Financial Performance - The net profit attributable to the owners of the company for the year ended December 31, 2020, was RMB 15,958,387.69, with a distributable profit of RMB 28,933,650.07[6] - The proposed cash dividend is RMB 1.5 per 10 shares (including tax), totaling RMB 6,006,000.00 (including tax) based on a total share capital of 40,040,000 shares[6] - The cash dividend payout ratio for the year is 37.64%[6] - The company's operating revenue for 2020 was CNY 133.40 million, a decrease of 45.97% compared to CNY 246.90 million in 2019[21] - Net profit attributable to shareholders decreased by 64.30% to CNY 15.96 million from CNY 44.70 million in 2019[24] - The net profit after deducting non-recurring gains and losses fell by 95.56% to CNY 1.78 million[24] - Cash flow from operating activities decreased by 65.01% to CNY 6.44 million[24] - Basic earnings per share dropped by 67.79% to CNY 0.48 from CNY 1.49 in 2019[23] - The company reported a total profit of 14,181,836.98 RMB for the year, with a significant impact from non-operating losses amounting to -5,001,881.00 RMB[31] Audit and Compliance - The company received a standard unqualified audit report from Zhonghua Accounting Firm[5] - The company has no non-operating fund occupation by controlling shareholders or related parties[8] - There are no violations of decision-making procedures regarding external guarantees[8] - The company emphasizes the importance of risk factors as detailed in the report, urging investors to pay attention[4] Research and Development - Research and development expenses accounted for 13.13% of operating revenue, an increase of 5.03 percentage points from the previous year[23] - The company conducted 25 R&D projects and applied for 25 invention patents, 48 utility model patents, and 33 design patents during the reporting period[62] - The total R&D investment amounted to ¥17,509,989.38, a decrease of 12.48% compared to the previous year, with R&D investment accounting for 13.13% of operating revenue, an increase of 5.03 percentage points[63] - The company has established a comprehensive technology chain from core software and hardware to system integration, enhancing its competitive edge[76] - The company has developed core technologies in various fields, including vehicle technology and network communication technology, applicable to suspended production systems and warehouse sorting systems[60] Market and Sales - The company faced a significant decline in both domestic and international sales, with domestic sales down 38.10% and international sales down 82.12%[24] - The company has established a stable supplier relationship and maintains a dynamic management system for suppliers, conducting at least one assessment per year based on quality, delivery time, and service[43] - The company has a comprehensive sales network across various provinces, ensuring timely understanding of local customer demands and maintaining a structured sales process from contract negotiation to project completion[44] - The company is expanding its market presence in Southeast Asia, particularly in Vietnam, Cambodia, and Myanmar, to capture international growth opportunities[82] Operational Efficiency - The company’s operational model remains unchanged, reflecting its adaptability to market supply and demand conditions[46] - The company aims to enhance operational efficiency and reduce error rates through the development of integrated intelligent hanging production systems[66] - The company completed the development of a production management system for the spinning industry, which can automatically collect and calculate production data, improving efficiency and reducing costs[13] - The intelligent sorting high-speed scanning system project was completed, increasing scanning efficiency to over 60 items per minute with a barcode recognition error rate of less than 0.2%[70] Future Strategies - The company plans to continue developing new products and technologies to improve margins and expand market reach[106] - The company aims to optimize and upgrade existing products, enhancing reliability, functionality, load capacity, lifespan, adaptability, cost-effectiveness, and maintainability[141] - The company plans to expand its overseas market presence, particularly in Southeast Asia and South Asia, where brands and OEMs are establishing processing plants and will require smart logistics systems[142] - The company is focusing on developing its intelligent production logistics system equipment, including intelligent hanging production systems and various intelligent sorting systems[141] Shareholder Commitments - The company has established a cash dividend policy prioritizing cash distribution, with a minimum of 10% of the distributable profit allocated for cash dividends if certain conditions are met[148] - The company’s profit distribution policy emphasizes stability and continuity, balancing short-term and long-term interests of shareholders[148] - The company will actively communicate with shareholders, especially minority shareholders, to gather their opinions and address their concerns[182] - The company commits to compensating investors for any losses incurred due to violations of commitments made in the prospectus[183] Risks and Challenges - The company faced significant operational risks due to the COVID-19 pandemic, which affected order amounts and contract implementations, particularly in overseas markets[94] - The company is exposed to risks from international sales, particularly in Southeast Asia, due to geopolitical changes and currency fluctuations[94] - The company’s reliance on the garment and home textile industries poses a risk, as any adverse changes in these sectors could negatively impact revenue and profitability[95] Governance and Compliance - The company has a robust internal governance structure to ensure efficient operations and compliance with legal requirements[144] - The company has not faced any penalties or corrective actions against its directors, supervisors, or senior management during the reporting period, indicating good governance[198] - The company has committed to fully bear any social insurance or housing fund payments required by authorities, ensuring compliance with regulations[192]

Financial Performance - Operating revenue decreased by 42.94% to CNY 100.57 million for the first nine months compared to the same period last year[8] - Net profit attributable to shareholders decreased by 45.44% to CNY 19.39 million for the first nine months compared to the same period last year[8] - Net profit after deducting non-recurring gains and losses decreased by 80.24% to CNY 5.84 million for the first nine months compared to the same period last year[8] - The weighted average return on net assets decreased by 26.41 percentage points to 11.95%[8] - Basic and diluted earnings per share decreased by 47.46% to CNY 0.62[8] - The significant decline in performance was primarily due to the impact of the COVID-19 pandemic, leading to increased uncertainty in equipment investment from downstream customers[9] - The company reported a significant decline in sales for the first nine months of 2020 due to the impact of the COVID-19 pandemic, with new order amounts decreasing compared to the same period last year[22] - The company anticipates a significant risk of a substantial decline in performance for the full year 2020 due to uncertainties in downstream industry recovery and order signing[22] Assets and Liabilities - Total assets increased by 149.46% to CNY 494.93 million compared to the end of the previous year[8] - Net assets attributable to shareholders increased by 251.83% to CNY 433.66 million compared to the end of the previous year[8] - The total number of shareholders is 5,353[13] - The total liabilities as of September 30, 2020, were CNY 57,694,471.35, down from CNY 71,666,327.47 in the previous year[28] - The company's cash and cash equivalents stood at CNY 319,692,427.90, compared to CNY 27,869,016.00 in the previous year, indicating a strong liquidity position[26] - The total assets as of September 30, 2020, were CNY 494,926,743.59, compared to CNY 198,401,525.61 in the previous year, reflecting growth in asset base[27] - The company’s equity attributable to shareholders was CNY 433,658,479.70, a notable increase from CNY 123,257,215.86 in the previous year[28] Cash Flow - The cash flow from operating activities decreased by 70.05% to CNY 6.22 million for the first nine months compared to the same period last year[8] - Cash inflow from sales of goods and services for the first three quarters of 2020 was CNY 119,673,261.30, a decline of 27% from CNY 164,000,276.84 in 2019[40] - Cash outflow for purchasing goods and services was CNY 78,394,412.42, compared to CNY 85,083,264.71 in the previous year, indicating a decrease of 7.9%[41] - Cash inflow from financing activities was CNY 360,647,300.00 in 2020, significantly higher than CNY 13,000,000.00 in 2019[41] - The total cash and cash equivalents at the end of the third quarter of 2020 reached CNY 318,572,427.90, up from CNY 28,671,958.42 at the end of the same period in 2019[41] Research and Development - R&D investment as a percentage of operating revenue increased by 3.80 percentage points to 11.92%[9] - Research and development expenses for Q3 2020 were ¥4,731,082.49, down 23.3% from ¥6,173,768.05 in Q3 2019[33] - Research and development expenses for Q3 2020 were CNY 815,816.23, reflecting ongoing investment in innovation[36] - The company plans to continue focusing on R&D and market expansion despite the current financial challenges[36] Legal Matters - The company is involved in ongoing litigation regarding patent infringement, with a recent ruling requiring compensation of ¥1,000,000 and additional costs of ¥350,000[19] - The patent involved in the litigation has been declared invalid, which does not affect the company's product and business development[21] Changes in Accounting Standards - The company executed new revenue recognition standards, impacting the classification of various financial items[16] - The company adopted the new revenue recognition standard starting January 1, 2020, impacting the presentation of contract assets and undistributed profits[51]