Financial Performance - Operating revenue for the first quarter reached CNY 78,864,814.80, a growth of 29.62% year-on-year[6] - Net profit attributable to shareholders increased by 94.10% to CNY 21,974,806.87 compared to the same period last year[7] - Basic earnings per share doubled to CNY 0.12, compared to CNY 0.06 in the same period last year[6] - The company reported a net profit of CNY 25,956,443.97 for Q1 2019, compared to CNY 13,324,265.24 in Q1 2018, indicating a growth in profitability[22] - The net profit for Q1 2019 was CNY 21,974,806.87, a 94% increase compared to CNY 11,321,380.77 in Q1 2018[23] Cash Flow and Liquidity - Cash flow from operating activities showed a negative value of CNY -31,638,776.15, a decline of 88.15% year-on-year[6] - The net cash flow from operating activities decreased by 88.15%, amounting to CNY -31,638,776.15, primarily due to a reduction in cash received from sales of goods and services[22] - The company reported a significant cash outflow from investing activities of -CNY 95,421,065.40, compared to -CNY 10,768,052.02 in the previous year[26] - The total cash inflow from financing activities was CNY 291,780.82, while cash outflow was CNY 10,020,300.00, resulting in a net cash flow of -CNY 9,728,519.18[26] - The company received CNY 50,000,000.00 from investment recovery during the quarter[26] Assets and Liabilities - Total assets increased by 1.29% to CNY 930,008,768.40 compared to the end of the previous year[6] - The total number of shareholders reached 15,777 by the end of the reporting period[11] - Cash and cash equivalents decreased significantly by 66.86% to CNY 66,838,391.87 due to increased operational payments and investments in financial products[13] - Other current assets increased by 40.12% to CNY 280,246,094.05, primarily due to investments in financial products[13] - The total liabilities decreased from CNY 75,572,677.94 to CNY 65,432,876.60, reflecting a reduction in short-term borrowings[19] Income and Expenses - Other income surged by 6341.74% to CNY 6,708,610.33, primarily due to an increase in government subsidies received[22] - Financial expenses decreased by 165.85% to CNY -520,930.02, attributed to a reduction in bank borrowings and an increase in interest income[22] - The asset impairment loss increased significantly by 841.83% to CNY 2,614,672.85, mainly due to an increase in accounts receivable[22] Accounting and Reporting Standards - The company implemented new financial instrument standards effective January 1, 2019, adjusting "available-for-sale financial assets" to "other non-current financial assets" valued at $13 million[30] - The company did not apply retrospective adjustments for the new financial instrument and lease standards[31] - The company has not issued an audit report for this period[31] - The company’s financial reporting adheres to the revised accounting standards issued by the Ministry of Finance in 2017[30]

Financial Performance - The company's operating revenue for 2018 was approximately ¥339.93 million, representing a year-over-year increase of 13.43% compared to ¥299.68 million in 2017[21]. - The net profit attributable to shareholders for 2018 was approximately ¥82.37 million, a 5.72% increase from ¥77.92 million in 2017[21]. - The cash flow from operating activities significantly increased to approximately ¥118.57 million, up 263.94% from ¥32.58 million in 2017[21]. - The basic earnings per share for 2018 decreased to ¥0.47, down 12.96% from ¥0.54 in 2017[22]. - The weighted average return on equity for 2018 was 10.15%, a decrease of 6.28 percentage points from 16.43% in 2017[22]. - The total assets at the end of 2018 were approximately ¥918.17 million, reflecting a 5.83% increase from ¥867.61 million at the end of 2017[21]. - The company's net assets attributable to shareholders increased to approximately ¥842.60 million, a 7.28% rise from ¥785.43 million in 2017[21]. - The company's total operating revenue of ¥339,931,317.34 represented a year-on-year growth of 13.43%[82]. - The net profit attributable to shareholders was ¥82,374,662.95, reflecting a growth of 5.72% year-on-year[82]. - The gross profit margin for the rail fastening system segment was 44.68%, a decrease of 13.12 percentage points year-on-year[85]. Dividend Policy - The company plans to distribute a cash dividend of 2.00 RMB per 10 shares, totaling 35,280,000.00 RMB (including tax) based on a total share capital of 176,400,000 shares as of December 31, 2018[5]. - The company has a profit distribution policy that mandates a minimum cash dividend of 20% of distributable profits each year[130]. - In 2018, the company distributed a cash dividend of 2.00 RMB per 10 shares, totaling 35,280,000.00 RMB, which represents 42.83% of the net profit attributable to ordinary shareholders[133]. - The company has maintained a consistent cash dividend policy over the past three years, with dividends paid in 2016, 2017, and 2018[133]. - The total cash dividends distributed over the last three years amounted to 85,480,000.00 RMB[133]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[4]. - The company is committed to ensuring the accuracy and completeness of the annual report content[8]. - The company has not violated decision-making procedures for external guarantees[7]. - There are no non-operating fund occupations by controlling shareholders or related parties[7]. - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute substantive commitments to investors[6]. Research and Development - The company has a strong R&D capability with 52 R&D personnel and has undertaken 3 national-level research projects and 9 provincial-level projects, holding a total of 26 authorized patents[72]. - The company developed 10 new products during the reporting period, with 7 completed, including various types of rubber pads and polyurethane elastic pads for rail fastening systems[80]. - Ongoing R&D projects include the development of low-resistance pads for existing rail upgrades and components suitable for extreme temperatures ranging from -50℃ to 70℃[56][58]. - The company collaborates closely with research institutions like the China Academy of Railway Sciences to enhance its R&D capabilities and has been involved in various significant research projects since 2005[34]. Market and Industry Dynamics - The rail fastening industry is regulated by the Ministry of Transport and the China Railway Corporation, which oversees safety and operational standards[42]. - The rail fastening industry is characterized by strong technical barriers, requiring companies to invest in advanced R&D and high-end equipment to meet increasing quality standards[48]. - The industry is experiencing a rapid increase in investment, maintaining an annual investment intensity of over 700 billion yuan, driven by the expansion of railway and urban rail transit construction[51]. - The competitive landscape includes seven major rail fastening suppliers, with the company maintaining partnerships with six of them, enhancing its market position[53]. - The company is a leading player in the domestic rail fastening market, having obtained CRCC certification for various non-metal components, including nylon and rubber parts[54]. Operational Efficiency - The company has established a strict procurement management system to control quality and costs, ensuring at least three alternative suppliers for each type of procurement item[35]. - The production model is primarily based on "order-based production," with a focus on maintaining quality and delivery timelines through strict management of production processes[37]. - The company maintains a safety stock of raw materials to prevent shortages and ensure timely delivery to customers[36]. - The company has a comprehensive supplier evaluation system that assesses suppliers based on quality, delivery timeliness, and pricing, ensuring reliable material supply[35]. Risks and Challenges - The company faces risks related to fluctuations in raw material prices, which could lead to increased production costs and decreased profit margins[124]. - The company operates in a market with high entry barriers, and any reduction in these barriers could lead to increased competition and lower profit margins[125]. - The company emphasizes quality control in its high-speed rail products, as any quality issues could have significant negative impacts on operations[126]. - The company has established a robust management system, but the rapid growth and increased scale may pose management risks if not addressed[127]. Shareholder Structure - The top shareholder, Tang Youqian, holds 60,402,062 shares, representing 34.24% of total shares[177]. - The company has no controlling shareholder, with Tang Youqian serving as the chairman[179]. - The top ten shareholders are primarily family members of Tang Youqian, indicating a concentrated ownership structure[178]. - The total number of shares held by the board members increased from 78,902,135 to 110,541,308, representing a growth of 31,639,173 shares[189]. Environmental Management - The company has established an ISO environmental management system and has passed the ISO 14001-2015 certification, ensuring compliance with environmental regulations[161]. - The company reported stable operation of environmental protection equipment with no pollution incidents during the reporting period[161]. - The company’s environmental management practices are in line with national laws and regulations, focusing on the management of VOCs emissions[161].

Financial Performance - Operating revenue for the first nine months was ¥203,012,066.83, representing a decrease of 0.26% year-on-year[6] - Net profit attributable to shareholders for the first nine months was ¥37,063,626.82, down 32.83% compared to the same period last year[6] - Basic earnings per share decreased by 18.75% to ¥0.26 from ¥0.32 in the previous year[7] - The weighted average return on net assets fell to 5.82%, a decrease of 7.88 percentage points compared to the previous year[7] - Operating revenue for Q3 2018 was ¥68,991,885.84, a decrease of 6.4% compared to ¥74,046,524.71 in Q3 2017[21] - Net profit for the period was ¥16,611,593.38, down 19.9% from ¥20,662,129.57 in the same period last year[22] - The total profit for the period was ¥19,219,011.42, down 20.4% from ¥24,308,387.73 in Q3 2017[21] - Basic earnings per share for Q3 2018 were ¥0.09, down from ¥0.20 in Q3 2017[22] Cash Flow - The net cash flow from operating activities was negative at -¥20,668,375.83, a significant decline of 154.49% year-on-year[6] - Net cash flow from operating activities decreased by 154.49% to -¥20,668,375.83, attributed to reduced sales collections and increased cash payments for goods[13] - The company reported a net cash outflow from operating activities of ¥20,668,375.83, compared to a net inflow of ¥37,931,496.61 in the previous year[24] - Investment activities generated a net cash inflow of ¥43,745,994.60, contrasting with a net cash outflow of ¥250,308,052.68 in the same period last year[24] - Cash flow from investing activities improved by 117.48% to ¥43,745,994.60, mainly due to the recovery of investments in bank financial products[13] Assets and Liabilities - Total assets at the end of the reporting period reached ¥868,171,756.68, a slight increase of 0.06% compared to the end of the previous year[6] - The company's total liabilities decreased from ¥82,188,023.62 to ¥61,341,355.05, reflecting a reduction in short-term borrowings[19] - Accounts receivable decreased by 77.65% to ¥6,595,765.74 due to reduced bill payments and collections[12] - Inventory increased by 63.39% to ¥66,925,530.20 as a result of increased stockpiling[12] - The company's registered capital increased by 40% to ¥176,400,000.00 following a capital reserve transfer[14] - The company's total assets at the end of the reporting period were not disclosed, but cash and cash equivalents increased to ¥93,130,534.20 from ¥78,475,196.93 at the beginning of the period[24] Shareholder Information - The total number of shareholders at the end of the reporting period was 15,973[10] - The largest shareholder, Tang Youqian, holds 34.24% of the shares, totaling 60,402,062 shares[10] Non-Operating Income and Expenses - Non-operating income for the first nine months amounted to ¥9,540,352.83, primarily from financial product interest income[10] - Investment income surged by 386.94% to ¥10,230,059.18, primarily due to increased interest income from matured financial products[12] - The company incurred financial expenses of ¥102,990.38, a decrease of 53% from ¥219,331.56 in the same period last year[21] Future Plans - The company has not disclosed any new product developments or market expansion strategies in this report[10] - The company plans to focus on expanding its market presence and enhancing product development in the upcoming quarters[21]

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 134,020,180.99, representing a 3.50% increase compared to CNY 129,487,981.67 in the same period last year[22]. - The net profit attributable to shareholders of the listed company decreased by 17.99% to CNY 29,992,386.27 from CNY 36,570,270.07 in the previous year[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 31.49% to CNY 24,438,586.58 compared to CNY 35,672,077.12 in the same period last year[22]. - The net cash flow from operating activities was negative at CNY -15,313,516.28, a decline of 132.15% from CNY 47,637,823.07 in the previous year[22]. - The total assets at the end of the reporting period were CNY 856,081,749.36, a decrease of 1.33% from CNY 867,614,445.60 at the end of the previous year[22]. - The net assets attributable to shareholders of the listed company increased by 0.61% to CNY 790,218,808.25 from CNY 785,426,421.98 at the end of the previous year[22]. - Basic earnings per share decreased by 39.29% to CNY 0.17 compared to the same period last year[23]. - Diluted earnings per share also decreased by 39.29% to CNY 0.17 compared to the same period last year[23]. - The weighted average return on equity fell by 6.22 percentage points to 3.75%[23]. - The adjusted basic earnings per share, excluding non-recurring gains and losses, decreased by 48.15% to CNY 0.14[23]. Business Operations - The company’s main business includes the R&D, production, and sales of non-metal components for rail fastening systems and electronic component accessories[30]. - The company has established a strict procurement management system to control quality and costs, ensuring a minimum of three alternative suppliers for each procurement item[33]. - The company collaborates with research institutions for joint R&D projects, enhancing its technological capabilities and innovation[32]. - The company’s product offerings include various types of rail fastening components and electronic capacitor accessories, crucial for ensuring the reliability and lifespan of these products[30]. - The production model is primarily order-based with some inventory, ensuring quality and delivery through strict management of production processes[35]. - The company participates in bidding for component supply contracts with railway project companies, ensuring compliance with CRCC certification[36]. - The company emphasizes rapid response to customer needs through direct sales, targeting mid-to-high-end clients in the electronic components market[36]. Industry Overview - The industry is classified under "C371 Railway Transportation Equipment Manufacturing" according to national economic industry classification standards[38]. - The government department overseeing the rail fastening industry is the Ministry of Transport, with the National Railway Administration responsible for drafting regulations and standards[39]. - The industry is experiencing a steady improvement in technology levels, with a focus on independent research and development to enhance competitive advantages[42]. - New materials and processes are becoming core competitive factors, with a focus on optimizing formulations and manufacturing techniques[42]. - The railway fastening industry has high market entry barriers due to strict product certification requirements from the China Railway Certification Center (CRCC) for key components[45]. - The industry is characterized by strong technical barriers, requiring customized production and adherence to high standards for materials, processes, and product quality[46]. - The industry has a cyclical nature, heavily influenced by government budget allocations for railway and urban rail transit investments, maintaining an investment intensity of over 700 billion annually[48]. - There are seven major players in the domestic high-speed rail fastening market, indicating a concentrated competitive landscape[49]. - The company has established long-term cooperative relationships with the seven major fastening suppliers, enhancing its market position[50]. Research and Development - The company has a strong R&D capability with 52 R&D personnel and has undertaken 3 national-level and 9 provincial-level research projects, resulting in 25 authorized patents[59]. - The company launched 5 new R&D projects and continued 5 existing projects, resulting in a total of 25 patents, including 10 invention patents[68]. - The company is adapting to increasing technical requirements in the rail fastening sector, driven by innovations in railway and urban rail transit technologies[43]. Quality Control and Management - The company maintains a 100% inspection rate for raw materials and finished products, ensuring high product quality and safety[66]. - The company has implemented a comprehensive quality management system, which has been successfully audited for both quality and environmental management[66]. - The company emphasizes quality control for its rail fastening products, which are critical for high-speed rail applications, and has not experienced major quality incidents during the reporting period[84]. - The company has established a robust management system and organizational structure, but faces increased management challenges as its asset and sales scales grow significantly post-IPO[85]. Financial Position - The total number of shares increased from 126 million to 176.4 million following the capital reserve transfer to share capital[23]. - The company's total liabilities decreased from CNY 82,188,023.62 to CNY 65,862,941.11, reflecting a reduction of approximately 19.8%[130]. - The cash and cash equivalents at the end of the reporting period were CNY 81,492,246.83, down from CNY 101,675,196.93, a decline of about 19.8%[129]. - The company's inventory increased significantly from CNY 40,961,657.93 to CNY 62,771,522.96, representing a growth of approximately 53.3%[129]. - The company reported a total equity of CNY 790,218,808.25 at the end of the period, compared to CNY 785,426,421.98 at the end of the previous period[140]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 18,218[110]. - The top shareholder, Tang Youqian, holds 60,402,062 shares, representing 34.24% of the total shares[112]. - The top ten shareholders collectively hold a significant portion of the company's shares, with the largest shareholder holding over 34%[112]. - All major shareholders are domestic individuals with no shares pledged or frozen[112]. Compliance and Governance - The company continues to employ Tianjian Accounting Firm for the 2018 annual audit, with the audit fee determined based on market price and service quality[96]. - There are no significant litigation or arbitration matters during the reporting period[96]. - The company and its controlling shareholders have not failed to fulfill court judgments or have large debts that are overdue and unpaid during the reporting period[96]. - The company has committed to not engaging in any competitive business activities that may harm its interests or those of its shareholders[94].

Financial Performance - Operating revenue for the period was CNY 60,841,728.41, representing an increase of 33.83% year-on-year[7] - Net profit attributable to shareholders was CNY 11,321,380.77, up 2.48% from the previous year[7] - The company's operating revenue for Q1 2018 was CNY 60,841,728.41, an increase of 33.9% compared to CNY 45,462,913.22 in the same period last year[18] - The net profit for Q1 2018 was CNY 11,321,380.77, slightly up from CNY 11,047,554.28 in the previous year, indicating a growth of 2.47%[18] Cash Flow - Net cash flow from operating activities was negative CNY 16,815,409.77, a decline of 144.54% compared to the same period last year[7] - The company's cash flow from operating activities showed a significant decline, with a net cash outflow of CNY -16,815,409.77 compared to a positive inflow of CNY 37,756,071.06 in the same period last year, a decrease of 144.54%[18] - Operating cash inflow totaled $41,954,456.42, down 53.3% from $89,798,083.96 in the previous period[22] - Net cash flow from operating activities was -$16,815,409.77, compared to $37,756,071.06 in the prior period[22] - Cash outflow from operating activities increased to $58,769,866.19, up 12.5% from $52,042,012.90[22] Assets and Liabilities - Total assets at the end of the reporting period were CNY 857,283,720.42, a decrease of 1.19% compared to the end of the previous year[7] - Total assets as of March 31, 2018, were CNY 857,283,720.42, down from CNY 867,614,445.60 at the beginning of the year, reflecting a decrease of 1.52%[16] - The company's total liabilities decreased to CNY 60,535,917.67 from CNY 82,188,023.62, a reduction of 26.3%[16] Inventory and Cash Management - Inventory increased by 43.75% to CNY 58,881,735.39 due to increased stocking at the end of the period[12] - Cash and cash equivalents decreased by 38.53% to CNY 62,497,013.19, primarily due to increased cash payments for production and investment projects[12] - The cash and cash equivalents decreased to CNY 62,497,013.19 from CNY 101,675,196.93, a decline of 38.5%[15] - The inventory increased to CNY 58,881,735.39 from CNY 40,961,657.93, marking a rise of 43.7%[15] Shareholder Information - The total number of shareholders at the end of the reporting period was 16,368[11] Earnings Per Share - Basic and diluted earnings per share were both CNY 0.09, down 25.00% from the previous year[7] - The company reported a basic earnings per share of CNY 0.09, down from CNY 0.12 in the previous year, a decrease of 25%[19] Financial Expenses - The financial expenses for the quarter were CNY -195,945.37, a significant improvement compared to CNY 842,073.77 in the same period last year, reflecting a change of -123.27%[18] Investment Activities - Investment cash outflow was $10,768,052.02, a decrease of 31.9% from $15,808,263.45 in the previous period[23] - Net cash flow from investing activities was -$10,768,052.02, compared to -$15,808,263.45 in the prior period[23] Financing Activities - Cash inflow from financing activities was $127,191.54, significantly lower than $23,000,000.00 in the previous period[23] - Net cash flow from financing activities improved to $127,191.54 from -$25,812,068.92[23] Exchange Rate Impact - The impact of exchange rate changes on cash and cash equivalents was -$21,913.49, compared to a positive impact of $2,669.72 in the previous period[23]

Financial Performance - The company's operating revenue for 2017 was CNY 299,683,043.18, representing a 14.23% increase compared to CNY 262,352,250.33 in 2016[20]. - The net profit attributable to shareholders for 2017 was CNY 77,921,331.33, which is a 5.12% increase from CNY 74,123,155.27 in 2016[20]. - Basic earnings per share decreased by 2.56% to CNY 0.76 in 2017 compared to CNY 0.78 in 2016[21]. - The weighted average return on equity dropped to 16.43% in 2017, down 6.36 percentage points from 22.79% in 2016[21]. - The gross profit margin for the rail fastening system segment was 57.80%, with a decrease of 5.26 percentage points year-on-year[86]. - The company reported a significant increase in revenue, achieving a total of $1.5 billion for the fiscal year, representing a 20% year-over-year growth[134]. - The company reported a net profit margin of 12%, which is an improvement from 10% in the previous year[179]. Cash Flow and Liquidity - The net cash flow from operating activities decreased by 57.44% to CNY 32,580,556.21 in 2017, down from CNY 76,558,750.66 in 2016[20]. - The company reported a significant increase in financing cash flow, which rose by 550.25% to CNY 267,133,596.76 due to successful stock fundraising[101]. - Operating cash flow decreased by 57.44% compared to the previous year, primarily due to reduced sales revenue collection[100]. - The company has a high accounts receivable of 231.05 million yuan, which constitutes over 30% of current assets, posing a risk to cash flow if collection delays occur[119]. Assets and Capital Structure - The total assets at the end of 2017 were CNY 867,614,445.60, a 79.91% increase from CNY 482,242,652.39 at the end of 2016[20]. - The net assets attributable to shareholders increased by 117.52% to CNY 785,426,421.98 at the end of 2017, compared to CNY 361,087,071.85 at the end of 2016[20]. - The total share capital at the end of 2017 was 126,000,000 shares, an increase of 33.33% from 94,500,000 shares at the end of 2016[20]. - The company's debt-to-asset ratio improved to 9.47%, a decrease of 15.65% compared to the previous year[161]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 2.00 per 10 shares, totaling CNY 25,200,000.00, which accounts for 32.34% of the net profit attributable to shareholders[5]. - The company has established a cash dividend policy to distribute no less than 20% of the distributable profit to shareholders annually after reserving the statutory surplus[125]. Research and Development - The company holds 24 authorized patents, including 9 invention patents and 15 utility model patents, indicating strong R&D capabilities[74]. - Total R&D expenses amounted to ¥11,438,223.99, representing 3.82% of total revenue[98]. - The company has implemented a comprehensive talent training and incentive mechanism, ensuring a skilled workforce to maintain its competitive edge[77]. - The company plans to continue strengthening R&D capabilities and collaborate with research institutions to enhance technological innovation[113]. Market and Industry Outlook - The company plans to expand its product offerings in high-speed rail fastening systems and automotive electronic components[28]. - The company plans to enhance its marketing network and expand new marketing channels to maintain its leading position in the rail fastening and electronic components industries[113]. - The company aims to optimize its talent structure by recruiting professionals in technical research, marketing, and management to support business development[115]. Risks and Challenges - The company faces a significant risk of revenue fluctuations due to the dependency on major client Zhongyuan Lida, which accounts for over 60% of its revenue[117]. - The company acknowledges the risk of rising raw material prices impacting production costs and profit margins[118]. - The company faces management risks due to rapid expansion, requiring enhanced management capabilities to mitigate potential risks[121]. Governance and Compliance - The company has a well-structured corporate governance system, with independent operation of the shareholders' meeting, board of directors, and supervisory board[188]. - The financial statements for the year ended December 31, 2017, were audited and found to fairly reflect the company's financial position and operating results[197]. - The company has no significant differences in governance compared to the requirements set by the China Securities Regulatory Commission[189]. Shareholder Structure - The top shareholder, Tang Youqian, holds 34.24% of the shares, totaling 43,144,330 shares[164]. - The controlling shareholder, Tang Youqian, holds 34.24% of the company's shares, while the Tang family collectively controls 71.43% of the company[172]. - The company does not have any strategic investors or general legal entities among its top ten shareholders[168].

[Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, which remains unaudited - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from misrepresentation or material omissions[6](index=6&type=chunk) - All directors attended the board meeting to review this quarterly report[6](index=6&type=chunk) - This company's Q3 2017 report is unaudited[6](index=6&type=chunk) [Company Profile](index=3&type=section&id=Item%20II.%20Company%20Profile) [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) In the first three quarters of 2017, the company achieved **RMB 204 million** in operating revenue, a **14.10% increase**, and **RMB 56.73 million** in net profit attributable to shareholders, up **12.40%**, with total assets reaching **RMB 845 million** due to equity financing Key Financial Data for Q1-Q3 2017 | Indicator | Year-Beginning to Period-End (Jan-Sep) | Prior Year Same Period (Jan-Sep) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | RMB 203,534,506.38 | RMB 178,378,510.15 | 14.10% | | Net Profit Attributable to Shareholders | RMB 56,728,786.21 | RMB 50,468,584.28 | 12.40% | | Basic Earnings Per Share (RMB/share) | 0.58 | 0.53 | 9.43% | | Net Cash Flow from Operating Activities | RMB 37,931,496.61 | RMB 29,984,080.11 | 26.51% | | **Indicator** | **Current Period-End** | **Prior Year-End** | **Change (%)** | | Total Assets | RMB 844,693,463.30 | RMB 482,242,652.39 | 75.16% | | Net Assets Attributable to Shareholders | RMB 764,233,876.86 | RMB 361,087,071.85 | 111.65% | Non-Recurring Gains and Losses for Q1-Q3 2017 | Item | Year-Beginning to Period-End Amount (RMB) | Explanation | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | -25,648.88 | Loss on disposal of fixed assets | | Government Grants Recognized in Current Profit/Loss | 1,775,692.75 | Government grant income | | Other Non-Operating Income/Expenses | -75,382.51 | - | | Interest Income from Wealth Management Products | 150,868.01 | - | | Income Tax Impact | -273,829.41 | - | | **Total** | **1,551,699.96** | - | [Shareholder Information](index=4&type=section&id=2.2%20Total%20Shareholders%2C%20Top%20Ten%20Shareholders%2C%20and%20Top%20Ten%20Circulating%20Shareholders%20at%20Period-End) As of the reporting period end, the company had **24,404** shareholders, with controlling shareholder Tang Youqian and family members dominating the top ten, holding a significant combined stake with no pledged or frozen shares - As of the reporting period end, the company had **24,404** common shareholders[7](index=7&type=chunk) - Controlling shareholder Tang Youqian and family members (Tang Qiujuan, Tang Xiao, Tang Wenming, Tang Jiao) act in concert, collectively holding a substantial stake in the company[7](index=7&type=chunk)[8](index=8&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Number of Shares Held (shares) | Percentage (%) | Shareholder Type | | :--- | :--- | :--- | :--- | | Tang Youqian | 43,144,330 | 34.24 | Domestic Natural Person | | Tang Wenming | 10,997,574 | 8.73 | Domestic Natural Person | | Tang Jiao | 10,997,574 | 8.73 | Domestic Natural Person | | Tang Xiao | 10,997,574 | 8.73 | Domestic Natural Person | | Tang Qiujuan | 8,459,673 | 6.71 | Domestic Natural Person | | Tiantai Xianghe Investment Center (Limited Partnership) | 5,403,275 | 4.29 | Domestic Non-State-Owned Legal Person | | Zhejiang Tiantang Silicon Valley Shishun Equity Investment Partnership | 3,240,000 | 2.57 | Domestic Non-State-Owned Legal Person | | Zhejiang Fangxiang Investment Co., Ltd. | 1,260,000 | 1.00 | Domestic Non-State-Owned Legal Person | | Zhou Guoqing | 347,454 | 0.28 | Domestic Natural Person | | Zhang Lingzheng | 279,900 | 0.22 | Domestic Natural Person | [Preferred Shareholder Information](index=5&type=section&id=2.3%20Total%20Preferred%20Shareholders%2C%20Top%20Ten%20Preferred%20Shareholders%2C%20and%20Top%20Ten%20Unrestricted%20Preferred%20Shareholders%20at%20Period-End) As of the reporting period end, the company had no preferred shareholders - The company has no preferred share-related information[8](index=8&type=chunk) [Significant Events](index=5&type=section&id=Item%20III.%20Significant%20Events) [Significant Changes in Key Financial Statement Items and Indicators and Their Reasons](index=5&type=section&id=3.1%20Significant%20Changes%20in%20the%20Company's%20Key%20Financial%20Statement%20Items%20and%20Financial%20Indicators%20and%20Their%20Reasons) During the reporting period, several financial indicators significantly changed due to IPO and business development, with cash and construction in progress increasing from raised funds, short-term borrowings decreasing, and payables rising due to increased procurement, while investment activities showed net outflow and financing activities net inflow Major Balance Sheet Item Changes | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Cash and Cash Equivalents | +93.52% | Proceeds from share issuance received | | Construction in Progress | +221.64% | Implementation of R&D center construction project | | Short-term Borrowings | -93.46% | Repayment of bank loans | | Notes Payable | +117.86% | Increased issuance of bank acceptance bills for payments | | Accounts Payable | +162.61% | Increased procurement | | Capital Reserve | +211.15% | Premium issuance of shares | Major Cash Flow Statement Item Changes | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Net Cash Flow from Investing Activities | 624.49% (Increased Outflow) | Increased purchase of wealth management products in current period | | Net Cash Flow from Financing Activities | 560.88% (Increased Inflow) | Proceeds from initial public offering | [Progress of Significant Events](index=7&type=section&id=3.2%20Analysis%20and%20Explanation%20of%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Events) The company actively managed funds during the period, approving the use of up to **RMB 248 million** in idle raised funds and **RMB 49 million** in自有资金 for wealth management products, and **RMB 34.2 million** in idle raised funds for working capital, while completing capital and corporate charter changes - The company used idle raised funds totaling **RMB 240 million** to purchase wealth management products[11](index=11&type=chunk) - The Board of Directors approved using up to **RMB 34.2 million** of temporarily idle raised funds to supplement working capital[11](index=11&type=chunk) - The Board of Directors approved using **RMB 84.86 million** of raised funds to replace self-raised funds previously invested in IPO projects[11](index=11&type=chunk) - The company completed the modification of its registered capital, articles of association, and industrial and commercial registration changes[12](index=12&type=chunk) [Overdue Unfulfilled Commitments](index=7&type=section&id=3.3%20Overdue%20Unfulfilled%20Commitments%20During%20the%20Reporting%20Period) During the reporting period, the company had no overdue unfulfilled commitments - The company has no overdue unfulfilled commitments[13](index=13&type=chunk) [Performance Forecast](index=7&type=section&id=3.4%20Warning%20and%20Explanation%20of%20Potential%20Loss%20or%20Significant%20Change%20in%20Cumulative%20Net%20Profit%20from%20Year-Beginning%20to%20End%20of%20Next%20Reporting%20Period%20Compared%20to%20Prior%20Year) The company has not issued any warnings regarding potential losses or significant changes in cumulative net profit from the beginning of the year to the end of the next reporting period - The company has not forecasted any significant changes or losses in performance from the beginning of the year to the end of the next reporting period[13](index=13&type=chunk) [Appendix](index=8&type=section&id=Item%20IV.%20Appendix) [Financial Statements](index=8&type=section&id=4.1%20Financial%20Statements) This appendix includes the company's unaudited balance sheet as of September 30, 2017, and the income statement and cash flow statement for January-September 2017 [Balance Sheet](index=8&type=section&id=Balance%20Sheet) As of September 30, 2017, total assets reached **RMB 845 million**, up **75.16%** from year-end due to IPO proceeds, while total liabilities decreased **33.6%** to **RMB 80.46 million** from short-term debt repayment, and equity attributable to shareholders increased **111.65%** to **RMB 764 million** Major Balance Sheet Items (Unit: RMB) | Item | Period-End Balance | Year-Beginning Balance | | :--- | :--- | :--- | | **Total Assets** | **844,693,463.30** | **482,242,652.39** | | Cash and Cash Equivalents | 136,932,630.07 | 70,757,272.51 | | Other Current Assets | 240,000,000.00 | 0.00 | | **Total Liabilities** | **80,459,586.44** | **121,155,580.54** | | Short-term Borrowings | 5,000,000.00 | 76,500,000.00 | | **Total Owners' Equity** | **764,233,876.86** | **361,087,071.85** | | Share Capital | 126,000,000.00 | 94,500,000.00 | | Capital Reserve | 500,899,291.01 | 160,981,272.21 | [Income Statement](index=10&type=section&id=Income%20Statement) For the first three quarters of 2017 (January-September), the company achieved **RMB 204 million** in operating revenue, a **14.10%** increase, with operating profit at **RMB 65.07 million** (up **13.57%**) and net profit attributable to shareholders at **RMB 56.73 million** (up **12.40%**), resulting in basic EPS of **RMB 0.58** Major Income Statement Items (Jan-Sep 2017, Unit: RMB) | Item | Current Period Amount (Jan-Sep) | Prior Period Amount (Jan-Sep) | | :--- | :--- | :--- | | I. Operating Revenue | 203,534,506.38 | 178,378,510.15 | | II. Operating Profit | 65,065,087.12 | 57,290,469.96 | | III. Total Profit | 66,739,748.48 | 59,374,805.04 | | IV. Net Profit | 56,728,786.21 | 50,468,584.28 | | (I) Basic Earnings Per Share (RMB/share) | 0.58 | 0.53 | [Cash Flow Statement](index=11&type=section&id=Cash%20Flow%20Statement) In the first three quarters of 2017, net cash flow from operating activities was **RMB 37.93 million** (up **26.51%**), investing activities resulted in a net outflow of **RMB 250 million** due to wealth management product purchases, and financing activities generated a net inflow of **RMB 270 million** from IPO proceeds, with cash and cash equivalents ending at **RMB 121 million** Major Cash Flow Statement Items (Jan-Sep 2017, Unit: RMB) | Item | Current Period Amount (Jan-Sep) | Prior Period Amount (Jan-Sep) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 37,931,496.61 | 29,984,080.11 | | Net Cash Flow from Investing Activities | -250,308,052.68 | -34,549,491.89 | | Net Cash Flow from Financing Activities | 269,811,706.84 | -58,542,724.87 | | Net Increase in Cash and Cash Equivalents | 57,424,357.56 | -63,084,498.62 | | Cash and Cash Equivalents at Period-End | 120,756,630.07 | 8,697,435.89 | [Audit Report](index=13&type=section&id=4.2%20Audit%20Report) This quarterly report is unaudited - The audit report section indicates this report is unaudited[24](index=24&type=chunk)