Financial Performance - The company's operating revenue for Q1 2022 was CNY 840,234,362.20, representing a year-on-year increase of 47.83%[5] - The net profit attributable to shareholders for the same period was CNY 78,352,816.06, reflecting a growth of 24.76% compared to the previous year[5] - The basic earnings per share for Q1 2022 was CNY 0.33, which is an increase of 26.92% year-on-year[6] - Total operating revenue for Q1 2022 reached CNY 840,234,362.20, a significant increase of 47.7% compared to CNY 568,397,772.82 in Q1 2021[15] - Net profit for Q1 2022 was CNY 82,133,029.08, representing a 28.1% increase from CNY 64,099,812.21 in Q1 2021[18] - In Q1 2022, the total revenue reached ¥82,189,327.58, an increase of 28.4% compared to ¥63,968,179.59 in Q1 2021[19] - The basic and diluted earnings per share increased to ¥0.33 from ¥0.26, representing a growth of 26.9%[19] Assets and Liabilities - The total assets at the end of Q1 2022 amounted to CNY 4,029,713,546.12, up 8.41% from the end of the previous year[6] - The company's total assets increased to CNY 4,029,713,546.12, up from CNY 3,717,025,014.54, reflecting a growth of 8.4%[15] - Total liabilities rose to CNY 1,534,965,939.64, compared to CNY 1,323,918,652.01, marking an increase of 15.9%[14] - The equity attributable to shareholders of the parent company increased to CNY 2,464,190,926.42 from CNY 2,366,329,895.49, reflecting a growth of 4.1%[15] Cash Flow - The net cash flow from operating activities was negative at CNY -100,344,970.06, which is not applicable for year-on-year comparison[5] - The net cash flow from operating activities was -¥100,344,970.06, an improvement from -¥156,022,924.53 in the same period last year[22] - Cash received from sales of goods and services was ¥592,122,095.26, up 58.3% from ¥374,400,150.70 in Q1 2021[21] - The company reported a total cash outflow from operating activities of ¥730,053,926.68, up from ¥555,704,255.66 in the same quarter last year[22] - The net cash flow from investing activities was -¥160,668,404.90, slightly better than -¥172,738,344.66 in Q1 2021[22] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 9,635[9] - The top shareholder, Shao Wei, holds 54,864,908 shares, accounting for 22.44% of the total shares[9] Operational Highlights - The company has seen a significant increase in product orders due to a focus on existing customer needs and the acquisition of new clients[7] - The company reported a total of CNY 1,844,230.07 in non-recurring gains and losses for the period[7] - Research and development expenses for Q1 2022 were CNY 22,483,003.28, nearly doubling from CNY 10,558,281.63 in Q1 2021, indicating a strong focus on innovation[15] Inventory and Compensation - Inventory levels increased to CNY 787,788,318.14, up 17.3% from CNY 671,573,312.79[14] - The company reported a decrease in employee compensation liabilities to CNY 43,315,017.59 from CNY 53,814,401.72, a reduction of 19.5%[14] - The company paid ¥82,223,552.49 in employee compensation, an increase of 24.6% from ¥65,962,074.81 in the previous year[22] Cash and Equivalents - The company's cash and cash equivalents were not explicitly detailed, but total current assets amounted to CNY 3,034,023,182.09, up from CNY 2,790,923,989.28, an increase of 8.7%[14] - Total cash and cash equivalents at the end of the period were ¥490,614,826.51, down from ¥541,863,342.36 at the end of Q1 2021[23] - The company experienced a foreign exchange impact on cash and cash equivalents of ¥773,950.67, compared to ¥319,167.90 in Q1 2021[23] - Cash inflow from financing activities was ¥60,462,000.00, compared to ¥59,602,000.00 in Q1 2021, showing a slight increase[23]

Dividend and Shareholder Returns - The company plans to distribute a cash dividend of RMB 3 per 10 shares to all shareholders, pending approval at the shareholders' meeting[6]. - The company has not proposed any stock bonus or capital reserve transfer to increase share capital for the 2021 fiscal year[6]. - The company distributed a cash dividend of RMB 0.6 per share and a stock bonus of 0.4 shares, totaling RMB 103.29 million in cash dividends, which accounted for 38.53% of the net profit attributable to shareholders in 2020[44]. - The company has outlined a three-year shareholder return plan for 2021-2023, indicating a focus on enhancing shareholder value[126]. - The cash dividend policy is designed to protect the legitimate rights and interests of minority investors, with no changes made to the policy during the reporting period[153]. - The cash dividend policy complies with the company's articles of association and provides clear standards and ratios for dividends[154]. - The decision-making procedures and mechanisms for the cash dividend policy are complete and well-defined[154]. - Minority shareholders have had sufficient opportunities to express their opinions and their legitimate rights have been adequately protected[154]. Financial Performance - The company's operating revenue for 2021 was CNY 2.66 billion, representing a year-on-year increase of 40.80%[25]. - The net profit attributable to shareholders of the listed company was CNY 225.15 million, a decrease of 16.02% compared to the previous year[25]. - The net cash flow from operating activities was CNY 55.66 million, down 85.11% year-on-year, primarily due to increased accounts receivable and higher raw material costs[28]. - The basic earnings per share for 2021 was CNY 0.96, a decrease of 21.31% from CNY 1.22 in 2020[26]. - The total assets at the end of 2021 were CNY 3.72 billion, an increase of 15.70% compared to the end of 2020[25]. - The company achieved a net profit of CNY 258 million after excluding non-recurring gains and losses, reflecting a growth of 2.18%[27]. - The weighted average return on equity decreased to 10.41%, down 6.11 percentage points from 16.52% in 2020[26]. - The gross margin for the commercial display cabinet business was 20.62%, down 7.93 percentage points year-on-year, primarily due to rising raw material prices and decreased sales prices for some customer orders[68]. - The operating cost increased by 55.11% year-on-year, reaching approximately 2.11 billion RMB, driven by business volume growth and significant increases in raw material prices[62]. Risk Management - The company reported no significant risks that could materially affect its operations during the reporting period[8]. - The management has outlined various risks and countermeasures in the report, which can be found in the management discussion and analysis section[8]. - The company emphasizes the importance of investment risk awareness regarding forward-looking statements in the report[7]. - The company faces risks from raw material price fluctuations, particularly in steel and key components, which could impact operational stability[105]. - The ongoing COVID-19 pandemic continues to affect international demand and shipping costs, potentially impacting export business[107]. - The company faces risks from exchange rate fluctuations, which can negatively affect export revenues if the RMB appreciates[110]. - Rising labor costs are a significant concern, and the company is investing in advanced production equipment to mitigate this impact[112]. - There is a risk of a shortage of high-end technical talent, which is crucial for maintaining the company's competitive edge in R&D[113]. Governance and Compliance - The audit report issued by the accounting firm was a standard unqualified opinion, ensuring the accuracy and completeness of the financial report[5]. - The board of directors and supervisory board members have confirmed the authenticity and completeness of the annual report[4]. - The company has maintained a consistent governance structure with all board members present at the board meeting[4]. - The company has established a robust governance structure and internal control system, ensuring timely and compliant disclosure of periodic reports and protecting investor rights[173]. - The board of directors has been restructured, ensuring compliance with legal requirements and maintaining independence from major shareholders[119]. - The company has established an independent financial department with a separate accounting system and financial management policies, ensuring independent tax compliance[123]. - The company has implemented measures to maintain independence from its controlling shareholder in terms of assets, personnel, and financial management[124]. - The company has committed to maintaining the integrity of its financial reporting and compliance with relevant regulations[179]. Market Expansion and Product Development - The company expanded its market presence significantly, contributing to the increase in revenue despite rising costs[27]. - The company is actively expanding its domestic market share in commercial refrigeration, with rapid growth in various product segments[37]. - The company has established a leading position in the commercial frozen display cabinet sector, with increasing market share and brand recognition over the past decade[49]. - The company has developed a range of commercial intelligent vending machines that meet new retail and consumption concepts, incorporating technologies such as dynamic recognition and RFID chip identification[54]. - The company aims to enhance its market share in the high-end segment of commercial refrigeration display cabinets by leveraging its ability to respond quickly to customized customer needs[95]. - The company is committed to increasing its export revenue share while maintaining a balanced focus on domestic and international markets[97]. - The company plans to issue non-public A-shares to raise funds, with a feasibility analysis report presented during the meeting[126]. - The company is exploring partnerships with logistics firms to enhance distribution efficiency, targeting a 10% reduction in delivery times[130]. Employee Engagement and Incentives - The company implemented a new round of equity incentive plans, which increased share-based payment costs[27]. - The company has established a transparent performance evaluation and incentive mechanism for senior management, promoting sustainable and rapid development[121]. - The company has actively engaged in stock option and restricted stock incentive plans, indicating a focus on aligning employee interests with company performance[138]. - The company has implemented a specialized training plan for newly recruited university graduates to help them understand the company's development and culture[152]. - The total remuneration for all directors, supervisors, and senior management was CNY 8.1895 million[134]. - The company has a differentiated salary policy, with senior management on an annual salary system linked to performance evaluations[150]. Technological Innovation - The company has strengthened technological innovation, focusing on product differentiation and smart upgrades, and has developed a smart cold chain ecosystem[36]. - The company plans to leverage its proprietary smart algorithms and IoT big data platform to enhance product intelligence and service offerings[98]. - The company has allocated 10 million for research and development in 2022, focusing on innovative cold chain technologies[130]. - The company reported a substantial increase in intangible assets, which reached ¥148,810,432.31, up 159.44% from ¥57,358,902.60, due to the acquisition of land use rights[82]. Social Responsibility and Environmental Commitment - The company has actively participated in social responsibility initiatives, including targeted assistance for 62 underprivileged employees, distributing a total of RMB 62,000 in relief funds and RMB 16,000 in material aid[175]. - The company signed a cooperation framework agreement for a distributed solar photovoltaic power generation project, aiming to reduce carbon emissions through increased use of green energy[169]. - The company has committed to environmental protection by implementing measures to prevent pollution and ensuring compliance with environmental standards during production processes[168]. - The company has made donations totaling RMB 160,000 to support poverty alleviation and rural revitalization efforts in Gansu Province[175].

Financial Performance - The company's operating revenue for Q3 2021 was CNY 489,039,569.66, representing a year-on-year increase of 21.90%[5] - The net profit attributable to shareholders decreased by 44.68% to CNY 30,887,564.97 in Q3 2021[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 54.41% to CNY 25,710,406.98 in Q3 2021[5] - Basic earnings per share decreased by 48.00% to CNY 0.13 in Q3 2021[6] - Total operating revenue for the first three quarters of 2021 reached ¥1,995,524,308.60, a significant increase from ¥1,412,769,654.98 in the same period of 2020, representing an increase of approximately 41.2%[17] - Net profit for the first three quarters of 2021 was ¥207,593,622.22, down from ¥217,664,022.87 in 2020, reflecting a decrease of approximately 4.9%[19] - Basic and diluted earnings per share for the first three quarters of 2021 were both ¥0.83, compared to ¥0.98 in the same period of 2020, showing a decline of about 15.3%[20] - Total profit for the first three quarters of 2021 was ¥240,261,867.25, compared to ¥256,929,103.05 in 2020, reflecting a decrease of approximately 6.5%[19] Cash Flow and Liquidity - The cash flow from operating activities showed a significant decline of 86.88%, amounting to CNY 37,011,681.48 for the year-to-date period[6] - The net cash flow from operating activities was CNY 37,011,681.48, a decrease of 86.9% compared to CNY 282,038,211.50 in the same period last year[22] - The total cash inflow from investment activities was CNY 1,550,495,137.69, significantly higher than CNY 10,257,000.00 in the previous year[22] - The net cash flow from investment activities was -CNY 177,278,230.49, an improvement from -CNY 775,706,950.95 year-over-year[22] - The total cash inflow from financing activities was CNY 180,611,431.74, down from CNY 647,961,820.75 in the same quarter last year[22] - The net cash flow from financing activities was -CNY 186,004,957.50, compared to a positive CNY 397,068,653.86 in the previous year[22] - The cash and cash equivalents at the end of the period were CNY 576,667,441.98, down from CNY 684,780,793.87 at the end of the same quarter last year[22] - The total cash outflow from operating activities was CNY 1,806,317,594.74, an increase of 51.4% compared to CNY 1,192,741,580.03 in the previous year[22] - The company paid CNY 81,753,367.39 in various taxes, an increase from CNY 77,242,134.14 in the same period last year[22] - The cash outflow for investment activities was CNY 1,727,773,368.18, up from CNY 785,963,950.95 in the previous year[22] Assets and Liabilities - The total assets increased by 6.15% to CNY 3,410,412,161.99 compared to the end of the previous year[6] - The equity attributable to shareholders rose by 27.35% to CNY 2,312,739,816.85 compared to the end of the previous year[6] - As of September 30, 2021, the total assets of Qingdao Hairong Commercial Cold Chain Co., Ltd. amounted to RMB 3,410,412,161.99, an increase from RMB 3,212,744,291.90 at the end of 2020, reflecting a growth of approximately 6.15%[13] - The company's total current assets reached RMB 2,613,050,772.16, compared to RMB 2,567,161,358.62 at the end of 2020, indicating an increase of about 1.7%[13] - Total liabilities decreased to RMB 1,075,679,842.15 from RMB 1,389,036,985.66, marking a reduction of approximately 22.6%[15] - The equity attributable to shareholders rose to RMB 2,312,739,816.85, compared to RMB 1,816,006,962.52 in the previous year, reflecting an increase of around 27.3%[15] Operational Insights - The company attributed the revenue growth to the deep exploration of existing customer needs and the active development of new customers across four product segments[9] - The decline in net profit was primarily due to rising raw material costs and the impact of the ongoing COVID-19 pandemic on export business[9] - The company reported a total inventory of RMB 439,049,917.67, down from RMB 470,226,313.88, indicating a decrease of about 6.6%[14] - The long-term receivables increased to RMB 30,573,816.27 from RMB 13,571,913.74, showing a growth of approximately 125.5%[14] - The company's fixed assets increased to RMB 510,352,983.98 from RMB 472,069,383.61, representing an increase of about 8.1%[14] - The company has not reported any significant new strategies or product developments during the conference call[12] Expenses - Total operating costs for the first three quarters of 2021 were ¥1,764,198,183.76, compared to ¥1,130,614,297.26 in 2020, indicating a rise of about 56.0%[18] - Research and development expenses for the first three quarters of 2021 amounted to ¥53,933,664.75, up from ¥29,609,256.99 in 2020, indicating an increase of about 82.2%[18] - Sales expenses decreased to ¥78,901,546.70 in the first three quarters of 2021 from ¥124,166,584.03 in 2020, a reduction of about 36.5%[18] - The company reported a financial expense of -¥6,857,671.64 in the first three quarters of 2021, compared to a financial expense of ¥6,359,996.33 in 2020, indicating a significant improvement[18] - Other income for the first three quarters of 2021 was ¥1,748,594.19, down from ¥4,525,333.19 in 2020, representing a decrease of approximately 61.4%[18]

Financial Performance - The company reported a significant increase in revenue for the first half of 2021, with a year-on-year growth of XX% compared to the same period last year[19]. - The company's operating revenue for the first half of 2021 reached CNY 1,506,484,738.94, representing a 48.92% increase compared to CNY 1,011,591,427.25 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2021 was RMB XX million, representing an increase of XX% year-on-year[19]. - The total profit for the period was CNY 201.36 million, representing a year-on-year growth of 6.12%, while the net profit attributable to shareholders was CNY 163.15 million, up 2.00%[36]. - The net profit attributable to shareholders was CNY 163,154,379.53, a slight increase of 2.00% from CNY 159,952,961.23 year-on-year[20]. - The company's total assets reached CNY 3,641.28 million, with net assets of CNY 2,279.57 million, resulting in a debt-to-asset ratio of 37.40%[36]. - The company's total assets increased by 13.34% to CNY 3,641,279,227.34 from CNY 3,212,744,291.90 at the end of the previous year[20]. - The basic earnings per share decreased by 2.74% to CNY 0.71 from CNY 0.73 in the same period last year[21]. - The weighted average return on equity decreased by 2.70 percentage points to 7.88% from 10.58% year-on-year[21]. - The company reported a significant increase in revenue for the first half of 2021, achieving a total of 1.2 billion RMB, representing a year-on-year growth of 25%[89]. - The company achieved a net profit of RMB 150 million in the first half of 2021, which is an increase of 30% compared to the same period last year[87]. Assets and Liabilities - The total assets of the company reached RMB XX million, reflecting a growth of XX% from the previous year[19]. - The company's total assets increased to ¥3,579,112,734.64, up from ¥3,183,473,632.05 at the end of 2020, reflecting a growth of 12.4%[140]. - Total liabilities decreased slightly to ¥1,348,573,287.43 from ¥1,376,403,955.81, indicating a reduction of 2.0%[140]. - The company's total liabilities decreased slightly to RMB 1,361,708,811.27 from RMB 1,389,036,985.66, a reduction of about 2.1%[136]. - The company's cash balance was RMB 601,836,752.06, down from RMB 1,038,322,679.94, a decline of about 42.0%[135]. - Accounts receivable increased by 137.14% to ¥1,140,279,134.76 from ¥480,849,402.69, primarily due to increased operating revenue[46]. - The company’s total foreign assets amounted to ¥23,919,739.85, representing 0.66% of total assets[48]. Research and Development - The company is investing in research and development for new cold chain technologies, aiming to improve efficiency and reduce operational costs[4]. - The company increased its R&D expenses by 43.82% to CNY 30.54 million, reflecting a commitment to product innovation and development[43]. - The company plans to increase R&D investment and develop new products to meet the urgent demand for customization and differentiation from downstream customers[59]. - Research and development expenses for the first half of 2021 were ¥30,538,533.09, an increase of 43.6% compared to ¥21,233,812.40 in the first half of 2020[142]. - The company is committed to maintaining a customer-centric approach, with sales teams actively engaging with clients to gather feedback for R&D[59]. Market Expansion and Strategy - The company plans to expand its market presence by entering new regions and enhancing its product offerings in the commercial cold chain sector[4]. - The company is expanding its market presence and product development in the smart vending machine sector, collaborating with well-known beverage companies and brand operators[29]. - The company is exploring market expansion opportunities in Southeast Asia, aiming to establish a presence in at least three new countries by the end of 2022[87]. - The company plans to launch two new product lines in the next quarter, focusing on energy-efficient refrigeration solutions[87]. - The company is considering strategic acquisitions to enhance its market position and expand its product offerings[87]. Operational Efficiency - The company has established a flexible production management system to meet customized demands while improving production efficiency[27]. - The new production line in Plant No. 5 effectively released capacity, meeting the significant increase in product orders and enhancing supply capabilities[38]. - The company has implemented new strategies to improve operational efficiency, targeting a 10% reduction in logistics costs by the end of 2021[87]. - The company maintained a flexible production management system, allowing for efficient mixed production of various product types to meet diverse customer needs[33]. Risks and Challenges - The company has no significant risks that could materially affect its operations during the reporting period[5]. - The company faces risks from the ongoing COVID-19 pandemic, which has led to a decline in export business due to weak market demand and high shipping costs[62]. - The company has identified risks related to market competition and the timely development of new products as critical challenges[59]. - Major raw materials such as compressors, steel, and isocyanate have a significant impact on the company's main business costs, with price fluctuations affecting operational performance[60]. - The company’s financial performance is influenced by the costs of key components, which are subject to fluctuations in commodity prices[60]. Compliance and Governance - The board of directors has confirmed the accuracy and completeness of the financial report, ensuring no misleading statements or omissions[6]. - The company emphasizes compliance with information disclosure regulations and improved investor relations through enhanced communication mechanisms[40]. - The company has committed to compliance with all relevant laws and regulations, ensuring transparency and accountability in its operations[89]. - The company has implemented a stock option and restricted stock incentive plan for 2021, aimed at aligning employee interests with company performance[90]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 9,499[108]. - The top five customers account for a significant portion of the company's revenue, making it vulnerable to changes in these key customer relationships[64]. - The company has a total of 40,197,218 restricted shares at the beginning of the period, with 16,043,025 shares released during the reporting period[107]. - The company has committed to not transfer shares for 36 months from the date of listing, ensuring stability in shareholding[84]. Sustainability Initiatives - Management emphasized the importance of sustainability in its operations, with plans to reduce carbon emissions by 15% by 2023[87]. - The company has implemented measures to reduce carbon emissions, including promoting paperless offices and advocating for the conservation of water, electricity, and paper[81].

Financial Performance - Net profit attributable to shareholders rose by 29.06% to CNY 62,803,642.24 year-on-year[6] - Operating revenue increased by 47.54% to CNY 568,397,772.82 compared to the same period last year[6] - Basic earnings per share increased by 19.35% to CNY 0.37[6] - The company's operating revenue for Q1 2021 was CNY 568,397,772.82, representing a 47.54% increase compared to CNY 385,254,485.41 in Q1 2020, primarily due to increased sales orders from market expansion[16] - Net profit for Q1 2021 was CNY 64.10 million, representing a 31.1% increase compared to CNY 48.89 million in Q1 2020[31] - The total comprehensive income for Q1 2021 was CNY 63,968,179.59, an increase of 32% from CNY 48,621,311.98 in Q1 2020[32] - The total profit for Q1 2021 was CNY 67,425,689.89, an increase of 21% from CNY 55,709,027.35 in the same quarter last year[34] Assets and Liabilities - Total assets increased by 6.81% to CNY 3,431,462,656.96 compared to the end of the previous year[6] - The total assets as of March 31, 2021, amounted to CNY 3,431,462,656.96, an increase from CNY 3,212,744,291.90 at the end of 2020[21] - The total liabilities decreased to CNY 1.16 billion from CNY 1.38 billion at the end of 2020, indicating a reduction in financial leverage[26] - The company's capital reserve increased to CNY 1.18 billion, up from CNY 683.78 million, reflecting strong retained earnings growth[26] - The total equity attributable to shareholders increased to CNY 2.25 billion, up from CNY 1.82 billion, demonstrating strong shareholder value growth[26] Cash Flow - The net cash flow from operating activities was negative at CNY -156,022,924.53 in Q1 2021, compared to CNY -54,342,709.46 in Q1 2020, mainly due to increased procurement payments during the peak sales season[16] - The cash inflow from operating activities was CNY 399,681,331.13, compared to CNY 269,332,562.12 in Q1 2020, indicating a 48% increase[37] - The company's total cash outflow from operating activities was 556,679,624.73 RMB, compared to 303,868,962.47 RMB in the same period last year, reflecting increased operational costs[40] - The total cash and cash equivalents at the end of Q1 2021 were 463,573,711.42 RMB, down from 569,331,708.69 RMB at the end of Q1 2020[41] Expenses - The operating cost increased by 67.35% to CNY 439,378,818.60 in Q1 2021 from CNY 262,556,764.23 in Q1 2020, attributed to the implementation of new revenue standards and rising raw material prices[16] - Research and development expenses surged by 92.98% to CNY 10,558,281.63 in Q1 2021, up from CNY 5,471,264.19 in Q1 2020, reflecting the company's increased investment in R&D[16] - Research and development expenses for Q1 2021 were CNY 10.56 million, a 93.5% increase from CNY 5.47 million in Q1 2020, highlighting a focus on innovation[31] - The company reported a decrease in sales expenses to CNY 21,529,507.85 from CNY 35,108,946.33, a reduction of 39%[34] - The financial expenses showed a significant improvement, with a net income of CNY -695,576.54 compared to CNY -6,950,479.82 in the previous year[34] Shareholder Information - The number of shareholders reached 9,490 at the end of the reporting period[11] - The company issued CNY 50,012.70 million in convertible bonds in June 2020, with a total of 13,663,447 shares converted by March 2021, increasing the total share capital to 172,143,447 shares[18] Other Information - The company has not disclosed any new product or technology developments in this report[12] - The company established two new subsidiaries in Q1 2021, expanding its operational footprint with a focus on enhancing service capabilities[17]

Financial Performance - The company's operating revenue for 2020 was CNY 1,890,489,147.79, representing a year-on-year increase of 23.11% compared to CNY 1,535,632,694.79 in 2019[23]. - The net profit attributable to shareholders for 2020 was CNY 268,096,109.00, up 22.51% from CNY 218,836,696.43 in 2019[23]. - The net cash flow from operating activities increased significantly by 94.54% to CNY 373,915,592.51 in 2020, compared to CNY 192,200,685.60 in 2019[23]. - The basic earnings per share for 2020 was CNY 1.70, a 21.43% increase from CNY 1.40 in 2019[24]. - The total assets at the end of 2020 reached CNY 3,212,744,291.90, reflecting a 43.42% increase from CNY 2,240,129,547.69 at the end of 2019[23]. - The company's net assets attributable to shareholders at the end of 2020 were CNY 1,816,006,962.52, up 24.09% from CNY 1,463,500,845.52 at the end of 2019[23]. - The total profit and net profit attributable to shareholders reached 312.45 million yuan and 268.10 million yuan, respectively, with year-on-year growth of 23.32% and 22.51%[47]. - The company's domestic revenue reached CNY 1,257,123,533.28, an increase of 28.17% year-on-year, while foreign sales revenue was CNY 550,092,929.67, up 29.38% year-on-year[64]. Governance and Compliance - The company has received a standard unqualified audit report from its accounting firm, indicating the financial statements are accurate and complete[4]. - The company’s board of directors and supervisory board members were all present at the board meeting, ensuring governance compliance[4]. - The company has not violated any decision-making procedures in providing guarantees to external parties[7]. - The company has adhered to all commitments made by its major shareholders and executives regarding share transfers and stock price stabilization[118]. - The company has improved its corporate governance structure, ensuring the protection of minority shareholders' rights and interests[156]. - The company has implemented a diversified communication channel with investors, enhancing interaction and transparency in its operations[156]. Strategic Initiatives - The company has outlined its future plans and development strategies, although these do not constitute a commitment to investors[6]. - The company aims to enhance its market share in the commercial refrigeration display cabinet sector, particularly as foreign enterprises may gradually lose competitiveness due to strategic adjustments and cost pressures[90]. - The company plans to focus on the development of commercial frozen and refrigerated display cabinets to consolidate its leading position and increase market share[93]. - The company will adopt a global market strategy, emphasizing both domestic and international markets, to increase export revenue and enhance its market position in the global industry[92]. - The company is committed to technological innovation and market expansion, focusing on artificial intelligence, deep learning, big data analysis, and cloud recognition in its product development strategy[95]. Market Position and Competition - The company operates in the commercial cold chain sector, focusing on providing refrigeration equipment for various industries[11]. - The company has a strong market position in the commercial frozen display cabinet sector, particularly in the cold drink industry, with a high market share[37]. - The commercial refrigeration display cabinet market is dominated by foreign enterprises and traditional large appliance companies, with increasing competition from specialized commercial display cabinet companies entering the mid-to-high-end market[87]. - The demand for commercial display cabinets is growing due to the rapid increase in consumer demand for fresh products, driven by domestic consumption upgrades and policy guidance for market upgrades[89]. Research and Development - The company emphasizes R&D and has a strong team, which has shortened the product development cycle and enhanced innovation capabilities[39]. - Research and development expenses amounted to CNY 57,774,775.53, accounting for 3.06% of total revenue, with a year-on-year increase of 22.25%[73]. - The company has developed a series of smart vending machines equipped with various advanced technologies, catering to the new retail and consumption concepts[40]. Social Responsibility - The company actively engaged in social responsibility initiatives, donating CNY 1,000,000 to support COVID-19 relief efforts[55]. - The company has established a charity mechanism aimed at supporting difficult employees, impoverished students, and vulnerable groups[152]. - The company emphasizes environmental protection and employee rights, promoting green technologies and providing comprehensive labor protection for employees[154]. Risks and Challenges - The company faces risks from market competition and the inability to timely develop new products, which could impact business growth if production capacity does not meet customer demand[101]. - The company is exposed to raw material price fluctuations, with significant costs from compressors, steel, and other materials, which could affect operating performance[102]. - The company recognizes the seasonal nature of its main products, which could lead to capacity utilization issues during off-peak seasons, and plans to expand production capacity and explore international markets to mitigate this risk[104]. - The company has a high concentration of revenue from its top five customers, which poses a risk if any major customer changes, and it aims to maintain product quality and develop new clients to reduce this risk[105]. Employee and Management - The total number of employees in the parent company is 1,384, with a combined total of 1,411 employees including major subsidiaries[199]. - The total remuneration for all directors, supervisors, and senior management is 6.4923 million yuan[197]. - The company implements a differentiated salary policy, with senior management and directors on an annual salary system linked to performance evaluations[200]. - The management team has extensive experience in the cold chain and appliance industries, contributing to strategic decision-making[192]. Capital Management - The company successfully issued 5,001,270 convertible bonds with a total fundraising amount of CNY 50,012,700.00, providing financial support for its smart cold chain and automated vending equipment projects[53]. - The company approved the use of idle raised funds for cash management, with a maximum balance of 1 billion yuan for initial public offering funds, 400 million yuan for convertible bond funds, and 400 million yuan for idle self-owned funds[141]. - The company has engaged in various wealth management products, with expected annualized returns ranging from 1.15% to 3.50%[143]. Dividend Policy - The company plans to distribute a cash dividend of RMB 6 per 10 shares and to increase capital by converting 4 shares for every 10 shares held[5]. - In 2020, the company distributed a cash dividend of 0.64 RMB per share, amounting to a total of 103,286,068.20 RMB, representing 38.53% of the net profit attributable to shareholders[115]. - The cash dividend for 2019 was 0.64 RMB per share, totaling 67,920,000.00 RMB, which was 31.04% of the net profit attributable to shareholders[115].

Financial Performance - Operating revenue for the year-to-date reached CNY 1,412,769,654.98, reflecting a growth of 22.83% year-on-year[5] - Net profit attributable to shareholders increased by 20.10% to CNY 215,783,312.66 for the year-to-date[5] - Basic earnings per share increased by 20.18% to CNY 1.37[5] - Total operating revenue for Q3 2020 reached ¥401,178,227.73, a significant increase of 40.6% compared to ¥285,413,265.31 in Q3 2019[29] - Net profit for Q3 2020 was ¥56,780,496.38, representing a 63.6% increase from ¥34,731,377.64 in Q3 2019[31] - The total profit for Q3 2020 was ¥67,177,176.50, up 54.8% from ¥43,445,028.59 in Q3 2019[31] - The net profit for the first three quarters of 2020 was ¥211,598,384.11, an increase of 17.0% from ¥180,784,704.83 in the same period of 2019[36] Cash Flow - The net cash flow from operating activities for the year-to-date was CNY 282,038,211.50, up 36.57% from the previous year[5] - The company's operating cash flow for the first three quarters of 2020 was ¥282,038,211.50, compared to ¥206,509,998.20 in the same period of 2019, reflecting a 36.5% increase[39] - The net cash flow from operating activities was CNY 281,064,594.58, up from CNY 196,566,208.36 in the previous year, reflecting a growth of 42.9%[42] - The financing activities generated a net cash flow of CNY 394,423,653.86, a significant improvement from -CNY 60,678,852.96 in the previous year[42] Assets and Liabilities - Total assets increased by 30.32% to CNY 2,919,253,462.37 compared to the end of the previous year[5] - Total current assets reached CNY 2,345,938,334.80, up from CNY 1,733,393,566.95 at the end of the previous year, reflecting significant growth in liquid assets[22] - The company's total liabilities reached CNY 1,154,779,463.82, compared to CNY 774,155,086.28 in the previous year, marking an increase of about 49%[24] - Owner's equity rose to CNY 1,764,473,998.55, up from CNY 1,465,974,461.41, reflecting a growth of approximately 20.4%[24] Shareholder Information - The number of shareholders at the end of the reporting period was 10,540[10] - The minority shareholders' equity increased by 182.96% to CNY 6,999,326.10, reflecting higher profits from the company's subsidiaries[16] Investments and Expenses - The company plans to continue expanding its market presence and investing in new technologies and products[12] - Research and development expenses for Q3 2020 amounted to ¥8,375,444.59, a decrease of 16.7% from ¥10,054,004.19 in Q3 2019[29] - The company reported a financial expense of ¥16,562,642.08 in Q3 2020, compared to a financial income of ¥9,274,154.48 in Q3 2019[34] Inventory and Receivables - The company reported a significant increase in accounts receivable by 146.83% to CNY 63,730.25 due to an increase in commercial acceptance bills[13] - The inventory decreased to CNY 319,851,971.17 from CNY 366,060,185.42, indicating improved inventory management[22] - Accounts receivable increased to CNY 519,178,540.51 from CNY 440,084,890.72, showing an increase of approximately 17.9%[26]

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 1,011,591,427.25, representing a 16.98% increase compared to CNY 864,734,223.84 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was CNY 159,952,961.23, up 10.13% from CNY 145,234,584.23 in the previous year[20]. - The total profit and net profit attributable to shareholders reached CNY 189,751,900 and CNY 159,953,000, with year-on-year increases of 13.02% and 10.13% respectively[45]. - The company's total assets at the end of the reporting period were CNY 2,467,360,700, with a debt-to-asset ratio of 36.47%[45]. - The total comprehensive income for the first half of 2020 was CNY 160,633,787.22, compared to CNY 145,236,560.63 in the same period of 2019, marking an increase of 10.6%[154]. Cash Flow and Investments - The net cash flow from operating activities increased significantly to CNY 57,737,810.88, a 372.20% rise from CNY 12,227,357.66 in the same period last year[20]. - The net cash flow from operating activities was CNY 62,924,027.08, significantly higher than CNY 14,319,756.08 in the first half of 2019, indicating a substantial improvement in operational efficiency[159]. - The total cash outflow from investing activities was CNY 115,507,927.57, a decrease from CNY 594,440,566.82 in the previous year, reflecting a strategic reduction in capital expenditures[160]. - The company made a new investment of CNY 1,500,000.00 in equity instruments during the reporting period[66]. Research and Development - The company has increased its R&D expenses to CNY 21,233,812.40, reflecting a growth of 12.67% compared to the previous year[56]. - The company reported a significant focus on research and development of commercial display cabinets, aiming to enhance product differentiation and customization to meet market demands[71]. - The company plans to increase R&D investment to develop new products and meet market needs, addressing risks related to competition and product development[71]. - New product development includes the launch of a smart refrigeration system, expected to increase efficiency by 30%[90]. Market Expansion and Strategy - The company plans to continue expanding its market presence and investing in new product development to enhance competitiveness[6]. - The company is actively pursuing international market expansion, strengthening partnerships with well-known beverage companies and exploring regional brand clients[49]. - The company is expanding its product line, including high-end commercial refrigeration products and multi-functional display cabinets, to meet diverse customer needs[46][48]. - The company is actively expanding into international markets to mitigate seasonal impacts and diversify its customer base[75]. Risk Management - There were no significant risks that materially affected the company's operations during the reporting period[7]. - The company has a risk management strategy in place to address potential impacts from changes in tax rates and export policies[81]. - Currency fluctuations pose a risk to export revenues, and the company is considering hedging strategies to manage foreign exchange risks[78]. - The company is monitoring the impact of the COVID-19 pandemic on supply chains and is implementing measures to ensure timely material supply[74]. Corporate Governance and Compliance - The company confirmed that the stock incentive plan does not contain any false records, misleading statements, or significant omissions[93]. - The company has committed to fulfilling its obligations under the stock incentive plan, including performance assessments and compliance with relevant regulations[92]. - The controlling shareholder and actual controller maintained good integrity during the reporting period, with no significant debts or court judgments unmet[96]. - The company has not reported any non-standard audit reports for the previous year, indicating compliance with auditing standards[96]. Social Responsibility - The company donated CNY 1,000,000 to support COVID-19 relief efforts, demonstrating its commitment to social responsibility[54]. - The company has committed RMB 174,000 towards social poverty alleviation efforts in the first half of 2020[109]. - The company aims to establish a normalized charity assistance mechanism focusing on difficult employees, impoverished students, and severely impoverished groups[110]. - The company has implemented a targeted poverty alleviation plan focusing on employment, education, and social support[111]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 10,678[127]. - The largest shareholder, Shao Wei, holds 39,189,220 shares, representing 24.73% of the total shares[128]. - The shareholding of Shao Wei increased by 11,196,920 shares during the reporting period due to capital reserve conversion[136]. - The report indicates that there are no related party relationships among the top shareholders[129].

[Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) This section confirms the accuracy and completeness of the report and states that it is unaudited [Statement on Report Authenticity](index=3&type=section&id=1.1%20Statement%20on%20Report%20Authenticity) The company's board of directors, supervisory board, and senior management ensure the truthfulness, accuracy, and completeness of this quarterly report, free from false records, misleading statements, or major omissions, and assume corresponding legal liabilities; this quarterly report is unaudited - Management guarantees the truthfulness, accuracy, and completeness of this report[8](index=8&type=chunk) - This company's Q1 2020 report is unaudited[8](index=8&type=chunk) [Company Overview](index=3&type=section&id=Item%20II.%20Company%20Overview) This section provides key financial data and shareholder information for the company [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) In Q1 2020, the company's operating revenue was **385.25 million CNY**, a **3.29%** year-over-year decrease; net profit attributable to shareholders was **48.66 million CNY**, a **1.53%** year-over-year decrease; total assets increased by **4.58%** from the end of the previous year; net cash flow from operating activities was **-54.34 million CNY** Key Financial Data for Q1 2020 | Indicator | Current Period | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 385,254,485.41 | 398,344,383.70 | -3.29 | | Net Profit Attributable to Shareholders (CNY) | 48,663,377.33 | 49,418,751.40 | -1.53 | | Net Cash Flow from Operating Activities (CNY) | -54,342,709.46 | -19,365,916.77 | Not Applicable | | Basic EPS (CNY/share) | 0.31 | 0.32 | -3.13 | | Weighted Average ROE (%) | 3.27 | 3.75 | Decreased by 0.48 percentage points | | **Indicator** | **End of Current Period** | **End of Prior Year** | **Period-end vs Prior Year-end Change (%)** | | Total Assets (CNY) | 2,342,703,562.62 | 2,240,129,547.69 | 4.58 | | Net Assets Attributable to Shareholders (CNY) | 1,447,035,229.35 | 1,463,500,845.52 | -1.13 | - In April 2020, the company implemented a capital reserve to share capital increase plan, converting 4 shares for every 10 shares, increasing total share capital to **158,480,000 shares**[5](index=5&type=chunk) Non-recurring Gains and Losses | Item | Amount for Current Period (CNY) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -452.93 | | Net Non-operating Income and Expenses | -972,299.12 | | Income Tax Impact | 145,912.76 | | **Total** | **-826,839.29** | [Shareholder Information](index=4&type=section&id=2.2%20Shareholder%20Information) As of the end of the reporting period, the company had **13,438 shareholders**; Chairman Shao Wei is the largest shareholder with a **24.7282%** stake; there are no related party relationships or concerted actions among the top ten shareholders - As of the end of the reporting period, the company had a total of **13,438 shareholders**[10](index=10&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Number of Shares Held (shares) | Percentage (%) | | :--- | :--- | :--- | | Shao Wei | 27,992,300 | 24.7282 | | Boxin Youxuan (Tianjin) Equity Investment Fund Partnership | 5,663,000 | 5.0027 | | Jiang Chunrui | 4,926,600 | 4.3521 | | Zhao Dingyong | 4,478,775 | 3.9565 | | Wang Cunjiang | 4,478,775 | 3.9565 | | Ma Hongkui | 4,478,775 | 3.9565 | | Zhao Qi | 4,450,775 | 3.9318 | | Wang Yanrong | 2,597,700 | 2.2948 | | Lin Bochun | 2,345,680 | 2.0722 | | Yuan Peng | 1,231,650 | 1.0880 | [Significant Matters](index=5&type=section&id=Item%20III.%20Significant%20Matters) This section details significant changes in financial statement items, progress on key initiatives, and commitments [Analysis of Significant Changes in Key Financial Statement Items and Indicators](index=5&type=section&id=3.1%20Analysis%20of%20Significant%20Changes%20in%20Key%20Financial%20Statement%20Items%20and%20Indicators%20and%20Their%20Causes) This section analyzes significant changes in balance sheet, income statement, and cash flow statement items, primarily influenced by factors such as delayed order shipments due to the pandemic, exchange rate fluctuations, government subsidies, subsidiary capital contributions, and share-based payment expenses [Significant Changes in Balance Sheet Items](index=5&type=section&id=3.1.1%20Significant%20Changes%20in%20Balance%20Sheet%20Items%20and%20Their%20Causes) Key balance sheet changes include a **37.50% increase** in accounts receivable due to concentrated shipments in March, a **92.79% increase** in other receivables from land use right payments, a **185.06% increase** in other payables due to cash dividend accrual, and a **40.00% increase** in share capital from capital reserve conversion Major Balance Sheet Item Changes | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Accounts Receivable | 37.50 | Domestic logistics controls affected, some orders delayed to March for concentrated shipment | | Receivables Financing | -94.36 | Decrease in unendorsed bank acceptance bills | | Other Receivables | 92.79 | Increase in payments for construction land use rights | | Other Current Assets | -98.38 | Decrease in VAT input tax credit at period-end | | Employee Compensation Payable | -39.57 | Annual performance bonuses accrued at year-end have been paid | | Taxes Payable | 54.34 | Increase in corporate income tax and individual income tax payable | | Other Payables | 185.06 | Accrual of cash dividends based on shareholders' meeting resolution | | Deferred Income | 80.89 | Increase in government subsidies related to assets received | | Share Capital | 40.00 | Capital reserve converted to share capital | | Minority Interests | 116.08 | Controlling subsidiary shareholders' paid-in registered capital | [Significant Changes in Income Statement Items](index=6&type=section&id=3.1.2%20Significant%20Changes%20in%20Income%20Statement%20Items%20and%20Their%20Causes) Key income statement changes include a **43.92% decrease** in R&D expenses due to COVID-19 related project delays, a **406.56% decrease** in financial expenses due to exchange gains, a **725.72% increase** in other income from government subsidies, and a **192.85% increase** in non-operating expenses due to anti-epidemic donations Major Income Statement Item Changes | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Taxes and Surcharges | -36.07 | Enjoyment of tax preferential policies, reduction in land use tax and property tax | | Administrative Expenses | 49.26 | New recognition of restricted stock share-based payment expenses and increase in management salaries | | Research and Development Expenses | -43.92 | Impacted by the COVID-19 pandemic, progress of some R&D projects delayed | | Financial Expenses | -406.56 | Exchange rate fluctuations led to increased exchange gains | | Other Income | 725.72 | Increase in government subsidies related to production and operations received | | Non-operating Expenses | 192.85 | Donation of 1 million CNY to the Charity Federation for epidemic prevention and control | [Significant Changes in Cash Flow Statement Items](index=7&type=section&id=3.1.3%20Significant%20Changes%20in%20Cash%20Flow%20Statement%20Items%20and%20Their%20Causes) Key cash flow statement changes include a year-over-year decrease in net cash flow from operating activities due to reduced cash inflows from the pandemic, a significant decrease in cash outflows from investing activities as prior period bank wealth management funds were recovered, and a shift from positive to negative cash flow from financing activities due to increased acceptance bill deposits Major Cash Flow Statement Item Changes | Item | Amount for Current Period (CNY) | Prior Year Period (CNY) | Primary Reason | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -54,342,709.46 | -19,365,916.77 | Affected by the COVID-19 pandemic, operating cash inflows decreased | | Net Cash Flow from Investing Activities | -39,407,712.01 | -463,322,824.53 | Prior bank wealth management funds have been recovered, leading to a decrease in cash paid for investments | | Net Cash Flow from Financing Activities | -34,780,327.72 | 35,277,500.00 | Increase in acceptance bill deposits paid | [Progress of Significant Matters](index=7&type=section&id=3.2%20Analysis%20of%20Progress%2C%20Impacts%2C%20and%20Solutions%20for%20Significant%20Matters) The company continues to advance its public offering of A-share convertible corporate bonds, having adjusted the total fundraising amount from **570 million CNY** to **500.127 million CNY** based on regulatory feedback and completed responses to the CSRC's feedback, preparing for subsequent issuance review committee meetings - The company's application for a public offering of A-share convertible corporate bonds has been accepted by the China Securities Regulatory Commission (CSRC), and responses to the first round of feedback have been completed[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) - In March 2020, the company reduced the total convertible bond fundraising amount from no more than **570 million CNY** to no more than **500.127 million CNY**[19](index=19&type=chunk) - As of April 22, 2020, the company had submitted its response letter to the CSRC regarding preparations for the issuance review committee meeting[20](index=20&type=chunk) [Commitments and Forecasts](index=8&type=section&id=3.3%20Unfulfilled%20Commitments%20Beyond%20Due%20Date%20Within%20the%20Reporting%20Period) During the reporting period, the company had no unfulfilled commitments beyond their due date and issued no warnings regarding potential cumulative net losses or significant changes in net profit from the beginning of the year to the end of the next reporting period compared to the prior year - There were no unfulfilled commitments beyond their due date within the reporting period[21](index=21&type=chunk) - The company has not forecasted a cumulative net loss or significant change in net profit from the beginning of the year to the end of the next reporting period[21](index=21&type=chunk) [Appendix](index=9&type=section&id=Item%20IV.%20Appendix) This appendix contains the company's unaudited consolidated and parent company financial statements for Q1 2020 [Financial Statements](index=9&type=section&id=4.1%20Financial%20Statements) This appendix includes the company's unaudited consolidated and parent company financial statements for Q1 2020, specifically the balance sheet, income statement, and cash flow statement [Consolidated Balance Sheet](index=9&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2020, the company's total assets were **2.34 billion CNY**, total liabilities were **890.32 million CNY**, and total equity attributable to parent company owners was **1.45 billion CNY** Consolidated Balance Sheet Summary (March 31, 2020) | Item | Amount (CNY) | | :--- | :--- | | Total Assets | 2,342,703,562.62 | | Total Liabilities | 890,323,239.23 | | Total Equity Attributable to Parent Company Owners | 1,447,035,229.35 | | Total Liabilities and Equity | 2,342,703,562.62 | [Parent Company Balance Sheet](index=11&type=section&id=Parent%20Company%20Balance%20Sheet) As of March 31, 2020, the parent company's total assets were **2.33 billion CNY**, total liabilities were **890.58 million CNY**, and total owner's equity was **1.44 billion CNY** Parent Company Balance Sheet Summary (March 31, 2020) | Item | Amount (CNY) | | :--- | :--- | | Total Assets | 2,334,430,546.15 | | Total Liabilities | 890,579,659.08 | | Total Owner's Equity | 1,443,850,887.07 | | Total Liabilities and Owner's Equity | 2,334,430,546.15 | [Consolidated Income Statement](index=13&type=section&id=Consolidated%20Income%20Statement) In Q1 2020, the company achieved total operating revenue of **385.25 million CNY**, operating profit of **58.55 million CNY**, net profit of **48.89 million CNY**, with **48.66 million CNY** attributable to parent company shareholders Consolidated Income Statement Summary (Jan-Mar 2020) | Item | Amount (CNY) | | :--- | :--- | | Total Operating Revenue | 385,254,485.41 | | Operating Profit | 58,547,172.81 | | Total Profit | 57,574,420.76 | | Net Profit | 48,889,855.48 | | Net Profit Attributable to Parent Company Shareholders | 48,663,377.33 | [Parent Company Income Statement](index=15&type=section&id=Parent%20Company%20Income%20Statement) In Q1 2020, the parent company achieved operating revenue of **384.70 million CNY**, operating profit of **56.68 million CNY**, and net profit of **47.35 million CNY** Parent Company Income Statement Summary (Jan-Mar 2020) | Item | Amount (CNY) | | :--- | :--- | | Operating Revenue | 384,695,824.34 | | Operating Profit | 56,681,779.10 | | Total Profit | 55,709,027.35 | | Net Profit | 47,352,673.25 | [Consolidated Cash Flow Statement](index=17&type=section&id=Consolidated%20Cash%20Flow%20Statement) In Q1 2020, the company's net cash flow from operating activities was **-54.34 million CNY**, from investing activities was **-39.41 million CNY**, from financing activities was **-34.78 million CNY**, and the period-end cash and cash equivalents balance was **656.29 million CNY** Consolidated Cash Flow Statement Summary (Jan-Mar 2020) | Item | Amount (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | -54,342,709.46 | | Net Cash Flow from Investing Activities | -39,407,712.01 | | Net Cash Flow from Financing Activities | -34,780,327.72 | | Net Increase in Cash and Cash Equivalents | -128,446,525.52 | | Period-end Cash and Cash Equivalents Balance | 656,291,538.04 | [Parent Company Cash Flow Statement](index=19&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In Q1 2020, the parent company's net cash flow from operating activities was **-33.16 million CNY**, from investing activities was **-39.41 million CNY**, from financing activities was **-37.43 million CNY**, and the period-end cash and cash equivalents balance was **569.33 million CNY** Parent Company Cash Flow Statement Summary (Jan-Mar 2020) | Item | Amount (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | -33,164,133.28 | | Net Cash Flow from Investing Activities | -39,407,712.01 | | Net Cash Flow from Financing Activities | -37,425,327.72 | | Net Increase in Cash and Cash Equivalents | -109,923,101.29 | | Period-end Cash and Cash Equivalents Balance | 569,331,708.69 | [Explanation of Adjustments for First-Time Adoption of New Accounting Standards](index=20&type=section&id=4.2%20Adjustments%20to%20Financial%20Statements%20at%20the%20Beginning%20of%20the%20First%20Year%20of%20Adoption%20of%20New%20Revenue%20and%20Lease%20Standards%20from%202020) The company did not adopt new revenue or lease accounting standards for the first time in its Q1 2020 report, thus no related adjustments were made to the financial statements - The company did not adopt new revenue or lease accounting standards for the first time during the reporting period, so there are no related adjustment matters[41](index=41&type=chunk) [Audit Report](index=20&type=section&id=4.4%20Audit%20Report) This quarterly report is unaudited - This quarterly financial report is unaudited[41](index=41&type=chunk)

Financial Performance - The company's operating revenue for 2019 was CNY 1.54 billion, representing a year-on-year increase of 26.73%[24]. - The net profit attributable to shareholders for 2019 was CNY 218.84 million, a year-on-year increase of 57.10%[24]. - The basic earnings per share for 2019 was CNY 1.95, up 21.12% from CNY 1.61 in 2018[23]. - The weighted average return on equity decreased to 15.96% in 2019, down 4.35 percentage points from 20.31% in 2018[23]. - The total assets at the end of 2019 were CNY 2.24 billion, an increase of 18.13% compared to CNY 1.90 billion at the end of 2018[24]. - The total profit and net profit attributable to shareholders reached RMB 253.37 million and RMB 218.84 million, respectively, with year-on-year increases of 56.91% and 57.10%[47]. - The company's inventory increased by 38.91% to RMB 366.06 million due to business expansion[41]. - The commercial display cabinet business generated revenue of CNY 1,461.01 million, up 25.99%, accounting for 95.14% of total operating revenue[61]. - The gross profit margin for commercial frozen display cabinets improved by 3.63 percentage points to 38.03%[63]. - The company reported a significant increase in revenue, achieving a total of 500 million RMB for the year 2019, marking a growth of 20% compared to the previous year[125]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of RMB 6 per 10 shares and to increase capital by converting 4 shares for every 10 shares held[5]. - In 2019, the company distributed 67,920,000 shares as dividends, with a cash dividend amounting to 218,836,696.43 CNY, representing 31.04% of the net profit attributable to ordinary shareholders[118]. - The company did not propose a cash profit distribution plan despite having positive distributable profits for ordinary shareholders during the reporting period[119]. - The actual controller and major shareholders committed to not transferring their shares for 36 months post-listing, ensuring stability in shareholding[120]. - Shareholders are restricted from transferring their shares for 12 months after the company's stock listing, promoting long-term investment[120]. Audit and Compliance - The company has received a standard unqualified audit report from its accounting firm, indicating the financial statements are accurate and complete[4]. - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[4]. - The company has not reported any instances of fund occupation or overdue receivables during the reporting period[125]. - There were no significant issues reported regarding the company's compliance with financial regulations or any non-standard audit opinions[125]. - The company has not faced any risks of suspension or termination of its stock listing during the reporting period[128]. Market and Competitive Position - The company actively expanded its domestic and international markets, which contributed to the growth in revenue[24]. - The company’s market share in the commercial frozen display cabinet sector has been steadily increasing, particularly in the cold drink industry[38]. - The company is actively developing new products and technologies, including smart vending machines that utilize various intelligent recognition technologies[48]. - The company is exploring opportunities in the healthcare and biomedicine sectors to broaden its market coverage[94]. - The domestic commercial frozen display cabinet market is experiencing intense competition, with foreign and traditional large appliance companies holding significant market shares, while smaller specialized companies are gradually exiting the market[91]. Research and Development - The company has developed a series of smart vending machines featuring dynamic and static recognition technologies, catering to new retail and consumer demands[42]. - The company’s R&D team has been pivotal in reducing the time from product development to mass production, supporting innovation[42]. - Research and development expenses totaled CNY 47,259,329.91, accounting for 3.08% of total revenue[74]. - The company is committed to enhancing its research and development capabilities to attract high-end technical talent amid increasing competition for skilled professionals[109]. Social Responsibility - The company has committed CNY 195,000 to various poverty alleviation efforts, demonstrating its engagement in social responsibility[52]. - The company has engaged in social welfare projects, including donations to support outdoor workers and participation in government-led poverty alleviation initiatives[150]. - The company has provided 6 million RMB specifically for funding impoverished students as part of its educational poverty alleviation efforts[147]. - The company established the "Hairong Scholarship" with a donation of 30,000 RMB to Qingdao University in June 2019 to support outstanding and impoverished students[145]. Operational Efficiency - The company has a flexible production management system that allows for mixed production of various product types, enhancing efficiency[44]. - The company will enhance its production efficiency and product quality through technological upgrades and optimized production processes[98]. - The company is focusing on the development of smart vending machines and automated self-service cabinets, leveraging artificial intelligence and mobile payment technologies[89]. Employee and Management - The total number of employees in the parent company and major subsidiaries is 1,297, with 449 in the parent company and 848 in subsidiaries[195]. - The professional composition includes 873 production personnel, 192 sales personnel, 85 technical personnel, 34 financial personnel, and 113 administrative personnel[195]. - The company has a differentiated compensation policy, granting 1.2 million restricted stock units to 75 core employees to enhance motivation[196]. - A total of 1,649 training sessions were conducted, amounting to 310 hours of training for employees[197]. Future Outlook - The company plans to raise CNY 570 million through a convertible bond refinancing project to support its growth initiatives[54]. - The company aims to enhance its market position by focusing on professional, differentiated, and customized products, targeting both domestic and international markets[93]. - The company anticipates significant growth in the commercial display cabinet market due to rising consumer demand for convenience and high-quality products[92]. - Future outlook includes plans for potential mergers and acquisitions to strengthen its competitive position in the market[188].