[Definitions](index=4&type=section&id=Part%20I%20Definitions) This section provides essential definitions of terms, legal entities, and reporting periods used throughout the report for clarity [Definitions of Common Terms](index=4&type=section&id=I.%20Definitions%20of%20Common%20Terms) This chapter provides definitions of common terms used in the report, including company name, relevant laws and regulations, stock exchange, controlling shareholder, subsidiaries, and the reporting period, to aid reader comprehension - The Company, Company, Tianlong Co., Ltd. refers to Ningbo Tianlong Electronics Co., Ltd[12](index=12&type=chunk) - Antai Holdings refers to Zhejiang Antai Holdings Group Co., Ltd., the Company's initiator and controlling shareholder[12](index=12&type=chunk) - Reporting Period refers to January-December 2017[12](index=12&type=chunk) [Company Profile and Key Financial Indicators](index=4&type=section&id=Part%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section outlines the company's fundamental information, contact details, stock specifics, and a summary of its key financial performance over the past three years [Basic Company Information](index=4&type=section&id=I.%20Basic%20Company%20Information) Discloses basic company information including Chinese name, abbreviation, foreign name, and legal representative - Company's Chinese name: Ningbo Tianlong Electronics Co., Ltd., abbreviation: Tianlong Co., Ltd[14](index=14&type=chunk) - Legal Representative: Hu Jianli[14](index=14&type=chunk) [Contact Persons and Information](index=5&type=section&id=II.%20Contact%20Persons%20and%20Information) Provides names, contact addresses, phone numbers, faxes, and email addresses for the Board Secretary and Securities Affairs Representative - Board Secretary: Yu Jianfeng, Contact Number: 0574-58999899[15](index=15&type=chunk) - Securities Affairs Representative: Zhu Younan, Email: tlinfo@ptianlong.com[15](index=15&type=chunk) [Company Registration and Office Information](index=5&type=section&id=III.%20Company%20Registration%20and%20Office%20Information) Introduces the company's registered address, office address, postal code, and website - Company's registered and office address: Building 3, No. 116 Batang Road, Ningbo Hangzhou Bay New Zone, Postal Code 315336[16](index=16&type=chunk) - Company Website: http://www.ptianlong.com[16](index=16&type=chunk) [Information Disclosure Channels](index=5&type=section&id=IV.%20Information%20Disclosure%20Channels) Lists the company's designated information disclosure media and website, and the location for annual report availability - Designated information disclosure media include China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily[17](index=17&type=chunk) - Designated website for annual report publication is the SSE website http://www.sse.com.cn/[17](index=17&type=chunk) [Stock Information](index=5&type=section&id=V.%20Stock%20Information) Provides information on the company's stock type, listing exchange, abbreviation, and code - Company's stock is A-shares, listed on the Shanghai Stock Exchange, stock abbreviation: Tianlong Co., Ltd., stock code: 603266[18](index=18&type=chunk) [Audit and Sponsor Institution Information](index=5&type=section&id=VI.%20Audit%20and%20Sponsor%20Institution%20Information) Discloses information on the accounting firm engaged by the company and the sponsor institution fulfilling continuous supervision duties during the reporting period - The company engaged Tianjian Certified Public Accountants (Special General Partnership) for auditing[19](index=19&type=chunk) - The sponsor institution fulfilling continuous supervision duties during the reporting period was UBS Securities Co., Ltd[19](index=19&type=chunk) [Key Financial Data and Indicators for the Past Three Years](index=6&type=section&id=VII.%20Key%20Financial%20Data%20and%20Indicators%20for%20the%20Past%20Three%20Years) Summarizes the company's key accounting data and financial indicators for the past three years, explaining reasons for changes in some indicators Key Accounting Data for the Past Three Years (Unit: Yuan) | Main Accounting Data | 2017 | 2016 | Change from Prior Period (%) | 2015 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 856,933,382.27 | 805,800,846.20 | 6.35 | 703,313,116.54 | | Net Profit Attributable to Shareholders of Listed Company | 78,477,167.94 | 81,057,609.82 | -3.18 | 67,236,497.93 | | Net Cash Flow from Operating Activities | 100,993,010.18 | 51,176,870.97 | 97.34 | 79,615,283.24 | | Net Assets Attributable to Shareholders of Listed Company | 806,291,676.72 | 432,217,969.63 | 86.55 | 351,057,430.57 | | Total Assets | 1,031,252,203.06 | 732,023,824.12 | 40.88 | 611,428,914.00 | Key Financial Indicators for the Past Three Years | Main Financial Indicators | 2017 | 2016 | Change from Prior Period (%) | 2015 | | :--- | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/Share) | 0.80 | 1.08 | -25.93 | 0.90 | | Basic Earnings Per Share Excluding Non-Recurring Gains and Losses (Yuan/Share) | 0.67 | 1.04 | -35.58 | 0.85 | | Weighted Average Return on Net Assets (%) | 10.45 | 20.70 | -10.25 percentage points | 21.18 | - Net cash flow from operating activities increased by **97.34%** year-on-year, primarily due to better control over accounts receivable and inventory in 2017[23](index=23&type=chunk) - Net assets attributable to shareholders of the listed company and total assets significantly increased year-on-year, mainly due to the company's initial public offering of **25 million shares** and annual profit in 2017[23](index=23&type=chunk) - Basic earnings per share excluding non-recurring gains and losses decreased by **35.58%** year-on-year, primarily impacted by rising material prices, exchange rates, and increased fixed asset investment, with year-end EPS calculated based on **100 million shares** compared to **75 million shares** in the prior period[24](index=24&type=chunk) [Explanation of Differences in Accounting Standards between Domestic and Overseas](index=7&type=section&id=VIII.%20Explanation%20of%20Differences%20in%20Accounting%20Standards%20between%20Domestic%20and%20Overseas) The company did not disclose differences in net profit and net assets attributable to shareholders of the listed company in financial reports prepared under both International Accounting Standards or overseas accounting standards and Chinese Accounting Standards [Key Quarterly Financial Data for 2017](index=7&type=section&id=IX.%20Key%20Quarterly%20Financial%20Data%20for%202017) Provides the company's quarterly operating revenue, net profit attributable to shareholders of the listed company, net profit after deducting non-recurring gains and losses, and net cash flow from operating activities for 2017 Key Quarterly Financial Data for 2017 (Unit: Yuan) | Indicator | Q1 (Jan-Mar) | Q2 (Apr-Jun) | Q3 (Jul-Sep) | Q4 (Oct-Dec) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 217,036,238.01 | 192,525,377.54 | 212,934,385.55 | 234,437,381.17 | | Net Profit Attributable to Shareholders of Listed Company | 20,874,981.11 | 24,768,532.39 | 18,640,514.91 | 14,193,139.53 | | Net Cash Flow from Operating Activities | 69,205.81 | 40,664,080.57 | 43,657,420.70 | 16,602,303.10 | [Analysis of Non-Recurring Gains and Losses](index=7&type=section&id=X.%20Analysis%20of%20Non-Recurring%20Gains%20and%20Losses) Details the company's non-recurring gains and losses items and amounts for the past three years, with a total of **12,393,040.81 yuan** in 2017 Non-Recurring Gains and Losses Items and Amounts (Unit: Yuan) | Non-Recurring Gains and Losses Item | 2017 Amount | 2016 Amount | 2015 Amount | | :--- | :--- | :--- | :--- | | Gains and Losses from Disposal of Non-Current Assets | 496,147.26 | -107,355.80 | -1,685,451.50 | | Government Subsidies Included in Current Profit and Loss (Excluding those closely related to the company's normal operations) | 8,653,947.78 | 2,744,170.15 | 6,077,203.14 | | Gains and Losses from Entrusted Investment or Asset Management | 4,841,094.52 | - | - | | Total | 12,393,040.81 | 2,765,641.66 | 3,604,310.60 | - Total non-recurring gains and losses in 2017 amounted to **12,393,040.81 yuan**, primarily comprising government subsidies and wealth management income from raised funds[28](index=28&type=chunk)[29](index=29&type=chunk) [Fair Value Measurement Items](index=8&type=section&id=XI.%20Fair%20Value%20Measurement%20Items) The company had no items measured at fair value during the reporting period [Business Overview](index=9&type=section&id=Part%20III%20Business%20Overview) This section describes the company's core business, operating model, industry landscape, and analyzes its key competitive advantages [Main Business, Operating Model, and Industry Overview](index=9&type=section&id=I.%20Main%20Business%2C%20Operating%20Model%2C%20and%20Industry%20Overview) The company primarily engages in precision mold development and manufacturing, and precision plastic parts production and sales, serving automotive, electrical appliance, and consumer electronics sectors. Its operating model is 'production based on sales,' with procurement influenced by upstream raw material price fluctuations. The company holds a high competitive position in plastic parts manufacturing, with mold development capability as a core competency - The company's main business is precision mold development and manufacturing, and precision plastic parts production and sales, with products categorized into automotive, electrical appliance, and consumer electronics[32](index=32&type=chunk) - The operating model is 'production based on sales,' and prices of main raw material plastic pellets are significantly affected by crude oil price fluctuations[32](index=32&type=chunk)[33](index=33&type=chunk) - The company is in a high competitive tier within the plastic parts manufacturing industry, with core competitiveness in product synchronous design and precision mold development capabilities[38](index=38&type=chunk) - Automotive production and sales growth slowed in 2017, but China's automotive industry still has significant development potential; the electrical appliance industry maintained stable growth[36](index=36&type=chunk)[37](index=37&type=chunk) [Significant Changes in Major Assets](index=11&type=section&id=II.%20Significant%20Changes%20in%20Major%20Assets) No significant changes occurred in the company's major assets during the reporting period [Analysis of Core Competencies](index=11&type=section&id=III.%20Analysis%20of%20Core%20Competencies) The company's core competencies include technological and R&D advantages (**22 invention patents, 73 utility model patents**), mold development, design, and manufacturing expertise, nationwide regional layout, an experienced management team, a rich product line, and stable high-quality customer resources - The company holds **22 invention patents** and **73 utility model patents**, mastering key technologies such as mold flow analysis, CAD/CAM/CAE design, and precision injection molding[41](index=41&type=chunk) - The company possesses strong mold development, design, and manufacturing capabilities, directly participating in customer product synchronous development[41](index=41&type=chunk) - The company has established a nationwide strategic layout with production bases in the Yangtze River Delta, Pearl River Delta, Beijing-Tianjin, Central China, Southwest, and Northeast regions[42](index=42&type=chunk) - The company's product lines cover three major areas: automotive, electrical appliances, and consumer electronics, with exploration into medical and aerospace fields, effectively diversifying operational risks[43](index=43&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=Part%20IV%20Management%20Discussion%20and%20Analysis) This section reviews the company's operational performance in 2017, analyzes key financial data, and discusses future development strategies, operating plans, and potential risks [2017 Business Overview and Key Initiatives](index=12&type=section&id=I.%202017%20Business%20Overview%20and%20Key%20Initiatives) In 2017, the company achieved operating revenue of **857 million yuan**, a **6.35%** year-on-year increase, but net profit attributable to the parent company decreased by **3.18%**, mainly due to rising material prices, exchange rates, and increased fixed asset investment. During the reporting period, the company steadily advanced fundraising projects, strengthened production management, technological innovation, and management mechanisms, while focusing on shareholder returns Key Operating Performance in 2017 | Indicator | Amount (10,000 Yuan) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Operating Revenue | 85,693.34 | 6.35 | | Net Profit Attributable to Shareholders of Listed Company | 7,847.72 | -3.18 | - The company successfully listed on January 10, 2017, with fundraising projects steadily progressing; by the end of the reporting period, **123.0493 million yuan** of raised funds had been invested[45](index=45&type=chunk) - The company rigorously managed production, focusing on cost control, expense reduction, and energy saving, while strengthening technical management, holding **22 invention patents** and **73 utility model patents** by the end of 2017[45](index=45&type=chunk)[46](index=46&type=chunk) - The company completed its 2016 profit distribution, paying a cash dividend of **2.5 yuan (tax inclusive) per 10 shares**, with cash dividends accounting for **30.84%** of net profit attributable to the parent company[47](index=47&type=chunk) [Analysis of Key Operating Data](index=13&type=section&id=II.%20Analysis%20of%20Key%20Operating%20Data) During the reporting period, the company's operating revenue increased by **6.35%** year-on-year, but net profit decreased by **3.18%**. Growth in automotive plastic parts and mold sales revenue was the main driver. Gross profit margin declined due to rising raw material prices. Net cash flow from operating activities surged by **97.34%**, while investment cash flow saw a significant outflow due to wealth management product purchases, and financing cash flow experienced a substantial inflow from IPO proceeds [(I) Main Business Revenue and Cost Analysis](index=13&type=section&id=%28I%29%20Main%20Business%20Revenue%20and%20Cost%20Analysis) The company's main business revenue increased by **6.35%** year-on-year, primarily driven by automotive parts business expansion and mold sales growth. Operating costs increased by **10.41%** with revenue. Gross profit margins across product lines generally declined, with mold gross profit margin decreasing by **10.39 percentage points** Analysis of Changes in Income Statement and Cash Flow Statement Items (Unit: Yuan) | Item | Current Period Amount | Prior Period Amount | Change Ratio (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 856,933,382.27 | 805,800,846.20 | 6.35 | | Operating Cost | 621,355,491.35 | 562,785,957.76 | 10.41 | | Financial Expenses | 2,953,292.77 | 1,837,820.84 | 60.70 | | Net Cash Flow from Operating Activities | 100,993,010.18 | 51,176,870.97 | 97.34 | | Net Cash Flow from Investing Activities | -246,935,612.43 | -53,557,543.70 | -361.07 | | Net Cash Flow from Financing Activities | 207,548,504.16 | -5,039,170.54 | 4,218.70 | | R&D Expenses | 34,582,126.94 | 32,471,614.88 | 6.50 | - Operating revenue growth was primarily driven by a **5.59%** increase in automotive parts sales revenue (accounting for **67.54%** of operating revenue) and a **36.30%** increase in mold sales revenue[51](index=51&type=chunk) - Financial expenses increased by **60.70%**, mainly due to increased exchange losses from RMB appreciation[51](index=51&type=chunk) Changes in Gross Profit Margin by Main Product | Product Category | 2017 Gross Profit Margin (%) | Gross Profit Margin Change from Prior Year (%) | | :--- | :--- | :--- | | Automotive Plastic Parts | 27.88 | -2.32 percentage points | | Electrical Appliance Plastic Parts | 27.58 | -0.45 percentage points | | Consumer Electronics Plastic Parts | 28.62 | -1.28 percentage points | | Molds | 20.42 | -10.39 percentage points | - Sales to the top five customers accounted for **61.65%** of total annual sales, while purchases from the top five suppliers accounted for **26.60%** of total annual purchases[60](index=60&type=chunk) [(II) Changes in Non-Core Business Profit](index=17&type=section&id=%28II%29%20Changes%20in%20Non-Core%20Business%20Profit) Significant changes in non-core business profit are mainly reflected in non-recurring gains and losses items, such as government subsidies and wealth management income from raised funds - Changes in non-core business profit primarily refer to non-recurring gains and losses items, such as government subsidies and wealth management income from raised funds[65](index=65&type=chunk) [(III) Analysis of Asset and Liability Structure](index=17&type=section&id=%28III%29%20Analysis%20of%20Asset%20and%20Liability%20Structure) At the end of the reporting period, the company's total assets increased by **40.88%** year-on-year, and net assets attributable to shareholders of the listed company increased by **86.55%**, mainly due to IPO proceeds. Short-term borrowings within current liabilities significantly decreased by **100%**, while other current assets substantially increased due to the purchase of bank wealth management products Changes in Major Assets and Liabilities (Unit: Yuan) | Item Name | Current Period End Amount | Proportion of Total Assets at Current Period End (%) | Prior Period End Amount | Proportion of Total Assets at Prior Period End (%) | Change Ratio of Current Period End Amount vs. Prior Period End Amount (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 116,804,213.51 | 11.33 | 57,002,222.39 | 7.79 | 104.91 | | Prepayments | 12,885,843.74 | 1.25 | 4,517,386.41 | 0.62 | 185.25 | | Other Receivables | 2,972,007.84 | 0.29 | 7,286,882.53 | 1.00 | -59.21 | | Other Current Assets | 159,562,544.92 | 15.47 | 7,668,929.43 | 1.05 | 1,980.64 | | Construction in Progress | 14,770,066.12 | 1.43 | 5,110,857.04 | 0.70 | 188.99 | | Short-term Borrowings | 0.00 | 0.00 | 90,000,000.00 | 12.29 | -100.00 | | Notes Payable | 28,462,435.79 | 2.76 | 18,470,527.54 | 2.52 | 54.10 | | Capital Reserve | 338,190,518.80 | 32.79 | 42,565,082.04 | 5.81 | 694.53 | - Cash and bank balances, other current assets, and capital reserve significantly increased, mainly due to the company receiving proceeds from share issuance and purchasing bank wealth management products[67](index=67&type=chunk) - Short-term borrowings decreased by **100%**, due to the company repaying working capital loans[67](index=67&type=chunk) - Total restricted assets at period-end amounted to **30,933,276.35 yuan**, primarily comprising bank acceptance bill deposits, letter of credit deposits, and notes receivable pledged to banks[68](index=68&type=chunk) [(IV) Industry Operating Information Analysis](index=19&type=section&id=%28IV%29%20Industry%20Operating%20Information%20Analysis) The company operates in the plastic parts manufacturing industry, with products mainly used in automotive, electrical appliance, and consumer electronics sectors. Industry concentration is low, and the company invests heavily in R&D, holding multiple patents. The production model is 'production based on sales,' and fluctuations in plastic pellet prices, the main raw material, significantly impact costs [1 Industry Policies and Position](index=20&type=section&id=1%20Industry%20Policies%20and%20Position) The plastic processing industry is a pillar of China's national economy, driven by 'plastic replacing steel' and 'plastic replacing wood' trends, expected to maintain high-speed development. Industry concentration is low, making it difficult to accurately assess the company's position in the plastic parts sub-industry - The plastic processing industry is a pillar of the national economy, driven by 'plastic replacing steel' and 'plastic replacing wood' trends, projected to maintain an average annual market growth rate of **15%** during the '13th Five-Year Plan' period[35](index=35&type=chunk) - The top ten enterprises in China's plastic processing industry account for only **5%** of the market share, indicating low industry concentration[35](index=35&type=chunk)[70](index=70&type=chunk) [2 Products, R&D, and Production Process](index=20&type=section&id=2%20Products%2C%20R%26D%2C%20and%20Production%20Process) The company's main products are automotive, electrical appliance, and consumer electronics plastic parts, with plastic pellets as raw materials. The company has **420 R&D personnel**, accounting for **23.97%** of total employees, and by the end of 2017, held **22 invention patents** and **73 utility model patents**, continuously conducting R&D on technologies such as internal mold extraction, ejection, threaded sleeve return, integrated injection molding for new-generation automotive window motors, and two-color injection molding Main Products and Influencing Factors | Product | Main Downstream Application Areas | Main Price Influencing Factors | | :--- | :--- | :--- | | Automotive Plastic Parts | Automotive sector | Raw material prices, product structure, product lifecycle | | Electrical Appliance Plastic Parts | Electrical appliance sector, mainly circuit breaker structural parts and panels | Raw material prices, product structure, product lifecycle | | Consumer Electronics Plastic Parts | Consumer electronics sector, mainly printers | Raw material prices, product structure, product lifecycle | | Molds | Automotive, electrical appliance, consumer electronics sectors | Raw material prices, product structure, product lifecycle | - The company has **420 full-time R&D and technical personnel**, accounting for **23.97%** of total employees, possessing capabilities for synchronous development with major customers and independent design and development[72](index=72&type=chunk) - The company has obtained **22 invention patents** and **73 utility model patents**, and is actively engaged in R&D for technologies such as internal mold extraction, ejection, threaded sleeve return, integrated injection molding for new-generation automotive window motors, and two-color injection molding[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) [3 Raw Material Procurement and Price Fluctuations](index=23&type=section&id=3%20Raw%20Material%20Procurement%20and%20Price%20Fluctuations) The company's main raw materials are plastic pellets (PA, PP, PBT, PC, etc.), with procurement primarily based on customer demand. In 2017, the average unit prices for PA, PBT, and PC procurement increased, while PP decreased, with raw material price fluctuations directly impacting operating costs Main Raw Material Procurement and Price Changes | Raw Material | Procurement Volume (tons) | Price Change Status | Impact of Price Fluctuations on Operating Costs | | :--- | :--- | :--- | :--- | | Plastic Pellets PA | 5,645.21 | Average procurement unit price increased by approximately 1.50% year-on-year | Rising procurement prices led to increased operating costs | | Plastic Pellets PP | 4,844.61 | Average procurement unit price decreased by approximately 0.64% year-on-year | Decreasing procurement prices led to decreased operating costs | | Plastic Pellets PBT | 1,987.49 | Average procurement unit price increased by approximately 0.66% year-on-year | Rising procurement prices led to increased operating costs | | Plastic Pellets PC | 1,486.19 | Average procurement unit price increased by approximately 12.05% year-on-year | Rising procurement prices led to increased operating costs | - Prices of the company's main raw material plastic pellets are significantly affected by upstream crude oil price fluctuations, with a notable impact on product costs[32](index=32&type=chunk)[78](index=78&type=chunk) [4 Product Sales Status](index=23&type=section&id=4%20Product%20Sales%20Status) The company's products are sold directly to customers without intermediaries, with sales models including consignment, domestic direct sales, and international direct sales. In 2017, the gross profit margin for the plastic parts manufacturing industry was **27.11%**, a year-on-year decrease of **2.72 percentage points** - The company's products are sold directly to customers, with sales models including consignment, domestic direct sales, and international direct sales[79](index=79&type=chunk) Main Business Performance of Plastic Parts Manufacturing Industry | Sub-industry | Operating Revenue (10,000 Yuan) | Operating Cost (10,000 Yuan) | Gross Profit Margin (%) | Gross Profit Margin Change from Prior Year (%) | | :--- | :--- | :--- | :--- | :--- | | Plastic Parts Manufacturing Industry | 84,251.12 | 61,409.22 | 27.11 | -2.72 | [5 Environmental Protection and Safety Status](index=24&type=section&id=5%20Environmental%20Protection%20and%20Safety%20Status) The company and its subsidiaries are not classified as key polluting units, generating only small amounts of waste gas and noise during production. During the reporting period, the company strictly adhered to environmental regulations, with no major safety production accidents or environmental violations. Environmental investment in 2017 was **603,400 yuan**, accounting for **0.07%** of operating revenue - The company and its subsidiaries are not listed as key polluting units by environmental protection authorities and strictly comply with national environmental protection laws and regulations[163](index=163&type=chunk) - Environmental investment in 2017 amounted to **603,400 yuan**, accounting for **0.07%** of operating revenue[84](index=84&type=chunk) [(V) Overall Analysis of External Equity Investments](index=24&type=section&id=%28V%29%20Overall%20Analysis%20of%20External%20Equity%20Investments) As of the end of the reporting period, the company's external equity investments included **9 wholly-owned or controlling subsidiaries**, **1 sub-subsidiary**, **2 branches**, and **2 associate companies** - The company's external equity investments include **9 wholly-owned or controlling subsidiaries**, **1 sub-subsidiary**, **2 branches**, and **2 associate companies**[85](index=85&type=chunk) [(VI) Significant Asset and Equity Sales](index=25&type=section&id=%28VI%29%20Significant%20Asset%20and%20Equity%20Sales) The company had no significant asset or equity sales during the reporting period [(VII) Operating Performance of Major Holding and Associate Companies](index=25&type=section&id=%28VII%29%20Operating%20Performance%20of%20Major%20Holding%20and%20Associate%20Companies) Details financial data such as registered capital, total assets, net assets, and net profit for the company's major holding and associate subsidiaries, covering **9 subsidiaries** including Shanghai Tianhai, Jiangsu Yihang, and Dongguan Tianlong Financial Data of Major Holding and Associate Companies (Unit: 10,000 Yuan) | Company Abbreviation | Registered Capital (10,000 Yuan) | Total Assets (10,000 Yuan) | Net Assets (10,000 Yuan) | Net Profit (10,000 Yuan) | | :--- | :--- | :--- | :--- | :--- | | Shanghai Tianhai | 3,293.36 | 16,187.93 | 9,839.74 | 1,538.34 | | Jiangsu Yihang | 2,500.00 | 13,823.43 | 7,915.84 | 1,763.50 | | Dongguan Tianlong | 145 USD | 7,259.82 | 4,064.79 | 1,505.94 | | Fuzhou Tianlong | 660.00 | 1,339.93 | 944.49 | 250.78 | | Sanhe Tianlong | 100 USD | 1,369.63 | 1,369.63 | -69.48 | | Tianlong Mold | 600.00 | 1,767.83 | 1,367.86 | -125.08 | | Changchun Tianlong | 3,500.00 | 5,555.11 | 2,830.79 | 108.88 | | Langfang Tianlong | 2,500.00 | 5,746.79 | 3,604.42 | 697.90 | | Chengdu Tianlong | 3,000.00 | 3,076.56 | 2,221.40 | -405.87 | [(VIII) Structured Entities](index=26&type=section&id=%28VIII%29%20Structured%20Entities) The company had no controlled structured entities during the reporting period [Company's Future Development Outlook](index=26&type=section&id=III.%20Company%27s%20Future%20Development%20Outlook) The company will focus on the 'continuous improvement, steady growth' strategy, deeply exploring existing market potential, addressing high-end customer needs, strengthening high-value-added product development, continuously improving development and manufacturing technologies, and actively expanding into emerging application areas such as medical devices, aerospace, new energy, and intelligent driving, while also seeking external growth opportunities through M&A [(I) Industry Development Landscape and Trends](index=26&type=section&id=%28I%29%20Industry%20Development%20Landscape%20and%20Trends) The plastic products industry is transitioning from high-speed to medium-speed stable growth, with future focus on functionalization, lightweighting, ecological design, and micro-molding technologies. The automotive industry's growth is slowing but still has development potential. The mold industry will prioritize strengthening, improving product precision and lifespan, to meet the demands of strategic emerging industries like automotive, home appliances, and medical - The plastic processing industry is transitioning from high-speed to medium-speed stable growth, with future development directions in functionalization, lightweighting, ecological design, and micro-molding[89](index=89&type=chunk) - Automotive production and sales growth slowed in 2017, and is expected to continue a slow growth trend in 2018[90](index=90&type=chunk)[91](index=91&type=chunk) - The mold industry will focus on strengthening, improving product precision and lifespan, to meet the demands of downstream industries such as automotive, home appliances, and medical[91](index=91&type=chunk)[92](index=92&type=chunk) [(II) Company Development Strategy and Measures](index=27&type=section&id=%28II%29%20Company%20Development%20Strategy%20and%20Measures) The company adheres to the 'continuous improvement, steady growth' strategy, achieved by deeply exploring existing market potential, closely monitoring high-end customer needs, strengthening high-value-added product development, continuously improving development and manufacturing technologies, and expanding into emerging application areas such as medical devices, aerospace, new energy, and intelligent driving - The company's development strategy is 'continuous improvement, steady growth,' focusing on precision mold development, design, and precision injection molding[93](index=93&type=chunk) - Strategic measures include deeply exploring the potential of existing product markets, closely monitoring high-end customer needs, strengthening high-value-added product development, and continuously improving development and manufacturing technologies[93](index=93&type=chunk) - Actively expanding into high-end markets such as medical devices and aerospace, and focusing on emerging fields like new energy, intelligent driving, and connected vehicles[94](index=94&type=chunk) [(III) 2018 Operating Plan](index=27&type=section&id=%28III%29%202018%20Operating%20Plan) The company's 2018 operating plan includes market expansion (leveraging existing customers, seeking cooperation with large multinational enterprises, entering medical/aerospace sectors), product development (enhancing synchronous development capabilities, focusing on high-end customer needs, timely attention to consumer electronics), technology development (establishing R&D centers, introducing advanced technologies, hiring experts), human resources (improving employee quality, perfecting incentive mechanisms), and M&A plans (focusing on emerging fields like new energy and intelligent driving) - Market expansion plan: deeply explore the potential of existing customers, seek cooperation with more large multinational enterprises, and attempt to enter the medical device and aerospace plastic parts manufacturing sectors[95](index=95&type=chunk) - Product development plan: enhance synchronous development capabilities for high-end automotive customers, continuously improve the quality of electrical appliance products, and improve mold development capabilities for high-end application areas[95](index=95&type=chunk)[96](index=96&type=chunk) - Technology development plan: establish a unified R&D center, increase R&D investment, introduce advanced technical equipment, and engage domestic and international experts for guidance[96](index=96&type=chunk) - M&A plan: actively seek potential acquisition targets globally, with a focus on emerging fields such as new energy, intelligent driving, and connected vehicles[96](index=96&type=chunk) [(IV) Key Operating Risk Warnings](index=28&type=section&id=%28IV%29%20Key%20Operating%20Risk%20Warnings) The company faces challenges such as intensified market competition, fluctuations in the downstream automotive industry, raw material price volatility, loss of core technology and talent, management risks from expanding operations, and internal management risks - Market competition risk: The precision plastic parts manufacturing market is increasingly competitive, and the company still lags behind internationally renowned manufacturers in technology, talent, equipment, and R&D investment[98](index=98&type=chunk) - Downstream industry risk: The company's operating performance is affected by fluctuations in downstream industries such as automotive and electrical appliances; a slowdown in the automotive market may lead to decreased production and sales[98](index=98&type=chunk) - Raw material price fluctuation risk: Plastic pellet prices are influenced by crude oil prices, which may cause fluctuations in main business costs and affect the stability of operating performance[99](index=99&type=chunk) - Core technology and talent loss risk: Industry talent competition is intensifying; failure to effectively stabilize the talent team or improper management may negatively impact the company's development[99](index=99&type=chunk)[100](index=100&type=chunk) [Explanation of Non-Disclosure According to Standards](index=29&type=section&id=IV.%20Explanation%20of%20Non-Disclosure%20According%20to%20Standards) The company did not fail to disclose information according to standards due to inapplicability of standard provisions or special reasons such as state secrets or commercial secrets [Significant Matters](index=29&type=section&id=Part%20V%20Significant%20Matters) This section details important corporate events, including profit distribution plans, fulfillment of commitments, related party transactions, and significant contracts [Profit Distribution and Capital Reserve Conversion Plan](index=29&type=section&id=I.%20Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20Plan) The company has formulated an active profit distribution policy, prioritizing cash dividends, with a cash dividend ratio of no less than **20%** of distributable profit when there are no major investment plans. The 2017 profit distribution plan proposes a cash dividend of **2.5 yuan (tax inclusive) per 10 shares** and a capital reserve conversion of **4 shares per 10 shares**, increasing the total share capital to **140 million shares** - The company's profit distribution policy adheres to the principle of equal rights for equal shares and actively rewarding investors, prioritizing cash dividends[102](index=102&type=chunk) - In the absence of major investment plans or significant cash expenditures, the single-year cash dividend will not be less than **20%** of the distributable profit for the year[103](index=103&type=chunk) 2017 Profit Distribution Plan | Dividend Year | Dividend per 10 Shares (Yuan) (Tax Inclusive) | Shares Converted per 10 Shares (Shares) | Cash Dividend Amount (Tax Inclusive) | Proportion of Net Profit Attributable to Ordinary Shareholders of Listed Company in Consolidated Financial Statements (%) | | :--- | :--- | :--- | :--- | :--- | | 2017 | 2.50 | 4 | 25,000,000 | 31.86 | - The 2017 profit distribution plan proposes a cash dividend of **2.5 yuan (tax inclusive) per 10 shares** and a capital reserve conversion of **4 shares per 10 shares**, increasing the total share capital to **140 million shares** after conversion[106](index=106&type=chunk) [Fulfillment of Commitments](index=31&type=section&id=II.%20Fulfillment%20of%20Commitments) The company's actual controllers, controlling shareholders, and directors, supervisors, and senior management all strictly fulfilled various commitments related to the initial public offering during the reporting period, including share lock-up, stock price stabilization, information disclosure authenticity, shareholding and reduction intentions, dividends, resolution of horizontal competition, related party transactions, and land title defects - Actual controllers Hu Jianli and Zhang Xiujun committed to a share lock-up period of **36 months** from the listing date, extended by **6 months** if the stock price falls below the offering price[111](index=111&type=chunk)[112](index=112&type=chunk) - Controlling shareholder Antai Holdings committed to a share lock-up period of **36 months** from the listing date, extended by **6 months** if the stock price falls below the offering price, and the reduction price will not be lower than the offering price[114](index=114&type=chunk) - The company, controlling shareholders, and directors, supervisors, and senior management committed to initiating stock price stabilization measures such as share repurchases and share increases when stock price stabilization conditions are triggered[117](index=117&type=chunk)[118](index=118&type=chunk)[120](index=120&type=chunk)[122](index=122&type=chunk) - Actual controllers and controlling shareholders committed to resolving horizontal competition and minimizing related party transactions, while ensuring the fairness of related party transactions[129](index=129&type=chunk)[130](index=130&type=chunk) - Actual controllers Hu Jianli and Zhang Xiujun committed to bearing all losses incurred by Dongguan Tianlong due to defects in leased properties or relocation[132](index=132&type=chunk) [Fund Occupation and Debt Clearance Status](index=37&type=section&id=III.%20Fund%20Occupation%20and%20Debt%20Clearance%20Status) The company had no non-operating fund occupation by controlling shareholders or their related parties during the reporting period [Explanation of Audit Report Opinion](index=37&type=section&id=IV.%20Explanation%20of%20Audit%20Report%20Opinion) The company received a standard unqualified audit report from Tianjian Certified Public Accountants (Special General Partnership) - Tianjian Certified Public Accountants (Special General Partnership) issued a standard unqualified audit report for the company[6](index=6&type=chunk) [Explanation of Changes in Accounting Policies and Estimates](index=37&type=section&id=V.%20Explanation%20of%20Changes%20in%20Accounting%20Policies%20and%20Estimates) The company changed its accounting policies in accordance with the Ministry of Finance's newly issued 'Accounting Standard for Business Enterprises No. 42 – Non-current Assets Held for Sale, Disposal Groups and Discontinued Operations' and the revised 'Accounting Standard for Business Enterprises No. 16 – Government Grants,' and implemented the 'Notice of the Ministry of Finance on Revising and Issuing the Format of Financial Statements for General Enterprises,' retrospectively adjusting 2016 operating income, expenses, and asset disposal gains - The company adopted 'Accounting Standard for Business Enterprises No. 42 – Non-current Assets Held for Sale, Disposal Groups and Discontinued Operations' from May 28, 2017, and the revised 'Accounting Standard for Business Enterprises No. 16 – Government Grants' from June 12, 2017, applying the prospective application method[133](index=133&type=chunk) - The company implemented the 'Notice of the Ministry of Finance on Revising and Issuing the Format of Financial Statements for General Enterprises,' retrospectively adjusting 2016 non-operating income by a reduction of **321,114.85 yuan**, non-operating expenses by a reduction of **428,470.65 yuan**, and asset disposal gains by a reduction of **107,355.80 yuan**[134](index=134&type=chunk) [Appointment of Accounting Firm](index=37&type=section&id=VI.%20Appointment%20of%20Accounting%20Firm) The company re-appointed Tianjian Certified Public Accountants (Special General Partnership) as its 2017 audit firm, with an audit fee of **800,000 yuan** and an audit tenure of **6 years** - The company re-appointed Tianjian Certified Public Accountants (Special General Partnership) as its 2017 audit firm[136](index=136&type=chunk) - Domestic accounting firm remuneration is **800,000 yuan**, with an audit tenure of **6 years**[136](index=136&type=chunk) [Risk of Suspension of Listing](index=38&type=section&id=VII.%20Risk%20of%20Suspension%20of%20Listing) The company does not face the risk of suspension of listing [Risk of Termination of Listing](index=38&type=section&id=VIII.%20Risk%20of%20Termination%20of%20Listing) The company does not face the risk of termination of listing [Bankruptcy and Reorganization Matters](index=38&type=section&id=IX.%20Bankruptcy%20and%20Reorganization%20Matters) The company had no bankruptcy and reorganization matters during the reporting period [Significant Litigation and Arbitration Matters](index=38&type=section&id=X.%20Significant%20Litigation%20and%20Arbitration%20Matters) During the reporting period, the company had two significant litigation and arbitration matters: the lease contract dispute between Beijing Tianlong Yihang Automotive Parts Co., Ltd. and Beijing Zhonghai Xingye Safety Glass Co., Ltd. has been fully executed and closed, and the equipment purchase and sales contract dispute between Tianlong Co., Ltd. and Ningbo Daai Machinery Co., Ltd. has also been settled through a civil mediation statement - The lease contract dispute between Beijing Tianlong Yihang Automotive Parts Co., Ltd. and Beijing Zhonghai Xingye Safety Glass Co., Ltd., involving **3 million yuan**, was ruled in 2016 and fully executed and closed in 2017[138](index=138&type=chunk)[140](index=140&type=chunk) - The equipment purchase and sales contract dispute between Tianlong Co., Ltd. and Ningbo Daai Machinery Co., Ltd., involving **439,600 yuan**, was settled through a civil mediation statement on March 31, 2017[139](index=139&type=chunk)[141](index=141&type=chunk) [Penalties and Rectification Status](index=40&type=section&id=XI.%20Penalties%20and%20Rectification%20Status) During the reporting period, the company, its directors, supervisors, senior management, controlling shareholders, and actual controllers were not penalized by securities regulatory agencies [Explanation of Integrity Status](index=40&type=section&id=XII.%20Explanation%20of%20Integrity%20Status) During the reporting period, the company, its controlling shareholders, and actual controllers had no adverse integrity issues such as failure to comply with effective court judgments or significant overdue debts - During the reporting period, the company, its controlling shareholders, and actual controllers had no adverse integrity issues such as failure to comply with effective court judgments or significant overdue debts[142](index=142&type=chunk) [Equity Incentive and Employee Stock Ownership Plans](index=40&type=section&id=XIII.%20Equity%20Incentive%20and%20Employee%20Stock%20Ownership%20Plans) The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period [Significant Related Party Transactions](index=41&type=section&id=XIV.%20Significant%20Related%20Party%20Transactions) During the reporting period, the company engaged in related party transactions related to daily operations, including leasing properties to related parties, paying utility fees on behalf of related parties, and leasing properties from related parties. All these transactions were conducted at market prices and did not meet the conditions for Board of Directors' review Related Party Transactions Related to Daily Operations (Unit: Yuan) | Related Party | Related Party Transaction Type | Related Party Transaction Content | Related Party Transaction Amount | | :--- | :--- | :--- | :--- | | Antai Holdings | Other Outflows | Leasing Property | 763,932.00 | | Ningbo Huiheng Electronics Co., Ltd. | Other Inflows | Leasing Out Property | 1,222,149.52 | | Ningbo Huiheng Electronics Co., Ltd. | Other | Paying Utility Fees on Behalf of Related Party | 83,924.42 | - All related party transactions were conducted at market prices and did not meet the conditions for Board of Directors' review[144](index=144&type=chunk) [Fulfillment of Significant Contracts](index=42&type=section&id=XV.%20Fulfillment%20of%20Significant%20Contracts) During the reporting period, the company and its subsidiaries leased **18 properties or sites** for operations, production, offices, and employee dormitories, and leased out **4 idle properties**. The company provided guarantees to subsidiaries, mainly for supplier payment contracts and bill pool business. The company used raised funds to purchase principal-protected bank wealth management products, with an outstanding balance of **152 million yuan** at period-end [(I) Leasing Matters](index=42&type=section&id=%28I%29%20Leasing%20Matters) At the end of the reporting period, the company and its subsidiaries leased a total of **18 properties or sites** for operational, production, office, and employee dormitory purposes, and leased out **4 idle properties**. Related party leases (leasing property from Antai Holdings, leasing out to Ningbo Huiheng Electronics) were all transacted at market prices - The company and its subsidiaries leased a total of **18 properties or sites** for operational, production, office, and employee dormitory purposes[148](index=148&type=chunk) - The company and its subsidiaries leased out a total of **4 idle properties**[148](index=148&type=chunk) - The company's lease of certain properties from Antai Holdings for canteens and employee dormitories, and the company's lease of idle factory buildings to Ningbo Huiheng Electronics Co., Ltd., were all transacted at market prices[149](index=149&type=chunk) [(II) Guarantees](index=46&type=section&id=%28II%29%20Guarantees) At the end of the reporting period, the company's total guarantee balance for subsidiaries was **5.943 million yuan**, accounting for **0.74%** of the company's net assets. Guarantees were mainly used for applying for longer payment terms from suppliers and for group bill pool business. No guarantee default liabilities occurred during the reporting period Company Total Guarantee Amount (Unit: Yuan) | Indicator | Amount | | :--- | :--- | | Total Guarantee Balance for Subsidiaries at Period-End (B) | 5,943,038.49 | | Total Guarantee Amount (A+B) | 5,943,038.49 | | Proportion of Total Guarantee Amount to Company's Net Assets (%) | 0.74 | - Guarantees for subsidiaries were mainly used to apply for longer payment terms from suppliers and to obtain credit for issuing new notes payable through group bill pool operations[152](index=152&type=chunk) - No guarantee default liabilities actually occurred for subsidiaries during the reporting period[152](index=152&type=chunk) [(III) Entrusted Wealth Management](index=47&type=section&id=%28III%29%20Entrusted%20Wealth%20Management) During the reporting period, the company used raised funds to entrust banks to purchase principal-protected wealth management products, with a transaction amount of **169 million yuan** and an outstanding balance of **152 million yuan** at period-end, all approved through legal procedures Overall Entrusted Wealth Management Status (Unit: Yuan) | Type | Source of Funds | Transaction Amount | Outstanding Balance | Overdue Unrecovered Amount | | :--- | :--- | :--- | :--- | :--- | | Principal-Protected Bank Wealth Management Products | Raised Funds | 169,000,000 | 152,000,000 | 0 | - All entrusted wealth management products were principal-protected bank wealth management products and were all approved through legal procedures[157](index=157&type=chunk)[158](index=158&type=chunk)[161](index=161&type=chunk) [(IV) Other Significant Contracts](index=50&type=section&id=%28IV%29%20Other%20Significant%20Contracts) The company had no other significant contracts during the reporting period [Other Significant Matters](index=51&type=section&id=XVI.%20Other%20Significant%20Matters) The company had no other significant matters during the reporting period [Fulfillment of Social Responsibilities](index=51&type=section&id=XVII.%20Fulfillment%20of%20Social%20Responsibilities) The company did not disclose its poverty alleviation efforts or social responsibility work. The company and its subsidiaries are not classified as key polluting units, strictly comply with environmental laws and regulations, and had no environmental violations - The company and its subsidiaries are not listed as key polluting units by environmental protection authorities and strictly comply with national environmental protection laws and regulations[163](index=163&type=chunk) - During the reporting period, the company and its subsidiaries did not receive administrative penalties from environmental protection authorities for environmental violations[163](index=163&type=chunk) [Convertible Corporate Bonds](index=52&type=section&id=XVIII.%20Convertible%20Corporate%20Bonds) The company had no convertible corporate bonds during the reporting period [Changes in Ordinary Shares and Shareholder Information](index=52&type=section&id=Part%20VI%20Changes%20in%20Ordinary%20Shares%20and%20Shareholder%20Information) This section covers the company's share capital changes, securities issuance, and provides detailed information on its shareholders and actual controllers [Changes in Ordinary Share Capital](index=52&type=section&id=I.%20Changes%20in%20Ordinary%20Share%20Capital) In 2017, the company's initial public offering of **25 million A-shares** increased total share capital from **75 million shares** to **100 million shares**. This change significantly increased net assets attributable to shareholders of the listed company but diluted earnings per share Changes in Ordinary Share Capital (Unit: Share) | Category | Quantity Before This Change | Increase/Decrease in This Change (+,-) New Share Issuance | Quantity After This Change | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 75,000,000 | 0 | 75,000,000 | | II. Unrestricted Tradable Shares | 0 | 25,000,000 | 25,000,000 | | III. Total Ordinary Shares | 75,000,000 | 25,000,000 | 100,000,000 | - The company listed on January 10, 2017, with an initial public offering of **25 million shares**, increasing total share capital from **75 million shares** to **100 million shares**[169](index=169&type=chunk) - The change in share capital led to the dilution of basic earnings per share and net assets per share in 2017; if calculated based on pre-issuance share capital, EPS and net assets per share would be higher[170](index=170&type=chunk) Changes in Restricted Shares (Unit: Share) | Shareholder Name | Restricted Shares at Year-End | Reason for Restriction | Date of Lifting Restriction | | :--- | :--- | :--- | :--- | | Zhejiang Antai Holdings Group Co., Ltd. | 49,065,000 | IPO Lock-up | January 11, 2020 | | Zhang Yihua | 11,340,000 | IPO Lock-up | January 11, 2020 | | Ningbo Junrui Investment Partnership (Limited Partnership) | 6,000,000 | IPO Lock-up | January 11, 2020 | [Securities Issuance and Listing Status](index=54&type=section&id=II.%20Securities%20Issuance%20and%20Listing%20Status) The company issued **25 million RMB ordinary shares (A-shares)** on December 28, 2016, at an offering price of **14.63 yuan/share**, and listed on the Shanghai Stock Exchange on January 10, 2017. This issuance increased the company's registered capital and total shares, significantly reducing the asset-liability ratio Securities Issuance Status (Unit: Share) | Type of Stock and Derivative Securities | Issuance Date | Issuance Price (or Interest Rate) | Issuance Quantity | Listing Date | Quantity Approved for Listing and Trading | | :--- | :--- | :--- | :--- | :--- | :--- | | RMB Ordinary Shares (A-shares) | December 28, 2016 | 14.63 | 25,000,000 | January 10, 2017 | 25,000,000 | - After the public offering, the company's registered capital increased from **75 million yuan** to **100 million yuan**, and total shares increased from **75 million shares** to **100 million shares**[174](index=174&type=chunk) - The asset-liability ratio at period-end decreased from **39.21%** at the beginning of the period to **20.27%**, mainly due to IPO proceeds[174](index=174&type=chunk) [Shareholder and Actual Controller Information](index=55&type=section&id=III.%20Shareholder%20and%20Actual%20Controller%20Information) As of the end of the reporting period, the company had **8,214 ordinary shareholders**. The controlling shareholder is Zhejiang Antai Holdings Group Co., Ltd., and the actual controllers are Hu Jianli and Zhang Xiujun. Among the top ten shareholders, Zhejiang Antai Holdings Group Co., Ltd. held **49.07%**, Zhang Yihua held **11.34%**, and Ningbo Junrui Investment Partnership (Limited Partnership) held **6%** - As of the end of the reporting period, the total number of ordinary shareholders was **8,214**[175](index=175&type=chunk) Top Ten Shareholders' Shareholding Status (Unit: Share) | Shareholder Name | Shares Held at Period-End | Proportion (%) | Number of Restricted Shares Held | Share Status | Quantity | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhejiang Antai Holdings Group Co., Ltd. | 49,065,000 | 49.07 | 49,065,000 | Pledged | 23,625,000 | | Zhang Yihua | 11,340,000 | 11.34 | 11,340,000 | None | 0 | | Ningbo Junrui Investment Partnership (Limited Partnership) | 6,000,000 | 6.00 | 6,000,000 | Pledged | 4,355,000 | - Zhejiang Antai Holdings Group Co., Ltd. is the company's controlling shareholder, and actual controllers Hu Jianli and Zhang Xiujun jointly hold **54.47%** of the company's equity[181](index=181&type=chunk) [Detailed Information on Controlling Shareholder and Actual Controllers](index=57&type=section&id=IV.%20Detailed%20Information%20on%20Controlling%20Shareholder%20and%20Actual%20Controllers) The controlling shareholder is Zhejiang Antai Holdings Group Co., Ltd., with legal representative Hu Jianli. The actual controllers are Hu Jianli and Zhang Xiujun, with Hu Jianli serving as the company's Chairman and General Manager, and Zhang Xiujun as Antai Holdings' General Manager - Controlling Shareholder: Zhejiang Antai Holdings Group Co., Ltd., registered capital **50 million yuan**, business scope includes industrial investment, wholesale and retail of plastic raw materials[182](index=182&type=chunk) - Actual Controllers: Hu Jianli (Chairman and General Manager) and Zhang Xiujun (Antai Holdings General Manager), both without permanent residency abroad[184](index=184&type=chunk) [Other Major Corporate Shareholders](index=59&type=section&id=V.%20Other%20Major%20Corporate%20Shareholders) The company had no other corporate shareholders holding more than **10%** of shares during the reporting period [Share Reduction Restrictions](index=59&type=section&id=VI.%20Share%20Reduction%20Restrictions) The company had no explanation regarding share reduction restrictions during the reporting period [Preferred Shares Information](index=59&type=section&id=Part%20VII%20Preferred%20Shares%20Information) This section confirms the absence of preferred shares during the reporting period [Preferred Shares Status](index=59&type=section&id=Preferred%20Shares%20Status) The company had no preferred shares during the reporting period [Directors, Supervisors, Senior Management, and Employees](index=60&type=section&id=Part%20VIII%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Employees) This section provides information on the shareholdings and remuneration of directors, supervisors, and senior management, their appointments, and the company's overall employee structure and training initiatives [Shareholding and Remuneration of Directors, Supervisors, and Senior Management](index=60&type=section&id=I.%20Shareholding%20and%20Remuneration%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, the shareholdings of the company's directors, supervisors, and senior management remained unchanged. The total pre-tax remuneration actually received by all directors, supervisors, and senior management was **4.1974 million yuan** Shareholding and Remuneration of Directors, Supervisors, and Senior Management (Unit: Share, 10,000 Yuan) | Name | Position | Shares Held at Year-Start | Shares Held at Year-End | Change in Shares During the Year | Total Pre-tax Remuneration Received from Company During Reporting Period (10,000 Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Hu Jianli | Chairman and General Manager | 0 | 0 | 0 | 41 | | Shen Zhaohui | Director and Deputy General Manager | 525,000 | 525,000 | 0 | 99.17 | | Zhang Yihua | Director | 11,340,000 | 11,340,000 | 0 | 45.99 | | Zhang Yuxin | Director | 1,357,500 | 1,357,500 | 0 | 65.2 | | Yu Zhongcan | CFO | 487,500 | 487,500 | 0 | 46.92 | | Yu Jianfeng | Deputy General Manager and Board Secretary | 487,500 | 487,500 | 0 | 46.92 | | Total | / | 14,197,500 | 14,197,500 | 0 | 419.74 | - During the reporting period, the shareholdings of the company's directors, supervisors, and senior management remained unchanged[189](index=189&type=chunk) [Appointment Status of Directors, Supervisors, and Senior Management](index=62&type=section&id=II.%20Appointment%20Status%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) Discloses the appointment status of the company's directors, supervisors, and senior management in shareholder entities and other entities, with Hu Jianli serving as Executive Director at Antai Holdings and as director or supervisor in companies such as US Burteck - Hu Jianli currently serves as Chairman and General Manager of Tianlong Co., Ltd., and concurrently holds multiple subsidiary positions such as Executive Director and General Manager of Shanghai Tianhai, Chairman of Fuzhou Tianlong, and Chairman of Dongguan Tianlong[191](index=191&type=chunk) - Hu Jianli serves as Executive Director at the shareholder entity Zhejiang Antai Holdings Group Co., Ltd[193](index=193&type=chunk) - Several directors, supervisors, and senior management hold concurrent positions in other entities, such as Zhang Yihua as Associate Professor at Nanjing University of Aeronautics and Astronautics, and Ren Hao as Professor at Tongji University[191](index=191&type=chunk)[194](index=194&type=chunk)[195](index=195&type=chunk) [Remuneration Decision and Payment for Directors, Supervisors, and Senior Management](index=63&type=section&id=III.%20Remuneration%20Decision%20and%20Payment%20for%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) Remuneration for directors, supervisors, and senior management is determined by the Board's Remuneration and Assessment Committee based on position value, market orientation, and performance evaluation results, and has been actually paid. The total remuneration actually received by all directors, supervisors, and senior management during the reporting period was **4.1974 million yuan** - Remuneration for directors, supervisors, and senior management is formulated by the Board's Remuneration and Assessment Committee based on position value and market orientation, and is linked to performance[196](index=196&type=chunk) - The total remuneration actually received by all directors, supervisors, and senior management at the end of the reporting period was **4.1974 million yuan**[196](index=196&type=chunk) [Changes in Directors, Supervisors, and Senior Management](index=63&type=section&id=IV.%20Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) No changes occurred in the company's directors, supervisors, and senior management during the reporting period [Penalties Received in the Past Three Years](index=63&type=section&id=V.%20Penalties%20Received%20in%20the%20Past%20Three%20Years) The company has not been penalized by securities regulatory agencies in the past three years during the reporting period [Employee Status and Remuneration Training](index=64&type=section&id=VI.%20Employee%20Status%20and%20Remuneration%20Training) The company has a total of **1,752 employees**, with production personnel accounting for the largest proportion. The company has established a comprehensive remuneration, welfare, and performance appraisal system, and places high importance on talent development, formulating training plans to enhance employee quality and technical skills Employee Professional Structure | Professional Category | Number of Personnel in Category | | :--- | :--- | | Production Personnel | 925 | | Sales Personnel | 52 | | Technical Personnel | 420 | | Financial Personnel | 33 | | Administrative Personnel | 322 | | Total | 1,752 | - The company has established a comprehensive remuneration and welfare system and performance appraisal system, implementing a competitive remuneration strategy, and actively exploring long-term incentive mechanisms[199](index=199&type=chunk) - The company places high importance on talent development, organizing **5 training sessions** for middle and senior management in 2017, and will continue to cultivate key personnel in precision mold development and design, injection molding process engineers, and middle and senior management in 2018[200](index=200&type=chunk) - Total labor outsourcing hours during the reporting period were **12,969.5 hours**, with total remuneration paid of **253,400.5 yuan**[201](index=201&type=chunk)[202](index=202&type=chunk) [Corporate Governance](index=65&type=section&id=Part%20IX%20Corporate%20Governance) This section describes the company's governance structure, the performance of its board and supervisory committees, and its commitment to independence and internal control [Corporate Governance Structure and Operation](index=65&type=section&id=I.%20Corporate%20Governance%20Structure%20and%20Operation) The company has established a sound corporate governance system in accordance with laws and regulations such as the 'Company Law' and 'Securities Law,' including the operating mechanisms of the General Meeting of Shareholders, Board of Directors, Board of Supervisors, and their special committees. During the reporting period, all institutions operated independently and effectively, with no major violations or irregularities - The company has established a sound corporate governance system, including the 'Articles of Association,' 'Rules of Procedure for General Meetings of Shareholders,' 'Rules of Procedure for Board Meetings,' and 'Rules of Procedure for Board of Supervisors Meetings'[203](index=203&type=chunk) - During the reporting period, the company's General Meeting of Shareholders, Board of Directors, and Board of Supervisors all operated independently and effectively, with no major violations or irregularities[203](index=203&type=chunk)[204](index=204&type=chunk) - The company and its controlling shareholder are independent in terms of personnel, assets, finance, organizational structure, and business operations, and the controlling shareholder did not interfere with the company's decision-making and operating activities[205](index=205&type=chunk) - The company strictly fulfills its information disclosure obligations, disclosing information in a timely, accurate, and complete manner through designated media and websites, and strengthening investor relations management[205](index=205&type=chunk) [General Meeting of Shareholders Convening Status](index=65&type=section&id=II.%20General%20Meeting%20of%20Shareholders%20Convening%20Status) During the reporting period, the company held **1 General Meeting of Shareholders**, combining on-site meetings with online voting. All proposals were approved, and the convening and holding procedures were legal and effective - During the reporting period, the company held **1 General Meeting of Shareholders**, combining on-site meetings with online voting[207](index=207&type=chunk) - All proposals reviewed were approved, and the convening and holding procedures complied with relevant laws, regulations, and the company's articles of association[207](index=207&type=chunk) [Board of Directors' Performance of Duties](index=66&type=section&id=III.%20Board%20of%20Directors%27%20Performance%20of%20Duties) During the reporting period, the company held

[Important Notice](index=3&type=section&id=Important%20Notice) The company's Board of Directors, Supervisory Board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, with no false records, misleading statements, or material omissions - The company's responsible person, the person in charge of accounting work, and the head of the accounting department ensure the truthfulness, accuracy, and completeness of the financial statements[5](index=5&type=chunk) - This company's Q3 2017 report is unaudited[5](index=5&type=chunk) [Company Profile](index=3&type=section&id=Company%20Profile) This section provides an overview of the company's key financial performance and shareholder structure as of the reporting period [Key Financial Data](index=3&type=section&id=Key%20Financial%20Data) In the first three quarters of 2017, the company's total assets and net assets significantly increased by 34.39% and 83.26% respectively due to IPO proceeds. Operating revenue grew by 8.21%, but net profit attributable to shareholders slowed to 4.72%, and non-recurring net profit declined by 8.21%, indicating pressure on core business profitability. Operating cash flow showed strong performance, increasing by 145.89% Key Financial Data for Q1-Q3 2017 | Indicator | Year-to-Date (Jan-Sep) | Prior Year Period (Jan-Sep) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 622,496,001.10 RMB | 575,256,313.59 RMB | 8.21% | | Net Profit Attributable to Shareholders | 64,284,028.41 RMB | 61,384,301.36 RMB | 4.72% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) | 54,880,303.03 RMB | 59,788,450.34 RMB | -8.21% | | Net Cash Flow from Operating Activities | 84,390,707.08 RMB | 34,320,895.50 RMB | 145.89% | | Basic Earnings Per Share (RMB/share) | 0.66 | 0.82 | -19.51% | | Weighted Average Return on Net Assets (%) | 8.58% | 16.10% | Decrease of 7.52 percentage points | | **Indicator** | **As of Report End** | **As of Prior Year-End** | **Change from Year-End (%)** | | Total Assets | 983,744,792.04 RMB | 732,023,824.12 RMB | 34.39% | | Net Assets Attributable to Shareholders | 792,084,611.54 RMB | 432,217,969.63 RMB | 83.26% | - In the first three quarters of 2017, the company's non-recurring gains and losses totaled approximately **9.4 million RMB**, primarily from government subsidies and investment income from idle IPO proceeds[8](index=8&type=chunk)[9](index=9&type=chunk) [Shareholder Information](index=6&type=section&id=Total%20Shareholders%2C%20Top%20Ten%20Shareholders%2C%20and%20Top%20Ten%20Circulating%20Shareholders%20(or%20Unrestricted%20Shareholders)%20Shareholding%20Table%20as%20of%20Report%20End) As of the end of Q3 2017, the company had 8,819 shareholders. Controlling shareholder Zhejiang Antai Holding Group Co., Ltd. holds 49.07%, forming a concerted action relationship with Ningbo Junrui Investment Partnership and Zhang Haidong, indicating a concentrated and stable equity structure - As of the report end, the company had **8,819 shareholders**[11](index=11&type=chunk) Top Five Shareholders' Shareholding | Shareholder Name | Shares Held as of Period End | Percentage (%) | | :--- | :--- | :--- | | Zhejiang Antai Holding Group Co., Ltd. | 49,065,000 | 49.07 | | Zhang Yihua | 11,340,000 | 11.34 | | Ningbo Junrui Investment Partnership (Limited Partnership) | 6,000,000 | 6.00 | | Zhang Haidong | 1,875,000 | 1.88 | | Zhang Yuxin | 1,357,500 | 1.36 | - Controlling shareholder Zhejiang Antai Holding Group Co., Ltd., Ningbo Junrui Investment Partnership (Limited Partnership), and shareholder Zhang Haidong are in a concerted action relationship[12](index=12&type=chunk) [Significant Events](index=7&type=section&id=Significant%20Events) This section details significant financial changes and their causes, primarily driven by the company's Initial Public Offering (IPO) during the reporting period [Analysis of Significant Changes in Key Financial Statement Items and Indicators](index=7&type=section&id=Analysis%20of%20Significant%20Changes%20in%20Key%20Financial%20Statement%20Items%20and%20Indicators) During the reporting period, the company's financial position significantly changed due to its Initial Public Offering (IPO). On the asset side, cash and cash equivalents and other current assets used for wealth management substantially increased; on the liability side, short-term borrowings were cleared due to repayment, significantly reducing the debt ratio; on the equity side, share capital and capital reserve grew substantially due to new share issuance. In terms of cash flow, financing activities saw a significant inflow from IPO proceeds, investing activities had a substantial outflow due to wealth management product purchases and project construction, and operating cash flow remained robust due to increased sales collections Significant Changes in Key Balance Sheet Items | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Cash and Cash Equivalents | 109.68% | Primarily due to IPO proceeds received from share issuance | | Other Current Assets | 1947.98% | Primarily due to the company purchasing bank wealth management products with idle IPO proceeds | | Short-term Borrowings | -100.00% | Primarily due to repayment of working capital loans | | Capital Reserve | 694.45% | Primarily due to new share issuance | | Paid-in Capital (or Share Capital) | 33.33% | Primarily due to new share issuance | Significant Changes in Key Income Statement Items | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Asset Impairment Losses | -207.45% | Primarily due to reversal of impairment losses on accounts receivable and other assets in the current period | | Investment Income | 47.26% | Primarily due to increased income from wealth management products purchased in the current period | Significant Changes in Key Cash Flow Statement Items | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 145.89% | Primarily due to increased cash received from sales of goods and services in the current period | | Net Cash Flow from Investing Activities | 587.08% (Outflow Increase) | Primarily due to increased investment in IPO-funded projects and purchase of bank wealth management products | | Net Cash Flow from Financing Activities | -1653.62% (From Negative to Positive) | Primarily due to IPO proceeds received from new share issuance | [Appendix](index=14&type=section&id=Appendix) This section provides the company's unaudited consolidated and parent company balance sheets as of September 30, 2017, along with consolidated and parent company income statements and cash flow statements for the period of January-September 2017 [Financial Statements](index=14&type=section&id=Financial%20Statements) This section provides the company's unaudited consolidated and parent company balance sheets as of September 30, 2017, along with consolidated and parent company income statements and cash flow statements for the period of January-September 2017 [Consolidated Balance Sheet](index=14&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2017, the company's total assets were **983.74 million RMB**, up 34.39% from the beginning of the year; total liabilities were **176.27 million RMB**, a significant decrease of 38.58%; and total equity attributable to parent company shareholders was **792.08 million RMB**, a substantial increase of 83.26%. The growth in assets and equity is primarily due to IPO proceeds, while the reduction in liabilities is due to short-term loan repayments, optimizing the overall financial structure Key Consolidated Balance Sheet Items (Unit: RMB) | Item | Period-End Balance | Year-Beginning Balance | | :--- | :--- | :--- | | Total Assets | 983,744,792.04 | 732,023,824.12 | | Total Liabilities | 176,268,430.39 | 286,993,526.22 | | Total Equity Attributable to Parent Company Shareholders | 792,084,611.54 | 432,217,969.63 | [Parent Company Balance Sheet](index=16&type=section&id=Parent%20Company%20Balance%20Sheet) As of September 30, 2017, the parent company's total assets were **745.66 million RMB**, up 52.66% from the beginning of the year; total liabilities were **72.87 million RMB**, a significant decrease of 54.11%; and total shareholders' equity was **672.79 million RMB**, an increase of 104.11%. The parent company's financial structure changes align with the consolidated statements, also benefiting from the IPO Key Parent Company Balance Sheet Items (Unit: RMB) | Item | Period-End Balance | Year-Beginning Balance | | :--- | :--- | :--- | | Total Assets | 745,658,614.38 | 488,426,512.49 | | Total Liabilities | 72,866,816.59 | 158,796,523.95 | | Total Shareholders' Equity | 672,791,797.79 | 329,629,988.54 | [Consolidated Income Statement](index=18&type=section&id=Consolidated%20Income%20Statement) 2017年前三季度，公司实现营业总收入6.22亿元，同比增长8.21%；归属于母公司所有者的净利润为6428万元，同比增长4.72%。其中，第三季度（7-9月）单季实现营收2.13亿元，归母净利润1864万元 Key Consolidated Income Statement Items (Unit: RMB) | Item | Year-to-Date (Jan-Sep) | Prior Year Period (Jan-Sep) | | :--- | :--- | :--- | | I. Total Operating Revenue | 622,496,001.10 | 575,256,313.59 | | III. Operating Profit | 74,973,144.03 | 74,449,013.21 | | IV. Total Profit | 80,738,685.45 | 76,316,870.07 | | Net Profit Attributable to Parent Company Shareholders | 64,284,028.41 | 61,384,301.36 | [Parent Company Income Statement](index=21&type=section&id=Parent%20Company%20Income%20Statement) In the first three quarters of 2017, the parent company achieved operating revenue of **216.44 million RMB**, a 12.67% year-over-year increase; net profit was **47.57 million RMB**, up 20.70%. The parent company's profit growth outperformed the consolidated statements, with investment income (**28.43 million RMB**) significantly contributing to net profit Key Parent Company Income Statement Items (Unit: RMB) | Item | Year-to-Date (Jan-Sep) | Prior Year Period (Jan-Sep) | | :--- | :--- | :--- | | I. Operating Revenue | 216,435,622.78 | 192,092,457.67 | | Investment Income | 28,429,321.51 | 25,451,116.38 | | IV. Net Profit | 47,567,447.97 | 39,409,647.55 | [Consolidated Cash Flow Statement](index=23&type=section&id=Consolidated%20Cash%20Flow%20Statement) In the first three quarters of 2017, net cash flow from operating activities was **84.39 million RMB**, a 145.89% year-over-year increase, indicating healthy core business cash flow. Net cash outflow from investing activities was **225.85 million RMB**, primarily for project construction and wealth management product purchases. Net cash inflow from financing activities was **207.65 million RMB**, mainly from IPO proceeds. The net increase in cash and cash equivalents at period-end was **65.28 million RMB** Consolidated Cash Flow Statement Summary (Unit: RMB) | Item | Year-to-Date (Jan-Sep) | Prior Year Period (Jan-Sep) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 84,390,707.08 | 34,320,895.50 | | Net Cash Flow from Investing Activities | -225,854,463.22 | -32,871,755.23 | | Net Cash Flow from Financing Activities | 207,649,704.16 | -13,365,545.54 | | Net Increase in Cash and Cash Equivalents | 65,277,089.98 | -11,617,436.84 | [Parent Company Cash Flow Statement](index=24&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In the first three quarters of 2017, the parent company's net cash flow from operating activities was **35.68 million RMB**, a significant improvement from **2.96 million RMB** in the prior year period. Net cash outflow from investing activities was **202.89 million RMB**, and net cash inflow from financing activities was **219.95 million RMB**. The net increase in cash and cash equivalents at period-end was **52.40 million RMB** Parent Company Cash Flow Statement Summary (Unit: RMB) | Item | Year-to-Date (Jan-Sep) | Prior Year Period (Jan-Sep) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 35,683,762.21 | 2,958,108.20 | | Net Cash Flow from Investing Activities | -202,889,757.09 | 810,342.40 | | Net Cash Flow from Financing Activities | 219,945,145.18 | -11,542,715.18 | | Net Increase in Cash and Cash Equivalents | 52,397,483.33 | -7,840,845.48 |

Financial Performance - Basic earnings per share for the first half of 2017 was CNY 0.48, a decrease of 5.88% compared to CNY 0.51 in the same period last year[20] - Diluted earnings per share for the first half of 2017 was also CNY 0.48, reflecting the same 5.88% decrease from CNY 0.51 year-on-year[20] - The company's operating revenue for the first half of the year reached ¥409,561,615.55, representing a year-on-year increase of 10.69% compared to ¥370,002,033.52[22] - The net profit attributable to shareholders was ¥45,643,513.50, up 19.09% from ¥38,325,641.17 in the same period last year[22] - The net cash flow from operating activities increased by 47.49% to ¥40,733,286.38, compared to ¥27,617,295.71 in the previous year[22] - The company achieved operating revenue of CNY 409.56 million in the first half of 2017, representing a year-on-year growth of 10.69%[42] - Net profit attributable to shareholders reached CNY 45.64 million, reflecting a year-on-year increase of 19.09%[38] - The company reported a total of RMB 62.57 million in claims related to lease disputes and other costs in ongoing litigation.[85] Shareholder Information - The company distributed cash dividends of CNY 2.5 per 10 shares, totaling CNY 25 million, as part of the 2016 profit distribution plan[18] - The total share capital increased from 75 million shares to 100 million shares following the public offering of 25 million shares on January 10, 2017[107] - The total number of ordinary shareholders reached 8,686 by the end of the reporting period[108] - The largest shareholder, Zhejiang Antai Holding Group Co., Ltd., held 49,065,000 shares, representing 49.07% of the total shares[110] - The second-largest shareholder, Zhang Yihua, held 11,340,000 shares, accounting for 11.34% of the total shares[111] Assets and Liabilities - The company's net assets attributable to shareholders rose to ¥773,467,208.63, a significant increase of 78.95% from ¥432,217,969.63 at the end of the previous year[22] - Total assets increased by 27.54% to ¥933,632,332.76 from ¥732,023,824.12 at the end of the previous year[22] - The company reported a total current assets of RMB 667,299,283.82 as of June 30, 2017, an increase from RMB 502,233,938.35 at the beginning of the period, representing a growth of approximately 32.7%[125] - The company’s total assets amounted to RMB 882,727,577.47, up from RMB 717,914,938.35, marking an increase of approximately 22.9%[125] - The company’s total liabilities were reported at RMB 500,000,000.00, which is unchanged from the previous period[125] Market and Industry Insights - The company continues to focus on the development and manufacturing of precision molds and plastic parts, primarily serving the automotive, electrical, and consumer electronics sectors[25] - The automotive industry remains a key market, with the company being a first-tier supplier of functional plastic components to major clients such as Bosch and Mahle[25] - The plastic parts manufacturing industry in China is experiencing rapid growth, with the country becoming the largest producer and consumer of plastic products globally[27] - The automotive sector's production and sales in the first half of 2017 reached 13.52 million and 13.35 million units, respectively, with year-on-year growth rates of 4.64% and 3.81%[28] - China's per capita car ownership is currently about 120 vehicles, projected to exceed 300 vehicles in the next 15 years, with an annual production of 42 million vehicles[29] Research and Development - The company has obtained 25 invention patents and 63 utility model patents, showcasing its strong R&D capabilities in mold design and precision injection molding[33] - Research and development expenses increased by 11.41% to CNY 16.59 million, driven by enhanced investment in new product development[42] Governance and Compliance - The company has established a robust governance structure and improved management mechanisms to enhance operational efficiency[39] - The company has committed to ensuring that its subsidiaries will not suffer any losses related to social insurance or housing fund payments, with the controlling shareholders assuming full responsibility for any related costs.[82] - The company has retained Tianjian Accounting Firm for the 2017 annual audit, with no changes in the auditing firm during the reporting period.[83] Legal Matters - The company has a pending lawsuit involving a claim for damages amounting to RMB 3,000,000 due to a breach of the lease agreement by Beijing Zhonghai Xingye Safety Glass Co., Ltd.[84] - The company is involved in a legal dispute with Ningbo Dayai Machinery Co., Ltd. regarding a failed equipment purchase contract, with a prepayment of RMB 188,400 at stake.[86] - The company has faced a court ruling requiring it to restore the leased property to its original condition after a dispute with the landlord.[85] Financial Management - The company has a stock price stabilization plan that activates if the stock price falls below the audited net asset value per share for 20 consecutive trading days within three years post-listing[68] - The company has committed to a minimum cash dividend ratio of 20% if there are significant capital expenditures in the first three years post-IPO, and 40% if there are none[78] - The company has engaged in market transactions for its leased properties, ensuring compliance with market prices[98] Operational Strategy - The company has implemented an "order-driven production" model, utilizing an ERP system for effective production management and quality control[26] - The company has established a nationwide strategic layout with production bases in key industrial clusters, enhancing its ability to respond quickly to customer needs[34] - The company plans to expand its market presence and invest in new product development to drive future growth[114] Cash Flow and Investments - Cash flow from operating activities saw a significant increase of 47.49%, amounting to CNY 40.73 million[42] - The company received CNY 337,650,000.00 from investment absorption, indicating strong investor confidence[140] - Cash inflow from financing activities totaled CNY 358,650,000.00, compared to CNY 94,000,000.00 in the previous year[140] Accounting Policies - The company uses the Chinese Yuan as its functional currency for accounting purposes[164] - The company applies specific accounting policies for bad debt provisions, depreciation, amortization, and revenue recognition based on its operational characteristics[160] - The company consolidates all subsidiaries under its control in the consolidated financial statements[166]

Financial Performance - Operating revenue rose by 17.17% to CNY 217,036,238.01 year-on-year[5] - Net profit attributable to shareholders increased by 6.77% to CNY 20,089,237.12 compared to the same period last year[5] - Basic and diluted earnings per share decreased by 8.00% to CNY 0.23[5] - Total revenue for Q1 2017 was CNY 217,036,238.01, an increase of 17.15% compared to CNY 185,228,390.86 in the same period last year[28] - Net profit for Q1 2017 reached CNY 27,060,972.88, significantly up from CNY 4,280,507.39 in Q1 2016, representing a growth of 532.5%[33] - Operating profit for Q1 2017 was CNY 27,675,602.71, compared to CNY 5,094,519.95 in Q1 2016, indicating a year-over-year increase of 444.5%[33] - The company reported a total profit of CNY 27,892,194.93 for Q1 2017, up from CNY 5,006,979.60 in the previous year, marking a growth of 457.5%[33] Cash Flow - Cash flow from operating activities improved significantly, reaching CNY 69,205.81, compared to a loss of CNY 10,392,066.38 in the previous year[5] - Cash flow from operating activities was CNY 222,035,614.41 in Q1 2017, an increase from CNY 189,665,619.68 in Q1 2016, reflecting a growth of 17.0%[35] - Operating cash inflow for Q1 2017 was CNY 227,470,156.02, an increase from CNY 195,679,430.45 in the previous period, representing a growth of approximately 16.4%[36] - Net cash flow from operating activities was CNY 69,205.81, a significant recovery from a net outflow of CNY 10,392,066.38 in the previous period[36] - Total cash inflow from financing activities reached CNY 358,650,000.00, compared to CNY 83,000,000.00 in the previous period, indicating a substantial increase of over 331%[36] - Net cash flow from financing activities was CNY 239,213,479.15, a notable rise from CNY 20,622,413.17 in the previous period[37] - The company experienced a net increase in cash and cash equivalents of CNY 39,142,342.02, contrasting with a decrease of CNY 4,941,088.78 in the previous period[37] Assets and Liabilities - Total assets increased by 30.66% to CNY 956,449,471.95 compared to the end of the previous year[5] - The company's total assets increased, with cash and cash equivalents being a significant contributor to the overall asset growth[21] - The company's total liabilities decreased significantly, with short-term borrowings dropping by 98.89% to RMB 1,000,000.00 as a result of repaying working capital loans[15] - Total liabilities decreased to CNY 169,187,229.57 from CNY 286,993,526.22, a reduction of 41.06%[23] - Current liabilities totaled CNY 166,879,727.64, down from CNY 284,528,401.74, a decrease of 41.49%[23] - Owner's equity increased significantly to CNY 787,262,242.38 from CNY 445,030,297.90, reflecting a growth of 76.83%[23] Shareholder Information - The total number of shareholders reached 10,022 at the end of the reporting period[10] - The largest shareholder, Zhejiang Antai Holding Group Co., Ltd., holds 49.07% of the shares[11] Government Subsidies and Other Income - The company recognized government subsidies amounting to CNY 1,002,525.05 related to the identification of a high-tech enterprise[7] - Non-operating income included CNY 30,433.95 from other sources[8] - Operating income showed a substantial increase, with non-operating income rising by 587.32% to RMB 1,088,537.67, attributed to increased government subsidies[16] Investment and Capital - The capital reserve increased by 693.24% to RMB 337,644,348.99, mainly due to the premium from the issuance of new shares[15] - The company reported a significant increase in capital reserve to CNY 337,644,348.99 from CNY 42,565,082.04, a growth of 691.73%[23] - The company received CNY 337,650,000.00 from investment absorption, marking a strong inflow compared to the previous period[40] Inventory and Receivables - Accounts receivable increased to CNY 93,936,208.39 from CNY 76,567,763.02, a growth of 22.73%[24] - Inventory decreased to CNY 64,751,272.02 from CNY 71,523,753.35, a decline of 9.46%[25]

Financial Performance - The company's operating revenue for 2016 was CNY 805,800,846.20, representing a 14.57% increase compared to CNY 703,313,116.54 in 2015[19]. - The net profit attributable to shareholders for 2016 was CNY 81,057,609.82, which is a 20.56% increase from CNY 67,236,497.93 in 2015[19]. - Basic earnings per share increased by 20.00% to CNY 1.08 in 2016 compared to CNY 0.90 in 2015[21]. - Diluted earnings per share also rose by 20.00% to CNY 1.08 in 2016 from CNY 0.90 in 2015[21]. - The net profit attributable to shareholders for Q4 2016 was CNY 19,673,308.46, showing an increase from CNY 18,503,517.82 in Q3 2016[23]. - Total operating revenue for Q4 2016 reached CNY 230,544,532.61, up from CNY 205,254,280.07 in Q3 2016[23]. - The company achieved operating revenue of RMB 805.80 million, a year-on-year increase of 14.57%, primarily driven by a 20.66% growth in automotive plastic parts products[44]. - The net profit attributable to the parent company was RMB 81.06 million, reflecting a year-on-year increase of 20.56%[44]. Assets and Liabilities - The net assets attributable to shareholders increased by 23.12% to CNY 432,217,969.63 at the end of 2016, up from CNY 351,057,430.57 at the end of 2015[20]. - Total assets rose by 19.72% to CNY 732,023,824.12 at the end of 2016, compared to CNY 611,428,914.00 at the end of 2015[20]. - The company reported a net cash flow from operating activities of CNY 16,855,975.47 in Q4 2016[24]. - The net cash flow from operating activities decreased by 35.72% to CNY 51,176,870.97 in 2016, down from CNY 79,615,283.24 in 2015[20]. - Accounts receivable increased by 21.22% to 256.79 million yuan, reflecting growth in company revenue[62]. - Inventory rose by 39.71% to 141.57 million yuan, primarily due to new customer projects and mold inventory increases[62]. - Long-term equity investments increased by 121.54% to 7.71 million yuan, attributed to equity method recognition of investment income from a joint venture[62]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 2.5 per 10 shares, totaling CNY 25,000,000, subject to shareholder approval[2]. - For the fiscal year 2016, the company distributed cash dividends of 25,000,000 RMB, amounting to 2.5 RMB per 10 shares, representing 30.84% of the net profit attributable to shareholders[103]. - The company adopts a cash dividend policy, distributing at least 20% of the distributable profits if there are no major investment plans or cash expenditures[100]. - The company plans to maintain a stable dividend policy, ensuring that cash distributions do not fall below 20% of the distributable profits in the absence of significant investments[102]. Research and Development - Research and development expenses amounted to RMB 32.47 million, representing a 25.16% increase compared to the previous year[46]. - The company has obtained a total of 23 invention patents and 62 utility model patents as of December 31, 2016[42]. - The company has committed to enhancing its R&D incentive system and exploring long-term incentive mechanisms for employees[179]. - The company has developed several new technologies, including a two-stage slider mold internal extraction technology, which has reached mass production levels[73]. Market and Industry Trends - The automotive industry produced 28.12 million vehicles in 2016, with a year-on-year growth of 14.46%, while sales reached 28.03 million, growing by 13.65%[32]. - The plastic parts manufacturing industry in China has rapidly developed since joining the WTO, making China the largest producer and consumer of plastic products globally[30]. - The low-voltage electrical appliance market in China is experiencing rapid growth, supported by stable electricity investment and increasing demand in both urban and rural areas[34]. - The average annual growth rate for the automotive mold market is expected to be no less than 10% during the 13th Five-Year Plan period, driven by a large vehicle ownership base[36]. Corporate Governance and Compliance - The company has not engaged in any competitive activities with other companies or organizations in the same industry[14]. - The company will ensure fair pricing in any related party transactions and comply with legal disclosure obligations[15]. - The current auditor, Tianjian Accounting Firm, has a remuneration of RMB 800,000 for a five-year term[129]. - The company has no significant litigation or arbitration matters reported for the year[128]. Strategic Plans and Future Outlook - The company aims to enhance high-value-added product development and reduce reliance on low-margin products[90]. - The company plans to explore new application areas for its products, particularly in high-end markets such as medical devices and aerospace[91]. - The company will continue to invest in precision mold design technology and injection molding processes to improve its development capabilities[90]. - The company is actively seeking potential acquisition targets globally to support its "continuous improvement and steady growth" strategy[94]. Shareholding and Control - The actual controller Hu Jiliang committed not to transfer or entrust others to manage shares held before the company's IPO for 36 months, with a lock-up period extending to 42 months if certain stock price conditions are met[106]. - The controlling shareholder Antai Holdings pledged not to transfer shares held before the IPO for 36 months, with a potential extension of the lock-up period to 42 months if stock price conditions are triggered[108]. - The company has a lock-up period of 36 months for shares held before the IPO, which may extend to 42 months under certain conditions[162]. - The company has no significant changes in the shareholding structure during the reporting period[165].