Financial Performance - The company's operating revenue for the first half of 2020 was ¥461,716,871.43, a decrease of 10.98% compared to ¥518,646,217.72 in the same period last year[17]. - The net profit attributable to shareholders of the listed company was ¥45,052,622.53, down 43.70% from ¥80,020,687.05 in the previous year[17]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥36,688,012.59, a decrease of 47.83% compared to ¥70,329,706.28 in the same period last year[17]. - Basic earnings per share were ¥0.11, down 45.00% from ¥0.20 in the same period last year[17]. - The company reported a net loss of approximately CNY 15.47 million for the first half of 2020, with total assets amounting to CNY 356.17 million[90]. - Net profit for the first half of 2020 was CNY 44.99 million, a decline of 44% from CNY 80.02 million in the first half of 2019[187]. - The company's total assets increased to CNY 1.89 billion as of June 30, 2020, compared to CNY 1.88 billion at the end of 2019[184]. - The total equity attributable to shareholders of the parent company was CNY 1.64 billion, slightly down from CNY 1.64 billion at the end of 2019[184]. Cash Flow and Investments - The net cash flow from operating activities increased by 10.90% to ¥113,847,608.12 from ¥102,658,257.03 in the previous year[17]. - The company reported a net cash outflow from investing activities of approximately ¥52.85 million, worsening from a net outflow of ¥12.72 million in the previous year[196]. - Cash and cash equivalents at the end of the period totaled ¥513.24 million, an increase from ¥395.19 million at the end of the previous year[196]. - The company reported a net cash flow from investing activities of -¥113,174,742.58, worsening from -¥14,582,680.48 in the first half of 2019[198]. - The company received ¥29,724,550.00 from investment absorption during the first half of 2020[199]. Market and Industry Trends - The global market for water-saving bathroom accessories is driven by increasing water scarcity and supportive national policies[33]. - The domestic market for high-end sanitary ware brands is concentrated, with major brands like ROCA, INAX, and KOHLER holding significant market shares[35]. - The market share of mid-to-high-end water-saving flushing components is increasing as low-end products are gradually being replaced[36]. - The industry is experiencing a trend towards intelligent and artistic development, driven by rising living standards and consumer expectations[38]. - The company has identified a significant shift in market demand towards smart bathroom products, indicating a growing trend in the industry[80]. Research and Development - R&D investment increased by 41.11% to CNY 22.67 million, with a focus on enhancing product brand competitiveness and intellectual property protection[56]. - The company holds over 990 patents, including 64 invention patents, with a focus on water-saving technology for bathroom accessories[43]. - Research and development expenses increased to CNY 22.67 million, up from CNY 16.07 million, reflecting a commitment to innovation[185]. Strategic Partnerships and Sales - The company maintains stable and strong strategic partnerships with well-known domestic and international sanitary ware brands, enhancing its competitive advantage[39]. - The company operates under the C29 "Rubber and Plastic Products Industry" classification, specifically within the niche of water-saving flushing components[31]. - The company has established subsidiaries overseas to expand its market presence and is focusing on developing smart bathroom products domestically[80]. Risks and Challenges - The company faces risks from international macroeconomic fluctuations, particularly affecting demand in emerging markets where its products are primarily exported[92]. - Domestic economic pressures may impact the company's growth, with potential slowdowns in fixed asset investment and consumer demand[94]. - The company is navigating a complex international trade environment, which may affect its export growth and overall performance[92]. - The company is exposed to risks from raw material price fluctuations, particularly for engineering plastics, which account for over 30% of production costs[105]. Corporate Governance and Compliance - The company has established a robust corporate governance structure and internal supervision mechanisms to manage risks associated with its expanding operations and complexity[110]. - The company has not faced any unfulfilled commitments from major stakeholders during the reporting period, indicating compliance with obligations[117]. - The half-year financial report has not been audited, which may affect the reliability of the financial data presented[118]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 17,638[159]. - Major shareholders include Luo Yuanliang, Zhang Jianbo, Wang Bing, and Deng Guangrong, each holding 12.48% of the shares[159]. - The company’s incentive plan was approved at the first extraordinary general meeting of 2020 held on February 10, 2020[154].

Financial Performance - Revenue for Q1 2020 was ¥188,427,110.22, a decrease of 25.99% compared to ¥254,610,534.43 in the same period last year[8] - Net profit attributable to shareholders was ¥21,111,844.88, down 39.02% from ¥34,621,135.18 year-on-year[8] - Net profit excluding non-recurring gains and losses was ¥17,355,494.75, a decline of 44.99% compared to ¥31,549,225.41 in the previous year[8] - Basic earnings per share decreased by 37.50% to ¥0.05 from ¥0.08 year-on-year[8] - Net profit decreased by 39.07% to ¥21,095,769.97, primarily due to a decline in revenue[16] - Total operating revenue for the current period is ¥188,427,110.22, down from ¥254,610,534.43 in the previous period, representing a decrease of approximately 26%[41] - Total operating costs decreased to ¥169,632,737.28 from ¥218,483,676.85, a reduction of about 22%[42] - Net profit for the current period is ¥21,095,769.97, compared to ¥34,621,135.18 in the previous period, reflecting a decline of approximately 39%[43] - Operating profit for the current period is ¥25,717,713.60, down from ¥39,205,823.08, a decrease of about 34%[42] - Total profit for the current period is ¥25,725,025.34, compared to ¥39,205,512.98 in the previous period, reflecting a decline of approximately 34%[42] Cash Flow and Assets - Operating cash flow for the period increased by 28.33% to ¥50,199,455.22 from ¥39,117,926.96 in the same period last year[8] - The net cash flow from operating activities for Q1 2020 was CNY 50,199,455.22, an increase of 28.5% compared to CNY 39,117,926.96 in Q1 2019[49] - Total cash inflow from investment activities was CNY 174,603,675.47, significantly higher than CNY 24,875,375.34 in the same period last year[50] - The cash and cash equivalents at the end of Q1 2020 reached CNY 588,928,763.88, up from CNY 400,417,569.41 at the end of Q1 2019, representing a 47.1% increase[50] - The total operating cash inflow was CNY 241,276,788.88, compared to CNY 284,019,142.69 in the previous year, indicating a decrease of 15%[49] - The company reported a total cash inflow from sales of CNY 216,375,327.05, compared to CNY 272,981,723.05 in the same quarter last year, reflecting a decline of 20.8%[53] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 17,387[12] - The top four shareholders each hold 12.48% of the shares, totaling 52,224,000 shares each[12] - Net assets attributable to shareholders rose by 3.19% to ¥1,692,353,217.78 from ¥1,640,052,817.50 at the end of the previous year[8] - Shareholders' equity increased to CNY 1,692,452,594.12 from CNY 1,640,187,232.79, reflecting a growth of about 3.73%[36] Liabilities and Equity - Total liabilities decreased to CNY 207,347,958.21 from CNY 250,521,556.21, a reduction of approximately 17.24%[35] - Total liabilities amounted to CNY 250,521,556.21, with current liabilities at CNY 219,756,355.04[57] - The total equity attributable to shareholders reached CNY 1,640,052,817.50, while total equity was CNY 1,640,187,232.79[57] Non-Recurring Gains and Other Income - The company reported non-recurring gains of ¥3,756,350.13 during the period, including government subsidies of ¥4,219,544.83[9] - Other income increased by 116.15% to ¥4,219,544.83, driven by higher government subsidies received[16] - Investment income surged by 638.34% to ¥604,875.47, influenced by structured deposit returns[16] Inventory and Receivables - The company's inventory rose to CNY 195,003,829.57 from CNY 184,287,433.43, marking an increase of about 5.67%[33] - The company reported a decrease in accounts receivable from CNY 249,772,987.36 to CNY 202,040,905.12, a decline of approximately 19.14%[33] - Current assets totaled CNY 1,446,797,067.70, up from CNY 1,434,378,674.33, indicating an increase of about 0.88%[33] Financial Management and Changes - The company has implemented a stock incentive plan in 2020, approved by the board and shareholders[18][19] - A change in the use of part of the raised funds was approved in March 2020[20] - The company has no overdue commitments or non-operating fund occupation issues during the reporting period[22][28] - The company executed the new revenue recognition standard starting January 1, 2020, affecting the classification of pre-received customer payments[61]

Dividend Policy - The company plans to distribute a cash dividend of 2 RMB per 10 shares to all shareholders, based on a total of 418,473,000 shares[4]. - The cash dividend for 2018 was RMB 3.00 per 10 shares, amounting to RMB 76,800,000.00, with a total share capital increase to 409,600,000 shares[168]. - In 2017, the cash dividend was RMB 4.00 per 10 shares, totaling RMB 64,000,000.00, based on a total share capital of 160,000,000 shares[167]. - The cash dividend payout ratio for 2019 was 46.10% of the net profit attributable to shareholders[170]. - The company has a cash dividend policy that requires a minimum payout ratio of 80% for mature companies without significant capital expenditure plans[171]. - The total cash dividend amount for 2019 represents 100% of the total distributable profit[171]. - The company has committed to distributing at least 20% of the annual distributable profits in cash dividends, contingent on profitability and available retained earnings[173]. - The company plans to conduct mid-term cash dividends if the net cash flow from operating activities exceeds the net profit for the period[173]. - The company has fulfilled its commitment to conduct profit distribution at least once annually during the reporting period[173]. Financial Performance - The company's operating revenue for 2019 was ¥1,109,444,022.03, an increase of 11.64% compared to ¥993,785,232.85 in 2018[17]. - The net profit attributable to shareholders for 2019 was ¥181,538,751.50, reflecting a growth of 12.73% from ¥161,045,679.34 in the previous year[17]. - The total profit for 2019 was 205.12 million yuan, reflecting a growth of 10.83% from 185.08 million yuan in 2018[61]. - The company's gross profit margin for the industrial sector was 30.40%, with a gross profit of ¥337,217,510.86, up from the previous year's margin of 28.81%[68]. - The company's revenue from overseas exports significantly contributes to overall sales, with a stable growth in market share due to strong partnerships with well-known domestic and international brands[41]. - The company reported a significant increase in R&D investment to adapt to future market demands, focusing on product upgrades and new product development[79]. - The company achieved total revenue of 1,109.44 million yuan, an increase of 11.64% compared to 993.79 million yuan in the previous year[61]. - The company reported a credit impairment loss of CNY -3,895,677.21 for the current period, compared to CNY -3,346,822.96 in the previous period[188]. Research and Development - The company has maintained its commitment to research and development of new products, particularly in the smart toilet segment[9]. - The company holds over 930 patents, including 64 invention patents, demonstrating a strong focus on R&D in water-saving technologies[44]. - The company has achieved multiple quality certifications from over 10 countries, enhancing its competitive advantage in international markets[49]. - R&D investment increased by 5.94% from ¥41,021,331.07 in 2018 to ¥43,458,189.23 in 2019, accounting for 3.92% of operating revenue[80]. - The company aims to focus on the research and development of water-saving and smart bathroom products, enhancing its core competitive advantages through technology and service-oriented marketing strategies[129]. Market Position and Strategy - The company is a leading manufacturer of water-saving flushing components, holding the top market share in China and ranking among the top three globally in this segment[42]. - The company operates in the water-saving toilet component sector, which is part of the broader rubber and plastic products industry, and is recognized as a specialized supplier in the bathroom accessories market[33]. - The company emphasizes quality, technology, and service as the core competitive factors in the flushing component industry, necessitating strict quality control and innovative product development[112]. - The company is positioned to capitalize on the growing demand for water-saving products due to government initiatives aimed at promoting water conservation[37]. - The company aims to expand its market share in the water-saving flushing component sector due to increasing global water scarcity and evolving domestic and international water-saving policies[113]. Corporate Governance - The company is focused on enhancing its corporate governance structure and internal control systems to improve overall management quality[152]. - The board of directors will propose adjustments to the profit distribution policy only if it conflicts with the company's operational situation or long-term development needs[163]. - The company has a structured process for reviewing and approving profit distribution proposals, requiring input from independent directors and the supervisory board[164]. - The company has established a framework for consistent voting on significant matters, including operational policies and investment plans[179]. - The company has successfully adhered to all commitments made to minority shareholders, ensuring transparency and trust[184]. Economic and Market Risks - The company faces risks from international macroeconomic fluctuations, including trade tensions and protectionist measures that could impact demand for its products in emerging markets[133]. - Domestic economic pressures, such as slowing investment and consumer demand, may also pose risks to the company's future performance[135]. - The company is directly affected by U.S. trade policies, with certain bathroom products subject to tariffs, which could impact export volumes and pricing strategies[137]. - The ongoing "housing is for living, not for speculation" policy in China may lead to a slowdown in domestic real estate investment, potentially affecting domestic sales[142]. - The company is exposed to exchange rate fluctuations, with over 40% of its revenue coming from exports, which could impact profitability[143]. Subsidiaries and Investments - The company operates several wholly-owned subsidiaries, including Xiamen Paifute and Xiamen Yidian Intelligent Technology[8]. - The company established a wholly-owned subsidiary in Singapore, AQUATIZ INVESTMENT PTE.LTD., on April 5, 2019, and subsequently set up a holding subsidiary in India, AQUATIZ HOME INNOVATION PRIVATE LIMITED, on September 9, 2019[190]. - The company made a significant equity investment of CNY 30 million in Xiamen Water Drop Investment Co., holding a 100% stake[89]. - The company has not reported any issues or other circumstances regarding the use and disclosure of raised funds[100]. Operational Performance - The company’s total operating costs rose to ¥772,226,511.17, reflecting a 9.15% increase from the previous year[71]. - The company’s employee compensation provision was ¥22,788.84 million, a 14.7% increase year-on-year, constituting 20.54% of total revenue[62]. - The number of R&D personnel decreased by 9.95% from 191 in 2018 to 172 in 2019[80]. - The company has not encountered any major changes in project feasibility during the reporting period[99]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion RMB[182]. - The company plans to invest in new product development and market expansion strategies[179]. - The company plans to strengthen its global market position in water-saving bathroom fittings while expanding its efforts in the domestic smart bathroom market and forming strategic partnerships with renowned brands[129].

Financial Performance - Net profit attributable to shareholders was ¥46,988,535.25, a decrease of 15.10% year-on-year[7]. - Operating revenue for the reporting period was ¥268,777,092.77, reflecting a growth of 1.56% compared to the same period last year[7]. - The company reported a year-to-date net profit of ¥127,009,222.30, an increase of 12.58% compared to the same period last year[7]. - The company's net profit for Q3 2019 was not explicitly stated, but the increase in retained earnings was CNY 666,697,874.56 compared to CNY 605,831,444.84 in the previous year[36]. - The net profit for the third quarter was CNY 46,988,535.25, down 15.1% from CNY 55,346,098.93 in the same period last year[40]. - The total profit for the third quarter was CNY 53,732,481.62, compared to CNY 61,650,110.46 in the previous year, indicating a decrease of 12.8%[40]. - The total profit for the third quarter of 2019 was CNY 146,783,700.57, an increase of 12.9% from CNY 130,037,506.38 in the same period last year[48]. Earnings and Shares - Basic earnings per share decreased by 46.95% to ¥0.1147[7]. - Basic earnings per share decreased to CNY 0.1147 from CNY 0.2162, reflecting a decline of 46.9%[40]. - The basic earnings per share for the third quarter of 2019 was CNY 0.3101, down from CNY 0.4407 in the same quarter last year[48]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,839,651,250.84, an increase of 6.08% compared to the end of the previous year[7]. - The total assets of the company reached CNY 1,800,311,207.41, compared to CNY 1,731,384,687.67 at the end of 2018, indicating growth in asset base[36]. - The total liabilities increased to CNY 253,978,229.77 from CNY 198,752,923.55 year-over-year, showing a rise of 27.8%[31]. - Total liabilities were CNY 198,752,923.55, with current liabilities at CNY 178,594,384.10 and non-current liabilities at CNY 20,158,539.45[65]. - The total liabilities to equity ratio is approximately 12.93%, indicating a relatively low leverage position[65]. Cash Flow - The net cash flow from operating activities was ¥20,791,169.97, down 58.92% year-on-year[7]. - The company reported a cash inflow from operating activities of CNY 820,032,173.91 for the current period, compared to CNY 699,300,107.30 in the previous year[54]. - Net cash flow from operating activities reached CNY 123,449,427.00, significantly up from CNY 40,288,569.04 in the same period last year[55]. - The ending balance of cash and cash equivalents was CNY 427,176,998.68, up from CNY 318,072,057.58 in Q3 2018[56]. Inventory and Receivables - Accounts receivable decreased by 36.88% compared to the beginning of the year, mainly due to the maturity of bank acceptance bills[15]. - Inventory increased by 36.97% compared to the beginning of the year, mainly due to an increase in raw materials and finished goods[15]. - Other receivables increased by 196.11% compared to the beginning of the year, mainly due to unreceived export tax rebates[15]. Expenses - Sales expenses increased by 39.96% compared to the same period last year, mainly due to increased exhibition, insurance, and service fees[16]. - Research and development expenses for Q3 2019 were CNY 9,660,857.16, slightly up from CNY 9,261,324.36 in the previous year, indicating continued investment in innovation[38]. - Research and development expenses for the third quarter were CNY 21,371,397.46, a decrease of 22.5% compared to CNY 27,565,400.04 in the previous year[51]. Shareholder Information - The total number of shareholders at the end of the reporting period was 18,272[11]. - The top four shareholders each hold 12.75% of the shares, totaling 52,224,000 shares each[11]. Other Financial Metrics - The weighted average return on net assets was 3.01%, an increase of 0.16% compared to the previous year[7]. - Non-recurring gains and losses totaled ¥9,240,036.18 after tax[9]. - The company’s capital stock increased by 60% compared to the beginning of the year due to the conversion of capital reserves into share capital[15].

Financial Performance - The company's operating revenue for the first half of 2019 was ¥518,646,217.72, representing an increase of 18.97% compared to ¥435,940,782.06 in the same period last year[17]. - The net profit attributable to shareholders of the listed company was ¥80,020,687.05, a growth of 39.24% from ¥57,467,928.13 in the previous year[17]. - The net cash flow from operating activities reached ¥102,658,257.03, a significant increase of 1,094.68% compared to a negative cash flow of ¥10,320,680.43 in the same period last year[17]. - The basic earnings per share decreased by 9.09% to ¥0.20 from ¥0.22 in the previous year[17]. - Total assets at the end of the reporting period were ¥1,755,221,239.71, reflecting a 1.21% increase from ¥1,734,216,722.32 at the end of the previous year[17]. - The net assets attributable to shareholders of the listed company were ¥1,538,684,485.82, showing a slight increase of 0.21% from ¥1,535,463,798.77 at the end of the previous year[17]. - The weighted average return on net assets improved to 5.12%, up from 3.91% in the previous year, indicating better profitability[17]. Market Strategy and Positioning - The company has a strong focus on water-saving bathroom products, with the main product being the water-saving flushing component, which is crucial for toilet performance and efficiency[25]. - The company operates under an "order-based" business model, ensuring effective control over procurement, production, and sales[26]. - The company maintains a close relationship with major raw material suppliers, ensuring stable supply and favorable pricing through long-term contracts[26]. - The company’s sales strategy includes direct sales to end customers and a distribution model in regions where it is advantageous, such as parts of Asia[28]. - The company’s pricing strategy is based on market segmentation, allowing for tailored pricing according to customer needs[29]. - The company is positioned in the mature global market for water-saving flushing components, competing with brands like Geberit and Villeroy & Boch[32]. - The company benefits from increasing government support for water-saving products, driven by the global water crisis and national policies promoting water conservation[33]. - The company’s performance is influenced by the development of the mid-to-high-end sanitary ceramics market and the growth of the rural bathroom product consumption market[30]. - The company has established stable and strong strategic partnerships with well-known sanitary ware brands, which has contributed to a steady increase in market share[38]. - The company exports to over 50 countries and regions, including South America, Asia, North America, and Europe, contributing significantly to overall sales[39]. Research and Development - The company has over 800 patents and focuses on the research and development of water-saving sanitary products, ensuring a strong technological advantage in the industry[41]. - The company’s research and development investment was RMB 16,067,479.38, a decrease of 12.22% from the previous year, indicating a focus on efficiency[55]. - The company is investing in new technology development, allocating 50 million RMB for R&D in smart bathroom solutions[133]. - Research and development expenses decreased to ¥14.13 million in the first half of 2019 from ¥18.30 million in the same period of 2018, indicating a reduction of 22.4%[200]. Financial Management and Investments - The company has not reported any significant changes in its financial reporting or accounting standards during the reporting period[18][19]. - The company has not made any significant non-equity investments during the reporting period[69]. - The total amount of raised funds was ¥615.12 million, with ¥593.83 million invested during the reporting period[75]. - The company approved the use of up to 300 million RMB of temporarily idle raised funds for cash management, including structured deposits[78]. - The company utilized 287 million RMB of idle raised funds for structured deposits, ensuring liquidity and safety[82]. - The company has not encountered any issues with the use and disclosure of raised funds[82]. Risks and Challenges - The company faces risks from macroeconomic fluctuations, particularly in emerging markets, which could lead to decreased demand for its products if infrastructure investments decline[92]. - Trade protectionism from major economies, particularly the US, poses a risk to the company's export business, as tariffs on sanitary ware products could negatively impact revenue[93][94]. - The company is exposed to risks from international trade disputes, which could affect its export demand and overall performance[93]. - Domestic sales are significantly influenced by the real estate market, and ongoing regulatory measures may lead to reduced demand for the company's products[98]. - The company emphasizes the importance of continuous product development and innovation to meet increasing standards for water-saving performance in sanitary ware[100]. Shareholder and Governance Matters - The company plans not to distribute cash dividends or issue bonus shares for the half-year period[114]. - The company commits to distributing at least 20% of the annual distributable profit as cash dividends[116]. - The company can conduct mid-term cash dividends if the net cash flow from operating activities exceeds the net profit for the period[116]. - The company has a lock-up period of 36 months for certain shareholders, which will not allow them to transfer or entrust their shares to others[117]. - The company emphasizes maintaining consistent action among shareholders regarding major operational and decision-making matters[119]. - The company will make decisions on external investments, acquisitions, and other significant transactions through shareholder resolutions[120]. Operational Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the first half of 2019, representing a 15% year-over-year growth[122]. - User data showed a 20% increase in active users, reaching 500,000 by the end of June 2019[123]. - The company provided a positive outlook for the second half of 2019, projecting a revenue growth of 10% to 12%[124]. - New product launches are expected to contribute an additional 200 million RMB in revenue by the end of the year[125]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2021[126]. - A new marketing strategy is being implemented, aiming to increase brand awareness by 40% in the next year[125]. - The company reported a gross margin of 35%, maintaining a stable profitability level[124]. - Future guidance indicates an expected EBITDA margin improvement to 18% by the end of 2019[123].

Financial Performance - The company's operating revenue for 2018 was ¥993,785,232.85, representing an increase of 8.34% compared to ¥917,320,051.22 in 2017[18]. - The net profit attributable to shareholders for 2018 was ¥161,045,679.34, a slight increase of 0.39% from ¥160,413,916.03 in 2017[18]. - The net profit after deducting non-recurring gains and losses was ¥144,016,119.52, up by 3.21% from ¥139,539,917.59 in 2017[18]. - The total assets at the end of 2018 were ¥1,734,216,722.32, reflecting a growth of 7.53% from ¥1,612,788,435.32 at the end of 2017[18]. - The company's net assets attributable to shareholders increased by 5.57% to ¥1,535,463,798.77 from ¥1,454,418,119.43 in 2017[19]. - The basic earnings per share remained stable at ¥0.63, unchanged from 2017[18]. - The company's total profit for 2018 was 185.08 million yuan, a slight decrease of 0.39% from 185.81 million yuan in 2017[62]. - The gross profit margin decreased to 28.81% in 2018 from 32.80% in 2017, reflecting a decline of 3.99% year-on-year[69]. - The company's overseas revenue was ¥396,257,325.64, which is 39.87% of total revenue, showing a slight increase of 2.01% from the previous year[67]. Profit Distribution - The company reported a profit distribution plan based on a base of 256,000,000 shares, proposing a cash dividend of 3.00 RMB per 10 shares (including tax) and a capital reserve increase of 6 shares per 10 shares[5]. - The company plans to distribute at least 20% of its distributable profits as cash dividends annually, with provisions for mid-term cash dividends if certain conditions are met[163]. - The company has established a profit distribution policy that requires at least 80% of profits to be distributed as cash dividends during its mature development stage[161]. - The cash dividends over the past three years accounted for 49.87% of the net profit attributable to ordinary shareholders in 2017, 47.69% in 2018, and 36.33% in 2016[160]. - The company distributed cash dividends of RMB 3.00 per 10 shares in 2018, totaling RMB 76,800,000 (including tax) based on a total share capital of 256,000,000 shares[159]. Business Operations - The company operates under the stock code 002790 on the Shenzhen Stock Exchange, with its registered address located at 18 Houxiang Road, Haicang District, Xiamen[14]. - The company has no changes in its main business since its listing, indicating stability in its operational focus[17]. - The company has a fully owned subsidiary, Xiamen Paifute Sanitary Ware Co., Ltd., which contributes to its business operations[10]. - The company employs an "order-based" business model, focusing on quality control and effective management of procurement, production, and sales[29]. - The company has established stable partnerships with renowned brands such as ROCA, INAX, and KOHLER, which enhances its market position and customer base[47]. Market Trends and Competition - The company operates in the water-saving flushing component sector, which is a mature and stable market, with key competitors including Geberit, Fima, and WDIYA[35]. - The market for mid-to-high-end water-saving flushing components is growing, while the low-end market is shrinking due to increased living standards and stricter water-saving regulations[38]. - The global trend towards water conservation and supportive national policies are driving the growth of the water-saving sanitary ware industry[36]. - The industry is experiencing consolidation due to intense competition, leading to a reshuffling of market players[40]. - The company is positioned to leverage the increasing demand for personalized, intelligent, and artistic sanitary products as consumer preferences evolve[39]. Research and Development - The company has developed over 780 patents, showcasing its strong R&D capabilities in water-saving technology and related products[45]. - The number of R&D personnel increased by 29.05% to 191, indicating a focus on innovation and product development[81]. - The company is committed to developing new products and technologies, particularly in the smart toilet seat segment, which is expected to be a future trend[11]. - The company is focusing on the development and promotion of intelligent sanitary products and hidden water tank technologies[36]. Risks and Challenges - The company has faced various risk factors that may impact its future development strategy and operational goals, which are detailed in the report[5]. - The company faces risks from macroeconomic fluctuations, including international trade tensions and domestic economic slowdowns, which could impact performance growth[132][134]. - The company is exposed to risks from potential trade protectionism in export markets, which could affect demand for its products[139]. - Raw material costs, particularly for engineering plastics, constitute over 30% of production costs, making the company sensitive to price fluctuations in the petrochemical market[140]. Corporate Governance - The company emphasizes the importance of accurate financial reporting, with key personnel affirming the truthfulness and completeness of the annual report[4]. - The company has established a comprehensive corporate governance structure and internal supervision mechanisms to manage risks associated with its expanding operations[146]. - The company ensures that minority shareholders have ample opportunities to express their opinions and that their rights are protected during the dividend distribution process[158]. - The company has a structured process for adjusting its profit distribution policy, which requires approval from the board and a two-thirds majority from the shareholders' meeting[155]. Future Outlook - The company plans to expand its market share in smart bathroom products and silent drop covers, while continuing to develop water-saving fittings[131]. - The company aims to strengthen its market position in water-saving bathroom fittings and enhance strategic partnerships with renowned global brands, focusing on R&D and automation to improve production efficiency[130]. - The company has set a performance guidance for 2019, aiming for a revenue target of RMB 1.5 billion, which would represent a growth of 25%[168].

Financial Performance - Revenue for Q1 2019 reached ¥254,610,534.43, an increase of 34.73% compared to ¥188,978,576.09 in the same period last year[7] - Net profit attributable to shareholders was ¥34,621,135.18, representing an 84.90% increase from ¥18,724,396.63 year-over-year[7] - Net profit excluding non-recurring items was ¥31,549,225.41, up 92.22% from ¥16,413,301.90 in the previous year[7] - Basic earnings per share doubled to ¥0.14 from ¥0.07 year-over-year[7] - The company's total comprehensive income for Q1 2019 was CNY 34,621,135.18, compared to CNY 18,724,396.63 in Q1 2018, indicating a significant growth[38] - The operating profit for Q1 2019 was CNY 39,205,823.08, an increase of 82.5% from CNY 21,573,420.85 in the same quarter last year[38] - The total profit for Q1 2019 was CNY 39,205,512.98, an increase of 77.5% from CNY 22,091,924.23 in Q1 2018[38] Cash Flow - Net cash flow from operating activities was ¥39,117,926.96, a significant increase of 306.58% compared to ¥9,621,133.69 in the same period last year[7] - The company's cash flow from operating activities was CNY 276,878,522.60, compared to CNY 197,950,681.30 in the previous period[44] - Total cash inflow from operating activities amounted to CNY 284,019,142.69, compared to CNY 206,045,536.77 in the previous year, indicating a year-over-year increase of about 37.8%[45] - Cash outflow from operating activities was CNY 244,901,215.73, up from CNY 196,424,403.08, reflecting a rise of approximately 24.7%[45] - The company reported a cash and cash equivalents balance of CNY 400,417,569.41 at the end of Q1 2019, up from CNY 396,048,357.70 at the end of Q1 2018[46] - The total cash inflow from investment activities was CNY 24,875,375.34, compared to CNY 2,467,540.00 in the previous year, marking a substantial increase[45] - The total cash and cash equivalents increased by CNY 30,327,923.27 during the quarter, contrasting with a decrease of CNY 6,175,940.29 in the same quarter last year[46] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,760,848,841.14, a 1.54% increase from ¥1,734,216,722.32 at the end of the previous year[7] - Total assets as of March 31, 2019, amounted to CNY 1,762,441,007.29, an increase from CNY 1,731,384,687.67 at the end of 2018[34] - Total liabilities as of March 31, 2019, were CNY 192,305,846.39, a decrease from CNY 198,340,397.72 at the end of 2018[33] - Current liabilities totaled CNY 178,594,384.10, while total liabilities reached CNY 198,752,923.55[53] - Owner's equity amounted to CNY 1,535,463,798.77, with total equity attributable to shareholders also at CNY 1,535,463,798.77[53] Shareholder Information - The company reported a total of 17,223 common shareholders at the end of the reporting period[11] - The top four shareholders each hold 12.75% of the shares, totaling 32,640,000 shares each[11] Expenses - Operating costs rose by 32.17% to CNY 182.08 million, in line with revenue growth[15] - Management expenses increased by 33.49% to CNY 13.44 million, reflecting higher operational costs[15] - Tax expenses for Q1 2019 were CNY 4.58 million, a 36.13% increase from CNY 3.37 million in Q1 2018[15] - Research and development expenses for Q1 2019 were CNY 7,857,465.57, slightly down from CNY 8,361,468.12 in Q1 2018[40] - The financial expenses decreased to CNY 3,858,607.10 from CNY 5,122,620.62 in the previous year, showing improved cost management[40] Fair Value and Other Financial Metrics - Fair value gains increased by 369.31% to CNY 1.55 million from a loss of CNY 574,140.00 in the previous period[15] - The company reported a fair value change gain of CNY 1,546,200.00, compared to a loss of CNY 574,140.00 in the same period last year[41] - Deferred income tax liabilities increased to CNY 10,350,039.85 in Q1 2019 from CNY 8,690,784.60 in Q1 2018[33] Accounting Changes - The company has implemented new financial instrument accounting standards, reducing the classification of financial assets from four categories to three[54] - The new expected credit loss model requires timely and sufficient provisions for financial asset impairments[54] - The company has simplified hedge accounting rules and broadened the scope of hedging instruments[54] Audit Status - The company has not audited the first quarter report[59]

Dividend Policy - The company plans to distribute a cash dividend of 3.00 RMB per 10 shares to all shareholders, based on a total of 256,000,000 shares[4] - The company distributed cash dividends of RMB 3.00 per 10 shares in 2018, totaling RMB 76,800,000 (including tax) based on a total share capital of 256,000,000 shares[158] - In 2017, the company distributed cash dividends of RMB 4.00 per 10 shares, amounting to RMB 64,000,000 (including tax) based on a total share capital of 160,000,000 shares[157] - The cash dividend payout ratio for 2018 was 47.69% of the net profit attributable to shareholders[159] - The company plans to increase its total share capital to 409,600,000 shares after a capital reserve conversion of 153,600,000 shares, with a distribution of 6 shares for every 10 shares held[160] - The company’s cash dividend policy requires a minimum of 80% of profits to be distributed as cash dividends during mature development stages[160] - The board of directors must approve the profit distribution plan, which then requires a majority vote from the shareholders' meeting[155] - Independent directors are involved in the decision-making process for cash dividends, ensuring transparency and accountability[157] - The cash dividend distribution plan must be submitted to the shareholders' meeting for approval after passing the board and supervisory board reviews[155] - The company has consistently increased its cash dividend payouts over the past three years, reflecting a commitment to returning value to shareholders[159] - The company committed to distributing at least 20% of the distributable profits as cash dividends annually, provided that the net cash flow from operating activities in the first half exceeds the net profit for the period[162] - The company has consistently fulfilled its commitments regarding profit distribution since its IPO on March 8, 2016, with the last fulfillment noted on March 12, 2019[162] Financial Performance - The company's operating revenue for 2018 was ¥993,785,232.85, representing an increase of 8.34% compared to ¥917,320,051.22 in 2017[6] - The net profit attributable to shareholders for 2018 was ¥161,045,679.34, a slight increase of 0.39% from ¥160,413,916.03 in 2017[6] - The total assets at the end of 2018 were ¥1,734,216,722.32, reflecting a growth of 7.53% from ¥1,612,788,435.32 at the end of 2017[6] - The net assets attributable to shareholders increased by 5.57% to ¥1,535,463,798.77 in 2018 from ¥1,454,418,119.43 in 2017[18] - The company reported a quarterly revenue of ¥293,194,645.66 in Q4 2018, marking a steady increase from previous quarters[22] - The net profit for 2018 was 161.05 million yuan, showing a marginal increase of 0.39% from 160.41 million yuan in the previous year[61] - The company's total profit for 2018 was 185.08 million yuan, a slight decrease of 0.39% from 185.81 million yuan in 2017[61] - The company reported a 13.21% increase in employee compensation to 198.69 million yuan, which accounted for 19.99% of the total operating revenue[62] Market Position and Strategy - The company continues to focus on the development and sales of water-saving bathroom accessories, with a strong emphasis on product quality and technological innovation[27] - The company operates in the water-saving flushing component sector, which is a specialized and segmented market within the bathroom industry[33] - The global market for water-saving flushing components is mature and stable, with key players including Geberit, Fima, and the company itself[34] - The company benefits from government policies promoting water-saving products, with significant statistics indicating that 75% of domestic water consumption occurs in bathrooms[35] - The company maintains strong relationships with downstream high-end bathroom brands, which enhances its competitive advantage in the market[36] - The domestic market for low-end flushing components is shrinking, while the market share for mid-to-high-end water-saving components is growing[37] - The company’s export sales contribute significantly to its overall revenue, reducing the impact of domestic real estate cycles on its performance[39] - The company is focusing on the development of smart and artistic bathroom products, aligning with the trend of diversified consumer demands[38] - The company has become a leading manufacturer of water-saving flushing components, holding the top market share in China and ranking among the top three globally in this sector[41] Research and Development - The company has developed over 780 patents, showcasing its strong R&D capabilities in water-saving technology and related products[44] - Research and development expenses amounted to ¥41,021,331.07, representing 4.13% of total revenue, a slight decrease from 4.34% in 2017[80] - The number of R&D personnel increased by 29.05% to 191, making up 13.85% of the total workforce[80] - Ruiter is investing RMB 50 million in R&D for new product development, focusing on smart bathroom technologies[171] Financial Management - The company has invested a total of CNY 41,700,000 in bank wealth management products, with no overdue amounts[199] - The company has a total of 8 entrusted financial management plans, with varying amounts and terms[200] - The financial management activities included both self-owned funds and idle raised funds, indicating a diversified investment strategy[200] - The company has maintained a consistent approach to financial management, focusing on capital preservation and stable returns[200] - The overall performance of the financial management activities reflects a strong commitment to maximizing returns while managing risks effectively[200] Risks and Challenges - The company faces risks from macroeconomic fluctuations, including international trade tensions and domestic economic slowdowns, which could impact performance growth[131][134] - Domestic sales are significantly affected by the real estate market, with potential declines in demand for bathroom fittings due to ongoing regulatory measures in the housing sector[135] - The company exports over 40% of its revenue, making it vulnerable to exchange rate fluctuations, particularly against the US dollar[136] - Continuous innovation in product development is crucial for maintaining competitive advantages in the bathroom fittings sector, as industry standards evolve[137] - The company is at risk of facing trade protectionism in export markets, which could adversely affect demand for its products[138] - Fluctuations in raw material prices, particularly for engineering plastics, which account for over 30% of production costs, pose a risk to the company's cost management[139] Corporate Governance - The company has established a comprehensive corporate governance structure and internal supervision mechanisms to manage risks associated with its expanding operations[145] - The company has committed to maintaining shareholder rights and interests without violating laws and regulations[175] - The company has established a framework for shareholder agreements to ensure alignment on significant corporate decisions[163] Market Trends - The industry is experiencing a shift towards high-quality development, with a focus on green manufacturing and smart technologies[119] - The market for mid-to-high-end water-saving flushing components is projected to expand significantly due to rising living standards and stricter regulations[118] - The introduction of advanced flushing technologies is crucial for improving water-saving efficiency in toilets[116] - The competitive landscape is intensifying, leading to increased brand consolidation and a focus on quality among leading manufacturers[119] Expansion Plans - The company plans to expand its market share in smart bathroom products and silent drop covers, while continuing to develop water-saving fittings[130] - The company aims to enhance production efficiency and reduce the negative impact of rising labor costs through technological upgrades and automation[62] - The company has outlined specific conditions under which shareholders can reduce their holdings after the lock-up period, ensuring compliance with relevant regulations[163]

1 厦门瑞尔特卫浴科技股份有限公司 2018 年第三季度报告正文 证券代码：002790 证券简称：瑞尔特 公告编号：2018-058 厦门瑞尔特卫浴科技股份有限公司 2018 年第三季度报告正文 2 厦门瑞尔特卫浴科技股份有限公司 2018 年第三季度报告正文 厦门瑞尔特卫浴科技股份有限公司 2018 年第三季度报告正文 第二节 公司基本情况 一、主要会计数据和财务指标 第一节 重要提示 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人罗远良、主管会计工作负责人罗远良及会计机构负责人(会计主 管人员)陈绍明声明：保证季度报告中财务报表的真实、准确、完整。 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 1,664,796,137.02 | | 1,612,788,435.32 | 3 ...

Financial Performance - The company's operating revenue for the first half of 2018 was approximately ¥435.94 million, representing a 1.01% increase compared to ¥431.58 million in the same period last year[19]. - The net profit attributable to shareholders decreased by 29.72% to approximately ¥57.47 million, down from ¥81.77 million in the previous year[19]. - The net profit after deducting non-recurring gains and losses fell by 34.94% to approximately ¥50.72 million, compared to ¥77.96 million in the same period last year[19]. - The net cash flow from operating activities was negative at approximately -¥10.32 million, a decline of 110.09% from ¥102.28 million in the previous year[19]. - Basic and diluted earnings per share decreased by 31.25% to ¥0.22, down from ¥0.32 in the same period last year[19]. - The weighted average return on equity was 3.91%, down from 5.89% in the previous year, reflecting a decrease of 1.98%[19]. - The total profit for the first half of 2018 was CNY 68.39 million, a decrease of 27.90% compared to CNY 94.86 million in the previous year[55]. - The company's cash and cash equivalents decreased by CNY 92.83 million, a decline of 222.82% compared to an increase of CNY 75.58 million in the same period last year[59]. - The total comprehensive income for the period was CNY 57,724,090.40, compared to CNY 81,040,637.90 in the previous period, reflecting a decrease[186]. Assets and Liabilities - Total assets at the end of the reporting period were approximately ¥1.62 billion, a slight increase of 0.27% from ¥1.61 billion at the end of the previous year[19]. - The net assets attributable to shareholders decreased by 1.55% to approximately ¥1.43 billion, down from ¥1.45 billion at the end of the previous year[19]. - The company's fixed assets at the end of the reporting period amounted to 40,794.54 million yuan, a decrease of 0.06% compared to the beginning of the year, primarily due to the disposal of older fixed assets[43]. - The company's construction in progress increased by 9.54% to 643.13 million yuan, attributed to the expansion of the Yangming Road bathroom accessories production base[44]. - The company's total liabilities increased from ¥158,370,315.89 to ¥185,297,821.97, an increase of about 17.0%[173]. - The company's equity attributable to shareholders decreased from ¥1,454,418,119.43 to ¥1,431,886,047.56, a decline of approximately 1.5%[174]. Market and Business Strategy - The main business of the company focuses on the research, production, and sales of water-saving bathroom accessories, with the water-saving flushing component being the primary product[27]. - The company operates under an "order-based" business model, relying on its technical strength and product quality for profitability, with no significant changes in the operating model during the reporting period[28]. - The company’s sales strategy includes direct sales to end customers and a distribution model in regions where it is advantageous, with significant markets in Brazil and Colombia[30]. - The ongoing global water crisis and supportive national policies are driving the growth of the water-saving bathroom accessory industry, with various government initiatives promoting the use of water-saving devices[35]. - The company is positioned in the mature and stable global market for water-saving flushing components, competing with brands like Geberit and Villeroy & Boch[34]. - The company plans to continue expanding its market presence and investing in new product development, particularly in smart bathroom products[73]. - The company aims to tap into the replacement market for water-saving components, supported by government initiatives for water conservation[103]. Research and Development - The company holds over 650 patents and has been recognized as a high-tech enterprise, indicating a strong commitment to research and development in water-saving components[45]. - The company obtained 78 authorized patents in the first half of 2018, including 4 invention patents, and submitted 120 patent applications[56]. - Continuous investment in R&D is crucial for maintaining competitive advantages in product innovation and meeting increasing energy-saving standards[105]. - The company has established a new subsidiary focused on smart bathroom product research and development, with a registered capital of CNY 10 million[73]. Risks and Challenges - The company faces significant uncertainties regarding future performance due to market conditions and other risk factors[5]. - The company faces risks from macroeconomic fluctuations, including potential declines in domestic real estate investment affecting sales[99][100]. - The company is addressing currency fluctuation risks by locking in export prices and signing foreign exchange forward contracts[104]. - The company is aware of potential trade protectionism risks that could impact its export markets, particularly in light of ongoing US-China trade tensions[106]. Shareholder and Governance - The company has a stable shareholding structure with four actual controllers holding a combined 51% of shares post-IPO, down from 68% prior to the IPO[116]. - The company implemented a profit distribution and capital reserve conversion plan, distributing RMB 5 per 10 shares, totaling RMB 80 million, and converting capital reserves to increase shares by 96 million, raising total shares from 160 million to 256 million[148]. - The total number of ordinary shareholders at the end of the reporting period was 16,817[156]. - Major shareholders include Luo Yuanliang and Wang Bing, each holding 12.75% of shares, totaling 32,640,000 shares[156]. - The company has established a governance structure to enhance operational capabilities and ensure consistent decision-making among its controllers[117]. Legal and Compliance - There were no major litigation or arbitration matters during the reporting period, indicating a stable legal environment[126]. - The company has not engaged in any significant related party transactions during the reporting period[131]. - The semi-annual financial report was not audited, which may affect the reliability of the financial data presented[169].