Financial Performance - In 2021, the company achieved revenue of approximately CNY 2.647 billion, a year-on-year increase of 89.47% [2] - The net profit attributable to shareholders was approximately CNY 607 million, up 50.79% year-on-year [2] - R&D expenses for 2021 were about CNY 80.6742 million, reflecting a growth of 71.15% [2] - For Q1 2022, revenue reached approximately CNY 762 million, a 44.55% increase year-on-year [3] - The net profit for Q1 2022 was around CNY 180 million, growing by 19.50% year-on-year [3] Product Performance - Sales of mid-mounted motor products increased by approximately 39.44% in 2021, with stable gross margins [3] - Hub motor sales saw a significant rise of about 82%, although gross margins slightly declined due to rising raw material costs [3] - Direct-drive integrated wheel motors sold approximately 2.86 million units in 2021, but remained at a marginal profit level [3] Market Insights - The company anticipates a 15%-20% annual growth in the European market, despite potential impacts from the Russia-Ukraine conflict [4] - The U.S. market experienced explosive growth, with estimated sales increases of 80%-100% last year, although growth may slow this year due to subsidy changes [5] - The company has established an electric motorcycle division focusing on high-speed motors, primarily for export [6] Supply Chain and Operational Challenges - Supply chain tensions are expected to persist in the short term, affecting order fulfillment and production schedules [7] - The company has faced challenges due to chip shortages but has adapted by using domestic alternatives [9] - Recent COVID-19 restrictions in Suzhou have impacted production and logistics, but the company has managed to mitigate significant negative effects on order delivery [10] Strategic Responses - The company is committed to increasing R&D efforts to enhance innovation and product quality [14] - A new brand, "Sutong," was established to target the mid-to-high-end market, allowing the main brand to maintain its value [14] - The company emphasizes improving service quality and response times through overseas subsidiaries and partnerships [14]

Financial Performance - The company's operating revenue for Q3 2022 was ¥837,293,744.49, representing a year-on-year increase of 25.62%[5] - The net profit attributable to shareholders for Q3 2022 was ¥123,962,947.09, showing a slight decrease of 0.50% compared to the same period last year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥127,394,153.20, an increase of 4.54% year-on-year[5] - Total operating revenue for the first three quarters of 2022 reached RMB 2,379,393,842.19, an increase of 25.3% compared to RMB 1,898,302,602.14 in the same period of 2021[27] - The company reported a net profit of RMB 1,319,357,844.85 for the first three quarters, an increase from RMB 1,085,489,097.95 in the same period last year[25] - The net profit for the current period is CNY 474,336,998.90, an increase from CNY 434,044,058.61 in the previous period, representing a growth of approximately 9.4%[30] - The total profit for the current period is CNY 549,379,746.26, compared to CNY 508,024,154.75 in the previous period, indicating an increase of about 8.1%[30] - The operating profit stands at CNY 545,733,692.84, up from CNY 507,871,694.76, reflecting a growth of approximately 7.4%[30] - The company reported a gross profit margin of approximately 43.5% for the first three quarters of 2022, compared to 41.6% in the same period of 2021[50] Assets and Liabilities - The total assets at the end of the reporting period were ¥3,581,488,667.72, reflecting a 1.09% increase from the end of the previous year[8] - Total assets amounted to RMB 3,581,488,667.72, a slight increase from RMB 3,542,904,852.31 at the end of 2021[26] - The total liabilities decreased to RMB 734,846,187.34 from RMB 867,795,265.85, a reduction of 15.3%[24] - The total liabilities as of September 30, 2022, were ¥395,614,026.98, a decrease of 46.8% from ¥743,725,033.42 on December 31, 2021[48] - The total assets as of September 30, 2022, were ¥3,250,947,537.08, down from ¥3,445,529,822.62 at the end of 2021, a decrease of 5.6%[48] Shareholder Information - The total number of common shareholders at the end of the reporting period was 9,872[12] - The largest shareholder, Wang Qinghua, holds 40.40% of the shares, totaling 48,600,000 shares[13] - The company reported a total equity attributable to shareholders of ¥2,846,642,480.38, which is a 6.41% increase from the previous year[8] - The company's equity attributable to shareholders reached RMB 2,846,642,480.38, up from RMB 2,675,109,586.46, indicating a growth of 6.4%[26] - The total equity increased to ¥2,855,333,510.10 as of September 30, 2022, from ¥2,701,804,789.20 at the end of 2021, marking a growth of 5.7%[48] Cash Flow - The cash flow from operating activities for the year-to-date period increased by 129.32% due to higher cash receipts from sales and tax refunds[9] - The cash flow from operating activities for the current period is CNY 174,062,268.39, compared to CNY 75,903,315.77 in the previous period, showing a significant increase of about 129.0%[39] - Cash inflow from operating activities for the first three quarters of 2022 was CNY 1,698,652,478.65, an increase of 30.3% compared to CNY 1,303,112,296.85 in the same period of 2021[58] - Net cash flow from operating activities reached CNY 121,401,025.07, up 52.7% from CNY 79,534,404.43 in the previous year[58] - The total cash and cash equivalents at the end of the period is CNY 1,350,437,504.89, compared to CNY 1,153,159,061.90 at the end of the previous period, reflecting an increase of approximately 17.1%[41] - The company's cash and cash equivalents decreased to ¥1,177,113,291.17 from ¥1,549,301,582.60, reflecting a decline of 23.9%[46] - The ending balance of cash and cash equivalents was CNY 1,170,939,373.36, compared to CNY 1,069,558,634.38 at the end of the previous year[59] Research and Development - Research and development expenses increased to RMB 66,335,541.74, representing a 67.3% rise from RMB 39,697,968.30 in the first three quarters of 2021[27] - Research and development expenses for the first three quarters of 2022 totaled ¥60,846,031.23, an increase of 55.4% from ¥39,128,751.98 in the same period of 2021[50] Financial Expenses - The company's financial expenses showed a significant increase, with a net financial cost of -¥35,315,604.25 in the first three quarters of 2022, compared to -¥18,238,227.27 in the same period of 2021[50]

Financial Performance - The company's operating revenue for the first half of 2022 reached ¥1,542,100,097.70, representing a 25.19% increase compared to ¥1,231,791,616.46 in the same period last year[21]. - Net profit attributable to shareholders was ¥350,374,051.81, up 13.22% from ¥309,455,786.04 in the previous year[21]. - The net profit after deducting non-recurring gains and losses was ¥347,677,065.63, reflecting a 13.94% increase from ¥305,150,602.73 year-on-year[21]. - Basic earnings per share for the first half of 2022 were ¥2.91, up 13.23% from ¥2.57 in the same period last year[22]. - The total comprehensive income for the first half of 2022 was ¥347,288,141.99, compared to ¥307,473,119.14 in the same period of 2021[134]. - The company reported a net loss of approximately ¥240.63 million for the period[171]. - The total equity attributable to shareholders at the end of the reporting period was ¥2,376.46 million[178]. Cash Flow and Assets - The net cash flow from operating activities decreased by 42.66% to ¥105,267,517.69, down from ¥183,590,460.79 in the same period last year[21]. - Cash and cash equivalents decreased by 21.88% to ¥1,387,060,113.27, accounting for 39.54% of total assets[50]. - The total current assets decreased from RMB 3,042,681,914.64 to RMB 2,917,877,333.96, a reduction of approximately 4.1%[117]. - The total assets at the end of the reporting period were approximately ¥2,782.97 million[183]. - The total liabilities decreased from ¥743,725,033.42 to ¥468,169,138.62, a decline of about 37.0%[127]. Research and Development - R&D expenses rose by 70.54% to ¥41,679,169.78, driven by increased salaries for R&D personnel and new electric motorcycle projects[47]. - The company applied for a total of 70 patents during the reporting period, further strengthening its technological innovation capabilities[46]. - The company launched new mid-mounted motor products, M510 and M820, enhancing performance metrics such as weight, shock resistance, and sensitivity[43]. Market and Industry Trends - The global e-bike market continues to expand, with Europe, the US, and Japan being the primary markets, driven by increased consumer demand since 2020 due to the pandemic[27]. - In 2021, e-bike sales in Europe exceeded 5 million units, achieving a market penetration rate of approximately 23%[27]. - The US e-bike market saw sales double in 2020 to approximately 500,000-600,000 units, with continued high growth rates expected due to government incentives and low market penetration[27]. - In China, the e-bike market is still in its early stages, with significant growth potential as the government promotes green transportation initiatives[31]. Environmental and Compliance Measures - The company has implemented an environmental safety management system to reduce carbon emissions and enhance energy efficiency[73]. - The company has no significant environmental penalties and maintains compliance with pollution discharge standards[71]. - The company has committed to ensuring that the prospectus does not contain false records or misleading statements[77]. Shareholder and Governance Commitments - The company has committed to a 36-month lock-up period for major shareholders following the IPO, with automatic extensions under certain conditions[79]. - Major shareholders are restricted from transferring shares for 12 months post-IPO, with a maximum annual reduction of 25% thereafter[79]. - The commitments made by shareholders regarding related party transactions are legally binding and effective upon signing[82]. - The company has established measures to prevent dilution of immediate returns for shareholders[89]. Risks and Challenges - The company faces risks from rising raw material prices, including neodymium, chips, copper, and aluminum, which may adversely affect profit margins[60]. - The company has significant exposure to international trade risks, particularly in North America and Europe, which could impact competitiveness if trade relations deteriorate[57]. - The company is exposed to risks from recurring COVID-19 outbreaks, which may disrupt procurement, production, and shipping operations[61].

[Important Notice](index=1&type=section&id=%E9%87%8D%E8%A6%81%E5%86%85%E5%AE%B9%E6%8F%90%E7%A4%BA) The board and management guarantee the report's accuracy and completeness; financial statements for this quarter are unaudited - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, assuming individual and joint legal responsibility[4](index=4&type=chunk) - The company's head, chief accountant, and head of accounting department guarantee the truthfulness, accuracy, and completeness of the financial statement information in the quarterly report[4](index=4&type=chunk) - The first quarter financial statements are unaudited[5](index=5&type=chunk) [Key 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) This section outlines the company's Q1 2022 financial performance, including key accounting data, financial indicators, non-recurring gains/losses, and reasons for significant changes [Key Accounting Data and Financial Indicators](index=1&type=section&id=(%E4%B8%80)%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) In Q1 2022, revenue grew 44.55% to 762 million yuan, net profit to shareholders increased 19.50% to 180 million yuan, and EPS rose 19.20% to 1.49 yuan | Item | Current Period Amount (Yuan) | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 761,753,664.04 | 44.55 | | Net Profit Attributable to Shareholders of Listed Company | 179,560,036.60 | 19.50 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 176,488,790.44 | 18.57 | | Net Cash Flow from Operating Activities | 55,298,479.85 | 3.42 | | Basic Earnings Per Share (Yuan/share) | 1.49 | 19.20 | | Diluted Earnings Per Share (Yuan/share) | 1.49 | 19.20 | | Weighted Average Return on Net Assets (%) | 6.49 | Increased by 0.17 percentage points | | Item | Amount at End of Current Period (Yuan) | Amount at End of Prior Year (Yuan) | Change from Prior Year-End (%) | | :--- | :--- | :--- | :--- | | Total Assets | 3,607,872,244.37 | 3,542,904,852.31 | 1.83 | | Owners' Equity Attributable to Shareholders of Listed Company | 2,856,348,684.08 | 2,675,109,586.46 | 6.78 | [Non-Recurring Gains and Losses Items and Amounts](index=2&type=section&id=(%E4%BA%8C)%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) Total non-recurring gains and losses for the period were 3.07 million yuan, primarily from government grants, entrusted investments, and fair value changes | Item | Current Period Amount (Yuan) | | :--- | :--- | | Government subsidies included in current profit and loss | 661,371.69 | | Gains and losses from entrusted investments or asset management | 680,630.14 | | Gains and losses from changes in fair value of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities, and investment income from disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities, and other debt investments, excluding effective hedge accounting related to normal business operations | 1,758,900.00 | | Other non-operating income and expenses apart from the above | 562,084.00 | | Less: Income tax impact | 591,739.67 | | **Total** | **3,071,246.16** | [Changes and Reasons for Key Accounting Data and Financial Indicators](index=2&type=section&id=(%E4%B8%89)%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) Significant changes in financial indicators include a 2631.21% rise in trading financial assets, 112.00% in fixed assets, and increased R&D and administrative expenses due to salary hikes | Item Name | Change (%) | Primary Reason | | :--- | :--- | :--- | | Trading Financial Assets | 2,631.21 | Primarily due to the company's increased purchases of bank forward exchange settlement products | | Notes Receivable Financing | -34.41 | Primarily due to increased payments to suppliers using bank acceptance bills | | Prepayments | 69.13 | Primarily due to increased prepayments for materials | | Other Receivables | 108.67 | Primarily due to significant unreceived VAT export tax refunds by subsidiary Suzhou Goya Trading Co., Ltd | | Fixed Assets | 112.00 | Primarily due to the company's new office building reaching its intended usable state and being transferred to fixed assets | | Construction in Progress | -98.80 | Primarily due to the company's new office building reaching its intended usable state and being transferred to fixed assets | | Other Non-Current Assets | 32.30 | Primarily due to significant land payments made by subsidiary Bafang New Energy (Suzhou) Co., Ltd | | Employee Compensation Payable | -35.04 | Primarily due to the distribution of last year's annual bonuses during this period | | Item Name | Change (%) | Primary Reason | | :--- | :--- | :--- | | Other Payables | 85.47 | Primarily due to increased engineering deposits received by subsidiary Bafang New Energy (Suzhou) Co., Ltd | | Deferred Income Tax Liabilities | 2,631.21 | Primarily due to increased deferred income tax liabilities recognized from forward exchange settlement products | | Other Comprehensive Income | -33.77 | Primarily due to foreign currency translation differences for subsidiaries Bafang Netherlands and Bafang Poland | | Operating Revenue | 44.55 | Primarily due to expanded sales scale | | Operating Costs | 52.07 | Primarily due to increased operating revenue, leading to a corresponding increase in operating costs | | Taxes and Surcharges | 70.06 | Primarily due to higher VAT payments this period, leading to increased business taxes and surcharges | | Selling Expenses | 31.12 | Primarily due to expanded sales scale and increased sales personnel salaries | | Administrative Expenses | 97.42 | Primarily due to increased administrative personnel salaries | | Research and Development Expenses | 137.45 | Primarily due to increased R&D personnel salaries | | Financial Expenses | 101.70 | Primarily due to lower interest income for the parent company and exchange rate fluctuations during this period | | Other Income | -44.24 | Primarily due to lower income-related government subsidies received by the parent company this period | | Investment Income | — | Primarily due to maturity of the parent company's wealth management products generating income this period | | Gains from Changes in Fair Value | 330.27 | Primarily due to the company's estimation of forward exchange settlement product gains in accordance with relevant accounting standards | | Credit Impairment Loss (Losses shown with '-') | -79.22 | Primarily due to a decrease in bad debt provisions for accounts receivable of the parent company and subsidiary Bafang (Tianjin) Electric Technology Co., Ltd | | Non-Operating Income | 557.81 | Primarily due to subsidiary Bafang (Tianjin) Electric Technology Co., Ltd. receiving customer compensation | | Foreign Currency Financial Statement Translation Differences | 54.92 | Primarily due to foreign currency translation differences for subsidiaries Bafang Netherlands and Bafang Poland | | Net Cash Flow from Investing Activities | 88.72 | Primarily due to the parent company's higher investment product purchases in the prior year | | Impact of Exchange Rate Changes on Cash and Cash Equivalents | -151.85 | Primarily due to significant exchange rate fluctuations affecting the parent company's monetary funds during this period | [Shareholder Information](index=3&type=section&id=%E4%BA%8C%E3%80%81%20%E8%82%A1%E4%B8%9C%E4%BF%A1%E6%81%AF) Details total common shareholders, top ten shareholders' holdings, and related party relationships among major shareholders as of the reporting period end [Total Common Shareholders, Number of Preferred Shareholders with Restored Voting Rights, and Top Ten Shareholders' Holdings](index=3&type=section&id=(%E4%B8%80)%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) As of period-end, 5,669 common shareholders; top three: Wang Qinghua (40.40%), He Xianbing (16.31%), Hong Kong Securities Clearing (14.52%); Wang Qinghua held all restricted shares - Total common shareholders at period-end were **5,669**, with no preferred shareholders with restored voting rights[11](index=11&type=chunk) | Shareholder Name | Shareholder Nature | Shares Held (shares) | Holding Percentage (%) | Number of Restricted Shares Held (shares) | Pledge, Mark, or Freeze Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Wang Qinghua | Domestic Natural Person | 48,600,000 | 40.40 | 48,600,000 | None | | He Xianbing | Domestic Natural Person | 19,617,071 | 16.31 | | None | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 17,469,439 | 14.52 | | Unknown | | Yu Zhenhua | Domestic Natural Person | 10,383,000 | 8.63 | | None | | Huzhou Guanqun Information Consulting Center (Limited Partnership) | Other | 9,000,000 | 7.48 | | None | | National Social Security Fund 406 Portfolio | Other | 4,419,867 | 3.67 | | Unknown | | Fidelity Funds (Hong Kong) Limited - Client Account | Other | 1,099,149 | 0.91 | | Unknown | | Basic Pension Insurance Fund 16051 Portfolio | Other | 376,802 | 0.31 | | Unknown | | Changjiang Golden Sail No. 2 Stock Pension Product - Bank of Communications Co., Ltd. | Other | 369,913 | 0.31 | | Unknown | | Shanghai Lingren Private Equity Fund Management Partnership (Limited Partnership) - Lingren Excellence Evergreen II Private Securities Investment Fund | Other | 299,987 | 0.25 | | Unknown | - He Xianbing holds **59.97%** of Huzhou Guanqun's partnership interest as a limited partner; Yu Zhenhua holds **33.37%** as a general partner; other shareholders' related party relationships or concerted actions are unknown[17](index=17&type=chunk) [Other Reminders](index=5&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) No other significant information requiring investor attention regarding the company's operating performance during the reporting period - No other significant information requiring investor attention regarding the company's operating performance during the reporting period[18](index=18&type=chunk) [Quarterly Financial Statements](index=5&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) Presents the company's unaudited Q1 2022 consolidated and parent company financial statements, including balance sheets, income statements, and cash flow statements [Type of Audit Opinion](index=5&type=section&id=(%E4%B8%80)%E5%AE%A1%E8%AE%A1%E6%84%8F%E8%A7%81%E7%B1%BB%E5%9E%8B) This quarter's financial statements are unaudited - The financial statements for this quarter are unaudited[18](index=18&type=chunk) [Financial Statements](index=5&type=section&id=(%E4%BA%8C)%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) Details Bafang Electric (Suzhou) Co., Ltd.'s unaudited Q1 2022 consolidated and parent company balance sheets, income statements, and cash flow statements [Consolidated Balance Sheet](index=5&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) Consolidated total assets reached **3.61 billion yuan**, up **1.83%**; trading financial assets and fixed assets rose significantly, while liabilities decreased and equity grew | Item | March 31, 2022 (Yuan) | December 31, 2021 (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Monetary Funds | 1,786,629,269.71 | 1,775,633,452.12 | 0.62 | | Trading Financial Assets | 1,758,900.00 | 64,400.00 | 2631.21 | | Notes Receivable Financing | 75,822,378.12 | 115,600,518.68 | -34.41 | | Inventories | 499,178,844.54 | 400,535,976.54 | 24.63 | | Fixed Assets | 425,843,661.51 | 200,866,066.41 | 112.00 | | Construction in Progress | 2,659,415.75 | 221,873,847.70 | -98.80 | | Total Assets | 3,607,872,244.37 | 3,542,904,852.31 | 1.83 | | Total Liabilities | 751,523,560.29 | 867,795,265.85 | -13.40 | | Total Owners' Equity Attributable to Parent Company | 2,856,348,684.08 | 2,675,109,586.46 | 6.78 | [Consolidated Income Statement](index=8&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) Q1 2022 total operating revenue was **762 million yuan** (up **44.55%**), net profit **180 million yuan** (up **19.50%**); total operating costs rose **59.99%**, with notable increases in operating, administrative, and R&D expenses | Item | Q1 2022 (Yuan) | Q1 2021 (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 761,753,664.04 | 526,995,189.99 | 44.55 | | Total Operating Costs | 553,941,019.40 | 346,382,532.45 | 59.99 | | Operating Costs | 489,440,174.72 | 321,843,033.05 | 52.07 | | Selling Expenses | 13,889,007.60 | 10,592,758.57 | 31.12 | | Administrative Expenses | 25,094,089.08 | 12,710,721.52 | 97.42 | | Research and Development Expenses | 20,538,942.78 | 8,649,688.12 | 137.45 | | Financial Expenses | 174,380.78 | -10,238,885.84 | 101.70 (turned positive) | | Gains from Changes in Fair Value | 1,694,500.00 | 393,819.23 | 330.27 | | Net Profit | 179,560,036.60 | 150,261,848.36 | 19.50 | | Basic Earnings Per Share (Yuan/share) | 1.49 | 1.25 | 19.20 | [Consolidated Cash Flow Statement](index=10&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Q1 2022 operating cash flow was **55.30 million yuan** (up **3.42%**); investing cash flow turned positive due to reduced prior-year outlays; exchange rate changes had a negative impact | Item | Q1 2022 (Yuan) | Q1 2021 (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 55,298,479.85 | 53,471,526.91 | 3.42 | | Net Cash Flow from Investing Activities | -40,829,375.48 | -362,073,335.65 | 88.72 (reduced outflow) | | Impact of Exchange Rate Changes on Cash and Cash Equivalents | -2,012,464.86 | 3,880,956.46 | -151.85 (turned negative) | | Net Increase in Cash and Cash Equivalents | 12,456,639.51 | -304,720,852.28 | 104.09 (turned positive) | | Cash and Cash Equivalents at End of Period | 1,786,629,269.71 | 1,552,318,639.27 | 15.09 | - Net cash flow from investing activities changed by **88.72%**, primarily due to the parent company's higher investment product purchases in the prior year[10](index=10&type=chunk)[40](index=40&type=chunk) - The impact of exchange rate changes on cash and cash equivalents was **-2,012,464.86 yuan**, mainly due to significant exchange rate fluctuations affecting the parent company's monetary funds during the period[10](index=10&type=chunk)[40](index=40&type=chunk) [Parent Company Balance Sheet](index=11&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) Parent company total assets reached **3.45 billion yuan**, slightly up; fixed assets significantly grew due to new office building capitalization, while total liabilities notably decreased | Item | March 31, 2022 (Yuan) | December 31, 2021 (Yuan) | | :--- | :--- | :--- | | Monetary Funds | 1,530,149,970.35 | 1,549,301,582.60 | | Trading Financial Assets | 1,758,900.00 | 64,400.00 | | Notes Receivable | 94,432,921.97 | 115,453,770.12 | | Accounts Receivable | 471,727,993.63 | 535,846,815.09 | | Notes Receivable Financing | 60,459,209.91 | 84,849,984.88 | | Prepayments | 3,171,547.81 | 1,225,566.85 | | Other Receivables | 206,972,279.56 | 133,338,400.61 | | Inventories | 370,301,916.50 | 326,096,868.06 | | Fixed Assets | 397,733,415.21 | 173,512,073.70 | | Construction in Progress | 238,780.53 | 219,814,020.33 | | Total Assets | 3,454,494,340.22 | 3,445,529,822.62 | | Total Liabilities | 578,785,937.61 | 743,725,033.42 | | Total Owners' Equity | 2,875,708,402.61 | 2,701,804,789.20 | [Parent Company Income Statement](index=14&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) Q1 2022 parent company operating revenue was **590 million yuan** (up **35.23%**), net profit **171 million yuan** (up **14.91%**); sales, administrative, and R&D expenses all increased significantly | Item | Q1 2022 (Yuan) | Q1 2021 (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 590,099,822.74 | 436,432,614.43 | 35.23 | | Operating Costs | 334,437,885.28 | 242,645,236.19 | 37.83 | | Selling Expenses | 20,382,222.74 | 9,313,139.14 | 118.85 | | Administrative Expenses | 16,594,989.79 | 7,806,608.88 | 112.58 | | Research and Development Expenses | 19,182,466.75 | 8,600,907.29 | 123.03 | | Financial Expenses | -92,994.52 | -8,771,762.76 | 98.94 (reduced negative value) | | Net Profit | 170,653,903.62 | 148,508,474.20 | 14.91 | [Parent Company Cash Flow Statement](index=15&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Q1 2022 parent company operating cash flow was **32.07 million yuan** (down **26.05%**); investing cash flow significantly improved due to reduced investment outlays; exchange rate changes had a negative impact | Item | Q1 2022 (Yuan) | Q1 2021 (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 32,066,117.85 | 43,352,262.96 | -26.05 | | Net Cash Flow from Investing Activities | -48,059,549.63 | -406,160,033.73 | 88.17 (reduced outflow) | | Impact of Exchange Rate Changes on Cash and Cash Equivalents | -1,697,358.55 | 2,859,648.46 | -159.36 (turned negative) | | Net Increase in Cash and Cash Equivalents | -17,690,790.33 | -359,948,122.31 | 95.08 (reduced negative value) | | Cash and Cash Equivalents at End of Period | 1,530,149,970.35 | 1,471,108,370.81 | 3.90 | - Net cash flow from investing activities changed by **88.17%**, primarily due to reduced cash payments for investments[57](index=57&type=chunk)

Financial Performance - The company's operating revenue for Q3 2021 reached ¥666,510,985.68, representing a year-over-year increase of 68.59%[5] - The net profit attributable to shareholders for the first nine months of 2021 was ¥434,044,058.61, reflecting a 41.72% increase compared to the same period last year[5] - The basic earnings per share for the first nine months of 2021 was ¥3.61, an increase of 41.57% year-over-year[9] - Total operating revenue for the first three quarters of 2021 reached ¥1,898,302,602.14, a significant increase from ¥969,638,889.14 in the same period of 2020, representing a growth of approximately 96.0%[29] - Net profit for the third quarter of 2021 was ¥434,044,058.61, up from ¥306,263,800.37 in the same quarter of 2020, reflecting a growth of approximately 41.6%[33] - The total comprehensive income for the third quarter of 2021 was ¥430,897,296.12, compared to ¥305,103,143.16 in the same quarter of 2020, reflecting an increase of approximately 41.1%[33] - The net profit margin for the third quarter of 2021 was approximately 22.8%, compared to 24.0% in the same quarter of 2020, indicating a slight decrease in profitability[33] Assets and Liabilities - The total assets at the end of Q3 2021 amounted to ¥3,257,436,085.01, which is a 14.27% increase from the end of the previous year[9] - As of September 30, 2021, the company's total assets amounted to RMB 3,257,436,085.01, an increase from RMB 2,850,633,261.36 as of December 31, 2020, representing a growth of approximately 14.2%[20] - The company's current assets totaled RMB 2,746,643,453.49, compared to RMB 2,579,419,021.75 at the end of 2020, indicating an increase of about 6.5%[20] - Total liabilities amounted to ¥754,181,699.16, an increase from ¥547,745,131.85 in the previous period, showing a rise of about 37.7%[29] - The total equity attributable to shareholders reached ¥2,503,254,385.85, compared to ¥2,302,888,129.51 in the previous year, marking an increase of approximately 8.7%[29] - Total current liabilities increased to RMB 688,471,388.55 from RMB 515,311,921.41, representing a rise of approximately 33.6%[24] - The company reported a capital reserve of ¥1,401,651,006.34 and undistributed profits of ¥719,501,731.10[46] Cash Flow - The net cash flow from operating activities for the first nine months of 2021 decreased by 64.63% to ¥75,903,315.77, primarily due to increased accounts receivable and payables[5] - Operating cash inflow for the first three quarters of 2021 was 1,454,090,055.51 CNY, up from 957,599,787.85 CNY in 2020, representing a growth of approximately 52%[35] - Cash inflow from investment activities totaled 490,169,726.40 CNY, down from 1,799,221,684.67 CNY in 2020, indicating a decline of about 73%[37] - Net cash flow from investment activities was -541,475,548.01 CNY, contrasting with a positive flow of 468,124,711.54 CNY in the previous year[37] - Cash outflow from financing activities was 240,629,910.00 CNY, compared to 121,050,000.00 CNY in 2020, reflecting an increase of approximately 99%[37] - The ending cash and cash equivalents balance was 1,153,159,061.90 CNY, down from 1,348,796,035.84 CNY year-over-year[37] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 4,467[13] - The largest shareholder, Wang Qinghua, holds 40.39% of the company's shares, totaling 48,600,000 shares[13] Operational Developments - The company completed the relocation of its new factory in September 2021, with normal operations currently ongoing[16] - The company has not provided specific guidance for future performance in this report[18] Research and Development - Research and development expenses for the third quarter of 2021 were ¥39,697,968.30, compared to ¥26,084,256.96 in the same quarter of 2020, representing an increase of about 52.3%[29] Financial Standards and Compliance - The company adopted new leasing standards effective January 1, 2021, impacting financial statement adjustments[46] - The company’s financial statements reflect compliance with the revised accounting standards issued by the Ministry of Finance[46]

Financial Performance - The company's operating revenue for the first half of 2021 reached ¥1,231,791,616.46, representing a 114.49% increase compared to ¥574,293,660.98 in the same period last year[20]. - Net profit attributable to shareholders was ¥309,455,786.04, up 71.33% from ¥180,616,934.31 year-on-year[20]. - The net profit after deducting non-recurring gains and losses was ¥305,150,602.73, reflecting a 90.33% increase from ¥160,327,507.84 in the previous year[20]. - The net cash flow from operating activities was ¥183,590,460.79, which is a 14.57% increase compared to ¥160,249,551.64 in the same period last year[20]. - Basic earnings per share for the reporting period were ¥2.57, a 70.20% increase from ¥1.51 in the same period last year[20]. - The diluted earnings per share also stood at ¥2.57, reflecting the same growth rate of 70.20%[20]. - The total comprehensive income for the current period is 180,616,934.31 RMB, reflecting a decrease of 188,748.57 RMB compared to the previous period[161]. - The company reported a total comprehensive income of CNY 307,473,119.14 for the first half of 2021, compared to CNY 180,428,185.74 in the same period of 2020, reflecting an increase of approximately 70.5%[137]. Assets and Liabilities - The total assets of the company at the end of the reporting period were ¥3,184,368,921.40, an increase of 11.71% from ¥2,850,633,261.36 at the end of the previous year[20]. - The total current assets as of June 30, 2021, amounted to CNY 2,739,745,527.71, an increase from CNY 2,579,419,021.75 at the end of 2020, representing a growth of approximately 6.2%[117]. - Current liabilities rose to ¥750,783,817.60, an increase of approximately 45.6% from ¥515,311,921.41[122]. - Total liabilities reached ¥807,905,056.21, compared to ¥547,745,131.85, showing an increase of about 47.4%[122]. - Shareholders' equity totaled ¥2,376,463,865.19, up from ¥2,302,888,129.51, representing a growth of approximately 3.2%[122]. Research and Development - The company specializes in the R&D, production, and sales of electric bicycle motors and related electrical systems, with a strong focus on customization and standardization[25]. - The company has been recognized as a "high-tech enterprise" since 2011 and holds multiple invention and utility model patents, indicating a strong R&D capability[34]. - The company plans to continue increasing R&D investment to develop better-performing products to meet customer demands[34]. - Research and development expenses for the first half of 2021 amounted to CNY 24,439,481.74, compared to CNY 13,605,006.08 in the first half of 2020, indicating an increase of about 79.9%[131]. Market Trends - The electric bicycle market in Europe has shown a compound annual growth rate of approximately 31.37% from 2006 to 2019, with sales reaching about 5.1 million units in 2020[29]. - In the U.S. market, electric bicycle sales are projected to double in 2020, reaching approximately 500,000 to 600,000 units, driven by new regulations and e-commerce growth[32]. - The domestic electric bicycle production in China reached 12.61 million units in the first five months of 2021, reflecting a year-on-year growth of 42%[32]. - The market for shared electric bicycles is expected to grow, particularly in lower-tier cities, as part of the push for green and low-carbon transportation solutions[32]. Environmental Impact - The company is committed to the research, production, sales, and technical services of electric bicycle motors and related electrical systems, with minimal environmental impact due to low pollutant emissions[68]. - No production wastewater is generated; only domestic sewage is treated and discharged into the municipal sewage system[71]. - Emissions from welding, potting, and kitchen fumes are treated and comply with relevant air pollution discharge standards[71]. - Noise levels from production equipment are maintained below 65 dB(A) during the day and 55 dB(A) at night, meeting industrial noise standards[71]. - Solid waste management practices ensure zero emissions through proper storage and regular disposal[71]. Shareholder Commitments - The company has committed to maintaining stock price stability and ensuring timely fulfillment of promises related to shareholding[74]. - The actual controller and major shareholder Wang Qinghua has committed to avoid any form of competition with the company's main business or products, including not establishing or investing in similar businesses[81]. - The company has established a framework to ensure fair pricing in related party transactions to protect the interests of shareholders, especially minority shareholders[82]. - Any violation of the commitments regarding competition or related party transactions will result in the forfeiture of cash dividends until compliance is achieved[81][82]. Cash Flow and Financing - The company reported a significant decrease in cash received from investment recoveries, dropping to ¥130,000,000.00 from ¥1,130,000,000.00, a decline of approximately 88.5%[149]. - The net cash flow from investment activities was -¥472,476,380.07, contrasting with a positive cash flow of ¥373,218,227.57 in the previous period[149]. - The company distributed dividends amounting to ¥240,629,910.00 during the period, reflecting a significant cash outflow[154]. - The company received tax refunds amounting to CNY 20.54 million, compared to CNY 14.65 million in the previous year, reflecting an increase of approximately 40.0%[145].

Financial Performance - Operating revenue surged by 111.41% to CNY 526,995,189.99 year-on-year[11] - Net profit attributable to shareholders rose by 110.87% to CNY 150,261,848.36 compared to the same period last year[11] - Basic earnings per share increased by 79.02% to CNY 6.32, while diluted earnings per share rose by 111.86% to CNY 1.25[11] - The company reported a significant increase in net profit after deducting non-recurring gains and losses, which rose by 112.98% to CNY 148,847,781.43[11] - The company reported a total comprehensive income of ¥880,848,644.60 for the first quarter of 2021, up from ¥732,340,170.40 in the same period last year[39] - Total operating revenue for the first quarter was ¥526,995,189.99, a significant increase from ¥249,281,795.49 in the same period last year, representing a growth of approximately 111.4%[42] - Operating profit reached ¥175,532,789.05, compared to ¥83,546,471.51 in the previous year, indicating an increase of about 110.5%[42] - Net profit for the quarter was ¥150,261,848.36, up from ¥71,257,816.02, reflecting a growth of approximately 110.5%[42] Assets and Liabilities - Total assets increased by 8.72% to CNY 3,099,264,430.28 compared to the end of the previous year[11] - Total liabilities amounted to ¥649,591,971.33, an increase from ¥547,745,131.85 year-over-year[32] - The total equity attributable to shareholders rose to ¥2,449,672,458.95 from ¥2,302,888,129.51, marking an increase of about 6.4%[32] - The company's retained earnings increased to ¥869,763,579.46 from ¥719,501,731.10, representing a growth of approximately 20.9%[32] - Total current liabilities decreased to ¥464,445,946.99 from ¥482,960,764.05, indicating a reduction of about 3.2%[38] - Total assets reached ¥2,959,851,240.87, compared to ¥2,829,857,583.73 in the previous year[38] Cash Flow - Net cash flow from operating activities increased by 27.29% to CNY 53,471,526.91[11] - The net cash flow from operating activities for Q1 2021 was ¥53,471,526.91, an increase of 27.5% compared to ¥42,006,106.89 in Q1 2020[55] - Total cash inflow from operating activities in Q1 2021 was ¥457,394,064.65, compared to ¥289,309,773.80 in Q1 2020, reflecting a growth of 58.3%[53] - Cash outflow for purchasing goods and services in Q1 2021 was ¥321,506,834.20, an increase of 77.9% from ¥180,884,900.74 in Q1 2020[53] - The net cash flow from investment activities in Q1 2021 was -¥362,073,335.65, worsening from -¥262,324,552.88 in Q1 2020[55] Shareholder Information - The number of shareholders reached 5,877 by the end of the reporting period[14] - The top shareholder, Wang Qinghua, holds 40.39% of the shares, totaling 48,600,000 shares[14] Research and Development - Research and development expenses rose by 30.78% to ¥8,649,688.12, primarily due to increased salaries for R&D personnel[21] - Research and development expenses amounted to ¥8,649,688.12, up from ¥6,614,071.37, which is an increase of about 30.8% year-over-year[42] Other Financial Metrics - The company received government subsidies, leading to other income of ¥1,186,144.20, a 415.71% increase compared to ¥230,000.00 in the previous year[23] - Financial expenses increased by 438.27%, amounting to -¥10,238,885.84, largely due to higher interest income from time deposits and exchange rate fluctuations[21] - The company reported a tax expense of ¥25,354,708.18, up from ¥13,411,037.00, which is an increase of about 88.9%[42] Audit and Reporting - The report is unaudited, indicating that the figures may be subject to change upon final audit[10] - The company executed the new lease accounting standard starting January 1, 2021, impacting the financial statements[66]

Financial Performance - The company's operating revenue for 2020 was ¥1,397,194,255.18, representing a 16.76% increase compared to ¥1,196,645,496.93 in 2019[28]. - The net profit attributable to shareholders for 2020 was ¥402,294,845.76, which is a 24.22% increase from ¥323,848,157.44 in 2019[28]. - The net profit after deducting non-recurring gains and losses was ¥372,517,595.77, an 18.15% increase from ¥315,285,330.37 in 2019[28]. - The net cash flow from operating activities was ¥231,448,220.41, a decrease of 13.81% compared to ¥268,517,692.15 in 2019[28]. - The total assets at the end of 2020 were ¥2,850,633,261.36, reflecting a 24.67% increase from ¥2,286,545,596.14 at the end of 2019[28]. - The net assets attributable to shareholders at the end of 2020 were ¥2,302,888,129.51, a 16.15% increase from ¥1,982,718,959.14 at the end of 2019[28]. - The basic earnings per share for 2020 were ¥3.35, a decrease of 4.29% from ¥3.50 in 2019[29]. - The weighted average return on equity for 2020 was 19.04%, a decrease of 27.91 percentage points from 46.95% in 2019[29]. Market and Industry Insights - The company specializes in the R&D, production, and sales of electric bicycle motors and related electrical systems, indicating a strong focus on the electric bicycle market[39]. - The European electric bicycle market saw a compound annual growth rate of 32.15% from 2006 to 2018, with sales reaching approximately 3.4 million units in 2019, highlighting robust market growth[44]. - The U.S. electric bicycle market is projected to reach sales of 50-60 thousand units in 2020, up from 25-30 thousand units in 2019, indicating a strong growth trajectory[45]. - In Japan, electric bicycle sales reached approximately 737,700 units in 2020, reflecting a year-on-year growth of 5.65%, showcasing steady demand in the market[47]. Research and Development - The company has a strong R&D capability, being one of the few globally to master core technologies related to torque sensors, which enhances its competitive edge in the market[39]. - The company added 34 new patents in 2020, which will drive future product launches and market entry[60]. - The company’s R&D expenses increased by 7.38% to CNY 47,136,721.63, reflecting a commitment to innovation[66]. - The number of R&D personnel was 176, accounting for 26.71% of the total workforce[82]. Operational Efficiency - The company employs an "order production" model, responding directly to customer orders to optimize production efficiency[42]. - The company is experiencing a rise in inventory levels due to delays in the supply of key components from customers, which is expected to continue into the first half of 2021[49]. - The company is focusing on enhancing its information management processes to support efficient internal management and smart manufacturing[60]. Financial Management and Governance - The company has established a comprehensive corporate governance structure to maintain effective communication with investors and ensure the protection of shareholders' rights[178]. - The company has committed to not misusing company assets for unrelated investments or consumption activities[140]. - The company has engaged in cash asset management, with structured deposits from idle raised funds amounting to RMB 1.12 billion and from idle self-owned funds amounting to RMB 350 million[165]. - The company will ensure that any share reduction by major shareholders after the lock-up period will not exceed 25% of their total holdings from the previous year[5]. Dividend Policy - The company plans to distribute a cash dividend of ¥20 per 10 shares to all shareholders[7]. - The proposed cash dividend distribution is 240.63 million RMB, accounting for 59.81% of the net profit attributable to shareholders for the year[178]. - The company has a cash dividend policy that mandates a minimum distribution of 20% of the distributable profit if conditions are met, with a cumulative distribution of at least 30% over the last three years[114][115]. Risks and Challenges - The company faces risks from changes in international trade environments, which could impact its competitiveness in overseas markets[104]. - The company’s main raw materials, including praseodymium-neodymium, chips, copper, and aluminum, are subject to price fluctuations that could significantly increase costs and negatively impact profits[110]. - The company faces risks related to core technology leakage due to intense industry talent competition, despite implementing protective measures and confidentiality agreements[109]. - The company's export revenue is significantly affected by exchange rate fluctuations, particularly with the USD, which could impact competitiveness and result in foreign exchange losses[111]. Social Responsibility and Environmental Impact - The company actively participated in public welfare by donating medical supplies during the COVID-19 pandemic[181]. - The company has ensured that executive compensation is tied to the performance of measures aimed at restoring returns[139]. - The company has no production wastewater, only domestic sewage, which is treated and discharged in compliance with standards[182]. - The company achieved zero solid waste discharge through proper disposal measures[182]. Stock and Shareholder Commitments - The controlling shareholder Wang Qinghua has committed to not transferring or entrusting the management of shares held directly or indirectly for 36 months post-IPO[5]. - The company will adopt centralized procurement to lower costs and improve supplier efficiency, while also mitigating currency fluctuation risks[98]. - The lock-up period for shares held by directors and senior management is set at 12 months post-IPO[5]. - The controlling shareholder's commitment to avoid competition is legally binding and irrevocable[133].

Financial Performance - Net profit attributable to shareholders rose by 28.06% to CNY 306,263,800.37 year-on-year[17] - Operating income for the first nine months increased by 10.19% to CNY 969,638,889.14 compared to the same period last year[17] - The company reported a net profit excluding non-recurring items of CNY 279,318,094.43, up 19.44% year-on-year[17] - Net profit for Q3 2020 reached RMB 125,646,866.06, representing a 65.9% increase compared to RMB 75,821,809.57 in Q3 2019[55] - The company reported a total profit of RMB 147,493,873.53 for Q3 2020, up 64.5% from RMB 89,488,750.86 in Q3 2019[55] - The company reported a net profit of RMB 306,263,800.37 for the first three quarters of 2020, up 27.9% from RMB 239,151,186.19 in the same period of 2019[55] - The total comprehensive income for Q3 2020 was RMB 124,674,957.42, compared to RMB 75,463,244.41 in Q3 2019, indicating a 65.2% increase[56] - The total comprehensive income for the first three quarters of 2020 was CNY 315,769,215.62, compared to CNY 238,723,662.81 in 2019[63] Assets and Liabilities - Total assets increased by 16.16% to CNY 2,656,051,979.94 compared to the end of the previous year[17] - The company’s total liabilities amounted to CNY 474,005,904.85, compared to CNY 290,876,811.34 in the previous year, reflecting a significant increase of approximately 63.0%[47] - Shareholders' equity reached CNY 2,174,492,488.04, up from CNY 1,978,723,272.42, marking an increase of around 9.9%[47] - Current assets totaled CNY 2,383,766,907.08, up from CNY 2,169,932,670.48, indicating an increase of about 9.8% year-over-year[46] - The company’s total liabilities and equity combined reached CNY 2,648,498,392.89, reflecting a growth from CNY 2,269,600,083.76, an increase of about 16.7%[47] Cash Flow - Net cash flow from operating activities increased by 53.44% to CNY 214,611,096.87 year-to-date[17] - Cash inflow from operating activities amounted to CNY 957,599,787.85, up from CNY 918,288,585.15 in the previous year[65] - The net cash flow from operating activities was CNY 214,611,096.87, an increase from CNY 139,869,978.56 in 2019[68] - The company reported a significant increase in cash inflow from investment activities, totaling CNY 1,799,221,684.67, compared to CNY 804,826,236.58 in the same period last year[68] - The net cash flow from investment activities was CNY 468,124,711.54, a turnaround from a negative cash flow of CNY -187,486,861.23 in 2019[68] Shareholder Information - The number of shareholders at the end of the reporting period was 7,924[22] - The largest shareholder, Wang Qinghua, holds 40.50% of the shares[22] - The company paid CNY 120,000,000.00 in dividends, up from CNY 40,000,000.00 in the previous year, indicating a strong commitment to returning value to shareholders[68] - The company paid ¥120,000,000.00 in dividends, compared to ¥40,000,000.00 in the same period last year, indicating a 200% increase in dividend payments[74] Inventory and Receivables - Inventory increased by 51.37% to ¥249,862,274.95, driven by higher order volumes[27] - Accounts receivable financing rose by 70.49% to ¥117,708,319.40, reflecting increased sales volume[27] - The company’s accounts receivable increased to CNY 215,720,052.26 from CNY 214,130,890.87, showing a slight increase of approximately 0.7%[46] - Inventory levels rose to CNY 224,047,735.62, compared to CNY 153,205,013.11, representing an increase of about 46.3%[46] Other Financial Metrics - The weighted average return on equity decreased by 29.05 percentage points to 14.80%[17] - The basic earnings per share decreased by 4.14% to CNY 2.55[17] - Research and development expenses for Q3 2020 amounted to RMB 12,479,250.88, a 20.2% increase from RMB 10,373,268.25 in Q3 2019[58] - The company experienced a credit impairment loss of CNY -3,977,168.25, which was a decrease from CNY -3,274,934.07 in the previous year[61]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥574,293,660.98, a decrease of 4.58% compared to ¥601,847,253.89 in the same period last year[19]. - Net profit attributable to shareholders was ¥180,616,934.31, representing an increase of 10.58% from ¥163,329,376.62 year-on-year[19]. - The net cash flow from operating activities increased by 92.29% to ¥160,249,551.64, compared to ¥83,335,719.49 in the previous year[19]. - Basic earnings per share for the first half of 2020 were ¥1.51, down 16.57% from ¥1.81 in the same period last year[20]. - The weighted average return on net assets decreased by 23.25 percentage points to 8.80% from 32.05% year-on-year[20]. - The total comprehensive income for the first half of 2020 was CNY 180,428,185.74, compared to CNY 163,439,952.39 in the previous year, indicating an increase of 10.4%[126]. - The company reported a net profit of ¥492,437,308.57, up from ¥431,820,374.26, showing an increase of about 14.01%[114]. Assets and Liabilities - Total assets at the end of the reporting period were ¥2,459,379,633.34, up 7.56% from ¥2,286,545,596.14 at the end of the previous year[19]. - Total liabilities amounted to ¥416,232,488.46, up from ¥303,826,637.00, indicating a growth of around 37.06%[114]. - The company's cash and cash equivalents at the end of the period amounted to 1.26 billion RMB, representing 51.16% of total assets, a 257.12% increase compared to the previous year[43]. - The company's total equity increased to ¥120,000,000.00, reflecting a 33.33% growth from ¥90,000,000.00 as a result of the public issuance of shares[50]. Market and Product Development - The company specializes in the research, production, and sales of electric bicycle motors and supporting electrical systems, with a strong focus on R&D capabilities and advanced technology levels[28][35]. - The company has developed over 80 models of motors, including mid-mounted and hub motors, catering to various types of electric bicycles and ensuring a diverse product offering[34]. - The company is focusing on innovation, with ongoing development of electric bike motors tailored for various market needs[42]. - The company employs a "make-to-order" production model, aligning production closely with customer orders to enhance efficiency and responsiveness[29]. Risks and Challenges - The company faces risks from global trade policies and trade friction, which could adversely affect its business operations[59]. - The company is experiencing intensified market competition, particularly against leading brands like Bosch and Shimano, which may impact its market share and profitability[60]. - The company has a high proportion of export revenue, making it vulnerable to exchange rate fluctuations that could affect its financial performance[62]. Shareholder Commitments and Governance - The controlling shareholder Wang Qinghua committed to lock up shares for 36 months post-IPO, with an automatic extension of 6 months if the stock price falls below the issue price for 20 consecutive trading days within the first 6 months[69]. - The company and its major shareholders have committed to stabilize stock prices for 3 years post-IPO[71]. - The company has established a commitment to ensure that the prospectus does not contain false records or misleading statements, reinforcing its accountability[71]. - The company has committed to initiate stock price stabilization measures if the stock price falls below net asset value within three years post-IPO, with specific accountability from shareholders and management[78]. Cash Flow and Investment Activities - The cash flow from operating activities generated a net amount of 160,249,551.64 CNY, compared to 83,335,719.49 CNY in the previous period, showing a significant increase of about 92.5%[137]. - The total cash inflow from investment activities reached ¥1,176,943,430.77, significantly higher than ¥577,724,800.60 in the previous year, marking an increase of 104.3%[143]. - The net cash flow from investment activities was ¥373,218,227.57, a turnaround from a negative cash flow of -¥10,187,891.10 in the same period last year[143]. Research and Development - Research and development expenses for the first half of 2020 were CNY 13,605,006.08, slightly down from CNY 14,961,667.29 in the previous year[124]. - The company is investing $200 million in research and development for new technologies aimed at enhancing user experience[196]. Subsidiaries and Market Expansion - The company established two wholly-owned subsidiaries: Bafang Tianjin with a registered capital of ¥10 million and Bafang Japan with a registered capital of ¥1.5 million JPY during the reporting period[54]. - Market expansion efforts are underway, with plans to enter three new international markets by the end of the fiscal year[196].