Financial Performance - The company's operating revenue for the first half of 2022 was ¥8,163,756,459.12, representing a 9.18% increase compared to ¥7,477,613,079.63 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2022 was ¥303,756,732.49, a decrease of 10.41% from ¥339,055,842.74 in the previous year[20]. - The net cash flow from operating activities was -¥2,579,162,811.34, indicating a significant decline compared to -¥937,382,875.81 in the same period last year[20]. - The total assets at the end of the reporting period were ¥11,349,365,249.40, which is a 22.68% increase from ¥9,250,917,889.94 at the end of the previous year[20]. - The net assets attributable to shareholders increased by 7.33% to ¥3,960,668,634.54 from ¥3,690,136,409.71 at the end of the previous year[20]. - Basic earnings per share for the first half of 2022 were ¥0.73, down 14.12% from ¥0.85 in the same period last year[23]. - The diluted earnings per share decreased by 18.82% to ¥0.69 from ¥0.85 in the previous year[23]. - The weighted average return on equity decreased by 3.61 percentage points to 7.92% from 11.53% in the previous year[23]. - The company reported a decrease of 11.99% in net profit after deducting non-recurring gains and losses, amounting to ¥295,273,269.32 compared to ¥335,491,974.39 in the previous year[20]. - Revenue increased by 9.18% year-on-year, primarily due to an increase in sales orders[24]. - Net profit attributable to shareholders decreased by 10.41% year-on-year, mainly due to increased expenses from convertible bonds, stock-based compensation, and higher sales and R&D costs[24]. - Total assets grew by 22.68% compared to the end of the previous year, driven by increased inventory and orders[24]. - Operating cash flow decreased year-on-year, attributed to higher procurement payments and increased tax and bonus payments[24]. - Basic and diluted earnings per share decreased year-on-year, primarily due to an increase in weighted average shares from stock incentives and lower net profit[24]. Operational Highlights - The company has developed over 50,000 product specifications to meet various complex usage requirements[31]. - The company has established a strong sales network through both offline and online channels, enhancing market penetration[37]. - The company focuses on a production model based on "sales-driven production" to ensure timely delivery of orders[34]. - The company aims to become a leading domestic manufacturer of wire and cable, providing one-stop services to users[32]. - The company has accumulated 146 patents and offers over 50,000 product specifications, with high-end specialty products achieving domestic leadership[45]. - The company has established a comprehensive marketing network with over 300 direct distributors, covering thousands of sales terminals[49]. - The company is positioned as the largest wire and cable production and sales enterprise in Shanghai, reflecting significant market influence[44]. - The company emphasizes a pricing model based on copper prices plus target gross margin, adapting to market fluctuations[39]. - The company is focused on digital management upgrades, implementing ERP and cloud platforms for full-process tracking from order to delivery[52]. - The company anticipates explosive growth in the new energy market driven by the national "dual carbon" strategy, presenting significant opportunities for its products[42]. Investment and Financing - The company plans to invest ¥1.8 billion in the Beihai Qifan submarine cable production base project, with a construction period of 4-5 years[66]. - The company's cash and cash equivalents decreased by 57.30% to ¥1,042,656,162.41, primarily due to increased procurement payments[59]. - Short-term borrowings increased by 95.77% to ¥3,685,000,000.00, necessitated by expanded production scale and increased raw material procurement[59]. - The company reported a decrease in financing cash flow by 20.16% to ¥1,115,000,655.01, compared to the previous year due to reduced fundraising activities[56]. - The company plans to issue non-financial corporate debt financing tools totaling up to RMB 50 million[186]. - The company issued 10 million convertible bonds with a total value of RMB 100 million, which began trading on June 17, 2021[186]. - The number of convertible bond holders at the end of the reporting period was 13,882[188]. - The total amount of the convertible bond "Qifan Convertible Bond" before changes was CNY 999,673,000, which decreased to CNY 999,470,000 after a conversion of CNY 203,000[190]. - The total conversion amount during the reporting period was CNY 203,000, resulting in a conversion of 10,094 shares, which is 0.0063% of the total shares before conversion[191]. - The remaining unconverted amount of the convertible bond is CNY 999,470,000, which constitutes 99.9470% of the total issued convertible bonds[191]. - The credit rating for the company and the "Qifan Convertible Bond" remains at AA- with a stable outlook, unchanged from the previous rating[194]. - The coupon rates for the convertible bond range from 0.40% in the first year to 3.00% in the sixth year[188]. Risks and Challenges - The company faced risks from macroeconomic fluctuations that could lead to decreased demand for cable products, impacting overall performance[73]. - The company highlighted the significant impact of raw material price fluctuations, particularly copper, on operating costs and profitability[74]. - The competitive landscape in the cable industry is intensifying, with numerous players and varying production quality, posing a risk to the company's market position[75]. - Rapid expansion of the company's operations may lead to management challenges, increasing the risk of operational mismanagement[76]. - The company has established a comprehensive quality control system but still faces risks related to product quality that could affect brand reputation and customer retention[79]. - Ongoing global pandemic challenges continue to pose risks to the company's operations and require robust health and safety measures[80]. Shareholder and Governance - The company has not proposed any profit distribution plan or capital reserve transfer to increase share capital for this reporting period[6]. - The company did not distribute profits or increase capital reserves during the reporting period[87]. - The company’s major shareholders have committed to a 36-month lock-up period for their shares post-IPO[99]. - Shareholders are restricted from transferring more than 25% of their shares annually during their tenure as directors or executives[101]. - The company has not disclosed any new employee stock ownership plans or incentive measures[88]. - The company has not made any changes to its equity incentive plans or employee stock ownership plans[88]. - The company has not disclosed any new strategies related to market expansion or mergers and acquisitions[88]. - The company commits to ensuring the accuracy and completeness of its prospectus, bearing legal responsibility for any false statements[123]. - In case of significant omissions in the prospectus, the company will refund investors with interest on their subscription amounts[124]. - The controlling shareholders have made commitments regarding the fulfillment of stabilization measures and their legal responsibilities[125]. - The company will enhance the market development and promotion of specialty cable products to increase revenue share and improve profitability[144]. - The company plans to improve production processes and operational efficiency through better information management across procurement, production, inventory, and sales[145]. - The company commits to increasing R&D investment and strengthening talent development to enhance product competitiveness and profitability[144]. - The company aims to control funding costs and optimize budget management to reduce overall expenses[145]. - The company has established commitments to avoid false statements and misleading information in its prospectus, ensuring legal accountability[128]. - The company’s controlling shareholders have pledged to avoid any business activities that may compete with the company’s operations[134]. - The company will ensure compliance with social insurance and housing fund regulations to avoid administrative penalties[142]. - The company has committed to measures to mitigate the dilution of immediate returns from its financing activities[143]. - The company will enhance internal controls to effectively manage risks during operations[145]. - The company will focus on maintaining independence from its controlling shareholders to protect its interests[139]. - The company will actively allocate resources to complete preliminary preparations for fundraising investment projects before the funds are in place, and will use its own funds for initial construction[146]. - The company plans to establish a more scientific, sustainable, and stable shareholder return mechanism, considering profitability, operational development plans, and cash flow[149]. - The company has committed to ensuring that all board members and senior management will not engage in actions that harm the company's interests or unfairly benefit others[151]. - The company has reported a related party transaction amounting to 15.19 million yuan as of June 30, 2022, with an expected total transaction amount of 50 million yuan for the year[161]. - The company will open a special account for fundraising to ensure that funds are used specifically for their intended purpose and will be subject to supervision by relevant authorities[148]. - The company has no major litigation or arbitration matters during the reporting period, indicating a stable legal standing[160]. - The company emphasizes the importance of protecting the interests of small and medium shareholders in its profit distribution policy[149]. - The company has committed to not providing loans or financial assistance to incentive plan participants for acquiring rights under the incentive plan[157]. - The company will accelerate the construction of fundraising investment projects after the funds are in place to achieve expected benefits and increase shareholder returns in future years[146]. - The company has a good integrity status during the reporting period, with no significant debts or regulatory penalties reported[160]. - The total guarantee amount at the end of the reporting period (excluding guarantees to subsidiaries) is 0 RMB[167]. - The total guarantee amount to subsidiaries during the reporting period is 878,000,000 RMB, with a balance of 508,000,000 RMB at the end of the period[167]. - The total guarantee amount (including guarantees to subsidiaries) is 508,000,000 RMB, accounting for 12.72% of the company's net assets[167]. - There are no guarantees provided for shareholders, actual controllers, or their related parties[167]. - The total number of ordinary shareholders at the end of the reporting period is 18,383[175]. - The total number of shares before the change is 418,213,213, with an increase of 10,094 shares after the change[172]. - The largest shareholder, Zhou Gonghua, holds 91,008,200 shares, accounting for 21.76% of the total shares[177]. - Zhou Guihua and Zhou Guixing each hold 84,996,400 and 84,991,400 shares, representing 20.32% of the total shares[177]. - The total number of shares held by the top ten shareholders accounts for a significant portion of the company's equity[177]. - The company has issued 10,094 new shares during the reporting period[172]. - Major shareholders include Zhou Gonghua with 91,008,200 shares and Zhou Guihua with 84,996,400 shares, both subject to a 36-month lock-up period[182]. - Senior management, including Han Baozhong and Chen Zhiyuan, increased their holdings by 76,700 and 80,000 shares respectively during the reporting period[183]. - The company has not experienced any changes in its controlling shareholder or actual controller during the reporting period[185]. - The company has not granted any stock incentives to directors, supervisors, or senior management during the reporting period[185]. - The total assets at the beginning of the reporting period were CNY 9.251 billion, and at the end, they increased to CNY 11.349 billion, reflecting a growth of approximately 22.7%[194]. - The total liabilities increased from CNY 5.525 billion to CNY 7.355 billion, resulting in a debt ratio increase from 59.72% to 64.80%[194]. - The top ten holders of the convertible bonds hold a total of CNY 258,420,000, accounting for 2.59% of the total[188]. - The latest adjusted conversion price for the "Qifan Convertible Bond" is CNY 19.86[193].

2022 年第一季度报告 单位：元 币种：人民币 证券代码：605222 证券简称：起帆电缆 上海起帆电缆股份有限公司 2022 年第一季度报告 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、准确性和完整性依法承担法律责任。 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。 第一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 | --- | --- | --- | |-----------------------------------------------|-------------------|-------------------------------------| | 项目 | 本报告期 | 本报告期比上年同期增减 变动幅度 (%) | | 营业收入 | 3,692,878,737. ...

Financial Performance - The company's operating revenue for 2021 reached ¥18,877,541,660.47, representing a year-on-year increase of 93.90%[31]. - Net profit attributable to shareholders was ¥683,876,549.64, up 66.66% compared to the previous year[31]. - The net profit after deducting non-recurring gains and losses was ¥636,771,357.08, reflecting a growth of 68.86% year-on-year[31]. - Basic earnings per share rose to ¥1.71, a 55.45% increase from the previous year[30]. - The weighted average return on equity was 21.13%, an increase of 1.76 percentage points compared to 2020[30]. - The company achieved operating revenue of 1,887,754.17 million yuan, a year-on-year increase of 93.90%[45]. - The net profit attributable to shareholders reached 68,387.65 million yuan, reflecting a growth of 66.66% compared to the previous year[45]. - Total assets amounted to 925,091.79 million yuan, representing a 60.02% increase year-on-year[45]. - The company reported a significant improvement in accounts receivable turnover, contributing to better cash recovery[31]. - The net cash flow from operating activities improved significantly, with a net amount of ¥87,586,956.50, compared to a negative cash flow in 2020[31]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 0.245 RMB per share, totaling approximately 102.46 million RMB, which represents 14.98% of the net profit attributable to shareholders for 2021[6]. - The company has a three-year shareholder return plan from 2020 to 2023[6]. Market and Industry Outlook - The management has outlined potential industry and market risks in the report, emphasizing the importance of investor awareness regarding investment risks[10]. - The company plans to continue expanding its market presence and optimizing its production and inventory management strategies[31]. - The company is expanding into new markets, including electric vehicle charging, photovoltaic power, and 5G communications, to develop new profit growth points[50]. - The market is expected to continue to concentrate on high-quality brands and innovative enterprises, leading to a dominance of leading companies in the industry[60]. Research and Development - Research and development expenses for the year were 5,345.64 million yuan, up 47.70% from the previous year[48]. - The company holds 139 patents and has 3 pending patent applications as of December 31, 2021[48]. - The company aims to enhance its competitive advantages in quality control, product R&D, and market responsiveness, focusing on high-end special cable products for structural upgrades[150]. - The company emphasizes technological innovation and aims to improve production efficiency and product quality through collaboration with academic institutions[154]. - Research and development efforts are being intensified, with a budget increase of 30% aimed at developing new technologies[197]. Corporate Governance - The company has received a standard unqualified audit report from Lixin Certified Public Accountants[5]. - The company has not violated decision-making procedures for external guarantees[11]. - The company established a long-term mechanism to prevent the controlling shareholders from occupying the company's assets and infringing on its interests[170]. - The company has implemented an investor relations management system to enhance communication with investors and address their inquiries effectively[176]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate reporting of its governance and operational status[175]. - The board of directors consists of 9 members, including 3 independent directors, and held 15 meetings in 2021 to ensure effective governance[173]. Social Responsibility and Recognition - The company actively engages in social responsibility initiatives, including disaster relief efforts and educational partnerships[53]. - The company has been recognized with multiple awards, including "Top 20 Most Competitive Enterprises in China's Cable Industry" and "Green Factory Demonstration"[44]. Financial Management - The company has improved its cash flow significantly, with net cash flow from operating activities turning positive after a previous deficit[101]. - The company's cash and cash equivalents increased by 241.91% to 2,441,794,104.85 CNY, reflecting good accounts receivable recovery and effective inventory management[124]. - The total procurement amount from the top five suppliers was 651,538,590.00 CNY, accounting for 33.17% of the annual total procurement[116]. - The company maintained stable financing activities with little change in bank borrowings, indicating a steady financing scale[104]. Strategic Acquisitions and Investments - The company completed the acquisition of a 64.9991% stake in Shanghai Nanyang-Tokikura Cable Co., Ltd. for ¥63.78 million[142]. - The company plans to invest up to ¥500 million in the construction of a special cable production and R&D base[144]. - Strategic acquisitions are planned to enhance product offerings, with an estimated investment of 500 million RMB allocated for this purpose[196]. Operational Efficiency - The company aims to improve operational efficiency, targeting a 5% reduction in costs through process optimization[198]. - The company has established a digital management platform to improve operational efficiency and decision-making processes[49]. Employee and Executive Shareholding - The total number of shares held by the company's executives increased from 261,151,400 to 262,128,600, a net increase of 977,200 shares[191]. - The company has implemented equity incentives for several executives, resulting in significant share acquisitions[188].

Financial Performance - The company's operating revenue for Q3 2021 was ¥5,455,403,190.30, representing a year-on-year increase of 93.49%[7] - The net profit attributable to shareholders for Q3 2021 was ¥169,432,147.23, an increase of 7.21% compared to the same period last year[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses for Q3 2021 was ¥169,903,054.22, reflecting an 11.82% increase year-on-year[7] - Total operating revenue for Q3 2021 reached ¥12,933,016,269.93, a significant increase from ¥6,359,059,827.05 in the same period of 2020, representing a growth of approximately 103%[37] - Net profit for Q3 2021 was ¥508,487,989.97, up from ¥307,647,731.35 in Q3 2020, reflecting a growth of approximately 65%[41] - The total comprehensive income attributable to the parent company was approximately CNY 508.49 million, compared to CNY 307.65 million in the previous year, representing a year-over-year increase of 65.3%[43] Assets and Liabilities - The total assets at the end of Q3 2021 reached ¥9,623,779,411.01, marking a 66.47% increase from the end of the previous year[10] - The total assets as of Q3 2021 amounted to ¥9,623,779,411.01, compared to ¥5,781,149,879.88 in Q3 2020, marking an increase of around 66%[35] - Current liabilities totaled ¥4,982,123,136.06 in Q3 2021, up from ¥2,967,170,984.42 in Q3 2020, which is an increase of approximately 68%[35] - Non-current liabilities reached ¥1,005,125,780.85 in Q3 2021, compared to ¥43,463,928.77 in Q3 2020, showing a substantial increase[35] - Total liabilities were RMB 3,010,634,913.19, a decrease from RMB 3,117,480,459.05[53] Shareholder Information - The total number of common shareholders at the end of the reporting period is 18,409, with the top ten shareholders holding significant stakes[19] - The largest shareholder, Zhou Gonghua, holds 91,008,200 shares, representing 21.76% of the total shares[19] - The company has not disclosed any other significant relationships among the top shareholders beyond the known agreements among certain individuals[22] Cash Flow and Liquidity - The net cash flow from operating activities for the year-to-date was -¥1,841,396,928.53, indicating a significant cash outflow[10] - Cash inflow from operating activities totaled CNY 11.45 billion, up from CNY 5.44 billion, indicating a growth of 109.3%[46] - Cash outflow for purchasing goods and services was CNY 12.04 billion, compared to CNY 6.59 billion, an increase of 82.5%[46] - The company reported a net increase in cash and cash equivalents of negative CNY 326.00 million, compared to negative CNY 224.29 million in the previous year[48] - The company's cash and cash equivalents as of September 30, 2021, amount to ¥524,594,258.91, down from ¥714,171,376.19 at the end of 2020, indicating a decrease of approximately 26.5%[28] Operational Strategy and Future Plans - The company attributed the slower growth in net profit to increased interest expenses from convertible bonds and higher provisions for credit impairment due to increased accounts receivable[10] - The company plans to continue innovating and participating in large infrastructure projects to drive future growth[16] - The company plans to issue non-financial corporate debt financing tools in the interbank bond market, with a total amount not exceeding ¥50 million[27] - The company plans to expand its market presence and invest in new technologies to drive future growth[35] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[44] Research and Development - Research and development expenses for Q3 2021 were ¥39,183,049.44, compared to ¥23,465,314.81 in Q3 2020, indicating a growth of approximately 67%[37] Equity and Capital Structure - The total equity attributable to shareholders reached ¥3,599,803,824.21 in Q3 2021, up from ¥2,770,514,966.69 in Q3 2020, reflecting an increase of about 30%[35] - A total of 1,831,900 restricted stock options were granted to 361 incentive targets at a price of ¥10.23 per share, increasing the registered capital from ¥400,580,000 to ¥418,197,000[24] - The company recognized a right-of-use asset and lease liability of RMB 106,845,545.86 due to the new leasing standards[52]

Financial Performance - The company's operating revenue for the first half of 2021 reached ¥7,477,613,079.63, representing a year-on-year increase of 111.26%[21] - Net profit attributable to shareholders for the same period was ¥339,055,842.74, up 126.62% year-on-year, while the net profit after deducting non-recurring gains and losses increased by 159.08%[21] - The company's net assets attributable to shareholders at the end of the reporting period were ¥3,237,447,029.12, a 16.85% increase compared to the end of the previous year[21] - Total assets increased by 46.11% year-on-year, amounting to ¥8,446,992,099.91 at the end of the reporting period[21] - Basic earnings per share for the first half of 2021 were ¥0.85, reflecting a 97.67% increase compared to the same period last year[21] Revenue Growth Drivers - The company completed the first batch of orders for submarine cables in the first half of the year, contributing to the rapid growth in operating revenue[24] - The company actively participated in large infrastructure project tenders, resulting in more orders and driving revenue growth[24] - The company emphasized product innovation and development to keep pace with industry trends, which significantly boosted sales[24] Cash Flow and Working Capital - The decline in net cash flow from operating activities was attributed to increased procurement payments to meet rising order demands, leading to higher working capital requirements[24] - The company's cash flow from operating activities showed a net outflow of approximately ¥937.38 million, compared to a net outflow of ¥716.32 million in the previous year[78] - The inventory level rose to approximately ¥2.93 billion, accounting for 34.64% of total assets, driven by increased sales orders[82] Market Position and Strategy - The company is recognized as one of the largest manufacturers and sellers of electrical wires and cables in Shanghai and nationwide[29] - The company’s products are widely used in multiple sectors, including power, construction, and new energy[29] - The company has established a comprehensive sales network through both offline and online channels, enhancing its market penetration[36] - The company aims to provide one-stop services and maintain a competitive edge through high quality and efficient service[32] - The company is focused on expanding its market share and brand value through strategic partnerships and project participation[36] Industry Context - The government has set a GDP growth target of no less than 6% for 2021, which may benefit the company’s industry[39] - In the first half of the year, China's GDP reached 53.2167 trillion yuan, with a year-on-year growth of 12.7%[40] - The total electricity consumption in China for the first half of the year was 3.9339 trillion kWh, representing a year-on-year increase of 16.2%[41] - The mechanical industry achieved a revenue of 10.08 trillion yuan in the first five months of 2021, with a year-on-year growth of 35.1%[50] Research and Development - Research and development expenses amounted to 2,445.96 million yuan, reflecting a growth of 145.74% compared to the previous year[69] - The company has a total of 135 patents as of June 30, 2021, indicating a strong focus on innovation[60] - The company has developed over 50,000 product specifications, meeting various complex environmental requirements[31] Risks and Challenges - The company faces risks from macroeconomic fluctuations that could lead to decreased demand for cable products[103] - Raw material price volatility, particularly in copper, poses a significant risk to operating costs and profitability[103] - The competitive landscape in the cable industry is intensifying, with many small players affecting market dynamics[104] - Rapid expansion may lead to management challenges, impacting strategic planning and operational control[105] Environmental Compliance - The company is not classified as a key pollutant discharge unit by environmental protection authorities[115] - The company strictly adheres to environmental laws and regulations, ensuring compliance in pollutant discharge[118] - There are no reported administrative penalties related to environmental issues during the reporting period[116] Shareholder Commitments - Major shareholders include Zhou Gonghua (22.72%), Zhou Guihua (21.22%), and Zhou Guixing (21.22%) with no changes in their holdings during the reporting period[192] - The company has commitments from major shareholders to not transfer shares for 36 months post-listing[121] - Shareholders are restricted to a maximum of 25% share transfer annually while serving as directors or executives[123] Corporate Governance - The annual shareholders' meeting approved multiple resolutions, including the financial budget for 2021 and the appointment of the auditing firm[110] - The company has maintained a good integrity status, with no overdue debts or regulatory penalties reported during the period[181] - There were no significant lawsuits or arbitration matters during the reporting period, indicating a stable legal environment for the company[181]

Financial Performance - Operating revenue surged by 112.73% to CNY 2,852,984,083.95 year-on-year[11] - Net profit attributable to shareholders rose by 132.30% to CNY 142,103,325.53 compared to the same period last year[11] - Basic earnings per share increased by 94.44% to CNY 0.35[11] - The total operating revenue for Q1 2021 was CNY 2,852,984,083.95, a significant increase from CNY 1,341,155,233.73 in Q1 2020, representing a growth of approximately 113.8%[47] - The net profit for Q1 2021 was CNY 142,103,325.53, which is a substantial rise from CNY 61,172,306.40 in Q1 2020, indicating an increase of approximately 132.5%[51] - The company's total comprehensive income for Q1 2021 was approximately ¥142.10 million, compared to ¥61.17 million in Q1 2020, marking an increase of 132%[54] Assets and Liabilities - Total assets increased by 16.15% to CNY 6,714,782,590.04 compared to the end of the previous year[11] - Total liabilities increased to ¥3,796,055,931.00 from ¥3,010,634,913.19, reflecting a rise of approximately 26.1%[39] - Total current assets increased to ¥5,755,273,670.26, up from ¥4,924,818,509.73, representing a growth of approximately 16.9%[36] - Accounts receivable increased to ¥2,106,423,490.46, up from ¥1,701,636,128.29, which is an increase of about 23.8%[41] - Total equity attributable to shareholders increased to ¥2,918,726,659.04 from ¥2,770,514,966.69, reflecting a growth of approximately 5.4%[41] Cash Flow - Net cash flow from operating activities decreased by 12.27% to -CNY 746,501,187.14 year-to-date[11] - The cash flow from operating activities for Q1 2021 was negative at approximately -¥746.50 million, compared to -¥664.89 million in Q1 2020, indicating a worsening cash flow situation[62] - The total cash inflow from operating activities in Q1 2021 was approximately ¥2.59 billion, compared to ¥951.66 million in Q1 2020, showing a significant increase[62] - The total cash outflow from operating activities for Q1 2021 was approximately ¥3.34 billion, compared to ¥1.62 billion in Q1 2020, indicating a higher expenditure[62] Shareholder Information - The total number of shareholders reached 22,273 by the end of the reporting period[18] - The top three shareholders hold a combined 65.16% of the shares, with Zhou Gonghua holding 22.72%[18] Research and Development - Research and development expenses surged by 298.77% to ¥11,110,156.33 from ¥2,786,096.74, primarily due to increased investment in subsidiary R&D[23] - Research and development expenses for Q1 2021 were CNY 11,110,156.33, significantly higher than CNY 2,786,096.74 in Q1 2020, representing an increase of approximately 298.5%[51] Financial Expenses - The company’s financial expenses increased by 102.11% to ¥27,248,261.62 from ¥13,481,734.20, mainly due to increased bank borrowings[23] - The company reported a financial expense of CNY 27,248,261.62 in Q1 2021, compared to CNY 13,481,734.20 in Q1 2020, indicating an increase of about 102.0%[51] Inventory and Procurement - Cash and cash equivalents decreased by 64.06% to ¥256,695,273.93 from ¥714,171,376.19, mainly due to increased procurement payments related to expanded production scale[21] - Inventory increased by 51.48% to ¥2,706,968,813.90 from ¥1,787,064,543.71, driven by an increase in sales orders and expanded production scale[21] - The company reported a 46.15% increase in accounts payable to ¥380,000,000.00 from ¥260,000,000.00, due to expanded production scale and increased procurement payments[23] Future Outlook and Projects - The company is progressing with the construction of the Chizhou special cable production base, with the first phase completed and the second phase expected to be operational by Q3 2021[26] - The company plans to issue convertible bonds to raise up to ¥1 billion for the cable industry park project and to supplement working capital[27] - The underwater cable project is underway, with the first batch of orders delivered, while the ultra-high voltage project is in the investment phase[30]

Financial Performance - The company's operating revenue for 2020 was CNY 9,735,867,712.21, representing a 27.31% increase compared to CNY 7,647,243,266.67 in 2019[26]. - The net profit attributable to shareholders for 2020 was CNY 410,341,896.32, up 23.10% from CNY 333,348,745.95 in 2019[26]. - The net profit after deducting non-recurring gains and losses was CNY 377,099,641.44, a 17.40% increase from CNY 321,203,964.68 in 2019[26]. - The company's total assets increased by 61.05% to CNY 5,781,149,879.88 in 2020 from CNY 3,589,753,218.15 in 2019[29]. - The net assets attributable to shareholders rose by 77.73% to CNY 2,770,514,966.69 in 2020 from CNY 1,558,860,730.73 in 2019[29]. - The basic earnings per share for 2020 was CNY 1.10, a 15.79% increase from CNY 0.95 in 2019[29]. - In 2020, the company achieved a sales revenue of 9.74 billion RMB, representing a year-on-year growth of 27.31%[80]. - The net profit attributable to shareholders increased to 410.34 million RMB, up 23.10% compared to the previous year[80]. Dividend Policy - The company distributed cash dividends of RMB 0.125 per share, totaling RMB 50,072,500, which accounted for 12.20% of the net profit attributable to shareholders for 2020[8]. - The company plans not to distribute cash dividends for the 2020 fiscal year, with remaining undistributed profits to be carried forward to the next year[8]. Audit and Compliance - The company received a standard unqualified audit report from Lixin Certified Public Accountants[7]. - The company guarantees that the prospectus does not contain false records, misleading statements, or significant omissions, and will bear legal responsibility for its accuracy and completeness[162]. - If the prospectus is found to have significant issues, the company will buy back all newly issued shares at a price not lower than the issuance price plus interest[163]. - The company and its controlling shareholders commit to compensating investors for losses caused by any misleading information in the prospectus[166]. - All directors, supervisors, and senior management are liable for any misleading statements in the prospectus and will compensate investors for losses[167]. Market and Industry Outlook - The company aims to capitalize on the rapid development of new energy, rail transit, and smart grid sectors, which are expected to provide significant market opportunities[49]. - The telecommunications sector saw a total business volume of 1,503.2 billion yuan in 2020, growing by 20.6% year-on-year, highlighting the industry's expansion potential[52]. - The demand for cables in the new energy vehicle sector is expected to grow significantly due to the increasing use of electronic devices and the need for specialized cables[58]. - The market for cables related to renewable energy sources is expanding as China focuses on clean and low-carbon development[59]. Operational Challenges and Risks - The management's future business outlook is subject to various uncertainties and does not constitute a commitment to performance[11]. - The company faces risks related to macroeconomic fluctuations that could impact the demand for its wire and cable products, which are essential to various industries[128]. - The company is exposed to market competition risks due to a large number of domestic wire and cable manufacturers, necessitating continuous improvement in production processes and product structure[129]. - The company’s main business costs are significantly affected by raw material price fluctuations, particularly copper, which could impact overall operating performance[130]. - Rapid expansion of the company's operations may lead to management challenges, requiring enhanced strategic planning and internal controls[134]. Production and Innovation - The company launched over 50,000 product specifications, catering to various complex usage environments, including high-temperature and high-flexibility cables[38]. - The company has been recognized for its high-end specialty cables, achieving domestic leadership in certain product categories[40]. - The company has invested in advanced production technologies, enhancing efficiency in cable manufacturing processes[64]. - The company is committed to technological innovation and collaboration with academic institutions to improve product performance and develop new products[117]. Corporate Governance and Management - The company plans to optimize its corporate governance structure to enhance management efficiency and performance management systems[123]. - The company aims to enhance its competitive edge through quality control, product development, and brand image, targeting a transition from "100 million Qifan" to "200 million Qifan, 100 years Qifan"[115]. - The company emphasizes talent management and development, aiming to build a skilled workforce to support its growth strategy[122]. Financial Management - The company plans to issue convertible bonds to raise up to 1 billion RMB for the first phase of the Chizhou Qifan cable industry park project and to supplement working capital[104]. - The company aims to diversify its financing channels and reduce financing costs by leveraging various financial instruments and maintaining a reasonable capital structure[124]. - The company will establish a special account for raised funds to ensure proper management and usage, adhering to relevant regulations[181]. Social Responsibility - The company has committed to social responsibility, donating 1.18 million RMB for poverty alleviation and supporting pandemic response efforts[79]. - The company has been recognized as a "National Green Factory" and is actively promoting green manufacturing initiatives[79].

Financial Performance - Operating revenue for the first nine months was ¥6,359,059,827.05, representing a 14.01% increase from the same period last year[11]. - Net profit attributable to shareholders of the listed company was ¥307,647,731.35, up 19.00% year-on-year[11]. - Basic earnings per share for the period was ¥0.85, an increase of 23.19% compared to the same period last year[14]. - The company reported a net profit of ¥1,019,887,086.93 for the first three quarters of 2020, compared to ¥801,605,638.25 for the same period in 2019, an increase of 27.3%[48]. - Net profit for Q3 2020 was ¥158,031,151.71, compared to ¥111,965,390.74 in Q3 2019, reflecting a year-over-year increase of about 41.2%[56]. - The company reported a total profit of ¥213,951,005.70 for Q3 2020, compared to ¥137,076,413.76 in Q3 2019, marking an increase of around 56.2%[62]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥5,481,867,115.94, an increase of 52.71% compared to the end of the previous year[11]. - Total liabilities as of September 30, 2020, amounted to CNY 2,763,928,399.01, compared to CNY 2,030,892,487.42 as of December 31, 2019[40]. - The company’s total liabilities as of September 30, 2020, were ¥2,319,010,012.63, up from ¥1,666,757,713.06 at the end of 2019, reflecting a 39.1% increase[46]. - The company’s total assets impairment losses for Q3 2020 were ¥178,658.63, compared to ¥1,074,793.03 in the previous year, indicating a decrease in asset quality issues[62]. Cash Flow - The net cash flow from operating activities for the first nine months was -¥1,891,593,720.82, a significant decline of 425.34% compared to the previous year[11]. - The company reported a net cash flow from operating activities of -1,670,353,926.57 RMB for the first three quarters of 2020, compared to -47,525,765.56 RMB in the same period of 2019[73]. - Total cash inflow from operating activities was 5,550,928,768.74 RMB, compared to 4,860,177,846.87 RMB in the previous year[73]. - Cash paid for purchasing goods and services increased by 41.61% to CNY 6,587,259,651.17, primarily due to increased payments for goods[30]. - Cash inflow from financing activities amounted to 2,401,692,924.55 RMB, with cash outflows totaling 704,662,005.53 RMB, resulting in a net cash flow of 1,697,030,919.02 RMB[73]. Shareholder Information - The total number of shareholders at the end of the reporting period was 6,088,029, with significant holdings concentrated among the top ten shareholders[19]. - Net cash inflow from investment activities amounted to -$6,654,809.84, a significant decrease compared to -$265,204,009.02 in the previous period[75]. Research and Development - Research and development expenses rose by 81.68% to ¥23,465,314.81 from ¥12,915,586.50 year-on-year, reflecting increased investment in R&D[27]. - R&D expenses in Q3 2020 amounted to ¥13,511,682.26, significantly higher than ¥4,424,928.85 in Q3 2019, indicating a 205.5% increase[49]. - Research and development expenses for Q3 2020 amounted to ¥6,744,541.32, up from ¥4,424,928.85 in Q3 2019, which is an increase of approximately 52.5%[62]. Financial Ratios - The weighted average return on net assets was 16.19%, down 2.89 percentage points from the previous year[14]. - The company’s retained earnings grew by 37.34% to ¥1,131,531,296.07 from ¥823,883,564.73, reflecting an increase in profits for the period[27]. Government Support - Government subsidies recognized in the current period amounted to ¥6,991,173.29, while total government subsidies for the year reached ¥35,499,906.05[14]. - Cash received from government subsidies and returned bid deposits increased by 42.44% to CNY 98,504,710.03[30].