Financial Performance - The company's operating revenue for Q1 2022 was CNY 616,490,960.17, representing a year-on-year increase of 1.28%[4] - The net profit attributable to shareholders decreased by 47.77% to CNY 3,839,175.97 compared to the same period last year[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 53.88% to CNY 3,100,902.81[4] - The basic earnings per share decreased by 47.88% to CNY 0.0283[4] - The diluted earnings per share also decreased by 47.88% to CNY 0.0283[4] - The total profit for Q1 2022 was CNY 1,699,200.27, down 70.8% from CNY 5,818,430.57 in the same period last year[15] - Operating profit for Q1 2022 was CNY 1,678,528.63, a decline of 70.8% compared to CNY 5,746,284.28 in Q1 2021[15] Cash Flow and Liquidity - The net cash flow from operating activities increased significantly by 114.86% to CNY 64,216,238.71, attributed to a reduction in raw material purchases[4] - Cash flow from operating activities in Q1 2022 was CNY 64,216,238.71, a significant improvement from a negative cash flow of CNY -432,211,630.54 in Q1 2021[17] - The company reported cash and cash equivalents of CNY 248,095,661.69 at the end of Q1 2022, up from CNY 129,551,319.13 at the end of Q1 2021[18] - The company incurred a total of CNY 640,359,007.39 in cash outflows from operating activities in Q1 2022, down from CNY 1,124,011,450.89 in Q1 2021[17] - The company had a net cash outflow from financing activities of CNY -76,629,660.92 in Q1 2022, a decrease from a net inflow of CNY 234,326,771.84 in Q1 2021[18] Assets and Liabilities - Total assets at the end of Q1 2022 were CNY 2,004,423,509.58, down 7.53% from the end of the previous year[5] - Total assets decreased from CNY 2,167,726,918.73 to CNY 2,004,423,509.58, a decline of 7.5%[14] - Total liabilities decreased from CNY 1,298,160,388.01 to CNY 1,130,985,373.24, a reduction of 12.9%[13] - The company’s equity attributable to shareholders increased from CNY 869,566,530.72 to CNY 873,438,136.34, a growth of 0.4%[14] Revenue and Costs - Total revenue for Q1 2022 was CNY 616,490,960.17, a slight increase of 0.13% compared to CNY 608,724,880.16 in Q1 2021[14] - Total operating costs for Q1 2022 were CNY 616,011,869.79, up from CNY 602,621,965.18 in Q1 2021, reflecting an increase of 2.3%[14] - Gross profit margin for Q1 2022 was approximately 0.08%, compared to 0.017% in Q1 2021, indicating improved profitability[14] - Total revenue from sales of goods and services in Q1 2022 was CNY 703,977,003.86, an increase of 13.4% from CNY 620,970,934.97 in Q1 2021[17] Shareholder Information - The company had a total of 13,590 common shareholders at the end of the reporting period[8] - The largest shareholder, Wang Dawu, holds 26.34% of the shares, with 14,930,000 shares pledged[8] Research and Development - Research and development expenses remained stable at CNY 18,143,501.71, slightly down from CNY 18,275,320.78 in Q1 2021[14] Inventory Management - Inventory decreased from CNY 684,791,257.74 in the previous quarter to CNY 557,945,269.55, a reduction of 18.5%[12]

Financial Performance - The company's operating revenue for 2021 was ¥2,931,123,716.02, representing a 27.19% increase compared to ¥2,304,550,442.98 in 2020[20]. - The net profit attributable to shareholders of the listed company was ¥57,092,476.01, up 29.16% from ¥44,203,819.04 in the previous year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥52,284,703.97, a significant increase of 56.39% from ¥33,433,037.00 in 2020[21]. - The company achieved operating revenue of 2.931 billion RMB, a year-on-year increase of 27.19%[31]. - The net profit attributable to shareholders reached 57.0925 million RMB, up 29.16% compared to the previous year[31]. - The main business revenue reached ¥2,844,546,744.93, up 36.68% year-on-year, while the main business cost increased by 39.96%[54]. - The industrial gross margin was 10%, a decrease of 2.26 percentage points from the previous year[54]. - The company reported a positive net profit for the reporting period, but did not propose a cash profit distribution plan due to high financing needs[126]. Cash Flow and Assets - The net cash flow from operating activities was -¥150,546,115.64, showing a dramatic change of 1,721.35% compared to ¥9,285,254.76 in 2020[21]. - Total assets at the end of 2021 reached ¥2,167,726,918.73, reflecting a 13.38% increase from ¥1,911,833,833.36 at the end of 2020[21]. - The company reported a significant decrease in net cash flow from operating activities, amounting to -¥150,546,115.64, a decline of 1721.35%[53]. - The company reported a total equity of CNY 916,773,492.87 in 2021, up from CNY 825,206,165.79 in 2020, representing an increase of 11.1%[190]. - Cash and cash equivalents decreased to CNY 199,264,710.19 in 2021 from CNY 283,736,684.46 in 2020, a decline of 29.7%[188]. Research and Development - The company completed 45 R&D projects, with 32 projects finished and 25 new patents granted[33]. - Research and development expenses totaled approximately 91.52 million CNY, accounting for 3.12% of total operating revenue[65]. - The company has allocated resources for research and development to enhance its technological capabilities and product offerings[192]. - The company is focusing on adjusting its customer structure to improve customer stickiness and product added value through componentized solutions[88]. - The company is committed to enhancing talent development and establishing an innovative incentive mechanism to encourage employee participation in innovation activities[89]. Market and Competitive Position - The company is focused on enhancing its competitive strength and sustainable development to maximize shareholder value[5]. - The company has established business relationships with over 30 countries and regions globally, enhancing its international market presence[40]. - The company is actively expanding its international market presence, having passed supplier system certifications from major international companies like Schneider and ABB[46]. - The company has transformed from a silver contact point supplier to a leading provider of integrated solutions for electrical contact systems over 20 years[38]. - The company has received multiple awards, including ABB Excellent Quality Award and Schneider Best Innovation Award, reflecting strong recognition from core customers[32]. Governance and Compliance - The company has implemented a robust corporate governance structure, ensuring compliance with legal regulations and protecting the rights of all shareholders, particularly minority shareholders[96]. - The company maintains a commitment to transparent information disclosure, ensuring that all shareholders receive timely and accurate information[98]. - The company has established various committees within the board of directors to enhance decision-making efficiency and ensure compliance with governance standards[97]. - The company has no significant differences in governance compared to regulations set by the China Securities Regulatory Commission[99]. - The company has not faced any risks of delisting or bankruptcy reorganization during the reporting period[148]. Environmental Responsibility - The company has introduced advanced wastewater and exhaust gas resource treatment technologies, achieving significant environmental responsibility in precious metal recycling[34]. - The company has implemented pollution prevention facilities that are designed, constructed, and operated simultaneously with the main project, ensuring compliance with production scale[134]. - The company conducts monthly monitoring of wastewater and semi-annual monitoring of air emissions and noise through qualified testing agencies[137]. - The company has established emergency response plans for environmental risks and conducts annual drills[136]. Risks and Challenges - The company faces risks related to significant fluctuations in the price of silver, which is a key raw material, potentially impacting profitability if prices experience sharp declines[90]. - The company has a customer concentration risk, with the top five customers accounting for 40% of total revenue, including a major client contributing 19%[93]. - The company acknowledges the risk of technological obsolescence in a fast-evolving industry, emphasizing the need for timely product upgrades and new product launches[94]. - The company has received a high-tech enterprise certificate, allowing it to benefit from a reduced corporate income tax rate of 15%, but risks losing this benefit if policies change or if it fails to pass future reviews[92]. Employee and Management - The company employed a total of 1,568 employees, with 1,483 in the parent company and 85 in major subsidiaries[117]. - The company has established an effective incentive mechanism, optimizing the salary structure and improving the assessment system to enhance employee motivation[119]. - The company has conducted various training programs throughout the year to enhance employee skills and capabilities[120]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 6.4817 million yuan[109]. Future Plans and Strategies - The company is planning a major asset restructuring to introduce Cayman Aluminum (Sanmenxia) Co., Ltd., which has strong profitability in alumina and other products, to optimize its main business[36]. - The company is committed to digital transformation and aims to create a first-class "dark factory" environment to improve operational efficiency[41]. - The company plans to actively participate in the national "new infrastructure" initiative, focusing on developing new fields represented by 5G and new energy[88]. - The company is advancing its "Electric Contact +" strategy, emphasizing research and development of electric contact materials and expanding into precious metal recycling and smart manufacturing projects[86].

福达合金材料股份有限公司 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不存在任何虚假记载、误导性 陈述或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带 责任。 重要内容提示： 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准 确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律 责任。 公司负责人、主管会计工作负责人及会计机构负责人（会计主管人员）保证季度 报告中财务报表信息的真实、准确、完整。 第三季度财务报表是否经审计 □是 √否 2021 年第三季度报告 证券代码：603045 证券简称：福达合金 一、 主要财务数据 (一)主要会计数据和财务指标 1 / 14 单位：元 币种：人民币 项目 本报告期 本报告期 比上年同 期增减变 动幅度(%) 年初至报告期末 年初至报告 期末比上年 同期增减变 动幅度(%) 营业收入 743,533,145.24 17.58 2,202,741,584.80 52.60 归属于上市公司股东 的净利润 6,476,396.87 -73.26 41,987,465.20 47.37 归属于上市公司股东 ...

Financial Performance - The company's operating revenue for the first half of 2021 was ¥1,459,208,439.56, representing a 79.90% increase compared to ¥811,127,203.71 in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2021 was ¥35,511,068.33, a significant increase of 731.97% from ¥4,268,292.29 in the previous year[18]. - The net profit after deducting non-recurring gains and losses reached ¥33,641,261.72, up 3,689.79% from ¥887,681.64 in the same period last year[18]. - The basic earnings per share for the first half of 2021 was ¥0.2622, a 737.70% increase from ¥0.0313 in the previous year[19]. - The total assets of the company at the end of the reporting period were ¥2,136,777,986.84, reflecting an 11.77% increase from ¥1,911,833,833.36 at the end of the previous year[19]. - The weighted average return on net assets increased to 4.22%, up 3.70 percentage points from 0.52% in the same period last year[19]. - The company achieved operating revenue of 1.459 billion yuan, a year-on-year increase of 79.9%[40]. - The net profit attributable to shareholders reached 35.51 million yuan, up 731.97% compared to the same period last year[40]. - The company completed 55% of its annual sales target in the first half of the year, with a main business income growth of 87%[40]. - The overseas business saw a remarkable growth, with export business increasing by 59% year-on-year[40]. Cash Flow and Financial Position - The net cash flow from operating activities was negative at -¥393,508,384.68, worsening from -¥155,280,960.90 in the previous year, indicating increased cash outflow[18]. - Cash flow from operating activities showed a net outflow of ¥393,508,384.68, a significant increase in outflow compared to ¥155,280,960.90 from the previous year[46]. - The company's total assets include ¥764,934,411.70 in inventory, which increased by 50.83% from ¥507,141,787.05, driven by order growth and rising raw material prices[48]. - The company reported a significant increase in long-term borrowings, which rose by 112.89% to ¥246,493,423.46, compared to ¥115,786,617.86, indicating a restructuring of its financing[48]. - The company's fixed assets totaled approximately CNY 312.33 million, while intangible assets amounted to CNY 54.48 million, leading to a total asset value of CNY 366.81 million as of June 30, 2021[52]. - The company reported a significant decrease in financial assets measured at fair value, with a total change of CNY -89.15 million, resulting in a final balance of CNY 22.47 million[54]. - The company reported a decrease in cash and cash equivalents to RMB 161,070,780.81 from RMB 285,932,965.29, a decline of about 43.6%[95]. Research and Development - R&D expenses rose by 67.27% to ¥45,705,525.08, compared to ¥27,323,954.39, reflecting the company's commitment to enhancing its research capabilities[46]. - The company is actively developing six major R&D projects, including the Flexible Feeder 3.0 and Servo Press Series, alongside ten high-tech projects such as MES development and visual intelligent algorithm development[42]. - The company obtained 13 new patent authorizations and filed 6 new patent applications during the reporting period, totaling 106 valid patents[41]. Business Strategy and Operations - The company attributed the revenue growth to increased sales volume and rising product prices[20]. - The reduction in losses due to fluctuations in silver prices contributed to the significant increase in net profit[20]. - The main business focuses on the manufacturing of electrical contact materials, which are essential for relays, circuit breakers, and sensors, positioning the company as a leading provider in the industry[25]. - The company has transitioned from a silver contact supplier to a comprehensive solution provider for electrical contact systems, emphasizing innovation and technology advancement[26]. - The procurement model is based on "production-driven purchasing," ensuring stable supply of raw materials like silver and copper, with a focus on maintaining reasonable inventory levels[26]. - The production model follows "sales-driven production," allowing the company to respond quickly to customer demands while maintaining safety stock[27]. - The company is expanding its business into precious metal recycling and smart manufacturing, aiming to enhance resource efficiency and reduce production costs[28]. - The company has developed various automation products through its subsidiary, aiming to improve production efficiency and support digital transformation[29]. - The company is focused on building a first-class automated factory, enhancing its overall competitiveness in the market[29]. Environmental and Compliance - The company has implemented pollution control facilities that are designed, constructed, and operated simultaneously with the main project, ensuring compliance with environmental standards[67]. - The company has a monthly monitoring plan for wastewater and semi-annual monitoring for air emissions and noise, conducted by qualified testing agencies[70]. - The company has established emergency response plans for environmental risks and has filed them with local environmental authorities[69]. - The company has achieved compliance with wastewater discharge standards, with specific pollutants such as cadmium and copper meeting the first-level standards[65][66]. - The company is committed to creating a resource recycling system for silver-containing waste materials, promoting environmental sustainability[28]. - The company is committed to adhering to environmental regulations and has received approvals for its environmental impact assessments for construction projects[68]. Governance and Shareholder Matters - The company did not distribute any dividends or bonus shares for the half-year period, with a proposed distribution of 0 shares and 0 yuan per 10 shares[63]. - The company is currently in the process of selecting new candidates for the board of directors and management, as the current term ended on February 1, 2021[62]. - The company has committed to not transferring more than 25% of its shares during the tenure of key personnel, ensuring stability in shareholding[74]. - The company will automatically extend the lock-up period for shares if the stock price falls below the issue price for a continuous period of 20 trading days post-IPO[74]. - The company has appointed Zhongtianyun Accounting Firm as its auditor for the 2021 fiscal year, continuing from the previous year[79]. - There are no significant lawsuits or arbitration matters reported during the reporting period, indicating a stable legal standing[79]. - The company has ensured compliance with information disclosure obligations, maintaining transparency with investors[76]. - The total number of ordinary shareholders at the end of the reporting period was 12,086[86]. - The largest shareholder, Wang Dawu, held 36,248,706 shares, representing 26.34% of the total shares[88]. Risks and Challenges - The company faces risks related to significant fluctuations in raw material prices, particularly silver, which could impact profitability if prices drop sharply[56]. - The company has a customer concentration risk, with the top five customers accounting for 42.07% of total revenue, including a major client, Chint Electric, representing 20.73%[58]. - The company is at risk of delayed technological updates, which could affect its competitive position in the technology-intensive electrical contact materials industry[58]. - The company has invested in new product and technology development to meet increasing market demands, but faces risks if it cannot keep pace with technological advancements[58]. - The company has a high reliance on tax incentives as a high-tech enterprise, which, if not renewed, could lead to a higher corporate tax rate of 25%[57]. Accounting and Financial Reporting - The company adheres to the Chinese Accounting Standards and has confirmed its ability to continue as a going concern for at least 12 months from the reporting date[129][131]. - The company’s financial reports are designed to provide a true and complete reflection of its financial status, operating results, and cash flows[131]. - The company recognizes revenue when it fulfills performance obligations, specifically when customers gain control of related goods or services[199]. - Revenue is measured based on the transaction price allocated to each performance obligation, which is determined by the standalone selling prices of the promised goods or services[199]. - The company uses expected credit loss models for impairment of financial assets, ensuring a robust approach to risk management[151]. - The company recognizes expected liabilities when there is a present obligation that is likely to result in an outflow of economic benefits[195].

Financial Performance - Operating revenue surged by 136.24% to CNY 608,724,880.16 year-on-year[5] - Net profit attributable to shareholders reached CNY 7,350,926.70, a significant increase of 172.44% compared to the same period last year[5] - Basic earnings per share improved to CNY 0.0543, up 173.44% from a loss of CNY -0.0739 in the previous year[5] - Operating profit for Q1 2021 was ¥5,746,284.28, recovering from a loss of ¥12,764,165.32 in Q1 2020[26] - Net profit for Q1 2021 was ¥7,350,926.70, compared to a net loss of ¥10,148,088.39 in Q1 2020, marking a turnaround[26] - The company reported a total profit of ¥5,818,430.57 for Q1 2021, compared to a total loss of ¥13,004,290.32 in Q1 2020[26] - The company’s total comprehensive income for Q1 2021 was 8,320,025.45 RMB, a decrease from -10,317,528.35 RMB in Q1 2020[30] Assets and Liabilities - Total assets increased by 7.16% to CNY 2,048,642,828.90 compared to the end of the previous year[5] - Total assets increased to ¥2,051,179,370.17 in Q1 2021, compared to ¥1,913,127,098.84 in Q1 2020, indicating growth in the company's asset base[25] - Current assets totaled CNY 1,430,350,794.95, up from CNY 1,358,975,222.36, indicating an increase of about 5.2%[22] - Total liabilities rose to CNY 1,217,313,023.68 from CNY 1,087,920,933.05, which is an increase of about 11.9%[24] - Non-current liabilities increased to CNY 304,294,101.09 from CNY 159,652,880.85, reflecting a growth of approximately 90.5%[24] - Owner's equity totaled CNY 830,776,529.47, slightly up from CNY 823,323,153.26, indicating a marginal increase of about 0.6%[19] Cash Flow - Cash flow from operating activities showed a negative net amount of CNY -432,211,630.54, worsening by 163.71% year-on-year[5] - The company experienced a significant increase in cash outflow for purchasing goods and services, which was 1,006,756,719.21 RMB, representing a rise of about 149.5%[30] - The total cash inflow from operating activities was 691,799,820.35 RMB, up from 292,835,944.73 RMB in the same period last year, reflecting a growth of approximately 136.3%[30] - The company generated a net cash flow from investing activities of 41,743,286.56 RMB, down from 54,669,088.57 RMB in Q1 2020, indicating a decrease of approximately 23.6%[31] - Cash inflow from financing activities was 425,784,620.32 RMB, compared to 236,900,000.00 RMB in Q1 2020, marking an increase of about 80%[31] - The company’s cash flow from financing activities netted 234,326,771.84 RMB in Q1 2021, a significant increase from 23,968,950.61 RMB in Q1 2020, indicating improved financing conditions[31] Shareholder Information - The total number of shareholders reached 12,494 by the end of the reporting period[9] - The top shareholder, Wang Dawu, holds 36,248,700 shares, representing 26.34% of the total shares[10] Research and Development - Research and development expenses doubled to ¥18,275,320.78, a 102.60% increase from ¥9,020,179.04, indicating a commitment to enhancing R&D efforts[12] - Research and development expenses increased to ¥18,275,320.78 in Q1 2021, up from ¥9,020,179.04 in Q1 2020, reflecting a 102.8% increase[25] Inventory and Costs - The company's total inventory rose to ¥758,652,053.05, reflecting a 49.59% increase from ¥507,141,787.05, due to production growth and rising silver prices[11] - The company's gross profit margin was impacted by a rise in operating costs, with operating costs increasing by 146.58% to ¥544,845,781.64 from ¥220,958,313.28[12] - The company reported a significant increase in other payables, which rose by 340.42% to ¥32,417,385.68 from ¥7,360,609.49, due to the conversion of fundraising projects into fixed assets[11] Borrowings and Financial Liabilities - The company's long-term borrowings increased by 99.43% to ¥230,917,469.31 from ¥115,786,617.86, driven by the need for additional working capital due to revenue growth[11] - Short-term borrowings rose to CNY 726,509,485.80 from CNY 619,866,943.03, reflecting an increase of approximately 17.2%[24] - The financial liabilities related to trading decreased by 100% to zero, as a result of closing out silver futures hedging transactions[11] - The company experienced a 1204.95% increase in credit impairment losses, amounting to -¥3,660,335.17, primarily due to provisions for bad debts on accounts receivable[13]

Financial Performance - The company's operating revenue for 2020 was RMB 2,304,550,442.98, representing a 47.37% increase compared to RMB 1,563,779,136.33 in 2019[21]. - The net profit attributable to shareholders of the listed company decreased by 39.59% to RMB 44,203,819.04 from RMB 73,178,765.05 in the previous year[21]. - The total assets of the company increased by 29.89% to RMB 1,911,833,833.36 at the end of 2020, compared to RMB 1,471,864,274.93 at the end of 2019[21]. - The net cash flow from operating activities improved significantly to RMB 9,285,254.76, a 110.68% increase from a negative RMB 86,936,658.79 in 2019[21]. - The company's net assets attributable to shareholders were RMB 823,323,153.26 at the end of 2020, showing a slight decrease of 0.14% from RMB 824,460,846.00 at the end of 2019[21]. - Basic and diluted earnings per share decreased by 38.91% compared to the previous year, attributed to the decline in net profit[22]. - The weighted average return on equity decreased by 3.78 percentage points to 5.40%[22]. - The company achieved a main business revenue of 2,081.24 million yuan, a year-on-year increase of 35.99%[49]. - The net profit attributable to shareholders of the listed company was 44.20 million yuan, a year-on-year decrease of 39.59%[49]. Dividend Policy - The company plans to distribute a cash dividend of RMB 0.8 per 10 shares to all shareholders, pending approval at the shareholders' meeting[5]. - The company has established a cash dividend policy, committing to distribute at least 15% of the distributable profit to shareholders annually, with potential increases aligned with net profit growth[100]. - The company approved a cash dividend of RMB 1.5 per 10 shares, totaling RMB 20,316,773.25 distributed to shareholders[101]. - In 2020, the cash dividend amounted to RMB 25,024,482.3, representing 56.61% of the net profit attributable to shareholders[106]. - The cash dividend for 2019 was RMB 1.5 per 10 shares, totaling RMB 20,435,981.25[104]. Research and Development - R&D expenses increased by 48.16% to CNY 74,509,299.18, reflecting a commitment to enhance innovation capabilities[60]. - The company has been recognized as a national high-tech enterprise and has undertaken several national and provincial-level research projects, enhancing its technological capabilities[43]. - The company is committed to strengthening R&D innovation by increasing investment in technology development and expanding its product range, including new materials and products in sectors like automotive relays and aerospace[92]. - Total R&D expenditure amounted to ¥74,509,299.18, representing 3.23% of total revenue[67]. Market Expansion and Strategy - The company is focusing on the "Electric Contact +" development strategy, emphasizing research and development of electric contact materials[34]. - The company has expanded its business into precious metal recycling, smart manufacturing, and industrial automation[34]. - The company is actively expanding its international market presence, having passed supplier certifications from major global companies like Schneider and ABB[44]. - The company is actively pursuing international market opportunities to enhance its competitive edge and increase its market share in the electric contact materials sector[84]. - The company plans to transition towards smart manufacturing, responding to the global trend of "Industry 4.0" and the implementation of "Made in China 2025"[85]. Operational Efficiency - The company has implemented a lean production model and smart manufacturing to improve production efficiency and control costs[45]. - The company has developed various automation products, including flexible execution platforms and industrial robots, to enhance production efficiency and reduce costs[38]. - The company employs a "sales-driven production" model to align production with customer demand[36]. - The company is enhancing its data management and analysis capabilities, implementing a comprehensive analysis of profitability, solvency, operational quality, growth potential, and efficiency to optimize resource allocation for high-quality development[88]. Environmental Compliance - The company is classified as a key pollutant discharge unit, with specific discharge standards met for various pollutants including Cd (0.05 mg/l), Cu (0.05 mg/l), and Ag (0.03 mg/l) in wastewater treatment[123]. - The company has two wastewater treatment stations and two air discharge points, all of which are compliant with the relevant environmental standards[124]. - The company conducts monthly monitoring of wastewater and semi-annual monitoring of air emissions and noise through qualified testing agencies[127]. - The company has established emergency response plans for environmental incidents, which are filed with the local environmental protection bureau[126]. Shareholder Information - The total number of ordinary shareholders increased from 12,494 to 13,513 during the reporting period, reflecting a growth of approximately 8.2%[131]. - The largest shareholder, Wang Dawu, holds 36,248,706 shares, representing 26.34% of the total shares, with no change during the reporting period[133]. - The company reported a total of 41,491,506 shares held by directors and senior management at the end of the reporting period, reflecting a decrease of 761,447 shares[144]. - The company has a total of 2,143,400 shares held by Qian Zhaobin, which will become tradable on May 17, 2021, under a 36-month lock-up period[135]. Audit and Compliance - The audit report issued by Zhongtian Yun Accounting Firm was a standard unqualified opinion[4]. - The internal control audit report issued by Zhongtian Accounting Firm confirmed the effectiveness of the company's internal controls, with a standard unqualified opinion[164]. - The company appointed Zhongtianyun Accounting Firm as the auditor for the 2020 fiscal year, with a remuneration of CNY 450,000[114]. - The audit report highlighted the importance of revenue recognition as a key audit matter, ensuring compliance with accounting standards[169].

Financial Performance - Net profit attributable to shareholders decreased by 43.80% to CNY 28,490,482.14 year-to-date[6] - Basic and diluted earnings per share decreased by 43.21% to CNY 0.2092[7] - The net profit after deducting non-recurring gains and losses fell by 37.79% to CNY 21,503,463.96 year-to-date[6] - The company predicts a significant decline in cumulative net profit for the year compared to the same period last year due to increased asset impairment losses and reduced government subsidies[17] - Net profit for Q3 2020 was ¥20,840,698.29, compared to ¥17,424,711.77 in Q3 2019, reflecting a growth of 13.7%[29] - Net profit for Q3 2020 was ¥24,222,189.85, up 46.8% from ¥16,494,553.06 in Q3 2019[30] - The total comprehensive income for Q3 2020 was approximately ¥24.20 million, compared to ¥28.62 million in Q3 2019, indicating a decline of 15.5%[37] Revenue and Costs - Operating revenue for the first nine months rose by 34.00% to CNY 1,443,483,053.65 compared to the same period last year[6] - Total revenue for the period reached ¥1,443,483,053.65, representing a 34.00% increase compared to ¥1,077,187,686.66 in the same period last year[15] - The company's gross profit margin was impacted by a 35.00% increase in operating costs, totaling ¥1,250,245,999.47, due to rising material prices and increased sales volume[15] - Total operating revenue for Q3 2020 reached ¥632,355,849.94, a 56.6% increase from ¥403,790,893.19 in Q3 2019[34] - Total operating costs for Q3 2020 were ¥605,959,566.97, up 56.4% from ¥387,564,375.08 in Q3 2019[28] Assets and Liabilities - Total assets increased by 17.76% to CNY 1,733,213,242.57 compared to the end of the previous year[6] - The total net assets attributable to shareholders decreased by 2.03% to CNY 807,684,416.18 compared to the end of the previous year[6] - Current liabilities reached CNY 751,488,018.94, an increase from CNY 598,648,067.12[22] - Total liabilities reached ¥925,525,538.39 in Q3 2020, compared to ¥647,403,428.93 in Q3 2019, indicating a rise of 43%[26] - The company reported a short-term loan of CNY 606,259,724.05, up from CNY 515,688,012.95[22] - The company’s total liabilities included short-term borrowings of CNY 515,688,012.95[50] Cash Flow - The net cash flow from operating activities showed a decline of 9.86%, amounting to CNY -271,451,870.10[6] - Cash inflows from operating activities for the first nine months of 2020 totaled approximately ¥1.46 billion, an increase of 31.3% from ¥1.11 billion in the same period of 2019[39] - The net cash flow from operating activities for the first three quarters of 2020 was CNY -271,171,462.51, compared to CNY -247,058,605.08 in the first three quarters of 2019, indicating a decline in operational cash flow[41] - Cash inflows from investing activities for the first nine months of 2020 were approximately ¥178.66 million, a decrease of 83.1% from ¥1.06 billion in the same period of 2019[40] - The net cash flow from financing activities for the first nine months of 2020 was approximately ¥146.13 million, compared to ¥118.80 million in the same period of 2019, indicating a growth of 23.0%[40] Research and Development - Research and development expenses surged by 73.94% to ¥58,162,565.19, reflecting the company's commitment to enhancing its R&D capabilities[15] - R&D expenses in Q3 2020 amounted to ¥30,838,610.80, a significant increase of 146.7% compared to ¥12,497,667.70 in Q3 2019[29] - The company plans to continue investing in R&D and market expansion to drive future growth[29] Other Financial Metrics - The weighted average return on net assets decreased by 2.97 percentage points[7] - The company reported a loss from the disposal of non-current assets amounting to CNY -695,805.14 year-to-date[8] - Non-operating income included government subsidies totaling CNY 8,327,777.92 year-to-date[8] - The company reported a decrease in other comprehensive income, with a net amount of -¥146,312.80 in Q3 2020 compared to -¥262,246.37 in Q3 2019[36]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥811,127,203.71, representing a 20.45% increase compared to ¥673,396,793.47 in the same period last year[19]. - The net profit attributable to shareholders decreased by 87.52% to ¥4,268,292.29 from ¥34,201,325.50 in the previous year, primarily due to increased asset impairment losses and a reduction in government subsidies[21]. - The basic earnings per share dropped by 87.40% to ¥0.0313 from ¥0.2485 year-on-year[20]. - The company reported a net cash flow from operating activities of -¥155,280,960.90, slightly worse than -¥155,017,571.76 in the previous year[19]. - The company achieved a main business revenue of 760.16 million yuan, a year-on-year increase of 15.94%[44]. - The company reported a total comprehensive income of CNY 4,422,186.68 for the first half of 2020, compared to CNY 34,201,325.50 in the previous year[112]. - The company reported a significant increase in financial expenses, totaling ¥15,001,370.10, compared to ¥12,982,333.78 in the previous year, marking a 15.6% rise[108]. Assets and Liabilities - The total assets increased by 5.22% to ¥1,548,704,710.69 compared to ¥1,471,864,274.93 at the end of the previous year[21]. - The total liabilities increased to CNY 765,100,922.29 from CNY 647,403,428.93, reflecting a rise of about 18.2%[101]. - The total equity attributable to shareholders decreased to CNY 783,603,788.40 from CNY 824,460,846.00, a decline of approximately 4.9%[101]. - Cash and cash equivalents decreased to CNY 118,880,921.65 from CNY 183,872,900.14, a decline of about 35.4%[103]. - Accounts receivable increased to CNY 369,608,504.50 from CNY 273,984,712.27, showing a growth of approximately 35%[104]. - Inventory rose to CNY 501,007,391.24, up from CNY 402,432,877.44, indicating an increase of around 24.5%[104]. Operational Insights - The main business of the company is the research, production, and sales of electrical contact materials, which are widely used in relays, circuit breakers, and sensors[27]. - The procurement model is based on "production-based ordering," ensuring stable supply and timely response to customer needs[30]. - The production model follows "sales-based production," allowing the company to adapt quickly to market demands[31]. - The company maintains a direct sales model, with a marketing center responsible for customer development and sales maintenance across various regions[32]. - The company has established a strong customer base, including domestic clients like Chint Electric and international clients such as Schneider and Siemens[28]. Research and Development - R&D expenses increased by 30.49% to ¥27,323,954.39 from ¥20,940,108.05 year-on-year[53]. - The company is focusing on R&D for high-end automotive relay silver-tin oxide materials and high-voltage direct current contact materials for electric vehicles[46]. - The company obtained 5 patent authorizations during the reporting period, including 3 invention patents and 2 utility model patents, bringing the total to 57 invention patents[46]. Market and Risk Factors - The company faced significant risks related to market volatility and potential asset impairment, as detailed in the report[7]. - The company is at risk of significant profit decline if silver prices experience sustained or sharp declines due to the lag in risk transmission mechanisms[62]. - The company has a high dependency on silver as a primary raw material, which is subject to volatility influenced by international political and economic conditions[62]. Corporate Governance and Compliance - The company appointed Zhongtian Yun Accounting Firm as the auditor for the 2020 fiscal year, approved at the 2019 annual shareholders' meeting[74]. - There were no significant lawsuits or arbitration matters during the reporting period[74]. - The company has not disclosed any major related party transactions during the reporting period[75]. - The company has not experienced any bankruptcy reorganization matters during the reporting period[74]. Shareholder Information - The total number of common stock shareholders at the end of the reporting period was 15,104[90]. - The largest shareholder, Wang Dawu, held 36,248,706 shares, representing 26.34% of the total shares[91]. - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of its IPO[70]. Environmental and Social Responsibility - The company donated 100,000 yuan to poverty alleviation efforts and 200,000 yuan for pandemic relief during the reporting period[78]. - The company has achieved compliance with pollution discharge standards for various pollutants, including cadmium (0.004 mg/l), copper (0.046 mg/l), and chemical oxygen demand (113 mg/l)[79]. - The company’s pollution control facilities are designed and constructed simultaneously with the main project, ensuring operational alignment with production scale[81].

Financial Performance - Operating revenue for the first quarter was approximately CNY 257.67 million, down 8.05% year-on-year[5]. - Net profit attributable to shareholders of the listed company was approximately CNY -11.28 million, a decrease of 336.15% compared to the same period last year[5]. - Basic and diluted earnings per share were both CNY -0.0739, a decline of 148.71% year-on-year[5]. - The company reported a significant decline in net profit, indicating challenges in the current market environment[5]. - The company anticipates a significant decline in net profit compared to the same period last year due to the ongoing impact of the COVID-19 pandemic and falling silver prices[15]. - Total operating revenue for Q1 2020 was ¥257,670,449.55, a decrease of 8.5% compared to ¥280,214,184.52 in Q1 2019[29]. - Net profit for Q1 2020 was a loss of ¥10,148,088.39, compared to a profit of ¥14,911,602.34 in Q1 2019[29]. - The total comprehensive income for Q1 2020 was a loss of ¥10,317,528.35, compared to a profit of ¥14,911,602.34 in Q1 2019[34]. - The company's operating profit for Q1 2020 was a loss of ¥12,646,231.59, compared to a profit of ¥6,328,954.14 in Q1 2019[33]. Assets and Liabilities - Total assets at the end of the reporting period were approximately CNY 1.47 billion, a decrease of 0.39% compared to the end of the previous year[5]. - Total liabilities increased to ¥663,537,355.30 in Q1 2020 from ¥647,403,428.93 in Q1 2019, reflecting a rise of 2.1%[26]. - Cash and cash equivalents decreased by 44.56% to ¥102,107,402.28 from ¥184,190,236.79 due to increased payments to suppliers[12]. - Trading financial assets dropped by 76.52% to ¥22,417,159.58 from ¥95,470,217.85 as a result of reduced investments in bank wealth management products[12]. - Other current assets increased by 130.18% to ¥49,114,330.11 from ¥21,337,292.94, primarily due to an increase in input tax credits and futures margin[13]. - The company’s total equity decreased to ¥802,789,181.65 in Q1 2020 from ¥824,600,784.23 in Q1 2019, a decline of 2.2%[26]. Cash Flow - Cash flow from operating activities improved to approximately CNY -163.90 million, a reduction of 38.99% compared to the previous year[5]. - The net cash flow from operating activities for Q1 2020 was -CNY 163,823,297.40, compared to -CNY 268,647,217.41 in Q1 2019, showing an improvement of approximately 39.1%[39]. - Cash inflow from operating activities totaled CNY 292,835,681.97, up from CNY 240,205,291.29 in the previous year, representing an increase of about 21.9%[39]. - Cash outflow from operating activities decreased to CNY 456,658,979.37 from CNY 508,852,508.70, a reduction of approximately 10.3%[39]. - The net cash flow from investing activities was CNY 53,660,659.14, down from CNY 178,679,461.93 in Q1 2019, indicating a decline of about 69.9%[39]. - The net cash flow from financing activities was CNY 23,968,950.61, compared to CNY 82,966,029.24 in the same period last year, reflecting a decrease of about 71.2%[40]. Shareholder Information - The total number of shareholders at the end of the reporting period was 18,256[10]. - The largest shareholder, Wang Dawu, held 26.34% of the shares, with 15.34 million shares pledged[10]. Expenses - The company recorded a significant increase in asset impairment losses by 230.66% to -¥15,445,335.13 from -¥4,671,062.23, mainly due to higher provisions for raw material price declines[14]. - The company reported a 200% increase in other operating expenses to ¥300,000.00 from ¥100,000.00, attributed to donations made during the COVID-19 pandemic[14]. - The company reported a significant increase in research and development expenses, totaling ¥9,020,179.04 in Q1 2020, compared to ¥11,203,878.83 in Q1 2019[29]. - The company's financial expenses for Q1 2020 were ¥7,096,450.28, compared to ¥6,332,998.47 in Q1 2019, reflecting an increase of 12.1%[33]. - The company reported a decrease in sales expenses for Q1 2020, which were ¥2,662,464.11, compared to ¥2,294,106.22 in Q1 2019, showing an increase of 16.1%[33].

Financial Performance - The company achieved a net profit attributable to shareholders of 73,178,765.05 RMB in 2019, representing a 26.54% increase compared to 2018[5]. - Total operating revenue for 2019 was 1,563,779,136.33 RMB, reflecting a year-on-year growth of 17.98%[21]. - The net profit attributable to shareholders for Q4 was CNY 22,482,886.49, showing a quarterly increase from CNY 16,494,553.06 in Q3[25]. - Basic earnings per share increased by 13.41% to CNY 0.5320 compared to CNY 0.4691 in the previous year[23]. - The company reported a total revenue of CNY 486,591,449.67 in Q4, marking a steady growth throughout the year[25]. - The total profit for 2019 was CNY 80,152,454.54, which is a 25.67% increase from CNY 63,759,856.78 in 2018[193]. - The total comprehensive income for 2019 was CNY 73,004,406.51, compared to CNY 57,830,849.86 in 2018, reflecting a growth of 26.29%[194]. Assets and Liabilities - The company's total assets increased by 10.25% year-on-year, reaching 1,471,864,274.93 RMB by the end of 2019[21]. - The net assets attributable to shareholders rose to 824,460,846.00 RMB, marking a 7.30% increase from the previous year[21]. - Total liabilities increased to ¥647,403,428.93 in 2019 from ¥566,697,822.77 in 2018, which is an increase of approximately 14.2%[182]. - The company's cash and cash equivalents increased by 91.61% to 184,190,236.79, representing 12.51% of total assets[70]. - Short-term borrowings rose by 53.70% to 515,688,012.95, accounting for 35.04% of total assets, driven by an 18% increase in sales[70]. Cash Flow - The cash flow from operating activities showed a significant decline, with a net outflow of 86,936,658.79 RMB, a decrease of 247.24% compared to the previous year[21]. - The net cash flow from operating activities for Q4 was CNY 160,154,753.46, a significant recovery from a negative cash flow of CNY -92,073,840.49 in Q3[25]. - The net cash flow from investment activities improved by 146.09% to ¥62,319,846.56, mainly due to the redemption of bank wealth management products and structured deposits[56]. - The net cash flow from financing activities for 2019 was CNY 114,558,685.07, slightly down from CNY 119,976,969.59 in 2018[198]. Research and Development - Research and development expenses amounted to ¥50,288,888.95, representing 3.22% of operating revenue, with 163 R&D personnel accounting for 13.87% of the total workforce[66]. - Research and development expenses for 2019 amounted to CNY 50,288,888.95, an increase of 14.00% compared to CNY 43,835,418.33 in 2018[192]. Market and Customer Relations - The company has established strong customer relationships with major domestic clients such as Chint Electric and international clients like ABB and Schneider[30]. - The company developed over 60 new customers during the reporting period, with some already forming bulk cooperation[47]. - The company has expanded its international market presence, establishing business relationships in over 10 countries and regions, including Hong Kong and parts of Europe[36]. Corporate Governance and Compliance - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[4]. - The management team has outlined specific measures to ensure compliance with shareholding commitments[102]. - The company has not reported any non-standard audit opinions from the accounting firm[107]. - The company has not faced any risks of suspension or termination of its listing[108]. Shareholder Information - The company plans to distribute a cash dividend of 1.5 RMB per 10 shares (before tax) to all shareholders[5]. - The company has established a cash dividend policy to distribute at least 15% of the distributable profits to shareholders annually after reserving statutory and surplus reserves[97]. - As of December 31, 2019, the company repurchased 293,600 shares for a total amount of 4,992,869 RMB, which accounted for 6.82% of the net profit attributable to shareholders[99]. Environmental Compliance - The company is classified as a key pollutant discharge unit, meeting all relevant discharge standards for various pollutants[114]. - The company has established and operates pollution prevention facilities that are in line with its production scale, ensuring compliance with environmental regulations[116]. - The company conducts monthly monitoring of wastewater and semi-annual monitoring of air emissions and noise through qualified testing agencies[119]. Future Outlook - The company aims to enhance its comprehensive quality management capabilities to compete more effectively in the international market, as current capabilities are still below international standards[80]. - Future guidance indicates a focus on increasing market share and enhancing product offerings in the upcoming fiscal year[128]. - The company plans to optimize product and market structures to ensure quality development while steadily increasing scale and speed[83].