深圳市和科达精密清洗设备股份有限公司 2020 年第三季度报告全文 深圳市和科达精密清洗设备股份有限公司 2020 年第三季度报告 2020 年 10 月 1 深圳市和科达精密清洗设备股份有限公司 2020 年第三季度报告全文 第一节 重要提示 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。 公司负责人金文明、主管会计工作负责人庞志刚及会计机构负责人(会计主 管人员)钟志芳声明：保证季度报告中财务报表的真实、准确、完整。 2 深圳市和科达精密清洗设备股份有限公司 2020 年第三季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 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） | 519,701,174.28 | | 537,407,336.01 | -3.29 ...

Financial Performance - The company's operating revenue for the first half of 2020 was ¥54,990,810.14, a decrease of 13.22% compared to ¥63,366,445.25 in the same period last year[20]. - The net profit attributable to shareholders was ¥6,501,348.42, representing a significant increase of 182.04% from a loss of ¥7,924,458.22 in the previous year[20]. - The basic earnings per share improved to ¥0.07, compared to a loss of ¥0.08 per share in the same period last year, marking a 187.50% increase[20]. - The net cash flow from operating activities was negative at ¥10,008,288.04, a decline of 172.44% from ¥13,816,850.12 in the previous year[20]. - Total assets at the end of the reporting period were ¥537,525,408.37, a slight increase of 0.02% from ¥537,407,336.01 at the end of the previous year[20]. - The net assets attributable to shareholders increased by 1.42% to ¥463,631,697.68 from ¥457,130,349.26 at the end of the previous year[20]. - The company reported a significant decrease in cash flow from operating activities, down 172.44% to -¥10,008,288.04[39]. - The company reported a net loss of ¥7,954,140.32 after deducting non-recurring gains and losses, but this was a 26.60% improvement from the previous year's loss of ¥10,836,651.46[20]. - The company achieved operating revenue of ¥54,990,810.14, a decrease of 13.22% compared to the same period last year[35]. - Net profit increased by 182.04% to ¥6,501,348.42 compared to the same period last year[35]. Asset Management - The company sold its Dongguan factory, leading to a 29.97% decrease in fixed assets and a 33.54% decrease in intangible assets[29]. - The company’s cash and cash equivalents net increase was -¥38,155,094.93, a decrease of 334.20%[39]. - The company’s cash and cash equivalents decreased to CNY 64,326,371.60, accounting for 11.97% of total assets, down 7.07% from the previous year[47]. - Accounts receivable amounted to CNY 159,570,253.00, representing 29.69% of total assets, a decrease of 3.91%[47]. - The company reported a total of 3,445,759 shares held by directors and senior management, with a reduction of 831,500 shares during the reporting period[134]. - The company’s total liabilities decreased to CNY 73,893,710.69 from CNY 80,276,986.75, with current liabilities at CNY 69,209,135.30[145]. Investment and Funding - The company reported investment income of CNY 313,048.71, contributing 3.50% to total profit[45]. - The total amount of raised funds was CNY 172,390,018.89, with CNY 10,993.27 million already invested in projects[56]. - The company utilized CNY 39,500,000.00 of idle raised funds to purchase bank wealth management products[58]. - The company temporarily used RMB 1,500 million of idle raised funds to supplement working capital, approved for a period not exceeding 12 months[62]. - The company has not experienced any significant changes in the feasibility of its fundraising projects during the reporting period[63]. - The company has successfully launched multiple new products in the LCD equipment sector, although overall market demand has been cautious due to external factors[61]. Market and Product Development - The company maintains a focus on technological innovation and quality improvement to enhance its competitive edge in the precision cleaning equipment industry[31]. - The company is involved in the development and sales of various cleaning equipment, including ultrasonic cleaning machines and industrial water treatment equipment[71]. - The company has outlined plans for market expansion in the cleaning equipment sector, targeting both domestic and international markets[71]. - The company is actively pursuing technology imports and exports to enhance its product development capabilities[71]. - The company plans to continue investing in high-safety, liquid bank investment products with idle funds, ensuring liquidity and capital preservation[62]. Risks and Challenges - The company is facing risks related to a slowdown in fixed asset investment from downstream customers, which could lead to a decrease in orders and impact performance[75]. - The company has identified risks associated with the inability to digest new production capacity if market conditions change unfavorably after project completion[77]. - The company faces risks related to the inability to expand downstream applications and customer base, which may lead to excess production capacity[78]. - Risks of bad debts from accounts receivable may arise if downstream customers experience performance declines or increased competition[78]. - The company must adapt its cleaning equipment to meet evolving customer production processes, or risk losing clients and revenue[78]. - The company’s products are highly customized, which increases the difficulty of quality control and may lead to performance declines if quality issues arise[78]. Corporate Governance and Shareholder Matters - The company transferred 29,990,000 shares, representing 29.99% of total equity, to Yiyang Ruihecheng Holdings Co., Ltd., resulting in a change of control[114]. - The previous controlling shareholders, including Qian Youtang, Long Xiaoming, and Zou Ming, transferred their shares, with Qian Youtang transferring 11,477,084 shares, Long Xiaoming 10,775,348 shares, and Zou Ming 7,737,568 shares[114]. - After the transfer, Yiyang Ruihecheng will become the controlling shareholder, and Jin Wenming will be the actual controller of the company[114]. - The company has not disclosed any related party transactions among the top ten shareholders[124]. - The company has no significant litigation or arbitration matters during the reporting period[92]. - There are 4 new lawsuits added this period, involving an amount of CNY 39.89 million, with ongoing cases[92]. Future Outlook - The company plans to enhance its market expansion strategies and invest in new product development to drive future growth[172]. - The company aims to improve operational efficiency through technological advancements and innovation in cleaning equipment[172]. - The company has identified potential acquisition targets to strengthen its market position and expand its product offerings[172]. - The company plans to continue expanding its market presence and invest in new technologies[176].

Financial Performance - The company's operating revenue for Q1 2020 was ¥8,097,668.70, a decrease of 76.34% compared to ¥34,230,251.39 in the same period last year[10] - The net profit attributable to shareholders was a loss of ¥9,335,676.27, representing a decline of 123.11% from a loss of ¥4,184,363.21 in the previous year[10] - The net profit for Q1 2020 was -¥9,335,676.27, representing a 123.11% decline from -¥4,184,363.21 in the previous year, mainly due to reduced operating revenue[18] - Operating profit for Q1 2020 was a loss of CNY 9,446,459.77, compared to a loss of CNY 5,130,264.37 in Q1 2019[42] - The total comprehensive loss for Q1 2020 was CNY -9,335,676.27, compared to CNY -4,184,363.21 in Q1 2019[43] Cash Flow - The net cash flow from operating activities increased by 96.64% to ¥6,165,241.51, compared to ¥3,135,356.90 in the same period last year[10] - The net cash flow from operating activities for Q1 2020 was ¥6,165,241.51, an increase from ¥3,135,356.90 in Q1 2019, reflecting a positive trend in operational efficiency[50] - Total cash inflow from operating activities was ¥45,611,052.56, while cash outflow was ¥39,445,811.05, resulting in a net cash inflow of ¥6,165,241.51[50] - The company reported a significant decrease in cash inflow from sales of goods and services, totaling ¥9,256,769.08 in Q1 2020 compared to ¥16,014,935.62 in Q1 2019, indicating a decline of approximately 42.5%[53] - The net cash flow from investing activities was -¥46,634,800.24, compared to -¥61,758,189.00 in the same period last year, indicating a smaller outflow year-over-year[51] Assets and Liabilities - The total assets at the end of the reporting period were ¥520,540,122.09, down 3.14% from ¥537,407,336.01 at the end of the previous year[10] - Total liabilities decreased from CNY 80,276,986.75 to CNY 72,745,449.10, indicating a reduction of about 9.4%[34] - The company's total equity decreased from CNY 457,130,349.26 to CNY 447,794,672.99, a decline of approximately 2.9%[35] - Cash and cash equivalents dropped significantly from CNY 69,426,595.64 to CNY 22,581,367.10, a decrease of about 67.5%[35] - The company’s inventory increased to ¥114,228,893.46, up from ¥98,708,251.70, reflecting changes in stock levels[32] Shareholder Information - The total number of shareholders at the end of the reporting period was 6,988[14] - The top three shareholders held a combined 32.48% of the company's shares, with the largest shareholder holding 12.43%[14] Research and Development - Research and development expenses decreased by 36.72% to ¥1,829,419.56 from ¥2,890,772.63 in the previous year, indicating reduced investment in R&D[18] - Research and development expenses for Q1 2020 were CNY 1,829,419.56, down 36.8% from CNY 2,890,772.63 in Q1 2019[42] Financial Adjustments and Standards - The company has not made any adjustments to its financial statements for the reporting period[60] - The first quarter report was not audited[60] - The company is implementing new revenue and lease standards starting in 2020, but this does not apply to the current report[60]

Financial Performance - The company's operating revenue for 2019 was CNY 143,942,395.96, a decrease of 58.24% compared to CNY 344,653,912.77 in 2018[21] - The net profit attributable to shareholders was a loss of CNY 68,430,260.97, representing a decline of 1,163.68% from a profit of CNY 6,433,354.28 in the previous year[21] - The net cash flow from operating activities was CNY 22,868,691.03, an increase of 11.09% compared to CNY 20,586,527.27 in 2018[21] - Total assets at the end of 2019 were CNY 537,407,336.01, down 17.74% from CNY 653,305,879.76 at the end of 2018[21] - The company's net assets attributable to shareholders decreased by 13.31% to CNY 457,130,349.26 from CNY 527,327,410.84 in 2018[21] - Basic and diluted earnings per share were both CNY -0.68, a decrease of 1,233.33% from CNY 0.06 in 2018[21] - The weighted average return on net assets was -13.89%, a decline of 15.11% from 1.22% in the previous year[21] - The company reported a significant increase in non-recurring losses, with a net profit excluding non-recurring items at CNY -73,707,539.31, down 3,885.04% from CNY 1,947,338.09 in 2018[21] Revenue Breakdown - The main business revenue was CNY 123,556,737.23, down 61.47% from CNY 320,672,261.36 in the previous year[40] - The ultrasonic cleaning product revenue decreased by 58.46%, totaling CNY 97,689,241.85, while electroplating products saw a decline of 72.47% to CNY 13,924,820.08[40] - The overseas revenue accounted for 13.69% of total revenue, amounting to CNY 19,697,434.63, down 38.01% from the previous year[41] - The total sales volume for the main business was 356 units, reflecting a decrease of 27.05% compared to the previous year[44] Investment and R&D - Research and development expenses amounted to CNY 15.79 million, representing a 5.12% increase year-on-year, and accounted for 10.97% of operating revenue[52] - The company plans to invest 100 million RMB in research and development for innovative cleaning technologies over the next three years[106] - The company is focusing on high-end electronic glass applications, particularly in the growing electric vehicle sector, with plans to introduce advanced equipment in 2020[81] Cash Dividends and Shareholder Returns - The company plans not to distribute cash dividends or issue bonus shares[8] - The company has a clear cash dividend policy outlined in its articles of association, ensuring reasonable returns to investors[85] - No cash dividends were distributed in 2019, despite the company having positive profits available for distribution[87] Corporate Governance and Compliance - The company has committed to maintaining its independence and has outlined specific measures to ensure operational and financial independence[91] - The company has established a complete independent management system for labor, personnel, and compensation[93] - The company guarantees that its assets are fully controlled and operated independently, without illegal occupation by other entities[93] - The company has a structured governance framework that ensures independent functioning of its board and management[95] Market Strategy and Future Outlook - The company aims to enhance its market competitiveness and corporate image through the R&D design center expansion project, which does not directly generate economic benefits[74] - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[104] - The company is expanding its market presence in Southeast Asia, targeting a 25% market share within the next two years[106] Stock and Shareholder Management - The company plans to stabilize its stock price through various measures, including stock repurchase and management shareholding increases[112] - The stock repurchase price will not exceed the company's audited net asset value per share from the previous year[115] - The company will ensure that its stock distribution remains compliant with listing conditions after implementing stock price stabilization measures[114] Employee and Management Structure - The total number of employees in the company is 437, with 106 in the parent company and 331 in major subsidiaries[199] - The company has a total of 1 retired employee who requires financial support[199] - The total remuneration for directors, supervisors, and senior management during the reporting period amounts to 476.65万元[198] Mergers and Acquisitions - The company underwent mergers, including the absorption of subsidiaries, which were completed by the report date[46][47] - The company completed the merger of Suzhou and Keda Ultrasonic Equipment Co., Ltd. with Suzhou and Keda Surface Treatment Equipment Co., Ltd., resulting in the dissolution of the latter[138] Legal and Regulatory Compliance - There were no significant lawsuits or arbitration matters during the reporting period[140] - The company reported no penalties or rectification issues during the reporting period[141] - The company has not provided any guarantees to related parties during the reporting period[146]

2019 年第三季度报告 2019 年 10 月 1 深圳市和科达精密清洗设备股份有限公司 2019 年第三季度报告全文 第一节 重要提示 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。 深圳市和科达精密清洗设备股份有限公司 2019 年第三季度报告全文 深圳市和科达精密清洗设备股份有限公司 公司负责人卢争驰、主管会计工作负责人钟志芳及会计机构负责人(会计主 管人员)钟志芳声明：保证季度报告中财务报表的真实、准确、完整。 2 深圳市和科达精密清洗设备股份有限公司 2019 年第三季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 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） | 598,862,357.24 | 653,305,879.76 | | -8.33% | | 归属于上市公司 ...

深圳市和科达精密清洗设备股份有限公司 2019 年半年度报告全文 深圳市和科达精密清洗设备股份有限公司 2019 年半年度报告 2019 年 08 月 1 深圳市和科达精密清洗设备股份有限公司 2019 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的 真实、准确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和 连带的法律责任。 公司负责人卢争驰、主管会计工作负责人钟志芳及会计机构负责人(会计主 管人员)钟志芳声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 本半年度报告涉及未来计划等前瞻性陈述，不代表公司盈利预测，不构成 公司对投资者的实质承诺。 公司已在本报告中详细阐述公司可能存在的风险，详情请查阅本公告中第 四节"经营情况讨论与分析"中第十部分"公司面临的风险和应对措施"。敬请广 大投资者注意投资风险。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 2 | 目录 | | --- | | 第一节 | 重要提示、释义 | 2 | | --- | --- | --- | | 第二 ...

Financial Performance - The company's operating revenue for Q1 2019 was ¥34,230,251.39, a decrease of 39.18% compared to ¥56,282,810.80 in the same period last year[10] - The net profit attributable to shareholders was -¥4,184,363.21, representing a decline of 36.40% from -¥3,067,758.80 year-on-year[10] - The basic earnings per share were -¥0.04, a decrease of 33.33% compared to -¥0.03 in the same period last year[10] - Operating revenue fell by 39.18% to ¥34,230,251.39 compared to ¥56,282,810.80, primarily due to delays in installation and acceptance of non-standard customized products[18] - Net profit decreased by 36.40% to -¥4,184,363.21 from -¥3,067,758.80, mainly attributed to the reduction in revenue[18] - The company's net profit for Q1 2019 was not explicitly stated, but the decrease in revenue and costs indicates a challenging financial environment[38] - The net profit for Q1 2019 was a loss of CNY 4,184,363.21, compared to a loss of CNY 3,067,758.80 in Q1 2018, indicating an increase in losses of approximately 36.5%[41] - The total comprehensive income for Q1 2019 was -CNY 4,184,363.21, reflecting a decline from -CNY 3,067,758.80 in Q1 2018[41] - Operating profit for Q1 2019 was -CNY 5,130,264.37, compared to -CNY 3,324,746.67 in the same period last year, representing a deterioration of approximately 54.3%[41] Cash Flow - The net cash flow from operating activities was ¥3,135,356.90, down 34.25% from ¥4,768,610.67 in the previous year[10] - Cash inflow from operating activities decreased by 32.32% to ¥66,618,672.37 from ¥98,437,715.08, primarily due to a reduction in received payments[18] - Cash outflow from operating activities decreased by 32.23% to ¥63,483,315.47 from ¥93,669,104.41, mainly due to a decrease in payments made[18] - Total cash inflow from operating activities was ¥66,618,672.37, while cash outflow was ¥63,483,315.47, resulting in a net inflow of ¥3,135,356.90[48] - The cash flow from operating activities in Q1 2019 was CNY 56,786,342.28, a decrease from CNY 93,580,634.80 in Q1 2018[47] - The company experienced a net decrease in cash and cash equivalents of ¥44,872,061.35 during the quarter[49] Assets and Liabilities - Total assets at the end of the reporting period were ¥646,366,497.44, a decrease of 1.06% from ¥653,305,879.76 at the end of the previous year[10] - The net assets attributable to shareholders were ¥523,143,047.63, down 0.79% from ¥527,327,410.84 at the end of the previous year[10] - Cash and cash equivalents decreased by 42.38% to ¥61,013,078.53 from ¥105,885,139.88 due to the use of idle raised funds for investment[18] - The total assets decreased to ¥646,366,497.44 from ¥653,305,879.76, reflecting a decline in both current and non-current assets[30] - Total liabilities decreased to CNY 123,223,449.81 from CNY 125,978,468.92, a reduction of 2.2%[32] - The company's equity attributable to shareholders decreased to CNY 523,143,047.63 from CNY 527,327,410.84, a decline of 0.8%[32] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 8,931[14] - The top three shareholders held a combined 32.48% of the company's shares, with the largest shareholder holding 12.43%[14] Investment Activities - The company reported a significant increase in cash outflow for investment activities, totaling ¥61,827,189.00, compared to ¥35,922,069.60 in the previous year[49] - The net cash flow from investment activities was -¥61,758,189.00, indicating a substantial increase in investment expenditures[49] - The company did not generate investment income this period, resulting in a 100.00% decrease in investment income to ¥0[18] Other Financial Metrics - Research and development expenses for Q1 2019 were CNY 699,023.50, down from CNY 951,577.73 in Q1 2018, a decrease of about 26.5%[43] - The company incurred financial expenses of CNY 56,712.74 in Q1 2019, compared to a financial income of CNY 3,495.61 in the same period last year[43] - The company reported a foreign exchange loss of CNY 10,940.34 in Q1 2019, compared to a loss of CNY 9,192.64 in the previous year[41]

Financial Performance - The company's operating revenue for 2018 was CNY 344,653,912.77, a decrease of 0.86% compared to CNY 347,660,693.09 in 2017[20]. - The net profit attributable to shareholders for 2018 was CNY 6,433,354.28, representing a significant decline of 60.21% from CNY 16,168,233.68 in the previous year[20]. - The net profit after deducting non-recurring gains and losses was CNY 1,947,338.09, down 85.89% from CNY 13,799,554.59 in 2017[20]. - Basic earnings per share decreased to CNY 0.06, down 62.50% from CNY 0.16 in 2017[20]. - The company achieved total revenue of CNY 344.65 million in 2018, a slight decrease of 0.86% compared to CNY 347.66 million in 2017[35]. - The main business revenue accounted for 93.04% of total revenue in 2018, amounting to CNY 320.67 million, down from CNY 325.82 million in 2017, reflecting a decrease of 1.58%[39]. - The company reported a gross profit margin of 29.42%, which decreased by 3.49% year-on-year[41]. - The company reported a total revenue of 76,127,315 million CNY for the year, with a net profit of 31,561,970 million CNY, reflecting a decrease of 5,783,328 million CNY compared to the previous year[76]. Cash Flow and Assets - The net cash flow from operating activities improved to CNY 20,586,527.27, a turnaround from a negative cash flow of CNY -55,366,066.40 in 2017, marking a 137.18% increase[20]. - The company's total assets at the end of 2018 were CNY 653,305,879.76, an 8.85% decrease from CNY 716,730,060.13 at the end of 2017[20]. - The net cash flow from operating activities increased by 137.18% year-on-year, primarily due to a reduction in cash payments for goods and services and taxes[55]. - The net increase in cash and cash equivalents was CNY 5,775,369.69, a 130.76% increase compared to the previous year[55]. - Accounts receivable represented 39.67% of total assets, slightly increasing from 36.69% in the previous year[59]. - Inventory decreased to CNY 141,661,709.00, representing 21.68% of total assets, down from 23.72%[60]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.10 per 10 shares, totaling CNY 10,000,000 based on a base of 100,000,000 shares[6]. - The cash dividend for 2017 was 0.26 CNY per 10 shares, amounting to 2,600,000 CNY, which accounted for 16.08% of the net profit attributable to shareholders[83][87]. - The total distributable profit as of December 31, 2018, was 56,294,235.14 CNY, with the cash dividend representing 100% of the profit distribution[87]. - The company has not proposed any stock dividends or capital reserve transfers in the recent three years[84][87]. Research and Development - The company focused on R&D for new technologies in 2018, particularly in the ultrasonic and LCD sectors, leading to increased order volumes and sales in those areas[35]. - Research and development expenses amounted to CNY 15,020,004.80, a decrease of 20.18% from 2017, representing 4.36% of total revenue[53]. - The company is focusing on enhancing its R&D efforts, with a budget increase of 30% allocated for new technology innovations[91]. Market and Sales Performance - In Q1 2018, the company reported revenue of CNY 56.28 million, which increased to CNY 119.45 million in Q4 2018, showing a significant growth in revenue over the quarters[24]. - The cleaning products segment generated CNY 235,178,057.18, accounting for 68.24% of total revenue, with a year-on-year growth of 7.42%[40]. - The plating products segment saw revenue of CNY 50,581,224.18, representing a 17.25% increase from the previous year[40]. - Revenue from water treatment products dropped significantly by 51.19% to CNY 29,325,298.75[40]. - The East China region contributed CNY 132,488,742.53 to revenue, a 27.53% increase from the previous year[41]. - The overseas revenue surged by 153.37% to CNY 31,775,772.94, indicating strong international demand[40]. Strategic Initiatives and Future Outlook - The company plans to enhance its product offerings in the solar energy sector, particularly in cleaning technologies for thin-film, flexible, and silicon wafer batteries, where it holds a leading position[78]. - The company anticipates a promising year in 2019, with expectations for improved operational results in the precision cleaning equipment market[78]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in sales from this region over the next two years[94]. - A strategic acquisition of a competitor is in progress, which is expected to enhance the company's technological capabilities and increase overall market competitiveness[95]. Corporate Governance and Compliance - The company emphasizes its commitment to social responsibility and sustainable development[140]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[113]. - The company has established four specialized committees under the board of directors, including the audit committee and the strategy committee, to enhance governance[188]. - The company has implemented measures to avoid any potential conflicts of interest and ensure compliance with regulatory standards[93]. Shareholder Structure and Management - The total number of shares is 100,000,000, with 42,328,350 shares (42.33%) under limited conditions and 57,671,650 shares (57.67%) under unrestricted conditions[147]. - The largest shareholder, Qin Youtang, holds 12.43% of the shares, amounting to 12,427,200 shares[152]. - The company has a total of 10,968 common shareholders as of the end of the reporting period[151]. - The company’s board includes a chairman, a vice chairman, and a general manager, with no changes in their positions during the reporting period[156]. - The company has seen changes in its management team, with several appointments and dismissals in recent years[163]. Internal Controls and Audit - The audit report confirmed that the financial statements fairly reflect the company's financial position as of December 31, 2018[198]. - The audit committee and internal control evaluations did not identify any major deficiencies that could not be rectified[192]. - The company reported no significant internal control deficiencies during the reporting period[191].

Financial Performance - Operating revenue for the reporting period was ¥68,307,789.46, representing a decline of 24.65% year-on-year[8]. - Net profit attributable to shareholders was -¥413,177.75, a decrease of 124.87% compared to the same period last year[8]. - Basic earnings per share were -¥0.0041, down 124.70% year-on-year[8]. - The company reported a net profit attributable to shareholders of ¥6,670,167.12 for the year-to-date, down 34.16% year-on-year[8]. - The estimated net profit attributable to shareholders for 2018 is projected to decrease by 44.34% to 900,000 to 1,500,000 yuan, compared to 1,616,820 yuan in 2017[20]. Cash Flow - The net cash flow from operating activities was -¥21,762,790.65, an increase of 261.48% compared to the previous year[8]. - The company's net cash flow from operating activities improved by 119.97%, reaching ¥7,200,375.90, compared to a negative cash flow of -¥36,051,939.80 in the same period last year[17]. - The net cash flow from investing activities increased by 231.27% to ¥14,691,190.00, up from -¥11,191,952.83, attributed to reduced expenditures on fixed assets and financial products[17]. Assets and Liabilities - Total assets at the end of the reporting period amounted to ¥711,769,511.51, a decrease of 0.69% compared to the end of the previous year[8]. - The company's accounts receivable decreased by 74.14% to ¥5,250,444.97 compared to ¥20,303,566.87 in the previous year due to the maturity and transfer of notes to upstream suppliers[17]. - Other current assets dropped by 96.02% to ¥1,201,692.18 from ¥30,209,789.81, primarily due to the expiration of idle raised funds invested in financial products[17]. - Short-term borrowings decreased by 89.47% to ¥2,000,000.00 from ¥19,000,000.00, reflecting the repayment of bank loans[17]. - The company's long-term expenses increased by 36.63% to ¥2,918,880.04, primarily due to the transfer of factory renovation costs[17]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 12,111[12]. - The largest shareholder, Qin Youtang, holds 12.43% of the shares, totaling 12,427,200 shares[12]. - The company has no overdue commitments from shareholders or related parties during the reporting period[19]. Other Financial Information - Non-operating income for the year-to-date amounted to ¥2,158,771.06, with government subsidies contributing significantly[10]. - The company reported a 58.66% increase in investment income to ¥1,726,515.88, compared to ¥1,088,210.14 in the previous year, due to higher returns from idle raised funds[17]. - The company's financial expenses decreased by 155.48% to -¥825,524.30, down from ¥1,488,009.42, due to reduced interest expenses on bank loans[17]. - The company reported a situation where entrusted financial management may not recover the principal or may face other impairment risks[25]. - No research, communication, or interview activities were conducted during the reporting period[25].

Financial Performance - The company's operating revenue for the first half of 2018 was ¥156,893,546.04, a decrease of 2.93% compared to ¥161,627,984.66 in the same period last year[17]. - The net profit attributable to shareholders was ¥7,083,344.87, down 16.36% from ¥8,468,834.70 year-on-year[17]. - The net profit after deducting non-recurring gains and losses was ¥5,392,380.56, representing a decline of 22.09% compared to ¥6,921,528.84 in the previous year[17]. - The basic earnings per share decreased to ¥0.0708, down 16.41% from ¥0.0847 in the same period last year[17]. - The company's main business involves the research, design, production, and sales of precision cleaning equipment, with applications across various industries including consumer electronics, automotive parts, and semiconductors[25]. - The company's revenue for the reporting period was approximately ¥156.89 million, a decrease of 2.93% compared to ¥161.63 million in the same period last year[35]. - The company's operating costs increased by 1.17% to ¥109.08 million from ¥107.82 million year-on-year[35]. - The gross profit margin for the main business was 30.47%, with a slight decrease from the previous year[40]. - The company reported a significant reduction in financial expenses by 82.57%, primarily due to decreased interest expenses on bank loans[35]. Cash Flow and Assets - The net cash flow from operating activities improved significantly to ¥28,963,166.55, compared to a negative cash flow of ¥30,031,472.86 in the same period last year, marking a 196.44% increase[17]. - Cash and cash equivalents decreased by 15.34% to ¥65,076,880.75, while inventory increased by 3.94% to ¥195,730,672.09[44]. - Total assets at the end of the reporting period were ¥742,496,684.02, an increase of 3.60% from ¥716,730,060.13 at the end of the previous year[17]. - The net assets attributable to shareholders at the end of the reporting period were ¥527,977,401.43, up 0.86% from ¥523,494,056.56 at the end of the previous year[17]. - The company experienced a 35.57% decrease in cash and cash equivalents compared to the beginning of the year, mainly due to the purchase of financial products with idle raised funds[28]. Investment and Projects - The total amount of raised funds was ¥17,239.00 million, with ¥1,176.57 million invested during the reporting period[51]. - The company has invested RMB 8.64 million in the flat panel cleaning equipment production project, achieving a progress of 49.19% by September 30, 2018[54]. - The ultrasonic cleaning equipment expansion project has received RMB 0.27 million in investment, with a progress of 12.45% as of September 30, 2018[54]. - A total of RMB 3 million of idle raised funds was temporarily used to supplement working capital, which was fully returned to the special account by June 30, 2018[55]. - The company has invested a total of RMB 11.76 million in various projects, with a cumulative investment of RMB 66.34 million as of the report date[54]. Market and Competition - The company maintains a strong competitive edge through its technological capabilities and a comprehensive cleaning solution offering, which includes pure water equipment and wastewater treatment[30]. - The company is a leading manufacturer of precision cleaning equipment in China, facing intensified market competition due to increasing demand and technological advancements[67]. - The company is focused on expanding its market presence and enhancing its product offerings to meet the evolving needs of its customers[63]. Risks and Challenges - The company anticipates fluctuations in operating performance due to the impact of downstream customer demand on its business operations[65]. - The company is facing risks related to a slowdown in fixed asset investment from downstream customers, which could lead to a decrease in orders and a potential decline in performance[66]. - Risks include potential bad debts from accounts receivable if downstream customers experience performance declines or increased competition[68]. - The company faces challenges in maintaining product quality due to the highly customized nature of its equipment, which is tailored to specific customer production processes[69]. - Rising labor costs due to structural shortages in the labor market may negatively impact the company's product competitiveness[72]. Shareholder and Equity Information - The total number of shareholders at the end of the reporting period was 13,549, with significant shareholders including Qin Youtan holding 12,427,200 shares (12.43%) and Long Xiaoming holding 11,666,470 shares (11.67%)[110]. - The report indicates that there were no changes in the controlling shareholder or actual controller during the reporting period[112]. - The company reported an increase in limited sale shares due to the addition of 50,000 shares from a departing employee, bringing the total to 1,963,812 shares[108]. - The company maintains a strong position with a total of 100,000,000 shares outstanding, ensuring stability in its capital structure[106]. Financial Reporting and Compliance - The semi-annual financial report for 2018 was not audited[78]. - The financial statements are prepared based on the going concern principle and comply with the relevant accounting standards issued by the Ministry of Finance[162]. - There are no significant doubts regarding the company's ability to continue as a going concern for the next 12 months from the reporting period[163]. - The company did not engage in any significant related party transactions during the reporting period[84].