Financial Performance - The company's operating revenue for 2020 was approximately ¥867.08 million, representing a 42.15% increase compared to ¥609.99 million in 2019[22]. - Net profit attributable to shareholders for 2020 was approximately ¥235.86 million, a 38.72% increase from ¥170.02 million in 2019[22]. - The basic earnings per share for 2020 was ¥3.23, up 38.63% from ¥2.33 in 2019[24]. - The net cash flow from operating activities increased by 58.42% to approximately ¥205.80 million in 2020, compared to ¥129.91 million in 2019[22]. - The total assets at the end of 2020 were approximately ¥1,027.04 million, reflecting a 48.34% increase from ¥692.34 million at the end of 2019[22]. - The company's net assets attributable to shareholders increased by 32.85% to approximately ¥714.84 million at the end of 2020, compared to ¥538.08 million at the end of 2019[22]. - The weighted average return on equity for 2020 was 37.65%, slightly down from 37.74% in 2019[24]. - The company achieved a revenue of 867.08 million RMB in 2020, representing a year-on-year increase of 42.15%[57]. - The net profit attributable to the parent company was 236 million RMB, up 38.72% compared to the previous year[57]. - The company maintained a gross margin of approximately 39.00%, with operating costs rising by 48.40% to 526 million RMB[57]. Dividend Policy - The company plans to distribute a cash dividend of 3.00 RMB per 10 shares to all shareholders based on the number of shares eligible for distribution on the record date[5]. - The company has a cash dividend policy that aims to distribute at least 10% of the annual distributable profit to shareholders, ensuring a reasonable return on investment[106]. - The company plans to maintain a cash dividend ratio of at least 80% if it is in a mature development stage without significant capital expenditure[106]. - In 2020, the company distributed a cash dividend of 3.00 RMB per 10 shares, with a total cash dividend amounting to 29,200,020.00 RMB[109]. - The company has a commitment to transparency in profit distribution decisions, aligning with legal regulations and shareholder interests[104]. - The company is focused on maintaining a stable and reasonable profit distribution policy to support sustainable development and shareholder interests[104]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[4]. - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and senior management[8]. - The company has not violated decision-making procedures for providing guarantees[8]. - The company assures that there are no non-operating fund occupations by controlling shareholders or related parties[7]. - The company has engaged Tianjian Accounting Firm for auditing services during the reporting period[20]. - The audit report confirmed that the financial statements fairly reflect the company's financial position and operating results for the year ended December 31, 2020[177]. - The company has implemented key internal controls related to revenue recognition to mitigate risks of inappropriate revenue recognition[180]. - The company has not disclosed any significant internal control deficiencies during the reporting period[173]. Market and Industry Overview - The company’s main business involves the research, production, and sales of hydraulic components, primarily used in excavators and other construction machinery[31]. - The Chinese hydraulic components market reached €9.52 billion in 2019, with a year-on-year growth of 4.9%, equivalent to approximately ¥73.6 billion, increasing its market share from 27.7% in 2015 to 30.2% in 2019[41]. - The hydraulic industry is projected to grow at an average annual rate of no less than 6% during the 13th Five-Year Plan period[82]. - The engineering machinery sector accounts for over 40% of the downstream industries for hydraulic components in China[83]. - The "New Infrastructure" initiative, focusing on 5G and charging stations, is expected to enhance the demand for engineering machinery[84]. - The hydraulic industry is experiencing steady expansion in major markets such as the US, China, and Europe, indicating a favorable environment for the company’s growth[41]. Risks and Challenges - The company emphasizes that forward-looking statements do not constitute substantial commitments to investors, highlighting investment risks[6]. - The company faces risks related to macroeconomic cycles, which can significantly impact the demand for hydraulic products in downstream industries[97]. - The company faces risks from increased competition in the hydraulic component market, which could impact profit margins and market share[99]. - The company has established long-term stable relationships with major clients such as SANY Heavy Industry and Caterpillar, but any decline in their procurement could adversely affect sales revenue[100]. - The company emphasizes the importance of its technical R&D team, which is crucial for product and technological innovation, but faces risks from potential talent loss and unforeseen technical challenges[101]. Research and Development - Research and development expenses amounted to approximately ¥31.36 million, representing 3.62% of total revenue, with a year-on-year increase of 46.99%[70][73]. - The company is committed to increasing R&D investment to explore new processes and materials for its products, aiming to improve production efficiency and product quality[96]. - The company plans to invest in high-end hydraulic component technology upgrades and automation projects, which are currently progressing steadily[96]. - The company aims to enhance product quality control and accelerate the development of intelligent hydraulic products in the next three to five years[94]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 3, compared to 28,221 at the end of the previous month[144]. - The top ten shareholders held a total of 74,321,496 shares, representing 76.36% of the total shares[147]. - The largest shareholder, Xia Jifa, held 42,000,000 shares, accounting for 43.15% of the total shares[147]. - The second-largest shareholder, Xia Zemin, held 28,000,000 shares, representing 28.77% of the total shares[147]. - Xia Jifa and Xia Zemin are identified as natural persons and are related as father and son, acting in concert with Ningbo Lanhai Haolong[152]. - There were no changes in the controlling shareholder or actual controller during the reporting period[149]. - The company does not have any preferred shareholders or any restrictions on share reduction[153]. - The company has not issued any new shares during the reporting period[144]. Corporate Governance - The company has a total of 70 million shares outstanding, with no changes reported[156]. - The chairman, Xia Jifa, has been in position since July 16, 2018, with a term ending on July 16, 2021[156]. - The general manager, Xia Zemin, has also held his position since July 16, 2018, with the same term duration[156]. - The independent directors and supervisors have not held any shares during the reporting period[156]. - The company has maintained a consistent management structure with no new appointments or departures reported[156]. - The total remuneration for the independent directors ranges from 5.54 million to 18.71 million yuan[156]. - The company has a remuneration policy for directors and senior management based on market conditions and performance assessments[163]. Community Engagement and Compliance - The company donated RMB 100,000 to the Jiangyin Charity Association in response to the COVID-19 pandemic and actively participated in community support initiatives[138]. - The company has complied with environmental regulations and has not received any administrative penalties from environmental authorities during the reporting period[140].

Financial Performance - Revenue for the first quarter reached CNY 289,804,343.99, an increase of 85.59% year-on-year[5] - Net profit attributable to shareholders was CNY 72,192,797.55, reflecting a growth of 68.76% compared to the same period last year[5] - Basic and diluted earnings per share were both CNY 1.00, up 69.49% from CNY 0.59 in the previous year[5] - Operating profit for Q1 2021 was ¥85,524,487.88, up 68.4% from ¥50,794,878.19 in the same period last year[27] - Net profit for Q1 2021 was ¥72,837,592.90, representing a 67.9% increase from ¥43,345,509.56 in Q1 2020[27] - The company’s total comprehensive income for Q1 2021 was CNY 71,270,524.65, reflecting a 71.5% increase from CNY 41,624,152.75 in Q1 2020[29] Assets and Liabilities - Total assets increased by 94.48% to CNY 1,997,381,964.89 compared to the end of the previous year[5] - Total assets reached ¥1,997,381,964.89, up from ¥1,027,038,596.08, marking a significant growth in the company's asset base[18] - Total liabilities amounted to ¥314,711,463.17, slightly up from ¥312,195,500.76, reflecting stable financial leverage[18] - Total liabilities for Q1 2021 were ¥322,750,213.20, an increase from ¥310,938,237.08 in Q1 2020[23] Cash Flow - The net cash flow from operating activities was negative at CNY -26,877,692.11, a decline of 342.27% compared to the previous year[5] - The company reported a net cash outflow from operating activities of CNY -26,877,692.11, compared to a net inflow of CNY 11,093,973.98 in Q1 2020[32] - The financing activities generated a net cash inflow of CNY 909,804,626.60 in Q1 2021, compared to a net outflow of CNY -1,006,597.51 in Q1 2020[33] - The total cash outflow from operating activities in Q1 2021 was 187,477,828.40 RMB, compared to 118,264,013.45 RMB in Q1 2020[34] Shareholder Information - The total number of shareholders at the end of the reporting period was 28,218[11] - The top shareholder, Xia Jifa, holds 43.15% of the shares, totaling 42,000,000 shares[11] Research and Development - Research and development expenses increased by 115.14% to ¥10,961,178.78 as the company intensified investment in hydraulic components[13] - Research and development expenses in Q1 2021 amounted to ¥10,961,178.78, which is a 115.5% increase from ¥5,095,006.19 in Q1 2020[26] Cash and Cash Equivalents - Cash and cash equivalents increased by 348.72% to ¥1,087,962,671.12 due to the arrival of raised funds[12] - Cash and cash equivalents stood at ¥735,111,714.69 in Q1 2021, compared to ¥235,768,634.76 in Q1 2020, showing an increase of 212.5%[22] - Cash and cash equivalents at the end of Q1 2021 totaled CNY 1,065,758,102.00, significantly up from CNY 132,441,937.84 at the end of Q1 2020[33] Operating Costs and Revenue - Operating costs surged by 99.91% to ¥184,590,632.46, in line with the increase in operating revenue[13] - Operating revenue rose by 85.59% to ¥289,804,343.99, driven by infrastructure growth and enhanced environmental governance[13] - The company's operating revenue for Q1 2021 was CNY 289,416,929.01, representing a 85.4% increase compared to CNY 156,075,500.30 in Q1 2020[28] Other Financial Metrics - The weighted average return on equity increased by 1.96 percentage points to 9.70%[5] - The company reported non-recurring gains of CNY 644,795.35 for the period[7] - Other payables rose dramatically by 25,383.15% to ¥17,974,074.51, due to increased fees payable to listing intermediaries[13] - The capital reserve increased by 423.05% to ¥1,076,461,923.83, attributed to the influx of raised funds[13]