Financial Performance - The company's operating revenue for Q3 2021 was ¥175,213,900.10, representing a year-on-year increase of 0.57%, while the total revenue from the beginning of the year to the end of the reporting period reached ¥587,869,682.07, up 31.40% year-on-year[2]. - The net profit attributable to shareholders of the listed company for Q3 2021 was -¥1,279,450.91, a decrease of 80.43% compared to the same period last year, with a cumulative net profit of -¥8,061,998.96 for the year, down 75.11% year-on-year[2]. - The basic earnings per share for Q3 2021 was -¥0.0040, a decrease of 80.49% year-on-year, while the diluted earnings per share also stood at -¥0.0040[2]. - The total comprehensive income attributable to the parent company for Q3 2021 was -8,061,998.96 CNY, compared to -32,393,156.12 CNY in the same period last year, indicating an improvement[18]. - The company reported a gross profit margin of approximately -2.4% for the quarter, compared to -8.9% in the same quarter last year[16]. Cash Flow - The net cash flow from operating activities for the year-to-date was ¥35,350,250.29, showing a significant increase of 12,887.90% compared to the same period last year[2]. - Cash inflow from operating activities for Q3 2021 was 470,762,102.84 CNY, up from 398,378,449.98 CNY in the same period last year, representing an increase of approximately 18.1%[20]. - Cash outflow from operating activities for Q3 2021 totaled 435,411,852.55 CNY, compared to 398,106,271.67 CNY in the previous year, reflecting an increase of about 9.4%[20]. - The net cash flow from operating activities for Q3 2021 was 35,350,250.29 CNY, a significant increase from 272,178.31 CNY in the same period last year[20]. - The net cash flow from investing activities for Q3 2021 was -28,688,902.04 CNY, compared to -52,027,961.34 CNY in the previous year, showing an improvement[21]. - Cash inflow from financing activities for Q3 2021 was 74,930,417.02 CNY, down from 146,949,545.92 CNY in the same period last year[21]. - The net cash flow from financing activities for Q3 2021 was -66,236,980.16 CNY, compared to 8,569,188.21 CNY in the previous year, indicating a decline[21]. - The cash and cash equivalents at the end of Q3 2021 were 62,886,376.95 CNY, down from 113,855,933.84 CNY at the end of the previous year[21]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,330,952,927.21, a decrease of 1.05% from the end of the previous year[4]. - The equity attributable to shareholders of the listed company was ¥871,523,383.23, down 0.41% from the end of the previous year[4]. - Total current assets amounted to ¥547.78 million, slightly down from ¥550.52 million, a decrease of about 0.5%[13]. - Total liabilities decreased to CNY 459,572,953.58 from CNY 470,219,019.22 in the previous quarter[15]. - The company's equity attributable to shareholders was CNY 871,523,383.23, down from CNY 875,090,592.60 in the previous quarter[15]. - The total liabilities amounted to CNY 470,219,019.22, while total equity was CNY 874,885,189.03[24]. - The company has an undistributed profit of CNY -71,366,092.09, indicating a negative retained earnings situation[24]. - The non-current liabilities included lease liabilities of CNY 10,565,428.52 and long-term payables of CNY 5,163,123.82[23]. Shareholder Information - The company had a total of 23,015 common shareholders at the end of the reporting period[9]. - The largest shareholder, Southern Industrial Asset Management Co., Ltd., held 39.43% of the shares, totaling 125,605,626 shares[9]. Operational Highlights - The company reported a significant increase in sales volume and revenue from connecting rod products, contributing to the overall revenue growth[8]. - Research and development expenses increased to CNY 21,265,670.91, compared to CNY 19,542,254.56 in the same quarter last year, reflecting a growth of 8.8%[17]. - The company reported a significant increase in prepayments, which rose to ¥22.00 million from ¥7.88 million, marking an increase of approximately 179.4%[13]. Future Outlook and Engagement - The company has completed the share reduction plan by the controlling shareholder, which may impact future capital structure[12]. - The company is expected to hold an online performance briefing for the 2020 annual report, indicating ongoing engagement with investors[12]. - The company plans to continue its financial service agreements with related parties, which may enhance operational efficiency[12]. Audit and Compliance - The report indicates that the third quarter report was not audited[25].

Financial Performance - The company's operating revenue for the first half of 2021 was ¥412,655,781.95, representing a 51.05% increase compared to ¥273,184,485.27 in the same period last year[23]. - The net profit attributable to shareholders of the listed company was -¥6,782,548.05, an improvement of 73.77% from -¥25,854,616.02 in the previous year[23]. - The net cash flow from operating activities was ¥30,567,410.81, a significant increase of 170.57% compared to -¥43,315,550.94 in the same period last year[23]. - The basic and diluted earnings per share were both -¥0.021, showing a 74.07% improvement from -¥0.081 in the previous year[23]. - The company reported a net loss of -¥10,344,743.51 after deducting non-recurring gains and losses, which is a 64.17% improvement from -¥28,867,940.30 in the previous year[23]. - The company reported a significant decrease in investment, with total investments of 787.11 thousand yuan, down 80.81% compared to the same period last year[48]. - The company reported a net loss of CNY 72,216,215.09, compared to a loss of CNY 71,366,092.09 in the previous period[132]. - The company reported a total sales amount of 5,994.22 million yuan for the period[83]. Revenue and Costs - The revenue from automotive connecting rods reached CNY 363,197,869.40, accounting for 88.01% of total revenue, with a year-on-year growth of 69.35%[41]. - Operating costs rose by 37.7% year-on-year, mainly due to increased revenue and corresponding rises in wages, fuel, and manufacturing expenses[43]. - Total operating costs amounted to ¥420,937,383.73, up 38.8% from ¥303,110,324.20 year-on-year[139]. - The gross profit margin for connecting rod products has improved due to a focus on higher-margin mid-to-high-end passenger car connecting rods[33]. - The gross profit margin for the mechanical manufacturing sector was 16.60%, reflecting an increase of 8.09% compared to the same period last year[43]. - The company reported a gross profit margin of approximately -2.8% for the first half of 2021, compared to -4.8% in the previous year[139]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,340,614,025.26, a slight decrease of 0.33% from ¥1,345,104,208.25 at the end of the previous year[23]. - The total liabilities decreased slightly to CNY 466,084,724.00 from CNY 470,219,019.22, indicating a decrease of about 0.7%[131]. - The total equity decreased to ¥906,220,344.32 from ¥921,941,899.60 in the previous year, reflecting a decline of 1.7%[139]. - The company's cash and cash equivalents decreased from ¥122,711,551.27 at the end of 2020 to ¥68,554,256.74 by June 30, 2021, a decline of approximately 44%[128]. - Accounts receivable increased to 244.49 million yuan, representing 18.24% of total assets, up from 13.22% the previous year[44]. - The company's fixed assets decreased to CNY 574,821,467.07 from CNY 607,686,574.84, a reduction of approximately 5.4%[130]. Cash Flow - The net cash flow from operating activities improved significantly, reaching CNY 30,567,410.81, a 170.57% increase compared to the previous year[39]. - Cash inflow from operating activities totaled CNY 344,288,084.00, up from CNY 212,417,089.90, reflecting a growth of 62.0%[148]. - Cash outflow from operating activities increased to CNY 313,720,673.19 from CNY 255,732,640.84, an increase of 22.6%[148]. - The company reported a net decrease in cash and cash equivalents of CNY 54,157,294.53, compared to a decrease of CNY 84,327,976.63 in the previous period[149]. - The ending balance of cash and cash equivalents was 24,131,750.11 CNY, a decrease from 45,442,926.54 CNY at the end of the previous period[151]. Research and Development - Research and development expenses increased by 179.37% to CNY 21,265,670.91, reflecting the company's commitment to innovation[39]. - Research and development expenses increased to ¥21,265,670.91, representing a rise of 178.1% compared to ¥7,612,009.01 in the previous year[139]. Shareholder Information - The total number of shares is 318,566,172, with 95.81% being unrestricted shares[109]. - The largest shareholder, Southern Industrial Asset Management Co., Ltd., holds 39.43% of the shares, totaling 125,605,626 shares[113]. - The total number of common shareholders at the end of the reporting period was 24,730[111]. - The company has no plans to distribute cash dividends or issue bonus shares for the half-year period[63]. Risk Management - The company faces price risk due to weak bargaining power with customers and price reductions from main engine manufacturers, which could lead to decreased revenue and profits[58]. - The company has implemented measures to enhance internal cost accounting and price management to mitigate price risks[58]. - The company plans to manage cash flow risks by establishing a cash warning control system and conducting detailed investment analysis to avoid blind investments[60]. - The company will continuously improve the accounts receivable risk management system to enhance awareness of bad debt risk and strengthen customer risk assessment[60]. Compliance and Governance - The company and its subsidiaries are not classified as key pollutant discharge units and have not faced any administrative penalties for environmental issues during the reporting period[67]. - The company respects and maintains the legitimate rights of stakeholders, promoting balanced interests among shareholders, employees, and society[68]. - The company has not reported any new product launches or technological advancements in the current period[158]. - The financial report for the half-year has not been audited[77].

Financial Performance - The company's operating revenue for Q1 2021 was ¥222,189,368.42, representing a 135.22% increase compared to ¥94,460,264.80 in the same period last year[9] - The net profit attributable to shareholders was -¥1,520,935.13, an improvement of 91.94% from -¥18,881,511.43 year-on-year[9] - The net cash flow from operating activities was -¥13,837,372.62, showing a 45.32% improvement compared to -¥25,304,062.98 in the previous year[9] - Operating profit increased by 94.87% year-on-year, as the growth in operating revenue outpaced the increase in operating costs[20] - The company reported a significant increase in sales revenue from connecting rod products, contributing to improved operating performance[32] - The total operating profit for the current period was -11,251,939.49, compared to -9,211,327.54 in the previous period, indicating a decline of approximately 22.1%[74] - The net profit for the current period was -9,770,333.37, slightly worse than -9,014,763.88 from the previous period, reflecting an increase in losses of about 8.4%[74] - The total comprehensive income for Q1 2021 was a loss of CNY 1,448,529.44, compared to a loss of CNY 19,191,625.63 in the previous year[67] Assets and Liabilities - The company's total assets at the end of the reporting period were ¥1,346,732,253.05, a slight increase of 0.12% from ¥1,345,104,208.25 at the end of the previous year[9] - Total non-current assets were reported at CNY 779,502,772.99, down from CNY 794,580,708.54[45] - Current liabilities totaled CNY 454,839,113.00, compared to CNY 450,562,156.41, indicating a slight increase[48] - The total liabilities amounted to CNY 472,450,975.81, up from CNY 470,219,019.22[48] - The equity attributable to shareholders was CNY 874,414,275.12, a decrease from CNY 875,090,592.60[51] Cash Flow - Cash received from tax refunds increased by 11,465.80% year-on-year, attributed to a rise in tax refunds received by the subsidiary[21] - Cash flow from investment activities increased by 40.78% year-on-year, driven by cash received from asset disposals[21] - Cash inflows from operating activities totaled 134,116,864.82, up from 115,797,441.77 in the previous period, representing an increase of approximately 15.7%[75] - Cash outflows from operating activities were 147,954,237.44, compared to 141,101,504.75 in the previous period, indicating an increase of about 4.0%[78] - Cash and cash equivalents decreased to CNY 68,484,476.96 from CNY 122,711,551.27, a decline of approximately 44.6%[42] - The company reported cash inflows from financing activities of 1,081,689.71, compared to 49,951,430.87 in the previous period, indicating a significant decline of approximately 97.8%[81] - The cash inflow from financing activities was $581,689.71, while the cash outflow amounted to $733,565.93, leading to a net cash flow of -$151,876.22 from financing activities[85] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 24,450, with the top ten shareholders holding a combined 61.02% of the shares[13] - Basic earnings per share are expected to be -0.031 yuan, reflecting a 61.73% increase compared to the previous year[32] - The basic and diluted earnings per share for Q1 2021 were both CNY -0.0048, compared to CNY -0.0593 in Q1 2020, showing an improvement in loss per share[66] Operational Insights - Accounts receivable increased by 31.48% compared to the beginning of the period, primarily due to increased sales revenue from connecting rods[19] - Prepayments increased by 128.30% compared to the beginning of the period, mainly due to increased prepayments by the wholly-owned subsidiary Chengde Galaxy[19] - The company's gross profit margin improved as operating costs increased by 117.24%, reflecting the rise in sales of connecting rod products[19] - Research and development expenses in Q1 2021 were CNY 9,759,499.35, up from CNY 4,092,345.83 in the same quarter last year, reflecting an increase of approximately 138.5%[61] Future Outlook - The company anticipates a net loss for the first half of 2021, with a projected net profit attributable to shareholders ranging from -1,000 to -500 thousand yuan, representing a 61.32% decrease compared to the previous year[32] - The company plans to continue focusing on market expansion and new product development to drive future growth[68] Reporting and Compliance - The first quarter report for 2021 was not audited, which may affect the reliability of the financial data presented[88] - The company did not apply the new leasing standards for the first quarter of 2021, indicating no adjustments to prior financial statements[86]

Financial Performance - The company's operating revenue for 2020 was ¥639,082,821.38, a decrease of 14.42% compared to ¥746,793,328.15 in 2019[22] - The net profit attributable to shareholders for 2020 was -¥58,768,573.45, representing a decline of 933.84% from a profit of ¥7,047,904.05 in 2019[22] - The net cash flow from operating activities was ¥69,345,775.84, down 45.71% from ¥127,739,511.28 in the previous year[22] - The basic earnings per share for 2020 was -¥0.18, a decrease of 1,000.00% compared to ¥0.02 in 2019[22] - Total assets at the end of 2020 were ¥1,345,104,208.25, a decrease of 7.58% from ¥1,455,461,931.12 at the end of 2019[22] - The company's net assets attributable to shareholders decreased by 6.74% to ¥875,090,592.60 at the end of 2020 from ¥938,373,694.67 at the end of 2019[22] - Total revenue for 2020 was ¥639,082,821.38, a decrease of 14.42% compared to ¥746,793,328.15 in 2019[48] - The automotive connecting rod segment contributed ¥545,294,912.49, accounting for 85.32% of total revenue, with a slight decrease of 2.14% year-over-year[48] - The company reported a 58.40% decline in revenue from other industrial products, which totaled ¥66,385,994.94[48] - Total operating costs for 2020 were ¥573,037,958.27, a decrease of 9.21% compared to the previous year[51] Operational Efficiency - In Q1 2020, the company reported a revenue of ¥94,460,264.80, which increased to ¥191,685,073.45 in Q4 2020, showing a significant growth in revenue over the year[27] - The net cash flow from operating activities turned positive in Q3 2020 at ¥43,587,729.25 and further increased to ¥69,073,597.53 in Q4 2020, suggesting improved operational efficiency[27] - The company maintained a stable production volume of automotive engine connecting rods at 1,762,000 units, a 2.50% increase from 2019[52] Market and Industry Challenges - The company faced a decline in main business revenue and profit due to the COVID-19 pandemic, with rising raw material and logistics costs impacting performance[46] - The company has been impacted by a slow recovery in the automotive parts market, which has affected its sales and profitability[46] - Government subsidies decreased significantly, impacting overall financial performance, with a total of ¥12,373,775.71 recorded in 2020 compared to ¥39,933,010.78 in 2019[29] Strategic Focus and Future Plans - The company plans to focus on the high-margin mid-to-high-end passenger car connecting rod market to enhance profitability[36] - The company aims to strengthen its connecting rod business and enhance its competitiveness in the automotive parts industry during the "14th Five-Year Plan" period[93] - The automotive parts market in China is projected to reach 25.23 million units in 2021, indicating significant growth potential[93] - The company plans to achieve operating revenue of CNY 704.5 million and a net profit of CNY 8 million in 2021, subject to market conditions and operational efforts[93] Research and Development - Research and development expenses increased by 16.64% to ¥33,971,795.56, reflecting the company's commitment to technological advancement[63] - R&D investment increased by 11.60% to ¥32,503,796.32 in 2020, accounting for 5.09% of operating revenue[66] - The number of R&D personnel decreased by 2.06% to 238, while their proportion of total employees rose to 12.65%[66] - The company has a complete product development capability and operates under the international TS16949 quality management system, enhancing product quality and management standards[40] Shareholder and Governance - The company plans not to distribute cash dividends or issue bonus shares for the year[6] - The company has not proposed any cash dividend distribution or capital reserve transfer to increase share capital for the past three years due to negative distributable profits[101] - The company has committed to maximizing shareholder interests while enhancing internal management and market expansion efforts[96] - The company has not engaged in any research, communication, or interview activities during the reporting period[97] - The company is currently fulfilling commitments made by its major shareholders to maintain independence and avoid conflicts of interest[106] Accounting and Compliance - The company reported a significant change in accounting policy, adopting the revised revenue recognition standard effective January 1, 2020, which is expected to provide a more objective reflection of financial status[113] - The audit firm was changed to Dahua Certified Public Accountants with an audit fee of RMB 480,000 for the 2020 fiscal year[120] - There were no significant accounting errors that required retrospective restatement during the reporting period[118] - The company has implemented measures to ensure compliance with tax obligations, including the payment of overdue taxes and penalties[116] Related Party Transactions - The company reported a related party transaction involving the sale of automotive engine connecting rods to Chongqing Changan Automobile Co., amounting to RMB 73.93 million, accounting for 11.57% of similar transactions[131] - There were no significant asset or equity acquisition or sale related party transactions during the reporting period[132] Social Responsibility - The company emphasizes its commitment to social responsibility and stakeholder rights[147] - The company is not classified as a key pollutant discharge unit by environmental protection authorities[152]

Financial Performance - Operating revenue for the reporting period was ¥174,213,262.66, representing an increase of 16.58% year-on-year[8]. - Net profit attributable to shareholders was -¥6,538,540.10, a decrease of 60.72% compared to the same period last year[8]. - Basic earnings per share were -¥0.0205, reflecting a decrease of 60.80% year-on-year[8]. - Total profit decreased by 43.56% year-on-year, mainly due to revenue not meeting expectations and high cost expenses[21]. - The company reported a net loss of CNY 44,990,674.76 for the period, compared to a loss of CNY 12,597,518.64 in the previous year[42]. - The net profit attributable to the parent company for Q3 2020 was -32,393,156.12 CNY, compared to -22,484,639.99 CNY in the same period last year, indicating a decline of approximately 44.2%[54]. - The total comprehensive income for Q3 2020 was -32,813,505.22 CNY, compared to -22,477,170.54 CNY in the previous year, reflecting a decrease of about 46%[55]. - The total profit (loss) for Q3 2020 was -21,699,929.05 CNY, compared to -12,643,618.31 CNY in the same period last year, indicating a decline of approximately 71.6%[59]. Cash Flow - The net cash flow from operating activities was ¥43,587,729.25, a significant increase of 618.78% compared to the previous period[8]. - Operating cash flow net amount decreased by 98.82% year-on-year, primarily due to a decrease in cash inflow from operating activities while cash outflow increased[22]. - Cash inflow from operating activities for Q3 2020 was 398,378,449.98 CNY, slightly down from 413,147,362.08 CNY in the same period last year, a decrease of about 3.6%[63]. - The net cash flow from operating activities for the third quarter was 25,358,970.98 CNY, a significant improvement compared to a net outflow of 52,910,893.15 CNY in the same period last year[69]. - The total cash inflow from operating activities was 204,492,973.46 CNY, a decrease from 226,894,181.74 CNY year-over-year[68]. Assets and Liabilities - Total assets at the end of the reporting period amounted to ¥1,437,116,877.41, a decrease of 1.26% compared to the end of the previous year[8]. - The company's current assets totaled CNY 655,945,130.53, slightly up from CNY 643,336,368.83 at the end of 2019, indicating a 2.5% increase[38]. - Total liabilities rose to CNY 535,203,486.97 from CNY 515,805,385.56, which is an increase of about 3.8%[41]. - The company's equity attributable to shareholders decreased to CNY 901,076,062.07 from CNY 938,373,694.67, a decline of approximately 4.0%[42]. - Total assets decreased to CNY 1,100,344,298.34 from CNY 1,155,618,559.29 at the end of the previous quarter[45]. - Total liabilities decreased to CNY 202,566,532.59 from CNY 232,092,327.84 year-over-year[45]. Shareholder Information - The company reported a total of 26,356 shareholders at the end of the reporting period[12]. - The top shareholder, Southern Industrial Asset Management Co., Ltd., held 39.43% of the shares, totaling 125,605,626 shares[12]. - The company has not conducted any repurchase transactions among the top 10 shareholders during the reporting period[17]. Expenses - Research and development expenses increased to CNY 11,930,245.55, compared to CNY 6,785,768.13 in the same quarter last year, reflecting a 76.5% increase[46]. - The company reported a decrease in financial expenses to CNY 242,153.59 from CNY 1,004,029.42, a reduction of approximately 76.1%[49]. - The company has recorded a significant drop in sales expenses, which decreased to CNY 1,426,791.49 from CNY 2,593,379.85, a decline of 45%[49]. Other Financial Metrics - The weighted average return on net assets was -0.72%, a decline of 1.14% compared to the previous year[8]. - The company recorded non-recurring gains and losses totaling ¥7,436,716.84 for the reporting period[8]. - Financial expenses decreased by 52.82% year-on-year, mainly due to a reduction in interest expenses from military trade interest subsidies of 1.94 million yuan[21]. - Other income decreased by 51.57% year-on-year, primarily due to a decrease in government subsidies received[21].

Financial Performance - The company's operating revenue for the first half of 2020 was ¥273,184,485.27, a decrease of 22.64% compared to ¥353,123,043.80 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was -¥25,854,616.02, compared to -¥5,705,907.14 in the previous year[20]. - The net cash flow from operating activities was -¥43,315,550.94, a decline of 237.83% from ¥31,426,811.75 in the same period last year[20]. - The total assets at the end of the reporting period were ¥1,386,436,199.27, down 4.74% from ¥1,455,461,931.12 at the end of the previous year[20]. - The net assets attributable to shareholders of the listed company decreased by 2.77%, from ¥938,373,694.67 to ¥912,386,721.59[20]. - The basic and diluted earnings per share were both -¥0.081, compared to -¥0.018 in the same period last year[20]. - The weighted average return on net assets was -2.79%, compared to -0.63% in the previous year[20]. - The company reported a projected cumulative net profit loss of between -41 million to -30 million yuan, representing a decrease of 82.41% compared to the previous year[79]. - Basic earnings per share are expected to be between -0.13 to -0.09 yuan, a decline of 84.14% year-over-year[79]. - The company reported a net loss of ¥38,452,134.66 in retained earnings, compared to a loss of ¥12,597,518.64 previously[175]. - The net loss for the first half of 2020 was CNY -26,613,497.30, compared to a net loss of CNY -5,772,079.38 in the same period of 2019[186]. - Total profit amounted to -10,366,909.46, a decrease from -1,241,480.68 year-over-year, reflecting ongoing financial challenges[198]. Revenue Breakdown - Sales revenue from connecting rods was CNY 214.46 million, down 17.27% year-on-year, with a gross margin decline of 5.34 percentage points due to rising raw material costs and price reductions[39]. - Revenue from other industrial products fell to CNY 50.17 million, a decrease of 37.47% year-on-year, primarily due to reduced exports amid the pandemic[39]. - Revenue from automotive connecting rods was ¥214,461,511.12, accounting for 78.50% of total revenue, down 17.27% from ¥259,217,059.25[44]. - The gross profit margin for the machinery manufacturing industry was 8.51%, a decrease of 4.69% compared to the previous year[44]. - Total operating revenue for the first half of 2020 was CNY 273,184,485.27, a decrease of 22.67% compared to CNY 353,123,043.80 in the first half of 2019[184]. Cash Flow and Assets - Cash and cash equivalents decreased by ¥84,327,976.63, reflecting a 10,875.52% decline compared to the previous year[47]. - The company's cash and cash equivalents decreased from ¥87,173,911.53 to ¥45,442,926.54, a decline of approximately 48.1%[176]. - The company's total equity decreased from ¥515,805,385.56 to ¥473,542,759.43, a decline of about 8.2%[171]. - Current assets decreased from ¥643,336,368.83 to ¥595,583,917.04, a decline of about 7.4%[171]. - Non-current assets decreased from ¥812,125,562.29 to ¥790,852,282.23, a decline of approximately 2.9%[171]. - Total liabilities decreased from ¥939,656,545.56 to ¥912,893,439.84, a decline of about 2.8%[175]. - Current liabilities decreased from ¥413,192,156.36 to ¥381,054,710.99, a decline of approximately 7.8%[171]. - Accounts receivable slightly decreased from 249,110,835.43 RMB at the end of 2019 to 246,968,480.42 RMB by June 30, 2020[166]. - Inventory increased from 144,410,500.58 RMB at the end of 2019 to 158,669,209.97 RMB by June 30, 2020, an increase of approximately 9.9%[166]. Research and Development - The company has invested CNY 7.61 million in R&D, a decrease of 8.58% compared to the previous year, reflecting ongoing efforts to enhance product development capabilities[40]. - Research and development expenses for the first half of 2020 were CNY 7,612,009.01, a decrease from CNY 8,326,404.56 in the first half of 2019[184]. Strategic Focus and Challenges - The company anticipates continued challenges in the second half of 2020 due to ongoing market uncertainties and pressure from main engine manufacturers to reduce prices[39]. - The company is focusing on improving inventory management to reduce excess stock and enhance turnover rates[83]. - The company plans to enhance internal cost accounting and pricing management to mitigate pricing risks from customer negotiations[80]. - The company is likely to face continued challenges in the upcoming quarters unless significant changes are implemented[197]. Shareholder Information - The total share count was 318,566,172, with 95.44% being unrestricted shares[134]. - The largest shareholder, Chengde Youjia Investment Consulting Center, had 375,937 restricted shares lifted on March 6, 2020[138]. - The company’s shareholder structure includes 7,696,421 shares held by state-owned entities, accounting for 2.42% of total shares[134]. - The total number of common shareholders at the end of the reporting period was 29,917[142]. Risk Management - The company faced significant risks and has outlined measures to address these risks in the report[4]. - The company is facing human resource risks due to difficulties in attracting high-level management and technical talent, which may impact management performance and market competitiveness[84]. - Measures to address human resource risks include improving personnel risk management systems and enhancing the compensation system for key talents[84]. Miscellaneous - The company has not reported any major asset or equity sales during the reporting period[73]. - The company has not experienced any changes in the feasibility of its fundraising projects during the reporting period[67]. - The company has not reported any significant environmental protection issues or major social responsibility initiatives during the reporting period[122]. - The half-year financial report has not been audited[94].

Financial Performance - The company's operating revenue for Q1 2020 was ¥94,460,264.80, a decrease of 45.93% compared to ¥174,704,083.18 in the same period last year[8] - The net profit attributable to shareholders for Q1 2020 was -¥18,881,511.43, representing a decline of 291.64% from -¥4,821,170.41 in the previous year[8] - Basic and diluted earnings per share for Q1 2020 were both -¥0.0593, down 292.72% from -¥0.0151 in the previous year[8] - The net profit for the first half of 2020 is expected to be negative, estimated at -35 million yuan, compared to -5.706 million yuan in the same period of 2019, indicating a significant decline in profitability[26] - The decline in revenue and profit was attributed to the impact of the pandemic, which led to decreased exports and increased raw material and logistics costs[20] - The total operating profit for Q1 2020 was -9,211,327.54 CNY, compared to -2,547,379.48 CNY in the same period last year, indicating a significant decline[53] - The total profit for the period was -9,014,763.88 CNY, down from -2,629,089.48 CNY year-over-year[53] - The net profit for Q1 2020 was -9,014,763.88 CNY, reflecting a worsening performance compared to -2,629,089.48 CNY in Q1 2019[54] Cash Flow and Liquidity - The net cash flow from operating activities was -¥25,304,062.98, a decrease of 314.46% compared to ¥11,799,130.32 in the same period last year[8] - As of March 31, 2020, the company's cash and cash equivalents amounted to 110.8 million yuan, down from 157.3 million yuan at the end of 2019, reflecting a liquidity contraction[36] - Cash flow from operating activities showed a net outflow of -25,304,062.98 CNY, a decline from a net inflow of 11,799,130.32 CNY in the same quarter last year[56] - The ending cash and cash equivalents balance was 110,795,379.90 CNY, down from 156,705,887.76 CNY at the end of the previous year[57] - The ending balance of cash and cash equivalents was 50,020,638.40 CNY, down from 70,043,699.34 CNY at the end of Q1 2019[61] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,393,127,476.85, a decrease of 4.28% from ¥1,455,461,931.12 at the end of the previous year[8] - The net assets attributable to shareholders were ¥919,621,196.58, down 2.00% from ¥938,373,694.67 at the end of the previous year[8] - Total liabilities decreased from CNY 515,805,385.56 to CNY 472,536,639.66, a decline of about 8.36%[39] - Current liabilities decreased from CNY 413,192,156.36 to CNY 387,919,591.22, a reduction of about 6.09%[39] - Long-term borrowings decreased from CNY 80,800,000.00 to CNY 62,600,000.00, a decrease of 22.49%[39] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 31,273[11] - The largest shareholder, Southern Industrial Asset Management Co., Ltd., held 39.43% of the shares[11] Operational Insights - The company reported a non-operating income of ¥545,644.63 during the reporting period[8] - The company has ongoing commitments to maintain independence and avoid competition from major shareholders, which may impact strategic decisions[23] - The company is currently fulfilling its commitments regarding the issuance of shares for asset purchases and ensuring no unfair benefits are provided to other parties[23] - There were no reported violations regarding external guarantees or non-operating fund occupation by major shareholders during the reporting period[31][32] - The company has not engaged in any securities investments or entrusted financial management during the reporting period[27][28] Inventory and Receivables - Accounts receivable decreased to 199.2 million yuan from 249.1 million yuan year-over-year, indicating a reduction in credit sales or improved collection efforts[36] - Inventory increased to 185.4 million yuan from 144.4 million yuan, suggesting potential overstocking or decreased sales turnover[36]

Financial Performance - The company's operating revenue for Q1 2020 was ¥94,460,264.80, a decrease of 45.93% compared to ¥174,704,083.18 in the same period last year[8]. - The net profit attributable to shareholders for Q1 2020 was -¥18,881,511.43, representing a decline of 291.64% from -¥4,821,170.41 in the previous year[8]. - The net cash flow from operating activities was -¥25,304,062.98, a decrease of 314.46% compared to ¥11,799,130.32 in Q1 2019[8]. - Basic and diluted earnings per share for Q1 2020 were both -¥0.6024, a significant drop of 3,889.40% from -¥0.0151 in the same quarter last year[8]. - The net profit for the first half of 2020 is expected to be negative, estimated at -35 million yuan, compared to -5.706 million yuan in the same period of 2019, indicating a significant decline in profitability[27]. - The net loss for Q1 2020 was CNY 19,191,625.63, compared to a net loss of CNY 4,827,249.30 in Q1 2019, indicating a significant increase in losses[48]. - The company reported a total comprehensive income of -9,014,763.88 CNY for Q1 2020, compared to -2,629,089.48 CNY in the same period last year[52]. Assets and Liabilities - Total assets at the end of Q1 2020 were ¥1,393,127,476.85, down 4.28% from ¥1,455,461,931.12 at the end of the previous year[8]. - The net assets attributable to shareholders decreased by 2.00% to ¥919,621,196.58 from ¥938,373,694.67 at the end of the previous year[8]. - As of March 31, 2020, the company's current assets totaled approximately 612.28 million yuan, a decrease from 643.34 million yuan at the end of 2019[38]. - Current liabilities decreased from CNY 413,192,156.36 to CNY 387,919,591.22, a reduction of about 6.09%[41]. - Long-term borrowings decreased from CNY 80,800,000.00 to CNY 62,600,000.00, a decrease of approximately 22.49%[41]. - The company's total equity decreased from CNY 939,656,545.56 to CNY 920,590,837.19, a decline of about 2.14%[42]. - The company’s total liabilities decreased from CNY 515,805,385.56 to CNY 472,536,639.66, a decline of about 8.36%[41]. Revenue and Costs - Total operating revenue for Q1 2020 was CNY 94,460,264.80, a decrease of 46% compared to CNY 174,704,083.18 in the same period last year[46]. - Total operating costs for Q1 2020 were CNY 113,860,129.64, down from CNY 180,118,412.85 year-over-year, reflecting a cost reduction strategy[47]. - The company reported a gross profit margin decline due to increased operating costs, impacting overall profitability[47]. Shareholder Information - The company had a total of 31,273 common shareholders at the end of the reporting period[12]. - The largest shareholder, Southern Industrial Asset Management, held 39.43% of the shares, totaling 125,605,626 shares[12]. Cash Flow - Cash flow from operating activities for Q1 2020 was -25,304,062.98 CNY, a decline from 11,799,130.32 CNY in the previous year[54]. - Cash inflow from operating activities totaled 115,797,441.77 CNY, down from 154,563,695.41 CNY in the same period last year[54]. - Cash outflow from operating activities was 141,101,504.75 CNY, slightly lower than 142,764,565.09 CNY in Q1 2019[54]. - The ending cash and cash equivalents balance was 110,795,379.90 CNY, down from 156,705,887.76 CNY at the end of Q1 2019[55]. Operational Challenges - The decline in revenue and profit was attributed to the impact of the pandemic, which led to decreased exports and increased raw material and logistics costs[22]. - The decrease in revenue and profit is attributed to the impact of the pandemic, which led to a decline in exports of certain products and an increase in raw material and logistics costs[27]. - The company is focusing on cost control and efficiency improvements to mitigate the impact of declining revenues and increasing losses[48]. Investments and Commitments - The company has ongoing commitments from major shareholders to maintain independence and avoid competition, which were made in 2015 and are still being fulfilled[25]. - The company has not engaged in any securities investments, entrusted financial management, or derivative investments during the reporting period[28][29][30]. - The company is currently fulfilling its commitments related to the issuance of shares for asset purchases and ensuring no unfair benefits are provided to other entities[25]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[34]. Regulatory Environment - There were no significant changes in legal regulations affecting the company during the reporting period[26].

Financial Performance - The company's operating revenue for 2019 was ¥746,793,328.15, a decrease of 2.61% compared to ¥766,790,403.50 in 2018[21] - The net profit attributable to shareholders for 2019 was ¥7,047,904.05, recovering from a loss of ¥68,387,295.06 in 2018[21] - The net cash flow from operating activities increased by 38.18% to ¥127,739,511.28 from ¥92,441,212.72 in 2018[21] - The total assets at the end of 2019 were ¥1,455,461,931.12, reflecting a growth of 4.41% from ¥1,393,990,740.16 at the end of 2018[21] - The net assets attributable to shareholders increased by 3.53% to ¥938,373,694.67 from ¥906,410,282.46 in 2018[21] - The basic earnings per share for 2019 was ¥0.02, compared to a loss of ¥0.21 in 2018[21] - The diluted earnings per share for 2019 was also ¥0.02, recovering from a loss of ¥0.21 in the previous year[21] - The weighted average return on equity for 2019 was 0.78%, a significant improvement from -7.28% in 2018[21] - The company achieved a total profit of 9.6025 million yuan in 2019, with an operating profit of -11.3275 million yuan[39] Revenue Breakdown - Revenue from other industrial products increased significantly by 150.06%, amounting to 159,595,075.55 yuan, compared to 63,823,454.95 yuan in 2018[40] - Revenue from automotive connecting rods decreased by 17.71%, totaling 557,219,799.86 yuan, down from 677,141,268.79 yuan in 2018[40] - The gross profit margin for the automotive connecting rod category was 11.06%, down by 4.92% year-on-year, with revenue decreasing by 17.71%[43] Cash Flow and Investments - The company reported a net cash flow from operating activities increased by 38.18%, attributed to an increase in recovered payments and government subsidies[56] - Total cash inflow from financing activities rose by 38.12% to ¥237,107,739.57, while cash outflow increased by 30.93% to ¥208,194,505.41, resulting in a net cash flow of ¥28,913,234.16, up 128.58%[57] - The company's total investment in 2019 was ¥227,799,800.00, representing a significant increase of 178.00% from ¥81,941,400.00 in the previous year[61] - The cash inflow from investment activities decreased by 9.34% to ¥9,703,993.15, while cash outflow increased by 60.25% to ¥186,747,101.11, leading to a net cash flow of -¥177,043,107.96[57] Operational Developments - The company has over 20 flexible connecting rod machining production lines and two subsidiaries dedicated to connecting rod production[31] - The company has established a strong customer base, including major domestic automotive manufacturers such as Changan Automobile and SAIC Group[33] - The company’s products have entered the global procurement system of several international automotive manufacturers[33] - The company has established a wholly-owned subsidiary in Yancheng, Jiangsu, on December 6, 2019, expanding its operational footprint[47] Strategic Focus and Future Outlook - The company plans not to distribute cash dividends or issue bonus shares for the year[6] - The 2020 operating plan targets a revenue of 730 million yuan, aiming to ensure profitability[70] - The company plans to focus on strengthening its connecting rod business and enhancing other industrial products to improve overall competitiveness[70] - The company acknowledges potential risks in achieving profit forecasts due to market and economic uncertainties[73] Governance and Compliance - The company has committed to maintaining the independence of the listed company and avoiding related party transactions[84] - The shareholders committed to not interfering with the company's management activities and ensuring measures to compensate for any dilution of immediate returns from asset purchases[84] - The company has implemented new accounting policies effective from January 1, 2019, including updates on financial instruments and non-monetary asset exchanges[88] - The company has maintained a continuous relationship with its accounting firm for 9 years, with an audit fee of 480,000 RMB[96] Shareholder Information - The total number of common shareholders at the end of the reporting period was 35,345, an increase from 31,273[143] - The largest shareholder, Southern Industrial Asset Management Co., Ltd., held 39.43% of the shares, totaling 125,605,626 shares[143] - The company has no preferred shares or convertible bonds during the reporting period[157][160] Employee and Management Structure - The total number of employees in the company is 2,154, with 1,295 in the parent company and 859 in major subsidiaries[176] - The company has established a fair and competitive salary management system to enhance employee motivation[177] - The training plan for employees includes various aspects such as operational skills, safety management, and communication management[178] Social Responsibility and Environmental Compliance - The company has actively fulfilled its social responsibilities, ensuring the protection of stakeholders' rights and promoting sustainable development[118] - The company has not been classified as a key pollutant discharge unit by environmental protection authorities[121]

Financial Performance - Operating revenue decreased by 13.05% to CNY 502,558,182.73 year-to-date[8] - Net profit attributable to shareholders decreased by 2,067.25% to CNY -22,484,639.99 year-to-date[8] - Basic earnings per share decreased by 2,534.48% to CNY -0.0706[8] - Total profit for the current period decreased by 580.47% year-on-year, primarily due to a decrease in revenue and an increase in costs[20] - The net loss for the period was CNY -53,251,624.71, worsening from CNY -40,608,006.40 in the previous year, indicating a decline of about 31.5%[40] - The net profit for the current period is -¥22,477,170.54, compared to a net profit of ¥911,195.52 in the previous period, indicating a significant decline[51] - The operating profit for the current period is -¥28,942,116.76, compared to -¥1,639,990.16 in the previous period, showing a worsening performance[51] - Total comprehensive loss for the current period is -¥11,402,137.63, compared to -¥9,851,434.78 in the previous period[48] Assets and Liabilities - Total assets decreased by 0.54% to CNY 1,386,511,489.87 compared to the end of the previous year[8] - Total liabilities increased to CNY 503,695,429.20, up from CNY 486,205,340.26 year-over-year, representing a growth of approximately 2.5%[33] - The company's total equity decreased to CNY 882,816,060.67 from CNY 907,785,399.90, reflecting a decline of approximately 2.8%[34] - Current assets totaled CNY 528,512,305.61, compared to CNY 489,042,054.43 in the previous year, indicating an increase of about 8.1%[38] - Long-term borrowings increased by 54.38% due to increased project financing[19] - Long-term borrowings rose to CNY 74,100,000.00, up from CNY 48,000,000.00, marking an increase of approximately 54.2%[39] Cash Flow - Cash flow from operating activities decreased by 70.30% to CNY 23,024,814.37 year-to-date[8] - Cash received from operating activities decreased by 78.18% year-on-year, mainly due to a reduction in government subsidies received in the previous year[21] - Cash inflow from operating activities was 413,147,362.08 CNY, a decrease of 19.5% from 513,135,717.93 CNY in the previous period[60] - Net cash flow from operating activities was 23,024,814.37 CNY, down 70.4% from 77,529,263.97 CNY in the previous period[62] - Cash outflow from investing activities totaled 161,462,850.90 CNY, significantly higher than 71,754,993.03 CNY in the previous period[62] - Cash inflow from financing activities was 153,092,001.95 CNY, up from 93,894,306.74 CNY in the previous period[63] - The ending balance of cash and cash equivalents was 91,154,875.39 CNY, down from 181,011,935.46 CNY in the previous period[63] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 37,251[13] - The company expects to turn a profit in 2019, with a projected net profit of 10 million yuan compared to a loss of 68.39 million yuan in 2018[24] Expenses - Management expenses decreased by 36.44% year-on-year, primarily due to reductions in employee compensation, depreciation, utilities, transportation, leasing, and repair costs[20] - Financial expenses increased by 241.10% year-on-year, mainly due to an increase in interest-bearing liabilities by 56.1 million yuan[20] - Research and development expenses for the current period are ¥6,785,768.13, reflecting ongoing investment in innovation[41] - The company has incurred research and development expenses of ¥15,112,172.69 during the current period[50] Other Income - Other income decreased significantly to ¥225,000.00 from ¥2,060,500.00 in the previous period[41] - Other income for the current period is reported at ¥6,891,979.45, down from ¥8,195,168.42 in the previous period[51] - The company reported an investment income of ¥800,000.00 for the current period[50] Audit Information - The company did not undergo an audit for the third quarter report[68]