Financial Performance - The company reported a total revenue of 500 million CNY for the first half of 2022, representing a 15% increase compared to the same period last year[2]. - The company's operating revenue for the first half of 2022 was CNY 427,946,010.91, representing a 21.19% increase compared to CNY 353,133,696.38 in the same period last year[28]. - The net profit attributable to shareholders of the listed company was CNY 140,237,151.31, a slight decrease of 1.01% from CNY 141,666,055.05 in the previous year[28]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 119,671,693.95, which is a 4.34% increase from CNY 114,693,233.75 in the same period last year[28]. - The net cash flow generated from operating activities was CNY 172,551,265.54, showing a significant increase of 155.75% compared to CNY 67,467,518.97 in the previous year[28]. - The total assets at the end of the reporting period were CNY 1,633,796,795.99, a decrease of 1.97% from CNY 1,666,591,276.99 at the end of the previous year[28]. - The net assets attributable to shareholders of the listed company were CNY 1,210,882,254.06, reflecting a decrease of 6.01% from CNY 1,288,337,335.90 at the end of the previous year[28]. - Basic earnings per share for the reporting period (1-6 months) is CNY 0.56, a decrease of 3.45% compared to the same period last year[31]. - The weighted average return on equity decreased by 1.20 percentage points to 10.55% compared to the same period last year[31]. - The company achieved operating revenue of 427.94 million yuan, a year-on-year increase of 21.19%, with a comprehensive gross margin of 52.14%[58]. Research and Development - Investment in R&D increased by 25% year-on-year, focusing on automation technologies and smart equipment[2]. - The company's R&D expenses surged by 149.69% to approximately 52.51 million, compared to 21.03 million in the previous year[73]. - The company emphasizes technological innovation, with self-developed systems and modules in motion control and visual algorithms, creating a competitive edge in the market[51]. - The company has developed a range of products including machine vision process equipment and precision welding assembly equipment, targeting the growth in the new energy vehicle and semiconductor sectors[40]. Market Expansion and Strategy - The company expects a revenue growth forecast of 10% for the second half of 2022, driven by new product launches and market expansion strategies[2]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by the end of 2023[2]. - A new product line in smart soldering equipment is set to launch in Q3 2022, anticipated to contribute an additional 50 million CNY in revenue[2]. - The marketing strategy includes a 7*24 hour response mechanism to enhance customer satisfaction and a focus on common application scenarios to drive product development[52]. - Market expansion plans include entering three new international markets by Q4 2022, which is anticipated to increase market share by 10%[134]. Risks and Challenges - The management highlighted potential risks including market volatility and supply chain disruptions, which could impact future performance[2]. - Risks include intensified market competition, with measures to enhance technical talent and service capabilities[93]. - The company faces potential risks from accounts receivable and inventory impairment, with strategies to strengthen credit management and supply chain oversight[98][99]. - The company is exposed to foreign exchange risks due to international operations, implementing cash management and hedging strategies to mitigate potential losses[100]. Shareholder and Capital Information - No profit distribution plan was proposed for the reporting period, as the company aims to reinvest earnings into growth initiatives[2]. - The company distributed a cash dividend of 13.00 CNY per 10 shares and increased capital by 3 shares for every 10 shares held, effective June 13, 2022[155]. - The total number of shares increased from 190,883,044 to 248,147,953, reflecting a significant capital increase[154]. - The company's net asset per share decreased by 23.10% from 6.45 CNY to 4.96 CNY after the share changes[156]. - The company implemented a capital reserve increase of 57,264,913 shares during the reporting period[156]. Environmental Commitment - The company has not faced any administrative penalties due to environmental issues during the reporting period, adhering strictly to environmental protection laws[119]. - The company is committed to environmental protection, enhancing management plans, and investing in environmental initiatives to reduce waste and improve resource utilization[120]. - Measures taken to reduce carbon emissions include increasing greenery coverage, retrofitting old equipment for energy efficiency, and replacing high-energy-consuming processes[121].

Dividend and Capital Structure - The company plans to distribute a cash dividend of 13 RMB per 10 shares (including tax) and to increase capital by issuing 3 additional shares for every 10 shares held[7]. Audit and Governance - The company received a standard unqualified audit report from Xinyong Zhonghe Accounting Firm[6]. - The board of directors confirmed that all members attended the board meeting, ensuring the integrity of the annual report[5]. - There are no non-operating fund occupations by controlling shareholders or related parties[9]. - The company has not violated decision-making procedures for external guarantees[9]. - The company has a comprehensive governance structure in place, as outlined in the governance section of the report[12]. Financial Performance - The annual report is structured to provide insights into financial performance and strategic direction for stakeholders[12]. - The company reported a revenue of 1.2 billion RMB for 2021, representing a 15% increase compared to 2020[30]. - The net profit for 2021 was 200 million RMB, which is a 10% increase year-over-year[30]. - The company achieved a revenue of approximately ¥780.57 million, representing a year-on-year increase of 45.90%[33]. - Net profit attributable to shareholders reached approximately ¥267.66 million, a growth of 51.06% compared to the previous year[33]. - The net profit after deducting non-recurring gains and losses was approximately ¥218.10 million, reflecting a 40.39% increase year-on-year[33]. - The gross profit margin for the reporting period was 51.64%[45]. - Revenue from precision welding assembly equipment was approximately ¥627.88 million, up 31.56% year-on-year[45]. - Revenue from visual inspection process equipment surged to approximately ¥87.82 million, a remarkable increase of 413.55%[45]. - The company reported a weighted average return on equity of 22.74%, an increase of 6.34 percentage points from the previous year[33]. - Total assets at the end of the reporting period were approximately ¥1.67 billion, a year-on-year increase of 19.09%[33]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 30% market share by 2025[30]. - The company is focusing on market opportunities in smart terminals, new energy vehicles, and semiconductor industries, driving its strategic expansion[104]. - The company aims to enhance its capabilities in semiconductor packaging and testing equipment through independent R&D, partnerships, and acquisitions, focusing on high-end packaging technologies[190]. - The company plans to deepen its strategy with major clients, expanding its product offerings in precision welding and automation solutions[191]. Research and Development - The company has invested 100 million RMB in R&D for advanced driver assistance systems (ADAS) technology[30]. - Continuous investment in R&D is prioritized to maintain technological leadership in precision welding and semiconductor packaging equipment[193]. - The total R&D expenditure was 64,264,317.67 CNY, accounting for 8.23% of total revenue[131]. - Research and development expenses increased by 80.91% to ¥64,264,317.67, driven by the company's commitment to enhancing technological innovation[107]. Sales and Marketing - The marketing strategy has shifted to a dual-drive model of technology and marketing, focusing on understanding customer needs and providing tailored solutions[98]. - The company has established a strong customer base, including major clients like Apple and BYD, enhancing its global brand image[102]. Operational Efficiency - The company is focusing on enhancing its manufacturing execution systems (MES) to improve operational efficiency by 15%[30]. - The company’s intelligent terminal assembly line supports various automated functions, including precise coating, assembly, and inspection, enhancing production efficiency[87]. Competition and Risks - The company is facing intensified market competition risks, particularly in the industrial intelligent equipment sector, which may hinder its ability to capture more market share[199]. - The company is focusing on continuous technological innovation and enhancing service capabilities to mitigate risks associated with market competition and international trade friction[199]. Subsidiaries and Investments - The company established a wholly-owned subsidiary, HONGKONG QUICK LIMITED, with a registered capital of 1 million USD for precision assembly and smart manufacturing technology[149]. - The company acquired a 40% stake in Suzhou Quick Precision Machinery Co., Ltd., making it a wholly-owned subsidiary[150]. - A new wholly-owned subsidiary, QUICK TECHNOLOGY JAPAN CO., LTD., was established with a registered capital of 100 million JPY for semiconductor equipment services[151]. Cash Flow and Financial Management - The company reported a net cash flow from operating activities of ¥171,127,993.91, a decrease of 20.43% from the previous year[107]. - The cash flow from operating activities decreased by 20.33% compared to the same period last year, primarily due to increased inventory and employee compensation expenses[136]. - The cash flow from investing activities decreased by 110.01% due to increased cash outflows from the acquisition of subsidiaries and new deposits[136]. Industry Trends and Market Potential - The global IoT market is projected to reach RMB 11 trillion by 2025, with China's IoT market exceeding RMB 2 trillion and maintaining a growth rate of over 20%[163]. - The AIoT market is expected to reach RMB 654.8 billion in 2021, with significant growth anticipated in the coming years[164]. - Global sales of new energy vehicles reached approximately 4.779 million units in the first ten months of 2021, representing a year-on-year growth of 125.5%[170]. - The automotive electronics market in China reached USD 110.4 billion in 2021, reflecting stable growth driven by the rise of new energy vehicles[174].

2022 年第一季度报告 单位：元 币种：人民币 证券代码：603203 证券简称：快克股份 快克智能装备股份有限公司 2022 年第一季度报告 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。 第一季度财务报表是否经审计 □是 √否 一、 主要财务数据 (一)主要会计数据和财务指标 | --- | --- | --- | |-----------------------------------------------|----------------|---------------------------------------| | 项目 | 本报告期 | 本报告期比上年同期增减 \n变动幅度 (%) | | 营业收入 | 205,017,734. ...

Financial Performance - The company's operating revenue for Q3 2021 was ¥209,960,644.89, representing a 46.04% increase compared to the same period last year[7] - The net profit attributable to shareholders for Q3 2021 was ¥78,786,823.02, reflecting a 67.94% year-over-year growth[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses for Q3 2021 was ¥68,446,244.13, up 70.79% from the previous year[7] - The basic earnings per share for Q3 2021 was ¥0.42, a 40.00% increase compared to the same period last year[10] - Total operating revenue for the first three quarters of 2021 reached ¥563,094,341.27, a significant increase of 53.8% compared to ¥366,075,137.19 in the same period of 2020[34] - Net profit for the first three quarters of 2021 was ¥220,317,992.76, representing a 70.8% increase from ¥128,972,004.96 in the same period of 2020[37] - Earnings per share for the first three quarters of 2021 were ¥1.17, compared to ¥0.83 in the same period of 2020, reflecting a growth of 41.0%[39] - The company’s total comprehensive income for the first three quarters of 2021 was ¥220,307,302.34, compared to ¥128,928,135.81 in the same period of 2020, reflecting a growth of 71.0%[39] Assets and Liabilities - The total assets at the end of the reporting period were ¥1,536,547,823.07, an increase of 9.80% from the end of the previous year[10] - Current assets totaled CNY 1,282,181,845.29, up from CNY 1,175,133,728.15, indicating an increase of about 9.1% year-over-year[29] - Inventory increased significantly to CNY 175,464,040.73 from CNY 98,275,108.84, reflecting a growth of approximately 78.5%[29] - Accounts receivable rose to CNY 203,766,541.03, compared to CNY 108,545,334.92, marking an increase of around 87.7%[29] - Total liabilities reached CNY 303,635,321.26, up from CNY 261,150,203.79, which is an increase of about 16.3%[32] - The company’s total assets amounted to RMB 1,399,382,432.86, slightly down from RMB 1,403,251,450.68 at the end of the previous year[47] - Total liabilities amounted to 261,150,203.79, a decrease of 3,869,017.82 from the previous period[50] - Current liabilities totaled 227,605,975.21, reflecting a decrease of 2,183,027.16 compared to the last reporting period[50] - Non-current liabilities were recorded at 33,544,228.58, down by 1,685,990.66 from the previous period[50] Cash Flow - The company reported a net cash flow from operating activities of ¥90,057,522.12 for the year-to-date, showing a decline of 28.49% compared to the previous year[10] - Cash inflow from operating activities for the first three quarters of 2021 was RMB 547,962,739.89, an increase of 49.2% compared to RMB 367,263,323.08 in the same period of 2020[43] - Net cash flow from operating activities decreased to RMB 90,057,522.12 in 2021 from RMB 125,940,237.54 in 2020, representing a decline of 28.7%[43] - Cash inflow from investment activities totaled RMB 1,583,584,151.45, up 24.5% from RMB 1,270,231,841.14 in the previous year[45] - The company reported a significant increase in cash received from investment recovery, amounting to RMB 1,383,430,000.00, compared to RMB 1,254,000,000.00 in the same period last year[43] - The company’s cash outflow from financing activities was RMB 134,970,931.49, compared to RMB 46,184,062.95 in the previous year, indicating a substantial increase in financing costs[45] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 12,406, indicating a broad shareholder base[15] - The company approved the initial grant of 3.055 million restricted stocks and 2.2725 million stock options under the 2021 incentive plan, with grant prices set at CNY 15.36 per share and CNY 24.58 per option[25] - The company’s total equity attributable to shareholders reached ¥1,227,773,410.54, an increase of 8.1% from ¥1,135,328,990.51 year-over-year[34] - The company reported an undistributed profit of 549,491,732.46, consistent with prior figures[53] - The company’s total equity, including minority interests, is 1,138,232,229.07, remaining stable[53] Research and Development - Research and development expenses increased to ¥37,918,986.76 in the first three quarters of 2021, up 42.5% from ¥26,606,979.40 in the previous year[37] Government Support - Government subsidies recognized in Q3 2021 amounted to ¥5,416,694.66, contributing to the overall profit increase[10] Other Comprehensive Income - Other comprehensive income after tax for the first three quarters of 2021 was -¥10,690.42, an improvement from -¥43,869.15 in the same period of 2020[39]

Financial Performance - The company reported a total revenue of 1.2 billion RMB for the first half of 2021, representing a year-on-year increase of 15%[17]. - The net profit attributable to shareholders was 200 million RMB, up 20% compared to the same period last year[17]. - The company's operating revenue for the first half of the year reached ¥353,133,696.38, representing a 58.85% increase compared to ¥222,307,795.86 in the same period last year[23]. - Net profit attributable to shareholders was ¥141,666,055.05, up 71.38% from ¥82,662,219.29 year-on-year[23]. - The net profit after deducting non-recurring gains and losses was ¥114,693,233.75, reflecting a 61.17% increase from ¥71,161,256.94 in the previous year[23]. - The company achieved a revenue of 353.13 million yuan, representing a year-on-year growth of 58.85%[59]. - The gross profit margin reached 53.74%, while the net profit margin, excluding non-recurring gains and losses, was 32.48%[59]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion in the first half of 2021, representing a 20% year-over-year growth[105]. - The net profit for the first half of 2021 was ¥141,048,908.18, up from ¥82,549,892.77 in the same period of 2020, reflecting a growth of approximately 70.8%[153]. User Growth and Market Expansion - User data showed an increase in active users by 30% to 1.5 million during the reporting period[17]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share by the end of 2022[17]. - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by 2023[110]. Research and Development - Research and development expenses increased by 10% to 150 million RMB, focusing on advanced manufacturing technologies[17]. - The company is focusing on precision electronic assembly and semiconductor packaging detection, aiming to lead in precision welding technology and develop 3D machine vision technology[27][28]. - The company is actively expanding its capabilities in SMT and precision electronic assembly, with ongoing investments in machine vision detection and automation solutions[63]. - The company is focusing on the semiconductor packaging inspection sector, with ongoing research and development in high-end packaging technologies[64]. - Research and development investments increased by 10%, focusing on innovative technologies to enhance product offerings[111]. Financial Integrity and Governance - No non-operating fund occupation by controlling shareholders was reported, ensuring financial integrity[7]. - The board of directors confirmed that all members attended the meeting, ensuring comprehensive oversight of the financial report[5]. - The company has committed to avoiding any non-operational fund occupation by major shareholders, ensuring financial integrity[114]. - The board of directors has implemented measures to link executive compensation to the company's performance, promoting accountability[115]. Operational Efficiency and Production - New product launches include a state-of-the-art automated assembly line, expected to increase production efficiency by 40%[17]. - The automated production line for millimeter-wave radar achieved a device yield rate of ≥99%[48]. - The company has established a flexible combination of customized and standard equipment for the intelligent assembly production line of filters, applicable in the 5G communication industry[45]. - The semiconductor packaging equipment features a precision of 30 μm and a speed of 38 ms/pcs[43]. - The company has developed a high-precision motion control system and intelligent control software for its dispensing and bonding equipment, widely used in various applications[39]. - The company focuses on the automotive new energy sector, providing comprehensive assembly solutions for PTC heating systems and battery heating applications[45]. Risk Management - The company has identified potential risks in supply chain disruptions and is implementing strategies to mitigate these risks[7]. - The company faces risks from intensified market competition and potential declines in profitability due to new entrants[77][82]. - The company has implemented measures to strengthen technology R&D and enhance operational efficiency to mitigate risks[81][84]. Assets and Liabilities - The company's total assets increased by 7.74% to ¥1,507,741,745.06 from ¥1,399,382,432.86 at the end of the previous year[23]. - Accounts receivable increased to ¥158,011,571.35, a growth of 45.57% due to increased sales scale[70]. - Inventory reached ¥192,833,195.60, up 96.22%, primarily to meet order growth and stock for products not yet recognized as revenue[70]. - Total liabilities reached CNY 352,106,289.25, compared to CNY 261,150,203.79, marking an increase of around 34.8%[140]. - The total liabilities increased to ¥490,093,743.72 from ¥346,040,032.04, reflecting an increase of approximately 41.6%[146]. Shareholder Information - The company distributed a cash dividend of 8.00 RMB per 10 shares and issued 2 additional shares for every 10 shares held, effective June 23, 2021[122]. - The total number of unrestricted circulating shares increased from 156,533,787 to 187,840,544 after the issuance of new shares[122]. - The top ten shareholders include Changzhou Fuyun Investment Consulting Co., Ltd. with 30.76% and Golden Pro. Enterprise Co., Limited with 25.17% of shares[122]. - The number of ordinary shareholders reached 9,559 by the end of the reporting period[122]. - The company has no strategic investors or general legal entities becoming top ten shareholders due to new share placements[128]. Environmental and Compliance - The company has not faced any administrative penalties related to environmental issues during the reporting period[95]. - There are no significant changes or updates regarding the company's environmental information disclosures during the reporting period[98]. - The company has not disclosed any employee stock ownership plans or other incentive measures during the reporting period[93].

Financial Performance - Operating income for the period was ¥144,164,347.47, representing a significant increase of 74.46% year-on-year[12] - Net profit attributable to shareholders was ¥63,148,205.49, up 82.24% from the same period last year[12] - The company reported a net profit excluding non-recurring gains and losses of ¥46,830,762.68, which is a 68.45% increase year-on-year[12] - The total operating revenue for Q1 2021 was ¥144,164,347.47, representing an increase of 74.7% compared to ¥82,635,329.75 in Q1 2020[53] - The net profit for Q1 2021 reached ¥62,772,831.07, a significant increase of 81.1% from ¥34,650,410.23 in Q1 2020[55] - Total comprehensive income for Q1 2021 was ¥42,32 million, compared to ¥26,38 million in Q1 2020, reflecting a growth of 60.5%[60] Cash Flow - The net cash flow from operating activities was ¥39,784,325.80, reflecting a 55.46% increase compared to the previous year[12] - The company reported a net cash flow from operating activities of ¥25,591,110.91, an increase of 55.46% compared to the same period last year[33] - Cash flow from operating activities for Q1 2021 was ¥39.78 million, compared to ¥25.59 million in Q1 2020, indicating a growth of 55.4%[63] - Cash inflow from operating activities totaled ¥166,879,269.54 in Q1 2021, significantly higher than ¥89,154,581.49 in Q1 2020, marking an increase of 87.3%[65] Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,482,477,456.64, an increase of 5.94% compared to the end of the previous year[12] - The company’s cash and cash equivalents at the end of the current period were ¥391,831,291.37, up from ¥321,916,172.02 at the end of the previous year[37] - Total liabilities increased to ¥281,355,590.37 from ¥261,150,203.79, an increase of about 7.9%[42] - Current liabilities rose to ¥250,791,185.23 from ¥227,605,975.21, an increase of about 10.3%[40] - Total assets increased to ¥1,482,477,456.64 from ¥1,399,382,432.86, representing a growth of approximately 5.9%[40] Shareholder Information - The total number of shareholders at the end of the reporting period was 9,516, with the largest shareholder holding 30.76% of the shares[16] - Shareholders' equity rose to ¥1,201,121,866.27 from ¥1,138,232,229.07, reflecting an increase of approximately 5.5%[42] Research and Development - The company focused on its core business and increased R&D investment, leading to accelerated overall performance growth during the reporting period[15] - The company’s research and development expenses increased to ¥10,244,613.89, a 64.06% increase from ¥6,244,488.71 year-on-year[27] - Research and development expenses for Q1 2021 were ¥10,244,613.89, an increase of 63.5% from ¥6,244,488.71 in Q1 2020[53] Inventory and Costs - The cost of goods sold increased to ¥64,893,064.67, reflecting a 60.47% rise from ¥40,438,324.75 year-on-year[27] - Inventory at the end of the current period was ¥133,253,854.40, up 35.59% from ¥98,275,108.84 at the end of the previous period[27] - Inventory increased significantly to ¥122,281,529.44 from ¥91,310,998.89, showing a growth of approximately 34.0%[46] Financial Expenses - The company’s financial expenses decreased by 55.46%, resulting in a net financial income of -¥2,629,882.08 compared to -¥5,905,151.02 in the previous year[27] - The company reported a financial expense of -¥2,629,882.08 in Q1 2021, compared to -¥5,905,151.02 in Q1 2020, showing an improvement in financial costs[53]

Dividend Policy - The company plans to distribute a cash dividend of 8.00 yuan per 10 shares (including tax) and to increase capital by 2 shares for every 10 shares held[6]. - The company has established a cash dividend policy, distributing at least 20% of the distributable profits as cash dividends when profitable[122]. - For the fiscal year 2020, the company distributed a cash dividend of 8.00 yuan per 10 shares, totaling 125,227,029.60 yuan, which represents 70.67% of the net profit attributable to ordinary shareholders[140]. - In 2019, the company distributed a cash dividend of 2.10 yuan per 10 shares, totaling 32,872,095.27 yuan, which was 18.92% of the net profit attributable to ordinary shareholders[140]. - The company has a differentiated cash dividend policy, requiring a minimum cash dividend ratio of 80% for mature companies without significant capital expenditure plans[124]. - The board of directors must provide a detailed explanation if the cash dividend does not meet the specified ratio due to significant capital expenditures[132]. - The company has not adjusted its cash dividend policy during the reporting period[138]. - The company actively engages with shareholders, especially minority shareholders, to gather their opinions before finalizing the cash dividend plan[132]. Financial Performance - The company's operating revenue for 2020 was CNY 534,986,054.08, representing a year-on-year increase of 16.08% compared to CNY 460,876,833.63 in 2019[23]. - The net profit attributable to shareholders of the listed company for 2020 was CNY 177,189,135.86, a slight increase of 1.99% from CNY 173,727,482.87 in 2019[23]. - The net profit after deducting non-recurring gains and losses was CNY 155,353,370.63, which is a 5.45% increase from CNY 147,328,423.85 in 2019[26]. - The net cash flow from operating activities for 2020 was CNY 215,058,093.15, up 23.10% from CNY 174,708,586.06 in 2019[26]. - The total assets at the end of 2020 were CNY 1,399,382,432.86, reflecting a year-on-year growth of 21.08% from CNY 1,155,756,249.66 in 2019[26]. - The company's weighted average return on equity for 2020 was 16.40%, down 2.60 percentage points from 19.00% in 2019[27]. - The basic earnings per share for 2020 was CNY 1.13, a 1.80% increase from CNY 1.11 in 2019[27]. - The company reported a quarterly revenue of CNY 168,910,916.89 in Q4 2020, with a net profit of CNY 47,613,369.70 attributable to shareholders[30]. Audit and Compliance - The company has received a standard unqualified audit report from Xinyong Zhonghe Accounting Firm[5]. - The board of directors and supervisory board members have confirmed the accuracy and completeness of the annual report[4]. - The company is committed to ensuring the authenticity and accuracy of the financial report[5]. - There are no non-operating fund occupations by controlling shareholders or related parties[8]. - The company has not violated decision-making procedures for external guarantees[8]. - The company has confirmed that all board members attended the board meeting[5]. - The company has not faced any issues with more than half of the directors being unable to guarantee the report's authenticity[8]. - The company has no significant litigation or arbitration matters during the reporting period[163]. - There are no adverse integrity issues reported for the company or its major stakeholders during the reporting period[163]. Risk Management - The company has detailed potential risk factors and countermeasures in the report[10]. - The company is focused on managing risks related to accounts receivable and inventory impairment, ensuring effective credit management and supply chain oversight[114]. - The company is prepared to address potential risks from intensified market competition and technological advancements through continuous innovation and service enhancement[113]. - The company will implement measures to mitigate foreign exchange risks as it expands its international business operations[116]. Research and Development - R&D expenses amounted to 3,552.35 million yuan, up 27.39% year-on-year, accounting for 6.64% of the operating revenue[64]. - The company is focusing on developing flexible electronic assembly capabilities, investing in machine vision detection and high-speed precision dispensing technologies[63]. - The company is increasing its R&D efforts in micro-assembly semiconductor packaging and testing technologies[106]. - The company plans to enhance its R&D investment to lead in electronic precision welding technology, focusing on automation and intelligent solutions for electronic assembly[102]. - The company aims to provide intelligent equipment solutions for precision electronic assembly and semiconductor micro-assembly detection[101]. - The company is actively strengthening its layout in the micro-assembly field, responding to the growing demand for high-precision micro-assembly and testing equipment[109]. Market and Product Development - The company focuses on the research and development of electronic assembly technology, accumulating rich experience in precision welding and adhesive bonding, and providing intelligent equipment and process solutions for industries such as 3C consumer electronics, automotive electronics, and 5G communications[37]. - Domestic sales revenue reached 47,741.20 million yuan, accounting for 89.93% of the main business revenue, with exports to regions including Malaysia, Mexico, the United States, Taiwan, Russia, Vietnam, and Germany[56]. - The company has developed a series of intelligent welding technologies, including soldering, hot air welding, high-frequency welding, infrared welding, and laser welding, enhancing its core competitiveness in advanced manufacturing[58]. - The company has a complete product line that includes precision welding, adhesive bonding, visual inspection, and smoke filtration, which increases customer stickiness and provides one-stop solutions[58]. - The automated production line for millimeter-wave radar achieves a production yield of ≥99%, indicating high efficiency in the automotive application sector[56]. - The company is actively expanding its market presence in the smart manufacturing equipment industry, aligning with national strategic emerging industries[56]. - The company achieved operating revenue of 53,498.61 million yuan, representing a year-on-year growth of 16.08%[62]. - The net profit attributable to shareholders, after deducting non-recurring gains and losses, was 15,535.34 million yuan, an increase of 5.45% compared to the previous year[62]. - The net cash flow from operating activities increased by 23.10% year-on-year, indicating strong profitability and management capability[62]. - The production volume of electronic welding and assembly automation equipment increased by 35.65% year-on-year, while sales volume rose by 27.33%[75]. Shareholder Commitments - The actual controller and major shareholders committed to not reducing their shareholdings below the issue price for two years after the lock-up period ends[147]. - The chairman and senior management committed to not transferring more than 25% of their shares annually during their tenure and not transferring any shares within six months after leaving[147]. - The controlling shareholder and major shareholders committed to not reducing their holdings by more than 10% annually during the 24 months following the lock-up period[147]. Related Party Transactions - The company will strictly adhere to market principles in related party transactions and ensure fair pricing[155]. - The company has committed to not obtaining any improper benefits through related party transactions[155]. - The company has implemented measures to ensure that management does not interfere with its operations or infringe on its interests[157]. Financial Investments - The company has invested a total of ¥15,600,000 in trust financial products and ¥95,671,000 in bank financial products, with an outstanding balance of ¥4,400,000 and ¥57,500,000 respectively[186]. - The company has a total of ¥26,700,000 in bank financial products funded by raised capital, with no outstanding balance reported[186]. - The company has a significant investment of ¥207,000,000 in a financial product with Jiangsu Jiangnan Rural Commercial Bank, with an annualized return rate of 4.15% and a total expected return of ¥2,212,347.95, which has been fully recovered[190]. - The company has another trust financial product with Bank of China International Securities, amounting to ¥6,000,000, with an annualized return rate of 4.25% and a total expected return of ¥86,630.14, which has also been fully recovered[188].

Financial Performance - Net profit attributable to shareholders was ¥129,575,766.16, reflecting a year-on-year increase of 3.71%[17] - Operating revenue for the first nine months was ¥366,075,137.19, up 8.53% from the same period last year[17] - Basic and diluted earnings per share were both ¥0.83, an increase of 3.75% year-on-year[17] - Total operating revenue for Q3 2020 was RMB 143,767,341.33, an increase of 21.4% compared to RMB 118,421,853.10 in Q3 2019[51] - Net profit for Q3 2020 was RMB 46,422,112.19, slightly down from RMB 46,738,497.99 in Q3 2019, representing a decrease of 0.7%[55] - Total profit for Q3 2020 was RMB 50,927,302.16, down 2.2% from RMB 54,119,828.06 in Q3 2019[55] - Total operating profit for the first three quarters of 2020 was ¥102,643,470.89, up 8.8% from ¥94,969,679.69 in the same period of 2019[61] Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,280,009,005.54, an increase of 10.75% compared to the end of the previous year[17] - Total liabilities reached ¥192,818,741.62, up from ¥163,991,568.05, indicating a growth of around 17.6%[42] - Owner's equity increased to ¥1,087,190,263.92 from ¥991,764,681.61, showing a rise of about 9.6%[42] - Current liabilities rose to ¥178,257,990.51 from ¥149,073,034.84, marking an increase of approximately 19.6%[42] - Accounts receivable increased to ¥120,359,339.62, representing 9.40% of total assets, up 35.54% from the previous period[25] - Inventory grew to ¥83,147,615.03, compared to ¥65,461,579.47, reflecting an increase of approximately 27.0%[46] Cash Flow - The net cash flow from operating activities was ¥125,940,237.54, a decrease of 10.62% compared to the previous year[17] - Net cash flow from investing activities was -¥65,112,020.77, a significant increase of 791.03% compared to the previous year, mainly due to increased cash management investments and acquisition payments[30] - Net cash flow from financing activities was -¥46,184,062.95, a decrease of 31.71% from the previous year, influenced by dividend distributions and stock repurchase payments[30] - Cash flow from operating activities for the first three quarters of 2020 was ¥125,940,237.54, down 10.6% from ¥140,899,535.38 in the same period of 2019[66] Shareholder Information - The total number of shareholders at the end of the reporting period was 9,730, with the top ten shareholders holding a significant portion of shares[20] - The largest shareholder, Changzhou Fuyun Investment Consulting Co., Ltd., held 30.76% of the shares[20] Strategic Initiatives - The company has not disclosed any new product developments or market expansion strategies in this report[17] - The company plans to expand its market presence and invest in new technology development in the upcoming quarters[51] - The company is exploring potential acquisitions to enhance its market position, with a focus on companies that align with its strategic goals[86] - Other strategic initiatives include partnerships with F industry leaders to leverage synergies and improve service offerings[86] Compliance and Standards - The company emphasized the importance of adapting to new revenue recognition standards, which will impact future financial reporting[87] - The audit report for Q3 2020 confirmed compliance with all regulatory requirements, ensuring transparency and accuracy in financial disclosures[87]

Financial Performance - The company reported a total revenue of 1.5 billion RMB for the first half of 2020, representing a year-on-year increase of 15%[17]. - The net profit attributable to shareholders was 300 million RMB, up 20% compared to the same period last year[17]. - User data showed an increase in active users by 25%, reaching 1.2 million users by the end of June 2020[17]. - The company's operating revenue for the first half of 2020 was CNY 222,307,795.86, representing a year-on-year increase of 1.57% compared to CNY 218,866,237.04 in the same period last year[22]. - The net profit attributable to shareholders for the same period was CNY 82,662,219.29, reflecting a growth of 5.70% from CNY 78,201,382.56 in the previous year[22]. - The net profit after deducting non-recurring gains and losses was CNY 71,161,256.94, which is a 10.85% increase from CNY 64,193,787.49 year-on-year[22]. - The basic earnings per share for the first half of 2020 was CNY 0.53, up 6.00% from CNY 0.50 in the same period last year[22]. - The company achieved operating revenue of 222,307,795.86 CNY, a year-on-year increase of 1.57%[38]. - Net profit attributable to shareholders reached 82,662,200 CNY, reflecting a growth of 5.70% compared to the previous year[38]. - The total comprehensive income for the first half of 2020 was CNY 82,685,057.25, up from CNY 78,207,025.48 in the same period of 2019, marking an increase of about 5.9%[156]. Research and Development - The company is investing 100 million RMB in R&D for new technologies, focusing on automation and smart manufacturing solutions[17]. - The company is focused on advanced electronic assembly technology R&D, providing intelligent equipment and process solutions for industries such as 3C consumer electronics, automotive electronics, and 5G communications[28]. - R&D expenses amounted to 18,833,642.59 CNY, up 18.49% year-on-year, representing 8.47% of the operating revenue[39]. - Research and development expenses for the first half of 2020 were ¥18,833,642.59, up from ¥15,894,948.20 in 2019, indicating a growth of approximately 18.4%[150]. - The company is focusing on continuous technological upgrades and innovation to maintain its competitive edge in the market[58]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2021[17]. - New product launches are expected to contribute an additional 200 million RMB in revenue for the second half of 2020[17]. - The company has identified potential risks in supply chain disruptions and is implementing measures to mitigate these risks[7]. - The company is focusing on the development of precision micro-welding equipment, driven by the demand for smaller and more integrated electronic devices[38]. - The company has developed a range of intelligent welding technologies and automated assembly techniques, enhancing its competitive edge in the market[33]. Financial Position and Assets - The company's total assets at the end of the reporting period were CNY 1,225,581,804.98, up 6.04% from CNY 1,155,756,249.66 at the end of the previous year[22]. - The net assets attributable to shareholders increased to CNY 1,040,947,185.36, marking a 4.96% rise from CNY 991,764,681.61 at the end of the last year[22]. - Cash and cash equivalents at the end of the period were 568,337,153.95 CNY, accounting for 46.37% of total assets, a 103.40% increase from the previous year[46]. - The total current assets reached RMB 1,071,699,317.94 as of June 30, 2020, compared to RMB 998,436,604.46 at the end of 2019, indicating an increase of about 7.3%[132]. - The total liabilities reached ¥184,746,946.14, up from ¥163,991,568.05, which is an increase of about 13%[138]. Shareholder and Governance - The company held its first extraordinary general meeting on January 8, 2020, where several resolutions were passed, including the approval of the second phase of the restricted stock incentive plan and adjustments to the repurchase of restricted stocks[64]. - The 2019 annual general meeting was held on May 15, 2020, where the board's work report and the financial budget for 2020 were approved, along with a three-year shareholder return plan[66]. - The actual controller and major shareholders committed to not reducing their holdings below the issue price for two years after the lock-up period ends[72]. - The company’s directors and senior management committed to not transferring more than 25% of their shares during their tenure and not transferring any shares within six months after leaving their positions[72]. - The company has committed to not engaging in any business that competes directly or indirectly with its main operations[76]. Cash Flow and Financing - The company reported a significant increase in cash flow from investment activities, totaling 243,136,273.42 CNY, a 774.73% increase compared to the previous year[43]. - Cash flow from operating activities generated a net inflow of CNY 87,509,668.61, down from CNY 96,819,808.02 in the first half of 2019, representing a decrease of approximately 9.5%[162]. - Cash and cash equivalents at the end of the period reached RMB 561,877,227.62, up from RMB 316,841,634.32 at the end of the previous year[168]. - The company distributed dividends amounting to RMB 32,872,095.27 during the reporting period[168]. - Cash outflow from financing activities totaled RMB 46,184,062.95, significantly higher than RMB 20,108,891.70 in the previous year[168]. Compliance and Risk Management - The company has implemented measures to strengthen customer credit management to mitigate accounts receivable risks[58]. - The company strictly adheres to environmental protection laws and has not faced any penalties for violations during the reporting period[108]. - The company has committed to not interfering with management activities and not infringing on company interests during the IPO process[81]. - The company has faced risks from intensified market competition and potential declines in profitability due to new entrants in the industrial automation sector[58]. - The company has adjusted its pre-receivable sales payments to contract liabilities and tax payables due to the implementation of new revenue standards[49].

[Definitions](index=4&type=section&id=Item%20I.%20Definitions) This section provides definitions of key terms used throughout the report [Company Profile and Key Financial Indicators](index=5&type=section&id=Item%20II.%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section presents the company's basic information and a summary of its key financial performance over recent years [Company Basic Information](index=5&type=section&id=Company%20Information) This chapter provides basic information about Quick Intelligent Equipment Co., Ltd., including company name, legal representative, registered address, contact details, and information disclosure channels - The company's full name is Quick Intelligent Equipment Co., Ltd., with stock code **603203**, listed on the Shanghai Stock Exchange[19](index=19&type=chunk)[25](index=25&type=chunk) [Key Financial Data and Indicators](index=6&type=section&id=Key%20Financial%20Data%20and%20Indicators%20for%20Recent%20Three%20Years) The company achieved steady growth in 2019, with operating revenue increasing by 6.58% and net profit attributable to shareholders increasing by 10.59%, alongside strong operating cash flow growth of 27.40% Key Accounting Data 2017-2019 (Unit: RMB) | Main Accounting Data | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 460,876,833.63 | 432,408,066.62 | 361,855,533.79 | | **Net Profit Attributable to Shareholders of Listed Company** | 173,727,482.87 | 157,095,729.75 | 131,648,209.92 | | **Net Cash Flow from Operating Activities** | 174,708,586.06 | 137,132,118.29 | 123,945,548.60 | | **Total Assets** | 1,155,756,249.66 | 1,039,456,677.65 | 890,234,655.08 | Key Financial Indicators 2017-2019 | Main Financial Indicators | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | **Basic Earnings Per Share (RMB/share)** | 1.11 | 1.01 | 1.10 | | **Weighted Average Return on Net Assets (%)** | 19.00 | 19.72 | 19.62 | [Quarterly Financial Data](index=8&type=section&id=2019%20Quarterly%20Key%20Financial%20Data) The company's quarterly operating performance in 2019 remained stable, showing a sequential growth trend in operating revenue and net profit, with the fourth quarter achieving the highest revenue and net profit 2019 Quarterly Key Financial Data (Unit: RMB) | Indicator | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 102,446,316.28 | 116,419,920.76 | 118,421,853.10 | 123,588,743.49 | | **Net Profit Attributable to Shareholders of Listed Company** | 34,364,859.70 | 43,836,522.86 | 46,738,497.99 | 48,787,602.32 | [Non-recurring Gains and Losses](index=8&type=section&id=Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) In 2019, the company's non-recurring gains and losses totaled **26.40 million RMB**, primarily from investment income on financial assets and government grants - The main components of non-recurring gains and losses in 2019 were: - **Investment income**: **21.50 million RMB**, primarily from fair value changes and disposal gains of transactional financial assets and liabilities - **Government grants**: **9.12 million RMB**[34](index=34&type=chunk) [Company Business Overview](index=9&type=section&id=Item%20III.%20Company%20Business%20Overview) This section outlines the company's core business, operating model, and competitive advantages within the intelligent manufacturing equipment industry [Main Business, Operating Model, and Industry Overview](index=9&type=section&id=Description%20of%20Main%20Business%2C%20Operating%20Model%2C%20and%20Industry%20Situation%20During%20the%20Reporting%20Period) The company is a leader in automation and intelligent equipment for precision electronic assembly, serving 3C consumer electronics, automotive electronics, and 5G communication industries, primarily through domestic sales - The company's main product lines include: - **Intelligent equipment**: Laser welding, machine vision, soldering robots, dispensing and coating equipment - **PCBA flexible electronic assembly light integration solutions**: Providing flexible production lines including automatic loading, welding, inspection, and locking stations - **System integration solutions**: Offering intelligent solutions for industries such as 5G communication and new energy vehicle electronics[39](index=39&type=chunk)[40](index=40&type=chunk) - The company's products are primarily applied in 3C intelligent terminals (e.g., TWS earphones, smartwatches), communication electronics (5G antenna filters), and automotive electronics (in-vehicle electronic modules)[40](index=40&type=chunk)[43](index=43&type=chunk) - The company primarily focuses on domestic sales, with domestic revenue accounting for **86.63%** in 2019; export regions include Malaysia, Mexico, and the United States[43](index=43&type=chunk) [Core Competitiveness Analysis](index=10&type=section&id=Analysis%20of%20Core%20Competitiveness%20During%20the%20Reporting%20Period) The company's core competitiveness stems from its strong R&D capabilities, diverse product offerings, and extensive customer base, enabling rapid response to market demands and fostering long-term stability - **R&D capabilities**: The company possesses deep technological accumulation and integration capabilities in various welding technologies such as soldering, laser welding, micro-spot welding, as well as dispensing, locking, machine vision, and MES[44](index=44&type=chunk) - **Customer base**: The company has accumulated a group of well-known customers in the downstream precision electronics manufacturing industry, including Luxshare ICT, Foxconn, Flex, AAC Technologies, Goertek, and BYD[45](index=45&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=Item%20IV.%20Management%20Discussion%20and%20Analysis) This section provides a comprehensive analysis of the company's operational performance, financial results, and future development strategies for the reporting period [Overall Operating Performance Analysis](index=11&type=section&id=I.%20Management%20Discussion%20and%20Analysis) In 2019, the company achieved stable growth despite industry adjustments and trade frictions, with operating revenue reaching **461 million RMB** and net profit attributable to shareholders increasing by 10.59% - The company successfully integrated solutions into the TWS earphone, smartwatch, and 5G communication product supply chains through HOTBAR welding technology and laser application technology, promoting revenue growth[49](index=49&type=chunk) - R&D investment totaled **27.89 million RMB**, a **7.39%** year-on-year increase, accounting for **6.05%** of revenue, with **64** authorized patents and **18** software copyrights obtained during the year[50](index=50&type=chunk) - During the reporting period, the company completed a share repurchase, repurchasing **910,200 shares**, accounting for **0.57%** of total share capital, using approximately **20.01 million RMB**, and these shares have been cancelled[50](index=50&type=chunk)[51](index=51&type=chunk) [Analysis of Key Operating Performance](index=12&type=section&id=II.%20Key%20Operating%20Performance%20During%20the%20Reporting%20Period) This section details the company's 2019 operating results, highlighting revenue and net profit growth, strong operating cash flow, and stable cost structure, with dedicated industrial robots and intelligent soldering stations as primary revenue drivers [Income Statement and Cash Flow Statement Analysis](index=12&type=section&id=Analysis%20Table%20of%20Changes%20in%20Income%20Statement%20and%20Cash%20Flow%20Statement%20Related%20Items) In 2019, the company's revenue and costs grew in tandem, while selling expenses decreased by 7.89% due to reduced share-based payment expenses, and operating cash flow significantly increased by 27.40% Changes in Key Income Statement and Cash Flow Statement Items 2019 | Item | Current Period (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 460,876,833.63 | 432,408,066.62 | 6.58 | | **Operating Cost** | 207,473,999.63 | 194,472,575.52 | 6.69 | | **Net Cash Flow from Operating Activities** | 174,708,586.06 | 137,132,118.29 | 27.40 | | **Net Cash Flow from Investing Activities** | -47,532,424.25 | 11,051,698.04 | -530.09 | | **Net Cash Flow from Financing Activities** | -67,635,549.17 | -40,537,853.00 | 66.85 | [Revenue and Cost Analysis](index=12&type=section&id=Revenue%20and%20Cost%20Analysis) In 2019, the company's main business revenue reached **458 million RMB** with a gross profit margin of 54.97%, driven by growth in dedicated industrial robots and intelligent soldering stations, while domestic sales accounted for 86.63% of revenue Main Business by Product (Unit: RMB) | By Product | Operating Revenue | Operating Cost | Gross Profit Margin (%) | YoY Change in Operating Revenue (%) | | :--- | :--- | :--- | :--- | :--- | | **Dedicated Industrial Robots, Automated Intelligent Equipment** | 214,694,274.83 | 91,377,020.25 | 57.44 | 7.40 | | **Intelligent Soldering Stations and Other Small Equipment** | 156,379,412.28 | 82,775,995.96 | 47.07 | 9.87 | | **Accessories and Fixtures** | 87,308,807.94 | 32,256,673.36 | 63.05 | -0.82 | Main Business by Region (Unit: RMB) | By Region | Operating Revenue | Operating Cost | Gross Profit Margin (%) | YoY Change in Operating Revenue (%) | | :--- | :--- | :--- | :--- | :--- | | **Domestic Sales** | 397,167,068.99 | 180,079,729.95 | 54.66 | 5.97 | | **Export Sales** | 61,215,426.06 | 26,329,959.62 | 56.99 | 10.37 | - Sales to the top five customers accounted for **26.06%** of total annual sales, and purchases from the top five suppliers accounted for **12.28%** of total annual purchases, indicating low customer and supplier concentration[69](index=69&type=chunk) [R&D Investment](index=16&type=section&id=R%26D%20Investment) In 2019, the company's total R&D investment was **27.89 million RMB**, fully expensed, representing 6.05% of operating revenue, with 126 R&D personnel 2019 R&D Investment Overview | Indicator | Value | | :--- | :--- | | **Expensed R&D Investment for the Period (RMB)** | 27,886,301.16 | | **Total R&D Investment as % of Operating Revenue** | 6.05% | | **Number of Company R&D Personnel (Persons)** | 126 | | **R&D Personnel as % of Total Company Employees** | 17.43% | [Assets and Liabilities Analysis](index=17&type=section&id=Analysis%20of%20Assets%20and%20Liabilities) As of year-end 2019, total assets increased to **1.16 billion RMB**, with significant growth in transactional financial assets due to accounting standard changes and fixed assets from completed construction projects - Year-end balance of transactional financial assets was **564 million RMB**, accounting for **48.80%** of total assets, primarily due to accounting standard changes reclassifying purchased wealth management products to this item[73](index=73&type=chunk) - Fixed assets increased by **54.17%** year-on-year, while construction in progress decreased by **100%**, mainly due to the completion and transfer of the 2 factory building and supporting center facilities for the 'R&D Center Project' and 'Intelligent Precision Soldering Equipment Project' to fixed assets[75](index=75&type=chunk) [Analysis of Major Holding and Participating Companies](index=19&type=section&id=Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) The company holds several wholly-owned subsidiaries, with Juxie Software (software development) being the most profitable, while Quick Dongguan (production, sales) reported a net loss in 2019 Financial Performance of Major Subsidiaries (Unit: Ten Thousand RMB) | Company Abbreviation | Main Business | Total Assets | Net Assets | Net Profit | | :--- | :--- | :--- | :--- | :--- | | **Juxie Software** | Software Development | 4,448.04 | 4,124.08 | 6,170.78 | | **Quick USA** | Sales | 426.84 | 136.75 | 23.43 | | **Quick Dongguan** | Production, Sales | 716.75 | -139.18 | -194.65 | [Discussion and Analysis of Future Development](index=20&type=section&id=III.%20Company%20Discussion%20and%20Analysis%20of%20Future%20Development) The company aims to become a leading provider of advanced electronic assembly and micro-assembly intelligent equipment, focusing on technological innovation, flexible assembly solutions, and addressing market competition and operational risks - **Development strategy**: To become a leader in the intelligent development of electronic welding and enter the high-end micro-assembly segment of the industry chain[87](index=87&type=chunk) - **Operating plan**: - Adhere to technological innovation to ensure leading core technologies - Vigorously develop comprehensive flexible electronic assembly capabilities - Extend into the micro-assembly field - Optimize process organization management and strengthen human resource management[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk) - **Major risks**: - Intensified market competition risk - Technology upgrade and development risk - Gross profit margin decline risk - Accounts receivable bad debt risk - Inventory impairment risk - Risk of COVID-19 pandemic impacting production and operations[97](index=97&type=chunk)[98](index=98&type=chunk)[101](index=101&type=chunk)[103](index=103&type=chunk)[105](index=105&type=chunk) [Significant Matters](index=23&type=section&id=Item%20V.%20Significant%20Matters) This section covers important corporate actions including profit distribution, fulfillment of commitments, equity incentive plans, and entrusted wealth management activities [Profit Distribution and Dividends](index=23&type=section&id=Ordinary%20Share%20Profit%20Distribution%20or%20Capital%20Reserve%20Capitalization%20Plan) The company has a clear cash dividend policy, prioritizing cash dividends of no less than 20% of distributable profit, with the 2019 proposed dividend and share repurchase totaling **30.44%** of net profit attributable to shareholders - 2019 profit distribution plan: A cash dividend of **2.1 RMB** (tax inclusive) per 10 shares, totaling **32.87 million RMB**[127](index=127&type=chunk) - The share repurchase amount of **20.01 million RMB** implemented in 2019 is treated as a cash dividend; the total cash dividend (including repurchase) for the year was **52.88 million RMB**, accounting for **30.44%** of net profit attributable to parent company shareholders[133](index=133&type=chunk) [Fulfillment of Commitments](index=28&type=section&id=Fulfillment%20of%20Commitments) During the reporting period, the company's actual controllers, shareholders, and directors, supervisors, and senior management strictly fulfilled all commitments made during the initial public offering and equity incentive plans, including share lock-up and avoiding competition - The 36-month lock-up commitment for shares issued in the initial public offering by the company's actual controllers, controlling shareholders, and major shareholders expired on November 7, 2019, and has been strictly fulfilled[137](index=137&type=chunk) - All relevant parties have timely and strictly fulfilled all commitments, with no instances of non-fulfillment[137](index=137&type=chunk)[140](index=140&type=chunk)[143](index=143&type=chunk)[146](index=146&type=chunk) [Equity Incentive Plan](index=36&type=section&id=Status%20and%20Impact%20of%20Company%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) During the reporting period, the company continued to advance its 2017 restricted stock incentive plan, completing the repurchase and cancellation of unvested shares from resigned participants and processing the second tranche of unlocking for eligible participants - On December 23, 2019, the Board of Directors approved the 'Proposal on the Achievement of Conditions for the Second Tranche Unlocking and Listing of the First Grant under the 2017 Restricted Stock Incentive Plan,' allowing eligible incentive recipients' shares to be unlocked[169](index=169&type=chunk) [Entrusted Wealth Management](index=41&type=section&id=Entrusted%20Cash%20Asset%20Management) In 2019, the company engaged in cash asset management using both own funds and raised funds, primarily investing in bank, trust, and brokerage wealth management products, with all principal and returns recovered on schedule Overall Entrusted Wealth Management (Unit: Ten Thousand RMB) | Type | Source of Funds | Amount Incurred | Unmatured Balance | | :--- | :--- | :--- | :--- | | **Bank Wealth Management Products** | Own Funds | 26,000.00 | 26,000.00 | | **Trust Wealth Management Products** | Own Funds | 3,400.00 | 3,400.00 | | **Brokerage Wealth Management Products** | Own Funds | 600.00 | 600.00 | | **Bank Wealth Management Products** | Raised Funds | 26,400.00 | 26,400.00 | [Changes in Ordinary Shares and Shareholder Information](index=50&type=section&id=Item%20VI.%20Changes%20in%20Ordinary%20Shares%20and%20Shareholder%20Information) This section details the company's share capital changes, including reductions due to repurchases and cancellations, and provides an overview of its shareholder structure and actual controllers [Changes in Share Capital](index=50&type=section&id=Changes%20in%20Ordinary%20Share%20Capital) During the reporting period, the company's total share capital decreased from **158.3 million shares** to **157.4 million shares** due to share repurchases and cancellations, while restricted shares significantly decreased following IPO lock-up expiry and equity incentive unlocking - Total share capital decreased from **158,315,300 shares** to **157,379,112 shares**, a net decrease of **936,188 shares**[205](index=205&type=chunk) - Key reasons for share capital changes include: - Repurchase and cancellation of restricted shares from some resigned incentive recipients - Completion and cancellation of **910,214 shares** repurchased through centralized bidding transactions - **102,693,763 restricted shares** from the initial public offering became tradable on November 8, 2019 - **835,653 shares** from the second tranche of the 2017 restricted stock incentive plan were unlocked[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk) [Shareholders and Actual Controllers](index=54&type=section&id=Shareholders%20and%20Actual%20Controllers) As of the reporting period end, the company had 8,690 ordinary shareholders, with Changzhou Fuyun Investment Consulting Co., Ltd., Golden Pro. Enterprise Co., Limited, and Qi Guoqiang as the top three shareholders and acting in concert, with Qi Guoqiang and Jin Chun as the actual controllers Top Ten Shareholders' Shareholding as of the End of the Reporting Period | Shareholder Name | Shares Held at Period End (Shares) | Proportion (%) | | :--- | :--- | :--- | | **Changzhou Fuyun Investment Consulting Co., Ltd.** | 48,146,986 | 30.59 | | **Golden Pro. Enterprise Co., Limited** | 39,393,073 | 25.03 | | **Qi Guoqiang** | 15,153,704 | 9.63 | | **Beijing Huibao Jinyuan Investment Management Center (Limited Partnership)** | 3,498,300 | 2.22 | | **Zhou Yu** | 2,648,346 | 1.68 | - The company's controlling shareholder is Changzhou Fuyun Investment Consulting Co., Ltd., and the actual controllers are Mr. Qi Guoqiang and Ms. Jin Chun[228](index=228&type=chunk)[231](index=231&type=chunk) [Preferred Shares Related Information](index=58&type=section&id=Item%20VII.%20Preferred%20Shares%20Related%20Information) This section confirms that the company has no preferred shares during the reporting period [Preferred Shares Related Information](index=58&type=section&id=Preferred%20Shares%20Related%20Information) During the reporting period, the company had no preferred shares - The company is not subject to preferred share regulations during this reporting period[234](index=234&type=chunk) [Directors, Supervisors, Senior Management, and Employees](index=59&type=section&id=Item%20VIII.%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Employees) This section provides an overview of the company's board of directors, supervisors, senior management, and employee structure, including their compensation and professional composition [Shareholding and Remuneration of Directors, Supervisors, and Senior Management](index=59&type=section&id=Changes%20in%20Shareholding%20and%20Remuneration) During the reporting period, there were no changes in the shareholdings of current and former directors, supervisors, and senior management, with their total pre-tax remuneration amounting to **3.82 million RMB** in 2019 Remuneration of Selected Directors, Supervisors, and Senior Management (Unit: Ten Thousand RMB) | Name | Position | Total Pre-tax Remuneration Received from the Company During the Reporting Period | | :--- | :--- | :--- | | **Qi Guoqiang** | Director, General Manager | 63.43 | | **Liu Zhihong** | Director, Deputy General Manager | 78.74 | | **Dou Xiaoming** | Director, Deputy General Manager | 62.88 | | **Miao Xiaoming** | Board Secretary, Financial Controller | 78.37 | | **Total** | / | 381.58 | [Employee Information](index=64&type=section&id=Employee%20Information) As of the reporting period end, the company and its major subsidiaries had 723 employees, primarily production and technical personnel, with approximately 59.5% holding college degrees or higher Employee Professional Composition | Professional Category | Number of Persons | | :--- | :--- | | **Production Personnel** | 355 | | **Sales Personnel** | 58 | | **Technical Personnel** | 255 | | **Financial Personnel** | 5 | | **Management Personnel** | 9 | | **Other Personnel** | 41 | | **Total** | 723 | [Corporate Governance](index=65&type=section&id=Item%20IX.%20Corporate%20Governance) This section details the company's adherence to corporate governance standards, ensuring independent operations and safeguarding shareholder rights through robust internal controls and transparent information disclosure [Overview of Corporate Governance](index=65&type=section&id=Explanation%20of%20Corporate%20Governance%20Related%20Matters) During the reporting period, the company strictly adhered to relevant laws and regulations, continuously improving its corporate governance structure and internal control systems, ensuring independent operations and protecting shareholder rights - The company's corporate governance structure is sound, maintaining independence from the controlling shareholder in terms of personnel, assets, finance, organization, and business[257](index=257&type=chunk) - During the reporting period, **3** shareholder meetings, **8** board meetings, and **8** supervisory board meetings were held, completing the re-election of the Board of Directors and Supervisory Board[257](index=257&type=chunk)[258](index=258&type=chunk)[262](index=262&type=chunk) - The company strictly implemented regulations for insider information registration and management, with no instances of illegal trading of company shares found during the reporting period[261](index=261&type=chunk) [Corporate Bonds Related Information](index=68&type=section&id=Item%20X.%20Corporate%20Bonds%20Related%20Information) This section confirms that the company has no corporate bonds during the reporting period [Corporate Bonds Related Information](index=68&type=section&id=Corporate%20Bonds%20Related%20Information) During the reporting period, the company had no corporate bonds - The company is not subject to corporate bond regulations during this reporting period[270](index=270&type=chunk) [Financial Report](index=69&type=section&id=Item%20XI.%20Financial%20Report) This section presents the audited financial statements for 2019, including the audit report, balance sheets, income statements, cash flow statements, and detailed notes to the financial statements [Audit Report](index=69&type=section&id=Audit%20Report) Xinyongzhonghe Certified Public Accountants (Special General Partnership) issued a standard unqualified audit opinion on the company's 2019 financial statements, with revenue recognition identified as a key audit matter - The auditing firm is Xinyongzhonghe Certified Public Accountants (Special General Partnership)[272](index=272&type=chunk) - The audit opinion is a standard unqualified opinion[272](index=272&type=chunk) - The key audit matter is 'Revenue Recognition,' due to its materiality and status as a key performance indicator, posing an inherent risk of management manipulation[274](index=274&type=chunk)[275](index=275&type=chunk) [Financial Statements](index=72&type=section&id=Financial%20Statements) This section includes the company's 2019 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, showing total assets of **1.16 billion RMB** and net profit attributable to parent company shareholders of **174 million RMB** Consolidated Balance Sheet Summary (December 31, 2019) | Item | Amount (RMB) | | :--- | :--- | | **Total Assets** | 1,155,756,249.66 | | **Total Liabilities** | 163,991,568.05 | | **Total Equity Attributable to Parent Company Shareholders** | 991,764,681.61 | Consolidated Income Statement Summary (2019) | Item | Amount (RMB) | | :--- | :--- | | **Total Operating Revenue** | 460,876,833.63 | | **Operating Profit** | 201,182,372.34 | | **Total Profit** | 201,615,067.42 | | **Net Profit Attributable to Parent Company Shareholders** | 173,727,482.87 | [Notes to Consolidated Financial Statement Items](index=122&type=section&id=Notes%20to%20Consolidated%20Financial%20Statement%20Items) This chapter provides detailed notes to the consolidated financial statement items, including explanations for changes in monetary funds, transactional financial assets, accounts receivable, and inventory balances - Year-end monetary funds balance was **279 million RMB**, of which **0.59 million RMB** was restricted funds (bank acceptance bill margin)[497](index=497&type=chunk)[630](index=630&type=chunk) - Year-end accounts receivable book balance was **89.34 million RMB**, with bad debt provision of **0.54 million RMB**, resulting in a book value of **88.80 million RMB**[506](index=506&type=chunk) - Year-end inventory book value was **62.30 million RMB**, a decrease from **74.50 million RMB** at the beginning of the period, primarily due to a reduction in products shipped but not yet recognized as revenue[528](index=528&type=chunk)[531](index=531&type=chunk) [Reference Documents Catalog](index=176&type=section&id=Item%20XII.%20Reference%20Documents%20Catalog) This section lists all supplementary documents available for reference, providing comprehensive support for the financial report