Financial Performance - The company's operating revenue for 2019 was approximately ¥12.14 billion, representing a 3.69% increase compared to ¥11.71 billion in 2018[21]. - The net profit attributable to shareholders decreased by 8.22% to approximately ¥285.34 million from ¥310.89 million in the previous year[21]. - The basic earnings per share for 2019 was ¥0.33, down 8.33% from ¥0.36 in 2018[22]. - The cash flow from operating activities for 2019 was approximately ¥701.35 million, a significant decline of 46.27% compared to ¥1.31 billion in 2018[21]. - The total assets at the end of 2019 were approximately ¥13.94 billion, a decrease of 2.77% from ¥14.34 billion at the end of 2018[21]. - The weighted average return on equity for 2019 was 6.44%, down from 7.29% in 2018, reflecting a decrease of 0.85 percentage points[22]. - The company's net assets attributable to shareholders increased by 3.33% to approximately ¥4.51 billion at the end of 2019[21]. - The gross profit margin for the reporting period was 14.39%, a decrease of 1.43 percentage points year-on-year[45]. - The income tax expense decreased by 64.03% year-on-year, primarily due to an increase in the amount of R&D expenses eligible for additional deductions[44]. - The company achieved a profit distribution ratio of 55.72% in 2019, with a net profit of 285,338,130.89 CNY attributed to common shareholders[91]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of 1.80 RMB per 10 shares, totaling approximately 158.99 million RMB, which represents 55.72% of the net profit attributable to shareholders for the year 2019[5]. - The company reported a cash dividend of 1.50 CNY per 10 shares for 2018, totaling 129,946,598.25 CNY distributed[89]. - The company’s total cash dividends over the past three years have shown a consistent increase, from 1.20 CNY per 10 shares in 2017 to 1.80 CNY in 2019[91]. Audit and Compliance - The company has received a standard unqualified audit report from PwC Zhong Tian[4]. - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and senior management[2]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[7]. - The company has not disclosed any significant changes in its decision-making processes regarding external guarantees[7]. - The company received a standard unqualified opinion from PwC on its internal control audit, confirming effective financial reporting controls[183]. Risks and Challenges - The management has highlighted various risks including industry environment risk, product price risk, technology risk, exchange rate risk, and goodwill impairment risk[7]. - The company has noted the risk of goodwill impairment if the performance of Hangzhou Fusheng does not meet expectations[85]. - The company faces challenges such as rising labor costs and increased competition in the air conditioning industry, but also sees opportunities in the ongoing industrialization and urbanization processes in China[79]. - The air conditioning and compressor market has long-term growth potential, but faces risks from climate change and supply-demand fluctuations[84]. Research and Development - Research and development expenses increased by 20.23% to RMB 545,893,952.30[42]. - The company plans to increase R&D investment and expand its research team to enhance competitiveness and maintain industry leadership[85]. - The company is actively involved in research and development, particularly in intelligent new energy vehicles, to align with market trends[158]. Production and Sales - The company produced 25.81 million air conditioning compressors, a year-on-year increase of 10.08%, and sold 26.06 million units, up 13%[38]. - The sales of automotive electric scroll compressors reached 188,100 units, a significant increase of 86.93%, capturing 15% of the new energy vehicle market[39]. - The company plans to increase air conditioning compressor sales to 2.9 million units in 2020, up from 2.606 million units in 2019, representing an 11.29% increase[82]. - The company anticipates a significant growth in demand for automotive electric scroll compressors, with sales projected to increase by 38.26% from 19,000 units in 2019 to 26,000 units in 2020[82]. Environmental Responsibility - The company actively pursued social responsibility initiatives, emphasizing energy conservation, environmental protection, and smart manufacturing in 2019[120]. - The actual discharge of wastewater pollutants was within permissible limits, with pH at 7.30 and CODCr at 68.4 mg/L, both below the allowed concentrations[121]. - The company’s noise levels were compliant with standards, recording daytime levels at 58.8 dB and nighttime levels at 48.7 dB[123]. - The company reported a total of 532.33 tons of hazardous waste handled in compliance with regulations[123]. - The company has complied with national environmental laws and regulations, establishing a comprehensive environmental management system and conducting emergency drills for environmental incidents[132]. Governance and Management - The company has implemented stock incentive plans for its executives, with specific allocations detailed in the report[159]. - The board of directors and supervisory board operate in accordance with legal regulations, ensuring effective governance and protection of stakeholder rights[174]. - The company maintains independence from its controlling shareholder in terms of business operations, personnel, assets, and financial management[180]. - The evaluation mechanism for senior management is based on annual operational targets and performance indicators, with a four-tier assessment system[181]. - The company has not experienced any insider trading violations or regulatory actions related to insider information management during the reporting period[175]. Shareholder Structure - The largest shareholder, Shanghai Electric Group, holds 211,700,534 shares, representing 23.97% of total shares[146]. - Zhuhai Gree Electric Appliances holds 90,223,164 shares, accounting for 10.21% of total shares[146]. - The controlling shareholder, Shanghai Electric (Group) Corporation, holds a 60.89% stake in the company as of December 31, 2019[149]. - The total number of ordinary shareholders increased from 49,245 to 50,565 during the reporting period[144]. Future Outlook - Future guidance indicates a cautious outlook, with management emphasizing the need for strategic adjustments in response to market conditions[158]. - The company is focusing on expanding its market presence and enhancing its product offerings, particularly in the new energy sector[158]. - The company is actively seizing opportunities in the global industrial transformation era as part of its strategic initiatives[182].

Financial Performance - Net profit attributable to shareholders was ¥191.49 million, a decrease of 4.59% year-on-year[6]. - Operating revenue for the first nine months was ¥9.37 billion, down 2.93% from the same period last year[6]. - The company reported a decrease in net profit after deducting non-recurring gains and losses, which was ¥172.54 million, down 8.75% year-on-year[6]. - Operating profit for the same period was 274.5164 million yuan, down 7.69% year-on-year[20]. - The company reported no significant changes in net profit expectations compared to the previous year[22]. - Net profit for Q3 2019 was CNY 33,922,392.92, a decrease of 31.69% compared to CNY 49,620,014.21 in Q3 2018[33]. - The company's net profit attributable to shareholders for Q3 2019 was ¥22,004,869.18, a decrease from ¥32,534,882.83 in Q3 2018, representing a decline of approximately 32.5%[34]. - Total revenue for Q3 2019 was CNY 2,540,747,127, a decrease of 4.67% compared to CNY 2,665,046,063 in Q3 2018[31]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥14.67 billion, an increase of 2.34% compared to the end of the previous year[6]. - The company's total assets as of Q3 2019 were reported at ¥1,692,866,483.11, an increase from ¥569,806,848.67 in the same period of 2018, representing a growth of approximately 196.5%[37]. - Total current liabilities decreased to CNY 8.33 billion from CNY 8.45 billion, a decline of about 1.3%[26]. - The company's long-term borrowings decreased significantly to CNY 69.31 million from CNY 191.82 million, a reduction of approximately 63.9%[26]. - Total liabilities increased to CNY 3,306,112,152.22, up from CNY 1,586,727,644.46 at the end of 2018, representing a growth of 108.36%[30]. - Current liabilities totaled approximately $1.56 billion, reflecting a decrease of $13,152.00[53]. Cash Flow - The net cash flow from operating activities for the first nine months was ¥225.99 million, a significant recovery from a negative cash flow of ¥96.71 million in the previous year[6]. - Cash inflow from operating activities totaled CNY 7.60 billion, while cash outflow was CNY 7.37 billion, resulting in a net cash flow of CNY 225.99 million[41]. - The company's cash flow from operating activities showed a significant improvement, with net cash inflow reported for Q3 2019 compared to outflow in Q3 2018[38]. - Investment activities generated a net cash outflow of CNY 406.90 million, compared to a larger outflow of CNY 540.32 million in the same period of 2018[42]. - Cash flow from financing activities showed a net outflow of CNY 407.41 million, contrasting with a net inflow of CNY 210.59 million in the same period of 2018[42]. Shareholder Information - The total number of shareholders at the end of the reporting period was 51,350, with the largest shareholder holding 24.44% of the shares[11]. - The controlling shareholder, Shanghai Electric Group Corporation, increased its stake by acquiring 20,661,113 shares, representing 2.38% of the total share capital[21]. - The total equity attributable to shareholders increased to CNY 4.41 billion from CNY 4.36 billion, reflecting a growth of about 1.3%[26]. Research and Development - The company’s development expenditure increased by 219.89% compared to the beginning of the year, reflecting new capitalized R&D projects[14]. - The company reported a research and development expense of CNY 108,070,374.93 for Q3 2019, an increase of 13.83% compared to CNY 94,894,931.80 in Q3 2018[33]. Market Performance - The company sold 5.2368 million rotary compressors during the reporting period, a slight increase of 0.08% year-on-year, with a cumulative sales of 20.6774 million units, up 5.24%[20]. - The company achieved sales of 623.74 million electric motors, a decrease of 2.07% year-on-year, with a cumulative sales of 2.27047 million units, an increase of 3.96%[20]. - The sales of automotive electric scroll compressors reached 62,700 units, a significant increase of 161.95% year-on-year, with a cumulative sales of 140,400 units, up 148.11%[20]. Government Support - Government subsidies recognized amounted to ¥31.45 million, primarily from deferred income[9]. Changes in Accounting Standards - As of January 1, 2019, the company adopted new accounting standards affecting financial instruments, revenue recognition, and leases, impacting various financial statement items[49]. - The company has adopted new financial instrument standards effective January 1, 2019, impacting various financial reporting aspects[54].

Financial Performance - The company's operating revenue for the first half of 2019 was ¥6,824,846,183.72, a decrease of 2.27% compared to ¥6,983,295,592.26 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was ¥169,488,881.38, representing a slight increase of 0.78% from ¥168,176,883.73 in the previous year[18]. - The net profit after deducting non-recurring gains and losses was ¥138,278,341.68, down 10.98% from ¥155,329,712.44 in the same period last year[18]. - Basic earnings per share for the first half of 2019 were ¥0.20, an increase of 5.26% compared to ¥0.19 in the same period last year[20]. - The weighted average return on net assets was 3.83%, a decrease of 0.13 percentage points from 3.96% in the previous year[20]. - The net cash flow from operating activities was negative at -¥165,271,207.74, compared to -¥65,699,744.03 in the same period last year, indicating a significant decline[18]. - The company reported a non-recurring profit of RMB 31,210,539.70, primarily from government subsidies and other non-operating income[22]. - The company achieved a sales volume of 15.44 million air conditioning compressors in the first half of 2019, representing a year-on-year increase of 7%[30]. - The electric motor business sold 16.47 million units in the same period, marking a 6% year-on-year growth[30]. - The sales of automotive electric scroll compressors reached 80,000 units, a significant increase of 138% year-on-year[30]. Assets and Liabilities - The company's total assets increased by 5.42% to ¥15,112,766,017.22 from ¥14,335,310,829.93 at the end of the previous year[19]. - The net assets attributable to shareholders of the listed company rose by 0.53% to ¥4,387,619,534.06 from ¥4,364,490,584.94 at the end of the previous year[19]. - The total assets of the company as of June 30, 2019, amounted to RMB 15,112,766,017.22, with overseas assets accounting for 4.87%[27]. - The company's total assets at the end of the reporting period amounted to RMB 3,583,547,000[132]. - Total liabilities reached CNY 9.78 billion, compared to CNY 9.00 billion, marking an increase of approximately 8.6%[100]. - The company's total liabilities at the end of the reporting period were 2,045,644,178.22 RMB[129]. Research and Development - Research and development expenses rose significantly by 38.15% to ¥221,036,734.86, reflecting increased investment in R&D projects[33]. - The company is focused on technological innovation and has established a strong core competitive advantage in lean manufacturing and independent technology development[28]. - Ongoing research and development efforts are focused on enhancing product offerings and technological advancements to maintain competitive advantage[99]. Risks and Challenges - The company faces various risks including industry environment risk, production cost price risk, and technology risk, which are detailed in the report[6]. - The company faces industry risks due to market fluctuations and competition, with a slowdown in growth observed in the air conditioning compressor market in 2019[48]. - The company is addressing production cost risks by implementing smart manufacturing and real-time tracking of raw material prices[49]. - The company has established an overseas factory in India, facing exchange rate risks due to the country's economic conditions[49]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 53,034, with 23,978 being B-share holders[88]. - The largest shareholder, Shanghai Electric Group, held 211,700,534 shares, representing 24.44% of the total shares[90]. - Zhuhai Gree Electric Appliances held 90,223,164 shares, accounting for 10.41% of the total shares[90]. - Hangzhou Fusheng Holdings held 70,485,572 shares, which is 8.14% of the total shares[90]. Environmental Compliance - The company’s subsidiary, Haili Electric, was listed as a key regulatory unit for hazardous waste in Shanghai, ensuring compliance with environmental monitoring standards[73]. - The company has implemented an online monitoring system for COD and pH levels, with regular inspections conducted by external agencies[81]. - The company adheres to national environmental laws and has established a comprehensive environmental management system[83]. Financial Management - The company obtained a total of CNY 1 billion in various financial facilities from its financial company, including CNY 100 million in bill discounting and CNY 300 million in bill issuance[60]. - The company provided a full unconditional and irrevocable joint liability guarantee of RMB 1 billion for short-term financing bonds, with a guarantee period from December 3, 2018, to August 30, 2019[61]. - The company has committed to maintaining a strict adherence to its financial obligations and has no significant litigation or arbitration matters during the reporting period[58]. Future Plans - The company plans to invest CNY 48 million to establish a new automotive parts production capacity project through its subsidiary Anhui Haili, with a registered capital of CNY 30 million[40]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[125]. - The company plans to continue its strategy of capital reserve transfers to increase its registered capital[128].

Financial Performance - Operating revenue for the first quarter was ¥3,401,094,902.14, representing a decrease of 4.91% year-on-year[7] - Net profit attributable to shareholders was ¥102,843,509.36, an increase of 3.35% compared to the same period last year[7] - Basic earnings per share increased by 9.09% to ¥0.12[7] - Total revenue for Q1 2019 was ¥3,401,094,902.14, a decrease of 4.9% compared to ¥3,576,833,506.91 in Q1 2018[33] - Total operating costs for Q1 2019 were ¥3,255,508,267.34, down 5.5% from ¥3,445,094,946.25 in Q1 2018[33] - Net profit for Q1 2019 was ¥134,869,996.44, slightly up from ¥133,708,939.39 in Q1 2018, representing a growth of 0.9%[34] - Operating profit for Q1 2019 was ¥159,444,959.79, an increase of 12.2% from ¥141,299,811.17 in Q1 2018[33] - Other comprehensive income after tax for Q1 2019 was ¥11,679,470.10, compared to a loss of ¥23,436,507.14 in Q1 2018[34] - The company’s total comprehensive income for the period was -2,077,015.31 RMB, compared to -12,288,926.80 RMB in the previous year, indicating a significant improvement[40] Assets and Liabilities - Total assets at the end of the reporting period reached ¥14,420,234,467.89, an increase of 0.59% compared to the end of the previous year[7] - Current assets totaled ¥9.09 billion, slightly down from ¥9.01 billion at the end of 2018, indicating a decrease of about 0.02%[26] - Accounts receivable increased to ¥5.78 billion from ¥4.71 billion, representing a growth of approximately 22.7%[25] - Inventory decreased to ¥2.13 billion from ¥2.29 billion, showing a decline of about 6.8%[25] - Current liabilities decreased to ¥8.34 billion from ¥8.45 billion, a reduction of approximately 1.3%[26] - Non-current liabilities rose to ¥603.99 million from ¥555.97 million, indicating an increase of about 8.6%[27] - Total liabilities as of Q1 2019 amounted to ¥1,874,278,109.62, an increase of 18.1% from ¥1,586,727,644.46 in Q1 2018[34] - Total current assets amounted to CNY 9,014,654,157.10 as of Q1 2019[46] - Total liabilities reached CNY 9,001,355,021.90, with current liabilities at CNY 8,445,384,490.92[47] Cash Flow - Cash flow from operating activities showed a net outflow of ¥473,195,292.50, compared to a net outflow of ¥494,690,871.77 in the same period last year[7] - The net cash flow from operating activities for Q1 2019 was CNY -473.20 million, a decrease in net outflow of CNY 21.50 million year-on-year[18] - Total cash inflow from operating activities was 2,237,188,823.01 RMB, compared to 2,311,553,730.90 RMB in the same period last year, reflecting a decrease of approximately 3.2%[39] - The company experienced a decrease in cash received from sales of goods and services, totaling 2,102,272,242.38 RMB, down from 2,264,121,450.11 RMB, a decline of about 7.1%[39] - Cash outflow for operating activities was 2,710,384,115.51 RMB, down from 2,806,244,602.67 RMB in Q1 2018, indicating a reduction of approximately 3.4%[40] - The net cash flow from investing activities was -143,328,825.60 RMB, an improvement from -207,314,258.46 RMB in the previous year[43] - The company reported a net cash flow from financing activities of -191,115,920.21 RMB, a significant decrease from 170,065,125.89 RMB in Q1 2018[41] Shareholder Information - The total number of shareholders at the end of the reporting period was 53,466[11] - The largest shareholder, Shanghai Electric Group, held 24.44% of the shares[11] Government Subsidies and Non-Recurring Items - The company confirmed government subsidies of ¥9,421,773.80, primarily related to deferred income recognition[9] - Non-recurring gains and losses amounted to ¥8,205,294.18 for the period[9] Financial Ratios and Returns - The weighted average return on equity decreased by 0.03 percentage points to 2.33%[7] - Financial expenses decreased by 51.06% year-on-year, mainly due to a reduction in exchange losses[15] - Investment income increased by 147.98% year-on-year, primarily due to an increase in net profit from associated companies[16] Research and Development - Research and development expenses for Q1 2019 were ¥86,116,727.46, down from ¥90,484,904.32 in Q1 2018, indicating a reduction of 4.1%[33] Changes in Accounting Policies - The company adopted new financial instrument standards and revenue recognition standards effective January 1, 2019[48] - The company adopted new financial and leasing standards effective January 1, 2019, which may affect financial reporting[53] - The company has not reported any significant changes in accounting policies that would affect prior period comparisons[53]

Financial Performance - The net profit attributable to shareholders for 2018 was CNY 310,886,863.82, with the parent company achieving a net profit of CNY 189,444,234.11[5] - The company's operating revenue for 2018 reached approximately ¥11.71 billion, representing a 12.08% increase compared to ¥10.45 billion in 2017[22] - Net profit attributable to shareholders was approximately ¥310.89 million, a 10.55% increase from ¥281.23 million in 2017[22] - The basic earnings per share for 2018 was ¥0.36, up 12.50% from ¥0.32 in 2017[23] - The weighted average return on equity increased to 7.29%, up 0.42 percentage points from 6.87% in 2017[23] - The net cash flow from operating activities for 2018 was approximately ¥1.31 billion, a significant increase of 65.25% from ¥789.95 million in 2017[22] - Total assets at the end of 2018 were approximately ¥14.34 billion, reflecting a 5.10% increase from ¥13.64 billion at the end of 2017[22] - The net assets attributable to shareholders increased to approximately ¥4.36 billion, a 4.41% increase from ¥4.18 billion in 2017[22] - The company reported a total operating revenue for 2018 of approximately ¥11,708,311,339.47, an increase of 12.06% compared to ¥10,446,775,442.05 in the previous year[195] - Net profit for 2018 was ¥419,346,603.38, representing a 23.73% increase from ¥338,771,313.72 in the prior year[196] Dividend Distribution - A cash dividend of CNY 1.50 per 10 shares is proposed, totaling CNY 129,946,598.25, with the remaining undistributed profit carried forward to the next year[6] - The total distributable profit at the end of the year was CNY 334,463,909.30 after allocating CNY 18,944,423.41 to the statutory surplus reserve[5] - The remaining undistributed profit at the end of the year was CNY 204,517,311.05[6] - The company distributed a cash dividend of CNY 1.20 per share in 2018, totaling CNY 103.957 million[92] Risks and Challenges - The company faces various risks including industry environment risk, production cost price risk, technology risk, and goodwill impairment risk[9] - The company emphasizes that forward-looking statements are subject to risks and uncertainties that may lead to significant differences from actual results[7] Audit and Compliance - The audit report for 2018 was issued by PwC Zhong Tian, confirming the financial report's authenticity and completeness[5] - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[8] - The company has no significant litigation or arbitration matters during the reporting period[107] - The company has not engaged in any cash asset management or entrusted loan activities during the reporting period[115] Research and Development - The company's R&D expenses amounted to CNY 454,032,072, reflecting a year-on-year increase of 16.65%[45] - The total R&D investment amounted to 459,900,469.36 CNY, representing 3.93% of total operating income, with 805 R&D personnel making up 15.08% of the total workforce[58] - Research and development expenses for 2018 were ¥454,032,071.51, an increase from ¥389,229,848.87 in 2017, reflecting a commitment to innovation[195] Market and Sales Performance - The sales volume of rotor compressors reached 23.04 million units in 2018, capturing a market share of 12.41% in China's compressor industry[35] - The sales of automotive electric scroll compressors amounted to 100,600 units in 2018, representing a 7.92% share of the national new energy vehicle market[36] - The company’s electric motor sales reached 28.56 million units in 2018, maintaining its leading position in the compressor motor manufacturing sector[36] - The company maintained a market share of 30.4% in the non-self-supplied market for air conditioning compressors, continuing to lead the industry[41] Environmental and Social Responsibility - The company was awarded the title of "Outstanding Enterprise" at the Fourth Shanghai Listed Companies Corporate Social Responsibility Summit in December 2018[117] - The company donated a total of RMB 400,000 in cash and materials to the Shanghai Red Cross in August 2018[121] - The company was listed as a key pollutant discharge unit in Shanghai and monitored its emissions according to environmental standards[126] Corporate Governance - The company has established a comprehensive internal control system, enhancing risk prevention capabilities and promoting sustainable development[177] - The board of directors and supervisory board operate in accordance with established rules, ensuring effective governance and protection of stakeholder rights[176] - The company has maintained independence from its controlling shareholder in terms of operations, personnel, assets, and finance, ensuring autonomous business capabilities[184] Future Outlook and Strategy - The company plans to continue its market expansion and product development strategies in the upcoming year[9] - Future strategies include enhancing technological leadership and quality in the compressor sector while expanding into new applications[84] - The company aims to improve its market share in the electric motor sector by adjusting product structures and enhancing collaboration with Hangzhou Fusheng[84] - The company is considering strategic acquisitions to bolster its product portfolio, with a budget of $100 million allocated for potential deals[165]