Financial Performance - The company's operating revenue for 2021 was ¥798,785,373.05, representing a year-over-year increase of 19.21% compared to ¥670,074,039.49 in 2020[22]. - The net profit attributable to shareholders decreased by 4.01% to ¥160,587,579.02 in 2021 from ¥167,290,534.53 in 2020[22]. - The basic earnings per share for 2021 was ¥0.70, down 24.73% from ¥0.93 in 2020[23]. - The weighted average return on equity decreased to 9.52% in 2021, down 10 percentage points from 19.52% in 2020[23]. - The company's net assets attributable to shareholders increased by 100.45% to ¥1,875,761,400.89 at the end of 2021, compared to ¥935,764,708.53 at the end of 2020[23]. - Total assets grew by 108.29% to ¥2,267,354,638.15 in 2021 from ¥1,088,575,996.54 in 2020[23]. - The cash flow from operating activities increased by 28.45% to ¥191,490,922.83 in 2021, compared to ¥149,081,770.90 in 2020[22]. - The net profit after deducting non-recurring gains and losses was ¥137,108,740.20, a decrease of 15.96% from ¥163,142,972.07 in 2020[22]. - The company reported a total of ¥23,478,838.82 in non-recurring gains for 2021, compared to ¥4,147,562.46 in 2020[28]. - The company achieved operating revenue of 799 million yuan in 2021, an increase of 129 million yuan, representing a year-on-year growth of 19.21%[33]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of RMB 3.34 per 10 shares, totaling approximately RMB 80.16 million to shareholders[6]. - The profit distribution plan for 2021 is subject to approval at the annual shareholders' meeting, with the record date set for June 17, 2021, and the payment date on June 18, 2021[140]. Corporate Governance - The company reported a standard unqualified audit opinion from Tianjian Accounting Firm[5]. - The management has confirmed the authenticity, accuracy, and completeness of the annual report[9]. - The company has maintained a consistent governance structure with all board members present at meetings[9]. - The company has established a comprehensive corporate governance structure to protect shareholder rights and ensure fair information disclosure[156]. - The company emphasizes transparency and timely information disclosure to ensure all shareholders have equal access to information[108]. - The company has implemented strict internal controls to manage insider information and ensure compliance with relevant laws and regulations[108]. Risk Management - The company has described potential risks in the management discussion and analysis section of the report[8]. - The company faces risks from raw material price fluctuations, particularly for castings, pig iron, scrap steel, and other materials, which could negatively impact operating performance if prices rise unexpectedly[102]. - Customer concentration remains high, with the top five customers accounting for a significant portion of revenue, which poses a risk if any major customer reduces orders[103]. - The company is exposed to foreign exchange risks due to a significant portion of overseas revenue being settled in USD, which could lead to exchange losses if the RMB appreciates[102]. Strategic Initiatives - The company established a subsidiary, Zhejiang Mingde, to enhance production capacity in high-precision mechanical components, addressing capacity bottlenecks and expanding production scale[34]. - The company invested in hydraulic components by acquiring a stake in Suzhou Liyuan, aiming to expand its business scope and enhance profitability[36]. - The acquisition of Liyuan Jinhai is expected to improve resource allocation and efficiency, enhancing the company's overall production capacity[37]. - The company is actively expanding its business scope by entering the hydraulic product market and enhancing production capabilities in wind power equipment components[79]. - The company plans to enhance production capacity and efficiency by investing in advanced equipment and expanding its production scale, aiming to lower production costs and improve market competitiveness[94]. Research and Development - The company's R&D expenses increased by 28.50% to 52 million RMB, indicating a strong focus on innovation[52]. - The total R&D expenditure amounted to CNY 52,305,774.36, representing 6.55% of operating revenue, with no capitalized R&D costs[67]. - The company is committed to enhancing its R&D capabilities by attracting and training technical talent, aiming to develop more stable and efficient products to meet complex industry demands[98]. Environmental Responsibility - The company has passed the ISO14001 environmental management system certification, demonstrating its commitment to environmental protection[154]. - The company has constructed pollution control facilities including a bag filter dust collection system, water curtain spraying treatment system, and activated carbon adsorption system[149]. - The company has developed emergency response plans for environmental incidents, which will be submitted for regulatory approval[151]. - The company has a clear strategy for reducing carbon emissions and optimizing production processes to minimize pollutant discharge[154]. Employee and Management Structure - The total number of employees in the parent company is 582, while the main subsidiaries employ 988, resulting in a total of 1,570 employees[134]. - The company has a structured remuneration decision process based on the responsibilities and performance of directors and senior management, which is reviewed by the board and shareholders[123]. - The total remuneration for directors, supervisors, and senior management in 2021 amounted to 6.7541 million yuan, with independent directors receiving a total of 270,000 yuan[123]. - The company has seen a change in senior management, with Li Junwen resigning from the position of Deputy General Manager due to personal reasons[124]. Market Position and Competitive Landscape - The mechanical equipment parts manufacturing industry is experiencing positive growth, with the company positioned to leverage its technological advantages in a competitive market[38]. - Domestic companies are gaining competitive advantages in the casting and machining industry, with fewer firms emerging as leaders in international competition due to improved technology and management practices[91]. - The company has established long-term stable partnerships with major global manufacturers, enhancing its market position[48]. - The company is focused on maintaining good investor relations and enhancing communication channels with investors to keep them informed about business developments[108].

Financial Performance - The company's operating revenue for Q1 2022 was CNY 227,123,100.90, representing a year-on-year increase of 38.24%[5] - The net profit attributable to shareholders for the same period was CNY 37,359,337.98, reflecting a growth of 10.62% compared to the previous year[5] - The net profit after deducting non-recurring gains and losses was CNY 35,182,532.91, which is an increase of 12.26% year-on-year[5] - The net profit for Q1 2022 reached CNY 36,981,376.01, representing a 9.3% increase from CNY 33,774,060.44 in Q1 2021[20] - Total comprehensive income for Q1 2022 was CNY 36,456,209.79, up from CNY 34,765,688.56 in Q1 2021[21] Earnings and Profitability - The basic earnings per share for Q1 2022 was CNY 0.16, which decreased by 5.88% year-on-year[5] - The diluted earnings per share also stood at CNY 0.16, reflecting the same decrease of 5.88%[5] - The weighted average return on equity was 1.97%, down by 0.75 percentage points compared to the previous year[5] - Basic earnings per share for Q1 2022 was CNY 0.16, slightly down from CNY 0.17 in Q1 2021[21] Cash Flow - The net cash flow from operating activities was CNY 37,474,259.46, showing a rise of 13.63% compared to the same period last year[5] - Cash flow from operating activities for Q1 2022 was CNY 37,474,259.46, an increase from CNY 32,978,848.80 in Q1 2021[24] - Cash inflow from investment activities in Q1 2022 totaled CNY 668,958,585.81, significantly higher than CNY 153,482,895.14 in Q1 2021[24] - Total cash flow from investment activities was -$297,445,326.89, with cash outflow of $483,201,956.35 and cash inflow of $185,756,629.46[25] - Cash flow from financing activities showed a net outflow of -$23,495,244.80, with total cash inflow of $100,000,000.00 and total cash outflow of $123,495,244.80[25] Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,275,616,344.85, a slight increase of 0.36% from the end of the previous year[6] - The equity attributable to shareholders increased to CNY 1,913,226,403.71, marking a growth of 2.00% from the previous year[6] - The company's total assets amounted to RMB 2,275,616,344.85, an increase from RMB 2,267,354,638.15 as of December 31, 2021[16] - The company's total liabilities decreased to RMB 353,232,423.42 from RMB 382,057,757.57[16] Inventory and Receivables - The company's inventory increased to RMB 177,473,119.00 from RMB 163,007,346.71[15] - The accounts receivable stood at RMB 262,388,827.86, slightly down from RMB 267,081,482.64[14] Research and Development - Research and development expenses for Q1 2022 were CNY 14,767,077.00, compared to CNY 11,071,397.94 in Q1 2021, indicating a 33.1% increase[19] Tax and Other Comprehensive Income - The company reported a tax expense of CNY 4,489,437.50 for Q1 2022, compared to CNY 3,770,362.83 in Q1 2021[20] - The company experienced a decrease in other comprehensive income, reporting a net amount of CNY -525,166.22 in Q1 2022, down from CNY 991,628.12 in Q1 2021[20] Accounting Standards - The company did not apply the new accounting standards for the current reporting period[26]

Financial Performance - The company's operating revenue for 2021 was ¥798,785,373.05, representing a year-over-year increase of 19.21% compared to ¥670,074,039.49 in 2020[22]. - The net profit attributable to shareholders decreased by 4.01% to ¥160,587,579.02 in 2021 from ¥167,290,534.53 in 2020[22]. - The basic earnings per share for 2021 was ¥0.70, down 24.73% from ¥0.93 in 2020[23]. - The weighted average return on equity decreased to 9.52% in 2021, a decline of 10 percentage points from 19.52% in 2020[23]. - The net cash flow from operating activities increased by 28.45% to ¥191,490,922.83 in 2021, compared to ¥149,081,770.90 in 2020[22]. - The total assets grew by 108.29% to ¥2,267,354,638.15 at the end of 2021, up from ¥1,088,575,996.54 at the end of 2020[22]. - The net assets attributable to shareholders increased by 100.45% to ¥1,875,761,400.89 in 2021 from ¥935,764,708.53 in 2020[22]. - The net profit after deducting non-recurring gains and losses was ¥137,108,740.20, a decrease of 15.96% from ¥163,142,972.07 in 2020[22]. - The company reported a non-recurring gain of ¥23,478,838.82 in 2021, compared to ¥4,147,562.46 in 2020[28]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of RMB 3.34 per 10 shares, totaling approximately RMB 80.16 million to shareholders[6]. - The profit distribution plan for 2021 is subject to approval at the annual shareholders' meeting, with the record date set for June 17, 2021, and the payment date on June 18, 2021[140]. - The total remuneration for the chairman was 1.27 million yuan, while the vice chairman received 736,600 yuan, indicating a structured compensation framework for executives[114]. - Total remuneration for directors, supervisors, and senior management in 2021 amounted to 6.7541 million yuan, with independent directors receiving a total of 270,000 yuan in allowances[123]. Corporate Governance - The company has established a comprehensive corporate governance structure, including a board of directors and various committees to ensure effective decision-making and oversight[106]. - The company emphasizes transparency and timely information disclosure to ensure all shareholders have equal access to information[108]. - The company has maintained a consistent governance structure, with no major discrepancies from regulatory requirements[109]. - The company has not reported any significant changes in the competitive landscape or related party transactions that would affect its independence[109]. - The company has implemented strict internal controls to manage insider information and ensure compliance with relevant laws and regulations[108]. Risk Management - The company has described potential risks in the management discussion and analysis section of the report[8]. - The company faces risks from raw material price fluctuations, particularly for castings, pig iron, scrap steel, and other materials, which could adversely affect operating performance if prices rise unexpectedly[102]. - Customer concentration remains high, with the top five customers accounting for a significant portion of revenue, posing risks if major clients reduce their purchases[103]. Strategic Initiatives - The company established a subsidiary, Zhejiang Mingde, to enhance production capacity in high-precision mechanical components, addressing capacity bottlenecks and expanding production scale[34]. - The company invested in hydraulic components by acquiring a stake in Suzhou Liyuan, aiming to enter the hydraulic product market and enhance profitability[36]. - The company is actively expanding its business scope by entering the hydraulic products market and enhancing production capabilities in wind power equipment components[79]. - The company aims to enhance its production capacity and market share in precision component manufacturing through increased capital investment and collaboration with existing global Fortune 500 clients[94]. Environmental and Social Responsibility - The company has established a dust removal system, water curtain spraying system, and activated carbon adsorption system for air pollution control[149]. - The wastewater treatment includes an emergency water pool system and rainwater pool system, effectively managing wastewater discharge[149]. - The company has passed the ISO14001 environmental management system certification, demonstrating its commitment to environmental protection[154]. - The company has engaged in social responsibility initiatives, including donations to support students from impoverished families[159]. Research and Development - The company's R&D expenses increased by 28.50% to 52 million RMB, indicating a strong focus on innovation[52]. - The total R&D expenditure for the period was CNY 52,305,774.36, accounting for 6.55% of operating revenue, with no capitalized R&D expenditures[67]. - The number of R&D personnel is 150, accounting for 9.55% of the total workforce[68]. - The company emphasizes the importance of technological innovation and plans to enhance its R&D capabilities by attracting and training skilled professionals[98]. Acquisitions and Investments - The company completed the acquisition of 90% of Liyuan Jinhai for 99 million RMB, enhancing its casting capacity and overall efficiency[81]. - The company has committed to compensating for any losses exceeding 10% of the investment amount in Suzhou Liyuan, which corresponds to a 14.74% equity stake held by Haining Hongde[175]. - The company is considering strategic acquisitions to enhance its market position, targeting firms with complementary technologies[117]. Financial Management - The company has not engaged in any cash asset management or entrusted loans during the reporting period[191]. - The company’s cash management includes investments in bank wealth management products totaling CNY 325 million, with a remaining balance of CNY 530 million[190]. - The company has not reported any overdue amounts related to its financial management activities[190]. Employee and Management Structure - The total number of employees in the parent company is 582, while the main subsidiaries employ 988, resulting in a total of 1,570 employees[134]. - The professional composition includes 1,224 production personnel, 30 sales personnel, 162 technical personnel, 29 financial personnel, and 125 administrative personnel[134]. - The company has maintained a stable leadership team with no significant turnover aside from the recent resignation[124].

2021 年第三季度报告 证券代码：605060 证券简称： 联德股份 杭州联德精密机械股份有限公司 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 | 项目 | 本报告期 | 本报告期 比上年同 | | 年初至报告期 末比上年同期 | | --- | --- | --- | --- | --- | | | | | 年初至报告期末 | | | | | 期增减变 | | 增减变动幅度 | | | | 动幅度(%) | | (%) | | 营业收入 | 223,557,232.69 | 29.94 | 588,00 ...

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 364,447,296.54, representing a 22.65% increase compared to CNY 297,138,183.50 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was CNY 80,338,474.49, a 5.67% increase from CNY 76,027,262.72 year-on-year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 6.80%, amounting to CNY 69,224,196.82 compared to CNY 74,272,104.08 in the previous year[20]. - Basic earnings per share decreased by 11.90% to CNY 0.37 compared to the same period last year[21]. - Diluted earnings per share also decreased by 11.90% to CNY 0.37 compared to the same period last year[21]. - The gross profit margin for the first half of 2021 was 36.99%, a decrease of 4.19% year-on-year, primarily due to rising raw material prices and increased operating costs[45]. - The company reported a net profit of $150 million for the first half of 2021, representing a 20% increase compared to the same period last year[83]. - The company reported a net profit of CNY 490,304,750.36 for the first half of the year, compared to CNY 414,277,487.64 in the same period last year, representing a growth of approximately 18.3%[133]. Cash Flow and Assets - The net cash flow from operating activities was CNY 55,260,887.20, down 39.37% from CNY 91,137,853.78 in the same period last year[20]. - Net cash flow from operating activities decreased due to increased cash payments for purchases and taxes[21]. - Cash and cash equivalents increased by 157.01% to 378,391,093.92, accounting for 19.33% of total assets[51]. - Trading financial assets rose by 279.07% to 784,679,250.00, representing 40.09% of total assets[51]. - The company reported cash inflows from investment activities totaling ¥572,045,551.93, compared to ¥399,808,228.09 in the same period last year, marking an increase of approximately 43.2%[120]. - The net cash flow from investment activities was negative at -¥610,412,685.95, worsening from -¥14,744,550.23 in the first half of 2020[120]. - The company raised ¥890,330,000.00 through financing activities, a significant increase compared to ¥20,000,000.00 in the same period of the previous year[120]. - The total assets increased by 79.78%, reaching CNY 1,957,095,618.11 compared to CNY 1,088,575,996.54 at the end of the previous year[20]. Investments and R&D - The company invested 24.11 million RMB in R&D expenses, which is a 33.24% increase compared to 18.09 million RMB in the previous year[48]. - Investment in R&D increased by 25% year-over-year, focusing on innovative technologies and product development[83]. - The company is actively pursuing new product development initiatives to drive future growth and competitiveness in the market[133]. Market Position and Strategy - The company has established itself as a leading manufacturer of precision components for commercial compressors, with a comprehensive manufacturing chain[27]. - The company aims to enhance production capacity in precision component manufacturing and strengthen partnerships with existing high-quality clients[28]. - The company is focusing on high-end and precision manufacturing, providing customized services for various industries including compressors and engineering machinery[29]. - The company has established long-term partnerships with major global clients, including Fortune 500 companies, enhancing its market position and brand reputation[42]. - The company’s sales strategy focuses on maintaining existing customer relationships while actively seeking new clients through exhibitions and direct visits[36]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2023[83]. Shareholder and Equity Information - The company has not proposed any profit distribution plan or capital reserve transfer to increase share capital during the reporting period[5]. - The company reported a total share capital increase from 180,000,000 shares to 240,000,000 shares following the issuance of 60,000,000 new shares[92]. - The top shareholder, Hangzhou LianDe Holdings, holds 80,863,200 shares, representing 33.69% of total shares[96]. - Major shareholders are required to notify the company in writing of any intended share reductions at least 3 trading days in advance[80]. - The company has committed to adjusting the minimum selling price in case of any corporate actions like dividends or stock splits[79]. Compliance and Risk Management - The company has described potential risks in the management discussion and analysis section of the report[6]. - The company faces risks from raw material price fluctuations, trade tensions, and customer concentration, which could impact financial performance[60][61][63]. - The company has complied with environmental regulations and has not faced any penalties during the reporting period[73]. - The company has obtained ISO14001 environmental management system certification and is committed to reducing pollutant emissions[73]. Corporate Governance - The report has not been audited, but the management team has confirmed its accuracy and completeness[7]. - There were no significant changes in the management team during the reporting period[70]. - The company has not engaged in any major related party transactions during the reporting period[89]. - The company has not faced any regulatory penalties or required rectifications during the reporting period[88]. Financial Reporting and Accounting Policies - The financial report is prepared in RMB, with the balance sheet as of June 30, 2021, being a key document[103]. - The company’s financial statements comply with the requirements of enterprise accounting standards, reflecting its financial status and operating results accurately[150]. - Financial assets are classified into three categories upon initial recognition: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in profit or loss[159].

Financial Performance - Operating revenue for the period was CNY 164,291,598.26, reflecting a 25.75% increase from the same period last year[6] - Net profit attributable to shareholders increased by 7.55% to CNY 33,774,060.44 compared to the previous year[6] - The company reported a net profit of ¥32,348,354.85 for Q1 2021, reflecting a significant improvement from the previous year[28] - The net profit for Q1 2021 reached CNY 33,774,060.44, compared to CNY 31,404,387.41 in the same period last year, reflecting an increase of 7.5%[30] - The total profit for Q1 2021 was CNY 37,544,423.27, an increase from CNY 36,079,871.90 in Q1 2020, reflecting a growth of 4.1%[30] - The total comprehensive income for Q1 2021 was CNY 34,765,688.56, up from CNY 32,893,508.30 in Q1 2020, indicating a growth of 5.7%[30] Assets and Liabilities - Total assets increased by 83.23% to CNY 1,994,600,462.90 compared to the end of the previous year[6] - The company's total assets as of March 31, 2021, amounted to ¥2,047,711,863.87, significantly higher than ¥1,173,918,764.69 at the end of 2020[25] - The company's total liabilities increased to ¥127,737,390.12 from ¥118,081,783.86, indicating a rise in financial obligations[21] - Total liabilities increased to ¥278,517,870.29 as of March 31, 2021, compared to ¥277,745,219.79 at the end of 2020[25] Shareholder Information - Net assets attributable to shareholders rose by 95.75% to CNY 1,831,759,941.52 year-on-year[6] - The total number of shareholders reached 37,826 by the end of the reporting period[12] - The largest shareholder, Hangzhou Linde Holdings Co., Ltd., holds 33.69% of the shares[12] Cash Flow - Net cash flow from operating activities was CNY 32,978,848.80, up 77.80% year-on-year[6] - Cash and cash equivalents increased by 243.46% to ¥505,658,200.78 from ¥147,226,397.70 due to the proceeds from the initial public offering[16] - The cash flow from operating activities for Q1 2021 was CNY 32,978,848.80, significantly higher than CNY 18,547,823.16 in Q1 2020, marking an increase of 77.8%[33] - The company received cash inflow from financing activities totaling ¥890,330,000.00, with a net cash flow of ¥875,691,894.70 after outflows[37] - The total cash increase for the period was ¥351,742,792.27, a significant rise from ¥25,549,876.62 in Q1 2020[37] Investment and Expenses - Research and development expenses rose by 31.87% to ¥11,071,397.94 from ¥8,395,521.83, indicating increased investment in innovation[16] - Total operating costs for Q1 2021 were ¥131,943,243.41, up from ¥93,806,757.91 in Q1 2020, reflecting a year-over-year increase of 40.6%[28] - Investment income increased by 161.54% to ¥2,476,895.14 from ¥947,035.01, primarily due to higher returns from financial investments[16] - The cash outflow for purchasing fixed assets and other long-term assets was ¥681,587,452.74, compared to ¥109,617,205.32 in Q1 2020[37] Earnings Per Share - Basic earnings per share remained stable at CNY 0.17[8] - The basic and diluted earnings per share for Q1 2021 remained at CNY 0.17, unchanged from Q1 2020[30] Other Financial Metrics - The weighted average return on equity decreased by 1.23 percentage points to 2.72%[6] - The company reported a total of CNY 2,435,040.22 in non-recurring gains and losses for the period[10] - The company experienced a negative impact of ¥561,129.17 from exchange rate fluctuations on cash and cash equivalents[37]

Financial Performance - The company's operating revenue for 2020 was CNY 670,074,039.49, a decrease of 1.82% compared to CNY 682,498,620.45 in 2019[22]. - The net profit attributable to shareholders for 2020 was CNY 167,290,534.53, down 0.93% from CNY 168,863,496.54 in 2019[22]. - The net profit after deducting non-recurring gains and losses was CNY 163,142,972.07, a slight increase of 0.24% from CNY 162,748,456.85 in 2019[22]. - The net cash flow from operating activities decreased by 21.47% to CNY 149,081,770.90 from CNY 189,851,230.92 in 2019[22]. - The total assets at the end of 2020 were CNY 1,088,575,996.54, representing a 19.73% increase from CNY 909,207,436.97 at the end of 2019[22]. - The net assets attributable to shareholders increased by 20.30% to CNY 935,764,708.53 from CNY 777,888,469.94 in 2019[22]. - Basic earnings per share for 2020 were CNY 0.93, a decrease of 1.06% from CNY 0.94 in 2019[23]. - Diluted earnings per share for 2020 were also CNY 0.93, reflecting the same decrease of 1.06% from 2019[23]. - The gross profit margin for 2020 was 43.21%, a year-on-year decrease of 0.81%, while the operating profit margin increased by 0.86% to 28.72%[55]. - The company's cash flow from operating activities for 2020 was 149.08 million RMB, indicating a decrease of 21.47% compared to the previous year[58]. Revenue and Sales - Total revenue for Q4 2020 reached ¥200,892,001.57, marking a significant increase from ¥130,648,019.13 in Q1 2020[25]. - Net profit attributable to shareholders for Q4 2020 was ¥50,545,122.45, up from ¥31,404,387.41 in Q1 2020, reflecting a strong quarterly growth[25]. - Revenue from domestic operations was 420.68 million RMB, an increase of 2.74% year-on-year, while revenue from overseas operations decreased by 8.63% to 249.35 million RMB[63]. Research and Development - Research and development expenses increased by 12.05% year-on-year, amounting to 40.71 million RMB, reflecting the company's commitment to innovation[58]. - The company has received 4 invention patents and 10 utility model patents during the reporting period, enhancing its core competitiveness[53]. - The number of R&D personnel was 145, accounting for 12.52% of the total workforce[74]. Operational Strategy - The company primarily engages in the R&D, design, production, and sales of high-precision mechanical components and precision cavity molds[33]. - The production model is customized based on orders, with a focus on one-to-one supply for clients[34]. - The company aims to provide one-stop services from casting to precision machining for its products[33]. - The company has established a strict supplier evaluation system to ensure long-term stable cooperation with qualified suppliers[33]. - The pricing strategy is based on a cost-plus model, considering production costs and market conditions[36]. Market Position and Competition - The precision parts manufacturing industry is characterized by limited direct competition, with companies providing tailored services to a few key clients[85]. - Domestic companies are gaining competitive advantages in the casting and machining industry due to improvements in technology and management, positioning themselves favorably in international markets[86]. - The company has a competitive edge in technology, product quality, and efficient management, ensuring it remains at the forefront of the industry[42]. Financial Management and Shareholder Relations - The company plans to distribute a cash dividend of CNY 3.34 per 10 shares, totaling CNY 80,160,000.00[5]. - The company has established a profit distribution decision-making process that considers its development stage, investment needs, and long-term planning, ensuring reasonable profit distribution to shareholders[103]. - The company’s net profit attributable to shareholders for 2020 was RMB 167,290,534.53, with a dividend payout ratio of 47.92%[106]. - The company has committed to not transferring or entrusting its shares for 36 months from the date of its stock listing[109]. Risk Factors - The company faces risks from raw material price fluctuations, trade tensions, and currency exchange rate volatility, which could impact operational performance if not managed effectively[96][97][98]. - The ongoing COVID-19 pandemic presents uncertainties that could affect the company's overall performance in 2021[100]. - The company has a high customer concentration risk, with significant revenue dependence on a few major clients in the commercial air conditioning and compressor sectors[99]. Corporate Governance - The company has established a clear framework for compliance with regulatory requirements regarding share transfers[112]. - The board of directors has established specialized committees to enhance corporate governance and decision-making processes[164]. - The company has no significant deficiencies in internal controls, ensuring compliance with relevant regulations[170]. Employee and Management Structure - The total number of employees in the parent company is 541, and in major subsidiaries, it is 617, resulting in a total of 1,158 employees[158]. - The employee composition includes 881 production personnel, 22 sales personnel, 145 technical personnel, 24 financial personnel, and 86 administrative personnel[158]. - The total pre-tax remuneration for all listed management amounts to CNY 5.92 million[150]. Audit and Compliance - The audit report confirms that the financial statements fairly represent the company's financial position as of December 31, 2020[174]. - The audit procedures included testing the effectiveness of internal controls related to revenue recognition and accounts receivable impairment[177][178]. - The company did not experience any major accounting errors or changes in accounting policies that would impact financial reporting[121].