Financial Performance - The company's operating revenue for the first half of 2022 was ¥1,346,754,329.21, a decrease of 9.09% compared to ¥1,481,418,549.95 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was ¥180,395,336.45, down 13.31% from ¥208,091,427.18 in the previous year[18]. - The net cash flow from operating activities was ¥12,817,359.97, a significant decline of 90.11% compared to ¥129,576,096.35 in the same period last year[18]. - The total assets at the end of the reporting period were ¥4,465,095,047.05, a decrease of 5.17% from ¥4,708,345,723.43 at the end of the previous year[18]. - Basic earnings per share for the first half of 2022 were ¥0.27, down 15.63% from ¥0.32 in the same period last year[20]. - The weighted average return on net assets decreased by 1.93 percentage points to 5.91% from 7.84% in the previous year[21]. - The company reported non-recurring gains and losses totaling 16,631,624.68 RMB, with a tax impact of 2,955,102.43 RMB[23]. - Net profit attributable to shareholders was ¥180,395,336.45, down 13.31% year-on-year, while the net profit excluding non-recurring gains and losses was ¥163,763,711.77, a decrease of 14.27% year-on-year[35]. - The total comprehensive income attributable to the parent company was CNY 180,208,563.34, a decrease from CNY 208,116,385.46 in the previous period, representing a decline of approximately 13.4%[123]. Assets and Liabilities - The total liabilities decreased to ¥1,451,615,408.63 from ¥1,749,112,966.83, a reduction of approximately 17.0%[115]. - Cash and cash equivalents at the end of the period reached ¥1,328,726,072.45, representing 29.76% of total assets, an increase of 65.98% compared to the previous year[44]. - The company’s total liabilities included a new lease liability of ¥893,542.02, a decrease of 39.71% from the previous period[44]. - The total amount of receivables financing decreased by 36.34% to ¥375,478,182.92, also due to lower collection rates[44]. - The company’s total foreign assets amounted to ¥1,327,055.47, accounting for 0.03% of total assets[46]. - Total current assets decreased to ¥2,865,639,900.48 from ¥3,196,711,111.91, a decline of approximately 10.3%[113]. - Total non-current assets increased to ¥1,599,455,146.57 from ¥1,511,634,611.52, reflecting a growth of about 5.7%[114]. - The company’s total owner's equity at the end of the reporting period was 2,662,589,082.32 RMB, with a significant increase from the previous period[147]. Market Position and Business Operations - The company’s main business is the research, production, and sales of gear reducers, which are essential components in various industries including construction, power, and logistics[25]. - The company is positioned as a leading enterprise in the domestic gear reducer market, leveraging its scale, brand, and product quality advantages[31]. - The company experienced a slight decline in revenue and profitability due to increased market competition and reduced downstream demand[31]. - The company has 82 A-class distributors, providing a stable and extensive sales network across most provinces in China[32]. - The company produced nearly 100,000 product models in 2021, showcasing its product diversification advantage in the general reducer sector[32]. - The company is actively expanding into specialized reducers and mechatronics, forming a business layout across eight major sectors[35]. - The company maintained its absolute leading advantage in the lithium battery slurry mixer market and expanded its customer base for lithium battery roller press equipment[37]. Research and Development - Research and development expenses increased by 27.71% to approximately CNY 66.53 million, reflecting the company's commitment to innovation[42]. - The company’s precision transmission subsidiary has a monthly production capacity of approximately 2,500 harmonic reducers, targeting the rapidly growing robotics market[37]. - The company successfully developed a subsea reducer for underwater propulsion machines, enhancing its product offerings for the environmental protection industry[35]. Shareholder and Compliance Matters - The company has committed to a 36-month lock-up period for shares held by major shareholders following the IPO, during which they will not transfer or manage these shares[69]. - Major shareholders are required to announce any planned share reductions 3 trading days in advance, with the sale price not to be lower than the adjusted IPO price[69]. - The company will take corrective actions if any commitments are violated, including compensating investors for direct losses[72]. - The company has established a framework for compliance with regulatory requirements regarding share transfers and commitments[72]. - Any violations of commitments will result in legal consequences and the obligation to rectify the situation within the specified timeframe[72]. Risks and Challenges - The company anticipates potential risks from global economic fluctuations and commodity price volatility, which may impact operational costs and profitability[52]. - The company plans to enhance market development efforts and strengthen customer communication to mitigate the impact of external risks[52]. - Risks associated with the implementation of fundraising investment projects include unforeseen factors that may delay project completion or yield lower-than-expected returns[54]. - Rapid growth in asset scale and operational performance presents management challenges, necessitating adjustments in organizational structure and processes[54]. Inventory and Procurement - The company has a significant inventory reduction of 87,405,600.00 RMB, which may indicate improved inventory management practices[149]. - The company guarantees that it will not illegally occupy the funds or assets of Guomao Co., Ltd. during the period of being the controlling shareholder and will minimize related party transactions[75]. - The procurement of castings from Changzhou Guotai Casting Co., Ltd. was expected to be 961.50 million CNY, with actual transactions of 392.50 million CNY in the first half[89]. Financial Management - The company reported a profit distribution of -118,136,850.00 RMB, indicating a loss allocation to shareholders[146]. - The capital reserve increased by 31,677,208.54 RMB during the reporting period, reflecting new capital contributions[146]. - The company has a total of 5,000,000.00 RMB in common stock contributions from owners, indicating continued investor confidence[141]. - The company reported a total of 1,240,430,366.30 RMB in other equity instruments, indicating diverse funding sources[147].

Dividend Distribution - The company plans to distribute a cash dividend of 0.30 RMB per share (including tax) and a stock bonus of 0.4 shares for every share held[6]. - The total share capital for the dividend distribution is based on the total shares registered on the equity distribution date[6]. - For the 2021 fiscal year, the company plans to distribute 3.00 CNY per 10 shares, totaling 141,969,720 CNY, representing 30.73% of the net profit attributable to shareholders[147]. Financial Performance - The company's operating revenue for 2021 was CNY 2,944,286,973.65, representing a 34.81% increase compared to CNY 2,184,076,489.85 in 2020[24]. - The net profit attributable to shareholders for 2021 was CNY 462,035,296.62, up 28.66% from CNY 359,127,084.55 in 2020[24]. - The net profit after deducting non-recurring gains and losses was CNY 424,243,363.69, reflecting a 32.10% increase from CNY 321,152,270.96 in 2020[24]. - The company's total assets at the end of 2021 reached CNY 4,708,345,723.43, a 17.62% increase from CNY 4,003,006,707.15 at the end of 2020[24]. - The basic earnings per share for 2021 was CNY 0.99, which is a 26.92% increase compared to CNY 0.78 in 2020[24]. - The weighted average return on equity for 2021 was 16.87%, an increase of 1.81 percentage points from 15.06% in 2020[24]. - The net cash flow from operating activities for 2021 was CNY 399,340,780.40, a slight decrease of 3.37% from CNY 413,261,426.17 in 2020[24]. - The company's net assets attributable to shareholders at the end of 2021 were CNY 2,953,715,137.11, marking a 16.60% increase from CNY 2,533,179,311.76 at the end of 2020[24]. Risk Management - The company reported no significant risks that could materially affect its operations during the reporting period[7]. - The company has outlined potential risk factors in the management discussion and analysis section of the report[7]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[7]. - The company has not violated any decision-making procedures regarding external guarantees[7]. - The company faces risks from macroeconomic fluctuations, trade tensions, and raw material price volatility, which could impact profitability[101]. Corporate Governance - The company has received a standard unqualified audit report from Lixin Certified Public Accountants[6]. - The board of directors and supervisory board members have all attended the board meeting, ensuring accountability for the report's accuracy[5]. - The company maintained strict compliance with corporate governance regulations, enhancing information disclosure and investor relations management[104]. - The company has not disclosed any significant differences in governance compared to regulatory requirements[104]. - The company has independent directors and supervisors with extensive experience in various industries, enhancing governance and oversight[122]. Research and Development - Research and development expenses increased by 43.74% to approximately CNY 112.53 million, indicating a focus on new product development[57]. - The company holds 164 domestic patents, including 25 invention patents, reflecting its commitment to innovation and technology advancement[53]. - The company has developed new gearbox products for high-altitude work platforms, directional drilling, and other applications, with a torque increase of over 20% for the upgraded SHE2 ultra-high torque series gearbox[75]. - The company is committed to increasing R&D investment, particularly in high-potential products, to maintain its competitive edge[98]. Market Expansion and Sales - The company is focused on optimizing its sales organization to better meet customer demands and support business growth[39]. - The company has established a strong marketing network with 78 A-class distributors, enhancing its market penetration across most provinces in China[53]. - The company is enhancing its marketing management capabilities, focusing on developing major clients in emerging and underdeveloped industries[98]. - The company's sales model includes direct sales to end customers and sales through distributors, with all sales being buyout sales[48]. Environmental Responsibility - The company emphasizes environmental responsibility and has made significant investments in safety and environmental protection measures during the reporting period[163]. - The company has established a general industrial wastewater treatment system with a capacity of 60,000 tons per year, effectively reducing COD levels before discharge[164]. - The nitrogen and phosphorus wastewater treatment system can handle 4,500 tons per year, ensuring compliance with local discharge standards[164]. - The company has been recognized as a "2021 Green Factory" by the Ministry of Industry and Information Technology, highlighting its commitment to sustainable practices[168]. Employee Welfare and Management - The company has a robust training program, offering various training sessions annually to meet departmental needs[144]. - The company has established a comprehensive salary and performance evaluation system, with total salary determined by key operational indicators[143]. - The company is focused on maintaining a balance between employee stability and performance-based remuneration[127]. - The company has strengthened its employee welfare programs, providing support for those facing economic difficulties due to health issues or accidents[171]. Future Outlook - Future outlook remains positive with ongoing investments in new product development and technology[113]. - The company aims to improve operational efficiency through strategic initiatives[113]. - The company has a clear strategy for future growth, focusing on market expansion and technological advancements[121]. - There are plans for potential mergers and acquisitions to drive growth and innovation[113].

Financial Performance - The company's operating revenue for Q1 2022 was ¥609,758,554.67, representing a decrease of 5.05% compared to the previous year[6] - Net profit attributable to shareholders was ¥64,698,754.72, down 18.55% year-over-year[6] - Basic earnings per share were ¥0.14, reflecting a decrease of 17.65%[6] - Total operating revenue for Q1 2022 was CNY 609.76 million, a decrease of 5.1% from CNY 642.20 million in Q1 2021[30] - Net profit for Q1 2022 was CNY 64.36 million, a decline of 19.1% compared to CNY 79.64 million in Q1 2021[31] - The company reported a total profit of CNY 69.05 million in Q1 2022, down 26% from CNY 93.28 million in Q1 2021[31] - Other comprehensive income after tax for Q1 2022 was CNY 20.96 million, compared to a loss of CNY 17.13 million in Q1 2021[34] Cash Flow - The net cash flow from operating activities was negative at ¥137,801,328.86, a significant decline of 873.82%[6] - The company reported a significant decline in cash flow due to delayed cash outflows related to procurement payments[12] - The net cash flow from operating activities was -137,801,328.86, a significant decrease compared to 17,807,858.10 from the previous period, indicating a decline in operational performance[38] - Cash inflow from investment activities totaled 403,733,557.84, up from 201,163,853.71, reflecting improved investment recovery[38] - The net cash flow from investment activities was 189,705,535.45, a recovery from a negative cash flow of -438,181,962.57 in the previous period, showing a positive turnaround in investment performance[38] - Cash outflow from operating activities increased to 731,108,452.00 from 566,698,795.55, indicating higher operational costs[38] - The cash received from other operating activities was 3,866,316.90, compared to 36,606,126.28, indicating a decline in other operational income[38] - The cash flow from financing activities was -798,859.00, reflecting a net outflow due to payments related to financing activities[40] Assets and Liabilities - Total assets at the end of the reporting period were ¥4,493,094,312.00, a decrease of 4.57% from the previous year-end[8] - The company's current assets totaled RMB 2,948,672,617.74, down from RMB 3,196,711,111.91 year-over-year[23] - The total liabilities decreased to RMB 1,459,260,943.26 from RMB 1,749,112,966.83, representing a reduction of approximately 16.5%[26] - The total cash and cash equivalents at the end of the period were 837,895,232.10, an increase from 678,862,762.70, suggesting improved liquidity[40] Shareholder Equity - Shareholders' equity attributable to the parent company increased by 2.37% to ¥3,023,650,397.50[8] - The total equity attributable to shareholders of the parent company rose to CNY 3,023.65 million, an increase of 2.4% from CNY 2,953.72 million[30] Operational Metrics - The weighted average return on equity was 2.16%, a decrease of 0.92 percentage points[6] - R&D expenses increased significantly to CNY 35.07 million in Q1 2022, up 52% from CNY 23.08 million in Q1 2021[31] - The company has not disclosed any new product developments or market expansion strategies during this reporting period[19] Inventory and Receivables - Accounts receivable rose significantly to RMB 394,952,873.88, compared to RMB 254,666,496.65, marking an increase of about 55%[23] - Inventory levels were reported at RMB 731,804,697.91, slightly up from RMB 718,042,896.92, indicating a marginal increase[23] - The company reported a significant decrease in accounts payable, which fell to RMB 375,233,768.67 from RMB 436,627,852.07, a decline of about 14%[26]

Financial Performance - The company's operating revenue for Q3 2021 was ¥777,059,404.10, representing a year-on-year increase of 34.72%[7] - The net profit attributable to shareholders for Q3 2021 was ¥136,724,498.46, reflecting a year-on-year growth of 60.59%[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses for Q3 2021 was ¥131,612,534.12, up 68.68% year-on-year[11] - The basic earnings per share for Q3 2021 was ¥0.30, an increase of 66.67% compared to the same period last year[11] - Total operating revenue for the first three quarters of 2021 reached ¥2,258,477,954.05, a significant increase from ¥1,568,917,160.43 in the same period of 2020, representing a growth of approximately 44%[40] - Net profit for the third quarter of 2021 was ¥345,600,509.56, compared to ¥237,421,517.02 in the third quarter of 2020, reflecting an increase of about 45.5%[40] - The total comprehensive income for the third quarter of 2021 was ¥345,616,949.13, compared to ¥237,453,225.84 in the same quarter of 2020, indicating an increase of approximately 45.5%[42] Assets and Liabilities - The total assets at the end of Q3 2021 amounted to ¥4,649,909,627.75, a 16.16% increase from the end of the previous year[11] - The total liabilities as of the end of the reporting period amounted to ¥1,834,283,642.62, up from ¥1,462,663,860.89, marking an increase of about 25.4%[35] - The total equity attributable to shareholders of the parent company reached ¥2,807,677,866.71, compared to ¥2,533,179,311.76 in the previous year, showing an increase of approximately 10.8%[37] - Total liabilities amounted to approximately ¥1.46 billion, with current liabilities at ¥1.43 billion, reflecting a slight decrease from the previous period[53] - The total equity attributable to shareholders reached approximately ¥2.53 billion, with retained earnings of approximately ¥835.76 million[56] - Non-current liabilities totaled approximately ¥28.18 million, showing a decrease from the previous total of ¥31.08 million[53] Cash Flow - The company reported a net cash flow from operating activities of ¥172,502,510.84, which decreased by 16.34% year-on-year[11] - Cash inflow from operating activities for the first three quarters of 2021 reached ¥1,904,514,853.65, a 29.1% increase compared to ¥1,473,179,908.18 in the same period of 2020[45] - Cash outflow from operating activities totaled ¥1,732,012,342.81, up from ¥1,266,996,687.30 in the previous year, resulting in a net cash flow from operating activities of ¥172,502,510.84, down 16.3% from ¥206,183,220.88[45] - Cash inflow from investment activities was ¥1,469,725,924.07, a decrease of 21.7% from ¥1,876,605,596.81 in the prior year[48] - Net cash flow from investment activities was -¥478,586,250.24, compared to a positive cash flow of ¥294,010,559.56 in the same period last year[48] - Cash inflow from financing activities was ¥6,968,650.00, significantly lower than ¥87,405,600.00 in the previous year[48] - Net cash flow from financing activities was -¥110,918,246.03, compared to -¥24,755,210.69 in the same period of 2020[48] - The total cash and cash equivalents at the end of the period stood at ¥681,538,452.73, down from ¥1,033,243,102.44 at the end of the previous year[48] Shareholder Information - The company has a total of 8,519 common shareholders as of the end of the reporting period[18] - The largest shareholder, Guomao Reducer Group Co., Ltd., holds 50.38% of the shares, totaling 238,400,000 shares[18] - The total number of shares increased from 472,477,400 to 473,232,400 following the completion of the restricted stock grant[26] Research and Development - Research and development expenses increased to ¥81,814,225.76 in Q3 2021 from ¥56,858,331.83 in Q3 2020, indicating a rise of approximately 43.9%[40] Future Outlook - The company expects continued growth driven by strong economic recovery and effective cost control measures[17] - The company plans to enhance its market expansion strategies and invest in new product development to drive future growth[49] - Future outlook remains cautiously optimistic, with a focus on maintaining equity levels and managing liabilities effectively[56] Other Information - The company completed the grant of 755,000 restricted stock units to 37 eligible participants as part of its 2020 incentive plan[26] - The company has implemented new leasing standards effective from January 1, 2021, impacting financial reporting[56] - The company has not disclosed any new product launches or technological advancements in this report[55]

Financial Performance - The company's operating revenue for the first half of 2021 reached ¥1,481,418,549.95, representing a 49.32% increase compared to ¥992,118,486.27 in the same period last year[22]. - The net profit attributable to shareholders of the listed company was ¥208,091,427.18, up 37.28% from ¥151,578,456.45 in the previous year[22]. - The net profit after deducting non-recurring gains and losses was ¥191,012,763.40, reflecting a 43.97% increase from ¥132,671,749.83 year-on-year[22]. - Basic earnings per share for the first half of 2021 were ¥0.45, a 36.36% increase from ¥0.33 in the same period last year[25]. - The diluted earnings per share also stood at ¥0.45, reflecting a 36.36% increase compared to ¥0.33 in the previous year[25]. - The weighted average return on net assets increased by 1.29 percentage points to 7.84% from 6.55% year-on-year[25]. - The company reported a net profit margin improvement, with net profit for the first half of 2021 expected to reflect the increased revenue and controlled costs[154]. - The total profit for the first half of 2021 was ¥238,267,821.99, compared to ¥175,248,313.74 in the first half of 2020, reflecting a significant growth[158]. Cash Flow and Assets - The net cash flow from operating activities decreased by 13.87% to ¥129,576,096.35 from ¥150,436,000.23 in the same period last year[22]. - The company's cash flow from operating activities decreased by 13.87% to ¥129,576,096.35 from ¥150,436,000.23[47]. - The total cash inflow from operating activities for the first half of 2021 was approximately CNY 1,292,838,474.37, an increase from CNY 994,767,030.09 in the same period of 2020, representing a growth of about 30%[167]. - The ending balance of cash and cash equivalents as of June 30, 2021, was CNY 1,317,814,796.22, up from CNY 771,907,439.93 at the end of June 2020, representing an increase of approximately 71%[172]. - The company's total assets increased to CNY 2,662,589,082.32, reflecting growth in overall financial position[187]. - The company's non-current assets totaled CNY 1,388,616,123.00, up from CNY 1,075,120,371.01, reflecting a growth of 29.1%[143]. - Total assets reached CNY 4,434,666,687.65, representing an increase of 10.8% compared to CNY 4,003,006,707.15 at the end of 2020[145]. Investments and R&D - Research and development expenses rose by 54.34% to ¥52,096,042.54 from ¥33,754,683.80, reflecting the company's increased investment in R&D[47]. - The company has been recognized as a high-tech enterprise and has obtained 28 authorized patents in the first half of 2021, including 5 invention patents[40]. - The company introduced a new high-torque gearbox series with a torque increase of over 20% compared to the previous model, enhancing product competitiveness[44]. - The company has made significant progress in lean production initiatives, with 69 improvement projects rewarded during the reporting period[44]. Market Position and Demand - The company is positioned as a leading player in the domestic gear reducer market, benefiting from industry consolidation and increased market share[37]. - The company has seen a significant increase in demand for gear reducers due to high market activity in sectors like new energy and environmental protection, contributing to sales growth[37]. - The manufacturing investment in China grew by 19.2% year-on-year in the first half of 2021, indicating a positive trend for the gear reducer market[37]. - The company has a stable network of 78 A-class distributors, covering most provinces in China, enhancing market penetration and customer service responsiveness[38]. Risks and Compliance - The company did not report any significant risks that could materially affect its operations during the reporting period[10]. - The company faces risks from macroeconomic fluctuations, raw material price volatility, and potential product price fluctuations impacting profitability[59]. - The company has established strict compliance with environmental laws and has not faced any administrative penalties for environmental issues during the reporting period[71]. - The company has implemented a comprehensive environmental management plan based on the ISO14001 system, focusing on energy conservation and pollution reduction[72]. Shareholder and Capital Structure - The company reported a total of 6,209.00 million CNY in related party transactions for the first half of 2021, with actual transactions amounting to 3,027.05 million CNY[113]. - The company completed the repurchase and transfer of 70,000 restricted shares, reducing total shares from 472,547,400 to 472,477,400[124]. - The total number of common shareholders at the end of the reporting period was 8,955[125]. - The largest shareholder, Guomao Reducer Group Co., Ltd., held 238,400,000 shares, with no changes during the reporting period[128]. - The company has committed to reducing procurement amounts from Changzhou Guotai Casting Co., Ltd. by no less than 20% year-on-year since April 16, 2018[88].

Financial Performance - The company's operating revenue for 2020 was approximately ¥2.18 billion, an increase of 15.21% compared to ¥1.90 billion in 2019[26]. - Net profit attributable to shareholders was approximately ¥359.13 million, reflecting a growth of 26.56% from ¥283.76 million in the previous year[26]. - The net cash flow from operating activities increased by 37.65% to approximately ¥413.26 million, up from ¥300.22 million in 2019[26]. - The total assets at the end of 2020 reached approximately ¥4.00 billion, a 19.75% increase from ¥3.34 billion at the end of 2019[26]. - Basic earnings per share rose to ¥0.78, marking a 16.42% increase from ¥0.67 in 2019[26]. - The weighted average return on equity decreased to 15.06%, down by 1.55 percentage points from 16.61% in 2019[26]. - The company reported a net profit of approximately ¥122.41 million in Q4 2020, showing a significant increase compared to previous quarters[29]. - The company's operating revenue reached ¥2,184,076,489.85, representing a year-on-year growth of 15.21%[63]. - Net profit attributable to shareholders was ¥359,127,084.55, an increase of 26.56% year-on-year; excluding stock incentive expenses, net profit was ¥372,087,210.02, up 31.13%[63]. - The company reported a significant reduction in sales expenses by 31.57%, amounting to ¥74,850,641.16, due to the implementation of new revenue recognition standards[77]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of 0.25 RMB per share to all shareholders, with no stock bonus or capital reserve conversion[6]. - The company plans to distribute a cash dividend of 2.50 RMB per 10 shares for the year 2020, amounting to a total of 118,136,850 RMB, which represents 32.90% of the net profit attributable to shareholders[150]. - In 2019, the cash dividend was 2.00 RMB per 10 shares, totaling 92,665,480 RMB, which accounted for 32.66% of the net profit attributable to shareholders[153]. Risk Management - The company reported no significant risks that could materially affect its operations during the reporting period[10]. - The company has outlined potential risks in its operations, which are detailed in the section discussing operational conditions[10]. - The company has acknowledged potential risks from macroeconomic fluctuations, trade tensions, and raw material price volatility, which could impact profitability[107]. - The company did not report any significant risks identified by the supervisory board during the reporting period[145]. - The company has not encountered any issues regarding independence or autonomous operational capabilities with its controlling shareholders[145]. Audit and Compliance - The company has received a standard unqualified audit report from its accounting firm, indicating the financial statements are accurate and complete[5]. - The company has a commitment to ensuring the accuracy and completeness of its financial reports, as stated by its management[4]. - The company has confirmed that all board members are able to guarantee the authenticity of the annual report[8]. - The internal control audit report for the year 2020 received a standard unqualified opinion, indicating no significant deficiencies in internal controls[150]. - The company strictly adheres to the Company Law and Securities Law, continuously improving its corporate governance structure[139]. Operational Highlights - The company’s main business involves the research, production, and sales of gear reducers, which are essential components in various industries[38]. - The company has a diverse product line with over 30,000 component categories and has produced hundreds of thousands of product models to meet various customer needs[52]. - The company has established a comprehensive quality management system, enhancing product reliability and stability, which has earned widespread recognition from customers[52]. - The company has implemented lean production methods, improving operational efficiency and product quality[52]. - The company is actively engaged in digital transformation and R&D innovation to optimize its business structure and enhance operational efficiency[54]. Market Expansion and Development - The company plans to continue expanding its market presence and investing in new product development to enhance its competitive edge[38]. - The company is expanding its overseas market presence, particularly in Southeast Asia, with strong sales growth in countries like Indonesia, Malaysia, Vietnam, and Thailand[56]. - The company is considering strategic acquisitions to enhance its market position, with a budget of up to RMB 300 million allocated for this purpose[180]. - The company is focused on attracting high-quality talent to support its strategic needs and enhance its competitive edge in the market[106]. Research and Development - The company is focusing on R&D, with R&D expenses amounting to ¥78,286,470.58, a 17.22% increase from the previous year[63]. - The total R&D expenditure was ¥78,286,470.58, representing 3.58% of the total revenue, with 240 R&D personnel, accounting for 10.71% of the total workforce[78]. - The company has filed for 31 new patents, including 18 invention patents and 13 utility model patents, in the reporting period[81]. - The company emphasizes continuous innovation in technology and product development, focusing on optimizing traditional product designs and expanding the planetary product series to cover more engineering machinery fields[106]. Management and Governance - The total number of shares held by Chairman Xu Guozhong remained unchanged at 32,600,000 shares throughout the reporting period[115]. - General Manager Xu Bin maintained his shareholding at 45,000,000 shares, with no changes during the year[115]. - The company has implemented equity incentive plans for several executives, including Vice General Managers and the Financial Officer, to align interests with shareholders[117]. - The management team has a diverse background, with experience spanning various roles in the company and related industries, enhancing strategic decision-making capabilities[117]. - The company continues to prioritize equity incentives as a strategy to attract and retain key talent, which is crucial for future growth[117]. Employee Welfare and Development - The company has established a comprehensive welfare system, including social insurance, housing provident fund, and paid leave, to attract and retain talent[134]. - The company emphasizes talent development through a training system that includes management training, skills training, and onboarding programs[135]. - The total number of employees in the parent company and major subsidiaries is 2,241, with 1,668 in production, 184 in sales, 240 in technology, 39 in finance, and 110 in administration[133]. Shareholder and Related Party Transactions - The company reported a total of 6,415.00 million RMB in expected related party transactions for 2020, with actual transactions amounting to 3,629.33 million RMB, indicating a significant variance primarily due to market conditions and production schedules[195]. - The company engaged in related party transactions for purchasing castings amounting to 1,511.81 million RMB, slightly below the expected 1,515.00 million RMB[195]. - The company has committed to not illegally occupy the funds and assets of Guomao Co., ensuring fair and reasonable principles in related transactions[168]. Future Commitments and Strategies - The company is committed to ongoing development and innovation in its product offerings to maintain competitive advantage[122]. - The company plans to increase production capacity by approximately 110,000 units of gear reducers by the end of 2021, following the initial production of 110,000 units from the "350,000 units gear reducer project" launched in late 2020[103]. - The company will take measures such as stock repurchase, increasing holdings by major shareholders, or management to stabilize the stock price if necessary[171].

Financial Performance - Operating revenue surged by 93.59% to CNY 642,202,421.19 year-on-year[12] - Net profit attributable to shareholders rose by 145.38% to CNY 79,433,393.79 compared to the same period last year[12] - Basic earnings per share increased by 142.86% to CNY 0.17 per share[12] - The company reported a net profit excluding non-recurring gains and losses of CNY 76,937,211.68, up 157.90% year-on-year[12] - The company's operating revenue for Q1 2021 was RMB 642,202,421.19, representing a 93.59% increase compared to RMB 331,733,999.90 in Q1 2020, primarily due to reduced sales during the pandemic in the previous year[26] - The net profit for Q1 2021 reached RMB 79,643,044.99, a significant increase of 144.58% from RMB 32,562,590.18 in Q1 2020[27] - Total operating revenue for Q1 2021 reached ¥642,202,421.19, a significant increase of 93.5% compared to ¥331,733,999.90 in Q1 2020[50] - The total profit for Q1 2021 was ¥93,144,781.46, significantly higher than ¥37,278,178.11 in Q1 2020, marking a growth of 150.0%[56] Cash Flow - Net cash flow from operating activities improved significantly to CNY 17,807,858.10 from a negative CNY 47,772,234.12 in the previous year[12] - The net cash flow from operating activities improved to RMB 17,807,858.10 in Q1 2021, compared to a negative RMB 47,772,234.12 in Q1 2020, mainly due to increased net profit[29] - Operating cash inflow totaled CNY 584,506,653.65, an increase from CNY 388,649,084.21 year-over-year[60] - Operating cash outflow amounted to CNY 566,698,795.55, compared to CNY 436,421,318.33 in the previous year[60] - Cash flow from financing activities resulted in a net outflow of CNY 21,497,726.05, indicating a decrease in cash reserves[63] Assets and Liabilities - Total assets increased by 4.90% to CNY 4,199,345,965.91 compared to the end of the previous year[12] - Cash and cash equivalents increased by 53.39% to RMB 690,385,714.70 as of March 31, 2021, up from RMB 450,097,270.78 a year earlier, mainly due to accumulated operating cash flow[21] - Accounts receivable increased dramatically by 3,134.61% to RMB 21,210,065.11 from RMB 655,721.80, attributed to the establishment of a subsidiary in August 2020[21] - Inventory rose by 50.95% to RMB 589,989,293.90, driven by rising inventory prices and an increase in orders on hand[23] - The total liabilities increased, with accounts payable rising by 73.40% to RMB 425,260,120.80, reflecting increased inventory purchases[23] - The company's total liabilities reached RMB 1,562,916,527.64, compared to RMB 1,462,663,860.89 at the end of 2020, reflecting an increase of about 6.8%[40] - The company's total equity attributable to shareholders was RMB 2,629,056,252.57, up from RMB 2,533,179,311.76, indicating a growth of approximately 3.8%[40] Shareholder Information - The total number of shareholders reached 9,924 by the end of the reporting period[18] - The largest shareholder, Guomao Reducer Group Co., Ltd., holds 50.45% of the shares[18] Research and Development - Research and development expenses for Q1 2021 were RMB 23,080,538.83, a 104.14% increase from RMB 11,306,175.69 in Q1 2020, reflecting normal project activities and increased investment[26] - Research and development expenses in Q1 2021 amounted to ¥23,080,538.83, an increase of 104.3% from ¥11,306,175.69 in Q1 2020[50] Future Outlook - The company has not disclosed specific future outlook or new product developments in this report[12]

Financial Performance - Net profit attributable to shareholders rose by 21.73% to CNY 236,716,248.46 year-to-date[18]. - Operating revenue for the first nine months increased by 10.14% to CNY 1,568,917,160.43 compared to the same period last year[18]. - Net cash flow from operating activities surged by 271.10% to CNY 206,183,220.88 year-to-date[18]. - Basic and diluted earnings per share increased by 6.25% to CNY 0.51[21]. - Total operating revenue for Q3 2020 reached ¥576.80 million, a 20.1% increase from ¥480.02 million in Q3 2019[55]. - Net profit for Q3 2020 was ¥85.19 million, representing a 15.8% increase compared to ¥73.89 million in Q3 2019[59]. - The total comprehensive income for Q3 2020 was approximately ¥85.28 million, compared to ¥74.43 million in Q3 2019, indicating a growth of 14.9%[66]. - Cash inflow from operating activities for the first three quarters of 2020 was approximately ¥1.47 billion, compared to ¥1.23 billion in the same period of 2019, representing a growth of 19.5%[68]. Assets and Liabilities - Total assets increased by 11.44% to CNY 3,725,309,377.65 compared to the end of the previous year[18]. - The company's current assets totaled CNY 2,644,701,808.90 as of September 30, 2020, compared to CNY 2,548,176,913.53 at the end of 2019, indicating an increase of about 3.8%[39]. - The total liabilities of the company as of September 30, 2020, were CNY 1,318,066,911.57, compared to CNY 1,092,944,185.75 at the end of 2019, which is an increase of around 20.6%[45]. - The company's total liabilities to equity ratio as of September 30, 2020, was approximately 55%[45]. - The total amount of cash and cash equivalents was ¥758,698,020.01, providing liquidity for operational needs[81]. - Total liabilities reached approximately $1.09 billion, with current liabilities totaling around $1.07 billion[83]. Shareholder Information - The total number of shareholders reached 9,832 by the end of the reporting period[24]. - The largest shareholder, Guomao Reducer Group Co., Ltd., holds 50.45% of the shares[24]. - Shareholders' equity rose to ¥2,403.27 million in Q3 2020, compared to ¥2,252.79 million in Q3 2019, marking a 6.7% increase[53]. - The company reported a total equity of ¥2,249,993,167.66, with paid-in capital of ¥463,327,400.00 and retained earnings of ¥605,155,209.15[77]. Cash Flow - The net cash flow from operating activities was CNY 206,183,220.88, a significant increase from CNY 55,560,247.91 in the previous year, representing a growth of approximately 270%[69]. - Cash inflow from investment activities totaled CNY 1,876,605,596.81, compared to CNY 854,355.54 in the same period last year, indicating a substantial increase[69]. - The total cash inflow from financing activities was CNY 87,405,600.00, a decrease from CNY 819,779,561.34 in the previous year[72]. - The ending balance of cash and cash equivalents was CNY 1,033,243,102.44, up from CNY 815,579,495.73 in the previous year, reflecting a growth of approximately 27%[70]. Investments and Expenses - The company reported a significant increase in investment income, reaching ¥25,828,349.23, attributed to higher financial management returns[33]. - Research and development expenses for Q3 2020 amounted to ¥23.10 million, a 12.0% increase from ¥20.62 million in Q3 2019[55]. - The company completed the initial grant of 9.22 million restricted stocks under its 2020 incentive plan, with an expense of ¥3,865,800 allocated for this period[34]. - The company reported a decrease in credit impairment losses to ¥-2.14 million in Q3 2020 from ¥-7.05 million in Q3 2019[59]. Other Financial Metrics - The weighted average return on net assets decreased by 2.57 percentage points to 10.14%[21]. - The gross profit margin for Q3 2020 was approximately 15.4%, compared to 15.0% in Q3 2019[55]. - The company reported a significant increase in fixed assets, which rose to CNY 586,511,250.84 from CNY 422,896,455.37, reflecting an increase of about 38.7%[43].

Financial Performance - The company's operating revenue for the first half of 2020 was ¥992,118,486.27, representing a 5.05% increase compared to ¥944,458,829.23 in the same period last year [20]. - The net profit attributable to shareholders for the first half of 2020 was ¥151,578,456.45, a 25.72% increase from ¥120,568,167.37 in the previous year [20]. - The net cash flow from operating activities was ¥150,436,000.23, a significant recovery from a negative cash flow of -¥73,955,518.84 in the same period last year [20]. - The total assets at the end of the reporting period were ¥3,445,396,110.88, up 3.06% from ¥3,342,937,353.41 at the end of the previous year [20]. - The net assets attributable to shareholders increased to ¥2,311,098,347.57, reflecting a 2.72% growth from ¥2,249,993,167.66 at the end of the previous year [20]. - Basic earnings per share for the first half of 2020 were ¥0.33, a slight increase of 3.13% from ¥0.32 in the same period last year [21]. - The weighted average return on net assets decreased to 6.55%, down 3.28 percentage points from 9.83% in the previous year [21]. - The company reported non-recurring gains and losses totaling 18,906,706.62, with significant contributions from government subsidies and other non-operating income [24]. - The company achieved operating revenue of 992.12 million yuan, a year-on-year increase of 5.05% [41]. - Net profit attributable to shareholders reached 151.58 million yuan, up 25.72% year-on-year [41]. Market and Industry Context - In 2020, the general equipment manufacturing industry in China experienced a revenue decline of 4.8% year-on-year, with a profit decrease of 1.1% [33]. - The company has observed a clear trend towards domestic substitution in the gear reducer market, with local firms improving their technology and product performance [33]. - The company anticipates increased demand for gear reducers due to the rising automation levels across various industries [33]. Business Operations - The company's main business is the research, development, production, and sales of gear reducers, which are essential components in various industries such as environmental protection, construction, and power generation [28]. - The gear reducer products can be categorized into two main types: gear reducers and cycloidal pinwheel reducers, with specific features tailored for different applications [29]. - The company employs a procurement model based on annual forecasts and framework contracts with suppliers, adjusting prices monthly based on raw material market conditions [32]. - The production model is characterized by a combination of in-house production and outsourcing, with a focus on just-in-time assembly based on sales [32]. - The sales model includes both direct sales to end customers and sales through distributors, with all sales being buyout agreements [32]. - The company’s high-power reducers can transmit power up to 5,100 kW, catering to industries such as metallurgy and mining [31]. - The company successfully developed a high-speed planetary reducer for pipe rolling machines, enhancing gear transmission accuracy and lifespan [41]. - The company acquired 51% of the shares in Pan Kaist Automotive Parts (Jiangsu) Co., Ltd. for 15 million yuan, strengthening its upstream supply chain [41]. - The company’s sales network covers most provinces in China, enabling better customer demand exploration and timely service response [37]. - The company has over 30,000 types of components and more than 150,000 product models, enhancing product diversity to meet various customer needs [37]. - The company’s R&D focuses on new equipment and processes to support the production of 350,000 reducers and 1.6 million gear components [41]. - The company’s digital transformation includes the establishment of a smart data center, marking a step towards intelligent manufacturing [41]. Financial Health and Risks - The company reported a significant decrease in trading financial assets, down 54.55% to ¥250,000,000.00 from ¥550,000,000.00 year-over-year [46]. - Research and development expenses were stable at ¥33,754,683.80, reflecting a 4.19% increase from ¥32,396,835.84 in the previous year [45]. - The company’s long-term equity investment increased to ¥25,718,687.27, primarily due to investments made in the second half of 2019 [49]. - The company’s goodwill increased to ¥8,085,170.40, resulting from the acquisition of a 51% stake in another company [49]. - The net profit margin improved, leading to an increase in retained earnings to ¥666,287,122.96, a 41.69% increase from ¥470,252,260.54 last year [49]. - The company anticipates a potential net profit loss or significant fluctuation compared to the same period last year by the end of the reporting period [57]. - The company faces risks from macroeconomic fluctuations, particularly due to the impact of COVID-19 on economic growth, which may affect profitability [57]. - The main raw materials for the company's products include castings, forgings, motors, and bearings, with price fluctuations in these materials potentially impacting production costs and profit margins [57]. - The company has 77 A-class distributors, which are crucial to its sales network, and any issues with these distributors could negatively affect sales performance [57]. Shareholder and Stock Management - The company has not proposed any profit distribution or capital reserve transfer plans for the reporting period [62]. - The company has committed to a lock-up period of 36 months from the date of its initial public offering (IPO) for certain shareholders, during which they cannot transfer or manage their shares [68]. - If the company's stock price falls below the IPO price for 20 consecutive trading days within the first 6 months post-IPO, the lock-up period will automatically extend by an additional 6 months [68]. - Shareholders are restricted to transferring no more than 25% of their shares annually during their tenure as directors or senior management, and cannot transfer shares within 6 months after leaving their positions [68]. - The company will ensure that any share reductions after the lock-up period will not be below the adjusted IPO price, considering any dividends or stock splits [68]. - The commitment period for certain shareholders is set at 12 months from the IPO date, during which they cannot transfer their shares [71]. - The company will take corrective actions if any shareholder violates the lock-up commitments, including compensating investors for direct losses [68]. - The company has established a framework for compliance with regulatory requirements regarding share transfers and management [71]. - Shareholders must announce their intention to reduce holdings three trading days in advance, ensuring compliance with the IPO price [68]. - The company has outlined specific obligations for shareholders who breach their commitments, including legal repercussions and potential corrective measures [68]. - The lock-up commitments are designed to stabilize the stock price post-IPO and protect investor interests [71]. Compliance and Governance - The company appointed Lixin Certified Public Accountants as the financial and internal control audit institution for the year 2020 [92]. - There were no significant lawsuits or arbitration matters during the reporting period [93]. - The company strictly complied with environmental protection laws and regulations, with no violations or pollution incidents reported during the period [100]. - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance, ensuring compliance and accuracy [179]. - The company has maintained its ability to continue as a going concern for at least 12 months from the reporting date [178]. Accounting Policies - The company implemented a new revenue recognition standard starting January 1, 2020, which reclassified certain prepayments to contract liabilities [101]. - The accounting treatment for business combinations under common control measures the acquired assets and liabilities at their book value on the merger date, adjusting the capital reserve for any excess of the net asset book value over the consideration paid [185]. - For business combinations not under common control, the acquirer measures the assets and liabilities at fair value on the acquisition date, with any excess of the acquisition cost over the fair value of identifiable net assets recognized as goodwill [185]. - The scope of consolidated financial statements is determined based on control, including the company and all subsidiaries, reflecting the overall financial position, operating results, and cash flows of the group [186]. - Foreign currency transactions are recorded at the spot exchange rate on the transaction date, with monetary items translated at the exchange rate on the balance sheet date, and any resulting exchange differences recognized in the current period's profit or loss [191]. - Financial instruments are classified at initial recognition based on the company's management model and cash flow characteristics, including those measured at amortized cost and those measured at fair value with changes recognized in profit or loss or other comprehensive income [192].

Financial Performance - The company's operating revenue for 2019 was CNY 1,895,725,969.13, representing a 7.31% increase from CNY 1,766,631,836.73 in 2018[24]. - The net profit attributable to shareholders for 2019 was CNY 283,759,082.76, a 30.13% increase compared to CNY 218,051,535.35 in 2018[24]. - The net profit after deducting non-recurring gains and losses was CNY 263,554,179.60, reflecting a 26.32% increase from CNY 208,633,280.49 in 2018[24]. - The net cash flow from operating activities was CNY 300,220,899.91, up 10.34% from CNY 272,089,742.96 in 2018[24]. - The net assets attributable to shareholders at the end of 2019 were CNY 2,249,993,167.66, a 92.97% increase from CNY 1,165,961,256.38 at the end of 2018[24]. - Total assets at the end of 2019 reached CNY 3,342,937,353.41, marking a 53.71% increase from CNY 2,174,893,498.65 at the end of 2018[24]. - Basic earnings per share (EPS) for 2019 was CNY 0.67, reflecting a 15.52% increase from CNY 0.58 in 2018[26]. - The weighted average return on equity (ROE) decreased by 4.02 percentage points to 16.61% in 2019[26]. - The company reported a gross margin increase of 2.46 percentage points, contributing to the overall profit growth[26]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.20 per share (before tax) to all shareholders[6]. - In 2019, the company distributed a cash dividend of 92,665,480 RMB, which accounted for 32.66% of the net profit attributable to shareholders[104]. Business Operations and Market Position - The company’s main business focuses on the research, production, and sales of reducers, which are essential components in various industries including environmental protection, construction, and logistics[38]. - The company operates in the general reducer industry, which saw a revenue growth of 3.9% year-on-year in 2019, with total profits increasing by 3.7%[47]. - The company has a diverse product line including gear reducers and cycloidal pinwheel reducers, known for their high efficiency and compact structure[39]. - The company has established a comprehensive quality management system, significantly improving product reliability and stability, which has earned widespread customer recognition[49]. - The company’s brand "Guomao" has gained high recognition in the reducer industry, contributing to customer loyalty and repeat purchases[49]. Research and Development - The total R&D investment amounted to ¥66,784,417.05, representing 3.52% of total revenue[71][74]. - The company obtained 12 patents during the reporting period, including 1 invention patent and 11 utility model patents[54]. - The company completed the development and small-scale production of the JE series high-load extruder gearbox, which competes with similar foreign products[54]. - The company plans to enhance R&D investment in new products and technologies, focusing on key core technologies for gear reducers[96]. Risks and Challenges - The company faces risks from macroeconomic fluctuations, particularly due to the impact of COVID-19 on the gear reducer industry[97]. - The company is exposed to raw material price volatility, which could significantly affect cost control and profit margins[99]. - The company maintains strong pricing power in the market but may face risks of price fluctuations due to increased competition[99]. Governance and Compliance - The company has a commitment to transparency and has received a standard unqualified audit report from its accounting firm[5]. - The company has implemented strict pollutant discharge standards and upgraded equipment technology to control and reduce emissions, receiving recognition as a "Green Factory" in Changzhou[148]. - The company strictly adheres to environmental protection laws and has not faced any administrative penalties for violations during the reporting period[149]. Employee and Management Structure - The company employed 1,839 staff members, addressing employment issues in surrounding communities and actively participating in poverty alleviation efforts[148]. - The company has established a comprehensive and fair remuneration management system to adapt to business development needs[178]. - The company has a structured salary system that includes annual salary, structured wages, piecework/hourly wages, and contractual wages[178]. Future Outlook - The overall market for gear reducers is expected to grow rapidly during the 13th Five-Year Plan period, driven by industrial automation trends and new product demands[91]. - The company is planning to expand its market presence in Southeast Asia, targeting a 20% market share by the end of the fiscal year[172]. - A strategic acquisition is in progress, aimed at enhancing the company's technological capabilities and expanding its product offerings[172].