Financial Performance - The company's operating revenue for 2021 was CNY 734,201,513.08, representing a 33.07% increase compared to CNY 551,724,703.77 in 2020[19] - The net profit attributable to shareholders for 2021 was CNY 63,272,991.40, which is a 10.84% increase from CNY 57,084,304.45 in 2020[19] - The net profit after deducting non-recurring gains and losses was CNY 60,898,444.30, up 11.58% from CNY 54,578,231.14 in the previous year[19] - The basic earnings per share for 2021 was CNY 0.19, an increase of 11.76% compared to CNY 0.17 in 2020[19] - The total assets at the end of 2021 were CNY 1,730,688,480.63, reflecting an 18.70% increase from CNY 1,458,062,614.15 at the end of 2020[19] - The net assets attributable to shareholders at the end of 2021 were CNY 828,279,296.89, a 6.29% increase from CNY 779,296,919.61 in 2020[19] - The company reported a net cash flow from operating activities of CNY -41,269,894.63, an improvement of 14.53% from CNY -48,288,055.52 in 2020[19] - The weighted average return on net assets for 2021 was 7.71%, slightly up from 7.45% in 2020[19] Revenue Breakdown - Control valves accounted for 87.43% of total revenue, with sales amounting to CNY 641.87 million, reflecting a 36.77% increase year-on-year[39] - The East China region contributed 80.80% of total revenue, with a significant year-on-year growth of 57.34%[39] - In 2021, the company's total revenue for the four quarters was approximately CNY 734 million, with Q4 revenue reaching CNY 199 million, marking a steady increase[23] Market and Product Development - The control valve market is expected to grow steadily due to increased investments in sectors like petrochemicals and energy, driven by national policies on carbon neutrality[27] - The company focuses on high-end control valve products, aiming to replace imported products in the domestic market, which presents significant growth opportunities[28] - The company is developing several new products, including the R1 series high-frequency control ball valve and P series multi-stage pressure regulating valve, aimed at enhancing market competitiveness[52][53] Employee Engagement and Management - The company has initiated an employee stock ownership plan, repurchasing 1,762,000 shares to enhance employee engagement and core competitiveness[32] - The company has been actively improving employee treatment and performance assessment to enhance human resource management[83] - The company implemented salary adjustments in March and August 2021, with a coverage rate exceeding 90%[117] Governance and Compliance - The company has maintained compliance with corporate governance standards, holding three shareholder meetings and ten board meetings during the reporting period[89][90] - The internal audit department has been actively evaluating the effectiveness of internal controls and conducting audits on economic benefits and major contracts[91] - There are no reported instances of fund occupation by controlling shareholders or related parties, ensuring financial integrity[92] Environmental Responsibility - The company has implemented strict environmental protection measures, ensuring that all pollutants meet national and local emission standards, with no environmental violations reported during the year[144] - The company has developed an emergency response plan for environmental incidents, ensuring effective handling of potential environmental risks[138] - The company conducts regular environmental monitoring through qualified third-party agencies to ensure compliance with water, air, and noise emission standards[139] Financial Management - The company reported a significant increase in financing activities, with cash inflow and outflow both rising significantly due to increased credit financing needs[58] - The company’s financial expenses surged by 149.82% to 10,074,934.26 CNY, primarily due to interest expenses from convertible bonds[51] - The company has a zero balance in its fundraising special account as of December 31, 2021, having completed the account closure procedures[75] Shareholder Information - The total number of shareholders was 17,539, with significant shareholders holding over 5% of shares[181] - The largest shareholder, Shen Jianbiao, holds 37.48% of the shares, amounting to 124,616,800 shares, with 31,154,200 shares pledged[181] - The company plans to repurchase shares with a total amount not less than RMB 10 million and not exceeding RMB 20 million, with a maximum repurchase price of RMB 12.57 per share[185] Research and Development - The company holds 53 invention patents, 98 utility model patents, and 15 design patents, showcasing its commitment to innovation[34] - Research and development expenses increased by 25.42% to 27,829,442.78 CNY, accounting for 3.79% of total revenue[55] - The company has successfully developed multiple national invention and utility model patents, including the "Y-type direct connection jacket gas valve" and "multi-turn pneumatic actuator" which have been applied in various domestic installations[99]

Revenue and Profit - The company's revenue for Q3 2021 reached ¥193,519,488.06, representing a year-on-year increase of 28.14%[3] - Net profit attributable to shareholders for Q3 2021 was ¥17,795,814.49, an increase of 8.98% compared to the same period last year[3] - The basic earnings per share for Q3 2021 was ¥0.053, reflecting a growth of 20.45% year-on-year[3] - The total operating revenue for the third quarter of 2021 was RMB 534,713,437.51, an increase of 34.7% compared to RMB 396,608,008.09 in the same period of 2020[16] - The company's net profit for the third quarter of 2021 was RMB 49,147,977.77, compared to RMB 46,150,794.15 in the same period of 2020, reflecting a growth of 4.3%[16] - The total revenue for Q3 2021 was approximately CNY 48.90 million, an increase from CNY 45.33 million in Q3 2020, representing a growth of about 5.7%[18] - The net profit for Q3 2021 reached CNY 40.34 million, compared to CNY 37.62 million in the same period last year, marking an increase of approximately 7.2%[18] - The basic earnings per share for Q3 2021 was CNY 0.121, up from CNY 0.108 in Q3 2020, reflecting a growth of about 12.0%[18] Assets and Liabilities - Total assets at the end of Q3 2021 amounted to ¥1,647,088,073.83, which is a 12.96% increase from the end of the previous year[3] - As of September 30, 2021, total current assets amounted to RMB 884,767,716.25, an increase of 18.0% from RMB 749,295,022.75 at the end of 2020[14] - The company's total liabilities as of September 30, 2021, were RMB 842,456,062.01, which is an increase of 24.1% compared to RMB 678,765,694.54 at the end of 2020[15] - The company's total equity attributable to shareholders increased by 3.25% to ¥804,632,011.82[3] Cash Flow - The company experienced a 343.42% increase in net cash flow from financing activities, totaling ¥8,814.95 million, primarily due to increased short-term loans[8] - Cash inflow from operating activities was CNY 398.93 million, compared to CNY 255.89 million in the previous year, indicating a significant increase of approximately 55.7%[20] - Cash outflow from operating activities totaled CNY 440.11 million, up from CNY 300.18 million in the same period last year, representing an increase of about 46.7%[20] - The net cash flow from operating activities was negative at CNY -41.18 million, an improvement from CNY -44.29 million in Q3 2020[20] - The total cash flow from financing activities was CNY 88.15 million, significantly higher than CNY 19.88 million in Q3 2020, indicating an increase of about 343.5%[21] Research and Development - Research and development expenses for Q3 2021 were ¥1,742.95 million, up 46.56% as the company increased its R&D investment[8] - Research and development expenses for the third quarter of 2021 were RMB 17,429,533.69, representing a 46.8% increase from RMB 11,892,746.65 in the same period of 2020[16] Accounts and Inventory - The company reported a significant increase in accounts receivable, which rose by 55.87% to ¥28,910.40 million due to increased revenue[7] - Accounts receivable rose to RMB 289,104,024.25, a significant increase of 55.9% from RMB 185,482,806.19 at the end of 2020[13] - The inventory level increased to RMB 340,028,125.83 as of September 30, 2021, up 10.2% from RMB 308,556,326.50 at the end of 2020[14] - The company reported a significant increase in contract assets, which rose to RMB 59,660,381.76, up 25.5% from RMB 47,559,401.26 at the end of 2020[14] - Contract liabilities surged by 201.48% to ¥3,396.20 million, indicating a rise in customer prepayments[7] Other Financial Information - The company did not report any non-recurring gains or losses that would affect the financial results significantly[5] - The company did not adjust the balance sheet items for the new leasing standards implemented in 2021, indicating no significant changes in accounting practices[22] - The company's cash and cash equivalents decreased to RMB 55,180,699.72 from RMB 63,596,665.63 at the end of 2020, a decline of 13.5%[13] - The company raised CNY 230 million through borrowings in Q3 2021, compared to CNY 140 million in the same period last year, reflecting a growth of approximately 64.3%[21]

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 341,193,949.45, representing a 38.93% increase compared to CNY 245,581,218.40 in the same period last year[19]. - The net profit attributable to shareholders of the listed company was CNY 22,546,595.87, up 5.90% from CNY 21,290,933.12 in the previous year[19]. - The net cash flow from operating activities was CNY 27,678,348.37, a significant improvement of 219.75% compared to a negative cash flow of CNY -23,113,362.07 in the same period last year[19]. - Basic earnings per share increased to CNY 0.068, reflecting a 6.25% rise from CNY 0.064 in the previous year[19]. - Total assets at the end of the reporting period were CNY 1,549,266,591.33, marking a 6.26% increase from CNY 1,458,062,614.15 at the end of the previous year[19]. - The weighted average return on net assets was 2.87%, slightly up from 2.83% in the previous year[19]. - The net profit after deducting non-recurring gains and losses was CNY 21,779,018.98, a 3.87% increase from CNY 20,967,283.04 in the same period last year[19]. - The company reported a total net assets attributable to shareholders of CNY 785,528,512.88, which is a 0.80% increase from CNY 779,296,919.61 at the end of the previous year[19]. Research and Development - Research and development investment increased by 37.73% compared to the same period last year, emphasizing the company's commitment to innovation and high-quality development[28]. - Research and development expenses increased by 37.73% to CNY 10,602,238.52, reflecting the company's commitment to enhancing R&D efforts[39]. - The company holds 53 invention patents, 99 utility model patents, and 14 design patents, showcasing its strong focus on technological innovation[31]. Market Position and Strategy - The company successfully ranked first in all seven segments of the Sinopec 2021 annual control valve and accessory framework agreement, enhancing its industry collaboration[27]. - The company plans to enhance its competitive edge by focusing on high-end control valve product development and strengthening customer relationships[57]. - The company has been recognized as a high-tech enterprise in Jiangsu Province and has received various industry accolades, reinforcing its market position[31]. Financial Management - The company's financial expenses rose significantly by 267.17% to CNY 6,158,231.57, mainly due to increased short-term borrowings and interest expenses from convertible bonds[39]. - The gross profit margin for the manufacturing sector was 28.55%, down 6.70% from the previous year, with total operating costs rising by 53.30%[40]. - The company reported a decrease in income tax expenses by 28.19% to CNY 3,015,790.59 compared to the previous year[39]. - The company reported a financial expense of CNY 6,158,231.57, significantly higher than CNY 1,677,205.11 in the previous year, primarily due to increased interest expenses[137]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company repurchased a total of 1,799,940 shares, accounting for 0.54% of the total share capital, with a total transaction amount of ¥13,270,195.00 from April 10, 2020, to January 11, 2021[63]. - The total equity attributable to the parent company's owners at the end of the reporting period is 785,528,512.88 CNY, showing a decrease of 6,231,593.27 CNY compared to the previous period[156]. - The total equity attributable to minority shareholders is 6,231,593.27 CNY, reflecting the interests of non-controlling stakeholders in the company[156]. Risk Factors - The company acknowledges risks such as macroeconomic fluctuations and customer concentration risks, urging investors to be aware of investment risks[4]. - The company faced customer and industry concentration risks, with the top five customers accounting for 37.93% to 48.47% of sales from 2018 to 2020[56]. - The gross profit margin for the company's main business showed a slight decline from 38.13% in 2018 to 36.97% in 2020, indicating potential risks due to increased competition[57]. Environmental and Social Responsibility - The company does not belong to the key pollutant discharge units and has not faced any administrative penalties for environmental issues during the reporting period[67]. - The company actively engages in social responsibility initiatives, including support for low-income households and community development projects[72]. - The company has established an emergency plan for environmental incidents, ensuring effective response to any environmental emergencies[68]. Accounting and Compliance - The financial statements were approved by the board of directors on August 18, 2021, ensuring compliance with regulatory requirements[168]. - The financial statements prepared by the company comply with the requirements of the enterprise accounting standards, reflecting the financial position, operating results, changes in owners' equity, and cash flows accurately[172]. - The company assessed its ability to continue as a going concern and found no issues affecting this capability[170].

Financial Performance - The company's revenue for Q1 2021 was CNY 146,243,117.79, representing a 38.11% increase compared to CNY 105,892,598.64 in the same period last year[8] - Net profit attributable to shareholders was CNY 8,907,224.85, up 7.40% from CNY 8,293,840.88 year-on-year[8] - Total operating revenue for Q1 2021 reached ¥146,243,117.79, compared to ¥105,892,598.64 in the same period last year, indicating a growth of approximately 38.1%[40] - Net profit for Q1 2021 was ¥8,907,224.85, up from ¥8,293,840.88 in Q1 2020, representing an increase of approximately 7.4%[42] - The net profit for the period was ¥12,178,799.64, up from ¥8,766,512.45 in the same period last year, reflecting a growth of approximately 39.5%[46] - The total comprehensive income for the period was ¥12,178,799.64, compared to ¥8,766,512.45 in the previous year, showing an increase of approximately 39.5%[47] Cash Flow and Liquidity - The net cash flow from operating activities improved by 30.47%, reaching CNY -31,259,841.27, compared to CNY -44,957,299.18 in the previous year[8] - As of March 31, 2021, the company's cash and cash equivalents decreased to approximately RMB 37.90 million from RMB 63.60 million at the end of 2020, representing a decline of about 40.5%[32] - Cash and cash equivalents at the end of the period were ¥17,831,670.12, down from ¥89,731,773.78 at the beginning of the period[51] - The cash flow from operating activities showed a net outflow of ¥31,259,841.27, an improvement from the previous outflow of ¥44,957,299.18[50] - Net cash flow from operating activities was negative at -¥32,381,019.31, an improvement from -¥39,381,288.51 in the previous period[21] - The ending balance of cash and cash equivalents decreased to ¥16,136,988.42 from ¥80,583,928.48, reflecting a decline of approximately 80%[54] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,491,827,026.45, a 2.32% increase from CNY 1,458,062,614.15 at the end of the previous year[8] - The company's total assets as of March 31, 2021, amounted to approximately RMB 1.49 billion, up from RMB 1.46 billion at the end of 2020[33] - Total liabilities increased to approximately RMB 707.00 million from RMB 678.77 million, reflecting an increase of about 4.2%[34] - The company's total liabilities increased to ¥666,455,653.56 from ¥644,194,447.15, marking a rise of about 3.9%[38] Research and Development - The company reported a 30.54% increase in R&D expenses, totaling CNY 4,374,497.88, compared to CNY 3,351,079.68 in the previous year[16] - The company reported R&D expenses of ¥4,374,497.88, up from ¥3,351,079.68, indicating an increase of about 30.5%[41] - Research and development expenses increased to ¥4,037,698.48 from ¥3,351,079.68, reflecting a commitment to innovation[45] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 16,875[11] - The company did not engage in any repurchase transactions among the top 10 shareholders during the reporting period[12] - The company repurchased a total of 1,799,940 shares, accounting for 0.54% of the total share capital, with a total transaction amount of approximately RMB 13.27 million[17] Operational Metrics - Total operating costs increased to ¥135,151,465.41 from ¥95,494,041.24, reflecting a rise of about 41.5%[41] - The total operating costs for the period were ¥93,276,412.78, compared to ¥69,770,328.58 in the previous period, indicating a rise in operational expenses[45] - Operating cash inflow from sales increased to ¥99,648,011.19 from ¥61,409,701.74, representing a growth of approximately 62% year-over-year[21] Investment and Financing Activities - The company incurred financial expenses of ¥3,097,756.75, significantly higher than the previous year's ¥729,543.26, primarily due to increased interest expenses[45] - Cash inflow from financing activities amounted to ¥60,000,000.00, with a net cash flow of ¥36,539,350.16, a significant recovery from -¥21,894,946.81 previously[54] - Investment activities generated a net cash outflow of -¥19,822,658.01, compared to a net inflow of ¥45,667,589.18 in the previous period[54] Project Updates - The special valve deep processing project has a total investment commitment of RMB 11 million, with 101% of the funds already invested and the project has commenced production[23] - The intelligent control valve manufacturing base project has a total investment commitment of RMB 11.16 million, with 101% of the funds already invested and the project has commenced production[23] Miscellaneous - The company has no overdue commitments from major shareholders or related parties during the reporting period[19] - There were no significant differences in the progress of major contracts that would affect the contract amount by more than 30%[24] - The first quarter report was not audited, indicating that the figures may be subject to further review[57]

Financial Performance - The company's operating revenue for 2020 was CNY 551,724,703.77, representing a 15.76% increase compared to CNY 476,613,790.84 in 2019[17]. - The net profit attributable to shareholders for 2020 was CNY 57,084,304.45, a decrease of 18.58% from CNY 70,107,852.79 in 2019[17]. - The net profit after deducting non-recurring gains and losses was CNY 54,578,231.14, showing a slight increase of 1.10% from CNY 53,983,831.05 in 2019[17]. - The net cash flow from operating activities was negative at CNY -48,288,055.52, a decline of 337.32% compared to CNY 20,346,870.20 in 2019[17]. - Basic earnings per share decreased by 19.05% to CNY 0.17 from CNY 0.21 in 2019[17]. - Total assets at the end of 2020 were CNY 1,458,062,614.15, an increase of 9.90% from CNY 1,326,722,834.86 at the end of 2019[17]. - The net assets attributable to shareholders increased by 4.70% to CNY 779,296,919.61 from CNY 744,332,379.35 at the end of 2019[17]. - The weighted average return on equity for 2020 was 7.45%, down from 10.51% in 2019, a decrease of 3.06%[17]. Revenue and Sales - The company's total revenue for 2020 was 552 million yuan, representing a growth of 15.7% compared to 2019's revenue of 477 million yuan[28]. - Control valves accounted for 85.06% of total operating revenue, generating CNY 469.31 million, reflecting a 14.14% increase from the previous year[44]. - The company reported a significant increase in revenue from accessories, which rose by 174.54% to CNY 30.42 million[44]. - The East China region contributed 68.33% of total revenue, amounting to CNY 377.01 million, with a year-on-year growth of 14.78%[44]. - In 2020, the company achieved a sales volume of 14,497 units for control valves, representing a year-on-year increase of 5.60% compared to 2019[48]. Research and Development - The company has a total of 53 invention patents and 92 utility model patents as of December 31, 2020, indicating a strong focus on innovation[33]. - The company’s R&D team focuses on high-end control valve products, achieving breakthroughs in various technical fields, thus competing directly with international brands[32]. - Research and development expenses increased by 32.60% to ¥22,189,285.79, representing 4.02% of total operating revenue[54]. - The company is advancing the development of new products, including the P series single-seat valve and M series sleeve valve, with new product molds already in trial production[54]. - The company has successfully developed multiple new products, including the "Y-type direct connection jacket gas valve" and "multi-turn pneumatic actuator," which have been applied in various domestic installations[179]. Market Position and Strategy - The company secured first place in all six bidding sections for Sinopec's 2020 control valve procurement framework, providing a solid market foundation for sustainable development[38]. - The company has established long-term cooperative relationships with major domestic enterprises, enhancing its market position in the control valve industry[27]. - The domestic control valve market is expected to maintain rapid growth due to increased investment in sectors like oil and gas, petrochemicals, and environmental protection[79]. - The company plans to enhance production efficiency and management levels, aiming to break through capacity constraints and fully implement annual production targets[80]. - The company plans to expand its market presence with new product offerings and technological advancements[137]. Cash Dividends and Profit Distribution - The company plans to distribute a cash dividend of CNY 0.38 per 10 shares (including tax) to all shareholders[6]. - The cash dividend amount for 2020 is CNY 12,635,831.71, which represents 22.14% of the net profit attributable to ordinary shareholders[90]. - The total cash dividend, including other methods, amounts to CNY 22,640,460.92, accounting for 100% of the profit distribution total[91]. - The company plans to maintain a stable and reasonable profit distribution policy, prioritizing cash dividends while ensuring sustainable development[85]. - The company has not proposed a cash dividend distribution plan despite having positive profits available for distribution to ordinary shareholders[90]. Risks and Challenges - The company faces risks including macroeconomic fluctuations, customer and industry concentration, and declining gross margins[6]. - The company is at risk of declining gross margins due to increased competition in the industry[82]. - The top five customers accounted for 45.91%, 48.47%, and 37.93% of sales from 2018 to 2020, highlighting a concentration risk in customer base[82]. - The company faces risks related to macroeconomic fluctuations, particularly in industries such as petrochemicals and steel, which are closely tied to its sales[82]. Corporate Governance and Compliance - The company has established a complete and independent financial management system, ensuring no interference from shareholders in financial operations[198]. - The company operates independently in business, personnel, assets, institutions, and finance, with no reliance on related parties[197]. - The company has maintained a stable relationship with its accounting firm, which has provided audit services for nine consecutive years[115]. - The company has not faced any penalties or rectification issues during the reporting period[119]. - The company has no significant related party transactions during the reporting period[125]. Employee Management and Social Responsibility - The total number of employees in the company is 783, with 638 in the parent company and 145 in major subsidiaries[186]. - The company has established a comprehensive training system for employees, enhancing their skills and overall quality[142]. - The company actively engaged in social responsibility, including donations during the COVID-19 pandemic, receiving recognition from local authorities[143]. - In 2020, over 95% of employees received salary increases due to performance evaluations linked to departmental and individual performance[188]. - The company has implemented salary regulations to ensure that employees' wages are not affected during the COVID-19 pandemic[188]. Shareholder Information and Stock Management - The company repurchased a total of 1,330,540 shares, accounting for 0.40% of the total share capital, with a total transaction amount of RMB 10,001,426.00[153]. - The company plans to use repurchased shares for employee stock ownership plans or equity incentives[153]. - The largest shareholder, Shen Jianbiao, holds 37.48% of the shares, totaling 124,616,800 shares, with 93,462,600 shares under lock-up[159]. - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of listing, ensuring stability in shareholding[95]. - The company will disclose any share reduction plans three trading days in advance[96].

Financial Performance - Operating income for the reporting period was CNY 151,026,789.69, representing a year-on-year increase of 4.74%[8] - Net profit attributable to shareholders decreased by 49.15% to CNY 16,329,332.52 compared to the same period last year[8] - Basic earnings per share fell by 54.17% to CNY 0.044[8] - The net profit after deducting non-recurring gains and losses was CNY 14,796,174.42, a decrease of 11.78% compared to the same period last year[8] - Net profit for the first nine months decreased by 34% to 37.62 million from 57.00 million, largely due to the recognition of gains from the disposal of a factory in the previous period[18] - The company reported a net profit of 2,000 million yuan for Q3 2020, representing a 20% increase compared to the same period last year[28] - The net profit for Q3 2020 was CNY 16,329,332.52, down from CNY 32,115,182.81 in the same period last year, indicating a decline of approximately 49%[48] - Total comprehensive income for the period was ¥22,609,016.82, down from ¥33,406,071.75, reflecting overall performance decline[52] Cash Flow and Liquidity - The net cash flow from operating activities was negative at CNY -21,178,163.18, a decline of 164.76%[8] - Operating cash flow for the first nine months showed a significant decline of 870.81% to -44.29 million from 5.75 million, attributed to an increase in bill collection[18] - Cash inflow from operating activities totaled ¥255,890,047.15, down from ¥336,460,773.14, indicating a decrease of about 24% year-over-year[62] - The net cash flow from operating activities was negative at -¥44,291,525.25, compared to a positive ¥5,746,108.20 in the previous year[62] - The total cash and cash equivalents at the end of the period was ¥51,592,078.11, down from ¥91,827,047.85 at the end of the previous year[63] Assets and Liabilities - Total assets increased by 4.45% to CNY 1,385,719,994.98 compared to the end of the previous year[8] - Cash and cash equivalents decreased by 41.67% to 87.30 million from 149.65 million due to the utilization of funds raised from convertible bonds[17] - Total liabilities increased to CNY 625,926,022.40 from CNY 582,390,455.51, marking a rise of about 7.5%[40] - The company's total liabilities increased to CNY 588,987,400.89, up from CNY 542,527,238.37, indicating an increase of about 8.56%[44] - Total current assets amounted to CNY 887,307,850.63, an increase from CNY 736,807,617.35[69] Shareholder Information - The company reported a total of 18,124 shareholders at the end of the reporting period[12] - The largest shareholder, Shen Jianbiao, holds 37.48% of the shares, amounting to 124,616,800 shares[12] Government Support and Subsidies - The company received government subsidies amounting to CNY 2,952,204.01 during the reporting period[9] - Other income increased by 298.68% to 2.95 million from 0.74 million, mainly due to increased government subsidies[18] Investment and Development - Total investment in special valve deep processing project reached 96% completion with an investment of 42.00 million out of a total commitment of 110.00 million[25] - Investment in new product development increased by 25% year-on-year, focusing on smart control technologies[28] - The company plans to enhance its product offerings and market presence through strategic investments and R&D initiatives[72] Market and Strategic Outlook - User data indicated a growth in active users by 20% compared to the previous quarter, reaching 1.2 million active users[28] - The company provided a future outlook projecting a revenue growth of 10% for the next quarter, driven by new product launches and market expansion strategies[28] - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share by the end of 2021[28] - A strategic acquisition of a local tech firm was announced, expected to enhance the company's R&D capabilities and product offerings[28] Cost Management and Profitability - The gross profit margin improved to 35%, up from 30% in the previous quarter, due to cost optimization measures[28] - Total operating costs amounted to CNY 131,049,613.23, compared to CNY 126,663,047.93 in the prior period, reflecting a rise in costs[47] - The company's financial expenses decreased to ¥2,598,852.54 from ¥3,865,613.35, showing improved cost management[53]

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 245,581,218.40, representing a 10.97% increase compared to CNY 221,297,286.98 in the same period last year[18]. - The net profit attributable to shareholders of the listed company decreased by 14.45% to CNY 21,290,933.12 from CNY 24,887,031.44 year-on-year[18]. - The net profit after deducting non-recurring gains and losses was CNY 20,967,283.04, down 13.96% from CNY 24,367,998.66 in the previous year[18]. - Basic earnings per share decreased by 14.67% to CNY 0.064 from CNY 0.075 year-on-year[18]. - The company reported a total profit of CNY 25,490,489.80, down 15.5% from CNY 29,941,043.51 in the first half of 2019[151]. - The company reported a net increase in cash and cash equivalents of -44,624,843.51 CNY, compared to -32,883,287.68 CNY in the previous period[159]. Cash Flow and Investments - The net cash flow from operating activities improved by 14.25%, amounting to CNY -23,113,362.07 compared to CNY -26,954,580.51 in the same period last year[18]. - The company’s investment activities generated a net cash flow of -10.96 million yuan, an improvement of 81.37% year-on-year[41]. - Total cash inflow from investment activities was 248,134,405.88 CNY, significantly higher than 7,500.00 CNY in the previous period[162]. - The net cash flow from investment activities was -10,963,174.44 CNY, an improvement from -58,831,295.67 CNY year-over-year[158]. - The company has engaged in entrusted wealth management with a total amount of CNY 7,500 million, with an overdue amount of CNY 700 million[101]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,346,153,070.74, a 1.46% increase from CNY 1,326,722,834.86 at the end of the previous year[18]. - The company's asset-liability ratio increased to 44.49% as of June 30, 2020, compared to 37.48% on June 30, 2019, reflecting an increase of 18.71%[131]. - The total liabilities amounted to CNY 598,960,021.50, up from CNY 582,390,455.51, reflecting an increase of about 2.3%[143]. - Current liabilities rose to CNY 399,585,489.21, up from CNY 386,983,190.07, indicating an increase of about 3.1%[143]. Research and Development - R&D investment increased by 14.34% to 7.70 million yuan, with a total of 52 invention patents and 110 utility model patents held by the company[38]. - The company has focused on the R&D of mid-to-high-end control valve products, leveraging advanced technology and reliable product quality to capture opportunities for domestic product substitution of imports[73]. - The company has achieved significant breakthroughs in high-temperature and high-pressure valve technologies, allowing it to compete directly with international brands like Fisher and Samson[30]. Market and Competition - The company faces risks including macroeconomic fluctuations, customer and industry concentration, and declining gross margins[5]. - Customer concentration risk is significant, with the top five customers accounting for 48.47% of sales in 2019, primarily in the oil and chemical sectors, which could impact future revenue if new projects are not secured[71]. - The company's gross margin for its main business was 37.25% in 2019, showing a decline from previous years, highlighting potential risks of margin compression due to increased competition[72]. Shareholder and Stock Management - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company has implemented a share repurchase plan to stabilize stock prices, with a maximum repurchase amount not exceeding 20% of the previous year's audited net profit attributable to shareholders[80]. - The actual controller and major shareholders have committed to not transferring or managing their shares for 36 months post-IPO to stabilize the company's stock price[79]. - The company will consider repurchasing its shares as part of the stock price stabilization measures, with the repurchase price not exceeding the latest audited net asset value per share[79]. Corporate Governance and Compliance - The half-year financial report has not been audited[83]. - The company has not faced any penalties or rectification issues during the reporting period[87]. - There are no significant litigation or arbitration matters affecting the company, with a potential claim amounting to 19.7765 million yuan currently unresolved[85]. - The company has not encountered any major changes in project feasibility, suggesting that ongoing projects remain viable and aligned with strategic goals[63]. Environmental and Social Responsibility - The company does not belong to the key pollutant discharge units as per the environmental protection department, indicating no significant harmful emissions during production[105]. - The company has not initiated any targeted poverty alleviation work in the reporting period and has no subsequent plans[106].

Financial Performance - The company's revenue for Q1 2020 was ¥105,892,598.64, representing an increase of 8.92% compared to ¥97,222,568.11 in the same period last year[9]. - Net profit attributable to shareholders decreased by 28.91% to ¥8,293,840.88 from ¥11,666,339.78 year-on-year[9]. - Basic earnings per share fell by 28.57% to ¥0.025 from ¥0.035 in the same period last year[9]. - The net profit for the period was impacted by insufficient operating rates and a decline in gross margin due to the pandemic[17]. - The operating profit for the first quarter was CNY 10,050,196.09, compared to CNY 13,968,752.06 in the previous year, indicating a decline of about 28.5%[46]. - The total operating income for the first quarter of 2020 was CNY 102,885,222.62, an increase from CNY 96,723,068.11 in the previous period[48]. - The total comprehensive income for the first quarter was CNY 8,293,840.88, down from CNY 11,666,339.78 in the previous year[47]. Cash Flow - The net cash flow from operating activities was -¥44,957,299.18, a decline of 70.38% compared to -¥26,387,114.32 in the previous year[9]. - The cash inflow from operating activities was CNY 66,702,430.20, compared to CNY 75,693,748.77 in the previous year, indicating a decrease of approximately 11.5%[51]. - The cash inflow from operating activities totaled 61,901,226.56 CNY, while cash outflow was 101,282,515.07 CNY, leading to a net cash flow of -39,381,288.51 CNY[56]. - The total cash inflow from investment activities was 200,134,405.88 CNY, while cash outflow was 167,810,119.67 CNY, resulting in a net cash flow of 32,324,286.21 CNY from investments[53]. - The net cash flow from financing activities was -20,858,446.81 CNY, a significant decrease from a positive cash flow of 25,935,726.03 CNY in the previous period[54]. - The cash flow from investment activities showed a significant improvement with a net cash flow of 45,667,589.18 CNY compared to -23,586,737.28 CNY in the previous period[57]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,280,284,942.85, down 3.50% from ¥1,326,722,834.86 at the end of the previous year[9]. - Total liabilities decreased to CNY 509,906,040.23 from CNY 542,527,238.37[42]. - Current liabilities decreased to CNY 312,300,693.46 from CNY 347,119,972.93[42]. - Non-current liabilities increased slightly to CNY 197,605,346.77 from CNY 195,407,265.44[42]. - Owner's equity increased to CNY 750,658,491.71 from CNY 741,535,143.04[42]. - The total assets of the company as of January 1, 2020, were 1,326,722,834.86 CNY, reflecting the company's financial position[59]. Investments and Financing - The company utilized idle raised funds for financial management, resulting in a significant increase in investment cash flow[17]. - The company issued 2.3 billion RMB of convertible bonds in July 2019, with a conversion price of 9.55 RMB per share[18]. - The company plans to repurchase shares using its own funds, with a total repurchase amount between 10 million and 20 million RMB, at a price not exceeding 12.57 RMB per share[19]. - On April 10, 2020, the company repurchased 305,260 shares, accounting for 0.09% of the total share capital, with a total transaction amount of approximately 2.37 million RMB[19]. - The company has entrusted 7.5 million RMB in bank financial products, with an expected annualized return of 3.60%[24]. Compliance and Risk Management - The company has not reported any high-risk entrusted financial products during the reporting period[24]. - There were no instances of non-compliance with external guarantees during the reporting period[29]. - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[30]. - The company has not engaged in derivative investments during the reporting period[28]. - The company has no overdue or unfulfilled commitments from actual controllers or shareholders during the reporting period[21]. Other Financial Metrics - The weighted average return on equity decreased to 1.10% from 1.81% year-on-year[9]. - The total operating costs increased to CNY 95,494,041.24 from CNY 81,900,597.55, reflecting a rise of approximately 16.5%[48]. - The financial expenses for the quarter were CNY 704,878.26, a slight decrease from CNY 754,308.76 in the previous year[48]. - The company reported a credit impairment loss of CNY -1,118,152.31, compared to CNY -1,926,567.15 in the previous year, showing an improvement[46]. - Research and development expenses remained stable at CNY 3,351,079.68, compared to CNY 3,455,040.96 in the previous year[48]. Future Considerations - The company has not yet audited the first quarter report, indicating potential adjustments in future reports[64]. - The company is implementing new revenue and leasing standards starting from 2020, which may affect financial reporting[63].

Financial Performance - The company's operating revenue for 2019 was CNY 476,613,790.84, representing a 26.74% increase compared to CNY 376,051,123.22 in 2018[19] - The net profit attributable to shareholders for 2019 was CNY 70,107,852.79, an increase of 11.21% from CNY 63,043,783.51 in 2018[19] - The company's total revenue for 2019 reached 477 million yuan, an increase from 376 million yuan in 2018, representing a growth of approximately 26.8%[31] - The net profit attributable to shareholders for the fourth quarter was 13.1 million yuan, while the total net profit for the year was 70.1 million yuan, showing a significant increase compared to previous years[24] - The company's non-recurring gains for 2019 amounted to approximately 16.1 million yuan, primarily from the disposal of non-current assets and government subsidies[26] - The company reported a total revenue of 1,000 million CNY for the year 2019, with a net profit margin of 0.96%[127] Cash Flow and Assets - The net cash flow from operating activities decreased by 53.35% to CNY 20,346,870.20, down from CNY 43,615,179.84 in the previous year[19] - The total assets at the end of 2019 were CNY 1,326,722,834.86, a 33.35% increase from CNY 994,922,976.81 at the end of 2018[20] - The total amount of cash and cash equivalents increased by 27,281,513.65, although this represented a 38.75% decrease compared to the previous year[57] - The company reported a significant increase in financing cash inflow by 218.05% to ¥359,396,226.41, attributed to the issuance of convertible bonds[57] - The company’s investment activities resulted in a net cash outflow of ¥190,645,563.23, a significant decrease of 1,521.99% from the previous year due to increased investments in financial products[58] Shareholder and Dividend Information - The company plans to distribute a cash dividend of CNY 0.38 per 10 shares to all shareholders[6] - The cash dividends distributed in 2019 accounted for 18.02% of the net profit attributable to ordinary shareholders[93] - The cash dividend for 2018 was 0.60 CNY per 10 shares, amounting to 12,468,480 CNY, with a total share count increase to 33,249,280 shares[89] - The cash dividend for 2017 was 0.80 CNY per 10 shares, totaling 9,779,200 CNY, increasing the total share count to 20,780,800 shares[90] - The company adheres to a stable and reasonable profit distribution policy, prioritizing cash dividends[88] Research and Development - The company has a total of 52 invention patents and 107 utility model patents, indicating a strong focus on innovation and technology development[34] - The company's R&D expenses increased by 26.85% to ¥16,733,585.64 in 2019, reflecting a focus on enhancing R&D capabilities[54] - The company is focusing on enhancing its research and development budget by 20% to foster innovation and maintain competitive advantage[106] - The company has successfully developed multiple new products, including a "Y-type direct connection jacket gas valve" and a "multi-turn pneumatic actuator" which have been applied in various domestic installations[170] Market Position and Strategy - The company has established a significant presence in the domestic control valve market, competing directly with high-end brands such as Fisher and Samson[33] - The company’s revenue growth is supported by the increasing demand for industrial automation and the ongoing upgrades in the petrochemical industry[30] - The company aims to enhance product quality and brand reputation while increasing market share in a competitive environment[81] - Future plans include expanding product lines and strengthening technical capabilities based on previous fundraising projects[80] - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[105] Corporate Governance and Compliance - The company is committed to enhancing transparency and establishing a modern corporate governance structure[80] - The company has established a commitment that no more than 25% of shares can be transferred annually by directors and senior management after the lock-up period[98] - The company has committed to ensuring that the prospectus for its initial public offering does not contain any false records, misleading statements, or significant omissions, and will bear legal responsibility for its authenticity, accuracy, and completeness[103] - The company’s governance practices align with the regulatory requirements set by the China Securities Regulatory Commission, ensuring no significant discrepancies[195] Employee and Management Information - The total number of employees in the company is 662, with 555 in the parent company and 107 in major subsidiaries[182] - The company conducted 72 training sessions in 2019, with a total of 3,000 participants, focusing on various employee education and training programs[185] - The company implemented a performance-oriented compensation policy, aligning salary growth with the company's operational performance and sustainability[184] - The company has maintained a stable management team with no significant changes in key positions during the reporting period[169] Risks and Challenges - The company has identified risks including macroeconomic fluctuations and customer concentration risks that may impact future performance[6] - The company faces risks related to macroeconomic fluctuations that could impact demand from key industries like petrochemicals and steel[81] - In 2019, the total sales amount from the top five customers reached ¥231,012,558.33, accounting for 48.47% of the annual total sales[51] Environmental and Social Responsibility - The company does not belong to the key pollutant discharge units as per the local environmental protection department, and has not faced any environmental penalties during the reporting period[137] - The company has established strict environmental management practices, adhering to national standards for air and water pollution[137] - Wuxi Smart Control Engineering actively engages in social responsibility, focusing on shareholder rights protection and employee welfare, including comprehensive training programs[133]

Financial Performance - Net profit attributable to shareholders rose by 132.26% to CNY 32,115,182.81 for the reporting period[8] - Operating revenue for the period reached CNY 144,186,449.29, reflecting a growth of 56.52% year-on-year[8] - The company reported a net profit of CNY 57,002,214.25 for the year-to-date, up 51.35% compared to the same period last year[8] - Total operating revenue for the current period reached ¥144,186,449.29, a significant increase from ¥92,118,685.11 in the previous period, representing a growth of approximately 56.5%[36] - Net profit for the current period was ¥32,115,182.81, compared to ¥13,827,119.52 in the previous period, reflecting an increase of approximately 132.5%[37] - The total profit for the current period was ¥37,523,262.70, up from ¥16,476,567.01, representing an increase of approximately 127.8%[37] - The net profit for the quarter reached ¥57,002,214.25, representing a 51.4% increase from ¥37,661,588.30 in the previous year[44] - The total profit for the quarter was ¥67,464,306.21, which is an increase of 49.9% from ¥45,018,430.61 year-on-year[44] Assets and Liabilities - Total assets increased by 25.85% to CNY 1,252,107,025.13 compared to the end of the previous year[8] - Total assets increased to CNY 1,256,022,940.87 as of September 30, 2019, compared to CNY 989,188,952.90 at the end of 2018, representing a growth of approximately 27%[32] - Non-current assets totaled CNY 344,262,602.21, up from CNY 294,058,838.81, indicating an increase of about 17%[32] - Current liabilities rose to CNY 349,374,294.70 from CNY 328,452,559.37, reflecting an increase of approximately 6%[33] - The total liabilities reached CNY 527,744,538.29, compared to CNY 355,968,300.87, showing an increase of approximately 48%[34] - The company's equity increased to CNY 728,278,402.58 from CNY 633,220,652.03, marking a growth of around 15%[34] Cash Flow - The net cash flow from operating activities increased by 73.18% to CNY 32,700,688.71[8] - The net cash flow from operating activities increased by 52.75% to ¥574.61 million, up from ¥376.18 million in the previous year[17] - The cash flow from operating activities was ¥332,177,217.62, compared to ¥256,040,611.87 in the previous period[51] - The net cash flow from operating activities for Q3 2019 was ¥5,746,108.20, an increase of 52.7% compared to ¥3,761,815.53 in Q3 2018[52] - Total cash inflow from operating activities was ¥336,460,773.14, up from ¥260,284,573.38 in the previous year, representing a growth of 29.2%[52] - The net cash flow from financing activities was ¥228,026,784.46, a turnaround from a negative cash flow of -¥10,633,740.43 in the previous year[53] Shareholder Information - The total number of shareholders at the end of the reporting period was 24,977[12] - The largest shareholder, Shen Jianbiao, holds 37.48% of the shares, with a total of 124,616,800 shares pledged[12] Expenses - Research and development expenses rose by 28.17% to ¥1,173.17 million, reflecting increased investment in personnel and equipment[16] - Sales expenses increased by 45.06% to ¥3,143.34 million, correlating with the growth in sales revenue[16] - Research and development expenses were ¥4,999,160.84, compared to ¥3,393,488.01 in the previous period, showing an increase of about 47.3%[40] - Research and development expenses were ¥11,731,740.79, up 28.1% from ¥9,153,316.01 year-on-year[42] Other Financial Metrics - Basic earnings per share increased by 134.15% to CNY 0.096[8] - The weighted average return on equity improved by 135.35% to 5.37%[8] - The company's short-term borrowings increased by 32.35% to ¥9,000 million, in line with the growth in sales volume[16] - The accounts receivable rose to ¥237,069.47 million, up from ¥200,663.30 million, reflecting improved sales performance[26] - The company's inventory decreased to CNY 195,200,233.48 from CNY 222,048,819.35, indicating a decline of about 12%[31]