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)