[Key Financial Data](index=1&type=section&id=Item%20I.%20Key%20Financial%20Data) [Key Accounting Data and Financial Indicators](index=1&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) In Q3 2022, operating revenue decreased by 8.27% while net profit attributable to shareholders increased by 33.47%, contributing to overall growth for the first three quarters and an 11.35% increase in total assets Key Financial Performance Indicators | Indicator | 2022 Q3 | YoY Change (%) | 2022 First Three Quarters | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 268 million yuan | -8.27% | 845 million yuan | 18.30% | | Net Profit Attributable to Shareholders | 18.94 million yuan | 33.47% | 39.48 million yuan | 15.09% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 17.70 million yuan | 64.64% | 37.60 million yuan | 27.62% | | Net Cash Flow from Operating Activities | -1.22 million yuan | 96.57% | -52.54 million yuan | 24.59% | | Basic Earnings Per Share (yuan/share) | 0.17 | 41.67% | 0.35 | 16.67% | Key Balance Sheet Indicators | Balance Sheet Indicator | September 30, 2022 | Change from Prior Year-End (%) | | :--- | :--- | :--- | | Total Assets | 2.64 billion yuan | 11.35% | | Total Equity Attributable to Shareholders | 900 million yuan | 1.82% | [Non-recurring Gains and Losses and Amounts](index=2&type=section&id=Non-recurring%20Gains%20and%20Losses%20and%20Amounts) From the beginning of the year to the end of the reporting period, non-recurring gains and losses totaled 1.87 million yuan, primarily from government grants offset by fair value changes in financial instruments Non-recurring Gains and Losses | Item | Amount from Year-Beginning to Reporting Period End (yuan) | | :--- | :--- | | Government Grants | 4,113,597.37 | | Fair Value Changes and Disposal Gains/Losses of Financial Instruments | -1,938,624.14 | | **Total** | **1,872,245.18** | [Analysis of Changes in Key Financial Indicators](index=3&type=section&id=Analysis%20of%20Changes%20in%20Key%20Financial%20Indicators) Significant Q3 changes in net profit attributable to shareholders and non-recurring net profit were driven by improved product gross margin, while operating cash flow improved due to reduced payments for goods - Third-quarter net profit attributable to shareholders increased by **33.47%** year-over-year, primarily due to an increase in the company's product gross margin during the reporting period[9](index=9&type=chunk) - Third-quarter net cash flow from operating activities significantly improved by **96.57%** year-over-year, mainly because payments for goods decreased during the reporting period[9](index=9&type=chunk) [Shareholder Information](index=4&type=section&id=Item%20II.%20Shareholder%20Information) [Shareholding Status of Shareholders](index=4&type=section&id=Shareholding%20Status%20of%20Shareholders) As of the reporting period end, the company had 11,363 common shareholders, with the top two shareholders, Mr. Wu Zuping and Mr. Jin Aoda, acting in concert and jointly controlling over 25% of shares - As of the end of the reporting period, the total number of common shareholders was **11,363**[12](index=12&type=chunk) Top Ten Shareholders' Shareholding | Shareholder Name | Number of Shares Held (shares) | Shareholding Ratio (%) | | :--- | :--- | :--- | | Wu Zuping | 14,812,500 | 13.16 | | Jin Aoda | 14,040,400 | 12.48 | | Yang Hua | 4,806,119 | 4.27 | - Shareholder Jin Aoda and Wu Zuping signed a "Concerted Action Agreement" in 2014, confirming their joint control relationship and agreeing that Wu Zuping's opinion would prevail if consensus could not be reached; this agreement's validity has been extended to five full fiscal years after the company's listing[13](index=13&type=chunk) [Other Reminders](index=5&type=section&id=Item%20III.%20Other%20Reminders) [Other Important Information](index=5&type=section&id=Other%20Important%20Information) During the reporting period, the company had no other significant operational information requiring investor attention - The company has no other important information requiring investor attention during this reporting period[14](index=14&type=chunk) [Quarterly Financial Statements](index=6&type=section&id=Item%20IV.%20Quarterly%20Financial%20Statements) [Consolidated Balance Sheet](index=6&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2022, total assets reached 2.64 billion yuan, an 11.35% increase driven by rising receivables, inventory, and contract assets, while total liabilities grew 17.39% to 1.73 billion yuan due to increased short-term borrowings and contract liabilities Consolidated Balance Sheet Highlights | Item | September 30, 2022 (yuan) | December 31, 2021 (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Assets** | **2,639,709,749.41** | **2,370,737,403.93** | **11.35%** | | Accounts Receivable | 576,119,500.85 | 479,954,361.22 | 20.04% | | Inventories | 1,026,365,079.98 | 904,797,410.96 | 13.44% | | **Total Liabilities** | **1,729,256,349.71** | **1,473,116,785.25** | **17.39%** | | Short-term Borrowings | 376,910,482.30 | 300,581,744.31 | 25.39% | | Contract Liabilities | 700,934,692.91 | 535,974,255.74 | 30.78% | | **Total Equity Attributable to Shareholders** | **910,453,399.70** | **897,620,618.68** | **1.43%** | [Consolidated Income Statement](index=8&type=section&id=Consolidated%20Income%20Statement) For the first three quarters of 2022, total operating revenue grew 18.30% to 845.14 million yuan, with net profit attributable to shareholders increasing 15.09% to 39.48 million yuan, supported by a 41.85% rise in R&D expenses and a significant reduction in financial expenses Consolidated Income Statement Highlights | Item | 2022 First Three Quarters (yuan) | 2021 First Three Quarters (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 845,141,980.27 | 714,383,754.19 | 18.30% | | Total Operating Costs | 794,285,984.85 | 666,195,375.63 | 19.23% | | Research and Development Expenses | 21,982,509.83 | 15,498,502.92 | 41.84% | | Financial Expenses | -305,539.68 | 5,565,471.55 | -105.5% | | Net Profit Attributable to Shareholders | 39,476,914.86 | 34,301,284.15 | 15.09% | | Basic Earnings Per Share | 0.35 | 0.30 | 16.67% | [Consolidated Cash Flow Statement](index=10&type=section&id=Consolidated%20Cash%20Flow%20Statement) For the first three quarters of 2022, net cash flow from operating activities improved to -52.54 million yuan, with investing activities resulting in a net outflow of 10.93 million yuan, while financing activities provided a net inflow of 71.14 million yuan, increasing cash and cash equivalents by 9.86 million yuan Consolidated Cash Flow Statement Highlights | Item | 2022 First Three Quarters (yuan) | 2021 First Three Quarters (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -52,535,299.44 | -69,662,584.87 | | Net Cash Flow from Investing Activities | -10,934,045.36 | -49,012,766.13 | | Net Cash Flow from Financing Activities | 71,139,622.80 | 42,109,350.33 | | Net Increase in Cash and Cash Equivalents | 9,855,034.60 | -80,065,133.97 | - Operating cash outflows were primarily for purchasing goods and services (**580 million yuan**) and paying employee salaries and other operating-related expenses (**297 million yuan**)[24](index=24&type=chunk) - Cash inflows from financing activities mainly stemmed from new borrowings of **478 million yuan**, while outflows were primarily for debt repayment of **365 million yuan** and dividend/interest distribution of **38.62 million yuan**[24](index=24&type=chunk)[25](index=25&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2022 was CNY 577,477,288.07, representing a 36.66% increase compared to CNY 422,576,023.51 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2022 was CNY 20,534,468.10, a slight increase of 2.12% from CNY 20,109,141.82 in the previous year[21]. - The net cash flow from operating activities decreased by 50.42%, amounting to CNY -51,316,087.71 compared to CNY -34,115,284.66 in the same period last year[21]. - The total assets at the end of the reporting period were CNY 2,429,194,003.72, reflecting a 2.47% increase from CNY 2,370,737,403.93 at the end of the previous year[21]. - The net assets attributable to shareholders decreased by 0.46%, totaling CNY 879,674,572.96 compared to CNY 883,714,719.71 at the end of the previous year[21]. - The basic earnings per share remained stable at CNY 0.18, with no change compared to the same period last year[22]. - The weighted average return on net assets was 2.31%, a slight decrease of 0.02 percentage points from 2.33% in the previous year[22]. - The company reported a loss of -1,241,527.08 yuan from fair value changes in financial assets, indicating volatility in financial performance[25]. - The company achieved a revenue of 577.48 million RMB, an increase of 36.66% compared to the same period last year[46]. - The net profit attributable to shareholders was 20.53 million RMB, up 2.12% year-on-year[46]. - The total orders on hand reached 2.415 billion RMB, a year-on-year increase of 17.49%[47]. Research and Development - R&D expenses increased by 59.88% to 14.95 million RMB, reflecting the company's commitment to innovation[49]. - The company holds 227 patents and has received multiple high-tech product certifications in energy-saving and water-saving technologies[44]. - The company is actively investing in R&D to develop environmentally friendly products with higher added value[65]. - The company is focusing on developing technologies for nuclear power cooling towers, anticipating rapid market growth in the next 5-10 years[40]. - The company is exploring trends in the cooling tower market, including enhancements in noise reduction, energy consumption, and aesthetic integration into building designs[38]. Market and Industry Insights - The company specializes in the research, design, manufacturing, and installation of various cooling towers, with a focus on industrial and civil applications[27]. - The cooling tower market in China has a low concentration, with fewer than 10 companies achieving annual sales exceeding 100 million yuan[35]. - The company has identified a significant opportunity for market expansion in both industrial and civil cooling tower applications[34]. - The industry faces challenges in technology capabilities, with a notable gap compared to foreign manufacturers[36]. - Research and development investment in the cooling tower sector is generally insufficient, limiting innovation and quality improvements[37]. Operational Efficiency - The production model is based on "sales-driven production," aligning manufacturing with sales orders to optimize efficiency[31]. - The company has made significant improvements in operational efficiency and internal management, aiming for sustainable growth[47]. - The company has established a comprehensive business system covering R&D, manufacturing, marketing, and after-sales service[45]. Financial Position and Cash Flow - The company's accounts receivable financing increased by 137.53% to ¥40,818,221.50, representing 1.68% of total assets[54]. - Prepayments rose by 135.59% to ¥74,820,656.04, accounting for 3.08% of total assets[54]. - Contract assets increased by 93.23% to ¥136,100,852.45, making up 5.60% of total assets[54]. - Long-term borrowings surged by 347.40% to ¥64,236,639.00, which is 2.64% of total assets[54]. - The company's overseas assets amounted to ¥456,912,988.59, constituting 18.81% of total assets[55]. - Employee compensation payable decreased by 51.94% to ¥10,113,367.69, representing 0.42% of total assets[54]. - The company reported a significant increase in prepayments for engineering projects related to fundraising projects[53]. - The company has expanded its project operations, leading to an increase in prepaid goods[53]. - The company has made payments for engineering and equipment procurement during the reporting period[53]. Risk Management - The company faces risks from macroeconomic fluctuations and industry adjustments, which may impact downstream demand for its industrial cooling tower products[63]. - The company has identified foreign business risks, including legal, political, and operational risks associated with different countries' environments[64]. - The company has implemented various foreign exchange hedging strategies to manage currency risks effectively[65]. - The company reported that the ongoing pandemic and complex international situation pose challenges for expanding overseas markets[64]. Corporate Governance and Compliance - The company has not proposed any profit distribution or capital reserve transfer plans for the half-year period[69]. - The company has conducted one shareholders' meeting during the reporting period, with all proposals approved[68]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[72]. - The company is committed to enhancing its governance mechanisms to improve operational management capabilities[65]. - The company emphasized the importance of compliance with the commitments made by its controlling shareholders to prevent any potential conflicts of interest[87]. Environmental Responsibility - The company has implemented comprehensive pollution control measures for various pollutants generated during production processes[73]. - The company utilizes natural gas as a clean energy source for boiler heating, ensuring emissions meet standards through a 15-meter high exhaust stack[75]. - Wastewater generated from the glass fiber cutting and grinding process is recycled after secondary sedimentation, with no discharge into municipal networks[75]. - The company has implemented noise control measures, including vibration pads and soundproof enclosures, resulting in noise emissions meeting regulatory standards at the factory boundary[75]. - Solid waste generated during production is categorized into general industrial solid waste and hazardous waste, with recycling and proper disposal measures in place[76]. - The company operates multiple environmental protection facilities with significant treatment capacities, including a plastic workshop with a capacity of 50,000 m³/h for non-methane total hydrocarbons[77]. - The company’s environmental facilities are functioning normally, with all major pollutants meeting discharge standards according to environmental monitoring reports[78]. Shareholder Commitments - The company reported a commitment to repurchase all shares issued during the initial public offering if any false statements or omissions are identified in the prospectus, with the repurchase price based on the average trading price on the day before the issuance conditions are deemed non-compliant[83]. - The controlling shareholders, Jin Aoda and Wu Zhuping, pledged to compensate investors for any losses incurred due to misleading statements in the prospectus, with compensation based on measurable economic losses[84]. - The company’s board members and senior management committed to ensuring the accuracy and completeness of the prospectus, accepting legal responsibility for any misstatements or omissions[84]. - The company established an investor compensation fund to actively compensate investors for direct economic losses incurred, ensuring effective protection of investor rights[86]. - The controlling shareholders committed to bear full compensation for any losses caused to the company due to disputes among former members of the employee shareholding association[86]. - The company reported a commitment to cover any unpaid social insurance and housing fund contributions, ensuring no economic losses to the company[86]. Accounting and Financial Reporting - The financial report was approved by the board of directors on August 26, 2022[151]. - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance[154]. - The company has established specific accounting policies for bad debt provisions, fixed asset depreciation, and revenue recognition[156]. - The company recognizes expected credit losses for financial assets measured at amortized cost and those measured at fair value through other comprehensive income[178]. - The company applies a perpetual inventory system for inventory management[185]. - The company recognizes contract assets based on the relationship between performance obligations and customer payments[184].

Financial Performance - The company's operating revenue for Q1 2022 was ¥238,445,214.51, representing a year-on-year increase of 75.84%[5] - The net profit attributable to shareholders of the listed company was ¥2,783,114.90, up 35.78% compared to the same period last year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 140.33% year-on-year, amounting to ¥3,030,241.75[5] - Net profit for Q1 2022 reached ¥3,733,348.88, compared to ¥1,892,457.23 in Q1 2021, marking an increase of approximately 96.9%[20] - The company reported a total profit of ¥6,667,154.04 for Q1 2022, compared to ¥2,952,223.86 in Q1 2021, which is an increase of about 125.5%[20] Cash Flow and Liquidity - The net cash flow from operating activities was -¥44,786,872.01, reflecting an increase of 18.66% compared to the previous year[5] - The net cash flow from operating activities for Q1 2022 was -¥44,786,872.01, an improvement from -¥55,059,950.07 in Q1 2021[23] - Cash and cash equivalents at the end of Q1 2022 totaled ¥131,019,136.75, down from ¥159,493,130.38 at the end of Q1 2021[24] - The company's cash and cash equivalents decreased to CNY 225,230,027.52 from CNY 254,161,725.35, a decline of about 11.4%[15] - The company’s financing activities generated a net cash flow of ¥34,634,859.97 in Q1 2022, compared to ¥51,948,802.61 in Q1 2021[24] - The company experienced a foreign exchange impact on cash and cash equivalents of ¥196,769.36 in Q1 2022, compared to -¥13,441.37 in Q1 2021[24] Assets and Liabilities - Total assets at the end of the reporting period were ¥2,398,392,040.68, a 1.17% increase from the end of the previous year[6] - The company's current assets totaled CNY 1,910,384,700.35, compared to CNY 1,873,128,183.51 at the end of 2021, indicating an increase of about 2.4%[15] - The total liabilities stood at CNY 1,499,702,624.74, up from CNY 1,473,116,785.25, representing a rise of approximately 1.8%[17] - The total non-current assets were CNY 488,007,340.33, down from CNY 497,609,220.42, reflecting a decrease of approximately 1.3%[16] Shareholder Metrics - The weighted average return on equity increased by 0.08 percentage points to 0.32%[6] - The equity attributable to shareholders of the listed company was ¥884,089,758.96, showing a slight increase of 0.04% from the previous year[6] - The company's equity attributable to shareholders was CNY 884,089,758.96, a slight increase from CNY 883,714,719.71, indicating a growth of about 0.4%[17] - The company reported a basic earnings per share of ¥0.02, unchanged from the previous year[5] - Basic and diluted earnings per share for Q1 2022 remained at ¥0.02, consistent with Q1 2021[21] Operating Costs and Revenue Drivers - Total operating costs for Q1 2022 were ¥232,883,484.84, up from ¥131,439,050.81 in Q1 2021, reflecting an increase of about 77.1%[20] - The increase in operating revenue was attributed to a rise in completed projects compared to the same period last year[8] - Research and development expenses for Q1 2022 were ¥6,087,410.98, significantly higher than ¥2,721,506.45 in Q1 2021, indicating an increase of approximately 124.4%[20] Government Support - The company received government subsidies amounting to ¥572,759.30, which are closely related to its normal business operations[7] Other Financial Metrics - The company's cash and cash equivalents decreased to CNY 225,230,027.52 from CNY 254,161,725.35, a decline of about 11.4%[15] - Accounts receivable amounted to CNY 466,657,471.20, slightly down from CNY 479,954,361.22, showing a decrease of approximately 2.8%[15] - Inventory increased to CNY 930,226,508.43 from CNY 904,797,410.96, reflecting a growth of about 2.8%[15] - Short-term borrowings rose to CNY 343,613,997.34 from CNY 300,581,744.31, an increase of approximately 14.3%[17] - The company reported a decrease in other payables to CNY 5,951,967.99 from CNY 10,810,653.77, a decline of about 44.0%[17]

Financial Performance - The company's operating revenue for 2021 was approximately ¥1.13 billion, representing a year-over-year increase of 35.44% compared to ¥834.23 million in 2020[22]. - Net profit attributable to shareholders for 2021 was approximately ¥52.93 million, up 13.90% from ¥46.47 million in 2020[22]. - The net profit after deducting non-recurring gains and losses was approximately ¥44.19 million, reflecting an 18.54% increase from ¥37.28 million in 2020[22]. - The company's cash flow from operating activities showed a negative net amount of approximately ¥24.62 million, a decrease of 197.80% compared to a positive cash flow of ¥25.17 million in 2020[22]. - Total assets increased by 12.16% to approximately ¥2.37 billion at the end of 2021, compared to ¥2.11 billion at the end of 2020[22]. - The weighted average return on equity for 2021 was 6.10%, a slight decrease of 0.09 percentage points from 6.19% in 2020[23]. - The basic earnings per share for 2021 was ¥0.47, a 2.17% increase from ¥0.46 in 2020[23]. - The company achieved operating revenue of ¥1,129,857,551.78, a year-on-year increase of 35.44%[55]. - The net profit attributable to shareholders was ¥52,934,179.54, up 13.90% year-on-year[55]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥44,192,346.23, an increase of 18.54% year-on-year[55]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of 2.20 RMB per 10 shares, totaling 24,754,150.52 RMB, based on a total share capital of 112,518,866 shares[5]. - The company plans to distribute cash dividends of 2.20 CNY per 10 shares, totaling 24,754,150.52 CNY, which represents 46.76% of the net profit attributable to shareholders for the year 2021[139]. Audit and Compliance - The company has received a standard unqualified audit report from Lixin Certified Public Accountants[4]. - The company’s financial report is guaranteed to be true, accurate, and complete by its management[4]. - The company has not violated decision-making procedures for external guarantees[8]. - The company has conducted thorough risk assessments and maintained communication with relevant Chinese authorities regarding investment strategies[107]. - The company has implemented a comprehensive governance structure, ensuring independence in assets, personnel, finance, and operations from controlling shareholders[111]. - The company has completed 4 periodic reports and 58 temporary announcements, fulfilling its disclosure obligations accurately and timely[110]. - The audit report for the financial statements was issued, confirming the accuracy of the financial data[200]. Market and Operational Strategy - The company focuses on market expansion while maintaining existing market achievements, exploring new cooperation fields and models to provide quality services to customers[34]. - The company is positioned to benefit from the rapid growth of the nuclear power cooling tower market, expected to expand significantly in the next 5 to 10 years[42]. - The company aims to enhance its international competitiveness through a strategy of "internal development + external expansion" while providing comprehensive cooling solutions for key industries[101]. - The company plans to continue expanding its market presence and product offerings, focusing on new technologies and strategic acquisitions[62]. - The company is expanding its market presence in Southeast Asia, targeting a 20% increase in market share by 2023[121]. Research and Development - The company has increased its R&D investment in various cooling tower technologies, including the optimization of fog-reducing and water-saving cooling towers, and the development of high-heat transfer and low-resistance filling materials[35]. - The total R&D investment was 27.43 million yuan, representing 2.43% of the operating revenue[72]. - Research and development investments increased by 25% in 2021, totaling 150 million, aimed at advancing new technologies[121]. - The company has established a performance evaluation system for senior management, linking their compensation to company performance and industry standards[142]. Risk Management - The company faces risks from macroeconomic fluctuations, which may impact downstream demand in industries such as petrochemicals, metallurgy, and electricity[105]. - Fluctuations in the RMB exchange rate may adversely affect the company's overseas business performance and financial status[106]. - The company has conducted thorough research on the political and economic environments of countries where it invests overseas, but still faces various operational risks[106]. Environmental Compliance - The company has not reported any environmental penalties, indicating compliance with environmental regulations[147]. - The company’s environmental facilities are operating normally, with all major pollutants meeting discharge standards according to environmental testing reports[154]. - The company has implemented noise control measures, including vibration pads and soundproof enclosures, to ensure noise levels meet discharge standards at the factory boundary[151]. Shareholder Structure and Management - The total shareholding of the board members decreased from 47,690,616 shares at the beginning of the year to 43,234,139 shares at the end, a reduction of 4,456,477 shares, which is approximately 9.34%[116]. - The company has seen a significant reduction in shareholdings among senior management, with several members experiencing declines in their holdings due to large transactions and competitive bidding[115][116]. - The company has a structured remuneration system based on positions, responsibilities, and performance metrics[125]. - The company has committed to ensuring the accuracy and completeness of its prospectus and summary, accepting legal responsibility for any false statements or omissions[160]. Strategic Acquisitions - A strategic acquisition was announced, with the company acquiring a competitor for 300 million, expected to enhance product offerings and market reach[122]. - The company reported a total revenue of RM 32.4 million from the acquisition of a 60% stake in TCT, with the payment structured in two installments of RM 16.2 million each[172]. Corporate Governance - The company has held 3 shareholder meetings, 5 board meetings, and 5 supervisory board meetings during the reporting period, all conducted in compliance with legal requirements[110]. - The company has implemented a dry filtration and activated carbon adsorption system for the plastic workshop, with a treatment capacity of 50,000 m³/h and a 15-meter exhaust stack[153]. - The company has established a commitment to avoid any direct or indirect competition with its own business, ensuring a focus on its core operations[163].

Group 1: Company Overview - Jiangsu Seagull Cooling Tower Co., Ltd. is engaged in the design, research, manufacturing, and marketing of cooling towers [1] - The company held a total order of 2.055 billion CNY as of June 30, 2021, representing a growth of 21.75% compared to the end of 2020 [4] Group 2: Market Position and Strategy - The company aims to enhance its international competitiveness by expanding into foreign markets, with 48% of its main business revenue coming from overseas in 2020 [3] - The company has established subsidiaries in the USA, Singapore, Malaysia, South Korea, Thailand, and Indonesia to accelerate global service capabilities [2] Group 3: Product Development and Innovation - The company focuses on energy-saving, water-saving, and environmentally friendly cooling towers, aligning with national "dual carbon" strategies [2] - Ongoing projects include the development of a cooling tower technology innovation center, which will focus on digital and intelligent operation systems [3] Group 4: Core Competencies - The company possesses a strong R&D technology advantage, with a dedicated engineering technology center housing over 90 testing instruments [3] - Its products have achieved industry-leading levels in anti-freezing, fog elimination, energy saving, and water saving [4] Group 5: Recent Operational Status - The company has maintained normal production operations despite the pandemic, adhering to health and safety protocols [4]

[Major Financial Data](index=1&type=section&id=%E4%B8%80%E3%80%81%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) [Key Accounting Data and Financial Indicators](index=1&type=section&id=%28%E4%B8%80%29%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company achieved strong performance in Q3 and the first three quarters of 2021, though operating cash flow turned negative Key Financial Indicators for the First Three Quarters of 2021 | Indicator | Year-to-Date | YTD YoY Change (%) | Current Quarter (Q3) | Q3 YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 714,383,754.19 CNY | 78.21% | 291,807,730.68 CNY | 71.22% | | Net Profit Attributable to Shareholders | 34,301,284.15 CNY | 856.60% | 14,192,142.33 CNY | 491.60% | | Net Profit Attributable to Shareholders (Non-recurring items deducted) | 29,467,196.68 CNY | 6,376.43% | 10,752,905.43 CNY | 542.51% | | Net Cash Flow from Operating Activities | -69,662,584.87 CNY | -342.53% | N/A | N/A | | Basic Earnings Per Share | 0.30 CNY/Share | 650.00% | 0.12 CNY/Share | 300.00% | | Total Assets (End of Period) | 2,337,193,319.58 CNY | 10.57% (vs Year-End) | - | - | | Equity Attributable to Parent (End of Period) | 866,020,233.57 CNY | 0.87% (vs Year-End) | - | - | [Non-recurring Profit and Loss Items and Amounts](index=2&type=section&id=%28%E4%BA%8C%29%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) Non-recurring profit for the first three quarters of 2021 totaled CNY 4.83 million, primarily from government grants Details of Non-recurring Profit and Loss for the First Three Quarters of 2021 | Item | Year-to-Date Amount (CNY) | Current Quarter Amount (CNY) | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -219,563.04 | -3,209.36 | | Government Grants Recognized in Current Profit/Loss | 5,204,309.22 | 3,499,137.84 | | Gains/Losses from Fair Value Changes of Financial Assets, etc. | 499,996.72 | 434,976.45 | | Other Non-operating Income and Expenses | 769,762.54 | 634,459.35 | | Less: Income Tax Effect | 1,277,596.25 | 983,157.79 | | Less: Effect on Minority Interests (After Tax) | 144,400.80 | 142,969.59 | | **Total** | **4,834,087.47** | **3,439,236.90** | [Analysis of Changes in Key Financial Data and Indicators](index=3&type=section&id=%28%E4%B8%89%29%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E3%80%81%E5%8E%9F%E5%9B%A0) Profit growth was driven by business expansion and acquisitions, while operating cash flow declined due to increased project-related payments - Operating revenue growth (**+78.21%**) was driven by substantial growth in the main business and the addition of new market operations from acquisitions[9](index=9&type=chunk) - Net profit attributable to shareholders growth (**+856.60%**) was due to revenue growth outpacing the increase in expenses[9](index=9&type=chunk) - Net cash flow from operating activities decreased (**-342.53%**) primarily due to a **CNY 182 million increase (+59.55%)** in payments for goods and a **CNY 82 million increase (+75.89%)** in payments for deposits and other operating activities[10](index=10&type=chunk) [Shareholder Information](index=4&type=section&id=%E4%BA%8C%E3%80%81%20%E8%82%A1%E4%B8%9C%E4%BF%A1%E6%81%AF) [Shareholder Holdings](index=4&type=section&id=%28%E4%B8%80%29%E6%99%AE%E9%80%9A%E8%82%A1%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%92%8C%E8%A1%A8%E5%86%B3%E6%9D%83%E6%81%A2%E5%A4%8D%E7%9A%84%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) The company had 7,021 common shareholders, with the top two acting as joint actual controllers under a concerted action agreement - The total number of common shareholders was **7,021** at the end of the reporting period[12](index=12&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Shareholding Ratio (%) | Number of Shares | | :--- | :--- | :--- | | Jin Aoda | 16.47% | 18,530,773 | | Wu Zhuping | 13.16% | 14,812,500 | | Yang Hua | 4.76% | 5,354,519 | | Jiangsu Gaojin Venture Capital Co., Ltd. | 3.23% | 3,636,625 | | Gongqingcheng Tianbaoxing Investment Partnership | 3.00% | 3,375,577 | | Changzhou Southern Investment Co., Ltd. | 2.60% | 2,925,000 | | Zhang Zhongxie | 2.54% | 2,856,525 | | Jiang Renxi | 2.09% | 2,350,000 | | Xu Zhijun | 1.19% | 1,334,437 | | Liu Zhizheng | 1.16% | 1,308,250 | - Shareholders **Jin Aoda and Wu Zhuping are parties acting in concert** under a "Concerted Action Agreement," with Wu Zhuping's opinion prevailing in case of disagreement[15](index=15&type=chunk) [Other Matters for Attention](index=6&type=section&id=%E4%B8%89%E3%80%81%20%E5%85%B6%E4%BB%96%E6%8F%90%E9%86%92%E4%BA%8B%E9%A1%B9) [Other Important Information](index=6&type=section&id=%E9%9C%80%E6%8F%90%E9%86%92%E6%8A%95%E8%B5%84%E8%80%85%E5%85%B3%E6%B3%A8%E7%9A%84%E5%85%B3%E4%BA%8E%E5%85%AC%E5%8F%B8%E6%8A%A5%E5%91%8A%E6%9C%9F%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BF%A1%E6%81%AF) No other significant operational information requires special investor attention for the reporting period - The company has no other important information requiring investor attention for this reporting period[16](index=16&type=chunk) [Quarterly Financial Statements](index=7&type=section&id=%E5%9B%9B%E3%80%81%20%E5%AD%A3%E5%BA%A6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) [Audit Opinion Type](index=7&type=section&id=%28%E4%B8%80%29%E5%AE%A1%E8%AE%A1%E6%84%8F%E8%A7%81%E7%B1%BB%E5%9E%8B) The company's financial statements for the third quarter of 2021 are unaudited - The third-quarter financial statements are **unaudited**[4](index=4&type=chunk)[17](index=17&type=chunk) [Financial Statements](index=7&type=section&id=%28%E4%BA%8C%29%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) As of Q3 2021, total assets grew to CNY 2.34 billion, with significant year-to-date revenue and profit growth but negative operating cash flow [Consolidated Balance Sheet](index=7&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) Total assets reached CNY 2.34 billion, up 10.57%, driven by inventory growth, while total liabilities increased by 17.30% to CNY 1.46 billion Key Items of the Balance Sheet (Sep 30, 2021 vs Dec 31, 2020) | Item | Sep 30, 2021 (CNY) | Dec 31, 2020 (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Assets** | **2,337,193,319.58** | **2,113,748,196.61** | **+10.57%** | | Inventories | 908,520,898.34 | 662,837,076.91 | +37.07% | | Accounts Receivable | 425,714,504.46 | 447,215,700.29 | -4.81% | | **Total Liabilities** | **1,457,106,291.11** | **1,242,173,108.37** | **+17.30%** | | Short-term Borrowings | 303,197,066.33 | 227,620,316.56 | +33.20% | | Contract Liabilities | 558,436,216.73 | 471,914,943.25 | +18.33% | | **Equity Attributable to Parent** | **866,020,233.57** | **858,575,361.87** | **+0.87%** | [Consolidated Income Statement](index=9&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) For the first three quarters of 2021, total operating revenue grew 78.21% to CNY 714 million, leading to a significant 856.60% increase in net profit Key Items of the Income Statement (Q1-Q3 2021 vs Q1-Q3 2020) | Item | Jan-Sep 2021 (CNY) | Jan-Sep 2020 (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 714,383,754.19 | 400,875,032.97 | +78.21% | | Total Operating Costs | 666,195,375.63 | 390,657,877.23 | +70.53% | | Cost of Revenue | 502,460,449.23 | 274,139,694.99 | +83.29% | | Selling Expenses | 64,661,901.22 | 47,008,330.16 | +37.55% | | General & Administrative Expenses | 73,942,495.76 | 46,371,196.69 | +59.45% | | R&D Expenses | 15,498,502.92 | 9,647,473.87 | +60.65% | | Operating Profit | 43,647,305.95 | 7,047,079.73 | +519.36% | | **Net Profit Attributable to Parent** | **34,301,284.15** | **3,585,740.60** | **+856.60%** | [Consolidated Statement of Cash Flows](index=12&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Net operating cash flow was negative CNY 69.66 million due to increased payments for goods, with the period-end cash balance at CNY 135 million Key Items of the Statement of Cash Flows (Q1-Q3 2021 vs Q1-Q3 2020) | Item | Jan-Sep 2021 (CNY) | Jan-Sep 2020 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -69,662,584.87 | 28,723,245.95 | | Net Cash Flow from Investing Activities | -49,012,766.13 | -89,503,342.72 | | Net Cash Flow from Financing Activities | 42,109,350.33 | 107,439,634.76 | | Net Increase in Cash & Cash Equivalents | -80,065,133.97 | 46,504,989.09 | | Cash & Cash Equivalents at End of Period | 135,029,054.11 | 209,063,036.12 | [Adjustments for First-time Adoption of the New Lease Standard](index=14&type=section&id=%28%E4%B8%89%292021%20%E5%B9%B4%E8%B5%B7%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E6%96%B0%E7%A7%9F%E8%B5%81%E5%87%86%E5%88%99%E8%B0%83%E6%95%B4%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E5%BD%93%E5%B9%B4%E5%B9%B4%E5%88%9D%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) Adoption of the new lease standard on January 1, 2021, resulted in the recognition of right-of-use assets and lease liabilities Key Adjustments to the Jan 1, 2021 Financial Statements for Adopting the New Lease Standard | Adjusted Item | Adjustment Amount (CNY) | | :--- | :--- | | **Assets** | | | Fixed Assets | -7,096,309.31 | | Right-of-use Assets | +12,765,730.42 | | **Liabilities** | | | Non-current Liabilities Due within One Year | +3,976,199.45 | | Lease Liabilities | +2,603,334.16 | | **Equity** | | | Retained Earnings | -910,112.50 |

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 422,576,023.51, representing an increase of 83.38% compared to CNY 230,441,609.54 in the same period last year[18]. - The net profit attributable to shareholders of the listed company reached CNY 20,109,141.82, a significant increase of 1,594.41% from CNY 1,186,793.90 in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 18,714,291.25, compared to a loss of CNY 1,218,580.57 in the same period last year, marking a growth of 1,635.75%[18]. - Basic earnings per share increased to CNY 0.18, up 1,700% from CNY 0.01 in the same period last year[19]. - Diluted earnings per share also rose to CNY 0.18, reflecting a 1,700% increase compared to CNY 0.01 year-over-year[19]. - The total orders on hand as of June 30, 2021, amounted to 2.055 billion RMB, reflecting a growth of 21.75% from the end of 2020[39]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion in Q2 2021, representing a 25% year-over-year growth[85]. - The company reported a revenue of approximately 51.22 million CNY and a net profit attributable to shareholders of about 2.36 million CNY for the first half of 2021[56]. Cash Flow and Assets - The net cash flow from operating activities was negative at CNY -34,115,284.66, a decrease of 266.73% compared to CNY 20,461,024.19 in the previous year[18]. - Cash flow from operating activities decreased year-over-year due to increased project payments[19]. - The total assets of the company at the end of the reporting period were CNY 2,263,470,635.51, reflecting a growth of 7.08% from CNY 2,113,748,196.61 at the end of the previous year[18]. - The company's total assets reached approximately 2.97 billion CNY, with a net asset attributable to shareholders of about 1.72 billion CNY as of the end of the reporting period[56]. - Total current assets increased to ¥1,756,823,552.16 as of June 30, 2021, up from ¥1,623,473,878.10 on December 31, 2020, representing a growth of approximately 8.1%[116]. - Cash and cash equivalents decreased to ¥180,775,886.23 from ¥287,332,447.50, a decline of approximately 37.1%[116]. - The company reported a decrease in cash flow from investment activities, with cash inflow of only CNY 59,045.69 compared to CNY 11,151,000.00 in the previous year[136]. Research and Development - Research and development expenses increased by 75.28% to 9.35 million RMB, indicating a strong commitment to innovation[44]. - The company has developed advanced technologies in water-saving, fog reduction, noise reduction, and energy efficiency for cooling towers[36]. - The company holds a total of 188 patents, with multiple products recognized as high-tech products in various fields including energy saving and water conservation technologies[37]. - Research and development expenses increased to RMB 8,912,949.47, up 66.4% from RMB 5,367,160.41 in the first half of 2020[129]. Market and Industry Trends - The cooling tower market is characterized by a large number of small-scale enterprises, with fewer than 10 companies achieving annual sales exceeding CNY 100 million[30]. - The industry faces challenges in technology capabilities and R&D investment, with many companies lacking sufficient resources for innovation[32]. - Future trends in cooling towers include optimizing noise, energy consumption, and evaporation loss while enhancing aesthetics and material quality[33]. - The company is focusing on expanding its market presence and exploring new cooperation models to enhance business opportunities[41]. Environmental Responsibility - The company has implemented various pollution prevention measures for air, water, noise, and solid waste during production processes[70][71][72][73]. - The company utilizes advanced environmental protection equipment to ensure emissions meet standards, including a 15-meter high exhaust stack for air pollutants[70][71]. - Wastewater generated from production is treated and recycled, with no discharge into municipal sewage systems[72]. - The company has committed to maintaining its environmental responsibilities and has not disclosed any other environmental information during the reporting period[76]. Shareholder and Governance - The company reported no profit distribution or capital reserve transfer plans for the first half of 2021[67]. - There were no changes in the company's board, supervisors, or senior management during the reporting period[66]. - The total number of ordinary shareholders at the end of the reporting period was 7,544[104]. - The largest shareholder, Jin Ao Da, reduced their holdings by 3,375,477 shares, holding a total of 18,530,773 shares, representing 16.47% of the company[106]. Financial Reporting and Compliance - The company follows the accounting standards set by the Ministry of Finance, ensuring compliance and accurate financial reporting[156]. - The company's financial statements reflect its financial position, operating results, changes in equity, and cash flows accurately[156]. - The company recognizes foreign currency transactions at the spot exchange rate on the transaction date, with monetary items translated at the exchange rate on the balance sheet date[169]. - The company applies the acquisition method for business combinations, measuring the acquired assets and liabilities at their fair value on the acquisition date[160].

Financial Performance - Operating revenue surged by 284.24% to CNY 135,604,531.83 from CNY 35,291,277.55 in the same period last year[6] - Net profit attributable to shareholders reached CNY 2,049,720.10, a significant turnaround from a loss of CNY 14,803,369.54 in the previous year, marking a 113.85% increase[6] - Basic and diluted earnings per share improved to CNY 0.02 from CNY -0.16, reflecting a 112.5% increase[6] - Net profit for the quarter was RMB 1.89 million, a significant turnaround from a net loss of RMB 14.83 million in the previous year, marking an increase of 112.76%[15] - Gross profit for Q1 2021 was CNY 4,165,481.02, up from CNY -15,458,818.24 in Q1 2020, marking a turnaround in profitability[31] - The net profit for Q1 2021 reached CNY 4,214,320.29, compared to a net loss of CNY 8,111,677.48 in the same period last year, indicating a turnaround in profitability[35] - The total profit for Q1 2021 was CNY 4,958,023.87, compared to a total loss of CNY -8,111,677.48 in the same quarter of the previous year[35] Cash Flow - The net cash flow from operating activities was negative at CNY -55,059,950.07, worsening by 100.86% compared to the previous year[6] - The cash inflow from operating activities totaled CNY 181,080,230.81, which was higher than CNY 134,534,727.81 in the previous year, showing an increase of approximately 34.5%[38] - The net cash flow from investment activities was -CNY 43,368,303.20, compared to -CNY 14,006,459.45 in the previous year, reflecting a decline of approximately 209%[39] - The net cash flow from financing activities improved to CNY 51,948,802.61 from CNY 29,516,287.97, marking an increase of about 76%[39] - The company reported a net cash decrease of CNY 46,492,892.03 in Q1 2021, worsening from a decrease of CNY 12,652,619.48 in Q1 2020[39] Assets and Liabilities - Total assets increased by 4.78% to CNY 2,214,727,392.07 compared to the end of the previous year[6] - The company’s total assets increased significantly, with fixed assets rising by 36.87% to RMB 337.14 million, reflecting ongoing investments in infrastructure[14] - The company reported total liabilities of CNY 1,242,173,108.37, with current liabilities constituting CNY 1,117,252,500.31[46] - The total amount of contract liabilities was CNY 471,914,943.25, suggesting a strong order backlog[46] - The company’s total liabilities increased, with contract liabilities rising to ¥584,022,632.10 from ¥471,914,943.25, reflecting a growth of 23.73%[25] Shareholder Information - The total number of shareholders reached 6,939 by the end of the reporting period[9] - The top shareholder, Jin Ao Da, holds 17.91% of shares, totaling 20,155,873 shares[10] - The company has committed to maintaining a consistent action agreement among major shareholders to ensure stable management and operational decisions[12] Research and Development - Research and development expenses increased by 62.44% to RMB 2.72 million, compared to RMB 1.68 million in the previous year, indicating a focus on innovation[15] - Research and development expenses for Q1 2021 amounted to CNY 2,721,506.45, compared to CNY 1,675,408.47 in Q1 2020, reflecting an increase of approximately 62%[31] Operational Efficiency - Operating costs rose to RMB 91.39 million, reflecting a 304.63% increase from RMB 22.59 million, primarily due to an increase in completed project acceptance[14] - The company experienced a significant reduction in operating costs, which were CNY 74,110,233.46 in Q1 2021 compared to CNY 11,529,112.55 in Q1 2020, reflecting operational efficiency improvements[34] Market Presence and Strategy - The company has not disclosed any new product developments or market expansion strategies in this report[6] - The company plans to continue expanding its market presence, as indicated by a 71.22% increase in sales expenses to RMB 19.84 million, compared to RMB 11.59 million in the previous year[15] Financial Management - The company’s financial expenses decreased by 73.87% to RMB 1.02 million, down from RMB 3.89 million, mainly due to reduced exchange losses[15] - The company's financial expenses decreased to CNY 1,005,081.50 in Q1 2021 from CNY 1,821,486.81 in Q1 2020, indicating improved cost management[34]

Financial Performance - The company's operating revenue for 2020 was approximately ¥834.23 million, representing a year-on-year increase of 36.55% compared to ¥610.94 million in 2019[21]. - The net profit attributable to shareholders decreased by 4.17% to ¥46.47 million in 2020 from ¥48.50 million in 2019[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 23.55% to ¥37.28 million in 2020 from ¥30.17 million in 2019[21]. - The net cash flow from operating activities improved significantly, reaching ¥25.17 million in 2020, a 210.02% increase from a negative cash flow of ¥22.88 million in 2019[21]. - The total assets of the company at the end of 2020 were approximately ¥2.11 billion, a 36.53% increase from ¥1.55 billion at the end of 2019[21]. - The basic earnings per share for 2020 was ¥0.46, down 13.21% from ¥0.53 in 2019[22]. - The weighted average return on equity decreased to 6.19% in 2020, down 1.14 percentage points from 7.33% in 2019[23]. - The company's net assets attributable to shareholders increased by 24.47% to approximately ¥858.58 million at the end of 2020 from ¥689.78 million at the end of 2019[21]. - The company achieved operating revenue of ¥834,233,649.44, an increase of 36.55% compared to the same period last year[52]. - The net profit attributable to shareholders decreased by 4.17% to ¥46,474,455.09, while the net profit excluding non-recurring gains and losses increased by 23.55% to ¥37,278,992.52[52]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of 2.00 RMB per 10 shares, totaling 22,503,773.20 RMB, based on a total share capital of 112,518,866 shares[5]. - The company’s cash dividend policy is designed to protect the rights of shareholders, especially minority investors, in accordance with regulatory guidelines[125]. - In 2019, the company distributed cash dividends totaling CNY 18,294,000.00, representing 37.72% of the net profit attributable to shareholders[126]. - The company plans to distribute cash dividends of CNY 22,503,773.20, which accounts for 48.42% of the net profit attributable to shareholders for 2020[127]. Acquisitions and Market Expansion - The company completed the acquisition of TCT and Jiangsu Ocean in July 2020, which contributed to the increase in revenue and net profit[27]. - The company acquired 100% of Jiangsu Ocean for ¥80.66 million to enhance its closed cooling tower production capacity and market presence[53]. - The acquisition of TCT in Malaysia, increasing ownership to 100%, aims to expand into the Southeast Asian market, covering countries like Malaysia, Singapore, and Indonesia[53]. - The company plans to establish a wholly-owned subsidiary in Thailand, replacing the existing branch, to enhance local service quality and business expansion[90]. - The company also acquired 60% equity of TRUWATER COOLING TOWERS SDN BHD for 32.4 million MYR (approximately 53.70 million RMB), which will also become a wholly-owned subsidiary[91]. Research and Development - Research and development expenses increased by 38.16% to ¥21,776,010.61, highlighting a commitment to innovation[59]. - The company aims to enhance its R&D capabilities and manufacturing processes, focusing on technological upgrades and quality control[114]. - The company is committed to increasing R&D investment to improve product technology and design quality[114]. - The company plans to establish a cooling tower intelligent control research and testing center with an investment of ¥55.88 million to enhance product testing capabilities[56]. - New product development initiatives are underway, with an investment of 50 million allocated for R&D in innovative water treatment technologies[200]. Market and Industry Insights - The industrial cooling tower market in China has a sales scale where less than 10 companies exceed annual sales of 100 million yuan, indicating a fragmented industry[42]. - The nuclear power cooling tower market is expected to grow rapidly in the next 5 to 10 years due to the development of inland nuclear power[46]. - The cooling tower industry in China has seen insufficient R&D investment, with many companies lacking the resources for necessary technological advancements[44]. - The company ranks first in production and sales among domestic manufacturers of mechanical ventilation cooling towers in China, according to the China General Machinery Industry Association[88]. Environmental and Compliance Measures - The company has implemented various pollution prevention measures, including dry filtration and activated carbon adsorption for exhaust gas treatment, with a processing capacity of 50,000 m³/h for plastic production[168]. - The company has a wastewater treatment system that ensures all wastewater is treated and meets discharge standards before being released[164]. - The company has established a solid waste management system, recycling industrial solid waste and entrusting hazardous waste to qualified units for disposal[166]. - The company has committed to maintaining compliance with environmental regulations and has reported normal operation of its environmental protection facilities during the reporting period[168]. Governance and Shareholder Commitments - The company has implemented measures to enhance governance and management capabilities, as well as invested in R&D for high-value-added products[121]. - The controlling shareholders, Jin Aoda and Wu Zhuping, pledged to compensate investors for any losses incurred due to misleading information in the prospectus[135]. - The company will ensure compliance with legal requirements for share repurchases and investor compensation[134]. - The company has established a framework for social supervision to protect investors' legal rights effectively[136]. - The company has established a commitment to avoid any improper benefits through related party transactions[140]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[198]. - The company anticipates a rapid growth in the nuclear cooling tower market over the next 5-10 years due to the development of inland nuclear power[109]. - The management emphasized the importance of sustainability initiatives, with plans to invest 50 million in eco-friendly technologies[196]. - The company is exploring potential acquisitions to strengthen its competitive position, with a budget of 500 million allocated for this purpose[196].

Financial Performance - Operating revenue for the first nine months reached CNY 400,875,032.97, a 4.82% increase from the same period last year[6]. - Net profit attributable to shareholders decreased by 80.60% to CNY 3,585,740.60 compared to the previous year[6]. - Basic earnings per share dropped by 80.00% to CNY 0.04[6]. - Total profit decreased by 73.32% to ¥7,314,194.32, impacted by increased period expenses and reduced investment income[16]. - Net profit for Q3 2020 was CNY 4,451,328.01, a decrease of 78.26% compared to CNY 20,477,203.30 in the same period last year[17]. - Total operating revenue for Q3 2020 reached ¥170,433,423.43, a 67% increase compared to ¥102,116,607.96 in Q3 2019[33]. - The company's total profit for Q3 2020 was ¥3,445,839.42, compared to ¥1,762,718.27 in Q3 2019, indicating improved profitability[38]. Assets and Liabilities - Total assets increased by 36.55% to CNY 2,114,004,588.77 compared to the end of the previous year[6]. - The company reported a total liability of CNY 1,286,447,911.98, compared to CNY 851,361,160.31, marking an increase of around 50.9%[28]. - Current assets totaled CNY 1,633,948,116.19, up from CNY 1,206,132,883.49, indicating a growth of about 35.4% year-over-year[26]. - The total liabilities as of Q3 2020 were ¥854,138,910.76, compared to ¥694,451,226.55 in Q3 2019, showing a 23% increase[31]. - The company reported a reduction in accounts receivable by approximately $246.92 million due to the new revenue recognition standard[55]. Shareholder Information - Net assets attributable to shareholders rose by 18.42% to CNY 816,852,557.09 year-on-year[6]. - The total number of shareholders reached 7,495 by the end of the reporting period[10]. - The top shareholder, Jin Ao Da, holds 21,906,250 shares, representing 19.47% of the total shares[10]. - Shareholders' equity rose to CNY 827,556,676.79 from CNY 696,830,544.69, which is an increase of about 18.8%[28]. Cash Flow - Net cash flow from operating activities improved by 150.93% to CNY 28,723,245.95 from a negative cash flow in the same period last year[6]. - Cash flow from operating activities showed a net increase of CNY 28,723,245.95, a significant turnaround from a negative cash flow of CNY -56,395,130.79 in the previous year[17]. - The net cash flow from operating activities for Q3 2020 was ¥28,723,245.95, a significant improvement compared to a net outflow of ¥56,395,130.79 in Q3 2019[41]. - Cash inflow from financing activities for Q3 2020 was ¥408,492,157.04, significantly higher than ¥227,426,404.26 in Q3 2019[42]. Investments and Acquisitions - The company's trading financial assets increased by 57.07% to ¥10,306,806.02 compared to the beginning of the period, primarily due to investments made in Haining Hairui[15]. - Long-term borrowings increased by 353.24% to ¥18,153,941.92, mainly due to the consolidation of TCT[16]. - The company completed a rights issue, raising CNY 149,484,976.04, with a subscription price of CNY 7.55 per share, increasing total shares to 112,518,866[21]. - Investment activities resulted in a net cash outflow of CNY -89,503,342.72, primarily due to acquisitions[17]. Operational Strategies - The company plans to maintain consistent operational strategies to ensure stability and growth in the future[12]. - The company plans to continue its market expansion and product development strategies, focusing on enhancing operational efficiency[18]. - The company has committed to a unified action agreement among major shareholders to ensure effective management and decision-making[12].