Financial Performance - The company's operating revenue for the first half of 2022 was ¥238,614,313.04, a decrease of 26.79% compared to ¥325,928,470.98 in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2022 was ¥16,037,369.26, down 76.36% from ¥67,837,099.22 in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥9,952,070.16, a decline of 85.08% compared to ¥66,704,749.03 in the same period last year[18]. - The net cash flow from operating activities was ¥59,666,726.48, representing a decrease of 8.93% from ¥65,515,570.91 in the previous year[18]. - Basic earnings per share for the first half of 2022 were ¥0.11, down 82.26% from ¥0.62 in the same period last year[19]. - The weighted average return on net assets was 1.24%, a decrease of 8.82 percentage points from 10.06% in the previous year[19]. - The decline in profits was primarily due to the impact of the pandemic on the automotive supply chain, leading to a reduction in customer orders[20]. - The company reported a non-recurring profit of approximately ¥6.09 million, primarily from government subsidies and investment management gains[22]. - The company reported a total comprehensive income for the first half of 2022 was RMB 15,995,745.10, down from RMB 67,639,614.61 in the first half of 2021[120]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,595,684,344.91, an increase of 3.73% from ¥1,538,360,137.20 at the end of the previous year[18]. - The net assets attributable to shareholders at the end of the reporting period were ¥1,281,187,144.24, a decrease of 1.08% from ¥1,295,193,754.44 at the end of the previous year[18]. - The total current assets decreased from 905,984,643.36 RMB to 790,468,220.12 RMB, a reduction of approximately 12.7%[108]. - The total liabilities and equity structure remains stable, with no significant changes reported in the debt levels[108]. - Current liabilities increased to ¥284,943,432.33 from ¥229,758,801.95, representing a rise of approximately 24%[110]. - Short-term borrowings surged to ¥142,632,423.62 from ¥46,561,561.81, marking an increase of about 206%[110]. - The total equity decreased to ¥1,281,379,099.54 from ¥1,295,193,754.44, reflecting a decline of about 1.1%[111]. Research and Development - The company has a dedicated R&D team of over 110 professionals, utilizing advanced design software to shorten product development cycles and reduce costs[30]. - The company has formed a research and development center in collaboration with Zhejiang University, enhancing its capabilities in engine valve timing system products[31]. - The company plans to enhance R&D capabilities and management levels to improve product quality and focus on product transformation and upgrades[36]. - Research and development expenses increased to RMB 18,232,032.03, up from RMB 17,272,387.64, indicating a growth of 5.6%[118]. Market Position and Strategy - The company has established stable long-term partnerships with numerous well-known automotive manufacturers, enhancing its competitive edge in the automotive precision parts market[25]. - The company aims to expand its market presence by leveraging its strong customer relationships and continuous product innovation[26]. - The company has established a strong customer base, including major clients such as FAW Toyota and Dongfeng Honda, ensuring stable revenue streams[35]. - The company aims to accelerate overseas business expansion to increase its international market share[36]. Environmental and Social Responsibility - The company operates in the automotive parts manufacturing industry and does not belong to high-risk, heavily polluting sectors, ensuring no major pollution sources during daily operations[61]. - The company has implemented two wastewater treatment facilities, conducting automatic online monitoring every two hours to ensure compliance with discharge standards[63]. - The company has been recognized as a benchmark enterprise for water conservation in Zhejiang Province for its effective water recycling initiatives[66]. - The company is actively involved in poverty alleviation and rural revitalization efforts, partnering with communities for labor cooperation and public welfare activities[67]. Shareholder Commitments and Governance - The controlling shareholder, Li Ming Investment, and other shareholders committed to not transferring or entrusting the management of their shares for 36 months from the date of the IPO[71]. - The company has committed to not transferring benefits to other entities or individuals under unfair conditions, ensuring the protection of its interests[80]. - The company will publicly explain any failure to fulfill its stock price stabilization obligations and apologize to shareholders[77]. - The company has committed to full disclosure of any unfulfilled promises made during the IPO process[88]. Risks and Challenges - The company faces risks related to macroeconomic fluctuations and the automotive industry's cyclical nature, which could impact order volumes and cash flow[49]. - There is a risk of declining product prices due to annual adjustments in the automotive parts industry, which could affect profitability if not managed properly[51]. - Fluctuations in raw material prices, particularly steel, pose a significant risk to the company's cost structure and profitability[53]. - The company is at risk of structural changes in the automotive industry, particularly with the rise of electric vehicles, which may require strategic adjustments[50]. Financial Reporting and Accounting Policies - The company adheres to the enterprise accounting standards, ensuring that financial statements accurately reflect its financial position, operating results, changes in shareholders' equity, and cash flows[144]. - The company recognizes financial assets when the contractual rights to receive cash flows have expired or when the transfer of financial assets meets the criteria for derecognition as per accounting standards[155]. - The company applies the equity method for accounting for investments in subsidiaries and joint ventures, consolidating all controlled subsidiaries into the financial statements[148]. - The company recognizes employee benefits as liabilities during the accounting period in which services are provided, based on defined contribution plans[190].

Financial Performance - The company's operating revenue for 2021 was CNY 595,588,479.54, representing a 7.80% increase compared to CNY 552,481,423.95 in 2020[21] - The net profit attributable to shareholders for 2021 was CNY 99,081,253.86, a decrease of 17.63% from CNY 120,284,668.60 in 2020[21] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 89,011,262.60, down 19.78% from CNY 110,956,996.98 in 2020[21] - The company's total assets increased by 56.20% to CNY 1,538,360,137.20 at the end of 2021, compared to CNY 984,869,087.35 at the end of 2020[21] - The net assets attributable to shareholders rose by 99.11% to CNY 1,295,193,754.44 at the end of 2021, up from CNY 650,477,054.79 at the end of 2020[21] - Basic earnings per share decreased by 19.27% to CNY 0.88 in 2021 from CNY 1.09 in 2020[22] - The weighted average return on equity dropped by 6.71 percentage points to 13.53% in 2021 compared to 20.24% in 2020[22] - The gross profit margin decreased by 4.15 percentage points to 37.79%[54] Cash Flow and Investments - The net cash flow from operating activities for 2021 was CNY 100,163,876.23, a decrease of 26.10% from CNY 135,539,958.10 in 2020[21] - The net cash flow from investing activities significantly worsened, with a decrease of 918.11% to -341,873,516.33 RMB, primarily due to land purchases and project investments[64] - The net cash flow from financing activities improved to 368,125,020.48 RMB, attributed to funds raised from a public stock issuance[64] - The company reported a significant increase in cash flow from financing activities, amounting to CNY 368.13 million due to public stock issuance[53] Shareholder Returns - The company plans to distribute a cash dividend of CNY 2.05 per 10 shares, totaling CNY 30,110,400.00, which accounts for approximately 30.39% of the net profit for 2021[7] - The company prioritizes cash dividends in its profit distribution policy, with a preference for cash over stock dividends[115] - The company plans to distribute at least 15% of the annual distributable profit as cash dividends, provided there are no significant capital expenditures in the next twelve months[117] Research and Development - The company invested CNY 34.78 million in R&D during the reporting period, an increase of 34% compared to the previous year[38] - The company is committed to increasing R&D capabilities by attracting top talent and enhancing its research facilities, including establishing a postdoctoral workstation in collaboration with Zhejiang University[82] - The company plans to invest in a precision stamping project with an annual production capacity of 27.3 million pieces, targeting various sectors including automotive and electronics[80] Market Strategy and Expansion - The company aims to expand its overseas business, particularly through its U.S. subsidiary, to increase international market share[33] - Future strategies include product transformation and upgrading to leverage market and technological advantages[33] - The company plans to enhance product quality to expand market share amid a slowing industry growth rate[75] - Market expansion plans include entering two new international markets by Q3 2022, which is expected to increase market share by 5%[100] Operational Efficiency - The company has optimized its internal management and organizational structure to improve operational efficiency amid economic pressures[40] - The company has implemented advanced management methods, including lean production and 5S management, to improve operational efficiency[50] - The company has established a robust governance structure for its subsidiaries, promoting effective management and operational efficiency[124] Environmental Responsibility - The company has a comprehensive environmental protection strategy, with no significant pollution sources identified in its operations[126] - The company reported that its waste gas emissions, including particulate matter and nitrogen oxides, are within the limits set by national standards[128] - The company actively engages in clean production practices to minimize environmental impact[128] Risk Management - The company has outlined potential risks in its management discussion and analysis section, advising investors to be cautious[9] - The company recognizes the risk of macroeconomic fluctuations affecting the automotive industry, which could impact order volumes and payment collections[88] - The company is aware of the potential disruption from the rise of electric vehicles and the need to adjust its business strategy accordingly to mitigate risks associated with traditional fuel engine reliance[90] Corporate Governance - The company has maintained a stable leadership structure with no changes in shareholding among the directors and senior management[97] - The total pre-tax compensation for the board members amounted to 5,665,900 CNY[97] - The company has established a structured mechanism for evaluating and compensating senior management based on performance and specific roles[122] Audit and Compliance - The audit opinion confirmed that the financial statements fairly reflect the company's financial position and operating results in accordance with accounting standards[195] - The company has ensured compliance with laws and regulations regarding related party transactions to protect shareholder interests[158] - The company has appointed Tianjian Accounting Firm as its auditor for 2021, with an audit fee of RMB 800,000[162]

Financial Performance - Q1 2022 revenue was CNY 135,856,108.11, a decrease of 14.00% compared to the same period last year[2] - Net profit attributable to shareholders was CNY 13,152,846.81, down 63.52% year-on-year[2] - Basic earnings per share decreased by 72.73% to CNY 0.09[2] - The decline in net profit was attributed to overall market downturn and rising material costs[5] - In Q1 2022, the company's net profit was CNY 13,152,846.81, a decrease of 63.4% compared to CNY 35,896,844.31 in Q1 2021[16] - The total profit for Q1 2022 was CNY 14,187,467.78, down 64.7% from CNY 40,135,783.23 in the same period last year[16] - The company's operating profit for Q1 2022 was CNY 14,326,821.10, a decline of 64.4% from CNY 40,193,569.91 in Q1 2021[16] - The company’s total comprehensive income for Q1 2022 was CNY 13,151,940.99, a decrease of 63.4% from CNY 35,901,301.83 in Q1 2021[16] Assets and Liabilities - Total assets increased by 3.21% to CNY 1,587,696,961.13 compared to the end of the previous year[2] - Total current assets as of March 31, 2022, were CNY 845,913,664.65, down 6.6% from CNY 905,984,643.36 as of December 31, 2021[11] - Total liabilities as of March 31, 2022, were CNY 279,351,265.70, an increase of 14.9% compared to CNY 243,166,382.76 as of December 31, 2021[12] - Total assets as of March 31, 2022, reached CNY 1,587,696,961.13, a slight increase from CNY 1,538,360,137.20 as of December 31, 2021[13] - The company's total equity as of March 31, 2022, was CNY 1,308,345,695.43, up from CNY 1,295,193,754.44 as of December 31, 2021, showing a growth of 1.0%[13] Cash Flow - Net cash flow from operating activities was CNY 22,668,561.74, a slight decrease of 1.99%[2] - Cash flow from operating activities in Q1 2022 was CNY 22,668,561.74, slightly down from CNY 23,127,986.39 in Q1 2021[18] - The company reported cash inflow from investment activities of CNY 70,576,438.36 in Q1 2022, compared to CNY 98,168.50 in Q1 2021[19] - The net cash flow from investment activities was -CNY 41,793,697.01 in Q1 2022, worsening from -CNY 23,147,866.71 in the previous year[19] - Cash and cash equivalents at the end of Q1 2022 totaled CNY 220,597,417.21, up from CNY 65,723,223.18 at the end of Q1 2021[19] Shareholder Information - The company had a total of 18,624 common shareholders at the end of the reporting period[6] - Major shareholders included Zhejiang Free Trade Zone Liming Investment Co., Ltd. with a 42.55% stake[7] Operating Costs and Expenses - Total operating costs for Q1 2022 were CNY 121,719,499.86, an increase of 4.0% from CNY 116,988,311.73 in Q1 2021[15] - Research and development expenses for Q1 2022 amounted to CNY 10,028,456.37, up from CNY 8,672,013.58 in Q1 2021, reflecting a growth of 15.6%[15] Other Financial Metrics - Weighted average return on equity fell by 81.27 percentage points to 1.01%[2] - Cash and cash equivalents as of March 31, 2022, were CNY 220,618,417.21, compared to CNY 186,591,044.89 as of December 31, 2021, indicating a growth of 18.2%[10] - Accounts receivable as of March 31, 2022, were CNY 136,848,610.28, down 5.3% from CNY 144,463,449.74 as of December 31, 2021[11] - Short-term borrowings increased to CNY 105,500,000.00 as of March 31, 2022, compared to CNY 46,561,561.81 as of December 31, 2021, reflecting a significant rise of 126.2%[12] - The company incurred a foreign exchange loss of CNY 863.23 in Q1 2022, compared to a gain of CNY 4,457.52 in Q1 2021[19]