证券代码：603700 证券简称：宁水集团 公告编号：2021-057 宁波水表（集团）股份有限公司 关于参加宁波辖区 2021 年度上市公司投资者网上集体接待 日活动的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 为进一步加强宁波辖区上市公司与投资者的沟通交流，增强上市公司的透 明度，提升公司治理水平，促进公司规范运作，在宁波证监局指导下，宁波上 市公司协会联合深圳市全景网络有限公司共同举办"心系投资者、携手共行动 —宁波辖区 2021 年度上市公司投资者网上集体接待日活动"。活动将于 2021 年 11 月 18 日 15:00-17:00 举行，平台登陆地址为：https://rs.p5w.net/。 届时，公司高管人员将参加本次活动，通过网络在线交流形式，就公司治 理、发展战略、经营状况、可持续发展等投资者所关心的问题，与投资者进行 "一对多"形式的沟通与交流。欢迎广大投资者踊跃参与。特此公告。 宁波水表（集团）股份有限公司董事会 2021 年 11 月 11 日 ...

2021 年第三季度报告 证券代码：603700 证券简称：宁水集团 宁波水表（集团）股份有限公司 2021 年第三季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或者 重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 重要内容提示： 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人、主管会计工作负责人及会计机构负责人（会计主管人员）保证季度报告中财务 报表信息的真实、准确、完整。 第三季度财务报表是否经审计 □是 √否 一、 主要财务数据 (一)主要会计数据和财务指标 单位：元 币种：人民币 | | | 本报告期 | | 年初至报告 | | --- | --- | --- | --- | --- | | 项目 | 本报告期 | 比上年同 | 年初至报告期末 | 期末比上年 | | | | 期增减变 | | 同期增减变 | | | | 动幅度(%) | | 动幅度(%) | | 营业收入 | 435,945,819.29 | 7.30 | 1,175,99 ...

Financial Performance - The company reported a total revenue of RMB 500 million for the first half of 2021, representing a year-on-year increase of 15%[11]. - The net profit attributable to shareholders was RMB 80 million, up 20% compared to the same period last year[11]. - The company achieved total operating revenue of CNY 740,050,733.58, representing a year-on-year increase of 12.79%[21]. - Net profit attributable to shareholders was CNY 117,637,398.52, a slight increase of 0.29% compared to the same period last year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 0.48% to CNY 100,657,950.07[21]. - The company reported a significant increase in user data, with a notable rise in active users contributing to revenue growth[131]. - The net profit for the first half of 2021 was CNY 117,260,539.06, a slight increase from CNY 116,207,747.60 in the same period of 2020, representing a growth of approximately 0.9%[144]. Market Expansion and Product Development - The company plans to launch a new smart water meter product line by Q4 2021, aiming to capture a larger market share in the smart water management sector[11]. - The company is exploring potential acquisitions in the smart water technology sector to enhance its product offerings and market presence[11]. - The company is actively expanding its product offerings, including smart water meters and comprehensive data service platforms[34]. - The company plans to complete the construction of 40 new service points by the end of 2021 to enhance customer service and maintain market stability[36]. - The company plans to expand its market presence and is focusing on new product development to enhance competitiveness[131]. - The company aims to enhance its capital structure through strategic investments and potential mergers and acquisitions[164]. Research and Development - The company has invested RMB 30 million in R&D for new technologies related to IoT and smart water solutions[11]. - The company invested CNY 31.56 million in R&D during the first half of 2021, representing a 24.14% increase year-on-year[61]. - The company is focusing on the development of water quality sensors and non-invasive pipeline repair technologies, which are expected to benefit from environmental regulations[45]. - The company is focusing on technological innovation, having developed a project for networked monitoring and cloud platform systems for water supply networks, which was recognized by the Ministry of Industry and Information Technology[52]. Financial Position and Cash Flow - The company has maintained a strong cash position with cash and cash equivalents amounting to RMB 150 million as of June 30, 2021[11]. - Cash and cash equivalents decreased by 30.20% to CNY 348.98 million from CNY 500.00 million due to seasonal factors and net cash outflow from operations[72]. - The company reported a net cash outflow from operating activities of CNY -146.29 million, compared to CNY -124.95 million in the previous year[69]. - The total current assets as of June 30, 2021, amounted to CNY 1,780,010,075.69, a decrease from CNY 1,818,261,596.65 as of December 31, 2020, reflecting a decline of approximately 2.3%[131]. - The company reported cash and cash equivalents at the end of the period amounting to CNY 338,635,717.53, compared to CNY 287,675,487.03 at the end of the first half of 2020, an increase of approximately 17.7%[147]. Strategic Initiatives and Risk Management - The company has implemented a new marketing strategy focusing on digital channels, which is expected to increase customer engagement by 25%[11]. - The company has established a comprehensive R&D, procurement, production, sales, and after-sales service system, optimizing inventory management through an "order + stocking" model[35]. - The company has implemented measures to stabilize stock prices if the closing price falls below the audited net asset value per share for 20 consecutive trading days[106]. - The company has a lock-up period of 36 months for shares held by certain individuals, with specific conditions for potential extensions[104]. - The company is facing intensified market competition in the smart water meter sector, which may lead to price volatility due to the influx of cross-industry competitors[81]. Corporate Social Responsibility - The company has established a charity fund in Ningbo Jiangbei District to support various charitable activities, including assistance for the needy, education, healthcare, and disability services[98]. - The company has been actively involved in poverty alleviation efforts, partnering with impoverished counties in Gansu, Guizhou, and Yunnan to support the development of industries for registered impoverished households[98]. Compliance and Governance - The company committed to ensuring the authenticity, accuracy, and completeness of the prospectus, taking legal responsibility for any false statements or omissions[107]. - The controlling shareholders and actual controllers promised not to interfere with the company's management activities and not to infringe on the company's interests[109]. - The company will ensure that any future stock incentive plans are linked to the execution of compensation measures[109].

Financial Performance - Operating revenue increased by 19.52% to CNY 282,532,300.59 year-on-year[5] - Net profit attributable to shareholders increased by 27.47% to CNY 42,211,074.62 compared to the same period last year[5] - Basic and diluted earnings per share rose by 31.25% to CNY 0.21[5] - Total operating revenue for Q1 2021 was CNY 282,532,300.59, an increase of 19.5% compared to CNY 236,391,190.90 in Q1 2020[28] - Net profit for Q1 2021 reached CNY 42,023,166.93, representing a 27.5% increase from CNY 32,949,389.29 in Q1 2020[29] - Total comprehensive income for Q1 2021 was ¥42,715,597.82, compared to ¥32,522,419.69 in Q1 2020, reflecting a growth of 31.3%[32] Assets and Liabilities - Total assets decreased by 6.18% to CNY 1,932,593,359.72 compared to the end of the previous year[5] - The company's total assets decreased to CNY 1,898,900,358.08 from CNY 2,034,088,110.68 in the previous year[25] - The company's total liabilities decreased to CNY 445,605,271.16 from CNY 605,864,475.30, a reduction of approximately 26.43%[22] - Total liabilities decreased to CNY 412,767,887.71 from CNY 581,577,152.06 year-over-year[25] - The company's current assets totaled CNY 1,671,193,618.80, down from CNY 1,818,261,596.65 at the end of 2020, indicating a decrease of about 8.08%[20] Cash Flow - Cash flow from operating activities showed a slight improvement, with a net cash flow of -178,715,549.57, compared to -178,861,028.17 in the previous year[5] - Cash inflow from operating activities totaled ¥299,458,879.42, compared to ¥178,875,930.95 in Q1 2020, marking a significant increase of 67.4%[34] - The net cash flow from operating activities for Q1 2021 was -CNY 175,071,315.38, slightly improved from -CNY 181,037,593.64 in Q1 2020[36] - The net cash flow from investing activities was RMB -7,421,273.38, a significant improvement from RMB -106,160,353.05 in the previous year[14] Shareholder Information - The total number of shareholders reached 13,230 at the end of the reporting period[9] - The largest shareholder, Zhang Shihau, holds 19.80% of the shares, totaling 40,233,657 shares[9] - The company repurchased a total of 1,080,036 shares, accounting for 0.53% of the total share capital, at an average price of RMB 27.65 per share, totaling RMB 29,861,141.78[15] Research and Development - Research and development expenses increased by 61.70% to RMB 13,966,069.70 from RMB 8,637,097.54, reflecting the company's ongoing investment in smart water management hardware and software platforms[13] - The company reported a significant increase in research and development expenses, which rose to CNY 13,966,069.70 from CNY 8,637,097.54 in Q1 2020, marking a 61.5% increase[28] Government Support - Government subsidies recognized during the period amounted to CNY 11,948,059.99, primarily from the 2025 Industrial Enterprise Support Fund[8] - Other income increased by 99.67% to RMB 4,540,614.97 from RMB 2,274,068.41, primarily due to increased government subsidies received[14] Inventory and Receivables - Accounts receivable increased to CNY 580,758,428.37 from CNY 525,073,362.38, marking an increase of about 10.59%[20] - Inventory levels rose to CNY 319,855,835.98 from CNY 301,063,996.07, reflecting a 6.2% increase[24] - Other receivables decreased by 42.89% to RMB 10,571,799.47 from RMB 18,510,662.50, mainly due to the receipt of VAT refunds for embedded software products[13] Borrowings and Financial Position - Short-term borrowings increased by 39.88% to RMB 14,000,000.00 from RMB 10,008,797.58, reflecting new bank loans taken during the period[13] - The company reported a significant reduction in short-term borrowings, which increased to CNY 14,000,000.00 from CNY 10,008,797.58, an increase of approximately 39.87%[21]

Financial Performance - Operating revenue increased by 19.52% to CNY 282,532,300.59 year-on-year[5] - Net profit attributable to shareholders increased by 27.47% to CNY 42,211,074.62 compared to the same period last year[5] - Basic and diluted earnings per share rose by 31.25% to CNY 0.21[5] - Total operating revenue for Q1 2021 was CNY 282,532,300.59, an increase of 19.5% compared to CNY 236,391,190.90 in Q1 2020[28] - Net profit for Q1 2021 reached CNY 42,023,166.93, representing a 27.5% increase from CNY 32,949,389.29 in Q1 2020[29] - Earnings per share for Q1 2021 were CNY 0.21, compared to CNY 0.16 in Q1 2020[29] Assets and Liabilities - Total assets decreased by 6.18% to CNY 1,932,593,359.72 compared to the end of the previous year[5] - The company's current assets totaled CNY 1,671,193,618.80, down from CNY 1,818,261,596.65 at the end of 2020, indicating a decrease of about 8.08%[20] - The company's total liabilities decreased to CNY 445,605,271.16 from CNY 605,864,475.30, a reduction of approximately 26.43%[22] - Total liabilities decreased to CNY 412,767,887.71 in Q1 2021 from CNY 581,577,152.06 in Q1 2020[25] - The company’s total assets as of Q1 2021 amounted to 2,059,923,483.00 RMB, slightly down from 2,060,942,871.12 RMB at the beginning of the year[40] Cash Flow - The net cash flow from operating activities was CNY -178,715,549.57, showing a slight improvement from CNY -178,861,028.17 in the previous year[5] - The net cash flow from investing activities was RMB -7,421,273.38, a significant improvement compared to RMB -106,160,353.05 in the same period last year[14] - Cash flow from operating activities showed a net outflow of ¥178,715,549.57, slightly improved from a net outflow of ¥178,861,028.17 in Q1 2020[35] - The company reported a cash flow from financing activities of -20,367,208.06 RMB in Q1 2021, indicating no new financing was secured during the period[38] Shareholder Information - The total number of shareholders reached 13,230 by the end of the reporting period[9] - The largest shareholder, Zhang Shihua, holds 19.80% of the shares, totaling 40,233,657 shares[9] - The company repurchased a total of 1,080,036 shares, accounting for 0.53% of the total share capital, at an average price of RMB 27.65 per share, totaling RMB 29,861,141.78[15] Research and Development - Research and development expenses increased by 61.70% to RMB 13,966,069.70, reflecting the company's ongoing investment in smart water management hardware and software platforms[13] - Research and development expenses for Q1 2021 amounted to CNY 13,966,069.70, a significant increase of 61.5% from CNY 8,637,097.54 in Q1 2020[28] Government Subsidies - Non-recurring gains and losses totaled CNY 13,032,878.88, primarily from government subsidies[8] - The company received CNY 11,948,059.99 in government subsidies related to industrial support during the reporting period[8] - Other income rose by 99.67% to RMB 4,540,614.97, mainly due to an increase in government subsidies received[14] - The company reported a 243.29% increase in non-operating income to RMB 10,872,090.29, attributed to higher government subsidies[14] Inventory and Accounts Receivable - Accounts receivable financing decreased by 34.56% to RMB 21,154,650.50, primarily due to the transfer and maturity of receivable notes[13] - Accounts receivable increased to CNY 580,758,428.37 from CNY 525,073,362.38, marking an increase of about 10.59%[20] - The inventory balance as of March 31, 2021, was CNY 337,285,628.99, up from CNY 317,125,543.34, indicating an increase of about 6.67%[20] Employee Stock Ownership Plan - The company plans to implement an employee stock ownership plan for 2021 to 2023, which was approved by the board[16] - The company has established an employee stock ownership plan for 2021-2023, which was approved in the shareholder meeting held on March 23, 2021[17] - The first meeting of the employee stock ownership plan management committee was held on March 29, 2021, to oversee the implementation of the plan[18]

Financial Performance - The company achieved total operating revenue of ¥1,590,152,353.41 in 2020, representing a year-on-year growth of 15.97%[27]. - Net profit attributable to shareholders of the listed company was ¥273,091,001.84, an increase of 28.64% compared to the previous year[27]. - The net profit after deducting non-recurring gains and losses was ¥245,100,630.87, up 30.32% year-on-year, primarily due to the rapid development of the smart water meter business[27]. - Basic earnings per share for 2020 were ¥1.34, reflecting a growth of 26.42% from ¥1.06 in 2019[26]. - Total assets at the end of 2020 reached ¥2,059,923,483.00, a 21.14% increase from ¥1,700,511,780.22 in 2019[25]. - The weighted average return on net assets increased to 20.16%, up 1.2 percentage points from 18.96% in 2019[26]. - The company reported a net cash flow from operating activities of ¥126,758,759.57, a decrease of 9.28% compared to the previous year[25]. - The company’s net assets attributable to shareholders were ¥1,452,633,108.50 at the end of 2020, an increase of 16.76% from ¥1,244,167,921.79 in 2019[25]. Dividend Policy - The company plans to distribute a cash dividend of 4 RMB per 10 shares, totaling approximately 80.86 million RMB, which accounts for 29.61% of the net profit attributable to shareholders in 2020[5]. - The cash dividend payout ratio for 2020 was 7.32%, amounting to 19,988,015.16 RMB[144]. - The company has established a cash dividend policy, ensuring a minimum of 20% of distributable profits are allocated to cash dividends annually, provided certain conditions are met[136]. - The company plans to distribute cash dividends with a minimum ratio of 80% if it is in a mature stage without significant capital expenditure arrangements[137]. - The company has committed to a differentiated cash dividend proposal based on its development stage and capital expenditure plans[137]. - The company’s net profit attributable to ordinary shareholders for 2020 was 273,091,001.84 RMB, with a dividend payout ratio of 29.61%[142]. Share Repurchase and Capital Structure - The total amount spent on share repurchases during the reporting period was approximately 19.99 million RMB, combined with the proposed cash dividend, totaling around 100.85 million RMB, representing 36.93% of the net profit attributable to shareholders[5]. - The company’s capital stock increased by 30.00% to ¥203,242,000.00 due to the capitalization of reserves[96]. - The company has a total of 203,242,000 shares after the recent capital increase, with 99,918,690 shares subject to limited sale conditions, representing 49.16% of total shares[200]. - The company has a total of 103,323,300 shares in circulation, with 39,090,000 shares under unlimited sale conditions, representing 50.84% of total shares[200]. Risk Management - There are no significant risks that could materially affect the company's operations during the reporting period[8]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[7]. - The company has not violated decision-making procedures for providing guarantees[8]. - The company has not faced any issues with a majority of directors being unable to ensure the authenticity of the annual report[8]. - The company emphasizes the importance of investment risk awareness regarding forward-looking statements in the report[6]. - The company is exposed to macroeconomic risks, as its products are closely tied to urban water supply, which may be adversely affected by economic slowdowns[126]. - The company faces risks of declining gross margins due to increased competition in the smart water meter market and potential raw material price fluctuations[129]. Innovation and Product Development - The company focuses on smart water supply, manufacturing over 1,000 types of water metering products, serving over 2,300 domestic water companies, and exporting to over 80 countries[38]. - The company is developing Smart 3.0 products based on 5G technology, which will provide integrated data sensing for water supply companies, measuring parameters like water volume, pressure, and quality[39]. - The smart water service application cloud platform integrates various systems for seamless data exchange, enhancing decision-making for water companies[40]. - The company is committed to innovation and product development, expanding its offerings beyond traditional water metering products to include network flushing equipment and pressure analyzers[44]. - The company has developed a new generation of NB-IoT water meters, significantly reducing costs and improving gross margins[60]. - The company is actively pursuing a strategy of expanding its service capabilities and optimizing product structures to adapt to market demands[60]. Market Position and Strategy - The company has established long-term partnerships with over 2,300 water supply companies, maintaining a stable market position with sales revenue distribution across eight regions[58]. - The company aims to achieve a revenue target of 2 billion yuan for 2021, focusing on expanding both domestic and international markets[119]. - The company is transitioning towards a "manufacturing + service" model, integrating hardware and software solutions for comprehensive water management[117]. - The company anticipates significant growth in the smart water management sector, with the industry scale projected to exceed 100 billion yuan in the future[115]. - The company plans to enhance its production capacity to 5 million smart meters and establish a fully automated production line in a new factory utilizing advanced technologies like 5G and IoT[122]. Social Responsibility and Community Engagement - The company contributed RMB 25,000 in funds and RMB 2,000 in material donations for poverty alleviation efforts[188]. - The company received the "Outstanding Contribution Award" from the China Metrology Association for its efforts in social responsibility and poverty alleviation[188]. - The company actively participates in social welfare activities, including a donation of 1 million yuan for pandemic relief efforts and establishing a charity fund for local assistance programs[194]. - The company emphasizes employee rights protection, providing benefits such as free accommodation, regular health check-ups, and high-temperature subsidies[193]. Compliance and Governance - The company has received a standard unqualified audit report from the accounting firm, ensuring the accuracy and completeness of the financial report[4]. - The company has confirmed that there are no significant accounting errors or changes in accounting estimates during the reporting period[159]. - The company has committed to not engaging in any activities that would harm the interests of shareholders and will compensate for any losses caused by breaches of this commitment[154]. - The company will publicly disclose any failure to fulfill commitments made in the prospectus and will compensate investors for any resulting losses[154]. - The company has ensured that its controlling shareholders and executives will not interfere with management activities or misappropriate company interests[154].

Financial Performance - Net profit attributable to shareholders rose by 35.92% to CNY 182,771,888.44 for the first nine months of the year[5] - Operating revenue for the first nine months increased by 16.31% to CNY 1,062,399,434.50 compared to the same period last year[5] - Basic earnings per share increased by 32.35% to CNY 0.90[6] - The weighted average return on equity improved by 1.38 percentage points to 13.89%[6] - The company's net profit increased, leading to a 31.27% rise in retained earnings to CNY 570,324,122.70[14] - The company reported a total profit of ¥75,127,847.83 for Q3 2020, compared to ¥62,585,112.42 in Q3 2019, marking a growth of 19.66%[28] - The company's total profit for the first three quarters of 2020 was ¥209,221,717.74, up 35.47% from ¥154,411,084.74 in the same period of 2019[32] Assets and Liabilities - Total assets increased by 9.67% to CNY 1,864,988,490.22 compared to the end of the previous year[5] - The total number of shareholders reached 10,114 by the end of the reporting period[10] - Total liabilities increased significantly, with short-term borrowings recorded at CNY 10,009,043.39 due to new bank loans[13] - Total liabilities stood at CNY 482,170,080.33, compared to CNY 454,522,451.83, showing an increase of about 6.06%[21] - The company's equity increased to CNY 1,382,818,409.89 from CNY 1,245,989,328.39, representing a growth of approximately 10.96%[21] - The total liabilities as of Q3 2020 were ¥456,943,992.87, an increase from ¥431,409,378.27 in the previous year[24] - Total equity increased to ¥1,381,630,099.05 in Q3 2020, up from ¥1,245,563,537.00 in Q3 2019[24] Cash Flow - The net cash flow from operating activities for the first nine months was CNY -161,516,876.15, showing a slight improvement from CNY -165,909,905.01 in the previous year[5] - Cash inflow from operating activities for the first three quarters of 2020 was CNY 946,780,912.46, an increase from CNY 767,563,068.38 in the same period of 2019, representing a growth of approximately 23.4%[34] - Cash outflow from operating activities in Q3 2020 totaled CNY 1,108,297,788.61, compared to CNY 933,472,973.39 in Q3 2019, indicating an increase of about 18.7%[35] - The total cash inflow from operating activities for the first three quarters of 2020 was CNY 895,741,800.40, up from CNY 717,063,899.14 in the same period of 2019, reflecting a growth of approximately 25%[38] Investments and Expenses - Research and development expenses increased by 45.55% to CNY 42,162,629.38, reflecting enhanced R&D efforts and project expansions[15] - Investment income rose by 68.11% to CNY 10,579,890.64, primarily from increased financial investment returns[15] - Research and development expenses for Q3 2020 amounted to ¥16,736,720.73, a significant increase of 34.00% compared to ¥12,427,149.68 in Q3 2019[26] - Other income grew by 73.95% to CNY 19,538,340.52, mainly due to increased government subsidies such as software tax rebates[15] - Other income for Q3 2020 was ¥9,209,835.74, significantly higher than ¥1,835,294.45 in Q3 2019, indicating a growth of 400.00%[31] Shareholder Information - The top shareholder, Zhang Shihau, holds 19.80% of the shares, totaling 40,233,657 shares[10] - The company received government subsidies amounting to CNY 15,807,110.08 during the reporting period[7] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[12] - Future strategies may include leveraging retained earnings for market expansion and new product development[47]

Financial Performance - The company reported a total revenue of RMB 100 million for the first half of 2020, representing a year-on-year increase of 15%[12]. - The net profit attributable to shareholders was RMB 20 million, up 10% compared to the same period last year[12]. - Basic earnings per share increased by 41.46% to CNY 0.58 compared to the same period last year[19]. - Operating revenue rose by 18.33% to CNY 656,121,910.98, up from CNY 554,499,279.49 in the previous year[19]. - Net profit attributable to shareholders increased by 46.51% to CNY 117,296,874.53, compared to CNY 80,063,130.95 in the same period last year[19]. - The company's operating revenue for the reporting period was ¥656,121,910.98, an increase of 18.33% compared to ¥554,499,279.49 in the same period last year[53]. - The company reported a total of 1,245,989,328 RMB in equity attributable to shareholders at the end of the period[152]. - The total revenue for the first half of 2020 reached CNY 1,317,084,876, showing a significant increase compared to the previous period[156]. - The net profit attributable to the parent company was CNY 203,242,000, reflecting a strong performance in the first half of the year[156]. Market Expansion and Strategy - Future outlook indicates a projected revenue growth of 20% for the second half of 2020, driven by increased demand for smart water management solutions[12]. - Market expansion plans include entering two new provinces by the end of 2020, targeting a 30% increase in market share[12]. - The company is actively adapting to the evolving market landscape by focusing on smart water meter development and related software solutions[34]. - The company plans to continue expanding its market presence both domestically and internationally, particularly in the smart water meter sector[64]. Research and Development - The company is investing RMB 5 million in R&D for new IoT water meter technologies, aiming to enhance data transmission capabilities[12]. - The company's R&D expenses rose to ¥25,425,908.65, reflecting a significant increase of 53.73% from ¥16,539,684.73 in the previous year, indicating a stronger focus on innovation[53]. - The company has established six project teams focused on the development of smart water terminal products and public service platforms, enhancing its technological innovation capabilities[47]. - The company is leveraging emerging technologies such as IoT, big data, and cloud computing to enhance product quality and provide intelligent value-added services[67]. Operational Efficiency - The company has maintained a strong cash position, with cash and cash equivalents totaling RMB 50 million as of June 30, 2020[12]. - The company has restructured its supply chain to reduce procurement costs while ensuring material supply for R&D and production[49]. - The company has implemented a performance management reform, incorporating senior management into the assessment system to improve management effectiveness[50]. - The company has a strong management team with extensive industry experience, which contributes to its stable growth and operational efficiency[42]. Risk Management - The company emphasizes the importance of risk management, stating that there are no substantial risks affecting operations during the reporting period[12]. - The company faces risks from macroeconomic fluctuations, which could impact product demand in the water supply sector[64]. - The company has implemented measures to mitigate risks from raw material price fluctuations and currency exchange rate changes[65]. Environmental Compliance - The company emphasizes environmental protection, ensuring that production processes comply with national and local environmental regulations, resulting in minimal waste generation[98]. - The company has engaged independent third-party agencies for environmental monitoring to ensure compliance with environmental laws[98]. - The company has implemented pollution prevention measures in line with the "three simultaneous" principle during project construction[99]. Shareholder Information - The company distributed a cash dividend of 0.3 RMB per share, totaling 46,902,000 RMB, and converted 46,902,000 shares from capital reserves[105]. - The total number of shares increased from 156,340,000 to 203,242,000 after the capital reserve conversion and cash dividend distribution, resulting in a total increase of 46,902,000 shares[105]. - The company has a lock-up period of 36 months for shares held by major shareholders, including Zhang Shihua and Wang Zonghui[114]. - The company reported a significant increase in shareholdings among directors, with Zhang Shihua's holdings rising to 40,233,657 shares[118]. Financial Position - Total assets increased by 5.95% to CNY 1,801,711,409.04 from CNY 1,700,511,780.22 at the end of the previous year[19]. - The company's net assets attributable to shareholders rose by 5.73% to CNY 1,315,508,797.32[19]. - Total liabilities as of June 30, 2020, were ¥484,626,532.94, up from ¥454,522,451.83, which is an increase of about 6.5%[127]. - Shareholders' equity increased to ¥1,317,084,876.10 from ¥1,245,989,328.39, reflecting a growth of approximately 5.7%[127].

Financial Performance - Net profit attributable to shareholders increased by 32.58% to CNY 33,114,032.41 year-on-year[5] - Operating revenue slightly increased by 0.47% to CNY 236,391,190.90 compared to the same period last year[5] - Basic earnings per share rose by 23.53% to CNY 0.21[6] - The company reported a net profit excluding non-recurring gains and losses of CNY 28,483,359.56, an increase of 15.18% year-on-year[5] - Operating profit for Q1 2020 was CNY 35,899,227.67, representing an increase of 25.5% from CNY 28,547,902.14 in Q1 2019[26] - Net profit for the period reached CNY 38,066,301.66, up from CNY 28,835,949.15 in the previous year, indicating a growth of 32.5%[26] - The total comprehensive income for Q1 2020 was approximately ¥32.95 million, an increase of 32.5% from ¥24.78 million in Q1 2019[28] Assets and Liabilities - Total assets decreased by 4.88% to CNY 1,617,605,842.08 compared to the end of the previous year[5] - Total assets as of March 31, 2020, were CNY 1,595,556,312.75, a decrease from CNY 1,676,972,915.27 at the end of Q1 2019[24] - Total liabilities decreased to CNY 330,259,988.73 from CNY 446,376,061.50, primarily due to a reduction in accounts payable[19] - Total liabilities decreased to CNY 317,203,325.75 from CNY 431,409,378.27, reflecting a reduction of approximately 26.4%[24] - Total liabilities amounted to ¥454,522,451.83, with current liabilities at ¥446,376,061.50 and non-current liabilities at ¥8,146,390.33[39] Cash Flow - Cash flow from operating activities showed a net outflow of CNY 178,861,028.17, compared to a net outflow of CNY 137,638,326.51 in the previous year[5] - Net cash flow from operating activities was negative at ¥-178,861,028.17, worsening from ¥-137,638,326.51 in the previous year, due to seasonal cash collection and increased cash payments for raw materials[14] - The total cash outflow from operating activities was 338,495,463.96 RMB, compared to 287,602,654.93 RMB in the previous year, reflecting an increase of approximately 17.7%[35] - The company reported a cash flow net increase of -284,254,308.20 RMB, contrasting with an increase of 77,636,693.04 RMB in the previous year[35] - Cash inflow from financing activities amounted to 612,562,698.00 RMB, while cash outflow was 21,938,721.83 RMB, resulting in a net cash flow of 590,623,976.17 RMB[36] Shareholder Information - The number of shareholders reached 8,160 at the end of the reporting period[10] - The top shareholder, Zhang Shihao, holds 19.80% of the shares, totaling 30,948,967 shares[10] Government Subsidies and Other Income - The company received government subsidies amounting to CNY 3,656,534.20, which are closely related to its normal business operations[7] - Other income increased by 999.11% to ¥3,167,073.99 from ¥288,148.01, mainly due to increased government subsidies received[13] Research and Development - Research and development expenses rose by 29.51% to ¥8,637,097.54 from ¥6,669,314.56, attributed to an increase in R&D personnel[13] - Research and development expenses rose to approximately ¥7.79 million in Q1 2020, up 25.7% from ¥6.20 million in Q1 2019[31] Investment and Financial Assets - Trading financial assets increased by 30.29% to ¥456,000,060.00 from ¥350,000,000.00, primarily due to an increase in investment financial products[12] - Investment income surged by 1419.25% to ¥2,461,803.33 from ¥162,040.72, mainly due to increased financial investment returns[13] Inventory and Receivables - Accounts receivable notes decreased by 77.78% to ¥9,278,168.52 from ¥41,747,076.05, mainly due to the maturity of bank acceptance bills during the reporting period[12] - Accounts receivable rose to CNY 439,360,070.49, up from CNY 338,252,292.94, indicating an increase of 29.9%[23] - Inventory increased to CNY 294,133,729.43 from CNY 270,603,148.96, reflecting a growth of 8.7%[23]

Financial Performance - The total net profit attributable to shareholders for 2019 was 212,296,685.71 RMB[5]. - The net profit attributable to shareholders reached CNY 212,296,685.71, an increase of 54.72% compared to the previous year, primarily driven by the rapid development of the smart water meter business[23]. - The company achieved total operating revenue of CNY 1,371,124,665.82 in 2019, representing a year-on-year growth of 33.21%[21]. - The net cash flow from operating activities was CNY 139,720,756.72, up 36.79% year-on-year, attributed to increased cash receipts from sales of goods and services[23]. - The company's total assets at the end of 2019 were CNY 1,700,511,780.22, a 106.23% increase from the previous year[22]. - The net assets attributable to shareholders increased by 143.52% to CNY 1,244,167,921.79 by the end of 2019, mainly due to funds raised from the IPO and rapid business growth[23]. - Basic earnings per share for 2019 were CNY 1.39, reflecting an 18.80% increase from CNY 1.17 in 2018[22]. - The weighted average return on equity decreased to 18.96%, down 11.07 percentage points from 30.03% in 2018[22]. Dividend Policy - The company plans to distribute a cash dividend of 3 RMB per 10 shares, totaling 46,902,000 RMB, which represents 22.09% of the net profit attributable to shareholders for 2019[5]. - The cash dividend ratio for 2019 was 22.09%, with a total of 46,902,000.00 RMB in cash dividends distributed[133]. - The company aims to distribute at least 20% of the annual distributable profit as cash dividends if there are no major capital expenditures planned in the next 12 months[130]. - The company’s profit distribution policy emphasizes consistency and stability while balancing long-term interests and sustainable development[129]. - The company has not proposed a cash profit distribution plan for the reporting period despite having positive distributable profits, as it is focusing on reinvestment[135]. Market and Business Strategy - The company is focused on expanding its market presence and developing new technologies in the water meter industry[11]. - The company plans to continue expanding its smart water meter business and explore new market opportunities in the coming years[23]. - The company is actively pursuing research and development in smart and IoT water meter technologies[11]. - The company is committed to enhancing operational efficiency and reducing costs through smart water management solutions[11]. - The company is positioned as a pioneer in the smart water meter sector, having led the industry in setting standards and establishing testing laboratories for NB-IoT terminal products[48]. Research and Development - The company invested 41,960,200 CNY in R&D, a year-on-year increase of 32.73%, and applied for 9 invention patents and 15 utility model patents[63]. - The company is committed to continuous innovation and has set up a technology pre-research department to explore emerging industry topics for future breakthroughs in smart water management[54]. - The company is focusing on the development of next-generation smart water meter products and advanced water parameter measurement sensor technology, expanding its R&D scope and application scale[115]. Risk Management - There were no significant risks that materially affected the company's operations during the reporting period[7]. - The company faces risks related to macroeconomic fluctuations, which could impact product demand, and is implementing strategies to mitigate these risks[123]. - The company is also addressing potential risks from raw material price fluctuations and currency exchange rate changes through improved procurement strategies and contract management[125]. - The impact of the COVID-19 pandemic is being monitored, with the company taking measures to manage risks while ensuring continued operations in the essential water meter industry[126]. Corporate Governance - The company has established measures to ensure compliance with regulatory requirements and protect shareholder rights[155]. - The company has made commitments to avoid conflicts of interest and ensure that its executives do not engage in activities that could harm the company's interests[154]. - The company has maintained transparent information disclosure practices to protect shareholder rights and enhance corporate governance[181]. - The company actively engages with shareholders through various investor relations activities to provide comprehensive insights into its operations[181]. Shareholder Information - The company reported a stock lock-up period of 36 months for shareholders, during which they cannot transfer or manage their shares[140]. - The largest shareholder, Zhang Shihua, holds 30,948,967 shares, representing 19.80% of total shares[197]. - The total number of ordinary shareholders increased from 8,160 to 13,917 during the reporting period[195]. - The top ten shareholders hold a combined total of 79,000,000 shares, accounting for 50.53% of total shares[197]. Social Responsibility - The company signed a partnership agreement with Ceheng County, Guizhou Province, to assist in poverty alleviation efforts, continuing its commitment to social responsibility[177]. - In the reporting period, the company invested a total of 10 million RMB in social poverty alleviation initiatives, specifically through the East-West poverty alleviation collaboration[179]. - The company has established a charity fund in Ningbo Jiangbei District to support various charitable activities, including education and medical assistance[183]. - The company will continue to fulfill its poverty alleviation commitments and respond to other calls for precise poverty alleviation in more regions[180]. Production and Operations - The company has a full production capacity with a flexible production process that meets customer demands, resulting in high gross margins[37]. - The production volume of smart water meters reached 3,284,063 units, a year-on-year increase of 59.01%[78]. - The company plans to increase production capacity by upgrading existing production layouts and introducing automated equipment, with a target of producing 405,000 smart water meters annually starting in 2020[116]. Contracts and Partnerships - The company signed a procurement contract with Beijing Water Group for the supply and installation of remote water meters, totaling CNY 36,816,032[173]. - The company entered into a government procurement contract with Qitaihe Water Supply Company for NB-IoT wireless water meters, with a total contract value of CNY 54,640,200[174]. - The company was awarded a contract for the NB-IoT water meter procurement project from Tianjin Binwei Company, with a bid amount of CNY 55,594,000[176].