Financial Performance - Operating revenue for the period was CNY 33,965,729.01, representing a growth of 7.84% year-on-year[5] - Net profit attributable to shareholders of the listed company reached CNY 4,544,768.05, an increase of 26.44% compared to the same period last year[5] - Total operating revenue for Q1 2021 was CNY 33,965,729.01, an increase of 7.85% compared to CNY 31,495,252.42 in Q1 2020[22] - Net profit for Q1 2021 reached CNY 5,759,792.21, representing a 45.24% increase from CNY 3,968,417.41 in Q1 2020[22] - The company's operating revenue for Q1 2021 was ¥32,437,427.16, an increase of 6.93% compared to ¥30,329,481.00 in Q1 2020[25] - The net profit attributable to shareholders of the parent company for Q1 2021 was ¥5,889,322.34, up 42.49% from ¥4,133,739.44 in Q1 2020[26] - The total comprehensive income for Q1 2021 was ¥5,889,322.34, compared to ¥4,133,739.44 in Q1 2020, reflecting a significant increase[26] - The total profit for Q1 2021 was ¥7,316,688.42, an increase of 52.06% from ¥4,815,874.37 in Q1 2020[25] Cash Flow - The net cash flow from operating activities was CNY -44,081,253.25, showing a decline from CNY -39,151,076.71 in the previous year[5] - Cash inflow from operating activities in Q1 2021 was ¥79,549,320.52, significantly higher than ¥29,918,039.34 in Q1 2020[27] - The net cash flow from operating activities for Q1 2021 was -1,246,705.52 RMB, an improvement from -37,980,235.72 RMB in Q1 2020[30] - Cash inflow from operating activities totaled 99,802,923.99 RMB, compared to 26,812,491.33 RMB in the same period last year, representing a growth of approximately 272%[30] - Cash outflow from operating activities was 101,049,629.51 RMB, up from 64,792,727.05 RMB in Q1 2020, indicating a 56% increase[30] - The company reported a significant increase in cash received from sales of goods and services, totaling ¥52,750,104.30 in Q1 2021, compared to ¥22,476,539.01 in Q1 2020[27] - The net cash flow from investing activities was -24,090,993.22 RMB, worsening from -1,981,655.00 RMB in Q1 2020[30] - Cash inflow from investing activities was 55,063,173.65 RMB, while cash outflow was 79,154,166.87 RMB, leading to a net cash flow deficit[30] - Cash inflow from financing activities was 62,793,694.47 RMB, an increase from 32,036,163.82 RMB in Q1 2020, marking a growth of approximately 96%[31] - The net cash flow from financing activities was 817,334.98 RMB, a decrease from 5,342,845.76 RMB in the previous year[31] Assets and Liabilities - Total assets at the end of the reporting period were CNY 985,491,506.40, a decrease of 0.61% compared to the end of the previous year[5] - The total number of shareholders at the end of the reporting period was 4,825[8] - The total liabilities decreased from CNY 254,333,228.68 to CNY 216,295,868.72, a reduction of 14.94%[15] - Total current assets decreased from CNY 752,139,263.43 as of December 31, 2020, to CNY 710,464,696.43 as of March 31, 2021, a decline of 5.55%[14] - The company's total assets slightly decreased from CNY 991,582,202.50 to CNY 985,491,506.40, a decline of 0.92%[15] - Total liabilities as of March 31, 2021, were CNY 246,889,007.15, down from CNY 259,233,163.10 at the end of 2020[19] - Shareholders' equity as of March 31, 2021, was CNY 738,274,090.07, compared to CNY 732,384,767.73 at the end of 2020[19] - Cash and cash equivalents decreased to CNY 135,900,715.40 from CNY 160,229,365.53 at the end of 2020[17] - Accounts receivable stood at CNY 380,233,950.40, slightly down from CNY 388,032,635.37 at the end of 2020[17] - Long-term equity investments increased to CNY 102,123,934.11 from CNY 62,348,678.66 at the end of 2020[18] Research and Development - Research and development expenses accounted for 8.21% of operating revenue, an increase of 1.45 percentage points from the previous year[5] - Research and development expenses rose by 30.91%, from CNY 2,129,707.93 to CNY 2,788,104.84, reflecting an increase in R&D personnel[11] - Research and development expenses for Q1 2021 were CNY 2,788,104.84, up from CNY 2,129,707.93 in Q1 2020[22] - Research and development expenses for Q1 2021 were ¥2,788,104.84, compared to ¥2,129,707.93 in Q1 2020, indicating a focus on innovation[25] Shareholder Information - The top shareholder, Li Wulin, held 15,930,000 shares, representing 14.85% of the total shares[8] - The basic and diluted earnings per share remained at CNY 0.05[5] - The basic and diluted earnings per share remained stable at ¥0.05 for both Q1 2021 and Q1 2020[26]

Financial Performance - The company's operating revenue for 2020 was CNY 351,790,744.89, representing an increase of 8.61% compared to CNY 323,904,684.39 in 2019[22]. - The net profit attributable to shareholders for 2020 was CNY 62,166,173.21, a slight increase of 1.49% from CNY 61,255,613.50 in 2019[22]. - The net profit after deducting non-recurring gains and losses decreased by 17.44% to CNY 49,695,855.31 in 2020 from CNY 60,195,428.67 in 2019[22]. - The company's total assets increased by 72.43% to CNY 991,582,202.50 at the end of 2020, up from CNY 575,067,468.92 at the end of 2019[22]. - The net assets attributable to shareholders rose by 97.66% to CNY 731,119,004.05 at the end of 2020, compared to CNY 369,881,748.79 at the end of 2019[22]. - Basic earnings per share for 2020 were CNY 0.63, down 18.18% from CNY 0.77 in 2019[23]. - The net cash flow from operating activities was negative at CNY -67,646,971.72 in 2020, a significant decrease from CNY 37,351,170.47 in 2019[22]. - The company reported a total revenue of 7,365 million RMB, with a net profit of 1,766.16 million RMB for the year 2020[72]. - Operating profit for the year was 71 million RMB, reflecting a growth of 1.32% year-over-year[90]. - The company achieved a revenue of 352 million RMB in 2020, representing an 8.61% increase compared to the previous year[90]. Dividend Policy - The company plans to distribute a cash dividend of RMB 4 per 10 shares, totaling RMB 42.9174 million based on a total share capital of 107.2935 million shares as of June 30, 2020[5]. - The board approved a proposal not to distribute profits for the year 2020 to support sustainable and rapid development[5]. - The cash dividend policy stipulates that at least 20% of the annual distributable profits will be distributed in cash, provided certain conditions are met[133]. - The company has established a cash dividend distribution plan that requires a minimum of 30% of the average distributable profits over three consecutive years to be distributed in cash[134]. Research and Development - The R&D expenditure as a percentage of operating revenue increased to 5.02% in 2020 from 4.69% in 2019, indicating a focus on innovation[23]. - The total R&D investment for the year was approximately ¥17.66 million, representing a 16.15% increase compared to the previous year[67]. - The company has developed 7 invention patents, 30 utility models, and 29 software copyrights, with 21 invention patents applied and accepted[52]. - The company’s R&D efforts focus on advanced wastewater treatment technologies, enhancing treatment efficiency and reducing chemical usage[66]. - The company has a strong pipeline of ongoing projects aimed at achieving zero discharge in wastewater treatment[68]. - The company achieved a 100% increase in capitalized R&D investment, amounting to ¥1.73 million[67]. Operational Risks and Governance - The company has detailed various operational risks and corresponding countermeasures in the report[4]. - The audit report issued by Da Hua Certified Public Accountants is a standard unqualified opinion[5]. - All directors confirmed the authenticity, accuracy, and completeness of the annual report[5]. - The company does not have any special arrangements for corporate governance[6]. - There are no non-operating fund occupations by controlling shareholders or related parties[7]. - The company has not violated decision-making procedures for external guarantees[8]. Market and Industry Trends - China's water resources are scarce, with 25.80% of rivers and lakes failing to meet drinking water standards, highlighting the urgent need for water pollution solutions[39]. - The government has intensified environmental governance efforts, creating a favorable policy environment for the industrial wastewater treatment sector, supported by multiple regulations and standards[42]. - The "14th Five-Year Plan" emphasizes sustainable development and ecological protection, which is expected to release significant market potential for the environmental protection industry[43]. - The trend towards water-saving modifications and "zero discharge" technologies is becoming a key focus in the industry, with a broad market demand anticipated[44]. Strategic Partnerships and Expansion - The company has partnered with Tsinghua Suzhou Environmental Innovation Research Institute to enhance R&D capabilities and develop efficient pollution treatment technologies[52]. - The company is committed to following the "Belt and Road" initiative to further explore overseas markets and enhance its capabilities as a water treatment equipment provider[126]. - The company aims to expand its market presence in the industrial water treatment sector, particularly in chemical and metal products industries[81]. - The company is focusing on expanding its market share and enhancing its technological capabilities through partnerships with leading research institutions[83]. Compliance and Commitments - The company guarantees that the IPO prospectus and other disclosure materials do not contain false records, misleading statements, or significant omissions[154]. - The company will ensure compliance with the latest regulations from the China Securities Regulatory Commission regarding commitment fulfillment[153]. - The company will take necessary actions if external factors such as legal changes or natural disasters prevent the fulfillment of commitments[153]. - The commitments made by the company are valid for three years after the signatory ceases to be a controlling shareholder or senior management[157]. Social Responsibility and Community Engagement - The company actively participates in social welfare activities and contributes to local economic development[193]. - The company donated CNY 50,000 to the Liuba County Fund for the rescue of impoverished women and children in May 2020[184]. - The company has implemented a poverty alleviation program with a total funding of 50,000 RMB[185].

Financial Performance - Operating revenue for the current period was CNY 33.97 million, representing a year-on-year increase of 7.84%[5] - Net profit attributable to shareholders of the listed company reached CNY 4.54 million, an increase of 26.44% compared to the same period last year[5] - Total revenue for Q1 2021 was CNY 33,965,729.01, an increase of 7.85% compared to CNY 31,495,252.42 in Q1 2020[22] - Operating profit for Q1 2021 was CNY 7,088,178.15, representing a 76.77% increase from CNY 4,006,404.54 in Q1 2020[22] - Net profit for Q1 2021 reached CNY 5,759,792.21, a 45.24% increase compared to CNY 3,968,417.41 in Q1 2020[22] - The total profit for Q1 2021 was CNY 7,102,196.83, an increase of 52.66% from CNY 4,650,552.34 in Q1 2020[22] - The company’s total comprehensive income for Q1 2021 was CNY 5,759,792.21, compared to CNY 3,968,417.41 in Q1 2020[23] Research and Development - Research and development expenses accounted for 8.21% of operating revenue, an increase of 1.45 percentage points year-on-year[5] - Research and development expenses increased by 30.91% to ¥2,788,104.84 from ¥2,129,707.93, mainly due to an increase in R&D personnel[13] - Research and development expenses were CNY 2,788,104.84, up from CNY 2,129,707.93 in Q1 2020, indicating a focus on innovation[22] Cash Flow - The net cash flow from operating activities was negative at CNY -44.08 million, compared to CNY -39.15 million in the same period last year[5] - Net cash flow from operating activities in Q1 2021 was -¥44,081,253.25, compared to -¥39,151,076.71 in Q1 2020, indicating a worsening cash flow situation[28] - Total cash inflow from investment activities in Q1 2021 was ¥58,621,588.25, up from ¥90,000.00 in Q1 2020, while cash outflow for investment activities increased to ¥42,154,166.87 from ¥2,163,930.22[28] - Net cash flow from financing activities in Q1 2021 was ¥22,404,485.11, compared to ¥11,636,445.76 in Q1 2020, showing an improvement in financing cash flow[28] - The net increase in cash and cash equivalents for Q1 2021 was -¥5,209,346.76, compared to -¥29,588,561.17 in Q1 2020, indicating a reduced cash burn rate[28] Assets and Liabilities - Total assets at the end of the reporting period were approximately CNY 985.49 million, a decrease of 0.61% compared to the end of the previous year[5] - The company's total liabilities decreased significantly, with current liabilities dropping by 100% in the category of non-current liabilities due within one year, reflecting the repayment of bonds[12] - Current liabilities decreased from ¥254,333,228.68 to ¥216,295,868.72, a reduction of about 15%[16] - Non-current liabilities decreased from ¥259,547,339.99 to ¥248,921,070.57, a decrease of approximately 4.8%[17] - Total liabilities decreased from ¥259,233,163.10 to ¥246,889,007.15, a reduction of about 4.7%[20] - Total equity increased from ¥732,034,862.51 to ¥736,570,435.83, an increase of about 0.5%[17] Shareholder Information - The total number of shareholders at the end of the reporting period was 4,825[10] - The largest shareholder, Li Wulin, held 14.85% of the shares, amounting to 15,930,000 shares[10] Market and Product Development - The company has not disclosed any new product developments or market expansion strategies in this report[5] - The company’s management indicated a commitment to market expansion and new product development in future strategies[22] Other Financial Metrics - The weighted average return on net assets decreased by 0.29 percentage points to 0.80%[5] - The company reported non-operating income totaling CNY 1.30 million, including gains from the disposal of non-current assets[8] - The company reported a credit impairment loss of CNY 6,170,179.72, significantly higher than CNY 378,746.55 in Q1 2020, reflecting increased risk provisions[22] - Basic and diluted earnings per share remained stable at CNY 0.05 for both Q1 2021 and Q1 2020[23]

Financial Performance - The company's operating revenue for 2020 was CNY 351,790,744.89, an increase of 8.61% compared to CNY 323,904,684.39 in 2019[22]. - The net profit attributable to shareholders for 2020 was CNY 62,166,173.21, reflecting a 1.49% increase from CNY 61,255,613.50 in 2019[22]. - The net profit after deducting non-recurring gains and losses decreased by 17.44% to CNY 49,695,855.31 in 2020 from CNY 60,195,428.67 in 2019[22]. - The company's total assets increased by 72.43% to CNY 991,582,202.50 at the end of 2020, compared to CNY 575,067,468.92 at the end of 2019[22]. - The net assets attributable to shareholders rose by 97.66% to CNY 731,119,004.05 at the end of 2020 from CNY 369,881,748.79 at the end of 2019[22]. - Basic earnings per share for 2020 were CNY 0.63, down 18.18% from CNY 0.77 in 2019[23]. - The net cash flow from operating activities was negative at CNY -67,646,971.72 in 2020, a significant decrease from CNY 37,351,170.47 in 2019, representing a decline of 281.11%[22]. - The company reported a total revenue of 7,365 million RMB, with a net profit of 1,766.16 million RMB for the year 2020[72]. - The company achieved operating revenue of CNY 351,790,744.89 and operating costs of CNY 209,854,111.25 during the reporting period[93]. - The total gross profit margin across all sectors was 40.35%, reflecting a decrease of 0.41 percentage points from the previous year[94]. Dividend Policy - The company plans to distribute a cash dividend of RMB 4 per 10 shares, totaling RMB 42.9174 million based on a total share capital of 107.2935 million shares as of June 30, 2020[5]. - The board has approved a proposal not to distribute profits for the year 2020 to support sustainable and rapid development[5]. - The cash dividend policy stipulates that at least 30% of the average distributable profit over three consecutive years must be distributed in cash[134]. - The company has established a cash dividend distribution condition that requires positive distributable profits and no major investment plans within the next twelve months[134]. Research and Development - The R&D expenditure as a percentage of operating revenue increased to 5.02% in 2020 from 4.69% in 2019, indicating a focus on innovation[23]. - The total R&D investment for the year reached ¥17,661,558.51, an increase of 16.15% compared to the previous year[67]. - The company has developed 7 invention patents, 30 utility model patents, and 29 software copyrights, with 21 invention patents applied and accepted[52]. - The company has a professional technical team of 162 members, with a majority holding at least a bachelor's degree[79]. - The number of R&D personnel increased to 57, accounting for 19.45% of the total workforce, with a total R&D personnel compensation of 894.97 million RMB[75]. Operational Risks and Compliance - The company has detailed various operational risks and corresponding countermeasures in the report[4]. - The company has not violated decision-making procedures for external guarantees[8]. - All directors attended the board meeting, ensuring accountability for the report's accuracy[5]. - The company has established a clear framework for compliance with shareholding regulations to protect investor interests[143]. Market and Industry Trends - The government has intensified environmental governance, with multiple policies enhancing the regulatory framework for water pollution control since 2015[42]. - The "14th Five-Year Plan" emphasizes sustainable development and aims to improve ecological quality, which will benefit the environmental protection industry[43]. - The trend towards water-saving modifications and "zero discharge" technologies is becoming prominent in the industry, with a significant market demand[44]. - The environmental protection industry is expected to grow significantly due to increased government spending and improved regulatory standards[50]. Corporate Governance and Shareholder Commitments - The company committed to not transferring or entrusting the management of its shares for 36 months from the date of listing[141]. - If the stock price falls below the issuance price for 20 consecutive trading days, the lock-up period will be extended by an additional 6 months[141]. - The commitments made by the company are valid for three years and cannot be revoked[158]. - The company guarantees that it will not engage in similar business activities that could compete with its own operations[158]. Strategic Initiatives and Future Plans - The company aims to expand its market presence in the industrial wastewater sector and diversify into other water treatment areas, including chemical and municipal sectors[123]. - The company is focused on expanding its overseas market presence in the power industry[126]. - The company plans to enhance its core technology promotion and provide customized water pollution solutions to improve customer loyalty and market share[124]. - The company is actively pursuing projects aimed at enhancing wastewater treatment capabilities and expanding its market presence[68].

Financial Performance - Operating revenue for the first nine months was approximately CNY 204.99 million, representing a year-on-year growth of 10.96%[7] - Net profit attributable to shareholders for the first nine months was approximately CNY 31.30 million, a decrease of 6.88% compared to the same period last year[7] - Total operating revenue for Q3 2020 was CNY 74,642,016.86, an increase of 6.1% compared to CNY 70,457,278.02 in Q3 2019[52] - Net profit for Q3 2020 was CNY 12,485,013.97, a decrease of 10.9% from CNY 14,009,862.59 in Q3 2019[53] - The total comprehensive income attributable to shareholders for the first three quarters of 2020 was CNY 36,367,714.65, up from CNY 33,992,919.10 in the same period of 2019[53] Assets and Liabilities - Total assets at the end of the reporting period reached approximately CNY 978.44 million, an increase of 70.14% compared to the end of the previous year[7] - As of September 30, 2020, accounts receivable increased by 33.50% to ¥410,256,379.24 compared to ¥307,313,737.36 at the end of 2019[11] - Total current liabilities increased to CNY 224,123,110.25 from CNY 175,249,157.27, reflecting a rise of about 28%[48] - The company's equity attributable to shareholders increased significantly to CNY 748,997,538.16 from CNY 369,881,748.79, marking a growth of approximately 102.5%[48] - Total liabilities increased to CNY 220,301,412.62 in Q3 2020 from CNY 201,492,485.23 in Q3 2019, representing a rise of 9.4%[51] Cash Flow - The company reported a net cash flow from operating activities of approximately -CNY 90.96 million for the first nine months[7] - The net cash flow from operating activities was negatively impacted due to project implementation costs and slow collection of receivables due to the pandemic[41] - Cash received from sales for the first three quarters of 2020 was ¥112,396,608.07, down from ¥147,436,229.89 in the same period of 2019[60] - Total cash outflow from operating activities was CNY 237,354,934.10, compared to CNY 228,388,731.24 in the previous year, indicating an increase of about 4.7%[61] - Cash inflow from financing activities totaled CNY 450,593,910.14, significantly higher than CNY 124,739,940.46 in Q3 2019, marking an increase of approximately 261%[62] Shareholder Information - The number of shareholders at the end of the reporting period was 5,339[9] - The top shareholder, Li Wulin, held 15,930,000 shares, representing 14.85% of the total shares[9] Research and Development - The company's R&D investment accounted for 9.71% of operating revenue, an increase of 5.12 percentage points year-on-year[8] - Research and development expenses for Q3 2020 were CNY 4,306,072.05, compared to CNY 2,721,440.15 in Q3 2019, reflecting a 58.2% increase[52] - R&D expenses in Q3 2020 were ¥3,919,610.64, an increase of 50.2% compared to ¥2,609,481.69 in Q3 2019[57] Investment and Financing - The company reported a net cash flow from financing activities of CNY 357,834,693.15, compared to CNY 65,399,329.71 in the same quarter last year, reflecting a substantial increase of about 447%[62] - The company issued new shares, resulting in an increase in fundraising activities, which positively impacted cash flow from financing activities[43] - The company’s long-term equity investments reached ¥27,077,490.83, reflecting new investments made during the period[18] Other Financial Metrics - Basic and diluted earnings per share were both CNY 0.38, a decrease of 9.52% compared to the previous year[8] - The weighted average return on net assets decreased by 5.63 percentage points to 6.29%[8] - Management expenses increased by 49.14% to ¥22,923,761.95, primarily due to higher employee compensation[36]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥130,354,469.21, representing a 14.06% increase compared to ¥114,282,586.78 in the same period last year [20]. - The net profit attributable to shareholders for the same period was ¥23,430,803.93, an increase of 18.63% from ¥19,750,796.04 year-on-year [20]. - The company's net assets attributable to shareholders increased by 99.00% to ¥736,060,627.44 from ¥369,881,748.79 at the end of the previous year [20]. - Total assets rose by 61.75% to ¥930,199,604.60 compared to ¥575,067,468.92 at the end of the previous year [20]. - The basic earnings per share for the first half of 2020 was ¥0.26, a 4.00% increase from ¥0.25 in the same period last year [21]. - Operating profit for the same period was 27.73 million yuan, an increase of 23.9% compared to the previous year [60]. - Research and development investment amounted to 8.86 million yuan, accounting for 6.8% of operating revenue, aimed at enhancing core competitiveness [60]. - The company reported a total revenue of 33,650,000.00 RMB for the first half of 2020, with a net profit of 8,860,491.29 RMB, representing a significant increase compared to the previous period [48]. Cash Flow and Financial Position - The company reported a net cash flow from operating activities of -¥85,013,270.12, compared to -¥13,779,658.32 in the same period last year [20]. - The company reported a 358.00% increase in net cash flow from financing activities, totaling ¥343,830,975.69, up from ¥75,073,042.28 [70]. - Cash inflows from financing activities increased to CNY 408,944,219.03, compared to CNY 105,323,237.99 in the same period of 2019, representing an increase of about 287.5% [199]. - The ending cash and cash equivalents balance was CNY 131,347,687.37, compared to CNY 63,417,244.80 at the end of the first half of 2019, reflecting an increase of approximately 106.7% [199]. - Cash outflows for investing activities totaled CNY 221,327,805.85, significantly higher than CNY 28,824,487.34 in the first half of 2019, marking an increase of approximately 669.5% [199]. Research and Development - The company's R&D investment as a percentage of operating revenue increased to 6.8%, up by 1.76 percentage points from 5.04% [22]. - The company achieved a total R&D investment of ¥8,860,491.29, which represents 6.80% of its operating revenue [41]. - The company has developed several core technologies, including industrial wastewater electronic flocculation treatment technology, which significantly reduces operational costs while ensuring compliance with discharge standards [34][35]. - The company has ongoing projects with a total expected investment of ¥6,000,000 for an electrochemical online descaling technology, currently in the pilot testing phase [44]. - The company has developed a new dynamic mixing technology aimed at improving the efficiency of wastewater treatment processes [40]. Shareholder and Capital Management - The company plans to distribute a cash dividend of RMB 4 per 10 shares, totaling approximately RMB 42.92 million (including tax) based on a total share capital of 10,729.35 million shares as of June 30, 2020 [6]. - The profit distribution plan for the first half of 2020 has been approved by the board and will be submitted for shareholder approval [85]. - The actual controller and major shareholders have committed to not transferring or entrusting the management of their shares for 36 months post-listing [88]. - Shareholders holding more than 5% of the company, including directors and senior management, are prohibited from transferring or entrusting their shares for 12 months post-IPO [92]. - The company has established a three-year shareholder return plan post-IPO, focusing on cash dividends and profit distribution conditions [118]. Market and Industry Context - The company focuses on industrial water treatment, providing customized equipment and consulting services to large enterprises [28]. - The market for industrial wastewater treatment is expected to grow due to the continuous high levels of wastewater discharge and increasing environmental awareness among the public [31]. - The company is focusing on "zero discharge" technologies, which are becoming a key trend in the industry, with significant market demand anticipated [32]. - The industrial wastewater treatment market in China is characterized by a high level of competition, with the company holding a relatively low market share despite its technological advantages [33]. Compliance and Governance - The board of directors, supervisors, and senior management guarantee the authenticity, accuracy, and completeness of the semi-annual report [4]. - The company has confirmed that all resolutions passed at the shareholder meetings are legal and valid, with no rejected proposals [84]. - The company has committed to avoiding any business competition with its controlling shareholders and actual controllers, ensuring no similar business operations are conducted [101]. - The company has established measures to stabilize its stock price, including a share buyback plan if the stock price falls below the audited net asset value per share for 20 consecutive trading days [106]. Social Responsibility and Environmental Impact - The company donated 50,000 RMB to the Liuba County Fund for the assistance of impoverished women and children [138]. - The company has engaged in various poverty alleviation efforts, with a total investment of 50,000 RMB specifically for East-West poverty alleviation collaboration [140]. - The company has implemented environmental protection measures, including a mobile welding fume purification unit with an efficiency of ≥99% [142]. - Noise control measures have been adopted, ensuring that noise levels do not exceed 70dB(A) in the production area [143].

Financial Performance - Operating revenue for the period was CNY 31.50 million, representing an increase of 29.82% year-on-year[5] - Net profit attributable to shareholders was CNY 4.05 million, up 17.07% from the same period last year[5] - Basic earnings per share remained at CNY 0.05, unchanged from the previous year[7] - The company did not report any significant changes in net profit expectations compared to the previous year[15] - Total revenue for Q1 2020 was CNY 31,495,252.42, an increase of 29.4% compared to CNY 24,260,671.06 in Q1 2019[24] - Operating profit for Q1 2020 was CNY 4,006,404.54, slightly up from CNY 3,905,248.23 in Q1 2019[27] - Net profit for Q1 2020 reached CNY 3,968,417.41, compared to CNY 3,337,871.05 in Q1 2019, reflecting a growth of 18.9%[27] - Revenue for Q1 2020 was CNY 30,329,481, an increase of 25.5% compared to CNY 24,260,671 in Q1 2019[29] - Net profit for Q1 2020 reached CNY 4,133,739, representing a 14.7% increase from CNY 3,604,135 in Q1 2019[30] - Operating profit for Q1 2020 was CNY 4,417,118, slightly up from CNY 4,254,442 in Q1 2019, indicating a growth of 3.8%[30] Cash Flow and Liquidity - The net cash flow from operating activities was negative CNY 39.15 million, compared to negative CNY 2.53 million in the previous year[5] - Cash flow from operating activities showed a net outflow of CNY -39,151,077, compared to CNY -2,527,122 in Q1 2019, indicating a significant decline[32] - The cash and cash equivalents decreased to CNY 93,946,313.75 from CNY 130,500,980.59 at the end of 2019, indicating a cash flow challenge[21] - Total cash inflow from financing activities in Q1 2020 was CNY 38,329,764, a decrease of 47.5% from CNY 73,065,083 in Q1 2019[34] - The net cash flow from financing activities was $5,342,845.76, a decrease from $61,519,181.16 in the previous year[37] - The total cash and cash equivalents at the end of the period were $53,294,764.64, down from $74,787,497.09 at the end of the previous year[37] - Cash outflow from investment activities was $2,071,655.00, significantly lower than $9,658,816.19 in the same quarter last year[37] Assets and Liabilities - Total assets at the end of the reporting period were approximately CNY 567.96 million, a decrease of 1.24% compared to the end of the previous year[5] - Total current assets decreased slightly to ¥524,560,356.03 from ¥530,219,882.06[18] - Total liabilities decreased to ¥192,881,982.89 from ¥205,249,157.27[19] - Total equity increased to ¥375,080,329.06 from ¥369,818,311.65[19] - Current assets totaled CNY 510,835,042.29, a slight decrease from CNY 518,507,048.13 at the end of 2019[21] - Current liabilities decreased to CNY 158,189,488.64 from CNY 171,492,485.23 at the end of 2019, indicating improved liquidity management[22] Shareholder Information - The total number of shareholders at the end of the reporting period was 32[11] - The largest shareholder, Li Wulin, held 19.80% of the shares, totaling 15,930,000 shares[11] Research and Development - Research and development expenses accounted for 6.76% of operating revenue, a decrease of 0.57 percentage points compared to the previous year[7] - The company reported a significant increase in research and development expenses, which rose to CNY 2,129,707.93 in Q1 2020 from CNY 1,778,024.23 in Q1 2019[24] - Research and development expenses increased to CNY 2,129,708, up 19.7% from CNY 1,778,024 in the same period last year[30] Other Income and Expenses - The company reported non-operating income of CNY 460,388.79, primarily from government subsidies[9] - Sales expenses decreased by 28.19% to ¥1,270,575.93 due to reduced customer visits during the pandemic[14] - The company incurred a credit impairment loss of CNY 424,460 in Q1 2020, a decrease of 75.2% compared to CNY 1,715,089 in Q1 2019[30] - The company received $26,000,000.00 in borrowings, an increase from $17,000,000.00 in the same quarter last year[37]