shareholder[163]. Employee and Management - The company has implemented a salary policy that balances internal equity and market competitiveness to attract and retain talent[179]. - The company has a total of 338 technical personnel among its employees, indicating a strong focus on technical expertise[178]. - The total compensation for all directors, supervisors, and senior management amounted to 7.7163 million yuan (pre-tax) at the end of the reporting period[174]. - The company has established detailed annual training plans to enhance employee skills across various areas, including management and technology[180].

[Important Notice](index=3&type=section&id=%E4%B8%80%E3%80%81%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, with the financial statements certified by key personnel; the report is unaudited - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, assuming individual and joint legal responsibility[7](index=7&type=chunk) - Company head Xiong Yulin, chief accountant Ye Haiping, and head of accounting department Ye Haiping guarantee the truthfulness, accuracy, and completeness of the financial statements in the quarterly report[7](index=7&type=chunk) - This company's third-quarter report is unaudited[7](index=7&type=chunk) [Company Basic Information](index=3&type=section&id=%E4%BA%8C%E3%80%81%20%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) This chapter outlines key financial data, including assets, net assets, cash flow, revenue, and net profit changes, details non-recurring gains/losses, and discloses shareholder information as of the reporting period-end [Key Financial Data](index=3&type=section&id=2.1%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) As of the reporting period-end, total assets and net assets attributable to shareholders increased; year-to-date revenue and net profit grew significantly, while net cash flow from operating activities decreased; non-recurring gains/losses positively impacted net profit Major Financial Data Overview | Indicator | As of Reporting Period-End (CNY) | As of Prior Year-End (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | **Balance Sheet (Period-End):** | | | | | Total Assets | 1,977,115,720.21 | 1,743,631,047.36 | 13.39 | | Net Assets Attributable to Shareholders of Listed Company | 1,256,271,541.96 | 1,208,001,521.62 | 4.00 | | **Income Statement (Year-to-Date):** | | | | | Operating Revenue | 521,119,070.06 | 422,303,633.63 | 23.40 | | Net Profit Attributable to Shareholders of Listed Company | 46,788,031.74 | 15,913,221.47 | 194.02 | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-recurring Gains and Losses | 39,464,754.13 | 7,121,579.73 | 454.16 | | Weighted Average Return on Net Assets (%) | 3.80 | 1.32 | Increased by 2.48 percentage points | | Basic Earnings Per Share (CNY/share) | 0.12 | 0.04 | 200.00 | | Diluted Earnings Per Share (CNY/share) | 0.12 | 0.04 | 200.00 | | **Cash Flow Statement (Year-to-Date):** | | | | | Net Cash Flow from Operating Activities | 60,633,074.17 | 85,392,712.25 | -29.00 | Total Non-recurring Gains and Losses Year-to-Date | Item | Amount (CNY) | | :--- | :--- | | Total | 7,323,277.61 | [Shareholder Information as of Reporting Period-End](index=6&type=section&id=2.2%20%E6%88%AA%E6%AD%A2%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E6%B5%81%E9%80%9A%E8%82%A1%E4%B8%9C%EF%BC%88%E6%88%96%E6%97%A0%E9%99%90%E5%94%AE%E6%9D%A1%E4%BB%B6%E8%82%A1%E4%B8%9C%EF%BC%89%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of the reporting period-end, the company had 24,057 shareholders; controlling shareholder RED FACTOR LIMITED held 50.28% of shares, with 109.62 million shares pledged; RED FACTOR LIMITED and Ningbo Bangbangmang Trading Co., Ltd. are parties acting in concert - Total shareholders: **24,057** households[13](index=13&type=chunk) - Controlling shareholder RED FACTOR LIMITED held **203,257,700** shares, accounting for **50.28%**, of which **109,620,000** shares were pledged[13](index=13&type=chunk) - Controlling shareholder RED FACTOR LIMITED and Ningbo Bangbangmang Trading Co., Ltd. are parties acting in concert[14](index=14&type=chunk) [Preferred Shareholder Information as of Reporting Period-End](index=7&type=section&id=2.3%20%E6%88%AA%E6%AD%A2%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E4%BC%98%E5%85%88%E8%82%A1%E6%97%A0%E9%99%90%E5%94%AE%E6%9D%A1%E4%BB%B6%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) The company had no preferred shareholders as of the reporting period-end - Not applicable to preferred shareholder information[14](index=14&type=chunk) [Significant Events](index=7&type=section&id=%E4%B8%89%E3%80%81%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This chapter details significant changes and reasons for key financial statement items and indicators across the balance sheet, income statement, and cash flow statement, with no overdue unfulfilled commitments or profit warnings [Significant Changes and Reasons for Key Financial Statement Items and Indicators](index=7&type=section&id=3.1%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) This section analyzes major changes and drivers in balance sheet, income statement, and cash flow items, reflecting shifts in construction, fund management, investment income, and financing activities [Significant Changes and Reasons for Balance Sheet Items](index=7&type=section&id=1%E3%80%81%20%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E9%A1%B9%E7%9B%AE%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Other receivables, other current assets, construction in progress, notes payable, and accounts payable significantly increased due to project deposits, redeemable bonds, plant construction, and purchase/engineering payments; non-current liabilities due within one year decreased due to reduced foreign subsidiary borrowings Significant Changes in Balance Sheet Items | Item | September 30, 2020 (CNY) | December 31, 2019 (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Other Receivables | 8,064,581.92 | 4,819,405.72 | 67.34 | Mainly due to increased project deposits by subsidiaries in this period | | Other Current Assets | 49,611,411.20 | 27,626,026.46 | 79.58 | Mainly due to increased redeemable bonds balance of overseas subsidiaries at period-end | | Construction in Progress | 100,101,045.82 | 41,948,752.31 | 138.63 | Mainly due to investment in plant construction projects by subsidiaries Taiwan Hongxun and Yixuesong | | Notes Payable | 27,897,237.27 | 5,665,937.40 | 392.37 | Mainly due to increased engineering payments by overseas subsidiaries | | Accounts Payable | 164,999,729.13 | 105,022,520.56 | 57.11 | Mainly due to increased purchase payments and engineering payments | | Non-current Liabilities Due Within One Year | 201,260.69 | 2,564,037.11 | -92.15 | Mainly due to decreased borrowings of overseas subsidiaries due within 1 year | [Significant Changes and Reasons for Income Statement Items](index=8&type=section&id=2%E3%80%81%20%E5%88%A9%E6%B6%A6%E8%A1%A8%E9%A1%B9%E7%9B%AE%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Year-to-date investment income surged by **679.79%** due to increased associate investment income; non-operating expenses significantly increased due to reclassification of buyer's credit provision; income tax expense rose by **65.88%** with increased revenue and total profit Significant Changes in Income Statement Items | Item | January-September 2020 (CNY) | January-September 2019 (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 3,888,301.62 | -670,640.07 | 679.79 | Mainly due to increased investment income from associates in this period | | Non-operating Expenses | 535,524.53 | -52,262.32 | 1124.69 | Mainly due to buyer's credit provision expenses being reflected in non-operating expenses in the prior year, and in credit impairment losses in this period | | Income Tax Expense | 10,230,944.39 | 6,167,708.85 | 65.88 | Mainly due to increased operating revenue and total profit in this period, leading to a corresponding increase in corporate income tax provision | [Significant Changes and Reasons for Cash Flow Statement Items](index=8&type=section&id=3%E3%80%81%20%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8%E9%A1%B9%E7%9B%AE%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Year-to-date net cash flow from investing activities decreased by **53.09%** due to prior year's foreign subsidiary long-term asset purchases; net cash flow from financing activities surged by **437.49%** due to no cash dividends this period; exchange rate changes impacted cash and cash equivalents negatively Significant Changes in Cash Flow Statement Items | Item | January-September 2020 (CNY) | January-September 2019 (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Investing Activities | -90,032,554.82 | -191,910,073.32 | 53.09 | Overseas subsidiary Taiwan Hongxun purchased long-term assets (land ownership) in the prior year | | Net Cash Flow from Financing Activities | 73,366,266.51 | -21,738,926.37 | 437.49 | Cash dividends for 2018 were distributed in the prior year, with no profit distribution in this period | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | -1,360,969.11 | 1,589,070.91 | -185.65 | Mainly due to exchange rate fluctuations between years | [Analysis of Progress, Impact, and Solutions for Significant Events](index=8&type=section&id=3.2%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D%E5%92%8C%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88%E7%9A%84%E5%88%86%E6%9E%90%E8%AF%B4%E6%98%8E) No significant events requiring disclosure occurred during the reporting period - Not applicable to analysis of progress, impact, and solutions for significant events[20](index=20&type=chunk) [Overdue Unfulfilled Commitments During the Reporting Period](index=8&type=section&id=3.3%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) The company had no overdue unfulfilled commitments during the reporting period - Not applicable to overdue unfulfilled commitments during the reporting period[20](index=20&type=chunk) [Warning and Explanation for Potential Cumulative Net Profit Loss or Significant Change from Year-Ago Period](index=9&type=section&id=3.4%20%E9%A2%84%E6%B5%8B%E5%B9%B4%E5%88%9D%E8%87%B3%E4%B8%8B%E4%B8%80%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%9F%E6%9C%AB%E7%9A%84%E7%B4%AF%E8%AE%A1%E5%87%80%E5%88%A9%E6%B6%A6%E5%8F%AF%E8%83%BD%E4%B8%BA%E4%BA%8F%E6%8D%9F%E6%88%96%E8%80%85%E4%B8%8E%E4%B8%8A%E5%B9%B4%E5%90%8C%E6%9C%9F%E7%9B%B8%E6%AF%94%E5%8F%91%E7%94%9F%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E8%AD%A6%E7%A4%BA%E5%8F%8A%E5%8E%9F%E5%9B%A0%E8%AF%B4%E6%98%8E) The company has not issued any warning regarding potential cumulative net profit loss or significant change from the year-ago period - Not applicable to warning and explanation for potential cumulative net profit loss or significant change from year-ago period[21](index=21&type=chunk) [Appendix](index=9&type=section&id=%E5%9B%9B%E3%80%81%20%E9%99%84%E5%BD%95) This appendix provides the company's unaudited consolidated and parent company financial statements for Q3 2020, including balance sheets, income statements, and cash flow statements, offering detailed financial data [Financial Statements](index=9&type=section&id=4.1%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section includes the company's consolidated and parent company balance sheets, income statements, and cash flow statements, detailing financial data as of September 30, 2020, and for the corresponding period in 2019, providing a basis for comprehensive financial assessment [Consolidated Balance Sheet](index=9&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of September 30, 2020, consolidated total assets reached **CNY 1.977 billion**, up **13.39%** year-on-year, with significant growth in construction in progress; total liabilities also increased - Consolidated total assets: **CNY 1,977,115,720.21** (September 30, 2020), a **13.39%** increase from year-end 2019[25](index=25&type=chunk)[7](index=7&type=chunk) - Consolidated total liabilities: **CNY 715,234,317.58** (September 30, 2020), a **36.01%** increase from year-end 2019[25](index=25&type=chunk) - Total owner's equity attributable to parent company: **CNY 1,256,271,541.96** (September 30, 2020), a **4.00%** increase from year-end 2019[25](index=25&type=chunk)[7](index=7&type=chunk) [Parent Company Balance Sheet](index=12&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of September 30, 2020, parent company total assets were **CNY 1.493 billion**, up from year-end 2019, with significant growth in construction in progress; current liabilities increased due to short-term borrowings and accounts payable - Parent company total assets: **CNY 1,493,251,550.27** (September 30, 2020), a **14.62%** increase from year-end 2019[28](index=28&type=chunk) - Parent company total current liabilities: **CNY 391,337,497.71** (September 30, 2020), a **55.88%** increase from year-end 2019[28](index=28&type=chunk) - Parent company total owner's equity: **CNY 1,100,055,251.58** (September 30, 2020), a **4.83%** increase from year-end 2019[29](index=29&type=chunk) [Consolidated Income Statement](index=14&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In the first three quarters of 2020, consolidated total operating revenue grew by **23.40%**, and net profit attributable to parent company shareholders increased by **194.02%**, indicating significantly improved profitability Consolidated Income Statement Key Data (Q1-Q3 2020 vs Q1-Q3 2019) | Item | January-September 2020 (CNY) | January-September 2019 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 521,119,070.06 | 422,303,633.63 | 23.40 | | Operating Profit | 52,077,313.82 | 14,548,795.43 | 258.09 | | Total Profit | 52,587,361.59 | 16,186,752.47 | 224.89 | | Net Profit Attributable to Parent Company Shareholders | 46,788,031.74 | 15,913,221.47 | 194.02 | | Basic Earnings Per Share (CNY/share) | 0.12 | 0.04 | 200.00 | [Parent Company Income Statement](index=16&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) In the first three quarters of 2020, parent company operating revenue grew by **24.93%**, and net profit increased by **25.25%**, with investment income significantly contributing to profit and financial expenses being negative due to increased interest income Parent Company Income Statement Key Data (Q1-Q3 2020 vs Q1-Q3 2019) | Item | January-September 2020 (CNY) | January-September 2019 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 392,580,707.52 | 314,251,161.63 | 24.93 | | Net Profit | 50,672,730.46 | 40,457,808.32 | 25.25 | | Investment Income | 39,544,335.51 | 41,110,716.19 | -3.81 | [Consolidated Cash Flow Statement](index=18&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In the first three quarters of 2020, net cash flow from operating activities decreased by **29.00%**, net cash outflow from investing activities reduced by **53.09%**, and net cash flow from financing activities turned positive, surging by **437.49%**, mainly due to no cash dividends this period Consolidated Cash Flow Statement Key Data (Q1-Q3 2020 vs Q1-Q3 2019) | Item | January-September 2020 (CNY) | January-September 2019 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 60,633,074.17 | 85,392,712.25 | -29.00 | | Net Cash Flow from Investing Activities | -90,032,554.82 | -191,910,073.32 | 53.09 | | Net Cash Flow from Financing Activities | 73,366,266.51 | -21,738,926.37 | 437.49 | | Net Increase in Cash and Cash Equivalents | 42,605,816.75 | -126,667,216.53 | 133.64 | [Parent Company Cash Flow Statement](index=20&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In the first three quarters of 2020, parent company net cash flow from operating activities turned negative, net cash flow from investing activities slightly decreased, and net cash flow from financing activities turned positive, surging due to increased borrowings and no profit distribution this period Parent Company Cash Flow Statement Key Data (Q1-Q3 2020 vs Q1-Q3 2019) | Item | January-September 2020 (CNY) | January-September 2019 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -4,548,582.38 | 51,990,900.94 | -108.75 | | Net Cash Flow from Investing Activities | 41,983,860.15 | 45,450,393.40 | -7.52 | | Net Cash Flow from Financing Activities | 66,984,758.96 | -141,109,346.23 | 147.47 | | Net Increase in Cash and Cash Equivalents | 107,168,769.72 | -44,845,225.88 | 339.06 | [First-time Adoption of New Revenue and Lease Standards and Adjustment of Opening Financial Statements from 2020](index=21&type=section&id=4.2%202020%20%E5%B9%B4%E8%B5%B7%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E6%96%B0%E6%94%B6%E5%85%A5%E5%87%86%E5%88%99%E3%80%81%E6%96%B0%E7%A7%9F%E8%B5%81%E5%87%86%E5%88%99%E8%B0%83%E6%95%B4%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E5%BD%93%E5%B9%B4%E5%B9%B4%E5%88%9D%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company did not first adopt new revenue and lease standards or adjust opening financial statements from 2020 - Not applicable to first-time adoption of new revenue and lease standards and adjustment of opening financial statements from 2020[41](index=41&type=chunk) [Explanation of Retrospective Adjustment of Prior Period Comparative Data for First-time Adoption of New Revenue and Lease Standards from 2020](index=21&type=section&id=4.3%202020%20%E5%B9%B4%E8%B5%B7%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E6%96%B0%E6%94%B6%E5%85%A5%E5%87%86%E5%88%99%E3%80%81%E6%96%B0%E7%A7%9F%E8%B5%81%E5%87%86%E5%88%99%E8%BF%BD%E6%BA%AF%E8%B0%83%E6%95%B4%E5%89%8D%E6%9C%9F%E6%AF%94%E8%BE%83%E6%95%B0%E6%8D%AE%E7%9A%84%E8%AF%B4%E6%98%8E) The company did not first adopt new revenue and lease standards or retrospectively adjust prior period comparative data from 2020 - Not applicable to explanation of retrospective adjustment of prior period comparative data for first-time adoption of new revenue and lease standards from 2020[41](index=41&type=chunk) [Audit Report](index=21&type=section&id=4.4%20%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This report is unaudited - Not applicable to audit report[41](index=41&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 321,489,813.47, representing a 10.06% increase compared to CNY 292,116,728.52 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was CNY 27,088,656.35, a significant increase of 99.70% from CNY 13,564,601.06 in the previous year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 21,256,531.46, which is a 204.14% increase compared to CNY 6,989,116.91 in the same period last year[20]. - Basic earnings per share increased by 133.33% to CNY 0.07 compared to the same period last year[21]. - Net profit attributable to shareholders rose by 99.70% year-on-year, driven by increased sales orders in the industrial control and drive system product segments[21]. - Revenue increased by 10.06% compared to the same period last year[21]. - The company reported a net profit margin improvement, with retained earnings reaching ¥297,493,846.94, up from ¥270,405,190.59[108]. - The company reported a net loss of CNY 48,858,120.00 for the current period, indicating challenges in profitability[133]. Cash Flow and Investments - The net cash flow from operating activities was CNY 34,285,605.49, showing a decrease of 50.29% from CNY 68,972,747.45 in the previous year[20]. - Cash flow from operating activities for the first half of 2020 was CNY 34,285,605.49, down from CNY 68,972,747.45 in the previous year, a decline of 50.2%[121]. - The company recorded a net cash inflow from investment activities of CNY 56,597,407.62, significantly higher than CNY 23,653,390.52 in the previous year[121]. - Cash inflow from financing activities was CNY 25,508,574.93, significantly higher than CNY 9,380,400.00 in the same period last year[125]. - The net increase in cash and cash equivalents was CNY 23,097,594.99, compared to a decrease of CNY 8,394,632.80 in the first half of 2019[125]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 1,877,357,855.65, which is a 7.67% increase compared to CNY 1,743,631,047.36 at the end of the previous year[20]. - The net assets attributable to shareholders at the end of the reporting period were CNY 1,241,719,329.67, reflecting a 2.79% increase from CNY 1,208,001,521.62 at the end of the previous year[20]. - Total liabilities reached ¥628,596,549.60, a 19.5% increase from ¥525,877,258.96 at the end of 2019[108]. - The total liabilities at the end of the reporting period were CNY 407,151,000.00, indicating a manageable debt level[136]. Research and Development - R&D investment constituted 9.74% of revenue in 2019, with R&D personnel making up 45.45% of the total workforce[36]. - The company holds 192 authorized patents, including 49 invention patents, and has contributed to multiple national and industry standards[37]. - Research and development expenses decreased by 11.14% to 29,364,787.20 CNY, reflecting cost optimization efforts[50]. - The company is actively involved in the development of industrial and service robots, with applications in plastic processing and public safety[30]. Market Position and Strategy - The company maintains a leading position in the domestic plastic machine control system market, focusing on automation solutions for mid-to-high-end plastic machinery manufacturers[27]. - The company plans to continue expanding its market presence and enhancing competitiveness through innovation and strategic adjustments in response to market conditions[61]. - The company is focusing on expanding its market presence and investing in new technologies to drive future growth[109]. Shareholder and Corporate Governance - The company does not plan to distribute profits or increase capital from reserves during the reporting period[5]. - The company will adhere to the price stabilization plan to maintain stock price stability and protect minority investors' interests[68]. - The company will ensure that its subsidiaries do not engage in direct or indirect competition with Hongxun Technology[68]. - The company appointed Tianjian Accounting Firm as the financial audit and internal control audit institution for the 2020 fiscal year, effective from May 20, 2020[71]. Legal and Compliance - The company is involved in significant litigation matters, including a patent rights dispute with a claim amount of 1,000,000 RMB, with the first-instance judgment favoring the company[73]. - The company has no major litigation or arbitration matters pending during the reporting period[72]. - The company has not reported any significant related party transactions during the reporting period[85]. Accounting Policies and Financial Reporting - The financial report is prepared in RMB, with the balance sheet as of June 30, 2020, pending further details[105]. - The company’s accounting policies comply with the requirements of enterprise accounting standards, ensuring accurate financial reporting[145]. - The company recognizes revenue from product sales when ownership risks and rewards are transferred to the buyer, and the revenue amount can be reliably measured[194].

Financial Performance - In 2019, the company's operating revenue was approximately CNY 600.54 million, a decrease of 12.41% compared to 2018[22]. - The net profit attributable to shareholders was CNY 33.14 million, down 43.65% from the previous year[22]. - The basic earnings per share (EPS) for 2019 was CNY 0.08, a decline of 42.86% compared to 2018[22]. - The net cash flow from operating activities was CNY 81.10 million, an increase of 31.82% year-on-year[22]. - The total assets at the end of 2019 were CNY 1.74 billion, reflecting a growth of 9.35% from the previous year[22]. - The company reported a weighted average return on equity of 2.74%, down 2.17 percentage points from 2018[23]. - The decline in revenue and profit was primarily due to a decrease in sales orders for the company's main business in industrial control and drive systems[23]. - The company maintained a net asset value of CNY 1.21 billion at the end of 2019, a slight decrease of 0.06% from 2018[22]. - The company’s revenue decreased by 12.41% year-on-year, and net profit attributable to the parent company fell by 43.65% due to market environment impacts[52]. - The shipment volume of the plastic machine control system and servo system decreased by 15.57% and 14.02% respectively compared to the previous year[52]. Risk Management - There are no significant risks that materially affect the company's operations during the reporting period[7]. - The company has not engaged in non-operational fund occupation by controlling shareholders or related parties[7]. - The company has detailed various risks and countermeasures in the report, particularly in the section discussing operational risks[7]. - The company has a comprehensive risk statement regarding future plans and development strategies, emphasizing the importance of investor awareness of investment risks[6]. - The company is committed to optimizing its internal control and risk management systems to mitigate operational and financial risks[105]. Corporate Governance - The company received a standard unqualified audit report from Tianjian Accounting Firm[4]. - The company has committed to minimizing related party transactions and ensuring fairness in any unavoidable transactions[115]. - The company has not reported any significant deficiencies in its internal control system during the reporting period[192]. - The company has implemented a cash dividend policy in accordance with its Articles of Association and the profit distribution regulations outlined in the future dividend plan for 2017-2021, emphasizing investor returns[183]. - The company has established an information disclosure management system to ensure compliance with legal regulations, maintaining transparency and fairness in its reporting practices[183]. Research and Development - R&D investment accounted for 9.74% of the company's revenue in 2019, with R&D personnel making up 45.45% of the total workforce[42]. - The company has established strategic partnerships with institutions such as Siemens and various universities to enhance its R&D capabilities[39]. - The company is actively developing new energy solutions, including photovoltaic inverters and energy management systems, to capitalize on the growing demand for renewable energy[37]. - The company has committed to developing a comprehensive smart factory solution to support the digital transformation of the plastic processing industry[96]. Market Position and Strategy - The company is focused on the automation and intelligent transformation of the plastic processing industry, aiming to enhance its market position in high-end automation solutions[32]. - The company has been recognized as a leading enterprise in the injection molding control system sector in China, with a significant market share[32]. - The company is targeting a market expansion in the renewable energy sector, particularly in Italy, as part of its strategy to enhance its competitive edge through collaboration and resource sharing[97]. - The company aims to provide comprehensive smart manufacturing solutions to plastic processing manufacturers, integrating robotic systems and management software to create fully digitalized smart factories[102]. Shareholder Information - The company plans not to distribute profits for the year 2019 and will not increase capital through capital reserves[5]. - The company reported a positive profit for the reporting period, but did not propose a cash profit distribution plan for ordinary shareholders[111]. - The company distributed a cash dividend of 0.12 CNY per share, totaling 48,858,120 CNY based on a total share capital of 407,151,000 shares[144]. - The company has a cash dividend policy prioritizing cash distributions, with a total cash dividend of 48,858,120 RMB distributed for the 2018 fiscal year, amounting to 0.12 RMB per share[108]. Legal and Compliance - The company reported no significant litigation or arbitration matters during the year, indicating a stable legal environment[119]. - The company has not encountered any issues related to the suspension or termination of its stock listing, reflecting a solid compliance status[119]. - The company has not reported any instances of fund occupation or collection progress issues, suggesting effective cash flow management[116]. - The company will ensure fair and transparent related party transactions, adhering to legal and regulatory requirements[114]. Employee and Management - The total number of employees in the parent company is 292, while the total number of employees in major subsidiaries is 467, resulting in a combined total of 759 employees[175]. - The total remuneration for all directors, supervisors, and senior management personnel at the end of the reporting period amounted to 6.8482 million yuan (before tax)[172]. - The company has established a salary policy that balances internal equity and market competitiveness, aimed at retaining and attracting talent[176]. - The company has implemented a detailed annual training plan covering management, technology, and corporate culture to enhance employee value[177]. Financial Management - The company has engaged in structured deposits amounting to 1,092,500,000 RMB from its own funds, with an outstanding balance of 186,000,000 RMB[137]. - The company has consistently utilized self-owned funds for its structured deposit investments, ensuring guaranteed returns upon maturity[138]. - The structured deposits have been managed through reputable banks, ensuring compliance with legal procedures and full recovery of principal and interest[139]. - The company plans to continue its strategy of investing in guaranteed return financial products in the future[138].

Financial Performance - Net profit attributable to shareholders rose by 19.52% to CNY 7,630,561.94 year-on-year[6] - Operating revenue decreased by 1.31% to CNY 135,051,626.43 compared to the same period last year[6] - Total revenue for Q1 2020 was CNY 135,051,626.43, a decrease of 1.3% compared to CNY 136,848,276.21 in Q1 2019[24] - Net profit for Q1 2020 was CNY 5,930,408.18, an increase of 10.6% from CNY 5,361,094.78 in Q1 2019[25] - Total operating costs for Q1 2020 were CNY 133,369,660.42, down from CNY 135,340,149.81 in Q1 2019, reflecting a cost reduction of approximately 1.4%[24] Cash Flow - Net cash flow from operating activities improved significantly, increasing by 119.52% to CNY 6,453,026.07[6] - Net cash flow from operating activities increased by 119.52% to 6,453,026.07 from -33,050,571.64, primarily due to reduced payment for goods[13] - Cash flow from operating activities generated a net inflow of ¥6,453,026.07, a significant improvement from a net outflow of ¥33,050,571.64 in Q1 2019[30] - The net cash flow from operating activities was CNY 25,745,719.20, a significant increase from CNY 902,939.28 in Q1 2019, representing a growth of approximately 2,757%[32] - Total cash inflow from operating activities was CNY 80,865,470.49, compared to CNY 76,606,399.32 in the same period last year, indicating an increase of about 5.9%[32] Assets and Liabilities - Total assets increased by 1.43% to CNY 1,768,569,922.06 compared to the end of the previous year[6] - Total current assets as of March 31, 2020, amounted to 1,175,491,458.90, up from 1,143,587,894.61 as of December 31, 2019[17] - Total liabilities increased to 542,411,928.50 from 525,877,258.96, reflecting a rise in short-term borrowings[19] - The company's total equity as of March 31, 2020, was 1,226,157,993.56, up from 1,217,753,788.40[19] - The total liabilities increased to CNY 294,088,721.28 from CNY 253,435,151.95, indicating a rise of 16.1%[22] Shareholder Information - The company reported a total of 21,610 shareholders at the end of the reporting period[10] Expenses - Financial expenses decreased by 78.11% to -392,409.82 from -1,792,702.56 due to reduced interest income[12] - Research and development expenses for Q1 2020 were CNY 15,262,058.90, a decrease of 8.6% compared to CNY 16,697,210.76 in Q1 2019[24] - The company experienced a decrease in R&D expenses to ¥4,144,893.89 in Q1 2020 from ¥5,123,304.40 in Q1 2019, reflecting a focus on cost management[27] Cash and Cash Equivalents - The company's cash and cash equivalents increased to 455,634,536.76 from 441,185,063.78[17] - Cash and cash equivalents at the end of Q1 2020 totaled ¥314,897,793.76, up from ¥306,295,542.83 at the end of Q1 2019[31] - The total cash and cash equivalents at the end of Q1 2020 were CNY 165,979,258.49, compared to CNY 97,653,750.42 at the end of Q1 2019, an increase of approximately 69.9%[33] - The company experienced a net increase in cash and cash equivalents of CNY 55,916,265.71, contrasting with a decrease of CNY 46,981,207.81 in the previous year[33] Investment Activities - Net cash flow from investing activities increased by 291.26% to 44,496,720.84 from -23,265,236.18, mainly due to decreased investment payments[13] - Investment activities generated a net cash inflow of ¥44,529,781.11 in Q1 2020, compared to a net outflow of ¥23,265,236.18 in Q1 2019[30] - The net cash flow from investing activities was CNY 25,871,098.83, a turnaround from a negative CNY 56,039,997.28 in Q1 2019[33] Financing Activities - Net cash flow from financing activities increased by 864.30% to 11,692,336.69 from -1,529,812.19, primarily due to increased bank borrowings[13] - The net cash flow from financing activities was CNY 5,314,337.27, down from CNY 8,090,360.23 in Q1 2019, a decrease of about 34.7%[33]

Financial Performance - Operating revenue for the first nine months was ¥422,303,633.63, representing a decrease of 24.07% year-on-year[7] - Net profit attributable to shareholders was ¥15,913,221.47, down 69.88% compared to the same period last year[7] - Basic earnings per share decreased to ¥0.04, a decline of 69.23% from ¥0.13 in the previous year[7] - The company reported a net profit attributable to shareholders of ¥7,121,579.73 for the third quarter, a decrease of 85.55% year-on-year[7] - Total operating revenue for Q3 2019 was CNY 130,186,905.11, a decrease of 17.3% compared to CNY 157,391,708.50 in Q3 2018[31] - Net profit for the first three quarters of 2019 reached CNY 40,457,808.32, down 55.8% from CNY 91,756,517.82 in the same period of 2018[37] - The total comprehensive income for Q3 2019 was CNY 1,163,642.54, down 58.9% from CNY 2,833,622.75 in Q3 2018[37] Cash Flow - The net cash flow from operating activities for the first nine months was ¥85,392,712.25, a decrease of 5.18% year-on-year[7] - Cash flow from operating activities for the first three quarters of 2019 was CNY 85,392,712.25, a decrease of 5.8% from CNY 90,057,220.42 in 2018[41] - Total cash inflow from operating activities was CNY 278,289,924.22, down 35% from CNY 427,387,027.65 year-on-year[44] - Cash outflow from operating activities totaled CNY 226,299,023.28, a decrease of 43% compared to CNY 395,157,373.64 in the previous year[45] - Cash flow from financing activities resulted in a net outflow of CNY 141,109,346.23, worsening from a net outflow of CNY 68,195,648.28 in the previous year[45] Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,615,719,046.24, an increase of 1.33% compared to the end of the previous year[7] - The company's total assets as of September 30, 2019, amounted to RMB 1,615,719,046.24, compared to RMB 1,594,536,205.39 as of December 31, 2018, reflecting a slight increase[24] - Total liabilities as of September 30, 2019, were CNY 206,388,053.73, a decrease from CNY 260,423,551.65 at the end of 2018[30] - The company's total current liabilities decreased from RMB 148,813,254.12 to RMB 56,365,640.50, a reduction of approximately 62.2%[25] Shareholder Information - The total number of shareholders at the end of the reporting period was not specified, but the report includes details on the top ten shareholders[11] - Total number of shareholders is 25,314[12] - RED FACTOR LIMITED holds 58.30% of shares, totaling 237,327,700 shares[12] Investments and Expenses - Research and development expenses for Q3 2019 were CNY 16,277,790.66, slightly down from CNY 17,824,686.69 in Q3 2018[31] - Total investment income for the first three quarters of 2019 was CNY 41,110,716.19, a decrease of 47.8% compared to CNY 78,812,429.69 in 2018[36] - The company experienced an investment loss of -4,801.70 in Q3 2019, contrasting with an investment income of 1,238,580.61 in the previous quarter[32] Changes in Financial Reporting - The company has made adjustments to its financial reporting format in accordance with the Ministry of Finance's guidelines issued on April 30, 2019[18] - The company implemented new financial instrument standards effective January 1, 2019, impacting the classification of financial assets[49] - The company adopted new financial instrument standards effective January 1, 2019, impacting financial reporting practices[53]

Financial Performance - The company's operating revenue for the first half of 2019 was ¥292,116,728.52, a decrease of 26.75% compared to ¥398,810,979.80 in the same period last year[19]. - The net profit attributable to shareholders for the first half of 2019 was ¥13,564,601.06, down 71.78% from ¥48,069,337.14 in the previous year[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥6,989,116.91, a decline of 85.26% compared to ¥47,406,145.30 in the same period last year[19]. - Basic earnings per share decreased by 75.00% to CNY 0.03 compared to the same period last year[20]. - Net profit attributable to shareholders decreased by 71.78% due to a decline in sales orders for industrial control and drive system products[20]. - Revenue decreased by 26.75% compared to the same period last year[20]. - The company's total operating revenue for the reporting period was CNY 292,116,728.52, down 26.75% from CNY 398,810,979.80 in the previous year[49]. - The company's operating profit was CNY 15,047,365.71, down 69.1% from CNY 48,783,417.01 in the first half of 2018[110]. - The net profit for the first half of 2019 was CNY 9,717,420.13, a decline of 78.6% from CNY 45,484,494.64 in the previous year[110]. Cash Flow and Assets - The net cash flow from operating activities increased by 71.84% to ¥68,972,747.45, compared to ¥40,137,512.60 in the previous year[19]. - The total assets at the end of the reporting period were ¥1,634,041,216.70, an increase of 2.48% from ¥1,594,536,205.39 at the end of the previous year[19]. - The total current assets amounted to RMB 1,076,616,316.44, a decrease from RMB 1,182,308,825.68 at the end of 2018, representing a decline of approximately 8.93%[101]. - Cash and cash equivalents were reported at RMB 448,936,223.49, down from RMB 520,620,047.60, indicating a decrease of about 13.76%[101]. - Accounts receivable increased to RMB 232,199,097.05 from RMB 195,637,556.44, reflecting a growth of approximately 18.63%[101]. - Inventory levels rose to RMB 263,708,580.86, compared to RMB 256,447,394.40, marking an increase of about 2.93%[101]. - The total non-current assets included long-term equity investments of RMB 17,177,979.48, up from RMB 15,350,346.61, which is an increase of approximately 11.91%[101]. Research and Development - The company employs a dual approach in R&D, combining self-initiated projects with strategic partnerships[29]. - R&D personnel represent 37.1% of the total workforce, with R&D investment accounting for 10.69% of revenue in 2018[33]. - The company holds 166 authorized patents, including 37 invention patents, and has contributed to multiple national and industry standards[34]. - Research and development expenses for the first half of 2019 were CNY 33,045,939.41, a decrease of 9.7% from CNY 36,406,526.42 in the previous year[110]. - The company launched the "PlasCloud" SaaS service, which integrates cloud computing and big data analysis for plastic processing, enhancing the transition to "Industry 4.0" for end-users[44]. Market and Product Development - The company focuses on industrial automation and intelligent control systems, with a leading market share in injection molding control systems[25][26]. - The renewable energy segment is expected to grow significantly due to increased investment in distributed energy solutions[28]. - The company is focused on expanding its product line into public safety service robots, broadening its market space[38]. - The company is actively preparing for new product launches and market development to respond to potential challenges in the upcoming quarters[59]. Shareholder and Equity Information - The total equity attributable to the parent company at the end of the reporting period was CNY 1,193,982,285.60, compared to CNY 1,200,256,572.03 at the end of the previous year, reflecting a decrease of approximately 0.5%[126]. - The total amount of unallocated profits at the end of the reporting period was CNY 288,434,912.60, which is essential for reinvestment strategies[128]. - The company has committed to repurchase all newly issued shares if the prospectus contains false statements or omissions, with a repurchase plan to be announced within 30 trading days of such determination[63]. - The company will compensate investors for losses incurred due to misleading statements in the prospectus, with compensation to be provided within 30 days of the determination by regulatory authorities[64]. Compliance and Governance - The report was not audited, ensuring that all financial data is presented accurately and completely[6]. - The company has established a framework to ensure compliance with legal obligations and to mitigate risks associated with related party transactions[66]. - The company appointed Tianjian Accounting Firm as the financial audit and internal control audit institution for the 2019 fiscal year[68]. - The company has no significant litigation or arbitration matters during the reporting period[70]. Financial Instruments and Accounting Policies - The company applies the equity method for joint ventures, recognizing its share of assets, liabilities, and income from joint operations[147]. - Financial instruments are classified into three categories: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in profit or loss[150]. - The company recognizes expected credit losses based on reasonable and evidence-based information, considering past events, current conditions, and future economic forecasts[152]. - The company recognizes revenue from the sale of goods when the risks and rewards of ownership are transferred to the buyer, and the revenue amount can be reliably measured[188].