Financial Performance - Net profit attributable to shareholders increased by 114.67% year-on-year, amounting to ¥21,240,625.53, driven by increased operating income[12] - Operating income for the period was ¥168,811,287.38, representing a significant increase of 119.76% compared to the same period last year[12] - Basic and diluted earnings per share rose by 71.43% to ¥0.12, reflecting the growth in net profit attributable to shareholders[15] - The company reported a net profit excluding non-recurring gains and losses of ¥19,349,918.53, an increase of 113.53% year-on-year[15] - Net profit for Q1 2021 reached ¥21,240,625.53, an increase of 114.67% compared to ¥9,894,621.54 in Q1 2020, primarily due to increased operating income and profit growth[29] - Total operating revenue for Q1 2021 reached ¥168,811,287.38, a significant increase of 120% compared to ¥76,814,695.96 in Q1 2020[51] - The company's total revenue for Q1 2021 was approximately CNY 166.98 million, a significant increase from CNY 77.18 million in Q1 2020, representing a growth of 116.5%[56] - The net profit for Q1 2021 reached CNY 20.57 million, compared to CNY 10.27 million in Q1 2020, indicating an increase of 100.5%[58] Cash Flow - The net cash flow from operating activities was negative at -¥21,100,864.36, compared to -¥6,464,353.05 in the same period last year[12] - Cash flow from operating activities showed a net outflow of ¥21,100,864.36, a significant increase in payments to suppliers and personnel compared to ¥6,464,353.05 in Q1 2020[29] - Cash flow from investing activities resulted in a net outflow of ¥386,062,207.23, primarily due to cash management of raised funds from 2020[29] - Cash flow from financing activities also showed a net outflow of ¥26,110,358.33, mainly due to repayment of bank loans and payment of IPO intermediary service fees[29] - Operating cash inflows totaled $73,704,655.85, a significant increase from $43,111,270.92 in the previous period, reflecting a growth of approximately 70.9%[62] - Operating cash outflows amounted to $94,805,520.21, compared to $49,575,623.97 previously, indicating an increase of about 91.1%[62] - Net cash flow from investment activities was -$386,162,207.23, compared to a positive flow of $12,094,115.18 in the previous period[68] Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,114,478,582.24, an increase of 3.62% compared to the end of the previous year[12] - Total current assets decreased to ¥842,565,880.98 from ¥962,723,228.05 at the end of 2020, with cash and cash equivalents significantly reduced[35] - Total liabilities increased to ¥330,391,016.88 from ¥312,449,853.11, indicating a rise in financial obligations[40] - Shareholders' equity increased to ¥784,087,565.36 from ¥763,069,662.48, reflecting retained earnings growth[40] - Total liabilities increased to ¥329,981,018.57 from ¥312,229,123.14, indicating a growth of approximately 6%[45] Research and Development - The proportion of R&D investment to operating income decreased to 9.42%, down by 0.6 percentage points from the previous year[12] - Research and development expenses rose by 106.70% to ¥15,907,258.49 from ¥7,695,783.21, reflecting increased investment in R&D[26] - Research and development expenses in Q1 2021 amounted to ¥15,907,258.49, nearly double the ¥7,695,783.21 spent in Q1 2020[51] - Research and development expenses for Q1 2021 amounted to CNY 15.91 million, which is a 106.5% increase from CNY 7.70 million in Q1 2020[56] Shareholder Information - The total number of shareholders at the end of the reporting period was 9,222[17] - The largest shareholder, Shenzhen Weichuang Electric Co., Ltd., held 69.44% of the shares[17] Inventory and Receivables - Accounts receivable increased by 32.40% to ¥190,342,111.64 from ¥143,767,535.11, driven by growth in operating revenue[23] - Inventory increased by 30.91% to ¥192,715,687.38 from ¥147,213,150.39, due to higher material reserves and finished goods[23] - Accounts receivable increased to ¥190,342,111.64 from ¥143,767,535.11, indicating a rise in credit sales[35] - Inventory levels rose to ¥192,715,687.38 from ¥147,213,150.39, reflecting increased stock levels[35]

Financial Performance - The company's operating revenue for 2020 was ¥572,230,257.90, an increase of 28.24% compared to ¥446,235,472.01 in 2019[31]. - The net profit attributable to shareholders for 2020 was ¥87,555,462.28, representing a 52.13% increase from ¥57,553,819.08 in 2019[31]. - The net profit after deducting non-recurring gains and losses was ¥82,903,426.23, up 39.49% from ¥59,431,751.52 in 2019[31]. - The company's total assets at the end of 2020 were ¥1,075,519,515.59, a 138.25% increase from ¥451,417,565.64 at the end of 2019[31]. - The net assets attributable to shareholders increased by 187.47% to ¥763,069,662.48 from ¥265,440,643.53 in 2019[31]. - Basic earnings per share for 2020 were ¥0.65, a 51.16% increase from ¥0.43 in 2019[32]. - The cash flow from operating activities for 2020 was ¥53,912,150.30, a decrease of 23.90% compared to ¥70,842,023.90 in 2019[31]. - The company reported a total net cash flow from operating activities of CNY 20.09 million in Q4 2020, showing a positive cash flow trend[36]. - The company’s overseas product sales in 2020 were CNY 4,799.04 million, accounting for 8.56% of total revenue[160]. Research and Development - The total R&D investment for the year reached ¥52,723,012.06, an increase of 22.74% compared to the previous year[107]. - R&D investment accounted for 9.21% of total revenue, slightly down from 9.63% in the previous year[107]. - The company has a strong emphasis on R&D, with numerous patents granted and pending, indicating a commitment to innovation and technological advancement[94]. - The company has filed for 21 new patent applications in the reporting period, with a total of 190 applications and 157 granted patents[101]. - The R&D personnel count increased to 222, representing 25.66% of the total workforce, compared to 157 and 24.23% in the previous period[127]. Market Position and Strategy - The company focuses on the development, procurement, production, and sales of industrial automation control products, including frequency converters and servo systems[52]. - The company aims to enhance its brand recognition and market share through continuous technological innovation and product development[86]. - The company is recognized as a high-tech enterprise and has received various accolades, including being listed as a "specialized and innovative small giant" in Jiangsu Province for 2020[45]. - The company has established a marketing network with 146 signed distributors and has set up a subsidiary in India, enhancing its market coverage and brand influence[133]. - The company aims to achieve a high-performance, lean production system to ensure rapid delivery of high-quality products[132]. Risk Management and Compliance - The company has disclosed various risk factors, including core competitiveness, operational, industry, and macroeconomic risks, in the report[5]. - The company has no non-operating fund occupation by controlling shareholders or related parties, indicating financial integrity[8]. - The company has not violated decision-making procedures for external guarantees, maintaining regulatory compliance[8]. - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute substantive commitments to investors, highlighting investment risks[8]. - The management team has extensive experience in the automation industry, contributing to the company's strategic decision-making and operational efficiency[139]. Product Development and Innovation - The company has developed core technologies including V/F scalar control technology and vector control technology, which support various types of motors and provide adaptive load control, with a wide speed range and high low-frequency torque[91]. - The company has made significant advancements in motor control technologies, including high-frequency injection control and motor parameter learning identification technology, which improves performance and reliability[92]. - The company has introduced a new product line, including the V5_MC104 and VS300, which utilize advanced control technologies[94]. - The company launched several new products, including a high-speed motor driver and an integrated hydraulic servo system, which received positive customer feedback[140]. - The company is focusing on differentiated strategies in niche markets, particularly in industries like hoisting, rail transit, and photovoltaic water supply[86]. Financial Management - The financial expenses increased by 52.37% due to exchange losses from fluctuations in the USD to CNY exchange rate[164]. - Direct material costs represented 86.86% of operating costs in 2020, indicating potential risks from raw material price fluctuations[150]. - The company reported a 123.41% increase in inventory levels compared to the previous year, attributed to an increase in orders[176]. - The top five customers contributed 14.92% of total annual sales, with the largest customer accounting for 6.49%[180]. - The top five suppliers accounted for 26.74% of total annual purchases, with the largest supplier contributing 7.84%[183].