Financial Performance - The company's operating revenue for 2020 was RMB 216,512,126.89, representing a 16.47% increase compared to RMB 185,900,985.92 in 2019[20]. - The net profit attributable to shareholders of the listed company reached RMB 82,052,568.36, a 40.31% increase from RMB 58,478,328.39 in the previous year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 46,715,797.35, up 17.56% from RMB 39,738,353.33 in 2019[20]. - The net cash flow from operating activities surged to RMB 125,971,090.88, a significant increase of 287.87% compared to RMB 32,477,360.19 in 2019[20]. - The total assets of the company at the end of 2020 were RMB 1,799,062,665.22, reflecting a 147.31% increase from RMB 727,446,639.84 at the end of 2019[20]. - The net assets attributable to shareholders of the listed company increased to RMB 1,676,180,806.34, a 165.29% rise from RMB 631,830,471.41 in 2019[20]. - Basic earnings per share increased by 26.29% to CNY 0.8177 in 2020 compared to CNY 0.6475 in 2019[21]. - Net profit grew by 40.31% in 2020, primarily due to an increase in operating profit[21]. - The comprehensive gross profit margin for the past three years was 47.18%, 49.37%, and 48.83%, indicating a relatively stable performance[77]. Dividend and Shareholder Returns - The proposed cash dividend for 2020 is RMB 2.50 per 10 shares, totaling RMB 30,104,175, which accounts for 36.69% of the net profit attributable to shareholders[5]. - The company has committed to a cash dividend policy that balances investor returns with sustainable development, as outlined in its articles of association[128]. Research and Development - The company achieved a total R&D investment of ¥24,025,548.48, a decrease of 0.87% compared to the previous year[54]. - R&D investment accounted for 11.10% of total revenue, down from 13.04% in the previous year, representing a decrease of 1.94 percentage points[54]. - The company obtained 22 new patents during the reporting period, including 3 invention patents and 19 utility model patents[52]. - The company has accumulated a total of 178 patent applications, with 96 patents granted to date[52]. - The company has developed several advanced technologies, including a new "P-type gear" design that significantly improves output efficiency and load torque of harmonic reducers[50]. - The company has established several research centers and partnerships with universities to enhance its R&D capabilities[64]. Market Position and Products - The company has established a strong brand presence in the precision transmission sector, becoming a leading domestic enterprise in the field[29]. - The main products include harmonic reducers, mechatronic actuators, and precision components, widely used in high-end manufacturing sectors[29]. - The harmonic reducer industry in China is in a growth phase, with a significant supply gap in core components for industrial robots[44]. - The company has established a competitive advantage in the harmonic reducer market by achieving scale production and reducing procurement costs for domestic robot manufacturers[46]. - The global market for harmonic reducers is dominated by companies like Harmonic Drive and Nabtesco, which hold approximately 70% market share[46]. Production and Operations - The production model is based on "sales-driven production with safety stock," primarily utilizing in-house manufacturing while outsourcing some routine processing operations[36]. - The company operates a self-manufacturing model for its products, controlling the entire production process from order demand to product delivery[37]. - The company has implemented lean management and automated production processes, improving production efficiency and product stability[68]. - The company has achieved full industry chain coverage for harmonic reducers, allowing for better control over product performance and quality while reducing production costs[70]. Financial Management and Investments - The company reported a net cash flow from financing activities of ¥951,993,150.92, a substantial increase of 10,930.14% compared to the previous year[83]. - The company has entrusted a total of RMB 536 million in bank wealth management products, with an outstanding balance of RMB 190 million[166]. - The company has also invested RMB 657 million in bank wealth management products using raised funds, with an outstanding balance of RMB 569 million[166]. - The company has structured deposits amounting to RMB 300 million with a yield range of 1.82% to 3.55%[167]. Corporate Governance and Compliance - The company has established a governance structure that ensures the protection of shareholder and creditor rights, complying with legal regulations and enhancing operational standards[179]. - The company has committed to compensating any losses incurred by shareholders due to violations of its commitments[153]. - The company will ensure compliance with relevant laws and regulations regarding shareholding and changes in shareholding status[137]. Future Plans and Strategic Initiatives - The company plans to gradually resolve capacity constraints and implement a long-term capacity expansion plan to meet future demand in the industrial automation market[74]. - The company aims to become a leading global manufacturer of precision transmission devices, focusing on innovation and economic efficiency[118]. - Future plans include significant expansion of R&D personnel and management staff to support rapid growth and maintain industry leadership[119]. - The company will pursue strategic acquisitions to vertically integrate its operations and enhance product offerings[119]. Risks and Challenges - The company faces risks related to market competition, particularly from international industry giants, which may intensify as the company expands its business[79]. - The ongoing COVID-19 pandemic has not significantly impacted the company's operations, but uncertainties remain regarding international customer procurement[81].

Financial Performance - Operating income for the first nine months increased by 12.17% year-on-year, amounting to RMB 148,791,089.69[5] - Net profit attributable to shareholders rose by 65.78% year-on-year, reaching RMB 63,479,023.49[5] - Basic earnings per share increased by 59.86% to RMB 0.6778[7] - The total profit for the first nine months of 2020 was RMB 72,200,620.01, reflecting a 75.48% increase from RMB 41,144,467.01 in the same period of 2019, driven by improved operating performance[16] - Net profit for the first nine months of 2020 reached RMB 63,332,619.74, a 67.63% increase compared to RMB 37,781,182.31 in the same period of 2019, primarily due to higher operating profits[16] - Operating profit for Q3 2020 was ¥32,944,776.64, compared to ¥27,017,522.38 in Q3 2019, reflecting a growth of 22.5%[30] - Net profit for Q3 2020 was ¥29.44 million, compared to ¥25.11 million in Q3 2019, reflecting a growth of 9.3%[28] Asset Growth - Total assets increased by 143.40% year-on-year, reaching RMB 1,770,632,045.57[5] - As of September 30, 2020, the company's total assets reached CNY 1,770,632,045.57, a significant increase from CNY 727,446,639.84 on December 31, 2019, representing a growth of approximately 143.5%[22] - The total current assets increased to CNY 1,407,645,576.15 from CNY 458,724,425.70, reflecting a growth of about 206.5% year-over-year[21] - Total assets reached approximately ¥1.74 billion, an increase from ¥699.59 million year-over-year[25] Cash Flow - Net cash flow from operating activities surged by 539.51% year-on-year, totaling RMB 82,663,813.41[5] - Net cash flow from operating activities for the first nine months of 2020 was RMB 82,663,813.41, a significant increase of 539.51% from RMB 12,926,025.77 in the same period of 2019, mainly due to increased sales receipts and government subsidies[15] - Cash inflow from operating activities for Q3 2020 was 191,341,453.89, up from 125,484,047.55 in Q3 2019, representing a year-over-year increase of approximately 52.5%[32] - Net cash flow from operating activities for the first three quarters of 2020 was 66,602,669.14, compared to 34,262,936.47 in the same period of 2019, indicating a growth of about 94.5%[35] Equity and Liabilities - Net assets attributable to shareholders increased by 162.35% year-on-year, totaling RMB 1,657,607,261.47[5] - The company's total equity increased significantly, with capital reserves rising by 213.48% to RMB 1,368,859,064.80, resulting from the initial public offering[14] - The company's total liabilities were CNY 115,839,574.35, compared to CNY 98,284,554.93 in the previous year, showing an increase of approximately 17.7%[23] - The equity attributable to shareholders rose to CNY 1,657,607,261.47 from CNY 631,830,471.41, marking an increase of around 162.5%[23] Research and Development - R&D expenditure accounted for 11.53% of operating income, up from 11.24%[7] - Research and development expenses for Q3 2020 were ¥6.41 million, compared to ¥5.71 million in Q3 2019, indicating a year-over-year increase of 12.3%[27] Government Support - The company reported government subsidies of RMB 11,176,159.04 for the current period[8] Shareholder Information - The total number of shareholders at the end of the reporting period was 6,069[11] Investment Activities - The company has invested CNY 46,459,937.12 in construction projects, significantly up from CNY 18,283,307.58, reflecting a growth of approximately 154.5%[22] - The company reported a financial asset fair value change income of ¥1,158,231.09 in Q3 2020, down from ¥1,762,039.71 in Q3 2019[30] Deferred Income - The company reported a deferred income of CNY 29,442,352.22, which increased from CNY 12,050,312.33, representing a growth of approximately 144.5%[23] - Deferred income increased to ¥29.44 million from ¥12.05 million year-over-year, showing a significant growth of 144.5%[25]