[Important Notice](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) [Report Authenticity Statement](index=2&type=section&id=1.1%20%E6%8A%A5%E5%91%8A%E7%9C%9F%E5%AE%9E%E6%80%A7%E5%A3%B0%E6%98%8E) The company's board of directors, supervisory board, and senior management declare the quarterly report content is true, accurate, and complete, free from false records, misleading statements, or major omissions - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report content, free from false records, misleading statements, or major omissions[4](index=4&type=chunk) - All directors attended the board meeting to review this quarterly report[5](index=5&type=chunk) - Company head Cao Kebao, chief accountant Cao Kebao, and head of accounting department Qian Jianfen declare: they guarantee the truthfulness, accuracy, and completeness of the financial statements in the quarterly report[5](index=5&type=chunk) [Key Financial Data and Shareholder Changes](index=3&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE%E5%8F%8A%E8%82%A1%E4%B8%9C%E5%8F%98%E5%8C%96) [Key Accounting Data and Financial Indicators](index=3&type=section&id=2.1%20%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company demonstrated strong performance in Q1 2014, with operating revenue increasing by 43.95% and net profit attributable to shareholders surging by 209.62%, while net cash flow from operating activities decreased by 47.2% 2014 Q1 Key Accounting Data and Financial Indicators (Year-on-Year) | Indicator | Current Reporting Period (CNY) | Prior Year Same Period (CNY) | Current Period vs. Prior Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 755,528,118.38 | 524,862,478.01 | 43.95% | | Net Profit Attributable to Listed Company Shareholders | 74,572,307.13 | 24,085,042.68 | 209.62% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-recurring Items) | 59,744,848.91 | 23,617,576.68 | 152.97% | | Net Cash Flow from Operating Activities | 30,496,872.30 | 57,754,238.14 | -47.2% | | Basic Earnings Per Share (CNY/share) | 0.2413 | 0.0779 | 209.76% | | Diluted Earnings Per Share (CNY/share) | 0.2413 | 0.0779 | 209.76% | | Weighted Average Return on Net Assets (%) | 4.68% | 1.99% | Increased by 2.69 percentage points | 2014 Q1 End Asset and Liability Indicators (Compared to End of Previous Year) | Indicator | End of Current Reporting Period (CNY) | End of Prior Year (CNY) | Current Period End vs. Prior Year End Change | | :--- | :--- | :--- | :--- | | Total Assets | 3,940,132,790.33 | 3,887,821,827.51 | 1.35% | | Net Assets Attributable to Listed Company Shareholders | 1,449,248,338.70 | 1,383,956,337.23 | 4.72% | 2014 Q1 Non-recurring Gains and Losses Items and Amounts | Item | Amount from Year Start to End of Reporting Period (CNY) | Explanation | | :--- | :--- | :--- | | Disposal Gains/Losses of Non-current Assets | 12,118,773.75 | | | Government Subsidies Included in Current Profit/Loss | 2,959,000.00 | | | Other Gains/Losses Meeting the Definition of Non-recurring Items | -12,123.20 | | | Less: Income Tax Impact | 244,807.33 | | | Minority Interest Impact (After Tax) | -6,615.00 | | | Total | 14,827,458.22 | -- | [Total Number of Shareholders and Top Ten Shareholders' Holdings at the End of the Reporting Period](index=4&type=section&id=2.2%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of the end of the reporting period, the company had 32,603 shareholders. Among the top ten shareholders, controlling shareholder Jiangyin Molds Group Co., Ltd. held 36.29%, with the remainder primarily being investment funds and individual shareholders. All top ten shareholders held unrestricted shares - The total number of shareholders at the end of the reporting period was **32,603**[12](index=12&type=chunk) Top 10 Shareholders' Holdings at the End of the Reporting Period | Shareholder Name | Shareholder Nature | Holding Percentage (%) | Number of Shares Held | | :--- | :--- | :--- | :--- | | Jiangyin Molds Group Co., Ltd. | Domestic Non-state-owned Legal Person | 36.29% | 112,164,674 | | Bank of China - HFT Income Growth Securities Investment Fund | Other | 1.65% | 5,111,828 | | Bank of Communications - ABC-CA Industry Growth Stock Fund | Other | 0.9% | 2,782,999 | | Jiangsu Xintianguanghong Investment Construction Co., Ltd. | Domestic Non-state-owned Legal Person | 0.82% | 2,530,000 | | Bank of China - HFT Policy-Oriented Stock Fund | Other | 0.82% | 2,523,081 | | Industrial and Commercial Bank of China - Southern Steady Growth Securities Investment Fund | Other | 0.71% | 2,199,904 | | Chen Hefei | Domestic Natural Person | 0.71% | 2,191,200 | | Industrial and Commercial Bank of China - Southern Steady Growth No. 2 Securities Investment Fund | Other | 0.68% | 2,099,878 | | China Foreign Economy and Trade Trust Co., Ltd. - Fujin 6 | Other | 0.49% | 1,500,051 | | Xie Mingxing | Domestic Natural Person | 0.46% | 1,436,637 | - There is no associated relationship between the controlling shareholder, Jiangyin Molds Group Co., Ltd., and other unrestricted shareholders, and whether other shareholders have associated relationships is unknown[13](index=13&type=chunk) [Important Matters](index=6&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [Significant Changes and Reasons for Major Accounting Statement Items and Financial Indicators in the Reporting Period](index=6&type=section&id=3.1%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) During this reporting period, several accounting statement items and financial indicators underwent significant changes. Dividends receivable decreased by 100% due to dividend payments received; operating revenue and operating costs increased by 43.95% and 48.22% respectively due to main business growth; investment income surged by 270.25% from Milacron equity transfer proceeds; and net cash flow from financing activities significantly improved due to increased borrowings Major Balance Sheet Item Changes and Reasons | Item | Period-End Balance (CNY) | Year-Beginning Balance (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Dividends Receivable | 0.00 | 3,175,200.00 | -100% | Received BAIC Molds dividend payment in current period | | Employee Compensation Payable | 13,139,481.45 | 21,505,773.05 | -38.90% | Paid annual bonuses in current period | | Taxes Payable | 7,817,786.26 | 12,475,478.70 | -37.23% | Paid taxes due in current period | Major Income Statement and Cash Flow Statement Item Changes and Reasons | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 755,528,118.38 | 524,862,478.01 | 43.95% | Due to growth in main business revenue in current period | | Operating Cost | 580,985,398.05 | 391,985,955.09 | 48.22% | Due to growth in main business revenue in current period | | Investment Income | 16,854,356.71 | 4,552,173.08 | 270.25% | Received Milacron equity transfer proceeds in current period | | Non-operating Income | 3,085,821.06 | 689,982.08 | 347.23% | Received government subsidies in current period | | Non-operating Expenses | 30,130.68 | 59,698.79 | -49.53% | Prior period non-current asset disposal expenses | | Net Cash Flow from Operating Activities | 30,496,872.30 | 57,754,238.14 | -47.20% | Paid for goods purchased in current period | | Net Cash Flow from Investing Activities | -11,662,214.37 | 7,669,883.47 | -252.05% | Prior period received government land repurchase funds | | Net Cash Flow from Financing Activities | 23,083,045.58 | -134,969,356.86 | -117.10% | Due to increased borrowings in current period | [Analysis and Explanation of Progress, Impact, and Solutions for Important Matters](index=6&type=section&id=3.2%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D%E5%92%8C%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88%E7%9A%84%E5%88%86%E6%9E%90%E8%AF%B4%E6%98%8E) The company completed the acquisition of a 49% stake in its controlled subsidiary Wuxi Hongyi Real Estate Development Co., Ltd., making it a wholly-owned subsidiary to strengthen control over the private hospital project, which is expected to commence trial operations by the end of 2014. Additionally, the company received full payment for the transfer of an 18% stake in Jiangyin Milacron Plastic Machinery Co., Ltd - The company utilized **CNY 415 million** of its own funds to acquire a **49% stake** in its controlled subsidiary, Wuxi Hongyi Real Estate Development Co., Ltd., from its controlling shareholder Molds Group, making it a wholly-owned subsidiary to enhance control over the private hospital and reduce related-party transactions[17](index=17&type=chunk) - The private hospital project is currently under construction and is expected to commence trial operations by the end of **2014**[17](index=17&type=chunk) - The company has received full payment for the transfer of an **18% stake** in Jiangyin Milacron Plastic Machinery Co., Ltd., with the transaction amount being **CNY 12,088,895** equivalent in USD[17](index=17&type=chunk) [Forecast of Operating Performance for January-June 2014](index=7&type=section&id=3.3%20%E5%AF%B9%202014%20%E5%B9%B4%201-6%20%E6%9C%88%E7%BB%8F%E8%90%A5%E4%B8%9A%E7%BB%A9%E7%9A%84%E9%A2%84%E8%AE%A1) The company anticipates that its cumulative net profit for January-June 2014 will not incur a loss or experience significant fluctuations compared to the same period last year - The company expects that its cumulative net profit for January-June **2014** will not incur a loss or experience significant fluctuations compared to the same period last year[20](index=20&type=chunk) [Securities Investment Status](index=7&type=section&id=3.4%20%E8%AF%81%E5%88%B8%E6%8A%95%E8%B5%84%E6%83%85%E5%86%B5) The company holds stock investments in Jiangnan Water (stock code: 601199), with 16,281,238 shares, a 6.96% stake, and a book value of CNY 224,518,272.02 at period-end, generating no profit or loss during this reporting period Securities Investment Details | Security Type | Security Code | Security Abbreviation | Initial Investment Cost (CNY) | Number of Shares Held at Period-End | Holding Percentage (%) at Period-End | Book Value (CNY) at Period-End | Profit/Loss (CNY) in Reporting Period | Accounting Subject | Source of Shares | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Stock | 601199 | Jiangnan Water | 28,000,000.00 | 16,281,238 | 6.96% | 224,518,272.02 | 0.00 | Available-for-sale Financial Assets | Capital Contribution | - The securities investment was approved and disclosed by the board of directors on **June 24, 2003**[20](index=20&type=chunk) [Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period](index=7&type=section&id=3.5%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%8E%A5%E5%BE%85%E8%B0%83%E7%A0%94%E3%80%81%E6%B2%9F%E9%80%9A%E3%80%81%E9%87%87%E8%AE%BF%E7%AD%89%E6%B4%BB%E5%8A%A8%E7%99%BB%E8%AE%B0%E8%A1%A8) During the reporting period, the company actively engaged in investor relations activities, hosting institutional and individual investors from firms like Shenyin Wanguo, CITIC Securities, Industrial Securities, and Changjiang Securities through on-site visits and phone calls, discussing main business, private hospital project progress, subsidiary operations, and 2013 performance - The company hosted a total of **9** research, communication, and interview activities during the reporting period, including **6** on-site visits and **3** phone calls[21](index=21&type=chunk)[22](index=22&type=chunk) - Guests included institutional investors such as Shenyin Wanguo, CITIC Securities, HFT Fund, Industrial Securities, Changjiang Securities, China Merchants Fund, Dongxing Securities, BOC Fund, Harvest Fund, Fullgoal Fund, and several individual investors[21](index=21&type=chunk)[22](index=22&type=chunk) - Key discussion topics covered the company's future main business and private hospital project development plans, the Wuhan factory fire and Shanghai factory rumors, **2013** performance, subsidiary operations, core competitiveness, main supporting vehicle models, future industrial deployment, and the purpose of acquiring the remaining equity in subsidiaries[21](index=21&type=chunk)[22](index=22&type=chunk)

Financial Performance - The company's operating revenue for 2013 was CNY 2,901,136,042.07, representing a 17.72% increase compared to CNY 2,464,387,797.84 in 2012[24] - The net profit attributable to shareholders for 2013 was CNY 217,099,497.75, an increase of 18.78% from CNY 182,780,202.88 in 2012[24] - The net cash flow from operating activities reached CNY 458,402,640.80, up 47.44% from CNY 310,918,094.02 in the previous year[24] - The basic earnings per share for 2013 was CNY 0.702, an increase of 18.78% compared to CNY 0.591 in 2012[24] - The net profit after deducting non-recurring gains and losses was CNY 189,389,015.09, a significant increase of 134.02% from CNY 80,929,266.38 in 2012[24] - The weighted average return on equity for 2013 was 16.87%, an increase of 1.58 percentage points from 15.29% in 2012[24] - The company reported a significant increase in prepayments, with prepayments rising to CNY 104,043,235.65, up from CNY 21,011,643.60 in the previous year[50] - The company reported a net profit of 217,099,497.75 yuan for 2013, showing a significant increase compared to previous years[92] - The total comprehensive income for the year was RMB 230,275,234.21, which is a 40.8% increase from RMB 163,435,467.77 in the previous year[177] - The net profit for the year was RMB 218,494,368.05, up 19.0% from RMB 183,633,072.43 in the prior year[177] Assets and Liabilities - The total assets at the end of 2013 were CNY 3,887,821,827.51, a decrease of 3.56% from CNY 4,031,355,630.96 at the end of 2012[24] - The company's total liabilities included short-term loans of CNY 1,083,600,000, which decreased by 11.9% from the previous year[50] - The total equity attributable to shareholders increased to RMB 1,383,956,337.23 from RMB 1,195,251,641.32, marking an increase of approximately 15.7%[175] - The company's total liabilities were RMB 2,330,874,217.09, down from RMB 2,664,507,586.75 at the beginning of the year, indicating a reduction of approximately 12.5%[175] - The company's cash and cash equivalents decreased to RMB 361,710,421.65 from RMB 561,313,699.87, representing a decline of approximately 35.6%[173] Investments and Dividends - The company plans to distribute a cash dividend of CNY 0.30 per 10 shares to all shareholders[7] - The cash dividend proposal for 2013 is to distribute 0.3 yuan per 10 shares, totaling 9,271,308 yuan, which is 4.27% of the net profit attributable to shareholders[92] - The company has made significant investments in Jiangsu Jiangnan Water Co. and Jiangsu Bank, yielding substantial returns, with current market values exceeding initial investment costs[53] - The company has invested CNY 30,000,000 in establishing a private hospital, with CNY 500,000 allocated in the current reporting period[66] Operational Efficiency - The company implemented lean production management strategies, significantly enhancing operational efficiency and profitability[29] - The company’s production volume increased by 34% to 201,000 sets, reflecting strong customer demand and new project developments[35] - The company has implemented cost-reduction strategies across its subsidiaries, improving production efficiency and profitability[61] Market Position and Strategy - The company maintains a leading market share in the automotive bumper sector, leveraging advantages in technology, product quality, and brand influence[52] - The company is focusing on enhancing its core competitiveness through increased R&D investment, particularly in new products and technologies to meet stringent client requirements[31] - The company is committed to diversifying its business, with ongoing projects in casting and private hospitals expected to contribute to profit growth[77] - The company plans to enhance its core competitiveness by increasing R&D investment and focusing on technological innovation in the automotive parts sector[73] Governance and Compliance - The company has established a comprehensive internal control system to protect the interests of shareholders, especially minority shareholders[94] - The company emphasizes the importance of social responsibility and aims to balance economic and social benefits[95] - The company has not experienced any significant accounting errors requiring restatement during the reporting period[85] - The company strictly adheres to corporate governance standards and has established a system for managing insider information to prevent insider trading risks[142] Future Outlook - The estimated cumulative net profit for the first quarter of 2014 is expected to increase by 7,225.5 million CNY, representing a growth of 200% compared to the same period last year[67] - The Chinese automotive market demand is forecasted to be between 23.85 million and 24.29 million vehicles in 2014, with a growth rate of approximately 8% to 10%[70] - The company aims to gradually establish a strong profit growth point through the development of private hospitals[78] Related Party Transactions - The total amount of related party transactions for the year reached 62.6 million yuan, with significant transactions including 29.79 million yuan from sales to Beijing Beiqi Moulding Technology Co., Ltd.[107] - Related party transactions accounted for 10.27% of total sales, indicating a relatively small impact on the company's independence[107] - The company aims to further reduce reliance on related party transactions and improve its supply chain management[107] Human Resources - The company emphasizes talent retention and development as a core competitive advantage to mitigate human resource risks[80] - The total compensation for all directors, supervisors, and senior management during the reporting period amounted to 1.257 million CNY[138] - The company has implemented a salary system based on job evaluation and market wage orientation, providing competitive salary standards for employees[139]