Financial Performance - The financial report covers the period from January 1, 2022, to June 30, 2022, with comparisons to the same period in the previous year[16]. - The company's operating revenue for the first half of 2022 was ¥362,610,310.24, representing a 9.33% increase compared to ¥331,657,341.10 in the same period last year[22]. - Net profit attributable to shareholders was ¥52,173,184.01, up 3.05% from ¥50,628,071.72 year-on-year[22]. - The net cash flow from operating activities decreased by 28.21% to ¥22,276,874.53 from ¥31,032,764.68 in the previous year[22]. - Total assets increased by 61.93% to ¥1,475,057,741.57 compared to ¥910,904,474.80 at the end of the previous year[22]. - The net assets attributable to shareholders rose by 113.39% to ¥943,403,151.03 from ¥442,106,988.30 at the end of the previous year[22]. - The company reported a basic and diluted earnings per share of ¥0.64, reflecting a 1.59% increase from ¥0.63 in the previous year[22]. - The operating cost increased by 12.22% to ¥253,350,584.84 from ¥225,755,262.98, resulting in a gross margin of 30.13%[83]. - Research and development expenses decreased by 4.76% to ¥14,257,807.47 from ¥14,969,646.13[79]. - The company reported a total comprehensive income of CNY 52,509,927.77 for the first half of 2022, compared to CNY 51,757,616.46 in the same period last year[187]. Dividend Distribution - The company plans to distribute a cash dividend of 2.50 RMB per 10 shares to all shareholders, based on a total of 107,933,334 shares[5]. - The total distributable profit for the period is reported at 166,922,376.85 yuan, with cash dividends accounting for 100% of the profit distribution[114]. Risk Management - The report emphasizes the importance of accurate financial reporting, with the management team affirming the completeness and truthfulness of the financial statements[4]. - The company has outlined potential risk factors and corresponding mitigation strategies in the management discussion section[5]. - The company faces risks related to fluctuations in raw material prices and has taken measures to control production and procurement costs[104][105]. - The company’s gross margin may decline due to rising labor costs and electricity prices, necessitating the development of high-margin products to cope[106]. - The company’s accounts receivable balance continues to increase, requiring enhanced customer credit risk management and collection plans[107]. Market and Industry Insights - The company primarily engages in the manufacturing of precision mechanical components, including pistons, bearings, cylinders, crankshafts, and main housings, which are widely used in air conditioning compressors and automotive parts[30]. - The air conditioning market in China has seen rapid growth, with total production reaching 21,064.60 million units in 2020, an increase of 8.11 times since 2001[36]. - The home air conditioning industry in China is dominated by Midea Group and Gree Electric, which together accounted for 67.50% of the domestic sales share in the 2020 cooling year[37]. - The automotive industry in China saw a recovery in 2020, with continuous positive growth in vehicle sales for nine consecutive months starting from April, following the initial pandemic impact[51]. - The market for energy-efficient and smart air conditioners is expected to grow, driven by government initiatives and consumer demand for upgraded products[43]. Corporate Governance and Compliance - The company has maintained its contact information and disclosure practices without changes during the reporting period[19]. - The management team is led by Liu Ruixing, who serves as the legal representative[17]. - The company has a commitment to transparency, with all board members present for the report's review[5]. - The report is available for public access on the designated website for investor relations[20]. - There were no significant environmental issues or administrative penalties reported during the period, indicating compliance with environmental regulations[120]. - The company has not engaged in any non-operating fund occupation by major shareholders or related parties during the reporting period[131]. - The company has not made any external guarantees that violate regulations during the reporting period[132]. - The company has no significant related party transactions during the reporting period, including asset or equity acquisitions[138]. Investment and Capital Structure - The company raised a total of RMB 519,429,179.50 through its initial public offering, with a net amount of RMB 448,786,234.96 after deducting issuance costs[96]. - The company completed its initial public offering (IPO) on June 30, 2022, issuing 26,983,334 shares at a price of RMB 19.25 per share[153]. - The total number of shares increased from 80,950,000 to 107,933,334 after the IPO, resulting in a dilution of earnings per share[160]. - The company has committed to invest RMB 44,878.62 million in various projects, with no funds utilized in the reporting period[98]. - The company is expanding its production capacity with a new project aimed at producing 38 million air conditioning compressor parts and 2 million brake discs, with a total investment of RMB 13,904.31 million[98]. Future Outlook and Strategic Initiatives - The company plans to enhance product competitiveness and market position through research and development of new products and technological innovation[102]. - The company will strengthen cooperation with other air conditioning compressor clients and gradually expand into new markets for refrigerator compressors and automotive parts[103]. - The company is focusing on expanding its market presence and investing in new technologies to drive future growth[180].