Group 1: Company Overview and Recent Performance - Wencan Group expects a year-on-year increase in sales revenue for Q1 2022, despite facing short-term pressure from rising aluminum raw material costs [2] - The total amount of new projects obtained in 2021 is approximately CNY 13 billion, with over 80% related to new energy vehicle projects [2] - The French Bailian Group reported revenue growth in January-February compared to the same period last year, although net profit in February did not meet budget due to increased costs from the Russia-Ukraine conflict [2][8] Group 2: Production and Capacity Expansion - The company is installing a 9000T die-casting machine in the Tianjin factory, expected to be operational by April 2022, with trial production of large integrated body structure components starting in June [3] - The company plans to purchase 2 units of 7000T-8000T die-casting machines and 1 unit of 9000T die-casting machine in 2022, aiming to have a total of 4 units of 6000T-8000T and 3 units of 9000T machines by the end of the year [5] Group 3: Customer Engagement and Market Position - The company is currently in discussions with 5-6 potential clients for large integrated body structure components, with expected mass production starting between 2023 and 2025 [4] - Wencan Group is the first globally to achieve customer mass production project designation and complete trial production in the large integrated body structure component sector, establishing a competitive advantage [4] Group 4: Quality and Raw Material Management - The company has maintained a product quality rate of 90%-95% in body structure components, with confidence in sustaining this rate for large integrated components [6] - The company can pass on raw material price increases to customers based on contractual agreements, with adjustments typically occurring quarterly or semi-annually [7]

[Key Financial Data](index=1&type=section&id=Item%20I.%20Key%20Financial%20Data) This section provides an overview of the company's key financial performance and position for the current period and year-to-date [Key Accounting Data and Financial Indicators](index=1&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) In Q3 2021, operating revenue increased by 14.88% year-on-year, but net profit attributable to parent company shareholders turned to a loss of RMB 4.46 million, a significant decrease of 111.23% 2021 Q3 and Year-to-Date Key Financial Indicators | Indicator | Current Period (Q3) | YoY Change (%) | Year-to-Date (YTD) | YTD YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 932,625,189.60 | 14.88 | 2,965,129,842.69 | 103.60 | | Net Profit Attributable to Shareholders of the Listed Company (RMB) | -4,461,334.11 | -111.23 | 68,826,008.96 | -7.17 | | Net Profit Attributable to Shareholders Excluding Non-recurring Items (RMB) | -5,899,507.90 | -114.56 | 64,275,806.96 | -0.95 | | Net Cash Flow from Operating Activities (RMB) | N/A | N/A | 368,506,681.21 | -19.02 | | Basic Earnings Per Share (RMB/share) | -0.0174 | -109.88 | 0.2676 | -18.90 | End of Period Key Assets and Equity Data | Indicator | End of Current Period (RMB) | End of Prior Year (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 5,674,152,052.22 | 5,600,601,266.66 | 1.31 | | Total Equity Attributable to Shareholders of the Listed Company | 2,660,151,186.05 | 2,580,795,781.84 | 3.07 | [Non-recurring Gains and Losses Items and Amounts](index=2&type=section&id=Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) The company's non-recurring gains and losses totaled RMB 1.44 million for the current period and RMB 4.55 million year-to-date, primarily from government grants offset by restructuring expenses Non-recurring Gains and Losses Details | Item | Amount for Current Period (RMB) | Amount Year-to-Date (RMB) | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -144,565.55 | -3,034,545.05 | | Government Grants Recognized in Current Profit/Loss | 3,082,439.66 | 13,187,183.23 | | Enterprise Restructuring Expenses | -1,743,239.41 | -4,226,085.53 | | Other Non-operating Income and Expenses | 664,221.65 | -146,807.17 | | Less: Income Tax Impact | 420,682.56 | 1,229,543.48 | | **Total** | **1,438,173.79** | **4,550,202.00** | [Analysis of Changes in Key Financial Data and Indicators](index=2&type=section&id=Analysis%20of%20Changes%20in%20Key%20Financial%20Data%20and%20Indicators) Year-to-date operating revenue surged by 103.60% due to the consolidation of French Balian Group, while Q3 net profit declined 111.23% due to customer production cuts and rising raw material costs - Year-to-date operating revenue increased by **103.60%**, primarily due to the consolidation of French Balian Group into the financial statements[9](index=9&type=chunk)[10](index=10&type=chunk) - Net profit attributable to parent company shareholders in Q3 decreased by **111.23%** year-on-year, mainly due to: - Production cuts by some customers due to chip shortages and pandemic impacts, affecting company orders - Rapid increase in aluminum raw material prices, with product price adjustments lagging, impacting operating profit[10](index=10&type=chunk) [Shareholder Information](index=3&type=section&id=Item%20II.%20Shareholder%20Information) This section details the company's shareholder structure, including the total number of shareholders and the top five shareholdings [Total Number of Common Shareholders and Top Ten Shareholders' Shareholding Information](index=3&type=section&id=Total%20Number%20of%20Common%20Shareholders%20and%20Top%20Ten%20Shareholders'%20Shareholding%20Information) As of the end of the reporting period, the company had 14,292 common shareholders, with the top five shareholders collectively holding 57.2% - As of the end of the reporting period, the company had **14,292** common shareholders[11](index=11&type=chunk) Top Five Shareholders' Shareholding Information | Shareholder Name | Number of Shares Held | Shareholding Percentage (%) | | :--- | :--- | :--- | | Tang Jiexiong | 30,000,000 | 11.44 | | Tang Jiebang | 30,000,000 | 11.44 | | Tang Jiewei | 30,000,000 | 11.44 | | Tang Jiecao | 30,000,000 | 11.44 | | Foshan Shengdezhi Investment Co., Ltd. | 30,000,000 | 11.44 | - The company's controlling shareholders and actual controllers are Tang Jiexiong and Tang Jiebang, who are cousins and parties acting in concert; Tang Jiewei and Tang Jiecao are the siblings of Tang Jiexiong and Tang Jiebang, respectively, indicating related party relationships among these shareholders[13](index=13&type=chunk) [Other Reminders](index=4&type=section&id=Item%20III.%20Other%20Reminders) This section highlights other significant matters, including the progress of asset transfers to a wholly-owned subsidiary [Progress of Asset Transfer to Wholly-Owned Subsidiary](index=4&type=section&id=Progress%20of%20Asset%20Transfer%20to%20Wholly-Owned%20Subsidiary) The company is transferring its Foshan factory's casting business to Guangdong Wencan Die Casting Technology Co., Ltd. to separate production and management functions, with most assets and personnel already transferred - The company plans to transfer assets and liabilities related to the Foshan factory's casting business to its wholly-owned subsidiary, Guangdong Wencan Die Casting Technology Co., Ltd., to clarify responsibilities between the group and its factories and separate production from management functions[15](index=15&type=chunk) - The asset transfer involves **RMB 361.70 million** in assets and **RMB 227.37 million** in liabilities; all assets and personnel, except for buildings, have been transferred[15](index=15&type=chunk) [Quarterly Financial Statements](index=5&type=section&id=Item%20IV.%20Quarterly%20Financial%20Statements) This section presents the company's consolidated financial statements for the quarter, including the balance sheet, income statement, and cash flow statement [Consolidated Balance Sheet](index=5&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2021, total assets were RMB 5.67 billion, a slight increase of 1.31% from year-end, with total liabilities remaining stable at RMB 3.01 billion and equity attributable to shareholders growing by 3.07% Balance Sheet Key Items | Item | September 30, 2021 (RMB) | December 31, 2020 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 5,674,152,052.22 | 5,600,601,266.66 | +1.31% | | Total Liabilities | 3,014,000,866.17 | 3,019,805,484.82 | -0.19% | | Total Equity Attributable to Parent Company Shareholders | 2,660,151,186.05 | 2,580,795,781.84 | +3.07% | [Consolidated Income Statement](index=8&type=section&id=Consolidated%20Income%20Statement) For the first three quarters of 2021, total operating revenue reached RMB 2.97 billion, a 103.60% increase driven by consolidation, but total operating costs grew faster at 110.8%, leading to a 24.78% decline in operating profit 2021 First Three Quarters Income Statement Key Items | Item | 2021 First Three Quarters (RMB) | 2020 First Three Quarters (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | I. Total Operating Revenue | 2,965,129,842.69 | 1,456,332,800.04 | +103.60% | | II. Total Operating Costs | 2,852,481,229.08 | 1,353,307,357.18 | +110.8% | | III. Operating Profit | 72,434,400.66 | 96,304,918.59 | -24.78% | | IV. Total Profit | 70,106,009.65 | 88,054,346.25 | -20.38% | | Net Profit Attributable to Parent Company Shareholders | 68,826,008.96 | 74,143,299.34 | -7.17% | [Consolidated Cash Flow Statement](index=10&type=section&id=Consolidated%20Cash%20Flow%20Statement) In the first three quarters of 2021, net cash flow from operating activities decreased by 19.02% to RMB 368.51 million, while investment and financing activities resulted in net cash outflows, leading to a net decrease in cash and cash equivalents of RMB 218.76 million 2021 First Three Quarters Cash Flow Statement Key Items | Item | 2021 First Three Quarters (RMB) | 2020 First Three Quarters (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 368,506,681.21 | 455,063,004.09 | | Net Cash Flow from Investing Activities | -394,853,120.27 | -565,099,897.22 | | Net Cash Flow from Financing Activities | -178,022,935.20 | 698,452,680.70 | | Net Increase/Decrease in Cash and Cash Equivalents | -218,761,597.14 | 586,123,219.64 | [Adoption and Adjustment of New Lease Standards from 2021](index=12&type=section&id=Adoption%20and%20Adjustment%20of%20New%20Lease%20Standards%20from%202021) Effective January 1, 2021, the company adopted new lease standards, adjusting the opening balance sheet by recognizing right-of-use assets and lease liabilities while reclassifying certain fixed assets and long-term payables - In accordance with Ministry of Finance regulations, the company adopted new lease standards effective **January 1, 2021**, and adjusted relevant financial statement accounts[41](index=41&type=chunk) New Lease Standards' Major Impact on January 1, 2021 Balance Sheet | Item | Adjustment Amount (RMB) | | :--- | :--- | | **Assets** | | | Fixed Assets | -15,408,000.00 | | Right-of-Use Assets | +25,623,825.00 | | **Liabilities and Equity** | | | Lease Liabilities | +15,030,825.00 | | Long-term Payables | -4,317,450.00 | | Retained Earnings | -497,550.00 |

Financial Performance - The company reported a total revenue of RMB 1.2 billion for the first half of 2021, representing a year-on-year increase of 15%[16]. - Net profit attributable to shareholders reached RMB 150 million, up 20% compared to the same period last year[16]. - The company’s gross margin improved to 25%, an increase of 3 percentage points year-on-year[16]. - The company's operating revenue for the first half of the year reached ¥2,032,504,653.09, representing a 215.37% increase compared to the same period last year[20]. - Net profit attributable to shareholders increased by 112.95% to ¥73,287,343.07, driven by the successful acquisition of the French Bailian Group and its operational stability[21]. - Basic earnings per share rose to ¥0.29, reflecting a 93.34% increase year-over-year[20]. - The net cash flow from operating activities decreased by 19.42% to ¥226,448,291.75 compared to the previous year[20]. - The company's total assets slightly increased by 0.02% to ¥5,601,552,826.72 at the end of the reporting period[20]. - The weighted average return on equity improved to 2.81%, an increase of 1.3 percentage points from the previous year[20]. - The company reported a non-recurring loss of ¥2,889,979.50 from the disposal of non-current assets[22]. - The net profit for the same period was CNY 7,328.73 million, reflecting a year-on-year growth of 112.95%[53]. - Revenue from new energy vehicle products reached CNY 26,849.06 million, accounting for 13.33% of main business revenue, with a year-on-year increase of 165.98%[56]. Market Expansion and Product Development - User data indicates a growth in active customers by 10% to 500,000 during the reporting period[16]. - The company plans to launch two new product lines in Q3 2021, aiming to capture a larger market share in the automotive sector[16]. - The company is expanding its market presence in Europe, with plans to establish a new manufacturing facility by the end of 2021[16]. - The company has established stable partnerships with renowned automotive manufacturers such as Tesla, NIO, and BMW, enhancing its brand recognition in the aluminum die-casting sector[41]. - The acquisition of the French company has expanded the company's product offerings to include complex aluminum lightweight brake components and chassis parts[42]. - The company has developed new clients such as Xiaokang and Niuchuang, expanding its market presence in the automotive sector[58]. Research and Development - Investment in R&D increased by 30% to RMB 100 million, focusing on advanced casting technologies[16]. - Research and development expenses increased by 154.39% to 61,600,899.78 RMB, attributed to higher investment in new project development[62]. - The company has invested in 7 large die-casting machines, including 2 units of 6000T, to enhance the development of integrated body structure components[57]. - The company’s comprehensive process capabilities include high-pressure, low-pressure, and gravity casting, allowing for a diverse range of aluminum alloy products[42]. Industry Trends and Demand - The automotive industry is experiencing a growing demand for precision die-casting parts, particularly in the context of lightweight and high-safety products for both traditional and new energy vehicles[31]. - The global market for aluminum alloy die-casting parts is expected to continue its rapid growth, driven by the automotive industry's shift towards lightweight materials[31]. - The lightweighting of vehicles is driven by energy-saving policies, with a 10% reduction in vehicle weight leading to a 6%-8% decrease in fuel consumption[32]. - The penetration rate of new energy vehicles (NEVs) in China is expected to rise from 4.9% in 2019 to 16%-25% by 2025, with projected sales increasing from 1.06 million units in 2019 to 6 million units by 2025[32]. - The lightweighting of vehicles is increasingly urgent due to the demand for improved performance in electric vehicles, with a 10 kg reduction in weight increasing range by 2.5 km[32]. Risks and Challenges - Management highlighted potential risks including supply chain disruptions and fluctuating raw material prices that could impact future performance[16]. - The company faces risks related to the automotive industry's cyclical fluctuations and potential shortages of upstream raw materials, which could impact production and profitability[71]. - The company's main raw material is aluminum alloy, and fluctuations in aluminum prices pose a risk to operational performance due to the cost-plus pricing model[74]. - Increased competition in the automotive aluminum alloy die-casting industry may lead to a decline in market share if the company fails to enhance product competitiveness[75]. - High foreign sales revenue exposes the company to exchange rate fluctuations, which could result in foreign exchange losses affecting profit levels[76]. - Talent retention is critical for the company, as the loss of key personnel could lead to operational disruptions and potential leakage of core technologies[77]. Environmental Management - The company has established a third-party certified environmental management system to ensure compliance with environmental regulations[101]. - The company has received the "China Green Foundry Enterprise" certificate from the China Foundry Association in 2020[101]. - The company has implemented measures to reduce carbon emissions, including the gradual elimination of high-energy-consuming equipment and the use of clean energy[102]. - The company has set up a wastewater treatment system to ensure that industrial wastewater is treated and reused in compliance with standards[100]. - The company has installed emission control equipment to meet air pollution discharge standards for both melting and molding processes[100]. - The company has taken measures to manage noise pollution, ensuring that factory noise meets industrial standards[100]. Corporate Governance and Compliance - The company commits to providing accurate and complete information regarding the major asset restructuring, ensuring no false statements or significant omissions exist[108]. - There are no ongoing criminal investigations or administrative penalties against the company's directors, supervisors, or senior management in the past three years[109]. - The company ensures independent operational capabilities with assets, personnel, qualifications, and abilities to sustain market-oriented operations[115]. - The company commits to minimizing related party transactions and will sign agreements for unavoidable transactions in compliance with laws and regulations[115]. - The company will comply with legal and regulatory requirements in all transactions and maintain transparency in its operations[112]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period is 13,384[146]. - The total number of shares before the change was 258,768,206, and after the change, it increased to 261,484,460 shares[144]. - The basic earnings per share remained at RMB 0.28 before and after the share change[144]. - The net asset value per share decreased from RMB 10.33 to RMB 10.22 due to the share change[144]. - The company has a total of 30,000,000 shares held by each of the major shareholders, including Tang Jiexiong, Tang Jiebang, Tang Jiewei, and Tang Jiecao, representing 11.47% of the total shares[149].

Financial Performance - The net profit attributable to the parent company for 2020 was CNY 83,804,799.20, while the net profit for the parent company was CNY -36,243,314.39[6]. - The undistributed profits at the end of 2020 amounted to CNY 54,392,840.22 after distributing cash dividends of CNY 34,738,381.50[6]. - The proposed cash dividend distribution is CNY 1.50 per 10 shares (including tax), with no capital increase or bonus shares planned[6]. - The company reported a total of CNY 125,374,536.11 in undistributed profits at the beginning of the year[6]. - The company's operating revenue for 2020 was CNY 2,602,568,883.02, representing a 69.25% increase compared to CNY 1,537,710,088.22 in 2019[26]. - The net profit attributable to shareholders for 2020 was CNY 83,804,799.20, a 17.98% increase from CNY 71,034,496.45 in 2019[26]. - The net cash flow from operating activities increased by 233.52% to CNY 782,935,809.34 in 2020, up from CNY 234,751,943.74 in 2019[26]. - Total assets grew by 42.47% to CNY 5,600,601,266.66 at the end of 2020, compared to CNY 3,931,181,469.52 at the end of 2019[26]. - The basic earnings per share for 2020 was CNY 0.36, a 12.50% increase from CNY 0.32 in 2019[26]. - The company reported a significant increase in net profit after deducting non-recurring gains and losses, reaching CNY 84,074,475.67, which is a 40.34% increase from CNY 59,908,666.53 in 2019[26]. - The weighted average return on net assets for 2020 was 3.48%, slightly down from 3.49% in 2019[29]. - The company’s gross profit margin for 2020 was 23.56%, which would be 28.00% if excluding the impact of newly consolidated entities[77]. - The net profit for 2020 was CNY 89.95 million, representing a year-on-year increase of 26.63%. The net profit attributable to the parent company was CNY 83.80 million, up 17.98%[76]. Acquisitions and Expansions - The company completed the acquisition of France's Baolian Group, enhancing its global production layout and operational capabilities[75]. - The acquisition of France's Baolian Group has expanded the company's product offerings, including turbocharging systems and complex aluminum lightweight brake components[63]. - The company completed the acquisition of 100% equity in Le Bélier Group for a total price of €239.6872 million, with the controlling stake valued at €144.0794 million[116]. - The company plans to establish a second production base in the Yangtze River Delta region and expand capacity at existing facilities[85]. - The company’s subsidiary in Jiangsu is undergoing expansion and modernization to enhance low-pressure and gravity casting capacity, improving order response and product delivery capabilities[83]. Market and Industry Trends - The global market for aluminum alloy die-castings in the automotive sector is experiencing rapid growth, driven by increasing demand for lightweight components in both traditional and electric vehicles[47]. - The automotive industry's shift towards lightweight materials is driven by energy-saving policies, with a 10% reduction in vehicle weight leading to a 6%-8% decrease in fuel consumption[51]. - The penetration rate of new energy vehicles (NEVs) is expected to rise significantly, from 2.6% in 2019 to an estimated 16%-25% by 2025, indicating a growing market for lightweight components[51]. - Aluminum and high-strength steel are projected to dominate the lightweight materials market, with aluminum expected to account for nearly 65% of the market by 2020[52]. - The automotive industry's increasing focus on lightweight design and materials is reshaping the market landscape, with significant implications for the company's growth strategy[51]. - The company has established long-term partnerships with major automotive manufacturers, which requires passing rigorous supplier qualification processes that can take 1-2 years[46]. Research and Development - R&D expenses for the year amounted to CNY 83.49 million, representing 3.21% of total revenue, with multiple products achieving mass production approval[82]. - The company aims to enhance its R&D and innovation capabilities, focusing on opportunities in "automotive lightweighting," "new energy vehicles," and "large integrated casting technology" in 2021[131]. - The company’s new product development project achieved a tensile strength of 315 MPa and a yield strength of 204 MPa, indicating significant advancements in manufacturing technology[82]. - The company has implemented a comprehensive procurement management system to control costs and ensure the quality of raw materials and components[40]. Risks and Challenges - The company faces risks from fluctuating raw material prices, particularly aluminum, which could impact pricing and profitability[143]. - The company is exposed to market competition risks as new entrants join the automotive aluminum die-casting sector, potentially affecting market share[144]. - The company has not experienced any major product recalls due to quality issues, but faces potential compensation risks if significant quality problems arise in the future[152]. - The company is at risk of management challenges due to the expansion of assets and business scale following the acquisition, necessitating improvements in management capabilities[151]. - Changes in national laws or regulations could affect the company's eligibility for tax incentives, potentially impacting future operating performance[153]. Corporate Governance - The board of directors and supervisory board members have confirmed the accuracy and completeness of the annual report[4]. - The company has established specific conditions for stopping the stock price stabilization measures, including a sustained stock price above the net asset value for five consecutive trading days[171]. - The company guarantees that all information and documents related to the transaction are true, accurate, and complete, with no false records or misleading statements[195]. - The company’s management will ensure that their personal consumption behavior is constrained to protect company interests[194]. - The company has committed to not engaging in any business activities that compete with its main operations, ensuring no conflicts of interest among its major shareholders and management[178].

Financial Performance - Operating revenue for the period was CNY 1,050,665,806.84, representing a significant increase of 307.41% year-on-year[11]. - Net profit attributable to shareholders was CNY 50,154,358.15, up 389.15% from the same period last year[11]. - Basic earnings per share increased to CNY 0.1938, a rise of 317.67% year-on-year[11]. - The net profit after deducting non-recurring gains and losses was CNY 48,827,338.56, reflecting a year-on-year increase of 1,515.36%[11]. - Total operating revenue for Q1 2021 reached ¥1,050,665,806.84, a significant increase of 307.5% compared to ¥257,886,483.39 in Q1 2020[45]. - Net profit for Q1 2021 was ¥50,154,358.15, compared to ¥10,253,431.76 in Q1 2020, representing an increase of 388.5%[48]. - Basic earnings per share for Q1 2021 were ¥0.1938, up from ¥0.0464 in Q1 2020, indicating a growth of 317.2%[48]. Cash Flow - Net cash flow from operating activities was CNY 168,721,795.02, an increase of 32.25% compared to the previous year[11]. - Cash flow from operating activities netted RMB 168,721,795.02, a 32.25% increase from RMB 127,579,356.37[24]. - Cash flow from investing activities showed a net outflow of RMB -95,329,706.12, a 134.26% increase in outflow compared to RMB -40,693,399.74[24]. - Cash flow from financing activities recorded a net outflow of RMB -202,218,471.78, a significant increase in outflow of 455.86% from RMB 56,825,953.11[24]. - The net cash flow from operating activities was -126,796,410.47 RMB, a significant decrease compared to 245,340,040.38 RMB in the same period last year[60]. - Cash inflow from operating activities totaled 172,053,784.29 RMB, a decline from 298,022,179.85 RMB in the previous year[60]. - Cash outflow from operating activities increased to 298,850,194.76 RMB, compared to 52,682,139.47 RMB in the same quarter last year[60]. Assets and Liabilities - Total assets at the end of the reporting period reached CNY 5,623,759,446.71, a 0.41% increase compared to the end of the previous year[11]. - Total current assets amounted to RMB 2,136,188,117.01, up from RMB 2,081,708,489.41[31]. - Total liabilities decreased to ¥2,999,452,366.47 from ¥3,019,805,484.82, representing a decline of approximately 0.67%[36]. - Owner's equity increased to ¥2,624,307,080.24 from ¥2,580,795,781.84, marking an increase of about 1.68%[36]. - The total assets decreased to ¥3,364,949,993.59 in Q1 2021 from ¥3,541,463,033.97 in Q1 2020, a decline of approximately 5.0%[45]. - The total liabilities were 2,081,708,489.41 RMB, remaining stable compared to the previous year[65]. Shareholder Information - The total number of shareholders at the end of the reporting period was 19,142[18]. - The top five shareholders each hold 30,000,000 shares, representing 11.56% of the total shares[18]. Research and Development - Research and development expenses for Q1 2021 were ¥31,226,527.92, compared to ¥11,738,858.12 in Q1 2020, marking an increase of 166.6%[45]. - Research and development expenses increased to ¥4.17 million in Q1 2021, up from ¥2.62 million in Q1 2020, reflecting a 59.5% rise[52]. Tax and Other Expenses - Tax expenses for Q1 2021 were ¥9,137,017.26, up from ¥2,191,607.36 in Q1 2020, reflecting an increase of 316.5%[48]. - Other comprehensive income after tax for Q1 2021 was -¥33,777,054.38, compared to ¥50,047.15 in Q1 2020[48]. Compliance and Standards - The company is in compliance with the new leasing standards effective from January 1, 2021, which may impact future financial reporting[76].

Financial Performance - Net profit attributable to shareholders increased by 56.80% to CNY 74,143,299.34 year-on-year[11] - Operating income rose by 34.28% to CNY 1,456,332,800.04 for the first nine months of the year[11] - The company reported a net profit excluding non-recurring gains and losses of CNY 64,895,543.59, up 70.45% year-on-year[11] - Net profit for the period reached ¥78,125,909.51, an increase of 65.22% compared to ¥47,285,314.38 in the previous period, primarily due to increased gross profit and the consolidation of Bailian Group's financials[30] - The company reported a net profit of ¥76,393,532.13 for the period, down from ¥125,374,536.11, indicating a decline of approximately 39.1%[49] - Net profit for Q3 2020 reached RMB 43,711,205.68, compared to RMB 9,679,923.10 in Q3 2019, representing a growth of 351.5%[57] Earnings Per Share - Basic earnings per share increased by 57.14% to CNY 0.33 per share[14] - Diluted earnings per share rose by 47.62% to CNY 0.31 per share[14] - Basic earnings per share for Q3 2020 was RMB 0.18, compared to RMB 0.04 in Q3 2019, indicating a 350% increase[59] Assets and Liabilities - Total assets increased by 60.22% to CNY 6,298,733,708.43 compared to the end of the previous year[11] - The company's total assets increased significantly, with fixed assets rising by 56.61% to ¥2,141,899,420.24 from ¥1,367,695,714.92 due to the consolidation of Le Bélier S.A.[25] - Total liabilities increased to ¥3,216,595,433.67, up from ¥1,663,275,070.05, representing a growth of approximately 93.3% year-over-year[44] - Non-current liabilities increased significantly, with long-term borrowings rising to ¥1,020,750,026.43 from ¥245,326,786.36[42] - Total assets reached approximately $2.53 billion, with current assets totaling $830.77 million and non-current assets at $1.69 billion[88] Cash Flow - Net cash flow from operating activities surged by 186.21% to CNY 455,063,004.09 compared to the same period last year[11] - Operating cash flow net amount was ¥455,063,004.09, up 186.21% from ¥158,997,490.15 in the previous period, driven by increased cash received from sales of goods and services[30] - Cash flow from investment activities was -¥565,099,897.22, a decrease of 40.93% compared to -¥956,652,827.50 in the previous period, mainly due to increased investment in financial products[30] - Cash and cash equivalents at the end of the period totaled 1,258,965,314.30 RMB, a significant increase from 324,792,679.67 RMB at the end of the same period last year, indicating strong liquidity[74] Shareholder Information - The total number of shareholders at the end of the reporting period was 16,167[16] - The top five shareholders each hold 30,000,000 shares, representing 12.37% of the total shares[16] Consolidation and Acquisitions - The company completed the acquisition of 61.96% of Bailian Group's shares, with a total transaction value not exceeding €94.24 million[32] - The goodwill recorded was ¥330,619,434.82, resulting from the acquisition of 61.96% equity in Le Bélier S.A.[25] Operating Costs - The company reported a 31.54% increase in operating costs, totaling ¥1,094,729,149.40 compared to ¥832,237,245.57 in the previous period, due to the consolidation of Le Bélier S.A.[28] - Financial expenses increased by 48.97% to ¥39,238,345.88, mainly due to higher loan interest expenses[30] - Management expenses rose by 64.22% to ¥108,947,267.50, attributed to increased acquisition costs and the consolidation of Bailian Group[30] Inventory and Receivables - Inventory increased by 110.71% to ¥430,345,665.05 from ¥204,232,444.66, mainly due to the consolidation of Le Bélier S.A.[25] - Accounts receivable rose by 113.82% to ¥769,651,417.20 from ¥359,948,576.79, primarily due to the inclusion of Le Bélier S.A. in the consolidated financial statements[22]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥644,488,103.07, a decrease of 12.85% compared to ¥739,484,340.09 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was ¥34,414,703.83, down 8.48% from ¥37,605,391.28 in the previous year[21]. - The net cash flow from operating activities increased by 245.36% to ¥281,007,391.89, compared to ¥81,366,194.42 in the same period last year[21]. - The company reported a decrease of 26.41% in net profit after deducting non-recurring gains and losses, amounting to ¥24,379,397.53 compared to ¥33,130,156.69 last year[21]. - Basic earnings per share decreased by 11.76% to ¥0.15 from ¥0.17 in the same period last year[22]. - The weighted average return on net assets decreased by 0.33 percentage points to 1.51% from 1.84% in the previous year[22]. - The company achieved operating revenue of 644.49 million yuan in the reporting period, a year-on-year decrease of 12.85%[50]. - The net profit attributable to the parent company was 34.41 million yuan, down 8.48% year-on-year, primarily due to the impact of the COVID-19 pandemic on downstream automotive production and sales[50]. - In Q2 2020, the company reported operating revenue of 386.60 million yuan, a quarter-on-quarter increase of 49.91%, and a net profit of 24.16 million yuan, up 135.64% from Q1[50]. Assets and Liabilities - The net assets attributable to shareholders of the listed company increased by 7.13% to ¥2,429,543,224.51 from ¥2,267,906,399.47 at the end of the previous year[21]. - Total assets rose by 1.17% to ¥3,977,137,477.88 from ¥3,931,181,469.52 at the end of the previous year[21]. - The total liabilities decreased to CNY 1,547,594,253.37 from CNY 1,663,275,070.05, indicating a reduction of approximately 6.9%[141]. - The company's equity attributable to shareholders rose to CNY 2,429,543,224.51 from CNY 2,267,906,399.47, marking an increase of about 7.1%[141]. - Short-term borrowings increased to CNY 444,117,223.41 from CNY 377,224,826.82, which is an increase of approximately 17.7%[140]. - The total amount of other equity instruments held by owners is reported at 1,417,329,397.87 RMB, showing a healthy capital base[163]. Research and Development - The company has a strong focus on R&D, particularly in high vacuum die-casting technology, which has positioned it favorably in the lightweight structure components for electric vehicles[44]. - The company collaborates with universities and automotive manufacturers to enhance its R&D capabilities, forming a robust innovation mechanism[40]. - The company has received provincial-level recognition for multiple high-tech products, reflecting its strong technical research and development capabilities[39]. - Research and development expenses decreased by 24.33% to ¥24,215,012.39, indicating a reduction in investment in new product development[58]. - The company’s new product development process involves rigorous client evaluations and approvals, typically taking 1-2 years to become a qualified supplier[30]. Market and Industry Outlook - The automotive industry is expected to recover in the second half of 2020, following effective control of the COVID-19 pandemic and supportive policies[31]. - The global demand for precision die-casting parts is steadily increasing, particularly in the automotive and high-end manufacturing sectors[31]. - The global automotive aluminum alloy die-casting market is experiencing rapid growth, driven by increasing demand for lightweight materials and industry recovery[32]. - The company anticipates that the precision machining project in Jiangsu Wencan will reach production capacity in January 2023, with an expected annual revenue of 11,536.30 million RMB[66]. Strategic Partnerships and Clients - The company primarily engages in the R&D, production, and sales of precision die-casting aluminum alloy parts for mid-to-high-end automobiles, serving major clients like Tesla and General Motors[27]. - The company has established stable partnerships with major automotive manufacturers such as Tesla, General Motors, and Volkswagen, enhancing its brand recognition in the automotive aluminum alloy die-casting sector[34]. - The company has established a long-term stable partnership with major clients, leveraging advanced manufacturing technology and strict quality management[30]. Risks and Challenges - The company faces risks from intensified market competition, particularly in the die-casting industry, where many competitors are entering due to the automotive lightweight trend[72]. - High customer concentration poses a risk, as major clients are large automotive manufacturers; losing a key client could adversely affect operations[73]. - The company relies heavily on a few suppliers for aluminum alloy, which could lead to operational disruptions if supplier relationships change[74]. - The company’s aluminum alloy products are subject to price fluctuations, which could adversely affect operational performance if not adjusted timely[71]. - The automotive industry is experiencing cyclical fluctuations, with a notable decline in production volumes in recent years, impacting the company's revenue[71]. Corporate Governance and Compliance - The company has established a sound corporate governance structure to maintain operational independence[89]. - The company guarantees that its financial decisions are made independently without illegal interference[88]. - The company is committed to protecting the legal rights and interests of all shareholders[89]. - The company has not faced significant product quality issues, but future quality problems could result in compensation risks due to stricter regulations in the automotive industry[75]. Stock and Shareholder Matters - The company will initiate stock repurchase measures if the stock price falls below the audited net asset value per share for 20 consecutive trading days within three years of listing[91]. - The stock repurchase plan must be approved by the shareholders' meeting and will be executed within 10 trading days after the conditions are met[91]. - The company will ensure compliance with all legal and regulatory requirements regarding corporate governance and stock management[90]. - The company will propose supplementary or alternative commitments to protect the rights of shareholders and investors[97]. Environmental and Social Responsibility - The company has implemented ISO 14001 environmental management system certification, ensuring compliance with environmental regulations[118]. - The company has established a wastewater treatment system and air pollution control measures to minimize environmental impact[118].

Financial Performance - Net profit attributable to shareholders was CNY 10,253,431.76, a decrease of 70.28% year-on-year[11]. - Operating revenue for the period was CNY 257,886,483.39, down 33.10% from the same period last year[11]. - Basic earnings per share decreased by 70.41% to CNY 0.0464[11]. - The weighted average return on equity was 0.45%, a decrease of 1.23 percentage points year-on-year[11]. - The company reported a net profit for the current period of CNY 10,253,431.76, a decrease of 70.28% compared to the same period last year, primarily due to a decline in operating revenue[25]. - Operating revenue decreased by 33.10% to CNY 257,886,483.39, attributed to a reduction in sales volume[23]. - Net profit for Q1 2020 was CNY 10,253,431.76, a decline of 70.3% compared to CNY 34,498,638.71 in Q1 2019[49]. - Total operating revenue for Q1 2020 was CNY 257,886,483.39, a decrease of 33.5% compared to CNY 385,475,392.48 in Q1 2019[47]. - Total operating costs for Q1 2020 were CNY 248,551,753.84, down 28.6% from CNY 348,101,898.18 in Q1 2019[47]. - Total comprehensive income for Q1 2020 was 3,648,449.42 RMB, down from 11,192,104.91 RMB in Q1 2019[55]. Cash Flow - Net cash flow from operating activities was CNY 127,579,356.37, an increase of 27.90% compared to the previous year[11]. - Cash flow from operating activities for Q1 2020 was 127,579,356.37 RMB, an increase of 28% compared to 99,746,190.63 RMB in Q1 2019[58]. - The net cash flow from operating activities for Q1 2020 was CNY 245,340,040.38, a significant increase from CNY 36,509,102.93 in Q1 2019, representing a growth of approximately 572%[60]. - Cash inflow from investment activities in Q1 2020 was 403,865,294.00 RMB, compared to 923,364.95 RMB in Q1 2019[58]. - Cash outflow from investment activities for Q1 2020 was 444,558,693.74 RMB, significantly higher than 75,646,878.76 RMB in Q1 2019[58]. - The net cash flow from investing activities was negative at CNY -403,993,331.00, compared to CNY -4,714,600.92 in Q1 2019, indicating a significant increase in investment expenditures[60]. - The company raised CNY 15,000,000.00 from financing activities, while cash outflows for debt repayment totaled CNY 20,000,000.00[63]. Assets and Liabilities - Total assets at the end of the reporting period reached CNY 4,014,724,019.15, an increase of 2.13% compared to the end of the previous year[11]. - Cash and cash equivalents increased by 44.91% to CNY 1,091,265,817.30, mainly due to the redemption of bank wealth management products[23]. - The company’s total liabilities decreased by 47.16% in tax payable to CNY 4,840,760.38, resulting from a reduction in VAT and corporate income tax[23]. - Total liabilities amounted to CNY 781,328,327.22, an increase from CNY 722,296,762.20 in the previous period[48]. - Total equity reached CNY 1,969,165,454.91, up from CNY 1,803,690,497.89[48]. - The total assets of the company as of the end of Q1 2020 were CNY 3,931,181,469.52, unchanged from the previous year[65]. - The company’s total current assets were reported at CNY 1,907,284,491.14, consistent with the previous year[65]. - The company’s total liabilities included short-term borrowings of CNY 377,224,826.82 and accounts payable of CNY 276,816,638.00[65]. - Total liabilities amounted to approximately $1.66 billion, with current liabilities at $806.42 million and non-current liabilities at $856.86 million[68]. - Total equity reached approximately $2.27 billion, with paid-in capital of $221.01 million and capital reserves of $1.23 billion[68]. Shareholder Information - The total number of shareholders at the end of the reporting period was 27,725[17]. - The top ten shareholders each held 12.95% of the shares, totaling 30,000,000 shares[17]. - The company’s total equity attributable to shareholders was approximately $2.27 billion, showcasing strong shareholder value[68]. Government Support and Expenses - The company received government subsidies amounting to CNY 5,119,981.49, which are closely related to normal business operations[13]. - Research and development expenses decreased by 32.45% to CNY 11,738,858.12, reflecting a reduction in R&D activities[24]. - The company reported a 40.32% increase in financial expenses to CNY 11,146,635.16, primarily due to increased interest expenses[24]. - The company reported a financial expense of CNY 11,146,635.16 in Q1 2020, compared to CNY 7,943,551.17 in Q1 2019[47].

Financial Performance - The net profit attributable to the parent company for 2019 was RMB 71,034,496.45, with the parent company achieving a net profit of RMB 33,471,701.13 after a 10% statutory surplus reserve of RMB 3,347,170.11[7] - The distributable profit for the parent company after deducting the cash dividend of RMB 66,000,000.00 was RMB 30,124,531.02, leading to a cumulative undistributed profit of RMB 125,374,536.11 by the end of 2019[7] - The proposed cash dividend is RMB 1.50 per 10 shares (including tax), with no capital increase or bonus shares planned, pending approval at the 2019 annual general meeting[7] - The company's operating revenue for 2019 was CNY 1,537,710,088.22, a decrease of 5.09% compared to 2018[29] - The net profit attributable to shareholders for 2019 was CNY 71,034,496.45, down 43.28% from the previous year[29] - The net profit after deducting non-recurring gains and losses was CNY 59,908,666.53, representing a decline of 49.58% year-on-year[29] - The basic earnings per share for 2019 was CNY 0.32, a decrease of 48.39% compared to 2018[30] - The weighted average return on net assets was 3.49%, down 3.81 percentage points from the previous year[30] - The net cash flow from operating activities for 2019 was CNY 234,751,943.74, an increase of 28.44% year-on-year[29] - Operating profit was CNY 77.38 million, down 45.25% year-on-year, while net profit was CNY 71.03 million, a decline of 43.28%[75] Risk Factors - The report includes a risk statement regarding future plans and development strategies, cautioning investors about potential investment risks[8] - The report outlines potential risks the company may face in future developments, which are detailed in the operational discussion section[11] - The company experienced a significant impact from the automotive market environment, leading to a decrease in revenue and gross margin[31] - The company faces risks from fluctuating aluminum prices, which are influenced by international and domestic economic conditions, potentially impacting operational performance if prices change rapidly[133] - The company has a high customer concentration, primarily serving large domestic and international automotive manufacturers, which poses risks if major clients experience adverse changes[134] - The company relies on a limited number of suppliers for aluminum alloy, and any disruption in these relationships could negatively affect production[134] - The company has a significant portion of its revenue from foreign sales, making it vulnerable to exchange rate fluctuations that could impact profit levels[133] - The outbreak of COVID-19 has affected the company's production safety and order delivery, with ongoing global pandemic concerns potentially impacting foreign market orders[133] - The company is facing increased competition in the die-casting industry, with new entrants attracted by the automotive lightweight trend, which could affect market share[133] Corporate Governance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[9] - The company has not violated any decision-making procedures in providing guarantees[9] - The company emphasizes the importance of accurate financial reporting and has declared the completeness and accuracy of the annual report[5] - The actual controllers and their family members collectively hold 40.72% of the company's shares, which raises governance risks if internal controls are insufficient[139] - The company has a commitment to ensure that minority shareholders have sufficient opportunities to express their opinions during the profit distribution decision-making process[150] - The company’s independent directors and supervisory board must provide clear opinions on any adjustments to the profit distribution policy[150] Investment and R&D - The company has established a robust customer base, including major clients such as Tesla, Daimler, and Magna, with significant sales contributions from these partnerships[70] - R&D expenses amounted to 6,247.01 million yuan, representing 4.06% of operating revenue, with multiple products receiving mass production approval[73] - The company has developed a strong R&D and innovation capability through collaborations with universities and automotive manufacturers, enhancing its technological edge[63] - The company plans to enhance its production capacity at existing sites and establish a second production base in the Yangtze River Delta region[74] - The company is focusing on technological innovation and improving management efficiency through investments in a new R&D center and information technology projects[74] - The company plans to increase R&D investment in aluminum lightweight technology and strengthen cooperation with universities and research institutions to enhance technical reserves[130] Shareholder Returns - The company plans to distribute at least 30% of its average distributable profit as cash dividends over the next three years, ensuring shareholder returns[142] - Cash dividends will be prioritized, with a minimum of 15% of distributable profits allocated for cash distribution if no major investments are planned[143] - The company distributed a cash dividend of 33,151,815.90 RMB in 2019, which represents 46.67% of the net profit attributable to ordinary shareholders[151] - In 2018, the cash dividend amounted to 66,000,000.00 RMB, accounting for 52.70% of the net profit attributable to ordinary shareholders[151] - The company did not propose a cash profit distribution plan for the reporting period despite having positive distributable profits[152] Compliance and Legal Commitments - The company committed to ensuring that the prospectus for its initial public offering (IPO) does not contain false records, misleading statements, or significant omissions[176] - The company will take legal responsibility and civil compensation for any failure to fulfill commitments made in the prospectus, except for uncontrollable circumstances[186] - The company will disclose the specific reasons for any failure to fulfill commitments and propose supplementary or alternative commitments to protect the interests of shareholders and investors[186] - The company has implemented a new accounting policy effective January 1, 2019, in accordance with the revised financial instrument standards issued by the Ministry of Finance[199] - The impact of the new financial instrument standards resulted in adjustments to the book value of financial instruments, with a cumulative impact amounting to 8,630,011.16[200]

Financial Performance - Net profit attributable to shareholders decreased by 55.00% to CNY 47,285,314.38 year-on-year[16] - Operating revenue for the first nine months decreased by 9.14% to CNY 1,084,569,500.15 compared to the same period last year[16] - Basic earnings per share decreased by 61.11% to CNY 0.21 compared to the same period last year[16] - The company reported a decrease in net profit after deducting non-recurring gains and losses by 61.48% to CNY 38,072,081.08[16] - Net profit for the third quarter of 2019 was CNY 9,679,923.10, a decline of 78.5% compared to CNY 45,005,563.81 in Q3 2018[41] - The net profit for Q3 2019 was CNY 7,438,656.23, down 47.5% from CNY 14,218,251.85 in Q3 2018[46] - The total operating profit for the first three quarters of 2019 was CNY 30,318,049.21, a decline of 30.5% from CNY 43,534,660.94 in the same period of 2018[45] Assets and Liabilities - Total assets increased by 30.48% to CNY 3,759,113,109.11 compared to the end of the previous year[16] - Total assets reached approximately $3.76 billion, compared to $2.88 billion, representing a growth of 30.5% year-over-year[32] - Current liabilities totaled approximately $664.38 million, an increase from $495.57 million, indicating a rise of 34.0%[32] - The total liabilities increased to approximately $1.53 billion from $840.92 million, reflecting an increase of 81.9%[32] - The company reported a decrease in accounts payable to approximately $276.67 million from $334.76 million, a decline of 17.3%[31] - Cash and cash equivalents decreased to approximately $61.25 million from $161.06 million, a drop of 61.9%[35] - The company’s long-term borrowings decreased to approximately $265.58 million from $342.70 million, a decline of 22.6%[32] Cash Flow - Net cash flow from operating activities increased by 122.20% to CNY 158,997,490.15 year-on-year[16] - The net cash flow from operating activities improved by 122.20% to RMB 159 million, mainly due to reduced cash payments for goods and services[26] - Cash flow from operating activities for the first three quarters of 2019 was CNY 158,997,490.15, an increase from CNY 71,555,645.06 in the same period of 2018[50] - Cash inflow from sales of goods and services was ¥291,064,071.80, down from ¥357,692,228.66 year-over-year[54] - The company reported a significant increase in cash outflow for operating activities, totaling ¥643,986,217.92, compared to ¥520,258,728.19 in the previous year[54] - The net cash flow from financing activities was ¥849,112,950.38, compared to ¥483,404,732.63 in the previous year[51] Shareholder Information - The total number of shareholders reached 23,101 by the end of the reporting period[21] - The top five shareholders each hold 30,000,000 shares, representing 13.64% of the total shares[21] Other Financial Metrics - The weighted average return on equity decreased by 4.18 percentage points to 2.32%[16] - Non-recurring gains and losses amounted to CNY 4,737,998.71 for the current period[20] - The company achieved a 54.13% increase in other income, totaling RMB 11.9 million, driven by higher government subsidies[26] - The company reported a significant increase in other receivables to approximately $300.40 million from $8.53 million, a rise of 3511.5%[35] - The company reported a total comprehensive income of CNY 9,693,829.02 for the third quarter of 2019, down from CNY 45,107,494.18 in the same quarter of 2018[43] Investment and Expenditures - The company invested ¥700,000,000.00 in capital expenditures during the period[51] - The total cash outflow for investment activities was ¥958,476,262.50, compared to ¥377,319,979.28 in the previous year[51]